D A V I D B L A N D F O R D : : 8 . 2 3 . 2 0 1 5

Q1.

Leveraging Real-Time Vin Specific Trade-in Data in conjunction with Manheim Market Report (MMR)

E :: davidblandford@icloud.com C :: 678-772-4777 (text is better) game changing pricing analytics

WHAT IF YOU COULD SHOW A TRADE-IN VALUE…IN LIGHT OF DIMINISHED VALUE…

BASED UPON THEIR CARFAX OR AUTOCHECK?

Q2. WHAT IF THOSE VALUES WERE TIED TO REAL-TIME MMR SALES

Mad Men’s - Don Draper, said it best… If you don’t like what’s being said…change the conversation

so, we changed the conversation

DE-VALUE THEIR TRADE …USING THEIR DATA

On average – car dealership front-end margin compression…will continue to increase (not good) New car shoppers will continue to demand transparency and leverage Edmunds Price Promise, TrueCar / some TMV simile there of…this price battle isn’t going to get any easier Why not fight the gross-profit battle on another playing field?

The rocket fuel pushing used car values is Manheim / MMR - local & national markets alike…i.e. – actual real-time sales results…what cars actually sell for….good, bad, or indifferent Yet - car shoppers want to give nothing for a new car – and then ask the world for their old car. The story never changes They also leverage all these dubious car buying guides that…don’t buy cars. Again, same story There’s no shortage of brain damage in the car business

The interesting part is that…even when people use the word – average to describe a used car value…what does that mean? Used cars are like people…no two are the same. The more baggage an average person / car has – the worse it is Ex. If a buyer has his or her choice to buy a used car – same year, make, model, miles, etc – and 1 of them has had an accident and the other one hasn’t…which one is more desirable? This is not a trick question, this is not…Rocket Science

Diminished Value impacts Fair Market Value….that’s why customers ask for a CARFAX Report…it doesn’t matter if the damage was corrected…there’s always gonna be diminished value Diminished Value (DV)…impacts trade-in values – how can it not? CarFax & AutoCheck share accident details because inquiring minds – want to know. Again, they want transparency Ok – different side, of the same coin Sellers hate discussing a dirty CarFax….there’s a stigma attached to it and them…or should we say – their car

So, you have to pay down as in…not up - for a vin with a diminished value report. That’s fair. It won’t bring all the value – because of that bad CarFax /AutoCheck…and even it it only has one accident showing…it’s not the same as a car with no accidents. Again – if you have the choice…which one would you buy? This is a no-brainer So – how do you de-value a trade…the silent walk-around? Touching the bruised metal ever so gingerly…and talking to yourself as the seller watches with intrigue and perhaps, confusion?

What may be code to some…is confusion for others (the seller of the trade…is confused by this whole process) You can’t measure most of a trade evaluation…touching the car doesn’t count And - You can’t manage…what you can’t measure

There are literally 10M car accidents in the US every year, with some 2 million people actually being injured, but what do you do with all that accident information? How do you measure it in terms of your deal’s value? More importantly – measure it against a real benchmark like MMR? As in actual sales…with real geographical & mileage variations?

You’d need an real-time algorithm pinging MMR results…anytime of the day or night. Then – you’d need to be able to generate a 1 page report showing…not telling the following: (Objective 3rd Party Testimony) 1. Seller’s Name (the dealership’s client / buyer) – this is personal 2. A date & time stamp to the second…of when that fair market value & diminished value number was actually generated 3. The year, make, model, & miles of the trade-in 4. The specific vin# of the trade-in…not to be confused with some other car out there (average or otherwise) 5. The vehicle’s pre-accident value (Fair Market Value / FMV) 6. The Real-Time Post Accident Dimensioned Value

THIS REAL-TIME ON THE SPOT REPORT…IS GIVEN WITH A PENCIL…IF SOMEONE WANTS TO KNOW WHY YOU CAN’T GIVE THEM MORE FOR THEIR TRADE

Remember :: Diminished Value has nothing to do with repairs Diminished Value has nothing to do with reconditioning Diminished Value has to do with stigma…and choices Diminished Value is common sense in light of a dirty Carfax & Auto Check

If you can buy trades better / cheaper…based on actual MMR data…more gross naturally follows…in more ways than one because it impacts days in inventory

What if this was FREE to try…and the price afterwards was next to nothing ? Q3.

What’s the point of a product launch like this?

David Blandford ::

E :: davidblandford@icloud.com C :: 678-772-4777 (text is better)

The national average of all franchise dealerships / desked deals… yield only a 50% close rate… so 50% or more, depending on the store, walk away (half the people who sat down to hear numbers – walk away = lose/lose)

sidebar ::

trade values & explanations are partly due to forfeited sales…it doesn’t have to be that way ::