Inventory consulting company Lotpop is teaming up with a used-car sourcing service, which the company says will provide dealers the replacement inventory they need while Lotpop’s LotStock inventory intelligence tool increases their sales volume and velocity.
The platform from used-car sourcing service Competitive Inventory Acquisitions, also known as CIA (not to be confused with the federal agency), uses a customized version of StockWave, combining it with a proprietary platform that analyzes Cross-Sell market data down to the trim level, according to a news release. Looking at every sale in a given market, the CIA platform spots trends and identifies opportunities that Lotpop says the dealership might otherwise miss.
CIA combines its proprietary algorithm with Lotpop LotStock inventory data. The data, extracted from vAuto, MAX Digital or another inventory-management software tool, identifies what Lotpop says is the most profitable and fastest-turning inventory in the dealer’s market. That delivers a consistent 85-percent win rate for cars sourced through CIA’s nationwide buying network, according to Lotpop.
“We isolate from data and market trends what makes, models, trim levels, years and mileage vehicles historically sell the fastest, based on 14- , 45- , and 60-day sell rates, for the most profit for dealers using our LotStock tool,” Lotpop founder and chief executive officer Jasen Rice said in a news release.
After Lotpop then provides the “hit” list to the CIA platform team, the team uses the metrics to source vehicles meeting those requirements from its base of more than 200,000 vehicles, Rice said. “LotStock powered by Lotpop drives the volume velocity, and CIA platform matches that specific inventory within minutes, and handles transportation and recon if desired by our customer.”
Rice, a former performance manager for vAuto, said in a news release that Lotpop “redefines how dealers must look at inventory,” and he added that Lotpop’s inventory analysis is actionable in addition to being more robust. The Lotpop analysis team conducts weekly calls with its clients, reviewing where Lotpop’s reports reveal gaps in dealers’ used-car inventory management and sourcing processes, Rice said. That guides them to consider “changes to drive peak performance,” Rice said.
Joe Machado, chief operating officer for the CIA platform, said that even smaller dealerships doing fewer than 100 used cars per rooftop can “compete against the big boys” and grow their market share by taking advantage of CIA’s nationwide buying network.
But getting the right inventory is only half the battle, Machado said.
“Dealers must implement and execute all of the velocity principles to win consistently, and that is where Lotpop comes in,” Machado said. “Lotpop’s consulting services ensure that our dealer partners are maximizing turn and profitability. The more cars they sell, the more we can buy; it’s a win-win." He added that CIA offers territory exclusives for its clients and will not work for direct competitors of the clients his company serves.
Dealerships purchasing fewer than 50 cars per rooftop can only access the CIA platform if they are an existing Lotpop client.