How Data, AI, and Technology are Powering the Modern Dealership
3 mins
The automotive industry is rapidly evolving, with Artificial Intelligence (AI), machine learning and data analytics leading the charge. Savvy dealers are already leveraging these technologies to make smarter decisions about vehicle valuation, inventory and their overall wholesale vehicle operations.
In this data-driven era, embracing AI-driven tools or leveraging the power of data isn’t just an option—it’s essential for dealerships that want to thrive. That’s why at OPENLANE, we’re driven to build innovations that empower the success of our dealers.
Let’s explore how these technologies are disrupting the way dealerships do business, and how OPENLANE can help you stay ahead of the curve.
Real-Time Valuation
Gone are the days when determining the value of a car was a mix of intuition and spreadsheets. Today’s market demands more precise and adaptive valuation strategies. Dynamic strategies like real-time valuation rely on the analysis of large data sets on market trends, historical sales data and vehicle-specific metrics like condition or features. It’s a labor-intensive task made possible by AI, as well as related subsets like machine learning and predictive analytics.
Determining a vehicle’s value empowers dealerships to set optimal prices that maximize profitability without alienating customers. According to a McKinsey study, AI-powered pricing optimization can lead to a significant increase in gross margins, by as much as 10%.1
With this kind of data-driven confidence, dealers can determine how to value a vehicle correctly, all without having to rely on a gut feeling.
Navigating inventory decisions
Managing inventory has always been a delicate balancing act for dealerships. Having too many cars sitting on your lot ties up cash and comes with added holding costs, while having too few in-demand models can lead to missed sales opportunities.
With so much riding on buying decisions, dealers need to know they’re selecting the right used vehicles for customers. That’s where OPENLANE’s Visual Boost AI™ and Code Boost IQ comes into play.
Visual Boost AI helps dealers get a second set of eyes on the exterior vehicles, highlighting visual damage, while Code Boost IQ looks under the hood and sifts through the detected On-Board Diagnostic (OBD2) codes to help dealers focus on what matters most to their bidding and purchase decision.
When combined with OPENLANE’s experienced inspections, both Visual Boost AI and Code Boost IQ can provide the additional clarity needed to give dealers the confidence they’re choosing the right vehicles at the right time.
Automating the Selling Process
Automation has always played a part in the automotive industry; think of Henry Ford’s assembly line, and how he used process improvements and advanced machinery to reduce the time spent on repetitive tasks. Of course, our digital automations have come a long way from the Model T, but the core principle of efficiency is still the same.
Digital automations can streamline a number of repetitive dealership processes, freeing up valuable time for your sales team to focus on what they do best—building relationships and closing deals. The same can be said for lead qualification and conversion; automating these steps can ensure that the most promising prospects receive timely and personalized attention.
The wholesale auction process is also being improved by automations. OPENLANE’s Automated Absolute Sale feature simplifies the selling process, allowing dealers to effortlessly set a price and let the system handle the rest, optimizing sales outcomes and freeing up valuable time by allowing a seller to notify a buyer of their intent to sell a vehicle by the end of the day.
The Bottom Line
The future of auto sales is here, and it’s powered by data-driven technologies and artificial intelligence. Dealerships that embrace these innovative technologies are not just keeping up with the times; they’re getting a competitive edge by making smarter, more informed decisions across all aspects of their business.
At OPENLANE, our innovations are based around one core idea — making wholesale easy. From vehicle valuations to inventory management and operational efficiency, we’ve got the solutions your dealership needs today to stay ahead of tomorrow.
Ready to say hello to the future? Click here to get started with OPENLANE!