One of the most prominent dealership management tools invented in the last ten years is undoubtedly Vauto. Why is that? Because if it has been appropriately used, it does deliver tangible results. During my tenure in the car business, I have heard mixed comments for this highly dynamic and useful tool. I have met automotive professionals who love the product, and some of them despise it. I am going to be talking about my first-hand experience with the product and what I love about and why every dealership should have this tool.
Let’s talk about Vauto. Vauto was founded in 2005 by a Dale Pollak and determined to provide dealers with a new way to manage their used vehicle inventory in a new era of the automotive industry. Not only Dale Pollak started Vauto he also came up with the velocity principle. In a nutshell, Velocity principle is to sell the maximum amount of used cars in the fastest possible way with maximum profit. For example rather than turning your inventory six times a year at $2500/unit profit, you work towards turning your inventory 12+ times/year maybe at a slightly lower profit, but overall dealership makes more money due to volume and service reconditioning.
First, Vauto provides the state of art reports about your dealership’s financial health, which saves much time for an average user. One of my favorite reports is called ”Investment Summary”
There are lots of information on this screen but here are my favorites;
Total Investment directly captured from DMS total cost.
Avg Days in Inventory
You can have all this information compiled in one easy screen click of a button, isn’t it great? Let’s talk about my second favorite reporting tool in Vauto.
As seen the in the screenshot above Vauto provides us with all the necessary information for online merchandising such as VDP, SRP and Clickthrough ratios. Why do we need them? We need them to see how much exposure our cars get online and how many people are interested in our cars. If people are clicking on our vehicles that means people are interested in them. Don’t forget; it is not only the price.
Amount of information given to the inventory manager is so vast even someone with no car sales management experience can price up cars with the help of Vauto. It tells you the average market price, market day supply, and average odometer. Based on the example above you can price this vehicle $2000 more than average due to low mileage. With a little training, anyone can become a pro at used vehicle inventory management. We need to remember, at the end of the day Vauto is just a program which assists us to save time and make educated decisions. You can’t 100% rely on the Vauto because it can’t factor in the vehicle history report such as Carfax Canada, body condition and service records.
Vauto is an excellent tool for any automotive inventory manager, it makes life easy and acts as an assistant which gathers all the information you need. It does all the legwork for you and brings the information for you to make adjustments. This was only the tip of the iceberg, and there are a lot more comprehensive tools hidden inside Vauto. If you are interested in learning more feel free to reach us today and we can show you why Vauto is the best tool for any franchised car dealerships.
Don’t forget to watch our video about how to sell more used cars faster today
Vauto has also launched a new metric called Profit Time in the US. Unfortunately, we haven’t received the tool here Canada yet, thus I can’t comment on it. It looks like it is going to change the velocity principle slightly. My understanding from the promotional video is; Not every used car is equally created thus velocity doesn’t apply to them the same way. Some vehicles you need to sit on it longer to capture the profit in it. That means you don’t need to give away a car because you want to turn your inventory faster. My gut feeling tells me Profit Time will help you identify those cars which profit can be made even though it takes longer to sell them. I hope one day we will get the tool here in Canada so I can test it.