What is Market-Based Pricing?
Market-Based Pricing is when a dealership prices their pre-owned inventory after doing research of every used vehicle in their market.
How Does a Dealer do This Research?
Dealers who subscribe to Market-Based Pricing use software developed specifically for their industry. This software is similar to platforms that have existed in financial markets but are now applied to the car industry. These software tools shows a dealer where their inventory ranks on popular sites such as AutoTrader.com and Cars.com when searched and gives them the information they need to immediately adjust their prices and drive these potential customers to their lot.
This straightforward Web-based interface allows dealers to compare every car in their inventory against identically equipped vehicles in their market. With this comprehensive view of direct competition, dealers can easily lower a used vehicle price to achieve a better ranking. These rankings can be displayed by price or by incorporating vehicle mileage into the ranking to assess a vehicle's value the way a consumer would.
The system also generates electronic alerts that reflect when market changes threaten their competitive position.
Why Use Market-Based Pricing?
We believe that today's used car buyers search the Internet to find the best value on the vehicle they want. Each search returns dozens, if not hundreds, of similar vehicles in their area to consider. Customers shorten this to a manageable list by ranking vehicles with the best price and mileage at the top. Because of this we believe that Market-Based Pricing aligns our cars best with what the consumer is looking for.