Many Dealership Executives Still Rely On Gut Instinct Highlighting Need For Predictive Modeling Solutions
DETROIT, April 2, 2024 /PRNewswire/ — Lotlinx, the auto industry’s leading VIN-specific data company for dealership inventory management, announced today results from its Automotive Retail Industry Pulse Survey to better understand where automotive dealership professionals are facing challenges with managing vehicle inventory and to take the pulse on the use of artificial intelligence (AI) and machine learning (ML) to help mitigate inventory risk. Click here to see the full survey results infographic.
Lotlinx presented an online survey to more than 2,500 automotive dealer professionals during March. According to the survey results, only 12.6% of dealers said they are leveraging sophisticated analytical data to monitor days on the lot, combined with segment type, used or new, and other local inventory levels of similar vehicles. Approximately, 31% of respondents said they still rely only on gut instinct to manage their dealership’s vehicle inventory, and the majority (36.9%) said they continue to struggle with managing inventory for both new and used vehicles.
While 38.7% of respondents are currently leveraging the capabilities of AI/ML or predictive modelling data to manage inventory and adjust pricing levels, another 36% are not, which reveals the increasing need for industry solutions to predict market factors that drive VIN outcomes in real-time. Lotlinx’s SENTINEL VIN Risk Mitigation Platform (VMP), which the company recently launched, has already helped dealers not only forecast inventory risks and implement corrective actions at the VIN level to reduce the time vehicles spend on lots, but also helped them earn higher profit margins and enhance competitive market performance.
Additionally, the largest number of respondents (44.1%) said they don’t feel confident in the current results they are receiving from current investments when understanding their largest inventory marketing pain point, and this is another area where solutions, such as SENTINEL, come in to automatically allocate marketing resources to offset aging and markdowns, ultimately improving dealer performance and profits. As SENTINEL is powered by the company’s AI-assisted chatbot, Lexaca, to offer comprehensive, market and competitive data for every vehicle on a dealer’s lot, it’s important to recognize how this level of information can enhance the customer experience and increases the likelihood of closing a sale, while also allowing dealerships to establish a pricing strategy that aligns with customer expectations and loyalty.
“These results tell us that auto dealers can no longer rely on manual methods, industry experience, and overall ‘gut instinct’ to manage inventory and determine pricing,” said Jason Knight, CEO of Lotlinx. “By leveraging the power of AI through predictive analytics, auto dealers can anticipate demand fluctuations, enabling them to adjust inventory levels proactively, and we are committed to ensuring that dealerships are well-positioned to capitalize on industry shifts and emerging trends.”
Click here to see the full infographic and for more information on how Lotlinx’s SENTINEL platform is helping dealers mitigate inventory risk, please visit www.lotlinx.com/sentinel/.
About Lotlinx
Founded in 2012 and based out in Peterborough, New Hampshire, Lotlinx is the automotive industry leader in VIN-specific data solutions for inventory management. The Lotlinx platform provides automobile dealers and manufacturers with enhanced operational control over their retail business. Leveraging state-of-the-art real-time data and machine learning technology, Lotlinx provides a precision retailing solution that enables dealers to automatically adapt to market dynamics, mitigating inventory risk through VIN-specific strategies. To learn more about Lotlinx, please visit www.lotlinx.com.