DALLAS — RedBumper, an inventory management company, announced the release of an entire suite of service drive and sales equity tools for dealers.
Called SmartDrive, the new tools are designed to allow dealers to identify customers coming through their service drive who are in a positive equity position. And by mining the dealership’s sales history data, SmartDrive can determine the approximate payoff for any service customer’s auto loan and compares the payoff amount to local auction prices. Customers in a positive equity position are identified and the sales managers are alerted.
" With a simple click, the manager gets every detail needed to evaluate the value of the vehicle, including information on the original salesperson,” said Bruce Thompson, CEO and founder of RedBumper. “Once a value is determined, the manager simply clicks and the system will find every new and used vehicle in their current inventory that they can sell to the customer today, for the exact same payment or less.”
RedBumper’s calculations use the customer's existing equity as a down payment and the manager selects the optimal replacement units to present based on profitability. The salesperson meets the customer in the service drive when he comes to pick up his vehicle, and is instructed to say the following: “We need your car and you can be driving a brand new one today, with no money down and the same payment you have today."
RedBumper allows both service writers and salespeople to download its apps for free. Based on credentials, users view only the information management wants them to see. However, by leveraging smartphone technology, instant alerts can notify all parties that the service customer has either dropped off his vehicle or arrived to pick it up. Through that integration, the information instantly flows into the used car manager's appraisal workflow each day, creating the process for capitalizing on service drive opportunities.
RedBumper also harvests leads from historical sales. Using algorithms similar to those used in the service drive, it determines which vehicles are in a positive equity position today.
“Now dealers can dramatically increase sales by simply using their own historical data in the right way,” Thompson said. “One North Carolina dealer sold 23 units out of his service drive alone last month, and he's just getting started. The real beauty is, not only can dealers sell new vehicles, but also acquire great pre-owned inventory in a tight market.."
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