Businesses from every industry area are starting to evolve with AI – and the automotive industry is no exception. In fact, top dealers across the nation have begun welcoming AI to their dealerships with open arms.
Dealerships are using artificial intelligence to digest and gain insights from data to solve frequent problems that arise on a day-to-day basis. One of these frequent problems is high days on lot.
A 2017 study found that approximately 51% of VINs have been on lot for 60+ days, 39% of VINs have been on lot for 90+ days, and 25% of VINs have been on lot for 150+ days.
And as all dealers know, high days on lot = high holding costs.
A dealership will spend $1,740 in holding costs for every vehicle that’s been on lot for 60+ days, $2,610 in holding costs for every vehicle on lot for 90+ days, and $4,350 in holding costs for every vehicle on lot for 150+ days.
That’s a lot of money, right? But that’s where AI comes in.
AI is capable of taking the guesswork out of inventory analysis, so dealers can sell used/CPO inventory faster, based on days on lot. Dealerships are utilizing AI-driven platforms that pair real-time data with on-lot budget insights, so dealers can use that information to create a lucrative digital strategy.
Real-time data paired with AI allows dealers to discover stubborn VINs that are aging on their lot. By identifying these VINs, dealers are able to confidently put marketing efforts behind them, and ensure they move in time to make a profit.
By understanding AI and its capabilities, dealerships can be transformed from every angle starting with inventory analysis to the customer experience.
Schedule a demo or call us at 1-800-625-5469 so our experts can put the power of the industry’s #1 Automotive AI to work for your dealership today.