Your trade-in tool shouldn't dictate your pricing strategy. Our pricing formulas help you define how to automatically price any vehicle, based on the appraisal metrics you choose.
We believe dealers need to be able to control exactly how to price their trade-in offers. Surprisingly, almost every single trade-in tool out there forces the dealer to follow a single valuation metric. This may often not be reflective of the current market situation, let alone the current dealer strategy.
Since we started our company building an appraisal tool, we have access to all the major valuation metrics you need to define your pricing strategy.
But even when you can choose between all these valuation metrics, you probably want to customize them.
Maybe you think Auction Values are an interesting signal, but you think they are too high. You want to use that metric, but you need to adjust it in some way. That's how we came up with our pricing formulas. Defining your pricing strategy with AutoHub is deciding which values you want to use and how to adjust them.
Most dealers want to present an offer range on their website rather than an exact offer. We have two sets of formulas, one for the low offer “From”, and one for the high offer “Up To”; both independently calculated to create the range you want to present to your customers. We can also present an exact offer instead if needed.
Here is an example on how to configure a pricing formula:
In the above example, we are highlighting the “Up To” High offer formula. As you can see, the dealer chose that they wanted to take into consideration the vehicle's trade-in value, but pay $500 more than that. They also wanted to take into consideration the adjusted cost to market, representing how much the vehicle is currently retailing for in the local market, and take 83% of that. Then they took the average of those two values to create their “High Offer”offer price. The same would be done independently for the “Low Offer” Price.
The benefits of our pricing formulas is that it gives you a simple way to fully control how you want to use the key valuation metrics. Combining them by taking the average, lower of, or higher of, allows you to make sure that if one metric goes wrong for a specific vehicle, the other metrics would weigh in to compensate for it.
You now have full control to have full confidence in your trade values; nobody knows your market better than you do and you should be able to use this to buy cars at the prices that you want!
The pricing formula helps you put in place a robust pricing strategy for vehicles in general. But what if you have specific vehicles for which you want to pay more? Let's say you're a Toyota dealership and can't get enough 4WD 4Runners. Well, we came up with the High Interest Vehicle formulas, which allows you to target a specific group of vehicles, down to the trim level, and override your general pricing formulas with a targeted pricing formula. You can create as many “High Interest Vehicle” formulas as you like.
This is how you configure AutoHub to automatically offer up to $1000 above auction value for 4Runners SR5 and TRD Off-Road, only with 4WD, year 2016 to 2020 and less than 100000 miles. You also configure to present an offer range for which the low end of the range will be $3000 below the upper end. The possibilities are endless!