Carfax One-Owner Units Yield Double-Digit Profit Boosts for Dealers

[Jeff Kershner]

Found this Press Release and thought I would share. Some of this I believe was a pitch for DealerTrack. You never know which one they are talking about when they say "DealerTrack's inventory management solution" (AAX or Inventory Pro).


Anyone truly marketing 1 Owner CarFax while also including it into their used car sales process? Any results?


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LAKE SUCCESS, N.Y. — DealerTrack revealed study results Monday that indicated a significant jump in average gross profits when dealers marketed one-owner units with Carfax Vehicle History Reports.

The study indicated that dealers earned 23 percent more average gross profit with Carfax one-owner vehicles as opposed to units that had two or more owners. Furthermore, the Carfax one-owner units turned quicker, an average of 26 days. The study indicated that other used vehicles had a 31-day turn average.

Data for this study came from used vehicle transaction information from last year for a national dealer group that utilizes DealerTrack's inventory management solution. The data included 49,897 retail or lease transactions involving Carfax one-owner vehicles, and 122,970 transactions involving units with two or more previous owners.

"This DealerTrack study proves the value of Carfax data for used car dealers looking to make more money and sell cars faster," explained Larry Gamache, communications director at Carfax.

"Dealers can run a Carfax report at auction or trade-in to identify one-owner cars early and cherry pick their inventory," Gamache continued.

"In today's economy, used car shoppers are looking for great values like these," he added.

Tim Zierden, general manager, inventory at DealerTrack, also emphasized how the integration of DealerTrack's solution with Carfax's reports can be beneficial to a dealer's sales objectives.

"While this study highlights the impact of a single vehicle attribute, it strongly suggests that dealers can realize even greater benefits from applying analytical tools to manage their inventory more systematically," Zierden pointed out.

"Using a robust inventory management solution driven by transaction-based data can help dealers stock the right vehicles, turn them faster and focus on profitability," he went on to say.

"Unlike market pricing utilities that focus on price alone, our data-rich inventory solutions help dealers uncover factors that drive higher profits, the most important consideration in the current economic environment," Zierden concluded.

 

[mattwatson81]

We highlight CARFAX one owner vehicles in several places in our software. I would love to hear from some dealers how customers really react to it. Those stats seem realistic.

 

[joe.pistell]

Dear CarFax marketing dept.


I can't stand the logo. You have to "read" it to get it. The 1owner text gets lost in the sea of cubes. Suggestion, create new art with this hierarchy:

• Feature the number 1 first,
• "owner" 2nd.
• Use the carfax cubes as the validator.

The number 1 is an icon all by itself and needs to command the art. It denotes all kinds of positive messages including: top rankings, victory, best of class, 1st place, etc...

Design Example:
Large iconic gold 1 with an flowing award ribbon thru the mid section with "1 owner" on it. Have that stand on the CarFax Cubes. The message intuitively flows, and the CarFax message becomes the foundation & validates the message.

Produce the art, run a A/B pilot and watch the pop in results.

p.s. Please send a check payable to my favorite charity:thumbup:: Give To Others - Central New York - Bringing together those in need with those that wish to give