Making informed buying decisions Admin In the Media (0) Buying vehicles to stock the dealership is a process that is paramount to the success of the business.Purchasing the right stock, at the right price, is a significant role. However, it is one that can be time-consuming and in some cases very difficult. Getting a constant supply of local stock is always challenging, but the opportunities to purchase what you get offered are way more convenient than having to place hundreds, or even thousands, of bids in the Japanese auction environment.Regardless of where you purchase your stock, it is essential to understand the best- and worst-performing vehicles for your business. Time under your belt buying vehicles, alongside gut instinct and intuition, certainly have merit, but this experience needs to be combined with some factual data. This is the only way to assess how vehicles really perform and can be all that is required to make those extra dollars and save you from costly losses.Whether it’s reconditioning expenses, finance penetration, after-sales repairs, average number of days in stock, or the good old gross profit, they are all relevant indicators of how certain vehicles historically perform for your business. Therefore, at the very least, you need accessibility to reporting that is easy to interpret and can aid you in making your purchasing decisions.If you have some form of Dealer Management System, then this data should be available to you, but it may take some sifting through to get the precise spread of information you require. I would suggest asking your DMS provider how to access this info, so you can at least begin to start learning if the data supports what your intuition is telling you about which vehicles to buy.These key performance indicators, or factors of historical vehicle performance, play an even bigger role for your business, due to the sheer number of vehicles that need to be viewed and bid on when purchasing stock from Japan. Success rates are traditionally very low on average, as bids are placed across high numbers of vehicles.However, those who have sound practices of reviewing statistical vehicle data from their business do have higher success rates at auction. This is because they have combined gut instinct and expertise, along with what the data is telling them. Therefore the decision is more informed, not only on what vehicles to bid on, but also at what level.An informed decision driving a slightly higher bid is likely to be the difference between owning the vehicle and not. An informed decision can also ensure you don’t pay too much for the vehicle, or better yet, don’t purchase it at all because it has performed worse than you may have expected.Ideally having access to vehicle information whenever you need it is the key to aiding these decisions.The task of purchasing vehicles from Japan would be significantly enhanced if every vehicle at auction had all the relevant data attached to it – particularly how it has historically performed over recent months. The ability to also share that data with your supplier, at your discretion, may also lead to them providing you with better matches for your business.Tools like these need to be made available to dealerships to ensure data is leveraged to improve business performance. Better yet would be the ability for these tools to automatically rank vehicles for you based on a set of key performance indicators, which you can control. That way you don’t have to look at thousands of vehicles; you would just be presented with the best performing ones for your business.It’s these type of purchasing tools that Motorcentral will be making available to our dealer network.We feel strongly about improving the profitability of dealerships, while also creating efficiencies through mobile functionality and giving those tasked with buying stock for the yard the best tools to make the most informed buying decisions.Regardless of whether you are a Motorcentral user or not, we still encourage a sound practice of understanding your dealership’s data to make the best decisions for your business.