Before we jump into the data, it helps to understand how a service customer in a car dealership can sell their car directly to the dealer.
FRIKINtech pulls all the service repair orders to analyze those for accurate customer contact information, then checks to see if the vehicle they’re driving is desirable to the dealership. Lastly, that vehicle is compared to local market values to determine the customer’s equity position.
After all that analysis, roughly a quarter of all service repair orders have good customer contact information and are in a position to make a financial change to that car.
A text and email are sent to those customers informing them “the dealer wants to buy your car,” and they can choose whether to sell that car to the dealer or trade it.
Using this method, July acquisitions was approximately 120% over June 2022.
While new car inventory remains low due to a lack of chips, dealers must find consistent and reliable ways to purchase used cars for retail. Their service drive has thousands of loyal customers cycling through who prefer to buy their next car from the dealer they service with. As many of those customers are now working remotely, they do not have the needs they once did for the number of cars in their driveway. Some customers are willing to put some cash in their pocket instead of watching a car sit in their driveway undriven.
For the first time since bringing this automated equity mining lead generation tool to market, FRIKINtech saw used vehicle acquisitions out-pace traditional trades sourced out of the service drive.