In 2019, an estimated 40.4 million used cars were sold, according to Edmunds.com, a number that most likely broke the previous year’s record. And while a typical driver may be content driving off the lot in their recently-purchased used car, they probably don’t realize there’s a vast and complex market where used car dealers are stocking their lots with inventory from several sites across the country.
“Most dealers operate on a bit of art and science, being able to really know their market, know their customers, know what’s right for their lot,” said Tom Esposito, a Group Product Manager at KAR Global, which oversees several automotive marketplaces. “But ultimately, that is far too much information for a lot of these dealers to stay up to date on.”
The problem: With a nearly endless amount of data — constantly-evolving market projections and consumer demand, to name a few — it’s hard to parse what used car dealers should pay attention to and what they shouldn’t.
Esposito says KAR’s Recommendations engine is a solution to the mountains of available data.
“Our customers are essentially a mix of entrepreneurs and commodity traders, so they’re pretty savvy already,” Esposito added. “What we’re trying to do with Recommendations is come in and solve the problem of how much effort they’ve been putting in.”
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