IARA’s Certified Automotive Remarketer Program: CAR-17
UNIT: Post-sale Activities
COURSE: CAR-17 Factors that Influence Vehicle Resale Values
The goal of this course is to provide the information required for the participant to effectively assess the impact, both positive and negative, of the following factors that influence vehicle values:
• Marketplace conditions.
• Engine size.
• Trim level and options.
The ability to effectively evaluate these factors requires a honing of critical analytical skills to establish effective vehicle valuations. The influence of these factors varies on a vehicle year, make, and model-specific basis. A holistic approach provides the tools necessary not only to perform the required assessment, but also to strategically manage remarketed portfolios.
The participant will use case study, accompanied by metrics, to establish sensitivity to the influence of valuation variables and to marketplace exigencies from a bidder/buyer perspective.
The course defines a scientific approach to the market-centric-driven valuation process. As a professional remarketing manager, the participant will develop the proclivity and proficiency to understand and quantitatively ascribe vehicle-specific true market value that will ultimately result in effective portfolio performance.
At the completion of this module, participants will be able to:
• Explain a process, based on benchmark data, to assess vehicle values, moving the process from one of subjectivity to scientific analysis.
• Describe and effectively quantify the dollar impact of damage, both mechanical and physical/cosmetic, enabling the participant to develop the proficiency to effectively determine market value of a given vehicle.
• Describe the positive impact on valuation for vehicles for which selected colors and options, specific engines, low mileage, and/or “retail-ready” condition create incremental bidder/buyer demand, thus generating sale prices above average benchmark values.
• Describe the negative impact on valuation for vehicles for which selected colors, lack of specific options, specific engines, high mileage, and/or mechanical and physical/cosmetic condition detract from bidder/buyer demand, thus generating sale prices below average benchmark values.
• Explain how to establish vehicle-specific reserve/floor prices reflecting market-driven sale values to enhance the number of vehicles sold as a percentage of the quantity consigned for sale, accompanied by sale prices reflecting true market value.
• Explain the validity of the vehicle condition report to ensure it reflects the vehicle’s true condition and to quantify and document the specific dollar impact of mechanical and physical/cosmetic damage described on that report.
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