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Take Your Used Car Margins to the Next Level

With used car prices climbing there are now very good financial rewards to be made. For some groups, after more than a year of disruption and hardship, simply obtaining this reward on the principle that a rising tide floats all boats will be enough.

The top 25% of groups, those who insist on consistently outperforming the market, will set themselves a different challenge. They will adapt rapidly to maximise returns during this upturn in the market, just as they react quickly to minimise loss during a negative event.

RWA’s PriceSmart tool, which layers over data provided by Autotrader Accelerator, is giving groups that use it a huge advantage, generating an additional £200-£300 per car in margin on average and increasing margin without increasing days to sell.

We are transforming the role of sales manager when it comes to pricing – moving pricing from a repetitive and detail intense “overwatch” exercise, to one where strategy and decision making become the driving force, where an intelligent analytics programme will highlight only the work that does need doing and provide continual feedback on performance to allow policies to be continually monitored and improved.

Find out more about used car dealership profitability.

How does RWA PriceSmart work?

RWA PriceSmart allows groups to build and apply dynamic pricing policies. With RWA PriceSmart installed groups can execute flawlessly – managing by exemptions rather than constantly reviewing all data:

  • A dynamic pricing policy is one where poorly rated cars are sold at market price and higher rated cars are priced at a premium to reflect the desirability and the dealers own brand’s worth.
  • With prices constantly fluctuating, automated reporting notifies sales managers every morning with a shortlist of which cars are need repricing, as well as flagging discrepancies in marketing.
  • Head Office is able to monitor performance, implementation and make rapid judgement on any alterations to policy in order to keep margin at optimum levels.

Results that you can expect

  • With RWA, dealerships can typically 2-5% above the market on a systematic basis.
  • There is no increase in overall days to sell.
  • Your will also benefit from an early warning of falling valuations /retail ratings. Essential in order to reposition yourself to avoid inventory losses if and when the market does change

If you are interested in finding out if your “good” is as good as it can be, please contact us for a free PriceSmart review with your own data.

Sample of Sales Manager view

Used car margins

Used car dealer margins

Sample of Head Office View

Used car dealer profit margin

About Real World Analytics

Real World Analytics provides a cloud-based Business Intelligence (BI) solution that helps you become a complete data-driven dealer group. By bringing all your data into one place and delivering actionable insights to different levels in the business, everyone has the right information at the right time to do their job efficiently. The management will be presented with executive dashboards where they can drill down to the details for further investigation. Your managers in the outlets get reports such as DOCs delivered to them automatically so that they can action issues on the spot. The solution is designed to help you stay on top of your business with all the information you need at your fingertips.

To find out more, visit our Automotive BI Solution page or email us at