vAuto is launching a new tool for dealers, Test Drive, to meet demand in the constrained inventory market by identifying common issues on vehicles and incorporating vehicle history into the appraisal process.
Driving the news: Used vehicle sales are the majority of the market, with many customers looking for affordable options.
Experian’s State of the Automotive Finance Market for Q2 showed used vehicle finance was 58.8% of the market, and Cox Automotive’s mid-year forecast suggests used vehicles will end the year around 38.4 million.
The August vAuto report showed used inventory at 2.15 million, or 46 days’ supply, which is slightly higher than 2025 and the same as 2024.
Why this matters: With added demand for sourcing vehicles, the vAuto Test Drive should help dealers make more confident decisions when acquiring inventory.
The software utilizes AI to aggregate information from forums and groups about known issues with specific vehicles and puts it in the dealers’ appraisal tool.
The Test Drive also pulls vehicle service history from Xtime and Cox Automotive data from Manheim and Autotrader into the workflow.
Testing ground: According to vAuto, 700 dealers were part of beta testing earlier this year, and the company is continuing to seek feedback from dealers utilizing it.
As it stands, it’s available to vAuto clients with Provision or ProfitTime GPS to preview and provide feedback before the widespread release.
In testing, the company shared with CDG that 68% of vAuto Test Drive users said they were likely or very likely to use Test Drive again, while another 63% said it was easy or very easy to use.
No data was available on the impact on recon costs or sales.
What they’re saying: “Dealers were instrumental in helping us develop and prioritize these enhancements to support a more informed assessment of a vehicle's condition for decision-making,” said Felipe Arias, vAuto Vice President, in a press release. “In the end, Test Drive helps our dealers and vAuto collaborate faster, innovate more effectively, and deliver solutions that address real-world dealership challenges."
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Bottom line: Dealers need efficient and reliable tools that help evaluate used vehicles and guide purchasing decisions. More importantly, though, this is an opportunity for dealers to provide feedback on a potential tool.
“The best technology partners innovate relentlessly and let dealers adopt on their own terms," said Derek Hansen, Cox Automotive Senior Vice President of Dealer, Lender, and Inventory Management Solutions, in a press release. "With Test Drive, we're creating a more direct connection between our product teams and the dealers who use our solutions every day. This gives dealers an opportunity to shape new capabilities early, helping ensure they solve real dealership challenges, fit the way dealers work, and deliver value faster.”
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