Accurate and Consistent Condition Reports Maximize Revenue, Speed Transactions and Enhance ROI
To meet growing client demand for accurate and consistent condition reports, Manheim announced plans to expand its inspection services. This year, Manheim, in partnership with Alliance Inspection Management (AiM), will enhance capabilities to handle larger volumes at auction sites and expand on-lot services at dealerships in major population centers across the country.
“Our condition reports help clients gain a better understanding of their vehicles’ market value, which, in turn, enable them to manage their inventory as profitably as possible,” said Shane O’Dell, Senior Vice President, Manheim Vehicle Solutions.
Today more dealers than ever before rely on condition reports to facilitate the sales process and make buying decisions, regardless of transaction type. Last year Manheim conducted 3.5 million vehicle inspections and the company expects that number to increase to more than 4.2 million this year.
Over the last two years, there has been unprecedented volume increase in condition reports, averaging around 20 percent year-over-year growth. Dealer adoption is driving the “take rate,” as more than 70 percent of large dealers and 46 percent of small to mid-sized dealers now use real-time data about a vehicle’s current condition to make better decisions and make it easier to conduct business. Another driver of condition report volume is the growing need for mobile inspections, as buyers and sellers evolve their strategies to add more digital environments to their sourcing and sales networks.
In March 2015, Manheim and AiM formed a strategic alliance, collaborating on best practices and standardizing new inspection technologies across live and online auctions to create greater consistency in the inspection process. Since then, the companies also have doubled the staff dedicated to this initiative and enhanced team members’ training.
The result of these investments is that today consistent and accurate condition reports are prepared with reduced human error and subjectivity, as well as greater speed, regardless of location. The data is translated into a grade that is posted on Manheim’s OVE.com site.
Complete condition information builds dealer confidence in transactions, which can stimulate sales and drive optimal prices. For example, used vehicles with condition reports are about four times more likely to sell than cars without such information. Also online and in-lane buyers often look first at listings with condition reports to identify vehicles they want to target in an upcoming sale. Further, inspection results cut down on arbitration. In fact, Manheim’s and AiM’s arbitration rate for cars with condition reports is less than one percent.
“In addition to delivering a snapshot of a used vehicle’s condition and value, we provide clients with another essential item — peace of mind,” added O’Dell.
