Leading Auto Services Company Teams With Softensity to Optimize Off-Lease Pricing for Dealers
Overview
An industry leader in the automotive services space wanted to optimize pricing for grounded vehicles. The company was looking for a way to help dealers maximize resale revenue for off-lease vehicles by improving the outdated manual pricing process. The company teamed with Softensity to harness the power of data science and create a sophisticated platform that analyzes numerous real-time data points to help dealers optimize pricing.
Challenge
Relying on personal expertise to price grounded vehicles, and determine what to do with them — sell on the lot or send to auction — is inefficient and imprecise. The global chip shortage and resulting inventory crunch has made these decisions even more crucial for dealers that are opting to sell more off-lease cars on their lots than ever before.
The auto services company knew that data science was the key to optimize pricing and maximize revenue. Due to the complexity and volume of data involved, a collaboration with experts in the field would be necessary to manage the project efficiently.
The Solution
The auto services company tapped Softensity for help building a highly sophisticated platform that runs on complex algorithms and machine learning. Softensity provided a number of teams to work on the project, including scrum masters, development teams, software architects, senior developers, automation QA, manual QA and beyond across a wide spectrum of technologies. Softensity’s teams of experts collaborated closely with the company’s internal IT team, and also worked autonomously, depending on the company’s specific needs at various stages of the project.
The resulting platform uses multiple resources and numerous data points to help a dealer decide what to do with a grounded car, and determines both the best sale price as well as the best location for the sale. The system analyzes real-time data on a national level, while also identifying regional trends, all of which factor into better decision making. Various sets of data can be layered into the platform to help sellers maximize resale revenue, down to details like the local weather.
The Results
Data from numerous studies shows that using the data-driven system to price grounded vehicles rather than an individual expert is much more efficient, and significantly increases resale revenue. Beyond pricing optimization, the system also manages both pre- and post-lease condition and history reports along with inspections, auction processing, delivery, and a comprehensive list of reports. The platform offers portals for both dealership buyers and brand sellers.
Initiated more than three years ago, Softensity’s ongoing engagement with the auto services company has grown into a long-term partnership. Over the years, the collaboration has continued through various versions and iterations of the platform, and expanded to encompass additional projects ranging from logistics and auto transportation apps to wholesale buyer and seller platforms.