On Demand Price Discovery

Every vehicle has a wholesale price that can be transacted upon.

This process involves a seller and a buyer arriving at a transaction price for a vehicle. This is called “Price Discovery”. It turns cash into a wholesale vehicle into cash and cash into a vehicle.

It is different than appraising or putting a valuation on a vehicle. A valuation is a comparison to similar assets in the market. Auto dealers turn to the guide books, and valuation tools, when they need help valuing a vehicle. It’s the # we arrive at when we look at market reports and go with our “gut”. These tools set our expectations for a future wholesale transaction based on past market data. 

The appraisal of a vehicle is the opinion on what the unit should bring in a robust market. Only inserting the vehicle into a wholesale market actualizes the valuation put on the vehicle. 

You currently "guess" first, then "know”. 

But what if “price discovery” for any wholesale vehicle was on demand, as easy as watching a movie on Netflix instead of going to Blockbuster. The wholesale automotive industry would move to the commoditization of the VIN. 

Take any VIN, enter its mileage and condition, and instantly know the market relevant wholesale price or it's spot commodity value. A price to turn a vehicle in cash or used to arbitrage the market to a higher price. The wholesale price discovery is known, on demand.

Would that change how you buy and sell wholesale vehicles? 

The first steps towards more efficient marketplaces and ultimately the commoditization of the VIN, has begun. This is Accu-Trade.

To be continued… 

Sean Liptay knows Trade-Ins.

Sean’s education started as part owner of TGNA, the largest independent auto auction in Atlantic Canada... which means, he sees 10,000 trade-ins a year! He received his Undergrad in the wholesale market with his start-up Selectbidder, a dealer-dealer trade-in marketplace. He is now studying for his Masters, "taught” by the world’s largest automotive wholesaler, and the founder of Accu-Trade, Robert Hollenshead.

Rest assured, Sean's thesis, "Commoditizing the VIN with Accu-Trade" will dramatically change the automotive industry as we know it today.