Cap HPI has launched a free new tool for dealerships that will help them more accurately price optional extras on used vehicles.
The vehicle valuations specialist has been working on the research and data necessary to underpin the new Option Values tool for the last 12 months.
It means dealers and used car departments will be able to value the factory fitted spec of the vehicle, rather than just the base specification.
Derren Martin, Cap HPI director of valuations, told AM: “Previously if a vehicle came with a panoramic roof as an option, no guide value would reflect that.
“Our values will still show the base vehicle, but now dealers can add in the optional extras to get a more accurate understanding of how much those should be worth on the used market.”
There’s a finite limit to how much optional extras will add to the price of a used vehicle and there are other factors too, like the age of the vehicle.
However, the idea is that dealers can get an even more accurate price reflection for stock they are buying, taking in as part exchanges and then retailing.
Cap HPI is rolling out its optional values data in two phases. The first has just launched and allows dealerships to manually select the optional extras that are on vehicle stock to get a better idea of the worth of those options.
The second phase will be part of Cap HPI’s Spec Check product, where dealers can input a vehicle registration number and then all the factory fit options will be valued automatically.
Martin said: “Certain dealers will already be factoring in the price of options anyway, but this new tool is going to help provide more guidance.”
The future of options
Kia recently announced that its EV9 customers will be able to add optional software, safety and lifestyle features to its vehicles with “over-the-air” updates.
The Software Defined Vehicle (SDV) technology can add features like Level 3 autonomous driving functionality through Highway Driving Pilot and there will be further “on-demand” services that customers can choose to purchase through the Kia Connect Store.
Martin said the increasingly technologically advanced options market in the latest new vehicles will add further complexity to accurate used car pricing in the future.
He added: “Do the licences expire for the software updates if there are subscriptions involved? Do these optional extras transfer between owners?
“If you can’t physically see an option, that might be difficult to value if it’s going through an auction.
“It’s a new area and a lot is going to depend on the manufacturer but we’ll be monitoring how this area of the market develops and respond accordingly.”
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