The two companies arrive at NADA 2024 nearly a year after their acquisition. Here's what they've been up to since.
By Jim Leman, AutoSuccess
Two highly competitive vehicle reconditioning companies have stopped eating each other’s lunch and come together to put more sales and profit on your plate.
Rapid Recon and Velocity Automotive are now part of Vehlo, a relatively new name shaking up used car reconditioning and customer sales engagement and service lane customer-pay solutions.
At NADA ‘24, Rapid Recon announced the next reconditioning revolution benchmark, ASPIRE. This new solution delivers predictable profit per vehicle by using VINSight, an OBD‑II technology from Velocity Automotive and VinTel. It integrates with Rapid Recon to provide appraisers and their customers with accurate reconditioning costs.
“Many of the available appraisal resources offer recon cost averages, but I need more precise cost details,” said David Simches, Group Used Car Director for the 20‑store Crown Automotive Group, St. Petersburg, Florida.
“A manager estimating $4,000 in recon who will spend $1,000 on that car is lowering the car’s value and hoping to steal a trade. Managers estimating $800 for recon but having to spend $2,500 find they have a gross profit problem,” Simches said.
Also integrated into ASPIRE is Velocity Automotive’s customer engagement feature, Engage Digital Vehicle Portfolios. They answer almost every question about the used cars that shoppers consider.
GMs committed to the consistent practice of this appraisal advantage:
• Create a perfect opportunity for appraisers to rise to the status of Trusted Advisor and close the sale.
• Neutralize trade concerns and deliver a hospitality‑like experience.
• Increase profits from parts, customer‑pay services, and used cars.
• Close the appraisal gap.
David Long is executive general manager of Hansel Automotive Group, a position he shares with Justin Hansel. The Group retailed 10,000 vehicles last year, serving the California Bay Area for 62 years.
Over the years, Long has used various “triangulations” to coach appraisers’ effectiveness. “I’ve been taking the long way around this, using a sundial and an abacus for years,” he quipped. “This appraisal tool, though, will give me an estimated‑to‑actual variance by appraiser to tell me who knows what they’re doing and who may need coaching. And just by the fact that we’re measuring it, it’ll find improvement.”
This feedback loop — providing appraisal accuracy information by appraiser and by vehicle — dealers say is a strong continuous improvement tool for their dealerships. "Why aren’t we accurately appraising the car? Why aren’t we using the data to close the gap,” said Matt Hubiak, director of preowned operations for the Swickard Auto Group. The Group operates 50 franchises and 33 rooftops in Alaska, Washington, Oregon, California, and Texas.
“This new appraisal process is critical to tame the ongoing Wild West appraisal situation still happening daily in this industry,” said Dennis McGinn, founder and CEO of Rapid Recon. “Where dealers don’t practice this discipline, their passions and urgencies to make deals and move sales forward — whatever the cost to the customer or the dealership — continue to put profits and customer relations at risk."
ASPIRE’s sales engagement enhancement, Engage Digital Vehicle Portfolios, accelerates customer connections and sales while showcasing vehicle details, OEM window stickers, original sales brochures, service and reconditioning records, accident history reports, third‑party valuations, and more.
“No two used cars are alike, but with these digital vehicle portfolios, we all now speak more intelligently with customers about any car in inventory — and cars sell faster and give us remarkable insight when appraising,” said Jeromie Allan, Partner and Executive Manager for Gary Yeomans Ford, Daytona Beach, Florida.
“Without Velocity Automotive’s Vehicle Portfolios, a used car is just a used car,” Allan said.
Building and maintaining customer relationships is the heart of any successful dealership. Digital Vehicle Portfolio technology fosters relationships in new and powerful ways.
DETAILED VEHICLE INFORMATION
Utilizing window sticker data and OEM build details, dealerships can offer comprehensive insights into each vehicle, empowering customers with the information they need to make informed decisions.
DATA-DRIVEN INSIGHTS
Leveraging customer data to provide personalized offers, reminders, and service can enhance loyalty and create long‑term customer advocates.
“The digital transformation is not an isolated trend; it’s a fundamental evolution reshaping the automotive industry. Embracing this transformation requires understanding the available technological tools and a willingness to replace traditional dealership operations,” said Josh DeYoung, Sales Executive for Velocity Automotive.
About Rapid Recon
Reconditioning workflow automation from Rapid Reconis the industry standard in time-to-line inventory turn and speed-to-sale vehicle revenue enhancement for automotive retailers. Benchmarking data based on 13 million vehicles processed uniquely positions Rapid Recon to advise dealers on how to improve their store’s profitability. Used by more than 2,000 dealerships, Rapid Recon ensures the accountability of processes, property, and people. Hence, dealers know answers quickly, find assets anywhere, and sell vehicles promptly to grow dealership profitability. www.rapidrecon.com CALL US: +650‑999-0497
