vAuto announces the release today of Provision, a powerful used vehicle inventory management engine that will eliminate the pain of finding used vehicles and optimizing inventories for profitability for auto dealers.

“This is a business intelligence break-through for the automotive industry, made possible through our alliance with AutoTrader.com and Manheim,” says Dale Pollak, vAuto founder. “Provision brings game-changing insights and tools to help dealers efficiently and effectively know what vehicles to stock, what to pay and where to find them—all with a real-time, precision approach.”

The Provision engine is based on the three “W’s” of astute used vehicle management:

What cars should I stock? Provision starts with a dealership’s own strategy, using its targets for used vehicle inventory value, age, turn rates and gross profits as foundational parameters. Next, Provision applies a seven-point, market supply/demand-based diagnostic test to all available used vehicles. The diagnostic measures indexes like “Demand” and “Interest,” which distill real-time clickstream data from AutoTrader.com, an industry first.

“Dealers haven’t seen this data before, and Provision ensures it’s front and center for their vehicle sourcing and decision-making process,” Pollak says.

Provision sifts this market intelligence to find and recommend the “right” vehicles for a dealership, down to equipment and trim—even if a store lacks history with a particular make or model. The Provision report card assigns an A-F letter grade to individual vehicles to help dealers make the “pursue or pass” decision.

What should I pay? For vehicles that make the grade, Provision applies an age-old axiom: “you make your money when you acquire a unit.” With this in mind, Provision recommends a wholesale acquisition price for each potential vehicle based on:  a) where the vehicle needs to be priced to assure the maximum and most immediate Internet response; b) reconditioning/other expenses needed to retail the unit; and c) a dealer’s gross profit goal. Provision also flexes to meet individual dealer preferences, allowing them to create “what if” scenarios such as, “If I pay $X for a vehicle, what retail price should I ask to make $Y in gross and sell in Z number of days.”

“Some dealers call this ‘dialing for dollars’ and I heartily agree,” Pollak says.

Where can I get the car? Provision answers this question by going straight to the industry’s top wholesale vehicle sources. The Provision engine links with the industry’s top auction outlets and lets dealers quickly drill down to run lists and lanes for the vehicles they want—another industry first. Provision allows dealers to set up automated proxy bids and/or buy outright with the system’s “click-to-purchase” functionality. Provision will also ease “get it home” logistics, with the eventual addition of automatic transport scheduling with dealer-approved providers for maximum acquisition efficiency.

“Provision goes a long way to eliminating the ongoing pain of used vehicle sourcing and management challenges at dealerships,” Pollak says. “We’ve built a bridge between the top retail (AutoTrader.com) and wholesale marketplaces and made it easy to cross.”

Consolidation = Collaboration = Innovation

The release of Provision is the first vAuto major product launch since the company’s acquisition a year ago by AutoTrader.com.

“When we acquired vAuto just over a year ago, it was with the promise that we’d leverage the strengths of AutoTrader.com and its family of companies to benefit dealers,” says Chip Perry, AutoTrader.com CEO.

“Provision brings AutoTrader.com, Manheim and vAuto to the same table,” Perry says. “It’s a partial fulfillment of our initial promise. I say ‘partial’ because there is more innovation and dealer benefits to come.”

“We’re excited to further our commitment to dealers and other wholesale customers through Manheim’s collaboration with vAuto and AutoTrader.com on the Provision engine,” says Sandy Schwartz, Manheim president.

“It’s a perfect blend of our people and respective market intelligence, technologies and resources to create a win-win for everyone,” Schwartz says. “Provision will be a transformative force for the industry.”

For Pollak, the Provision release is particularly profound. “I put my company, people and reputation on the line with the decision to sell to AutoTrader.com,” Pollak says. “I’m excited about the synergies we’ve created and delighted that 11-11-11 will forever mark a new beginning for the automotive industry.”