Real-time Current $alvage Value™:
Racer Yoemans, Founder and President at BidCall Inc., a bidding software tool for the auto salvage industry based in the US gives his insight to how auto recyclers have dealt with business during the pandemic and the opportunities that are becoming available in our industry as we evolve with the changing times.
As we all continue to evolve with our limited staff during this time, we have managed to adjust how we buy cars and run inventory while working from remote locations. Having already been a company familiar with working remotely before the pandemic, BidCall was assisting customers with not only buying cars but helping them to assess and predict the value of their current inventory for future buying needs. No one knew when this “current normal” would end, but the need for cars would remain essential.
Inventory levels have come up at the auctions, flooding the demand data in our industry. This is pushing the value of the vehicles and the parts that supply our industry to higher values.
In valuing a vehicle for salvage after a total loss, there are two different perspectives a buyer’s and suppliers can use to determine the value of a vehicle prior to purchase. The traditional method of valuing a vehicle is derived from the insurance industry using the standard of Actual Cash Value (ACV) and its process of benchmarking the salvage claim.
An alternate evaluation model that auto recyclers can use includes the sum of all valuable parts to project sales and determine the cost of inventory. This is what we at BidCall refer to as Current $alvage Value (C$V)™ and yes that is a dollar sign – we are talking about cash. Using proprietary algorithms, C$V calculates the value of the vehicles based on current demand data and value of the sum of good parts.
The recycling industry is one of the most data-rich industries on the planet due to interchange inventory software and unique numbers that reside with each individual part. With COVID insurance companies have seized the opportunity to digitise the claims process and streamline this segment of their industry. The auto recycler has an incredible opportunity to help lead this transition from an ACV value proposition into a C$V data-driven monetisation ecosystem.
Normally it takes thirty to forty-five days to convert a total loss vehicle from clean status to salvage in regard to processing the title. How would it sound to have those titles turn around in eight to ten days? Imagine what a quicker turn around would do to your inventory and a return on investment “ROI”, the timeline to serve your customers, and ultimately your customer support.
Cutting down on unnecessary time delays ultimately makes the entire industry more profitable and more efficient. At BidCall, we are truly focused on “Changing the way you look at salvage” and we seek to achieve that goal with innovative ideas like our Bid Call Direct scouting feature. Our hope for this project is to revolutionise the auto salvage industry, making the process of buying and selling vehicles more efficient, successful, and cost-effective.
Scouting is only the first step in our process towards building an accurate, efficient Current Salvage Value for each vehicle we preview. The Current $alvage Value (C$V) is our term for the projected sales for a vehicle, based on your specific inventory needs. C$V’s change based on demand, pricing, for each individual customer’s, current inventory, and regional needs. BidCall Direct’s cloud-based system is designed to accurately and precisely generate a C$V as fast as possible, allowing you to focus on providing for your customer’s needs and selling inventory.
Our software generates these C$Vs quickly due to consistent development and the most up-to-date interchange data. As the old adage goes, “garbage in = garbage out.” Our goal at BidCall is to bring in the cleanest possible data, create the fastest, most accurate C$V we can, and bring a higher degree of value to every vehicle we purchase for our customers. As we continue into the ‘new normal,’ it is important to remember that BidCall Direct isn’t fumbling to keep up with the times. We were already remote workers digitising the buying process for the next generation of the auto recycling industry long before 2020. We look forward to continuing our work on “Changing the way you look at salvage.”
Our innovative scouting tool, and the efficiency of our cloud-based system in quickly generating C$Vs, BidCall Direct is poised to be an industry leader for years to come.