The Carketa Score

Carketa Score User Guide

Introduction

The Carketa Score is a comprehensive rating system designed to provide insights into a vehicle's market position, condition, and potential profitability. This guide explains how to interpret the score and its associated metrics to make informed decisions.

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Understanding the Carketa Score

The Carketa Score is rated on a scale of 1 to 10, with 10 being the best. A higher score indicates a better vehicle in terms of value, demand, and overall marketability.

Interpreting Key Metrics

1. Market Day Supply

• Measures how long similar vehicles typically take to sell.

• Lower numbers indicate high demand, while higher numbers suggest slower sales.

• Example: 59 days means it would take 59 days to sell out the current supply in your market.

2. Days on Lot

• Tracks how many days the specific vehicle has been listed for sale.

• If this number is close to or exceeds Market Day Supply, it may indicate low demand or pricing issues.

• Example: 51 days suggests the vehicle will take 51 days to sell based on market averages for that specific vehicle.

3. Depreciation

• Shows how much the vehicle has decreased in value over a given period.

• A higher negative number means the vehicle is losing value faster.

• Example: -$1,499.00 means the vehicle has depreciated by $1,499 over the last 90 days.

4. Margin Opportunity

• Represents the potential profit for dealerships.

• A higher margin means more room for profitability.

• Example: $5,016.99 suggests that, based on market trends, there is a potential $5,016.99 margin available based on wholesale market averages and average retail price.

How to Use the Carketa Score Effectively

For Dealerships

• Use the Carketa Score to assess which vehicles are the most profitable and in demand.

• Monitor Market Day Supply to determine pricing strategy and expected turnover.

• Analyze Depreciation to understand vehicle value trends.

• Leverage Margin Opportunity to optimize pricing and maximize profit.

For Buyers

• A higher Carketa Score indicates a better investment with lower depreciation risk.

• Compare the Market Day Supply and Days on Lot to gauge demand and negotiate a better deal.

• Consider Depreciation trends when making long-term ownership decisions.

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Conclusion

The Carketa Score is a powerful tool for evaluating a vehicle’s marketability, profitability, and value. Whether you’re a dealer looking to optimize inventory or a buyer searching for a great deal, understanding this score can help you make informed automotive decisions.

Updated on: 27/02/2025