Used car specialists using AI to assist teams with vehicle appraisals

Used car specialists are using artificial intelligence (AI) to help elements of the vehicle appraisal process, according to a panel of experts at the Vehicle Remarketing Association (VRA)’s March member meeting.

The meeting took place at Cox Automotive’s Innovation Centre at Bruntingthorpe, Leicestershire.

Adrian Kelly, director of inspection and logistic services at Cox Automotive, said: “Probably the first thing to realise is that the term ‘appraisal’ covers a whole range of different actions, from a full assessment of a vehicle carried out to an industry standard by an expert, to a two-minute walkaround of a vehicle by a collection driver. 

“AI has different potential roles to play, depending on the appraisal taking place.

“Generally, we see AI as augmenting humans.

“It’s improving all the time and there may be a time when it can do more but, at this stage, we see its main role as an aid to help people carry out faster, more accurate assessments.”

AI tech will find a more advanced role in used car sector

Simon Jackson, managing director at Vehicle Quality Solutions, agreed: “The current capabilities of the technology depend very much on the circumstances.

“Ask AI to assess a freshly valeted vehicle in a well-lit, purpose-built studio environment, and the results will be relatively good.

“Do the same with a grimy car in an underground car park late at night and the data will be understandably compromised.

“Our view is that the technology will improve and over time, find more of an advanced role.

“However, at the moment, it’s more a question of using it to ensure accuracy.

“For example, assessors make very human mistakes such as entering the wrong registration plate, and AI can certainly help in that area.”

Phil Deegan, head of UK sales at AI vehicle inspection company Pave added that while there was a definite role for AI in helping trained people carry out better appraisals, there was also the possibility of it being used by people without specialist training in some applications.

Deegan said: “A good example of this is upstream remarketing where you might ask someone whose car is coming to the end of the lease to download an app and follow its instructions to check the vehicle.

“Is this as good as a trained person? No, but it can provide low cost and effective data that allows the leasing company to decide to which remarketing channel the vehicle should be allocated, making considerable savings in areas such as vehicle movements and potentially improving days to sell.”

Importance of accurate vehicle grading

The meeting also heard from Paul Hill of the National Association of Motor Auctions (NAMA), on the importance of using appraisals to carry out accurate vehicle grading and how this can feed directly into profit opportunities.

“A key purpose of vehicle grading is to assess what we call vehicle enhancement. 

For example, you might be able to spend £550 improving a car that has been assessed as a grade four using the five-grade NAMA system.

That investment will make it a grade two and enable you to increase the vehicle’s resale value by £1,000.

“With a general ageing of the vehicle parc having taken place since the pandemic, leading to a general deterioration in vehicle conditions, being able to recognise opportunities for additional revenue is important for vendors and retailers.”