Dealers of peaches and lemons: How can used car dealers use trusted car data to create value?

Abstract

The used car market is full of mistrust and uncertainties. Providing a vehicle history with trusted car data increases market transparency but also threatens the market position of used car dealers. But does a vehicle history also provide opportunities for them? Based on expert interviews, we propose three design principles addressing current problems. The evaluation results of prototypes - which are based on these principles - indicate that they could improve the current market situation by easing data access, increasing the efficiency of sales related processes, and by expanding the competences of used car dealers. This paper is one of only few papers analyzing the current situation of used car dealers in the light of emerging new technologies. It indicates that used car dealers do not necessarily become disintermediated by the provision of trusted car data but rather have opportunities to reinvent themselves.