DATA ANALYSIS USE CASE:
COVID-19 & CARMAX
Covid-19 and CarMax
How an unprecedented series of events fueled the used car market.
The used car market has been one of the hottest and trickiest markets for consumers, investors, and analysts alike since the start of the COVID-19 pandemic. Organizations shifting to a remote work model, supply chain struggles, and labor shortages have all factored into the rising costs and lack of inventory within the used car market.
Each month the US Bureau of Labor and Statistics releases the CPI (Consumer Price Index) data to report the average trend of prices throughout various market categories within the US. One such category is the Used Car and Truck CPI which attempts to reflect the market conditions within the used car market.
Within this study, we will look at Vertical Knowledge’s Automotive Collection to leverage used car data from 2019-2022 in comparison to the Used Car and Truck CPI data reported from the United States Bureau of Labor and Statistics to learn how time-sensitive data collection can be used as a leading indicator to future CPI index values.
CARMAX COLLECTION DETAILS
Vertical Knowledge tracks daily key metrics for used car sales and purchases for CarMax dealers across the United States. The data collected includes vehicle year, make, model, color, mileage, and pricing.
This collection allows users to predict the results of the company on a national level, as well as individual dealerships. Dealership data includes dealership location, unique ID, physical address, on- hand inventory, reported volume, revenue, and same-store sales. These data points act as a useful performance indicator for specific dealerships, car brands, and regional car market trends.
Download the full CarMax Data Study to understand how VK's Automotive Collection was able to provide key insights:
- Carmax Used Car and Truck Prices and Sales Volume in relation to Covid-19 pandemic milestones
- Carmax Used Car and truck prices in relation to total daily inventory
- Used car and truck reported CPI actuals in comparison to VK's 60-day predictive data model