AI Tool Offers Insights for Car Dealership Investors

An automotive financial advisory company has unveiled an AI-powered software solution to provide insights and valuations for investors interested in acquiring car dealerships.

The Dave Cantin Group (DCG) developed Jump IQ, which uses AI and data mining to produce detailed valuations of dealerships.

The software takes more than 250 million data points from more than 18,000 franchise dealerships and generates insights on dealerships. Users can compare financial information and performance data against other dealerships, including sites that aren’t listed for sale.

“Our proprietary Jump IQ software provides a significant advantage to automotive dealers who work with the Dave Cantin Group,” said Dave Cantin, DCG CEO and founder. “With Jump IQ, DCG owns accurate, reliable real-time data that directly improves our ability to secure successful mergers and acquisition outcomes for our clients.”

DCG said it has been developing the software since late 2022 and has spent the last six months testing it with industry stakeholders.

The advisory firm will roll out the software in June. Automotive groups looking to use the software will have to pay a fee-for-service. 

DCG said the software will be updated later this year to include more than 40 new metrics users can analyze.

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“More than half of the deals done in retail automotive are initiated by a buyer looking for a targeted acquisition,” said Cantin. 

“With Jump IQ, when we sit down with a buy-side client, we can model and pull up information with respect to any dealership on a big screen and strategically identify top targets based on geography, brand, revenue, performance, or any number of other criteria. 

“When we use that data to engage a target dealership’s principal to gauge interest in a possible divestiture, we’re informed and can engage with the assurance that our buyer’s interest is truly qualified.”