OPENLANE Transforms Condition Reports with Actionable OBD2 Intelligence

Rhea-AI Summary

OPENLANE (NYSE: KAR) has launched Code Boost IQ, a groundbreaking vehicle inspection enhancement for its US marketplace. This AI-powered tool translates complex OBD2 diagnostic codes into simple, visual alert banners, enabling dealers to make faster and more informed decisions when purchasing wholesale used vehicles.

Key features of Code Boost IQ include:

• Leverages AI and OPENLANE's vast data repository of over 1.2 million OBD2 scans
• Predicts codes indicating high probability of issues, repairs, or potential arbitration
• Displays color-coded, plain language alerts on vehicle condition reports
• Available on all dealer-consigned vehicles in OPENLANE's US marketplace

This innovation aims to simplify the wholesale vehicle buying process, increase transparency, and reduce the likelihood of code-based arbitrations.

Positive

• Launch of innovative Code Boost IQ tool, enhancing vehicle inspection process
• Utilization of AI and vast data repository (1.2 million+ OBD2 scans) for predictive analysis
• Potential reduction in code-based arbitrations, improving efficiency
• Increased transparency and simplified decision-making process for dealers

Negative

• None.

Insights

Tech Expert

OPENLANE's Code Boost IQ represents a significant leap in vehicle inspection technology. By leveraging AI and big data to interpret OBD2 codes, they've created a powerful tool for dealers. This innovation addresses a major pain point in the industry - the complexity of diagnostic codes. The system's ability to predict high-probability issues based on historical data is particularly impressive.

The data moat OPENLANE has built with over 1.2 million OBD2 scans gives them a substantial competitive advantage. This large dataset, combined with AI, allows for more accurate predictions and insights, potentially reducing arbitration risks and improving transaction efficiency in the wholesale vehicle market.

From a tech perspective, this development showcases the practical application of AI in a traditional industry, demonstrating how data-driven solutions can simplify complex processes and add significant value to users.

Market Research Analyst

OPENLANE's Code Boost IQ is a game-changer for the wholesale used vehicle market. By simplifying complex OBD2 data, it addresses a important information asymmetry problem in the industry. This innovation could potentially increase market efficiency and transaction volume by boosting buyer confidence and reducing seller risk.

The tool's ability to predict high-probability issues could lead to more accurate pricing in the market, potentially narrowing bid-ask spreads and increasing liquidity. Moreover, by reducing the likelihood of code-based arbitrations, it could lower transaction costs and improve overall market satisfaction.

This development positions OPENLANE as an industry innovator, potentially attracting more dealers to their platform and increasing their market share. It's a strategic move that leverages their data advantage to create a unique selling proposition in a competitive market.

New Code Boost IQ Exploits Data Moat to Empower US Dealers with Smarter, Faster Purchase Decisions

CARMEL, Ind., Aug. 15, 2024 /PRNewswire/ -- OPENLANE, Inc. (NYSE: KAR), a leading operator of digital marketplaces for wholesale used vehicles, announces the launch of Code Boost IQ, a first-of-its-kind vehicle inspection enhancement that enables faster, better informed decision-making for dealers. Industry-standard "On-Board Diagnostics II" (OBD2) scans detect thousands of alphanumeric diagnostic codes that indicate potential mechanical or electrical issues. Code Boost IQ leverages artificial intelligence, the company's analytics engine and millions of internal data points to translate flagged OBD2 codes into simple, easy-to-understand visual alert banners. Available on every dealer-consigned vehicle in OPENLANE's US marketplace, Code Boost IQ helps dealers quickly discern which codes are cause for concern and adjust their pricing or purchasing approach accordingly.

"OPENLANE is committed to making wholesale easy with every customer, and Code Boost IQ is just another OPENLANE innovation that's making our marketplace the smartest, most transparent and most efficient platform for dealers to transact," said James Coyle, EVP and president, North American marketplaces at OPENLANE. "Code Boost IQ cuts through the complexity of OBD2 codes, increasing signal to noise and highlighting the information dealers need the most. Buyers save time and have more confidence in their wholesale bidding and buying strategy, while sellers benefit from the reduced probability — and potential frustration — of a code-based arbitration."

Code Boost IQ works by aggregating millions of OBD2 scans captured through OPENLANE's data-rich service network, and following those codes through pre- and post-transaction. Wielding AI and the company's market-leading technology, Code Boost IQ can then accurately predict which codes indicate the highest probability of issues or repairs, or which may lead to an arbitration. That intelligence is then simplified into color-coded, plain language alert banners that are prominently displayed at the top of each dealer-consigned vehicle condition report to indicate no trouble codes, confirmed trouble codes or high probability of repair needed.

"We're proud to be the first to effectively translate the more than 39,000 distinct OBD2 codes — including thousands of manufacturer-specific codes — into information that dealers can easily understand and quickly act on," said Shiv Dutt, SVP and president, US marketplace at OPENLANE. "With over 1.2 million OBD2 scans and counting, we've built a feedback loop between our code scan and arbitration data to better inform customers about potential vehicle condition issues based on triggered codes."

Alongside Visual Boost AI™, Code Boost IQ reflects OPENLANE's commitment to solving a persistent industry pain point for customers by delivering the industry's most robust and transparent inspections and condition reports in a format that is quick to navigate and easy to understand. It is the latest marketplace enhancement fueled by OPENLANE's innovation pipeline, which deploys leading-edge technology and AI to simplify the customer experience while delivering superior results and success.

To learn more and request a preview, visit openlane.com.

OPENLANE Contacts:
Media Inquiries:	Analyst Inquiries:
Laurie Dippold	Itunu Orelaru
(317) 468-3900	(317) 249-4559
laurie.dippold@openlane.com	investor_relations@openlane.com

About OPENLANE
OPENLANE, Inc. (NYSE: KAR) provides sellers and buyers across the global wholesale used vehicle industry with innovative, technology-driven remarketing solutions. OPENLANE's unique end-to-end platform supports whole car, financing, logistics and other ancillary and related services. Our integrated marketplaces reduce risk, improve transparency and streamline transactions for customers around the globe. Headquartered in Carmel, Indiana, OPENLANE has employees across the United States, Canada, Europe, Uruguay and the Philippines. For more information and the latest OPENLANE news, visit corporate.openlane.com.

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SOURCE OPENLANE, Inc.

FAQ

What is Code Boost IQ and how does it work?

Code Boost IQ is OPENLANE's new vehicle inspection enhancement that uses AI to translate OBD2 diagnostic codes into simple visual alert banners. It analyzes millions of OBD2 scans and predicts which codes indicate high probabilities of issues, repairs, or potential arbitrations, displaying this information in easy-to-understand formats on vehicle condition reports.

How will Code Boost IQ benefit dealers using OPENLANE's marketplace?

Code Boost IQ will help dealers make faster, more informed decisions when purchasing wholesale used vehicles. It simplifies complex OBD2 codes, saves time, increases confidence in bidding and buying strategies, and reduces the likelihood of code-based arbitrations.

Is Code Boost IQ available for all vehicles on OPENLANE's platform?

Code Boost IQ is available for every dealer-consigned vehicle in OPENLANE's US marketplace, providing enhanced inspection information across their inventory.

How does OPENLANE's Code Boost IQ compare to standard OBD2 scans?

Unlike standard OBD2 scans that detect thousands of alphanumeric codes, Code Boost IQ translates these codes into simple, color-coded alert banners. It uses AI and OPENLANE's data to predict which codes are most likely to indicate issues or lead to arbitrations, making the information more actionable for dealers.