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Inventory grades: opportunity, profitability and risk

How MotoDealerHQ grades units, trade-ins and auction listings from A+ to F, scores risk separately, and keeps the grades up to date.

Last updated For general managers, inventory managers and sales managers Documentation for MotoDealerHQ 1.0.0-beta.2 “Assen”

Opportunity scoring grades every unit in stock, every trade-in offer and every auction listing you have imported. Each one gets an opportunity grade (how attractive it is), grades for the parts that make it up such as profitability, and a separate risk level that is never averaged into the opportunity grade. The scoring is deterministic arithmetic on your own data: the same inputs always give the same grade, and every grade can explain itself.

Opportunity scoring is included in the Pro and Enterprise plans.

Where to find the grades #

MenuWhat it shows
Inventory › Opportunity scoring (/scoring)The management dashboard: top opportunities, units needing attention, scores trending down over 30 days, make and model trends and open alerts
Inventory › Inventory scoring (/scoring/inventory)Every unit in stock ranked, with opportunity, profitability, demand, turnover, risk, time to sell, age and the recommended next action
Inventory › Auction opportunities (/scoring/auctions)Auction listings and trade-ins ranked, with maximum bid and acquisition value
Jump to (Ctrl K): Wholesale disposition, Scoring alerts, Scoring settings, Scoring validationUnits to consider wholesaling, alerts, your strategy and the backtest

The scorecard also appears on a unit's Analyze profitability page, on trade-in pages, on the Buying desk worksheet, and as badges on the inventory list and aging report.

The opportunity grade #

The opportunity score (0 to 100) is a weighted average of the parts that have enough evidence. Risk is not part of it.

ScoreGradeMeaning
90–100A+Exceptional opportunity
80–89AHighly attractive
70–79BGood opportunity
60–69CModerate opportunity
40–59DWeak opportunity
0–39FPoor opportunity

A unit shows Insufficient information instead of a grade when profitability cannot be worked out, or when the parts with evidence carry less than 55% of the weight. The scorecard's Evidence quality line shows how much of the weight had evidence.

The parts of the grade #

PartWhat it measures
ProfitabilityExpected gross against your target, margin against your minimum margin, and return on the capital tied up, after carrying cost
Market demandHow fast this kind of unit sells: market sales and days supply when available, your own sales of the make and model, price position among comparable asking prices, and your seasonality
Inventory turnoverExpected time to sell against your turnover target, only from a validated forecast
Acquisition valueHow far the price is below the maximum bid (and below a wholesale reference, when one exists)
Financial exposureCapital tied up, carrying cost as a share of gross, and reconditioning, fees and transport against your maximums
Customer demandWho is asking for this vehicle (requests, leads, test rides). Weight 0 by default; shown only when there is evidence

Each part also gets its own A+ to F grade on the scorecard. Select Why these grades to see every rule that applied.

Profitability grade #

The profitability grade comes from the unit's true cost, expected sale price and holding cost:

  • F whenever the projected result is negative: gross, net after carrying or net contribution below zero.
  • A unit in stock with no recorded acquisition cost gets Insufficient information, because gross would be overstated. Add costs on the unit (see costs and holding).
  • A unit in stock without a supported resale estimate is graded on an explicit scenario of selling at the asking price, shown as "(scenario: at asking)".
  • An auction listing or trade-in without a supported resale estimate is Insufficient.

Your strategy #

Under Scoring settings › Strategy, pick how the parts are weighted:

StrategyProfitabilityMarket demandTurnoverAcquisitionExposure
Balanced (default)3520201510
High Profit501510205
Fast Turnover202540510
Low Risk2515151530
CustomYour own weights, within the platform's limits, adding up to 100

Preferences (preferred makes and models, target categories, seasonal priorities) only move a unit up a ranking. They never change a grade.

Unvalidated defaults

Grades carry the note "unvalidated defaults" until Scoring validation has shown, on your own sold units, that higher-graded units really sold for more gross and faster. The backtest needs at least 30 sold units in each group to give a result.

The risk level #

Risk is scored from 0 to 100 (higher is riskier) across five categories: Vehicle history, Mechanical and condition, Market, Financial and Liquidity.

Risk scoreLevel
0–19Very Low
20–39Low
40–59Moderate
60–79High
80–100Critical

Rules that keep risk honest:

  • A good opportunity grade never hides risk: the two are separate.
  • Missing history never lowers risk. If the vehicle history has not been checked, risk is at least 40, and "no adverse record" is never shown as clean.
  • A critical warning (for example a reported theft record) puts risk at 80 or more.
  • With evidence in fewer than 40% of the categories, the level is Unknown / insufficient evidence. The scorecard shows the risk coverage (for example "3/5 categories") and the missing checks.

Warnings and blockers #

Some findings always show as a warning at the top of the scorecard: verified or reported theft, an unresolved title or VIN conflict, a flood-branded title, a significant odometer discrepancy, major damage not inspected, and missing mandatory documents.

A verified active theft record always blocks an acquisition; that cannot be switched off. Under Scoring settings › Acquisition policy you choose further blockers (by default a flood-branded title and a title conflict). A blocked item shows "BLOCKED" with the reason.

The recommendation #

Recommendation (acquisitions)Wording for units in stock
Strong acquisition candidateStrong inventory opportunity
Attractive with manageable risksGood inventory position with manageable risks
Potential opportunity requiring reviewRequires management review
Marginal acquisitionMarginal inventory position
Avoid under current assumptionsPoor position under current assumptions
Blocked by mandatory policyBlocked by mandatory policy
Insufficient informationInsufficient information

Blockers come first, then a profitability F means Avoid. Critical risk, unknown risk or a price above the maximum bid cap the recommendation. A Restricted badge means it is not an unrestricted recommendation to buy, for example because a history check or inspection is still required.

For units in stock the scorecard also suggests a next action: review missing history, recondition, wholesale, reduce or increase the price, move to another rooftop, increase advertising, or maintain. These are suggestions. A price change goes through price approval.

When grades update #

Grades are recalculated automatically:

  • when a unit is added, or its price, status, rooftop or details change;
  • when acquisition or reconditioning costs change;
  • when a trade-in is created or its offer changes;
  • when a vehicle history result arrives;
  • on an hourly run for everything else, including the passing of time and aging thresholds.

New market data is picked up on the hourly run. A scorecard that is out of date shows Stale with the reason; select the recalculate button on the scorecard to refresh it. Re-scoring reads only data you already have: it never calls a paid provider, runs a history lookup or buys a report.

Scoring alerts #

Scoring alerts lists grade drops, risk increases, aging thresholds, margin below target, market price changes, competing inventory, customer demand spikes, predicted turnover misses, rooftop-move and wholesale candidates, and bids above the maximum. Alerts are in-app only, go to people with scoring.manage at the unit's rooftop, and alerts with money in them only to people who can see costs.

Permissions #

Permissions

  • scoring.view: scorecards, rankings, dashboards and alerts. On by default for owners, general managers, sales managers, rooftop admins, inventory managers, salespeople and read-only users.
  • scoring.manage: strategy, weights, targets, blockers, condition facts, proposing a price and running validation. Owners, general managers and inventory managers.
  • Costs, gross, margins, return, carrying cost and maximum bids need costs.view (or deals.financials). Without it, the profitability, acquisition-value and exposure parts show as Restricted and those figures are removed.

Limitations #

Limitations

  • Grades are only as good as your data: units without costs, sales history or vehicle history checks get Insufficient information or a higher risk floor rather than a guess.
  • Market demand needs real sales evidence; a count of listings alone never counts.
  • Turnover needs a validated time-to-sell forecast, which is in Limited / Beta. See pricing and aging.
  • Scoring never buys, bids or changes a price. It informs people, and Purchasing Controls can require approval for low grades or high risk.

Screenshots show the fictional demo dealership. Something unclear or out of date? Tell your MotoDealerHQ contact or email support@motodealerhq.com.