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Acquiring a cost-effective and attractive pre-owned inventory can be challenging in today’s auto market. Options are limited, wholesale and auction prices are high, and customers hold on to their existing cars longer than ever.
However, dealerships possess another source for used car acquisitions: fixed operations.
Countless vehicles – many of which would boost inventory value – pass through these departments every year. Unfortunately, some dealers fail to recognize potential service drive appraisal benefits and, as a result, have not yet designed strategies to leverage this resource.
This article outlines four of those benefits that all dealerships should consider to boost trade-in profits.
4 Service Drive Appraisal Benefits
1. Acquiring New Inventory Cheaper
All dealerships face cost and supply-related challenges when acquiring new inventory,
- Rising wholesale prices
- A limited supply of high-quality/ready-to-sell vehicles at auctions
- Expenses related to transporting cars to the sales lot
- Evaluation and reconditioning costs
However, dealers can minimize (or avoid altogether) these prohibitive expenses by skipping conventional strategies and identifying potential trade-ins at the service drive.
Two reasons why customers might consider selling their vehicle instead of going through with repairs are as follows:
- Service costs vs. car value. Depending on their vehicle’s worth, many customers face repair bills that make little economic sense. In those cases, they might prefer trading in the vehicle and putting that cash towards a new car.
- Service vs. appraisal time. Service wait times can stretch for hours, if not days, depending on the necessary repairs. Appraisals, on the other hand, are quick and straightforward. When customers wait for extended periods, they might be more willing to entertain offers for their cars.
2. Buying and Sourcing the Right Vehicles
Dealerships sometimes struggle to attract new business because they purchase and source undesired or low-quality vehicles.
These mishaps can occur when dealers rush to close deals and build upon a depleted inventory, causing them to trade automobiles hastily and without due diligence. These incomplete vehicle evaluations can result in an inventory of cars no customers want to buy.
However, a pre-purchase vehicle evaluation at the time of service avoids the potential of acquiring vehicles that are not precisely what a dealership needs. These inspections provide dealers with comprehensive assessment reports that help them determine which vehicles to target.
3. Offering Fair Value
Dealers can leverage vehicle evaluation software at the time of service to establish a solid and price-accurate offer for customers based on relevant specifications such as:
- Dependability ratings
- Safety features
- Vehicle history reports
This information eliminates the guesswork when establishing a car’s worth, allowing dealers to develop a straightforward pricing strategy and offer fair and reasonable prices to both parties.
4. Creating Experiences that Attract More Business
Dealers not only close more profitable deals by providing potential customers with reliable data, but they provide experiences that create satisfied customers and repeat business.
Satisfied customers, in turn, speak favorably about their experience. Potential customers who hear about these informative and transparent experiences are more likely to choose that dealer for their next trade-in.
Trade-In Profits Require the Best Tools
Trade-ins are often a primary source of dealership profitability, and those profits stem from successfully buying and selling vehicles at the right price. Moreover, determining those prices can prove difficult if dealers do not implement the right strategies to perform those assessments.
Vehicle evaluations at the time of repair are one such strategy. A service drive appraisal benefits dealers by identifying and accurately assessing potential cars for their inventories by providing real-time data, inventory sourcing information, and rapid inspection reports.
However, performing these data-driven evaluations accurately and efficiently requires the best appraisal software. Your dealership needs trade-in tools that help generate high-quality leads and more opportunities to buy and sell vehicles at optimal prices.
Contact us today and discover how Affintiv’s Service Lane Appraiser can help your dealership identify more leads, trade cars more often, and boost profitability.
All | August 11, 2022