How can dealers make the most out of trade-ins?

People often go through the phase of online research and feel they have a pretty good idea of the price of their car. But when it came time for the dealership’s trade-in appraisal, they discovered their expectations were way off base. They realise it could have been better if they’d known how to make the most out of the trade-in, and there’s no reason why they couldn’t. Here are some tips on how dealerships can ensure they get more value from every vehicle they buy or sell while providing their customers with the best possible a car sales instant offer to their customers.

Start with pricing.

When determining how much money they can offer for the trade-in, dealers deduct applicable discounts and incentives from the cost of their brand-new vehicles. They then give this discounted price back to customers trading their old cars. But the price should be based on the car brought in for trade-in, as the dealers can only profit off the trade.

Get the trade.

Knowing what the customer wants is crucial in getting a great trade. This cannot be easy, especially if the customer doesn’t know what they want. In most cases, they are just looking for some way out of their current vehicle and into something newer and more comfortable, but that doesn’t mean they have all the information needed to make an informed decision.

If you have a good relationship with your customers and have sold them many cars in the past, it will be easier for you to get them into another one without issues. 

Make sure the financing works for both.

Before looking at trade-ins, ensure that the financing works for your customer and you.

  • Check to see if they have any negative equity. If they do, there’s no point in offering a trade-in because it will only add more debt to their loan.
  • Next, check their credit score. If it’s low (under 620), chances are they won’t be able to get approved for financing another vehicle.
  • Thirdly, determine what type of monthly payment would work best for both parties. The ideal scenario is where you sell a vehicle with low mileage and cash in on your trade-in; meanwhile, your customer gets reliable transportation without having much money tied up in owning one particular car over time.

Don’t forget about the dealership program.

Use your dealership’s vehicle program to help you sell more cars and get more customers. The vehicle program is a great way to increase your sales volume by offering incentives to bring in customers or by helping you sell the inventory that you have on hand. You may also consider working with other dealerships in your dealer group. They’ll likely have better pricing than competitors outside this group, leading to higher profits for everyone involved.

Use a digital tool that offers online trade-in appraisal.

With the rise of online tools and platforms, it’s now easier for customers to get a car sales instant offer for their cars. These tools are convenient for both parties as they fetch a suitable trade-in value (no need to wait days or weeks before finding out the car’s worth). They also provide accurate information on trade-ins that can help you make more informed decisions about how to proceed with the transaction.

Conclusion

A successful trade-in process is an accurate valuation of your customer’s car. This will allow you to ensure that your customers get the best deal possible and are delighted with the experience.

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