Black Book, a division of Hearst Business Media that provides industry-leading used vehicle valuation and residual value forecast solutions, unveiled today its latest white paper, offering insight and best practices today’s online trade appraisal process during a vehicle transaction. The paper, titled: “Trade Appraisal: How to narrow the gap to close more deals”, can be viewed by clicking here.
The trade appraisal process is more critical than many industry observers think. Results from a recent Black Book survey showing that consumers feel a vehicle trade-in quote that’s far from expectations is the second-most likely scenario to kill a possible deal.
Many consumers cited specific frustrations with the valuations they often receive from a dealer. 36% of those polled said their researched quote was $1001 - $1500 apart from the dealer’s offer; and another 27% said their quote was more than $1500 apart. Nearly half (47%) said they need the dealer’s offer to be between $501 - $1000 of their research quote for it to be acceptable.
The white paper sheds light on the disconnect between consumers and many dealers. It also explores what’s at stake when a consumer introduces a trade-in as a part of the transaction. Lastly, the paper offers new insight into the role advanced analytics and data now play in evaluating a trade, with the ability to narrow the gap between the vehicle’s actual value and the consumer’s expectations for the trade.
In fact, advanced data, analytics and mobile technology now team together to help build in more profit potential on conquest trades. Years ago, a dealer only leveraged one source to evaluate a trade appraisal. Today, the process is far more complex. Data, analytics and mobile technology allow a dealer to quickly scan a vehicle, with trim-level specifics, and tap into his or her regional or national network of buyers to aid in realizing the best appraisal for that specific collateral piece. This type of technology not only increases profit potential on each trade and transaction opportunity, but it elevates confidence levels on behalf of that new customer, who may also be new to your dealership brand as well, for a new sale.
“We’ve known for a long time that the trade valuation process can mean the difference in profit margin for a dealer,” said Jared Kalfus, Senior Vice President of Sales at Black Book. “This paper reinforces the true importance of the trade, it will hopefully show dealers that there’s a better way to valuate trades today so they can maximize their profit potential on every transaction, which also has a spillover effect for future revenue opportunities with the customer.”
To access the new Black Book white paper on trade valuation best practices, click here.
About Black Book
Black Book® is best known in the automotive industry for providing timely, independent and accurate vehicle pricing information, and is available to industry-qualified users through online subscription products, mobile applications and licensing agreements. A leading provider since 1955, Black Book has continuously evolved to ensure that it achieves its goal of delivering mission-critical information to its customers, along with the insight necessary to successfully buy, sell, and lend. Black Book data is published daily by National Auto Research, a division of Hearst Business media, and the company maintains offices in Georgia, Florida, and Maryland as well as the Canadian Black Book in Toronto. For more information, please visit BlackBook.com or call 800.554.1026.