How do you handle a trade in request?

[jimmuntz]

We often hear this question asked of dealers with a significant amount of e-sales. The answers vary. Does anyone have a comment or wish to share how they are processing trade in inquires from Internet acquired leads?

[Pat]

This had baffled me until I recieved the arrow tapes and accepted a challenge to use the Kelley Blue Book web site to evaluate a trade. If you direct your users to http://www.kbb.com/kb/ki.dll/kw.kc.uy?kbb&;t&21 You will find a trade in evaluation page. I took the challenge to evaluate 3 of our trades that we had ACV'd off of our in-house KBB and checked them against the web version. Indeed we either paid more than the web appraisel "to make the deal" (in 2 cases) and ACV'd $100.00 less in one situation. I never tell my customers that that is a promised value, but rather it is a fair, impartial idea of their trade-in value. BTW KBB usually runs about $1200 less on the web than in your in house system.

One more thing, get the AROW tapes. If you are struggling with your internet customers, this will take some of the edge off of it.


Check it out, I think you will be pleased.



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dodge1@haddadmotors.com

[R. Insell]

When trade in requests come to me, I send a trade in evaluation to them through the internet asking things such as year, model, make, mileage,any damage..etc. I only ask the basics on it though. I dont ask them things that I would ask them if they were in the dealership because it is too much for them to digest when all they are wanting is a quote. I let them know that it is an approximate figure give or take a thousand and then I show them how their trade will reflect on the quote for the car they are wanting to purchase. If anyone has a better way of doing this, please let me know.

[R. Insell]

Pat, I noticed you said you used the Kelly Blue Book for your trade evaluations. The problem I run into with the KBB is that the retail/wholesale on there is so much higher than what the banks and other financial institutions are willing to give on a used car. This creates frustration for both the customer and the sales personnel. In NY we don't use KBB, we use the Galves. Of course things in NY are alot different than what they are in the Midwest and anywhere else in the United States. Of course this is only my opinion but I don't think KBB should be used to properly evaluate a trade because of the fact that it is so outrageously high. Opinions are always welcome.

[dodge1]

Hmmmm well the banks have no idea what I acv a car for, or what system I use since the dealership is in fact buying the trade, however when selling a used car you are right, they only give you a percentage of the KBB bookout. However the point in case was appraising a trade-in to be included in the purchase of a new or used vehicle. Even when a customer arrives and shows me the "bookout" they did, I always tour their trade with them, we all know that the customer is always aware of whats wrong with the dealers car, but are oblivious to damage to their own. This usually brings thing in-line and we can close the deal without an arguement on trade.



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[B Zimmer]

We've used the KBB site to save quite a few deals. People have become conditioned to "believe" that everything on the Internet is gospel (right or wrong) and bringing in that impartial third party mediates values quickly. KBB is usually within 1,000$ give or take to what our Pre-owned manager puts on the car at appraisal so it's proven to be a very useful tool for us here in Florida. The pain in our side is Edmund's. Where KBB takes into account zip code (market trends in any given area)Edmund's does not, and is extremely low on used car values both trade-in and retail for our area. Clients who are armed with an Edmund's print out are much more difficult to deal with.

[dodge1]

I agree on the Edmunds problem. Maybe an answer here is to point out to your customers. I have yet to find a bank that will use edmunds in their buing decisions on paper. To fall in line with any loan on a used vehicle, they always request Kelly's.

I would simply tell the customer that since this is true, only a Kelly appraisel will work. I even let them use my computer to access KBB on-line. (the reason I let them use KBB online is that their appraisels run under my dealerships book so it saves haggle.



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