3 Strategies for Sourcing More Trades

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3 Strategies for Sourcing More Trades

Clint Eastwood from Good Bad and Ugly

We all know that appraising more cars generates more profits into our dealership. Appraising vehicles gives us an opportunity to provide a desired service to consumers today. With more than 70% of consumers buying a new car with a trade-in attached, it’s now more important than ever to face the trade in head on.

These are three strategies I’ve seen some of the most successful dealerships in our industry implement to source more trades:

1) Inbound strategy

When it comes to trade in’s, consumers want to know the value of their car, without having to talk to someone at your dealership. I’m guessing your website has a generic text box form for “Value My Trade” or “Sell Us Your Car”, but it’s unlikely that you’re capturing many leads. Why? Because we’re programmed as consumers to get instant gratification anywhere we turn, why should it be any different with a trade in value?

Instant Offer is a powerful website widget that gives consumers a range of value for their trade, customizable by the dealership. It’s a great way to give your website visitors what they want, while capturing what you want – the lead. Check out this CASE STUDY that explores the problem and solution. Other inbound tools that dealers are using include: SNAP by TradePending, Tradesii powered by Canadian Black Book and eAutoAppraise based on NADA guides.

2) Outbound strategy

As we know, some consumers today like to try to sell their vehicle on their own before going to a dealership. By creating an outbound strategy or a sourcing team, you can target and find these customers more readily than ever before. Consumers today are more educated than ever. If you can target a specific niche of consumers, or vehicles, and create a well known buying center within your marketplace you’re going to see more vehicles coming in for appraisals. We know that online listing sites like Kijiji are full of three types of vehicles that generally still have equity in them: the thinly traded vehicles that nobody wants to buy, tired of the tire kickers, and desperate consumers. Find these units and you’ll be surprised with your profits.

3) Equity Mining

This is a really great strategy and a hot topic with more companies entering and specializing in the space. Tapping into your current data base and mining for opportunities is one of the most powerful ways to source trade in’s. This strategy is rarely optimized at dealerships but I hear success stories time and time again when people start tapping into this source. I encourage you to call some vendors that specialize in this and ask some questions. The value of a current customer is commonly much cheaper than trying to get a new one in the database. There are lots of players in this space including but not limited to: AutoAlert, CDK, DealerMine, Pearl Solutions, Dealer Socket, AutoHook.

How are you currently sourcing more trade-ins? I’d love to hear some other strategies dealerships are using to find more units to appraise!

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