Dealers need to improve their part-exchange valuations

According to our sources in the trade, more and more prospective customers are coming to the showroom with a clearer idea of what they think their car is worth. The days of relying on what the dealer offers are clearly coming to an end. The emergence of companies offering to buy any car regardless of age, make and mileage, gives the customer a clear choice when deciding the next step in a car purchase.

We have spoken to many sales managers and the climate is certainly changing whereby customers are using the figure offered as leverage when buying their next car. The worrying thing from a car dealers point of view is that loss of control between the point of offering the buyer a price for his car and the customer delaying the buying decision until he is happy with the price he is given.

This can be down to a lack of expertise and desire to receive a trade in which they may only end up in the auction or through the trade and not another opportunity to make a retail profit from the part-exchange.

This may surprise you but many people employed in the car business today are very inexperienced and have simply not gained sufficient knowledge to expertly value a car. As a result of this inexperience they will ‘play safe’ when offering a price and “low ball” a customer basically because they do not want to make a mistake.

The problem with this scenario is although they may occasionally find customers who accept the price and go on to complete a deal on a new car, for every one of these buyers how many go elsewhere and never return because they feel insulted by the price offered?

Well if the growth of direct purchase websites is anything to go buy quite a few. Let’s face it if these companies purport to give you more for your car than if you part exchange, then it is no surprise that deals are not being completed.

Of course It is right and proper for customers to empower themselves in understanding the true and best value for their car, but by the same token there is a real need for car dealers to ensure that their staff are equipped with the correct tools to professionally value a customer’s car.

In simple scientific terms the correct process will help them sell more cars.

As we say in the trade ‘anyone can nick a car” that’s easy, actually pricing a car for what it is truly worth and putting your name to it takes a little more skill than just referring to the trade guides.