OEMs know conquest sales are vital to their long-term customer acquisition strategy. Manufacturers devote millions of advertising dollars each year to drive conquest-lead traffic into dealer showrooms.
The concept is simple: Convert a competing brand’s customer to your product.
But what happens to that off-brand vehicle trade-in? Today, new valuation technologies specifically designed for vehicle trades allow dealers to increase conquest-sale conversion rates while mitigating wholesale risk in noncore inventory.
While straight “no trade” sales allow dealers to gain customers while making small margins, doc fees, and F&I income, conquest leads involving an undesirable trade-in can adversely impact closing rates, and erase potential profit margins.
Closing the deal becomes a lot easier in today’s market with the use of technology that provides dealers with valuation information and firm purchase offers for trades. Dealers that use technology to engage customers during the trade-in process provide a transparent approach and deliver a powerful level of consumer confidence.
As you know, balancing accurate valuation within the time constraints of working with customers can be a challenge.
Dealer software and lead providers approach the valuation challenges differently. Some take an algorithmic approach to generating an offer, while others syndicate the vehicle to a market of potentially interested dealers.
Both methods may have their individual strengths, but for conquest sales, a third method of trade evaluation is evolving: the community approach.
By scanning and submitting information from any mobile device, a vehicle is analyzed in real time by a team of experts. By collectively using the latest market information, the team can then generate a rapid cash offer within minutes.
This community approach, with a live team viewing each car, allows dealers to mitigate any unnoticed factors, including trim level and options, that are often overlooked on noncore makes and models.
These community-generated cash offers provide confidence at the other end of the transaction, ensuring hard-earned profit isn’t lost by wholesale inventory exposure. Dealers can quickly turn off-brand conquest inventory into cash.
Technology is changing the marketplace. Dealers have many options to help navigate the valuation process and grow their business.
Utilizing these new tools not only provides for more accurate valuations and increased retail sales, it also elevates the level of trust and transparency between dealers and their customers.
Jeff Risner is co-founder and CEO of The Appraisal Lane, a real-time used car trade network and communications platform. For more information, visit www.TheAppraisalLane.com or download the app from the App Store (iPhone/iPad) or Google Play (Android). Call (888) 737-9909 or email [email protected].
