We all know that when Cox Automotive experts give advice on what they are seeing, especially when it comes to appraisals, merchandising, and pricing tactics, we all like to take note. So, in today’s episode of Inside Automotive, we’re in luck as Jade Terreberry, Sr. Director of Strategic Development at Autotrader and Kelley Blue Book, and Micah Tindor, Senior Manager of Strategic Planning with Kelley Blue Book Instant Cash Offer, join us.
They’re here to give dealers a look into what trends they’re seeing when it comes to earning the trust and business of today’s consumer with a modern appraisal and acquisition strategy – and, more importantly, what actions you should be taking as a result of those findings and insights.
Key Takeaways
1. According to Micah Tindor, customers expect the same seamless experience from online to in-store, but inconsistencies in appraisals often cause frustration. “In-store experiences should mirror what consumers find online,” Tindore emphasizes. He advises that dealers adopt standardized appraisal processes across all touchpoints to avoid breaking trust and encourage smoother transactions.
2. Jade Terreberry points out that transparent, data-backed offers, particularly using tools like Kelley Blue Book, are essential for building trust. She notes that dealers who provide clear, data-supported reasoning for their offers create a level of trust that helps close deals more efficiently.
3. Tindor highlights that trade-ins’ top consumer pain points revolve around pricing and damage assessment, with six out of ten unmet needs linked to these areas. He notes that providing clear communication throughout the appraisal process can make the difference in securing a sale.
4. Terreberry suggests that while price matters, customers often prioritize trust and transparency over getting the lowest offer. “Consumers are willing to pay more if they trust the dealer,” she explains. Creating emotional engagement through honest and transparent communication helps dealerships build lasting customer relationships, even when the price is not the lowest available.
5. With many customers currently underwater on their trade-ins, Tindor recommends that dealers focus on helping consumers understand how to maximize their equity. “We’re seeing a shift where consumers are more cautious about trading in vehicles with negative equity,” he says. Streamlining the appraisal process and offering clear options can help dealerships close deals while addressing these financial concerns.
“Consumers don’t want to deal with the old back-and-forth appraisals anymore. Transparency, trust, and using data to explain pricing are critical. Win that emotional connection, and the price takes a backseat.” – Jade Terreberry
