The used vehicle landscape has undergone extreme fluctuations over the last few years, making it difficult for both dealers and customers to navigate the market. However, while some have struggled to make ends meet, other retailers have not only managed to survive the complications but also thrive.
On this episode of Driving Solutions, host Jim Fitzpatrick is joined by Brian Kramer, executive vice president and general manager of Accu-Trade at Cars Commerce, and David Simches, used car director at Crown Automotive Group. According to Cars Commerce’s recent 2024 Automotive Trends study, used vehicle inventory is likely to remain sparse for the rest of this year. Now, Simches and Kramer discuss an innovative solution to help dealers navigate this shortage while heavily boosting performance.
1. The average transaction price of a used vehicle has risen $10,000-$15,000 in the last 18 months. On top of this, interest rates have also risen due to the Federal Reserve’s disinflationary measures. These two issues have made the traditional wholesale method of buying pre-owned stock less efficient and more costly than before.
2. Customers looking to trade a used vehicle value transparency above all else, both in terms of what their replacement will cost and what their trade-in is worth. To have a good experience, shoppers must have access to simple processes, accurate estimates, and easy-to-understand terms.
3. Cars Commerce’s Accu-Trade platform improves transparency by providing accurate appraisal estimates on used vehicles, giving both dealers and consumers more confidence in the numbers they are given.
4. Using Accu-Trade in the dealership also removes stress from consumer interactions. Kramer notes that used vehicle managers and associates are under immense pressure throughout the day. Having access to a tool they can trust to deliver reliable answers gives them more time to verify appraisals and increase their output.
5. Accu-Trade’s simple and efficient software also makes the appraisal process faster. Simches notes the platform has enabled the Crown Automotive Group team to increase appraisals to 1,500 per employee per month.
To learn more about how Accu-Trade can help your dealership make the used vehicle appraisal process more efficient and more accurate, visit their website or catch Cars Commerce at booth #3621W at the upcoming 2024 NADA Show.
"There's going to be a lopsided [used vehicle] shortage. The dealers that are not putting in processes to buy cars from consumers are going to feel the brunt of it more...The proactive dealers are gonna get their unfair share, and the ones that don't have a consumer sourcing model are going to be at a disadvantage." — Brian Kramer, Cars Commerce