Securing used car supply: how to do it using Trade-In offer.
In the world of used cars, dealerships are experiencing a significant uptick in sales, with a 10.5% increase compared to last year.
However, there’s a problem: there aren’t enough cars to meet this demand.
According to used inventory tracked by Cox Automotive Australia via its insights tool, AutoRadar, and as reported in the latest Vehicle Market Insights Report, dealer inventory has dropped by 6%, and it’s taking less time for cars to sell – down from 68 to 63 days. After a bumpy ride in 2023, used car prices have stabilised after falling substantially across 2023, and so far in 2024, they are up 1.9%. This means dealers need to make sure they have enough cars on their lots. With Consumer demand currently outpacing supply, dealers with a strong list of cars on their lots will set themselves apart.
Leverage Trade-in Offer to source the right stock
Tailored for dealer groups, franchises, and independent dealers alike, a trade-in online valuation tool like Trade-in Offer enables car owners who want to buy a new car, or trade in their vehicle at a dealership due to economic pressures, change in lifestyle or any other reason, to receive an immediate online valuation for their car.
If your dealership website still doesn’t feature an online valuation tool, there are a few reasons why Trade-in Offer can set your dealership apart; these include:
Customer Satisfaction: As more consumers continue to crave the convenience of online shopping, they also expect to find the value of their car on your dealership website. Therefore, offering a seamless online experience builds trust and satisfaction, converting potential sellers into loyal customers.
Increased Lead Quality: A valuation tool attracts eager shoppers, boosting car sales as buyers will have the availability to take the valuation process a step further by selecting an appointment at your dealership to get their cars inspected physically.
Price control: With Trade-In Offer from Cox Automotive, you’re in the driver’s seat. You have the power to adjust pricing according to your parameters, ensuring all offers align with your pricing strategy. Moreover, you can customise criteria for various vehicle attributes, such as condition, history, and features, giving you full control over the valuation process.
Seamless Website Integration: Trade-in Offer seamlessly integrates into your website, which means enhanced user experience and higher-quality leads. By incorporating a call-to-action link or tools like Connect, you can capture valuable trade-in leads, streamline the sales process and foster trust among your customers. Features like Remember Me, present in Trade-in Offer, allow consumers to return to your website and quickly regenerate their offer within six weeks of their last offer, enhancing the likelihood of converting leads into inspection requests at your dealership.
Once your online trade-in tool is set up, the next step is to develop your strategy to attract traffic to your website; here are a few ideas to get you started:
How to drive traffic to your trade-in valuation tool
- Promote the page on your dealership website hosting the trade-in valuation tool as a hero image on your home page.
- Work with your online advertising agency to run an SEM campaign (Google ads and display) that entices car shoppers to buy a new car from you in exchange for their current one. Given that your primary goal is to expand your inventory, it’s crucial to recognise that trade-ins may not always culminate in immediate car purchases. By acknowledging this, you enable your agency to create campaigns tailored to individuals navigating personal circumstances, financial factors, or shifts in transportation requirements, thereby optimising your campaign’s effectiveness in acquiring new stock.
- Run a direct email marketing campaign targeting your dealership’s database, educating them about the process of trading their car and that the trade-in value can vary depending on a number of factors, such as the popularity of the make and model, how many similar cars you already have on the lot, and the age and condition of their car when they bring it into trade.
- Place a physical QR code linking directly to your online valuation tool on every car that is on display. This encourages visitors to find out the value of their car so they can trade it for the one they are looking at!
Finally, always remember to tailor your pricing strategy to cater to the diverse range of customers visiting your site. Consider adopting a more aggressive/generous approach by offering generous trade-in incentives for vehicles that are in high demand and provide a more conservative approach for the make and models that are less desired in your PMA. An insights tool like AutoRadar can be of great assistance when researching this level of information.
To learn more about Trade-In offer, please visit: coxautoretail.com.au/products-services/trade-in-offer/
