The 53% Problem: Why Car Shoppers Are Ditching Dealerships for Trade-Ins (And How to Win Them Back)
Inventory is the lifeblood of any dealership. Yet, a startling new trend suggests that local dealers are losing the battle for one of their most valuable inventory sources: the consumer trade-in.
According to the newly released TradePending 2025 Automotive Consumer Survey, the majority of car owners no longer view the dealership as their first choice for trading in a vehicle.
The data serves as a wake-up call for the industry. It reveals a widening “trust gap” between consumers and dealers but it also provides a roadmap for how forward-thinking retailers can close that gap and capture more inventory.
The Shocking Stat: The “Trade-In Exodus”
When asked who they would consider first when trading in a vehicle, only 46.4% of consumers chose a local dealership.
Where is the other 53.6% going?
- 23.3% would prefer to sell privately.
- 14.6% look to online retailers like Carvana.
- 13.6% prefer national chains like CarMax.
This means more than half of your potential trade-in customers are actively looking for alternatives before they even land on your website. The perception among these shoppers is clear: alternative buyers offer speed, simplicity, and transparency that traditional dealerships often lack.
Why You Are Losing the Trade
The survey highlights that this shift is about the experience. Consumers are voting with their clicks for transparency.
Three key data points from the survey explain the frustration:
- Payment Confusion: 40.4% of shoppers cite a “lack of transparency” (hidden fees and add-ons) as their biggest frustration with online payment calculators.
- History Over Beauty: Shoppers are pragmatic. 70.3% rank accident reports (like CARFAX) as their most important research criteria, ranking significantly higher than photos or videos (61.6%).
- The “Multiple Check” Habit: 57% of consumers check their trade-in value multiple times during the buying cycle.
If your website forces a customer to jump through hoops, hide the “real” numbers, or wait for a phone call just to get a value, they will leave. They will go to a platform that gives them an instant, transparent number.
The “Transparency Strategy” to Win Them Back
The good news? You can win these customers back. The data shows that consumers aren’t anti-dealer; they are pro-information.
1. Ungate Your Trade-In Tool
With 57% of shoppers obsessively checking their car’s value, your trade-in tool needs to be a resource, not a trap. The survey suggests that tools requiring excessive inputs (like VINs, photos, and exact payoff amounts) early in the process drive customers away.
The Fix: Offer a “range-first” approach. Give the customer an immediate, realistic market range to satisfy their curiosity, then nurture them toward a firm offer.
2. Prioritize Facts Over Flash
When merchandising your inventory, align your VDPs (Vehicle Detail Pages) with what customers actually want.
- Lead with the bad news: If a car has an accident history, show it. The data shows 70.3% of users are hunting for this info anyway. Hiding it breeds distrust; showing it builds credibility.
- Show the service records: 67.9% of buyers want to see service history. Highlight the reconditioning work you’ve done.
3. The “Sticky” Solution: Monthly Value Updates
Perhaps the most actionable insight from the 2025 survey is the retention opportunity.
74.1% of vehicle owners stated they would find monthly updates on their vehicle’s value useful.
This is a massive, untapped opportunity for dealers. Instead of “blasting” your database with generic sales offers, provide value. By sending automated, personalized emails showing a customer’s current equity position, you stay top-of-mind. When that customer is finally ready to trade, you are the authority they trust, not a faceless online retailer.
Closing the 53% Gap: How TradePending Restores Consumer Confidence
The data from our 2025 Consumer Survey sends a clear message: the dealership of the future must be built on transparency. If you want to recapture the 53.6% of shoppers looking elsewhere, you need tools that align with their behavior not tools that fight against it.
At TradePending, we build the “Transparency Engine” that powers modern dealerships. Here is how our platform directly addresses the biggest friction points revealed in the survey:
1. Give Them the “Real” Number (Immediately)
The Problem: Shoppers are leaving because they fear lowball offers and prefer the “instant” gratification of online retailers. The TradePending Solution: Our Trade tool moves beyond outdated “book values.” We use real-time, local market data to generate accurate, transparent valuations in seconds. This satisfies the user’s need for speed while giving them a number they (and you) can trust.
2. Turn “Check-Ins” into Retention
The Problem: 57% of consumers check their value multiple times, and 74% want monthly updates. The TradePending Solution: Value Watch automates this retention loop. Instead of waiting for a customer to visit your site, Value Watch proactively emails them their vehicle’s updated value every month. You stay top-of-mind effortlessly, turning that “checking” habit into your own proprietary lead source.
3. Simplify the Payment Conversation
The Problem: 40.4% of shoppers are frustrated by hidden fees and complex payment calculators. The TradePending Solution: Our Payments tool eliminates the guesswork. We provide ranged payment estimates giving more room to work without forcing a full credit application. This builds the financial trust required to move a shopper from a “lead” to a showroom visit.
4. Prove Your Inventory’s Value
The Problem: 70.3% of buyers prioritize vehicle history over photos. The TradePending Solution: AutoBio takes the data hidden in vehicle history reports, like “1-Owner,” “Accident-Free,” or “New Tires and turns them into visible, compelling badges on your VDPs. We help you answer the customer’s questions before they even ask.
Ready to Win Back the 53%?
Don’t let valuable trade-in inventory slip away to private buyers or online giants. Equip your website with the tools that prioritize transparency and match modern consumer behavior.
Schedule a Demo with TradePending today and see how we can turn your website into a trust-building, inventory-generating machine.
Conclusion
The era of “holding back the numbers” is over. The TradePending 2025 Survey proves that today’s auto shopper demands transparency, speed, and ongoing value.
Dealers who cling to opaque processes will continue to lose market share to private sales and online giants. But those who embrace transparency—giving customers the data they want, when they want it—have a golden opportunity to recapture the 53% and dominate their local market.