August 19, 2022
Dealer Trade-in Valuation Tools: How it Works & How You Can Benefit
The trade-in valuation tool is a great way to generate leads and increase revenue. If you’ve ever traded in your vehicle, you know just how important it can be to get the best price possible. While that might seem like an easy task, there are many variables involved with this transaction.
This brief article will explain everything you need to know about trade-in valuation tools, including what they are, how they work, the benefits of having one on your dealership website, and where to get started.
What is a Trade-In Valuation Tool?
A trade-in valuation tool helps consumers and dealerships evaluate the value of trade-ins. Essentially, it’s a service that calculates the estimated retail value of a vehicle based on its condition and features.
How do Trade-in Tools Work?
Originally dealers used physical books tracking the price of vehicles over time to give customers a trade-in value. Those prices reflected a combination of many factors, but there wasn’t, and still isn’t, any transparency as to how those values are determined.
The modern approach to trade-in valuations uses real-time data on the vehicles selling in a buyer’s local market. By measuring the comparable vehicles sold, dealers can present to customers the actual market value of their vehicle. This localization is critical, as vehicle prices can range from city-to-city and state-to-state, just as real estate prices can vary by a few blocks.
Why Buyers Love Trade-In Tools
Dealers love trade-in tools because they’re easy to use, and when done right, can generate a ton of leads from their websites. Potential buyers love them even more because they can compare dealerships on the spot and see their trade-in value in real-time.
Trade-In Leads Can be Very Profitable
Trade-in leads are very profitable. That’s because trade-in leads are more likely to purchase a vehicle from your dealership, even if it is not the same model or brand. This is because buyers who trade in their current car have already done their research and most likely know what they want when they enter a dealership. This means you can sell them a specific vehicle that fits their needs and wants rather than selling them something on blind faith.
In addition to being more likely to purchase a specific car, trade-in leads are also more likely to buy from your dealership than other types of customers. This is because they have already been through the process of purchasing once before; therefore, they are familiar with how it works and will be much more comfortable buying at your place of business since they know what’s expected of them there instead of somewhere else!
Where Can I Get a trade-In Valuation Tool for My Dealership Website?
The best option is to use a stand-alone product that can be integrated directly into your website. TradePending is the leading provider of trade-in tools to over 3,000 dealerships in the US and Canada. You can see how they stack up against the competition here, too.
If you’re looking for a way to increase the ROI of each lead or customer, trade-in tools are one of the highest ROI solutions for converting your website traffic into leads. It’s easy enough that anyone can use one: just enter in some information about the car they want to trade in and get an instant valuation on their vehicle. This not only increases buyer engagement but also incentivizes buyers to act now. By adding a trade-in valuation tool to your website, you’ll be able to generate more high-quality leads and ultimately make more money and source more inventory.
If you are ready to take the next step, then be sure to get in touch with Trade Pending, as their trade-in tool is one of the best in the industry. They also provide additional lead generation and automotive merchandising tools which can make a huge difference in attracting new leads and generating more revenue for your dealership.