How Kelley Blue Book® Instant Cash Offer Helps Real Dealers Excel

We’ve written a lot this year about all the ways Kelley Blue Book Instant Cash Offer can help dealerships get access to more used cars at better prices, and simultaneously create the kind of superior customer experience that turns one-time shoppers into loyal buyers and sellers. But what does that all look like on the ground? How are real dealerships using Kelley Blue Book Instant Cash Offer to win?

In this post, we’ll hear from three successful dealerships around the country exploring the different ways they use Kelley Blue Book Instant Cash Offer to boost traffic, improve customer experience and hold on to more profit.

Team Nissan

New Hampshire

Selling or trading-in an old vehicle is a big financial decision, and customers naturally want to get the greatest value possible out of their cars. That can lead to friction if an assessment comes in under what they’re looking for — even if your price is fair, the customer is likely to keep shopping around to try and do better.

Overcoming this disconnect is one of the top reasons Ralph Fast, general manager at Team Nissan in Manchester, New Hampshire, decided to give Kelley Blue Book Instant Cash Offer a try — since Kelley Blue Book is the nation’s most trusted source for vehicle valuations¹ and the #1 most used third-party automotive site for research and online car buying,² Fast thought it made sense to meet customers where they were and use the same tool to generate valuations.

Not only did that decision increase the credibility of Team Nissan’s offers — customers were more likely to trust Kelley Blue Book’s impartial valuation over one that came from the dealership itself — it also boosted gross profit by simplifying customer acquisition both by generating more leads and by creating a streamlined digital retailing process that made selling as simple as possible for consumers.

“When you look at the cost of acquisition, you look at the cost of contact and then you look at the gross profit per transaction, Instant cash offer is a clear winner.”

— Ralph Fast, General Manager, Team Nissan

Lindsay Automotive

Ohio

As the owner of one of the country’s largest Honda dealerships, Steve Lindsay needed a reliable way to source high-quality used cars, especially as the inventory of vehicles became tighter over the last several years. Relying on auctions was proving difficult due to both lower-quality cars and the fees and logistical headaches that came with getting those cars to the lot.

Taking a closer look, Lindsay saw that the quality he was seeing from trade-ins was much higher than on the auction line, so to get the best vehicles, he decided he had to focus on attracting those customers interested in selling or trading-in their used cars. To help achieve that, he turned to Kelley Blue Book Instant Cash Offer, trusting that reliable, easy-to-use third-party valuations would make it simpler for his dealership to win the business of consumers looking to sell their used vehicles.

With Kelley Blue Book Instant Cash Offer, Lindsay has been able to reliably source high-quality used cars, even when inventory has been tight, all while avoiding the fees and logistical headaches that come with auctions. It’s saved him real money, too — vehicles sourced through Kelley Blue Book Instant Cash Offer are saving him 3.2% over other channels.¹ That translates to, on average, about $900 more in profit per vehicle than they would otherwise make with any other sourcing channel.¹ And with trusted valuations and an easy, all-digital process, his customers feel like they’re getting a great deal through a simple, streamlined sales process.

“The nice thing about KBB ICO is not only are you getting an established value, but then you’re not having the additional costs of the logistics of trying to get the vehicle here, which is not only expensive in dollars but difficult in [terms of] time to actually get the vehicle.”

— Steve Lindsay, Lindsay Automotive, Columbus, OH

Germain Dealer Group

Ohio, Michigan, Florida, Arizona

With 20 locations across the country, Germain Dealer Group needs a lot of used vehicles to keep up with consumer demand. And with the tighter supply dealerships have been navigating for the last few years, getting their hands on the volume of cars they needed was getting challenging.

That’s why Used Car Director Jim Farkas turned to Kelley Blue Book, putting his trust in a proven source of new customers — and their used cars. Farkas knew that Kelley Blue Book products and tools reach nearly 8 in 10 online shoppers¹, so integrating those tools into his dealerships’ process would create a reliable stream of new customers looking to sell. With a focus on streamlined buying, he’s been able to source more cars for better prices — in fact, he now gets 40%–50% of his used vehicles through Kelley Blue Book Instant Cash Offer — and he’s seeing big profits by trying to acquire as many cars as he can without worrying about selling new cars to every buyer.

And because Kelley Blue Book Instant Cash Offer is so easy to use for his customers, he’s seeing great results in other KPIs, like appointment show rate and closing percentage. When you’re looking at something as vital to a dealership’s health as margin, every little bit helps, and even little wins like those have translated to big bottom-line results for Farkas and his business.

“The trust factor that we have with the consumer between our Germain brand and Kelly Blue Book is the biggest thing that we can work with.”

— Jim Farkas, Used Car Director, Germain Dealer Group

It’s Easy to See Why Dealers Love Kelley Blue Book Instant Cash Offer

As we’ve seen, Kelley Blue Book Instant Cash Offer is a tool you need in your dealership strategy if you want to source high-quality cars at great prices and make customers happy. With easy-to-use digital tools, Kelley Blue Book helps dealerships implement powerful hybrid approaches to acquiring used cars, giving customers access to trusted valuations and streamlining the selling process from start to finish so that every step feels like a win-win for dealers and consumers.

To learn more about how Kelley Blue Book Instant Cash Offer is helping dealerships all over the country increase their margins, even in a tough market, check out our testimonials page and hear directly from the dealers who are seeing easier acquisitions, higher margins and happier customers by working with us.

SOURCES:

1. Q4 2023 Consumer Brand Tracker.

2. 2023 Cox Automotive Car Buyer Journey Study, Cox Automotive.