Empowering Your Dealership: Keys to Maximizing Your Trade-In Program

The most successful car dealerships understand that having a robust used-car inventory is mission critical. Used car sales are currently more profitable than new car sales, outpacing them by roughly $378 in gross profit according to the National Automotive Dealers Association (NADA).¹  

But that’s not all. 77% of trade-ins are associated with a new car purchase,² which means your dealership could see profit on both ends of a used-car transaction with the right customers. That makes finding customers with trade-in vehicles and creating the best possible trade-in experience for them essential to turning more profit.  

This blog post will explore how Kelley Blue Book^Ⓡ Instant Cash Offer can help your dealership acquire and retain trade-in customers to maximize its earning potential. 

Quality or Quantity? 

Acquiring the right mix of used cars is a careful balancing act. You want quality used cars, but you also need to have the right volume on your lot to keep people coming in the door. Generally, trade-ins have a lower cost to market than cars bought at auction because they’re in better condition, but it takes more time to find and acquire them, which costs money. 

This is where Kelley Blue Book Instant Cash Offer comes into play. Kelley Blue Book ICO can help your team evaluate potential trade-ins quickly and effectively, pulling far more potential deals (and therefore profits) through your doors. 

Because the trade-ins that come from Kelley Blue Book Instant Cash Offer are usually higher-quality used cars, you’re able to list them as certified pre-owned vehicles with a manufacturer backed inspection and warranty. Certified pre-owned vehicles are easier to move and frequently have a greater return than used cars bought at auction. 

The Art of Maximizing Trade-Ins 

It’s true — Kelley Blue Book is the number one trusted source for customers looking to value a used car. It’s also the most trusted resource among dealers looking to acquire quality used cars. Let’s break down a few key ways Kelley Blue Book Instant Cash Offer can help drive profits in your used car program:

• More Volume: Kelley Blue Book ICO has a constant influx of leads from their partner sites like Autotrader, which means they can source potential trade-ins at a much faster rate. They also have the ability to follow up with those leads from the time they begin a valuation at KBB.com to the time they walk through the doors at your dealership, significantly cutting down the amount of time and effort your team has to put into sourcing used cars. It’s the quickest, most effective way to ensure your dealership is acquiring the volume of quality used cars it needs. 
• Empowered Staff: Because Kelley Blue Book is the most trusted source for valuations among customers, leads that come in through Instant Cash Offer are more likely to trust your dealership, setting your team up for success. Your staff is armed with the information they need to control the trade-in narrative and turn any potential objections into opportunities. 
• Service Lanes : With help from Kelley Blue Book Instant Cash Offer Service Drive Acquisition, your service lane can become your next great acquisition funnel. Your customers already trust your dealership to care for their cars, so when you make them an offer, they know it’s coming from someone who knows their car well. 
• With Service Drive Acquisition you can also easily integrate Kelley Blue Book Instant Cash Offer with other Cox Automotive solutions, like vAuto’s ProfitTime GPS,  Xtime, and VinSolutions. With access to service appointment information and acquisition opportunities in one location, it makes it easy to identify the right cars for your dealership’s inventory strategy and, just as important, at the right price. 

Their Satisfaction is Your Satisfaction 

It’s no secret that customer satisfaction can make or break a dealership. When someone is happy with their trade-in experience, they’re more likely to purchase a new car from you and return for future service visits. They’re also more likely to share their good experience with their personal networks, leading to more potential customers. So how do you ensure a good customer experience? 

• Ease of Communication: With all of the technology available to them, today’s consumers expect communication to be simple and seamless. That means being able to get a valuation and offer on their used car any time, day or night. It also means walking into a dealership knowing the dealer already has all the information from their online offer. Kelley Blue Book Instant Cash Offer makes all of this possible, ensuring a seamless experience from start to finish. 
• Less Friction: Negotiating price is usually the highest point of tension during a trade-in. Both parties want to ensure they’re getting a good deal and aren’t being manipulated into accepting a deal that’s not advantageous to them. Kelley Blue Book Instant Cash Offer helps remove that tension by providing an unbiased, third-party valuation that the customer trusts is fair. Having a starting point and trust already established then allows your team to inspect the car closer and walk the customer through the valuation process, making it easier to land on a number both parties feel good about. 

Getting the Most Out of Kelley Blue Book Instant Cash Offer 

Kelley Blue Book Instant Cash Offer’s Buying Center ensures you’re maximizing all potential avenues for building a competitive used car inventory. It utilizes your dealership’s website, showroom, service lane, and KBB.com and Autotrader.com to generate quality leads at the volume you need. You also have access to Dealership Boost, which allows you to offer more than the Kelley Blue Book valuation on vehicles you really want on your lot. 

But What’s the ROI? 

Deciding whether a tool like Kelley Blue Book Instant Cash Offer is worth your investment is important. Now you can get a customized ROI calculation based on data inputs from your dealership. It gives you a detailed picture of what kind of returns you can expect to see when your team implements Kelley Blue Book Instant Cash Offer. 

Maximize Trade-Ins With Kelley Blue Book Instant Cash Offer 

Whether your dealership is leading the pack or struggling to keep up, Kelley Blue Book Instant Cash Offer can help drive efficiency for your team, leads to your door and profits to your bottom line. To learn more, speak to a team member today.   

Sources:  

1. National Automotive Dealers Association, “2023 NADA Data: Midyear Report,” January 2024. 

2. Internal Cox Automotive Data 2024