Auto Trader has now launched its Guaranteed Part-Exchange service, having trialled it around 1,000 dealerships. Auto Trader says the new service will help retailers to sell more cars and make more profit – the aim being to complete more of the buying process online and accepting a fixed P/X offer.
The idea is that by the time the customer reaches the dealership they are already incredibly-well qualified as having a commitment to buy. The service is based on guaranteeing a part-exchange price for the customer’s car, working through condition-based valuation criteria.
The customer also benefits from being able to complete most of the process at home.
Auto Trader says that missed opportunities from part-exchanges are common, with around 70% of buyers having a car to part-exchange as part of their next purchase. But around 16% have to haggle over the price and they find this annoying.
The result of the haggling is that the customer feels their car is under-valued by the dealership, leaving them disappointed. Apparently, around 29% of customers would be prepared to walk away from a deal if they had received a lower offer than the one they are finally given.
So with the PX offer fixed online before they start to buy, those annoying haggles and snags are eliminated from the process. Result? Happier customer, happier buyer.
Happier dealer, also. Why? People trust Auto Trader. If AT says their car is worth £X then they will accept that. So retailers can cut out many potentially lost sales, save time, and speed up cash flow by attracting highly qualified buyers who are ready to purchase.
Auto Trader’s research says that two out of three (61%) customers are more likely to purchase from retailers who can guarantee the part-exchange.
Auto Trader’s car retailer partners can sign up here to get their first 60 days of Guaranteed Part-Exchange for free.