A consumer survey conducted by the CitNOW Group found that more than half (57%) of car buyers would be more inclined to buy from a dealership that provided a part exchange offer before they visit the showroom. A more simple and transparent part exchange process can remove a common pain point for consumers and can increase their chances of converting a lead into a sale.
Part exchanging remains a popular option for car buyers looking to sell an existing vehicle, with one in five (21%) of those surveyed by CitNOW viewing it as the most hassle-free option. For 13% of respondents, the instant disposal of their old vehicle was a major reason to seek a part exchange deal, while 11% say they used their part exchange to leverage a discount on a new car.
However, the research highlights several challenges for retailers to overcome to make the part exchange appraisal process more effective and harmonious. Over three quarters (76%) of retailers say customers overvaluing their existing vehicle is the biggest problem with taking part exchanges. This friction is felt by car buyers too, with one in 10 (10%) admitting that negotiating a part exchange value for their existing car was the aspect they disliked most.
“Part exchanging a vehicle is still often seen as an ideal option for many car buyers, however our research highlights the importance of transparency and accuracy in the ￼process,” comments Alistair Horsburgh, Chief Revenue Officer at CitNOW Group. “To help meet this demand, we recently launched Tootle, an online part exchange appraisal ￼platform that enables retailers to complete a thorough appraisal of a part exchange vehicle and complete the offer via the online tool￼.
“This simple-to-use platform allows the customer to supply images, video and use a panel grader to effectively demonstrate the condition of the vehicle, helping dealers to accurately assess and provide a part exchange valuation. It could also prove useful at a time when customers could be more hesitant to visit retailers, following the introduction of the government’s ‘Plan B’ COVID restrictions, by removing unnecessary face to face contact during the initial evaluation process.”
With Tootle, customers can manage their vehicle part exchange through an online account where they can submit their current vehicle details and add their desired exchange value. Tootle uses independent data from industry experts cap hpi to automatically assess the customer’s own valuation, providing advice if their valuation exceeds the recommended estimate. While working with a pilot site, CitNOW found that the customer’s anticipated value was moved to within 6.5% of cap clean with the introduction of Tootle – a 15% improvement on typical expectations.
Horsburgh added: “The CitNOW Group is focused on creating a more seamless sales journey for both customers and retailers. Tootle can be used independently or through the integration with CitNOW Sales to allow customers to continue their digital journey directly from their video presentation page, right through to arranging a part exchange valuation and beyond. By making the process more transparent for both parties the customer is more inclined to visit the dealership and it eliminates the need for awkward negotiations later that could potentially jeopardise the sale.”
Further findings from CitNOW’s latest report, ‘The Ultimate Digital Customer Journey’, can be downloaded at www.citnow.com.