All Things Used Cars: Trade-in Values

David Long and the All Things Used Cars community met to discuss trade-in values. When are they too much and how can dealers determine the right number for them? Participants shared helpful perspectives and we did our best to grab the main themes. 

Since no theoretical number can answer the question once and for all, the community spent time defining and deciding the method by which any dealership could answer this question for themselves with repeatable success. 

Build an understanding

There is no written formula for determining the best trade-in value in a given circumstance. It requires on-site information collection. 

1. Build an understanding of the meaningful metrics for the market. 
2. Work with indicators and data. Everything else is guessing. 
3. Remember, "All you see is all there is." Start looking, and more will be seen.
   
   

Include the whole team

Does the entire team operate with the same understanding? Are all the acronyms and definitions in place for the entire team to be aware of the plan and execute it at the highest level possible? 

1. Establish a fundamental core understanding for the entire store.
2. Ensure everyone on the team is aware of the plan. 
3. Collect feedback on the implementation of the plan from the team.
   
   

Consistently follow through

Over time data collected will grant a clearer understanding of what works best for a store in a specific market. By continuing to collect data and measure efforts and results, dealers can stay ahead of changes by possessing a real-time understanding of when trade-in values are shifting.

‍“Pick your lane and be the best in that lane.” -David Long

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