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If true, that is a terrible move in my opinion. So many dealers are starting to use a trade-in tool like ICO as part of their in-store processes when selling a car and lower numbers in ICO help close deals. Having a lower number (as an Instant Cash Offer) was a great way to get a customer to take first pencil in a shortened road-to-the-sale like this:

1. Meet, Greet, License Scan (all in one smooth flow that ends at the kiosk)
2. Schedule Demo Drive (on your kiosk)
3. Plug-in Trade Info (on your kiosk)
4. Demo Drive
5. Contract Presentation

During Step 3 you show the customer a lower range than what they feel their car is worth, but you move them quickly to the waiting vehicle for the Demo Drive. During Step 4 your desk is penciling the deal and evaluating the trade.

If you can give them a fair number in Step 5 (one that shows their trade at the high end of ICO or even above it, and your vehicle priced as it was online) they take the number. Deal done in minutes.

By showing consumers a different range for Trade versus Buy on their trade vehicles, dealers will either lose deals or lose gross (or both).