Remote Trade-ins?

[Zack_AF]

Curious if dealers have ever tried a remote trade-in process via video? If so, what kind of results did you see?

Instead of CarMax/Carvana giving the number and potentially talking it down during inspection, could dealers capture the same type of interest and conduct a remote appraisal? Better than hearing “have to see the car first… when can you come in?? or "fill out this form and we’ll get back with you.”

Another thought is If the store is a couple hours away or perhaps the weather isn't ideal, maybe being able to start the process from home would be welcomed?

Appreciate any feedback or experiences.

 

[Richie K]

Our process for "sight unseen" (SU) appraisals is to gather basic info about the vehicle - VIN, Miles, Condition, any know issues or damage, and sometimes pictures.
I would say that probably 90% of the time, the price we give is the same as when the vehicle arrives.
We are upfront about the possibility of our SU appraisal being +/- when the vehicle arrives, and we have great success with this process.

What is your current process @Zack_AF?

 

[Tallcool1]

We get basic information like @Richie K and have the customer send us pictures. We tell them that we don't need fancy pictures and that they don't need to wash and vacuum the car. We also tell that anything that can't be captured in a photo (windshield, scratches, etc) they can just tell us about "we will see it as soon as you bring it in anyway" and we will do the same for you on the vehicle you want to buy.

It works really good for us. We rarely change an appraisal.

 

[Zack_AF]

Appreciate the info, fellas! Sounds like you have a solid process working. Curious, would you know how many are buying from you vs just selling?

I’m not a dealership so I don’t have a process in place. Just have an idea that is sort of an offshoot of a live video product we have.
Contemplating if optimizing for a trade-in type experience would be useful and if dealers would even want/use something like this.

The thought here is sort of along the lines of we don’t know what we don’t know. I just wonder how many people bypass a dealership‘s trade-in processes in favor of CarMax/Carvana (whom are typically known to pay more) and how much of that market could be captured with a human connection.

Nobody is offering this, so what might customers think if this was an available option.

 

[Tallcool1]

Appreciate the info, fellas! Sounds like you have a solid process working. Curious, would you know how many are buying from you vs just selling?

I’m not a dealership so I don’t have a process in place. Just have an idea that is sort of an offshoot of a live video product we have.
Contemplating if optimizing for a trade-in type experience would be useful and if dealers would even want/use something like this.

The thought here is sort of along the lines of we don’t know what we don’t know. I just wonder how many people bypass a dealership‘s trade-in processes in favor of CarMax/Carvana (whom are typically known to pay more) and how much of that market could be captured with a human connection.

Nobody is offering this, so what might customers think if this was an available option.

I am really not sure what advice I can give, and know that I have thought about it a lot.

My store has been open for about 15 years. From day 1 we have worked to build a reputation as a dealership that would put a number on absolutely any vehicle that someone wants to sell. Even if the customer doesn't like our number, we give them a number.

We actually get some vehicle bought in situations where the dealer down the road is low balling on the trade so they sell it to us and go buy the vehicle from the guy down the street.

The kicker is that I am low volume compared to what most are. An app or video process might actually be more of a barrier than simplifying things. People are familiar with texting a cell phone picture. It is simple and something that they do all the time. Facetime is the same thing. It is so easy to just Facetime the customer and walk them through how to reverse the camera is we want to look at a trade in or purchase vehicle. Native Mobile features are just engrained into everyday life.

Now don't let my opinion hinder your outlook for a product. You may very well be onto something special. I am simply not a person that has the background or need for something like it so my input isn't worth much.

 

[Zack_AF]

I am really not sure what advice I can give, and know that I have thought about it a lot.

My store has been open for about 15 years. From day 1 we have worked to build a reputation as a dealership that would put a number on absolutely any vehicle that someone wants to sell. Even if the customer doesn't like our number, we give them a number.

We actually get some vehicle bought in situations where the dealer down the road is low balling on the trade so they sell it to us and go buy the vehicle from the guy down the street.

The kicker is that I am low volume compared to what most are. An app or video process might actually be more of a barrier than simplifying things. People are familiar with texting a cell phone picture. It is simple and something that they do all the time. Facetime is the same thing. It is so easy to just Facetime the customer and walk them through how to reverse the camera is we want to look at a trade in or purchase vehicle. Native Mobile features are just engrained into everyday life.

Now don't let my opinion hinder your outlook for a product. You may very well be onto something special. I am simply not a person that has the background or need for something like it so my input isn't worth much.

Appreciate your input!

Totally agree with making things easy which is part of the thought behind the convenience of meeting someone at they’re at. What we have is just like Facetime but unlike Facetime, it includes Androids and doesn't require any apps/downloads.

Just trying to think outside the box. I occasionally see LinkedIn posts talking about the need to acquire more cars but never seem to see a lot of solutions being presented.

If Carvana/CarMax have a simple process and they offer more $$, how can dealers create an advantage?
One thing I know they don’t do is utilize live video for trade-in appraisals and use that as a sales opportunity with capability for a walkaround.

 

[Tallcool1]

Appreciate your input!

Totally agree with making things easy which is part of the thought behind the convenience of meeting someone at they’re at. What we have is just like Facetime but unlike Facetime, it includes Androids and doesn't require any apps/downloads.

Just trying to think outside the box. I occasionally see LinkedIn posts talking about the need to acquire more cars but never seem to see a lot of solutions being presented.

If Carvana/CarMax have a simple process and they offer more $$, how can dealers create an advantage?
One thing I know they don’t do is utilize live video for trade-in appraisals and use that as a sales opportunity with capability for a walkaround.

So the person wanting to sell their vehicle would have to download an APP? Or does the APP reside on the dealership website so there would be no need for a Software Download?

 

[Zack_AF]

So the person wanting to sell their vehicle would have to download an APP? Or does the APP reside on the dealership website so there would be no need for a Software Download?

Sorry, should've been more clear here. Customer facing side would not need to download anything. The application would live on the dealer's website with apps on the dealers end to be able to answer the calls via mobile or desktop.

 

[jmaco3]

This post sparked my interest in looking for some sort of SaaS provider- stumbled across this. What are the odds something like this ever took off I wonder? Vehicle Inspection App - Ravin Inspect Mobile App | Ravin AI

 

[Zack_AF]

I've never heard of that app sounds but it sounds interesting for sure. I just wonder is there a market for people that would utilize something like this if they knew it existed or is it asking too much from a customer?

This reminds me of an idea my co-worker @Richard_Lloyd shared with me recently. It would require significantly more capital (unless a dealer already had one on-site) but the thought was to utilize a drive through car wash or partner with one and implement a UVeye machine. Using a membership would provide contact info along with the year, make, model of the vehicle. The only unknown would be mileage.

Occasionally offering a free car wash and/or messaging that a vehicle report/safety check is an added benefit of the membership could be useful ways of driving traffic. Maybe if the customer gives an accurate reading of their odometer, they're sent a vehicle history report along with a trade-in value if they were looking to trade-in or sell.