What's a HOT Option worth?

[john.quinn]

@joe.pistell

Books list the bumps. I can remember the old orange NADA book listed to the trim, then listing the "Adds" for X option and it's value. NADA was for retail & loan value... other books (Black Book, Galves) listed wholesale, etc.

In later years, I can remember the merchandizing and trade-in software asking (check-boxes) about specific features that added or subtracted from a car's value.

 

[Rick Buffkin]

but, how to you put a retail value on a unit that has ____ option?

I think most ppl simply use the book values @joe.pistell in their trade appraisal tool and what ever KBB, NADA or whatever book their using says, they typically go with. At the end of the day though, you can add as many options as you want to but we both know, you have to keep align with what the market is doing. If the rest of the market isn't adding $$$$ to their pricing for unique options the vehicle has on it and you are, you're gonna price yourself out of the market even though your vehicle is actually priced correctly. This is why option codes are more important than ever now a days. Alot of folks have no idea the used car they're buying at a auction has any of the important hidden options on it like Dynamic Cruise, lane departure, Apple Car Play or any of these other options that add quite a bit of value from the customers perspective to the car. In alot of cases, even the sales reps don't know the car has these unique options on it either.

 

[jscole86]

Thnx for the option idea updates, but, how to you put a retail value on a unit that has ____ option? Do you have a process?

Are you asking from a shopper's perspective or from the wholesale buying / appraising perspective?

We use KBB for a "retail value" on our website. Just started using window stickers on our VDP to help build value on vehicles with specific options. We also started displaying dealer dot com's packages and options feature that uses factory codes to pull in some values. It's not the most accurate though despite us having most of our vehicles with factory build option codes.

 

[basemmr]

I'm looking over some UV options, I'm looking to freshen my Hot Options list. Anyone got a good list?

• Adaptive Cruise Control
• Alloy Wheels
• Apple CarPlay/Android Auto
• Automatic Emergency Braking
• Backup Camera
• Blind Spot Monitor
• Bluetooth
• Brake Assist
• Heated Seats
• Heated Steering Wheel
• HomeLink
• Keyless Start
• LED Headlights
• Lane Departure Warning
• Leather Seats
• Memory Seat
• Navigation System
• Premium Sound System
• Rear Seat Entertainment
• Remote Start
• Stability Control
• Sunroof/Moonroof
• Third Row Seating
• Tow Hitch
• USB Port

Honestly MSRP is direclty related to the retail price of the vehicle in regards to when it's most relevant & when options have their largest impact on retail price. The cheaper the retail price (MSRP then becomes irrelevant) the less optional equipment will dictate price. It's a "more bang for your buck" type situation where you pass the benefits onto your customer.