Helping customers ‘see’ the equity they have in their vehicles is far better than using a standard trade tool that only shows market value.
Customers entering the market may be unaware of the shifts in trade value the chip shortage has created. They may be excited about upgrading their vehicle but historically have had to wait 36-48 months to have equity or be in a break-even position.
Allowing customers to know and continue shopping with their vehicle equity gets you more trade leads and more final sales. Between the pandemic and the chip shortage, customers have not kept up with the industry changes. Helping them understand they have equity in their trade gets them excited about upgrading their vehicle.
A tool that shows you market value and payoff/equity also puts the dealership in a much better position to pursue deals. Instead of guessing how much someone may owe on their vehicle, you know instantly. Many customers, 44% in 2020, have negative equity after four years of ownership. Negative equity happens in several ways, and some are very noticeable, like dents and scratches. Others are hidden, like rolling over negative equity from a previous trade-in.
When the dealer knows the equity of the trade, it makes working the deal a lot easier and usually much faster. The benefit of knowing the equity of the trade is that dealers Increase the ability to capture both the sale and trade. 2021 is all about having inventory to sell, and capturing trade-ins are critical to have the inventory you need.
Dealers need to give themselves every possible advantage to get quality trade leads that can increase their inventory. CreditIQ’s Trade Equity and Value tool help them increase their capture rate, closed sales, and inventory supply.
If you are interested in learning more about CreditIQ’s easy to install Trade Equity and Value website lead tool, please reach out to us at – sales@creditiq.com
