Understanding The Wholesale
Vehicle
Valuation Process.
The automobile business is one of America’s largest retail
industries. But in the wholesale sector, pricing can often be a
mystery. Different used car managers will come up with wildly
differing values for the same car. Auction prices bear little
relationship to trade-in values. And dealers sell vehicles to wholesalers at
prices far lower than they could get at bid lots.
At a recent NADA Dealer Academy session, twenty seasoned,
professional used car managers were asked to assess a vehicle and
determine its value as a trade. Each of them examined the
vehicle, wrote down his or her appraisal, and handed it to the
NADA trainer.
When the trainer recorded the appraisals, it turned out that
there was a $5,000 spread between the lowest and the highest
ones. Some of those managers were wrong – by thousands of
dollars.
No matter one’s experience, putting an accurate price on a
used car is a challenge without a little help. BuyBook
Technologies can help sort out the differences between various
vehical valuations, and provides dealers with tools that help eliminate
costly appraisal errors and maximize the value of inventory.
Trade-In Values
A vehicle’s trade-in value is assessed when a consumer
brings it into a dealership to trade for a replacement
vehicle. The vehicle might be dirty, dented, filled with
fast-food wrappers and running on bald tires. Or it may be perfectly clean with
a complete set of service records.
BuyBook’s Trade-In$urance value considers all of the
factors that can impact the price of a vehicle – its place in
our Desirability Index™, regional preferences, current market
conditions and more. Simply put, the Trade-In$urance price is the
Ultimate Trade-In Value.
"At-the-Door" Values
Selling vehicles to a wholesaler “at-the-door,” rarely
works to the dealer’s advantage. It’s the seller versus the
wholesaler, one on one, and typically, the seller wants to
sell the car more than the wholesaler needs to buy it.
It’s always good to have a second option.
Trade-In$urance, is there 24/7 to offer you extra assurance
that you are getting fair market value at the door.
Trade-In$urance from BuyBook Technologies is your virtual
used car assistant, always there to help you avoid making
expensive mistakes that can bury your used car department in
profit-proof vehicles.
Bid Lot Values
Bid lots have become a major factor in the wholesale
process for many dealers. Bid lots let you showcase your
wholesale inventory to dozens of wholesalers and independent
dealers, and you benefit by having multiple bids on each vehicle. But what
happens when a car worth $7,000 gets a bid for $3,500?
With Trade-In$urance, dealers can start every vehicle on
the bid lot with a guaranteed sold price. Having a
Trade-In$urance price on the windshield means the sale price
has to advance beyond the Ultimate Trade-In Value from the very first bid. No
more under-market bids.
Auction Values
Auctions are the heart of the wholesale industry. For
dealers selling, they provide secure storage, payment and
access to qualified buyers. For buyers, they provide
financing, a wide selection of vehicles, titles and dispute resolution.
Sellers incur substantial costs to sell at auction, such
as reconditioning, transportation, auction fees, and time
away from the dealership. These costs, combined with the
effect of open, live, competitive bidding by buyers, usually result in elevated
sales prices for vehicles. In fact, auction values are often
the highest prices in the wholesale market.
Trade-In$urance provides accurate, up to the minute
pricing intelligence that helps buyers and sellers maximize
their opportunities as auction.