Writer: Neil Addley, JudgeService managing director

On the subject of trading-in time, most house owners say they may use the franchised supplier they plan to purchase their subsequent automobile from to get a part-exchange valuation however in observe many find yourself promoting to specialist shopping for platforms in the event that they discover a higher value on-line. 

Analysis for JudgeService’s forthcoming annual State of the Nation survey polled the views of 6,524 automobile consumers to establish client developments impacting the franchised supplier sector. 

The info revealed a steep rise within the proportion of automobile buying transactions with out part-exchanges, growing from 42% in Could 2018 to 58% in March 2023. 

When requested the place they’re most certainly to get part-exchange valuations from, practically two-thirds (62%) of householders cited the supplier they’re planning to purchase from, with solely 15% planning to make use of a specialist on-line automobile shopping for platform. 

Nevertheless, when requested the place they’d look on-line for a part-exchange worth practically half (46%) named webuyanycar, adopted by Auto Dealer (26%) and Motorway (14%).

Vendor web sites got here fourth on the listing with simply 13% of householders saying they’d go to one for a valuation. 

Our analysis reveals simply how huge an affect specialist on-line automobile shopping for companies are having on supplier part-exchange volumes, at a time when used automobiles are in brief provide.

Whereas it’s clear that the majority house owners need to use the franchised supplier they’re shopping for from to take their part-exchange, in a single handy transaction, they’re typically in actuality turning to on-line consumers as an alternative to get higher costs. 

This implies many sellers threat scoring personal targets by subconsciously undervaluing part-exchanges within the hope of boosting margin. It’s time to grasp the outdated motor commerce observe of attempting to ‘nick the PX’ has been negated by the emergence of digital disruptors with deep advertising and marketing pockets who’ve turn out to be family names, making them enticing alternate options to clients. 

When pricing part-exchanges, gross sales groups should be skilled to think about the very best outcomes for his or her clients, particularly relating to valuing automobiles that will be fascinating for his or her forecourts.

JudgeService additionally believes franchised sellers have alternatives to retain extra part-exchanges by making it simpler and extra handy for purchasers by providing on-line trade-in instruments and by actively advertising and marketing their shopping for companies by social and digital channels.  

The total JudgeService 2023 State of the Nation report will likely be printed later this month.