Trade in Appraisals. Who does them?

Lauren Moses
Does your dealership have set appraisers for trade ins? Are all sales staff trained to do appraisals? Or do you have another way? Let me hear how y'all do it.
Chris Pyle
We have 3 people that do the actual appraisals. Our new and used car departments are a few miles apart so we do things a little differently. We bought a 90,000 square foot roller rink for our used cars (looks pretty awesome actually) and our used car Manager works down there. He also appraises all the trades on the used car deals. My partner and I do all the appraisals up here for the new car department, since we sit in the same big office we just take turns. You guys having a battle over trade values or something?
Lauren Moses
No. Just curious. Our owner was the only one who would do ours until we got a new sales rep that has been doing it for years. He has been doing them and hitting pretty close to what our owner is thinking. Our owners brother also owns an auction down the road so he is our back up if the owner and our other is out.
Lauren Moses
Have you ever heard of a dealership allowing all sales reps to do their own appraisals? I can't remember where I heard it but it just seems like you would leave yourself up for so many money issues.
Chris Pyle
Exactly! How comfortable with someone would you need to be before handing over a blank checkbook to your own personal checking account with a few million in it? Mistakes can cost you thousands per appraisal when you overpay for something and will cost you even more if you don't know the correct value and end up losing the deal. Multiply that by a a few thousand appraisals per year and there's a tremendous opportunity with equally high risk. We use various KPI's, look to book metrics, plus regular trade-in save a deal trade meetings to make sure we aren't losing deals and or money during any part of the process. Ask to watch the owner or the new guy do an appraisal the next time you see them walking outside and watch all the little things they do to help find out what they have in front of them. Personally, it's one of my favorite parts of the job ; )
Lauren Moses
Chris, Personally I would not want the responsibility that goes along with it. For the exact reasons you just said. Our owner and the new guy are both very good.

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