Trade -in percentage

Bart Wilson

What is the ideal trade-in percentage?  In other words, how many trades that you appraise do you actually take in on trade?

Derrick Woolfson

We aimed for a 60%+ trade-in. As for the actual percentage of trades we averaged between 50-53% We found that when it came to customers purchasing pre-owned vehicles it was harder to get their trade-ins. 

Tim Scoutelas

I've seen trade closing % vary from location to location & brand to brand. There are many factors that effect that number. First and foremost how you track it.

What I tell most of my dealers is, whatever your closing rate is today, what are you doing to get better?  Is there a solid process in place to engage the customer?  Do you hold your salespeople accountable to that process?  Do you work with your salespeople on how to explain your offer, handle objections?  It's not always about throwing BIG money at the trade.

Marc @ Autobahn Academy

I've seen dealers aim to up to 70%... which is really high in my opinion. You must be prepared to be aggressive and take trades in with high offers. 

@Derrick Great point: "We found that when it came to customers purchasing pre-owned vehicles it was harder to get their trade-ins."

It's true for every dealership out there. 

Hypothesis: I'm personally wondering if dealers have less incentive in taking in 5-10 years old cars as financing options are sometimes less attractive, thus low-balling the trade.

I'm just thinking out loud here.

Bart Wilson

I agree, Marc.  There is definitely a sweet spot here where you're taking in cars for the right dollar amount.  

Mark Rask

This is so important 

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