MAX My Trade leads to higher profits, improved CSI, better close rates
Chicago, IL — MAX Digital, the dealer-first digital retail software provider for the automotive industry, has launched MAX My Trade, a guided experience that improves the trade-in process for dealership teams and customers.
Typically conducted on iPad, the customer and salesperson walk around the vehicle appraising the vehicle together. With the walkaround app, the customer and salesperson choose a mutually agreed upon rating on a 10-point scale for different aspects of the car, such as interior condition, brakes, and tires.
After the walkaround evaluation, a market-based appraisal report will provide a fair market price combining the customer’s vehicle condition rating score with top book values of third-party validation sites like Kelley Blue Book and NADA. Customer ratings naturally drive lower valuations creating a positive environment for under-allowance. The final trade offer is approved by the sales manager, so the dealership retains control.
“When you get customers involved in the appraisal process, they feel more in control, understand the fair value of their vehicle, and overall feel a lot better about the sales process,” said MAX Digital Executive Vice President, Mike Cavanaugh. “Our dealer customers who have beta-tested MAX My Trade have seen this firsthand with an average 47% increase in front-end gross profits and improved CSI.”
MAX My Trade also includes an at-a-glance profitability reporting tool, which provides dealerships a comparison of appraisals submitted both with and without the tool. Dealers can easily monitor sales, team usage and results to uncover opportunities to further grow profits.
“When we get the customer interacting in the trade, all the armor comes off. They feel very powerful that they are actually appraising the vehicle themselves,” said Brad DeSelms, Sales Director for Fremont Management Co. “The more you involve the customer in the trade-in process, the more they see the logic in how you price the car and the more money you make.”
“One of the immediate benefits is the involvement of the customer in the appraisal process. That involvement is translating into a 5% higher closing rate,” says Lee Porter, Used Car Manager at Vancouver Toyota. “The change has also reduced the time needed to complete the sales process, resulting in our CSI increasing to 96.74%.”