Auto Trader warned that nearly one in five trade-in deals during September could fail as a result of breakdowns in part-exchange negotiations between dealers and customers.
The warning comes as the online classified giant predicted it would generate 1.2 million used car valuations over the course of the 65 plate-change month and repeated its prediction that the new car market will hit a new September high of 450,000 registrations.
“September is gearing up to be another bumper plate-change month for retailers,” said Karolina Edwards-Smajda, Auto Trader’s product leader.
“But it is surprising that so many deals break down in the showroom, often as a consequence of difficulties with price negotiations. Unrealistic expectations about the value of a part-exchange are cited by retailers as one of the most common reasons for this failure.”
Edwards-Smajda confirmed that Auto Trader is developing an online tool aimed at providing customers with more accurate trade-in values.
“We are currently working on a product that could help buyers and sellers start a conversation on the same page. If we can help facilitate a dialogue on part exchange values earlier in the process, when buyers are seeking information online, then we could help both parties align before the visit to the showroom. That could significantly reduce the haggle-hassle factor on the forecourt and seal more deals.”
