Why Appraisal Matters in Every Dealership Department

In the fast-paced world of automotive retail, the vehicle appraisal process might seem like just another step in the sales cycle. But in reality, it’s one of the most crucial elements that touches nearly every profit center in the dealership, from Sales and Service to Parts, Body Shop, and Finance.

A well-trained and consistently executed appraisal process doesn’t just help you buy cars right — it builds trust, transparency, and profitability. Let’s break down why this matters and how your dealership can sharpen this cornerstone of success.

Before anything else, your team must truly understand the process, not just what to do, but why it matters.

Start by educating the customer, clearly explaining what you’re doing during the appraisal and how it benefits them. Conduct a walk-around together, much like a rental car inspection: note any damage, but also invite the customer to point out upgrades or maintenance that add value. This approach builds trust and shows that your dealership treats every vehicle, theirs and yours, with care and professionalism.

Most importantly, hold everyone accountable to never skip this step, because consistency is what ultimately builds culture.

Every appraisal should start with one key question: Do we need this vehicle?

• Will it go to retail or wholesale?
• Does it fit our buy plan, and do we have one that’s actively discussed?
• Use your data: Analyze Average Days to Sell (ADS), average reconditioning costs, average profit, and price drops.
• Don’t guess: Rely on sold market data, including Market Days Supply (MDS), to understand demand and trends.

The best appraisers start planning their exit strategy the moment they inspect the car.

• Use the inspection sheet to itemize reconditioning accurately, not with generic estimates.
• Assess the vehicles total market value using:
  • Vehicle history (CarFax, AutoCheck, Auction Reports)
  • Features, mileage, color, and trim
  • Market Intelligence tools like VINCUE
  • Utilize the MaxOffer integration to see if the customer has a value and on off brand vehicles that you may not need or want you could get a wholesale offer that makes sense to help you put a deal together.
• Identify your competition:
  • If it’s a late-model brand you carry, your certification advantage may give you an edge over independents.
  • For off-brand trades, know when a franchise dealer might hold more leverage than you do.

Presentation is everything. Tools like ACE (Accelerated Customer Experience) elevate your professionalism and increase close rates.

Use ACE Report to share:

• Market Data: Recently sold comparables, average days to sell, book values (KBB, JD Power), auction data.
• Value Reinforcements: Show similar vehicles currently for sale, pricing trends, and
  exclusive dealership value propositions.
• Condition Report: Walk through the customer’s inspection sheet and explain how condition impacts value.
• Supply and Demand: Share how many similar vehicles are available in the market and how quickly they move.

Transparency builds trust, and trust closes deals.

Even with a great process, follow-up is essential. Hold daily Save-a-Deal meetings with sales, acquisition, and upper management to ensure more eyes are on each opportunity and fewer mistakes slip through. If the situation changes, be sure to send an updated ACE report with a revised offer, timely communication demonstrates both commitment and professionalism.

There’s a reason the saying goes, “You make your money when you buy the car.” But, this process impacts far more than just your inventory and margins.

A solid appraisal process:

Most importantly, it sends a message to the customer: We know what we’re doing, and we value your time, car, and trust.

Your appraisal process isn’t just about putting a number on a trade. It’s about setting the tone for the customer’s entire experience and protecting your dealership’s profitability.

Train it. Track it. Talk about it, every single day.

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