Is ‘phygital’ trade-in the new sourcing eldorado ?
Despite the ongoing strong demand for new vehicles, sales are still falling with 12 percent fewer new vehicles sold in the past quarter. This trend is reflected in the continued increase in used vehicle prices (up by 21 per cent over the year). This means that the limitations of volume of used car supply are becoming a pressing issue for professionals in the automotive market.
The UV market is undergoing change
In recent years, the upturn in online used car sales has been one of the main changes in the automotive market. In fact, 90 percent of private car buyers start their purchases online. Did you know that the third most popular Google query on cars is ‘How to sell your car’? It’s a query that has grown by 21 per cent over the past year in Europe. Moreover, 65 percent of private individuals do all or part of the trade-in process for their used car online.
Several major used vehicle players have recently taken the step of initiating the trade-in of vehicles from private sellers online. For them, the online trade-in is becoming an important used vehicle source and is growing rapidly. The emergence of new online trade-in methods, in particular those making use of AI, now enables them to overcome the shortage and constraints of supply.
A ready-made solution for remote vehicle trade-ins
In response to these supply issues, Tchek, the leading AI-assisted vehicle inspection company in Europe, has launched its solution to ease cash and online vehicle trade-ins. Tchek provides an out-of-the-box tool dedicated to the digital or physical trade-in of vehicles.
The aim is to enable used car professionals to generate more qualified leads online – but also offer them a streamlined process, and therefore increase the number of trade-in offers and their volume of used vehicles. AI is helping to professionalize the trade-in process by providing reliable data and clear processes. This is a growing need, particularly with the need to turn in vehicles that are increasingly old
Remote trade in as a global source of business
Beyond the supply of used vehicles, online trade-in is a considerable source of business. Léa Chevry, co-founder and commercial director of Tchek, said: ‘It is essential to remember that 68 per cent of private individuals who sell their car to a professional buy another one from that same professional. This is an opportunity to buy and sell at the same time – all at very low costs, thanks to AI.
Artificial intelligence plays a key role in the ability to take back vehicles from private individuals. For example, 66 percent of trade-ins fail because of:
Lengthy online processes. Tchek’s AI-assisted professionals make accurate trade-in offers in less than 25 minutes. Even better, 90 percent of leads complete the process thanks to Tchek’s optimized path (only three to four minutes)
Lack of transparency in the purchase deal. Thanks to the repair cost estimation by Tchek’s AI, professionals are able to make open offers and justify the value of the trade-in.
The changes in the automotive market are therefore inevitably driving us to transform the way we buy and sell cars. At Tchek, we believe that technology is already playing a major role in the ‘phygitalisation’ of sourcing methods!
Want to know more about Tchek and our trade-in solution? We would be delighted to discuss your current procurement methods and future plans