Most customers still prefer using franchised dealers for part-exchange valuations over online platforms. according to recent research from JudgeService
The JudgeService 2024 State of the Nation report, which surveyed 5,789 customers, found that nearly two-thirds (63%) are likely to obtain a part-exchange valuation from the retailer they plan to purchase from, up from 62% last year.
Conversely, despite the growing presence of specialist online valuation services, only 14% of respondents said they were likely to use one, a slight decrease from 15% the previous year.
This preference for dealers is evident across all age groups, increasing from 58% among those under 25 to 66% for individuals over 75. The 46-55 age group remains the most inclined toward online services, but only accounts for 17% of users.
When asked which websites they would visit for part-exchange valuations, 40% of car owners named WeBuyAnyCar, down from 46% last year. Motorway saw a slight increase from 14% to 15%.
Neil Addley, managing director of JudgeService, commented: “Our data once again highlights the often-overlooked role of franchised dealers as the preferred source for part-exchange valuations, despite the buzz created by online car buying services.
“With the September plate-change marking a crucial period for part-exchanges, dealers must strive to make the process as straightforward as possible for both existing and new customers to secure fair valuations for their trade-ins, especially in the current subdued new car retail market.”
Addley added: “It’s evident from our findings that including valuations in the sales process is the preferred option for most owners. However, this alone isn’t sufficient. Dealerships must also actively use their customer databases from new and used car sales and aftersales to proactively offer valuation services.”
“Top-performing dealers understand the significance of providing part-exchanges to secure sales and replenish their used car stock. They also recognise how easily this business can shift to online competitors.”
The research is part of the annual JudgeService State of the Nation report, which will be published in September.
