Dealers and VIN Checks

Good quality vehicle history reports, such as those from GoodCar, offer valuable information for the consumer and the dealerships selling the vehicle.

Used car dealership managers look at four important red flag items on the vehicle history report. The report helps to decide whether the vehicle is right for the dealership and can be resold for a profit after reconditioning and titling costs.

Salvage or junk titles, this line item is a biggie. A salvage title means the insurance company has deemed the vehicle a total loss after an accident and has little value. There are a lot of disadvantages to a salvage-titled vehicle; repairs may be done with sub-quality parts, and insurance companies refuse to insure the vehicle. A salvage-titled vehicle has poor resale value. Some states allow a salvage vehicle to be insured after a complete rebuild and inspection.

A junk title indicates the insurance company has determined the vehicle is scrap, not just a salvage title that could be repaired. The junk title means the vehicle is no longer roadworthy and is worthless.

A few states do not require vehicle inspections for a salvage title. Dealerships are keenly aware of each state’s titling obligations and are always looking for vehicles that have been through title washing. A title washing scam involves repairing a vehicle and altering the vehicle history report to the point that the vehicle is at least roadworthy. The vehicle is then taken to a state that does not require an inspection to obtain a title.

Trained used car managers keep an eye out for vehicle history reports describing “other damage” to the vehicle. “Other damage” may be considered the same as fine print on a contract. VIN check services report significant damage to a vehicle, and only the finest, such as GoodCar, dig deeper to find the true value of an automobile. As an example, a VIN check may reveal a car as flood-damaged, yet it does not indicate the vast hidden damages of this type of report. Dealerships are well aware of these types of vehicles and always steer clear.

Odometer readings in the history report seem to be the most innocent section of a vehicle’s history. However, the National Highway Traffic Safety Administration (NHSTA) estimates that nearly a half million vehicles are sold yearly with odometer fraud, costing consumers over $1 billion annually. Odometer fraud is altering or resetting the odometer to change the stated miles. Experienced used car managers notice the little things about a car or truck when taking the vehicle in on trade or purchasing at auction. Misaligned numbers, odometer not working, or new screws on the instrument cluster can point to fraud. Knowing what to look for on a vehicle maintenance history report, such as discrepancies in the maintenance timeline, is always a red flag.

Dealers who take full advantage of a vehicle history report find their consumers are more trusting of the personnel and the dealership. Above-board dealerships offer free reports for those consumers who are on the cusp of buying and need a nudge forward.

Transparency in any industry is the key to customer retention. One of the longest-running issues with a car dealership is the appearance of underhanded selling and financing. The internet has dynamically changed the dealership business model, and consumers have benefitted.

Dealerships are using massive amounts of consumer data to target and nurture customers who have budget constraints, specific needs, or money is no object. Forward-thinking dealerships are taking the mounds of available data to know when to contact a customer, deliver personalized messages, and align dealership marketing goals with customers’ lifestyles and purchasing goals.

Condition and Mileage

Quality vehicle history reports give the consumer a level of confidence rarely seen in the past. Dealerships who use this information wisely benefit by establishing trust and credibility with the consumer.

Emotional buyers who know the history of their dream vehicle will often pay substantially more, resulting in a satisfied customer. On price alone, consumers who purchase a vehicle are given another reason to make the transaction.

Placing a value on a used car involves several factors that consumers are aware of but rarely understand. Vehicle history reports give the consumer and the dealership every salient factor that may affect the value.

Mileage

Mileage is one of the most critical factors that affect value. Insurance companies point to a vehicle with 12,000 to 15,000 mile average as having “good miles.” In the past, 100,000 miles has been considered the cutoff point to determine a high mileage vehicle.

Advancements in automotive technology have created cars and trucks that endure far past the cutoff point. Dealerships look at a vehicle’s overall condition along with several national databases, such as KBB.com, to determine value.

For example, a vehicle with 150,000 miles on the odometer, driven on interstates and roads with no potholes; may have a longer life than a vehicle driven in torturous stop-and-go city traffic.

Every mile driven acts as a rough estimate of value. A five-year-old truck with 40,000 miles will be given a higher resale value than a two-year-old truck with 150,000 miles. However, a used car manager still knows that miles mean everything on a car.

Condition

Several factors influence a vehicle’s value, including mileage and, importantly, its condition. Depending on the severity, minor door dings and scratches will lower your vehicle’s value.

Dealerships value direct purchases and trade-ins according to the eventual resale value or auction price. Experienced used car managers always consider reconditioning and transportation costs before placing a value on the car or truck. Vehicles not meeting the dealership’s resale standard are usually sent to auction with only transportation costs deducted from the value.

Invariably, direct sellers or individuals looking to trade in overprice the vehicle, sometimes by a lot. The seller never considers minor damage, such as dings, scratches, and broken components. Before heading to the dealership, it is always wise to try and fix the damage before asking for the most money.

Vehicles missing essential components, like air-conditioning and power windows, will be priced much lower than comparable cars and trucks. Interiors and technology components add to the vehicle’s value in the long term.

Profitable dealerships learn how to look at a vehicle history report and know if the resale value is right for their used car lot.