This is the first of a few posts I plan to do on 2023 statistics from our data. Between analyzing dealers’ sold & service databases and how customers engage, there are some really cool metrics to share. We have completed the initial stuff and are now in the nitty-gritty phase of breaking into the deeper end of the pool. Stay tuned for more!
We saw hundreds of thousands of customers engage with offers to trade or sell their car to the dealership. The average equity of the customers who entered our app to play around was $9,387.
Most of the dealership’s service customers did not buy the car they’re servicing from that store (more on that later), and we are able to conquest those customers. 44.5% of those conquested service customers owed nothing on their trade. It is likely that 1/3rd of your service customers own their car outright.
The most traded model year was a 2020. The most acquired model year was also a 2020 model.
The average dealership database size contained 17,481 customers. Of those, 69.4% of that database met the minimum equity thresholds dealers configured in our system. On average, that was roughly a vehicle less than 10 years old with less than 100,000 miles and had at least -$800 of equity. The negative equity thresholds grew as the year progressed. I estimate we’re probably closer to an average equity threshold of -$1,500 right now. It varies significantly by manufacturers’ new car availability.
This post is on DealerRefresh as well, and you can go there to see what others are saying.
