5 Ways To Utilize Condition Reports When Buying & Selling Inventory

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Kathy Ward sourcing non-auction purchases

Kathy Ward using Condition ReportsEven as the automotive industry moves forward in an increasingly changing world, some independent dealers still feel hesitant when buying a vehicle online. Condition reports can help alleviate this problem by providing dealers with a comprehensive overview into the state and shape of a vehicle. Here are the top five ways condition reports can be used by dealers when buying and selling inventory:

  1. Have the upper hand at the auction – You’re significantly increasing the chances of your inventory selling at auction when you include a condition report. Vehicle listings with condition reports sell up to three times more than listings without them. Dealers know that condition reports are accurate and feel more confident when they purchase a vehicle with one, so you can set your inventory apart from the competition’s by including one with your online auction listings.
  2. Solidify your grade with pricing – Condition reports are a great way to make sure the grade of your vehicle is in alignment with your pricing. Since the NAAA has established a set of guidelines regarding how vehicles are graded, you can feel confident that you’re pricing your inventory fairly and can use the grading scale as a reference point if a buyer questions your pricing.
  3. Leverage photos provided with Condition Reports – One of the most valuable tools included with condition reports are the photos that are provided with them. While details about the frame and tire tread on a report are important, buyers feel more confident after seeing enhanced vehicle images and undercarriage videos of the inventory they’re interested in purchasing.
  4. Use as a Negotiation Tool – When you’re looking to purchase a vehicle, you can use a condition report to help you negotiate the price. For example, after reviewing a report if you see that you’ll need to do some body work and maintenance before selling the vehicle at your dealership, you can use this information as a bargaining tool to help lower the price.
  5. Make More Informed Buying Decisions Online – When you’re looking to purchase inventory online, choosing vehicles with a condition report is going to help ensure that the inventory is of a higher quality than vehicles that don’t include one. No matter how good a vehicle looks when it’s rolling down the auction lane, it can turn out to be a total lemon. Fortunately, condition reports lower this risk and can help you to make smarter buying decisions.

Even if you decide to purchase inventory in-person, condition reports are still a reliable tool you can use to ensure you feel confident about the vehicle you’re purchasing. So, you can still kick the tires, while also being reassured by the information provided in your report.