Auto marketplace HeyCar has introduced a new cashback scheme for customers to help dealers’ source used cars.
The ‘Trade Up’ initiative gives dealers £250 extra for trade-in’s that result in the vehicle being relisted on HeyCar during July. The incentive can be used as a strategy to help close the deal, protect margins and deliver lower acquisition costs for the month.
HeyCar says the initiative is to help customers realize the extra income they can get for providing dealers with new stock options at a time when sourcing stock is difficult for both new and used cars, which pushes up the value of cars offered as a trade-in.
HeyCar’s latest research suggests that its users plan to spend on average £13,000 ($18,000 U.S.) in addition to the value they get from a trade-in. It found that the most popular year of a car offered for trade-in is 2015, with users looking to upgrade to a car from 2017 or later.
Ford is the most popular brand for a trade-in on HeyCar followed by Vauxhall and then Volkswagen. Hatchbacks are the most popular car body style offered for a trade-in and SUV’s account for the most trade-in leads, with 67% of owners looking to swap to another SUV. Further insight shows that some customers remain loyal to brands with 46% of Mercedes trade-in leads from Mercedes owners, Land Rover (43%), Ford (37%) and VW (33%).
“At the moment, a lack of stock is proving a pain point for many (dealers), said HeyCar CCO Karen Hilton. That’s why we are determined to drive more part exchange sales their way.
“Our Trade Up initiative aims to show car-buyers that they can only get the best returns by part exchanging through dealers. And for dealers the £250 we’re offering towards part exchange for cars relisted on HeyCar will provide a welcome boost to their bottom line on every sale as well as helping to increase stock levels.”
As part of the initiative, customers who offer their car for trade-in are automatically entered into a draw to win a year’s supply of fuel.