Appraisal Landmines Costing Dealers $1,000's — And How To Defuse Them | Industry Spotlight
About this episode
Exploring the intricacies of used car acquisition, this episode features Terry Shishokli from Smith Auto Group and Frederick Grimm from Appraisal Pro. They discuss strategies for increasing the used-to-new car ratio, emphasizing the importance of trust and transparency in the appraisal process. A key highlight is the introduction of an OBD2 diagnostic tool that helps uncover hidden issues in vehicles, allowing dealers to make more informed buying decisions. The conversation also touches on the integration of technology in automotive practices and the evolving landscape of dealership operations.
Mercedes
"We have right now two Mercedes stores, three Volvo stores, and then a GM store, Ford store,..."
Mercedes is a well-known car brand that makes luxury cars and trucks. They are famous for their quality and advanced features.
Mercedes-Benz is a German automotive brand known for luxury vehicles, buses, and trucks. The brand is recognized for its high-quality engineering and innovative technology.
Volvo
"...three Volvo stores, and then a GM store, Ford store,..."
Volvo is a car brand from Sweden that is famous for making safe and reliable cars. They offer different types of vehicles, including SUVs and sedans.
Volvo is a Swedish automotive brand known for its focus on safety and durability in its vehicles. The brand produces a range of cars, including sedans, SUVs, and wagons.
Ford
"...and then a GM store, Ford store, Mazda store,..."
Ford is a well-known American car company that makes a variety of vehicles, including trucks and cars. They are famous for models like the Ford F-150 truck.
Ford is an American automotive brand known for its trucks, SUVs, and cars. The brand has a long history and is recognized for popular models like the Ford F-150 and Mustang.
Mazda
"...Ford store, Mazda store, CDGR, so."
Mazda is a Japanese car brand that makes different types of vehicles, including sedans and SUVs. They are known for their stylish designs and unique engine technology.
Mazda is a Japanese automotive brand known for its innovative designs and technology, particularly its rotary engines. The brand produces a range of vehicles, including sedans and SUVs.
new to used car ratio
"...and what's your new used mix across the group? Well, that was what I was gonna go with. So right now we're at 2.75 to one used to new."
The new to used car ratio shows how many new cars are sold compared to used cars. A ratio of 2.75 to 1 means that for every 2.75 used cars, one new car is sold.
The new to used car ratio indicates the proportion of new cars sold compared to used cars. A ratio of 2.75 to 1 means that for every 2.75 used cars sold, one new car is sold.
OBD port
"So it's a device that plugs into the OBD port and gives you that diagnostic information. What point in the process do you use it"
The OBD port is a plug-in point in your car where mechanics can connect a device to check for problems. It helps them understand what's wrong with the car by reading data from the car's computer.
The OBD port, or On-Board Diagnostics port, is a standardized interface in vehicles that allows external devices to connect and access diagnostic information from the vehicle's computer systems. This information can help identify issues with the vehicle's performance and emissions.
Mercedes-Benz C300
"I had one that was a C300 about four months ago when I was in a store appraising a car and it came up with turbo problems."
The Mercedes-Benz C300 is a fancy car that is part of the C-Class series. It's known for being comfortable and having nice features.
The Mercedes-Benz C300 is a luxury sedan that is part of the C-Class lineup, known for its blend of performance and comfort. It often features advanced technology and a stylish design.
turbo problems
"...and it came up with turbo problems. And, you know, luckily I had..."
Turbo problems happen when the turbocharger, which helps the engine get more power, has issues. This can make the car not run as well or lose power.
Turbo problems refer to issues that can arise with a vehicle's turbocharger, which is a component that forces more air into the engine to increase power. Common problems include boost leaks, wastegate failures, and oil supply issues.
codes
"is that it also shows you when the codes were last cleared. Ooh, so if somebody clears something before they come in to trade in that vehicle..."
Codes are messages that a car's computer creates when something is wrong. Mechanics use these codes to find out what needs to be fixed.
In automotive diagnostics, 'codes' refer to error codes generated by the vehicle's onboard computer when it detects a malfunction. These codes help technicians identify issues during repairs.
catalytic converter
"...that specific examples where catalytic converters were bad, one needed a canister, a charcoal canister."
A catalytic converter is a part of the car that helps clean the exhaust gases before they leave the vehicle. It makes the car less polluting and is important for passing emissions tests.
A catalytic converter is an essential component of a vehicle's exhaust system that reduces harmful emissions by converting toxic gases into less harmful substances. It plays a critical role in meeting environmental regulations and improving air quality.
charcoal canister
"...one needed a canister, a charcoal canister."
A charcoal canister is a small part in a car that helps keep fuel vapors from escaping into the air. It helps the car run cleaner and is part of the system that controls emissions.
A charcoal canister is a component of a vehicle's evaporative emissions control system. It captures fuel vapors from the fuel tank and prevents them from escaping into the atmosphere, thereby reducing emissions and improving fuel efficiency.
OBD2 unit
"...the sales manager will walk out with the OBD2 unit and set it on the desk and say, okay, so we scanned your vehicle..."
An OBD2 unit is a device that connects to your car to check for problems. It reads error codes that tell you if something is wrong with the engine or other systems in the car.
An OBD2 unit is a diagnostic tool used to read trouble codes from a vehicle's onboard diagnostics system. It helps mechanics and technicians identify issues with the vehicle's performance and emissions systems.
Fixed Automotive
"So we actually started selling on the consumer side. We started a company called Fixed Automotive and we made an OBD2 sensor that helped everyday drivers understand in plain English what problems their vehicle had..."
Fixed Automotive is a business that makes a device called an OBD2 sensor. This device helps car owners figure out what's wrong with their cars and how much it might cost to fix them.
Fixed Automotive is a company that developed an OBD2 sensor designed to help drivers understand their vehicle's issues in simple terms. This technology allows users to diagnose problems and estimate repair costs easily.
OBD2 sensor
"...we made an OBD2 sensor that helped everyday drivers understand in plain English what problems their vehicle had..."
An OBD2 sensor is a device that connects to your car to check for problems. It tells you what's wrong with your car and can help you understand how much it will cost to fix it.
An OBD2 sensor is a diagnostic tool that connects to a vehicle's onboard diagnostics system, allowing users to read error codes and monitor vehicle performance. It provides insights into potential issues and helps estimate repair costs.
OBD scanner
"...So an OBD scanner to get greater visibility into issues with a used car isn't new."
An OBD scanner is a device that connects to your car to check for problems. It reads codes from your car's computer that tell you if something is wrong.
An OBD scanner is a diagnostic tool used to read data from a vehicle's onboard diagnostic system. It helps identify issues by retrieving trouble codes and other information from the car's computer system.
OBD2 scanners
"...one thing to really highlight there is I'm sure everybody knows about OBD2 scanners. You can buy a cheap one off Amazon and it'll give you a code."
OBD2 scanners are devices that connect to your car to check for problems. They can tell you if something is wrong with the engine or other important parts.
OBD2 scanners are diagnostic tools used to read trouble codes from a vehicle's onboard diagnostics system. They help identify issues with the vehicle's performance and emissions systems.
OEM scan tool
"...you may have a really expensive OEM scan tool."
An OEM scan tool is a special device made by the car manufacturer to diagnose problems in their vehicles. It's usually more advanced and can do more than regular scanners, but it's also more expensive.
An OEM scan tool is a diagnostic device specifically designed by the original equipment manufacturer for their vehicles. These tools provide in-depth diagnostics and are often more expensive than generic scanners because they can access proprietary data.
aftermarket parts
"...I'm gonna use aftermarket parts. I'm gonna get as greedy."
Aftermarket parts are car parts made by different companies instead of the car's original maker. They can be cheaper and used to fix or improve your car.
Aftermarket parts are components made by companies other than the original manufacturer of the vehicle. They can be used for repairs or upgrades and often come at a lower cost compared to OEM (original equipment manufacturer) parts.
OE
"...Yeah, generally for parts for using OE, there's kind of a mixture that we're using..."
OE means the parts that are made to be exactly like the ones that were originally in the car. They help keep the car running well and are a safe choice for repairs.
OE stands for Original Equipment, similar to OEM, and refers to parts that are made to the same specifications as the original parts used in the vehicle. These parts are often used in repairs to maintain the vehicle's performance and reliability.
OEM parts
"...when you use OEM parts, when you use factory certified technicians, and you recon that car to the best standard possible."
OEM parts are the original parts that come with your car when it's made. They are made by the same company that built your car, so they fit perfectly and work well.
OEM stands for Original Equipment Manufacturer, referring to parts made by the vehicle's manufacturer. Using OEM parts ensures that the components are designed specifically for the vehicle, maintaining quality and compatibility.
factory certified technicians
"...when you use factory certified technicians, and you recon that car to the best standard possible."
Factory certified technicians are mechanics who have been trained by the car's manufacturer. They know a lot about how to fix and maintain your specific car model.
Factory certified technicians are mechanics who have received specialized training and certification from the vehicle manufacturer. This ensures they are knowledgeable about the specific models and can perform repairs and maintenance to the manufacturer's standards.
recon
"...and you recon that car to the best standard possible. And sometimes guys will wanna..."
Recon means fixing up a used car to make it look and work like new again. This can include cleaning, repairing, and checking everything to make sure it's safe and ready to drive.
Recon, short for reconditioning, refers to the process of restoring a used vehicle to a condition that meets or exceeds certain standards. This can involve repairs, cleaning, and ensuring all systems are functioning properly before sale.
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