The automotive retail market is undergoing a massive shift. New-vehicle sales are falling, weighed down by new tariffs, high interest rates, and a slowing economy.

As a result, consumer demand has shifted sharply, driving an increase in used-vehicle sales. However, while the demand for pre-owned inventory is surging, acquiring vehicles has never been more competitive, with industry disruptors like CarMax and Carvana changing consumer expectations.

They are winning the acquisition battle by delivering immediate, transparent appraisal numbers remotely. Meanwhile, traditional dealers are frequently losing these important transactions by clinging to the old school bring-it-to-the-store model.

To truly compete with CarMax and Carvana, dealerships must start thinking outside the physical limits of their lots. Consumers favor convenience and quickness, and remote estimates are rapidly becoming a baseline requirement rather than an optional perk. The future of inventory acquisition lies in moving the process directly into the customer’s daily path.

Examine the concept of Remote Appraisal Pods, and deploying automated or semi-automated appraisal stations and meeting customers where they already are, in busy, everyday areas, such as shopping center parking lots.

These pods allow consumers to get their vehicles evaluated while they run errands, removing the intimidation factor of visiting a dealership while steadily feeding your local inventory pipeline.

The hesitation from traditional dealers is entirely understandable. Without a physical inspection, many are worried about protecting margins from expensive, unseen variables like bald tires, a slipping transmission, or hidden body damage. Also, if your dealership refuses to provide an upfront number, the customer will simply navigate to a competitor who will. The must see the car first and the in-person strategy is failing because it introduces friction exactly where the modern customer expects an effortless flow.

Closing the transparency gap without sacrificing profitability requires a modernized approach to risk. Dealers can no longer rely solely on the traditional lot walkaround. Instead, they must use interactive digital appraisal tools, such as those that measure tire tread depth and provide corner-panel views, and create condition-tiered estimates so dealers can offer instant gratification with an estimate.

This strategy satisfies the consumer’s expectation for transparency while protecting the dealer against the physical realities of the vehicle once the keys are handed over.

Ultimately, succeeding in this new macroeconomic environment requires a full diagnostic viewpoint. Dealerships must utilize data to create a unified view of the vehicle, including tracking its journey from the exact moment of remote acquisition through the reconditioning bays and all the way to the front line. Modernizing your appraisal process to meet customers where they are will help your store manage reconditioning risks, build customer confidence, and secure your share of the booming used-car market. Now is the time to invest in remote appraisal tools and digital processes to stay ahead of industry disruptors and position your dealership toward long-lasting success.

Brad Kokesh is the president and CEO of TraXtion. He will be discussing the need for remote appraising at the Used Car Industry Summit in Miami, which runs April 13-15.  His session is at 4 pm (ET) on April 14.