Not long ago, car buyers walked into dealerships at a disadvantage. They didn’t know the invoice price. They couldn’t check incentives. And they had little idea what their trade-in was worth. Dealers had more information, which gave them more control.

Today, that edge is quickly disappearing. Shoppers can look up prices, compare markets, pull vehicle histories, and walk in with more knowledge than the salesperson. And the balance is shifting even further. With tools that read a car’s internal systems, drivers may now know more about their vehicle’s condition than the dealer does.

Mechanical data joins the fight

It started with price transparency. Now diagnostics are catching up. Plug-in devices let drivers read fault codes, understand warning lights, and even clear them. In other words, they can assess their own vehicle’s condition before ever setting foot in a dealership.

This changes everything. If a dealership can’t see what a consumer is hiding (or simply doesn’t check), they risk buying trouble. That lack of visibility can hurt profits and lead to surprise reconditioning issues.

That’s why smart dealers are starting to use industry-grade versions of tools being used by consumers.

Old cars, new problems

Used-car supply remains tight. Pandemic-related production cuts and tariffs slowed new inventory, so dealers are buying whatever they can find. Many are turning to Facebook, Craigslist and private sellers to stock their lots.

At the same time, the average vehicle on the road is now over 12 years old. And with that age comes a host of problems that aren’t always visible during a flashlight inspection or casual walkaround.

That’s where diagnostic tools come in. They give dealers a clearer picture of what they’re buying. Without them, they’re guessing. With them, they’re making smarter, more informed decisions.

What dealers couldn’t see

Traditionally, appraisals focused on what you could see: rust, dents, mileage. A Carfax report helped fill in the blanks. But what was going on inside the engine or transmission? That was anyone’s guess.

Now, with a simple plug-in scan, dealers can access trouble codes, error logs, and hidden issues. It reduces surprises, provides the health of the vehicle, and builds trust with the seller because the offer is grounded in real data.

The consumer tools on dealer lots

Interestingly, many of the same tools designed for everyday drivers are now popping up in dealerships. They’re being used to scan dozens of cars each month.

Why? Because they’re fast, inexpensive, and easy to use. These tools weren’t built for professionals—but professionals are embracing them anyway.

That tells you something about the growing demand for transparency.

However, retail scan tools often lack the ability to access and diagnose all OEM modules within a vehicle. While they offer a good starting point, commercial-grade devices provide significantly broader coverage across OEM systems. Dealers who invest in these tools gain deeper insights into a vehicle’s true condition, helping them identify issues earlier, avoid costly repairs that appear in these OEM modules, and make more informed valuation decisions at appraisal.

How these devices work

The process is simple. Plug into the OBD2 port. Connect via Bluetooth. Open the app. And run a scan, you’ll see trouble codes and health data all in real time.

The app also explains each trouble code in plain English for each issue. Some will also provide repairs to fix the trouble codes and offer short videos which explain what each code means and guide you through the next steps.

The dealer-focused devices will also provide guidance on the total cost to repair, breaking down labor and parts costs from industry-standard resources to provide a total cost of reconditioning the mechanical issues. This allows dealers to price trade-ins correctly.

Bigger than a scan tool

This trend isn’t just about check engine lights. Over time, this data could shape major decisions like when to fix, when to sell, even when to walk away from a deal.

With the right integrations, diagnostics could feed directly into appraisal tools, reconditioning systems, and resale platforms.

In that ecosystem, dealers and drivers work from the same playbook. That means fewer surprises, better decisions reducing risk, informed vehicle values, and a smoother trade-in process for everyone.

 

 

Cole Reiken is Managing Director of BlueDriver, a division of RepairOnDemand. He has over two decades of leadership in the automotive and technology sectors. For more information visit www.repairondemand.com or contact cole.reiken@repairondemand.com.