Dealers Fight Back: New Tech Aims to Win the Used Car Appraisal War

DALLAS, TX – January 16, 2026 – As the automotive retail landscape braces for the upcoming NADA Show 2026 in Las Vegas, a Dallas-based technology firm is preparing to arm traditional dealerships for a battle they have been steadily losing. TraXtion is set to exhibit a suite of diagnostic tools designed to level the playing field against digital-first giants like CarMax and Carvana, which have reshaped consumer expectations with instant, remote vehicle appraisals.

For years, dealers have struggled to compete with the convenience offered by these online platforms. While customers can get a preliminary offer for their trade-in from their couch in minutes, many traditional dealerships have remained hesitant, demanding an in-person inspection before committing to a number. This reluctance is rooted in a significant financial risk: the “expensive unknowns” of hidden body damage and worn tires, which can decimate the profit margin on a used vehicle.

TraXtion’s answer, to be showcased at booth 6018N, comes in the form of two key innovations: DamageSpeX and TreadSpeX. The company asserts that these technologies can empower dealers to make firm, data-backed valuations remotely, neutralizing the very risks that have held them back.

The Digital Onslaught and the Dealer's Dilemma

The challenge facing franchise dealers is multifaceted. On one front, they face intense competition for quality used-car inventory, a problem exacerbated by consumers holding onto vehicles longer and a decrease in lease returns. This scarcity often forces them into wholesale auctions where margins are razor-thin. On another front, they are grappling with a crisis of consumer trust and evolving expectations.

Digital retailers have won market share not just on price, but on process. By offering a streamlined, transparent, and convenient online appraisal, they have set a new standard. In contrast, the traditional trade-in process can feel opaque and confrontational to consumers who arrive at the dealership armed with online research, only to receive an offer they perceive as unfair.

This friction is often born from the dealership's own internal challenges. Appraisals can be inconsistent, varying wildly based on the skill and diligence of the appraiser. More critically, the fear of missing costly damage—subtle bodywork, deep scratches, or critical tire and alignment issues—forces a conservative valuation. According to industry data, unexpected reconditioning costs are a primary driver of lost gross profit, with average recon bills climbing and vehicles spending more time in the shop instead of on the front line.

“Dealers are losing that battle because they are fighting with one hand tied behind their back,” said Brad Kokesh, President and COO of TraXtion, in a recent announcement. “CarMax and Carvana are winning on convenience because they are willing to give an initial number. Dealers hesitate because tires and body damage are expensive unknowns that can ruin a trade-in's margin. We will be at NADA to show dealers that they don't have to guess anymore.”

Arming the Service Lane with AI and Lasers

TraXtion’s strategy hinges on transforming the dealership’s service lane into an inventory acquisition powerhouse. Instead of waiting for customers to visit the showroom for an appraisal, the technology is designed to be deployed where the dealership has a captive audience of vehicle owners.

TreadSpeX utilizes a drive-over platform equipped with high-precision lasers. As a vehicle passes over it, the system automatically scans the tires, measuring tread depth across the entire surface and identifying potential alignment issues from uneven wear patterns. This process, which takes only seconds, replaces manual, often inaccurate, single-point measurements. The system generates an easy-to-understand, color-coded report that can be instantly shared with the customer, providing transparent evidence of tire condition.

Complementing this is DamageSpeX, an AI-powered imaging system that scans the vehicle’s body. Using advanced computer vision, it detects and documents dents, dings, and scratches with pixel-level precision. This creates an objective, digital record of the vehicle's cosmetic condition, removing the subjectivity and potential for human error inherent in a manual walk-around inspection.

The combined data from these systems provides a comprehensive and verifiable condition report. It quantifies the two largest variables in reconditioning costs, allowing the dealership to calculate a precise trade-in value with confidence. The technology effectively creates a digital fingerprint of the vehicle's wear and tear, providing the concrete evidence needed to stand behind a competitive remote offer.

A New Strategy for Inventory and Trust

The implications of this technology extend beyond simply improving appraisal accuracy. It represents a fundamental shift in strategy for how dealers source inventory and interact with customers. By integrating these tools into the service drive, dealers can proactively make purchase offers on the thousands of vehicles they service each year—a vast, untapped source of desirable, local, one-owner inventory.

This approach allows dealers to make an offer to a customer who may not have even been considering a trade-in. Armed with a detailed report, the service advisor or a dedicated acquisition manager can present a firm, fair market offer, explaining precisely how the value was determined. This level of transparency is a powerful tool for building trust and countering the consumer skepticism that often plagues the trade-in process.

Furthermore, it enables dealers to finally compete on the digital playing field. A customer can initiate an appraisal online, drive through a designated inspection lane at their convenience, and receive a firm, dealer-backed offer within minutes, all without the pressure of a showroom visit. This hybrid “click-and-brick” model blends digital convenience with the trustworthiness of a local, physical dealership.

A Vision Forged in Industry Experience

Guiding TraXtion's strategic push is Brad Kokesh, a veteran with over two decades of experience spanning dealership leadership roles and executive positions at automotive software titans like Dealertrack, Cox Automotive, and DealerSocket. His career has provided him with a “full diagnostic viewpoint” of the industry's pain points, from inventory management and sales operations to the intricacies of fixed-ops technology.

Kokesh’s background, particularly his work in maximizing dealership profitability through data and AI at DealerSocket, informs his mission to close the trust gap between dealers and consumers. His leadership underscores a deep understanding that technology is not just about efficiency, but about enabling better business practices.

As the industry converges on Las Vegas for NADA Show 2026—an event where AI and digital retailing are set to be dominant themes—the solutions offered by TraXtion are poised to resonate deeply. For dealerships seeking to not only survive but thrive in a rapidly evolving market, the ability to fight back in the appraisal war with data and transparency may be the most critical innovation of all.