What IS a good CR, anyway?

October 29, 2024

Here’s an age-old question…What’s the standard for a “good” or “accurate” condition report (CR) on auction vehicles?


The answer? It’s rarely objective. “Beauty is in the eye of the beholder” and all that.


Sellers want the highest CR score possible, knowing a 4.7 Autograde pulls more $$ than a 2.8. Buyers, however, want 4.7 cars at 2.8 prices.


Consider Seller X, who sees their car graded a 3.2 due to a “previous repair”…work they know is solid. The car’s clean for its age (2014 with 96K miles), yet the grade doesn’t do it justice.


Seller X fears the low score will drive down bids.


Meanwhile, Buyer Y, looking for BHPH inventory, spots this 3.2 vehicle. The grade is low enough to get it affordably, yet the repair saves them the cost and hassle of repainting.


Buyer Y is pleased, thinking they’re getting a bargain.


This scenario is simplistic but common. Sellers feel their “nice” cars are undervalued, while buyers see low CRs as an opportunity. So here’s the big question…


Should CRs be “intelligent”…factoring in year, miles, and condition? Or stay strictly based on OEM specs, even when age and mileage play a role?


Auction companies are leaning into AI to “eliminate” human CRs, but even automated grading can be overly strict, undervaluing clean vehicles due to preset condition thresholds.


So, the question remains: What IS a good CR?


One company, DealerClub, has an innovative approach. Joe Neiman‘s new tech gives dealers a platform to showcase inventory with clear photos, accurate descriptions, and reputation-based sales.


Now, Seller X can list that 2014 model with high-quality images, without it being nitpicked over minor wear, “missing manuals,” or past repairs.


Buyer Y, meanwhile, gets transparency through images and a seller’s reputation…a big shift from today’s auction process. But those who remember paper Black Books may appreciate the return to simpler, reputation-driven commerce.


So, what do you think defines a good CR? Let us know in the comments.

Dane Hulse

President/Founder |  AAR