As the automotive industry continues to evolve online, emphasis is now being placed on making websites more transactional. The debate over the pros and cons of digital retailing for many dealers is the result of the “one size fits all” products available that offer limited customization. Configurable workflows give you the platform and tool set … Read more
Customers always want to pay as little as possible, right? Not so fast my friend. Customers will often willingly pay more for a product even when they can get a similar (or identical) product elsewhere for less. While market conditions affect a significant portion of your business, the demands of customers have significantly shifted in … Read more
Leased vehicles accounted for about 25 percent of total vehicle sales in 2016 and 31 percent of retail sales. While leasing continues to play an important role in boosting production and sales, it will be challenging for the industry to manage the current level off-lease volumes without producing large residual losses, and affecting sales. The industry … Read more
There is no doubt that retail margins will continue to experience pressure as more dealers offer online transparency around the transactional elements of a purchase: vehicle sales prices, financing terms, conditional trade-in values, and F&I products and pricing. That means operational efficiency will play an increasingly important role in helping dealers achieve their desired PRV. … Read more
Amazon and other behemoth online services have taken a heavy toll on the country’s retailers. But dealers have been largely immune. That’s because state franchise laws largely restrict manufacturers from directly selling to customers. Having said that, there are signs of a few manufacturers shifting to a more European-style shopping process with “internet only” models … Read more
For most people, buying a car is still an emotional decision. The emergence of the numerous online car buying and building tools won’t change that. What is changing is how, when and where shoppers do their research and negotiation. Car buying going forward will be much more transactional in nature and less of an impulse … Read more
The average car buyer spends nearly 15 hours shopping for a vehicle, and most of that time – about 9 hours, is spent online. Dealership websites are the first dealer contacts for nearly half of vehicle shoppers, and almost 40 percent of all buyers went only to the dealership where they made their purchase. Also, … Read more
Estimates are that the pool of off-lease vehicles will grow from 3.6 million in 2017 to 4 million in 2018. This is nearly double the pool of off-lease vehicles in 2015 at 2.6 million. Although car leases can help drive sales of new cars, they also pose greater risks for the auto industry. Used vehicle prices … Read more
As online sales grow as a percentage of total retail car sales, creating a feeling of trust on your website will become increasingly important. Here’s why. When we trust an organization, we do business with them whenever and wherever it makes sense without questioning it. If we don’t trust an organization, we look for alternatives. If … Read more
Even though we now have the capacity, via the Internet, to research vehicle listings endlessly, it doesn’t mean digital marketers can assume that the more choices they offer, the more likely shoppers will be able to find just the right car. You can see evidence of the more-is-better approach in many car buying websites that … Read more
