Facts

How to sell more used vehicles from your new car leads

A dealer should consider every internet lead to be a potential sale. Of all the leads sent in to a dealership over 56% will end up buying a vehicle. Whether your dealership is the one to close the deal is up to you. One way to improve on the close ratio is to not let your self be cornered into one specific vehicle. Although many customers contact a dealership with a specific vehicle in mind, almost 76% will end up purchasing a vehicle different from the one they were originally looking at. Researching a bit deeper into this we have found that over 42% of internet leads that become a sale will be sold a pre-owned vehicle.

The statistics quoted above should tell you one thing. If 42% of internet leads that become a sale will choose a pre-owned vehicle, it proves that most of your customers will at the very least be open-minded to other suggestions. Ideally, during the life of a lead, dealers should be following up with customers a number of times throughout the sales process.

I would only add that I believe 100% of the leads will close some day unless god forbid they die, right? All of them are going to purchase a vehicle sometime, wouldn't you agree?

Frank Davis

Interesting Facts:

• In 1999 it was measured that 23% of people researched and shopped on the Internet before actually visiting a dealership.
• In 2007 It was measured that 85% or more people researched and shopped the internet before visiting a dealership.
• 100% of the people that research or shop on the internet will most likely purchase a car "sometime".
• 63% of the people that shop on the internet will purchase a vehicle in the next 90 days.
• Capturing your online audience is vital to your continued success.
• Holding gross profit is a reality.
• Your competition is selling cars to online customers everyday.

3rd party leads:

Some of you like them, some of you hate them but still use them, and then there those dealers that have decided that 3rd party leads are not needed or too expensive.

It is too bad Dealers in general did not figure out 10 years ago that when you bought 3rd party leads we were paying someone to advertise right next to us on this "internet medium" we had our TV ads, newspaper ads, radio etc. we had web sites built (we just knew we should have a web site) now these "lead providers are plentiful", how many calls in one month do you get? And how many of you purchase these "scrubbed leads" I like that scrubbed, has a nice ring to it, hey I might pay more for one that is scrubbed real good. What I really like is when they say dealers are stressed, they will sell below invoice, the consumer reads this crap signs up for it then we buy the lead, of course we have an exclusive right? Ya right. That supplier only sells to us, well we do not have an agreement with the one they bought it from do we?

Poor Joe Shmoes info has been sold five times and everyone is trying to sell him a vehicle. What's funny is he will get his car below invoice because of all the competition; Unless Grant Cardones tapes are drilled into your head and you have found a way to sell the car and not the price. 3 out 5 dealerships will send price the other two will sell the appointment, most of the time the one that sells the appointment will sell the vehicle. Why?

Because Joe Shmoe wants his answer from the salesman that got him on the phone and set the appointment "TODAY" Price doesn't matter Sir I have that all taken care of for you.

What is not a 3rd party lead provider? Autotrader is not, cars.com is not unless you purchase new leads plus then they are. These mediums are advertising venues that advertise our vehicles at our price (if we price our cars and you should) they drive huge amounts of phone and floor traffic.

Try this: type into Yahoo search engine the name of your dealership such as Joe Shmoe ford. For the larger dealers in the bigger markets you will find that up to 5 or 6 3rd party lead providers are doing PPC campaigns right there on page one with Joe Shmoe Ford in the heading. Amazing that they are advertising our vehicles with our names under invoice etc right next to our own PPC campaigns. Who is laughing at who?

So do we need third party leads? Well I guess if you like more competition you do. If we do not pay someone else to advertise our own product for less than what we should be selling our product for then what could we be doing with those dollars to bring in more traffic to our dealership?

Rock on, sell a car and most importantly make some money.