Posts Tagged ‘car dealer news

08
Jun
11

What Consumers Love and Hate about Car Dealers

So what do customers love and hate about Car Dealers? CarGurus recently did a study of 1,000 dealership reviews posted by car shoppers over a 6 month span to find out just that. The results aren’t surprising and show that some basic things in customer service can really make a big difference to the consumer.

Top 5 Consumer Complaints:

  1. No Response: Dealers didn’t call or e-mail back
  2. Bait and Switch: car advertised is no longer available when car shopper gets to dealership, just sold
  3. Communications Disconnect: unable to get prompt accurate answers via email and inconsistent information between online staff and showroom staff
  4. Unsatisfactory Customer Service: Rude, arrogant or uninformed service from dealers and aggressive and arrogant attitudes from some dealers
  5. Time Wasted: Chasing answers from dealers, wasted time driving to the dealership just to find out the car is no longer available and having to wait at the dealership even when they have an appointment

Top 5 reasons consumers love dealers

  1. Friendly, Professional Service: Dealers that were sensitive to the consumers unique needs
  2. Fast Response: Quick response to online inquiries
  3. Accurate Answers: Consumers loved dealers that were willing to provide detailed answers via e-mail or phone rather than pushing for them to come in to the dealership for answers
  4. Clean Dealerships, Clean Car Interiors: Consumers love clean!
  5. Good Prices: Consumers love when they feel they got a competitive, fair price

To read full article on the CarGurus study in F&I Magazine, please click here.

How would your dealership stack up?

25
May
11

what type of advertising most influences car shoppers?

When it comes to finding out what exactly influences customers on what car they will buy or really just what car they should look into and find out more about, television advertising has the biggest influence according to TVB and Futures Company. TVB recently surveyed the impact of different forms of advertising and media and how they influence a customers purchasing decision in various product and service categories. In the automotive category, television advertising had the highest influence. This influence however doesn’t mean you’ll automatically close a deal because of a TV ad but what it does do is move the customer into the “Consideration” phase, as TVB and Futures Company puts it. The “Consideration” phase prompts them to do more research, particularly research online.

According to TVB, “Television is more important as a consumer influencer in the automotive category than the average of all 11 categories combined”. Overall since buying a vehicle is rarely an impulsive decision the number of times that a consumer sees an ad is of key importance as well.

To read the full article on NADAFrontPage.com, please click here. To find out more about TVB, please click here.

28
Apr
11

NABD conference & academy

This year, the National Alliance of Buy-Here, Pay-Here Dealers will hold the Buy-Here, Pay-Here Dealer Academy, May 16 & 17 before their annual conference which begins May 18. Both the academy and the conference will be held at the Venetian/Palazzo in Las Vegas. The Academy will focus on the key things needed to run successful in-house financing, both operationally and financially.  The combo of the academy followed by the conference should offer a great deal of important educational information to help dealers further sharpen their skills in the area of in-house financing. Ken Shilson, NABD president and founder said that they have assembled a group of the nations leading operators and experts who will share their knowledge. So whether you are new and looking to move into the Buy-Here, Pay-Here market or a seasoned professional you should come away with some useful and helpful information for your buy-here, pay-here dealership.

The overall focus of this year’s conference will be on the image of the buy-here, pay-here industry with a total of 30 speakers planned.

To read the full article in Used Car News, please click here.

20
Apr
11

the real reason customers leave dealerships

According to a study by CAR-Research XRM the biggest reason customers said they left the dealership wasn’t because of time constraints or having to discuss with a decision maker, 27% said it was because of issues with the sales people or sales management at the dealership. Customer issues with the sales staff ranged from rude and disrespectful to sales staff not being knowledgable. The next highest reason for customer leaving a dealership was because they were shopping around at 20%,  followed by price at 12%. 

To read the full article at F&I Magazine, please click here.

How many sales would you guess the average dealership has lost each month because customers have issue with the sales staff?

14
Apr
11

Nowcom Assists with Regulatory Compliance

Is your Dealership Red Flags Rule Compliant? Does it have to be? YES!

As of Jan. 1, 2011, it was official. All dealerships that do indirect lending have to be Red Flags Rule compliant according to the Federal Trade Commission (FTC), so the time to make your dealership compliant is now. You don’t want to be caught without a system in place and even more importantly you don’t want to leave your dealership open to identity theft or possible fraud. The question is, where to start?

Let’s begin with the basics. A Red Flag is any identity theft warning sign. Implementing a program to be Red Flags Rule compliant can be manageable and helpful for your dealership to prevent fraud, identity theft and, of course, be compliant. To identify and detect Red Flags and maintain Red Flags Rule compliance, Experian has designed a comprehensive and market leading fraud management platform, Precise ID.

To read the full Nowcom article at Dealer Business Journal, please click here.

12
Apr
11

automaker inventories affected

 

This month U.S. dealers will probably begin to see an effect on their car inventories, particularly small cars, due to the overall halt in production in Japan. It’s now been a month since the major earthquake and tsunami hit Japan, effecting global production and forcing the shutdown of assembly plants. Among the many, many obvious problems these natural disasters have caused, they have also had a dramatic effect on global auto production.  Some of the consequences of these shut downs; days in inventory numbers are down from last month and depending on the automaker down to as low as 22-day supply  (Kia cars) and 23-day supply (Ford Focus). Many other automakers, such as Toyota Motor Sales, American Honda and Ford Motors, are at less than 60-day supply which is considered ideal. As days in inventory numbers decline automakers such as Toyota are being proactive and prioritizing distribution by  managing inventories in hopes of ensuring that high-demand vehicles such as the Toyota Prius remain available.

Even with all the effects that the Japan earthquake and tsunami have had on global production most see the production disruption as short-term and not having a major effect in the long run. Both GM and AutoNation have kept their forecasts for the remainder of the year the same. On the other hand the consulting firm of IHS Automotive sees an American auto production shut down like the one seen in Japan auto production just weeks away. They see that non-Japanese automakers will have their own product shortages by summer. Overall it looks like automakers, both Japanese and non-Japanese will continue to see effects but for how long and how dramatic remains to be seen.

To read the entire article in Automotive News, please click here.

04
Apr
11

used car prices still moving up

Looks like they expect used car prices to continue to go up. Due to the impact that the Japan earthquake is having on auto production, it’s anticipated that used car prices will continue to rise, particularly on small used cars. Over the last couple of weeks there’s been an 11% increase in the wholesale prices of used compact cars, and midsize cars went up by 8.5%. NADA pricing service said that the price increase for small to medium cars will most likely continue to rise since they’re the closest substitutes for the Japanese new cars. As expected, gas prices have also played a role in the trade-in value of smaller cars, so combine that with the effect that the earthquake in Japan has had on auto production and we will most likely continue to see an increase. Toyota and Nissan said that they don’t anticipate being back up to full production in Japan until April 11.

To read the full article in USA Today, please click here.




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