Dealer Newsletter — February 2008
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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 yourself 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.
Here are some key tips to follow when responding to these leads:
- With your initial response be sure to provide the customer with answers to all of their questions
- Leave an open end to your response by including some questions of your own (i.e. Do you have a trade, which options are most important, etc)
- Remember that 40% of online leads will close after 90 days, although some can take up to a year to close
- Keep following up with customers with fresh information about promotions / why we are different / new arrivals/ new pre-owned vehicles that are on your lot
- Most importantly, you should always offer additional vehicle suggestions including pre-owned/certified options with in the first week of contact
Much of the same holds true when working with a customer in person:
- Again, be sure to provide the customer with answers to all of their questions
- Sit the customer in a vehicle and ask questions that will identify what they value most about the vehicle
- Walk the customer though your lot so that they have an idea of what else you have in your inventory
- Most importantly, you should always offer additional vehicle suggestions including pre-owned/certified options in not only the same model but other models as well that could meet their needs
Let's look at this from a customer's point of view. If you were looking to purchase a vehicle that costs $30,000.00 and someone were to give you a similar option that would cost you $20,000.00, you would be willing to at least take a look. This can work to your advantage, as no customer will object to an option that offers them a lower monthly payment - especially in today's economic market. Another factor to keep in mind is that many customers over-estimate their available credit and a pre-owned vehicle may be the better option for them.
Here are some examples of ways to present a pre-owned option to a new car customer lead:
- Follow up with pictures and descriptions of a similar pre-owned vehicle(s) available
- Use side-by-side comparisons for the New and Pre-owned options
- Include a link to your inventory list in your responses - This link can also be narrowed down to just the models the customer is asking about
- Describe the benefits that came along with purchasing a CPO vehicle from your dealership
- Once in the dealership, walk customers through your pre-owned inventory lot
In many cases, customers are unable to distinguish between new and used vehicles. Appearance can be a major factor in their final decision. Always be prepared with a secondary vehicle for a customer. Keep in mind that convenience is also important when gaining the customers attention. Using links and providing information directly to a customer make them more likely to follow through with the research and buy from you.
It is true that there is no "perfect way" to sell a vehicle. Each dealer will have their own strategy and preference as to how to approach customers and gain sales. However, by using some of these tips, you will find that you will be more successful in being able to convert not only new car customers, but different OEM customers to purchasing a certified pre-owned vehicle.
This article's author is Angelo Abboud, an eDealer Sales Consultant with Cobalt
*Research stats from Cobalt's 2005 Dealer eBusiness Study conducted with R.L. Polk & Co.
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