How Independent Car Dealers Can Stay Competitive



September 5, 2023



Across the country, many independent car dealers are experiencing strong momentum. Those who secured inventory early—before ongoing chip shortages disrupted production—are now thriving in a market where used vehicle demand has surged. In fact, used car prices rose by a record-breaking 10% in April, the largest monthly increase in over a decade, giving independents a rare opportunity to outperform franchise competitors.

But how long will this advantage last?

As factories return to normal production levels, the used vehicle market will inevitably rebalance. Inventory shortages will ease, pricing will normalize, and consumer buying behavior will shift again. This means now is the time for independent car dealers to strengthen their digital infrastructure, improve customer experience, and prepare for a more competitive environment.

Below are the top three technology investments independent car dealers should prioritize to stay ahead—regardless of market conditions.

Table of Contents

1. Digital Retailing Tools That Meet Modern Customer Expectations

Today’s customers want the flexibility to shop on their terms. While most buyers will not complete their entire purchase online, the majority want to start the process digitally. This makes digital retailing tools essential for independent car dealers looking to compete with franchise stores.

Why Digital Retailing Matters for Independent Car Dealers

A strong digital retailing setup allows customers to:

  • Browse inventory easily
  • Compare vehicles
  • Calculate monthly payments
  • Complete finance applications
  • Receive trade-in estimates
  • Reserve vehicles online

These features enhance professionalism and improve the overall brand perception of your dealership.

A poorly designed website harms trust. In 2025, customers will quickly leave a site that looks outdated, loads slowly, or lacks essential information. The best-performing independent car dealers invest in sleek, modern websites with clean navigation and interactive features.

What Leading Dealers Are Doing Right

Some of the most successful independent dealer websites now include:

  • High-resolution inventory photos
  • 360° virtual walkarounds
  • Payment calculators
  • Real-time financing pre-approvals
  • Search-by-budget tools

One of the most effective features allows customers to enter their monthly budget and instantly view every vehicle available within that range. Surprisingly, many franchise dealers still don’t offer this level of transparency—giving independents a competitive edge.

Does Transparency Reduce Profit? Absolutely Not

Many dealers fear that posting full pricing and offering digital retailing tools will reduce gross profit. The opposite is true.

When customers arrive at your dealership already informed, confident, and pre-qualified, you spend less time negotiating and more time closing. Digital transparency strengthens trust—and trust increases profit.

2. E-Contracting and Online Financing Tools to Speed Up the Buying Process

Today’s customers value speed, convenience, and clarity. Independent car dealers can dramatically improve the buying experience by incorporating online finance tools and e-contracting.

Why Financing Tools Make a Big Difference

Pre-approvals allow customers to:

  • Shop with confidence
  • Avoid embarrassment over affordability concerns
  • Choose vehicles that actually fit their budget
  • Complete key steps before visiting in person

For independent dealers, this means fewer unqualified leads and faster closings.

E-Contracting Simplifies the Sales Process

Compared to franchise dealers—whose incentive programs often create complicated paperwork—independent car dealers can adopt e-contracting with ease.

Benefits include:

  • Faster transactions
  • Fewer errors
  • Digital signatures
  • Reduced time spent in F&I
  • Higher customer satisfaction

Even with tightening lending standards, many lenders—including Ally Bank and Credit One—continue offering strong financing options for independent stores.

3. A CRM with Workflow Automation to Improve Lead Follow-Up

One of the biggest weaknesses among independent car dealers is lead management. Despite receiving twice as many leads as the average franchise dealer, many independents openly admit their follow-up process isn’t strong.

This is where a workflow-driven CRM becomes essential.

What Your CRM Should Offer

  • Automated follow-up reminders
  • Lead nurturing sequences
  • Email and SMS templates
  • Auto-responders for after-hours leads
  • Integrated customer communication tracking
  • Ability to send bulk email campaigns
  • Sales dashboards and reporting

A CRM that supports workflow automation ensures that no lead is ignored—and every opportunity is maximized.

Boost Engagement with Modern Communication Tools

Integrating apps into your CRM can elevate your sales process. For example, apps like Quickpage allow sales staff to create personalized video messages for customers, such as:

  • Virtual vehicle walkarounds
  • Feature demonstrations
  • Personalized follow-ups
  • Trade-in instructions

Videos are nearly impossible for customers to ignore. They build trust, increase transparency, and create stronger emotional connections—three factors that help independent car dealers convert more leads into buyers.

When all communications—texts, emails, videos, calls—are logged within the CRM, your team can see the full customer journey and engage more effectively.

Why Independent Car Dealers Must Act Now

The current market has helped independents generate impressive profits. But market conditions will shift. When inventory normalizes and demand cools, only the most prepared dealerships will continue to thrive.

Investing in the right digital tools ensures you can:

  • Maintain high engagement
  • Deliver superior customer experience
  • Improve lead conversion
  • Close deals faster
  • Strengthen your online brand
  • Stay competitive long-term

The dealerships that modernize now will be the ones leading the market tomorrow.

Final Thoughts

Independent car dealers have a unique opportunity to outperform franchise competitors—if they invest in customer-centered technology and digital efficiency. Digital retailing, financing tools, and CRM automation empower independents to build trust, attract more buyers, and deliver a seamless purchase experience.

As the market stabilizes, the dealers that embrace digital transformation will continue driving profits, customer loyalty, and long-term growth.






No leads were lost. reduced overhead.
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