The Used Vehicle Masterminds: 9 Hot Topics & Takeaways
Nine of the popular subjects covered during the exchange sessions at Digital Dealer are listed below:
1. Acquisition of used vehicles – Of course, everyone is aware that this is currently a very difficult task, with auction prices skyrocketing due to consumer demand. Dealers talked about a variety of methods for buying cars directly from people on the street, including using websites like caroffer.com and keeping an eye on well-known consumer sales platforms like eBay, Craigslist, Facebook Marketplace, and software solutions.
2. Dealers talked about their experiences using digital retailing technologies on their websites in a group discussion titled “Digital Retailing & Value Beyond Conversions.” The main lesson learned was that giving consumers a choice in how to finish an online transaction by offering digital shopping. Customers have more options when they feel in charge of the process, which will increase conversions overall.
3. – Dealers exchanged ideas on how to successfully leave their PMA and sell vehicles around the country. They talked about how to fill out the paperwork, who will deliver the vehicle to the customer, and, if necessary, how to figure out how much it will cost to transfer a far-off consumer. For instance, one dealer said that they calculated at $1 per mile, while others claimed that they had a transportation calculator online immediately on the vehicle’s VDP so that buyers could obtain independent transportation estimates. Dealers had a wide range of ideas and opinions, but the consensus was that they should make it simple for everyone, no matter where they live, to purchase a vehicle from them.
4. AdWords Campaigns that Produce Real ROI – There was a debate on the appropriateness of independents investing in AdWords. Everyone agreed that AdWords was a tool that they ought to all be using. Dealers were advised to focus on cost-per-sale rather than measures like conversion rate, cost-per-click, or cost-per-lead. Even more in-depth discussion was had regarding how to use AdWords to target low-funnel clients in order to increase their predictability of return on investment.
5. Website optimization was a big topic; having a website that isn’t packed with every kind of widget but rather prioritizes beauty and performance. Dealers spoke about the development of clear and user-friendly websites by market disruptors and leaders. Customers will have a simpler process as a result of the change, and dealers will be able to better monitor performance.
6. Fighting Disruptors: Disruptors used messages like “Car buying shouldn’t stink!” to give consumers what they wanted to hear. Customers who agreed that buying a car ought to be simpler reacted favorably to these advertisements. Customers’ emotions were used by disruptors, who said that buying a car ought to be simpler. Dealers talked about how winning at their own game is the best way to counter. Consumers will choose the dealership if they have the option of visiting a dealership 12 miles away where they can see, drive, and test drive vehicles, provided that everything else is equivalent between what the disrupters offer and what dealerships do. It is crucial to achieve this goal by making sure the consumer has a better experience and sharing your dealership’s narrative.
7. What Is and Isn’t Working in Marketing – Dealers talked about a variety of media, including Facebook, TikTok, radio, television, direct mail, and AdWords. It was agreed that each dealership’s market, budget, and willingness to invest in anything made a difference in terms of efficacy. However, some will still be more effective for some dealerships than others. This topic became widely discussed because there are so many possibilities.
8. Dealing with Lease Terminations – The discussion’s main point was that some captive OEMs forbid dealers from making money off the sale of a lease return. A dealer revealed that up to 170 buyouts occur at his business each month, costing him money because there are no sales to make up for the lost revenue. Dealerships are severely constrained by captive lenders, OEMs that forbid dealers from making any money, and customers who frequently choose to buy out their leases since there are no other options. They found this to be the most aggravating of all the topics discussed because no one had a solution.
9. Inventory management: The focus of this conversation was on raising turn rates and improving pricing in relation to the market. There was a great deal of discussion on how to flip automobiles more quickly and profitably.
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