Thursday, May 24, 2012
Tuesday, May 22, 2012
Toyota's Camry and Prius Top Shopping Lists in April
The article below is from the online magazine "F & I Showroom". What we know as an industry for the independent dealer is, today's new car trend is tomorrow's Pre-owned trend. I hope by sharing this article, it helps many of you stay ahead of the trend...
May 22, 2012
- F&I Showroom
NASHVILLE, Tenn. — Ford ranked highest in Dataium’s Automotive Shopper Intensity index, while Toyota’s Camry and Prius models rank highest among all new vehicles. The index, which predicts new-vehicle retail sales, also showed that sales in April increased nearly 10 percent from 2011.
The index also showed that sales were up 10 percent from last year, while the annual sales rate paced a 5 percent higher clip than April 2011. But the company did note the drag luxury vehicle sales on the annual sales rate.
“Although the overall SAAR (seasonally adjusted annual rate) number was almost 5 percent higher than April 2011 and we expect to see continued growth over the broader market, luxury brands continue to drag the retail SAAR down about 2 percent from the previous month,” read the report. For the first time this year, Ford received the highest ASI monthly ranking of all manufacturers, with leads for the domestic automaker more than doubling from the previous month. Japanese car maker Toyota dropped one ranking to the No. 2 spot, while Chevrolet remained in the third position for the second month in a row.
“Although April brought a 20 percent monthly drop in both searches and visitors for Chevrolet, their leads jumped significantly from March, suggesting stronger sales volumes for the brand in the upcoming weeks,” the report stated. Looking at new-vehicle models, Toyota's winning streak continued for the third straight month with both the Toyota Camry and the Toyota Prius receiving the highest rankings.
“A combination of Toyota's recent marketing campaigns which include low interest financing, and the fuel efficiency of both models have helped keep the brand’s momentum and consumer interest high,” noted Eric Brown, CEO of Dataium. This should positively impact sales for the brand as we move into the peak summer selling months."
Despite record retail sales in April, the index showed the Nissan Rogue having the most dramatic ASI change of all new vehicles, declining by 9 percent from March. In addition to the Rogue, the Hyundai Sonata also had significant ASI declines while the Chevrolet Camaro’s ASI score increased the most from the previous month.
Through proprietary data collection and analytics, Dataium aggregates and measures billions of auto shopper behavioral events from a database of more than 100 million active auto shoppers across a network of diverse automotive websites. For more information, click here.
May 22, 2012
- F&I Showroom
NASHVILLE, Tenn. — Ford ranked highest in Dataium’s Automotive Shopper Intensity index, while Toyota’s Camry and Prius models rank highest among all new vehicles. The index, which predicts new-vehicle retail sales, also showed that sales in April increased nearly 10 percent from 2011.
The index also showed that sales were up 10 percent from last year, while the annual sales rate paced a 5 percent higher clip than April 2011. But the company did note the drag luxury vehicle sales on the annual sales rate.
“Although the overall SAAR (seasonally adjusted annual rate) number was almost 5 percent higher than April 2011 and we expect to see continued growth over the broader market, luxury brands continue to drag the retail SAAR down about 2 percent from the previous month,” read the report. For the first time this year, Ford received the highest ASI monthly ranking of all manufacturers, with leads for the domestic automaker more than doubling from the previous month. Japanese car maker Toyota dropped one ranking to the No. 2 spot, while Chevrolet remained in the third position for the second month in a row.
“Although April brought a 20 percent monthly drop in both searches and visitors for Chevrolet, their leads jumped significantly from March, suggesting stronger sales volumes for the brand in the upcoming weeks,” the report stated. Looking at new-vehicle models, Toyota's winning streak continued for the third straight month with both the Toyota Camry and the Toyota Prius receiving the highest rankings.
“A combination of Toyota's recent marketing campaigns which include low interest financing, and the fuel efficiency of both models have helped keep the brand’s momentum and consumer interest high,” noted Eric Brown, CEO of Dataium. This should positively impact sales for the brand as we move into the peak summer selling months."
Despite record retail sales in April, the index showed the Nissan Rogue having the most dramatic ASI change of all new vehicles, declining by 9 percent from March. In addition to the Rogue, the Hyundai Sonata also had significant ASI declines while the Chevrolet Camaro’s ASI score increased the most from the previous month.
Through proprietary data collection and analytics, Dataium aggregates and measures billions of auto shopper behavioral events from a database of more than 100 million active auto shoppers across a network of diverse automotive websites. For more information, click here.
Monday, May 21, 2012
Imports Head of Class on Top Cars for College Grads List
Imports Head of Class on Top Cars for College Grads List
May 21, 2012 | LOS ANGELES
By Auto Remarketing Staff
Automotive ranking and comparison website Total Car Score has issued its list of the Top Ten Cars for College Graduates, based on safety, fuel efficiency, comfort, performance and cost.
At the head of the class are three Volkswagen models, two Mazda models and representatives from five additional automakers.
“College grads are looking to make an investment in a car that is reliable and cost-conscious,” said Karl Brauer, editor-in-chief of Total Car Score. “We compiled a list of the top-rated cars that offer the best quality while being very affordable.”
The Total Car Score assigned to a vehicle is an overall industry assessment that combines quantitative car reviews from various major automotive authorities, including the Institute for Highway Safety and the National Highway Traffic Safety Administration, the company reported.
Volkswagen had the most models on the list, with the Golf ranked in the No. 1 spot, the GTI coming in second and the Jetta in ninth.
Brauer noted the 2012 Ford Focus, ranked third on the list, has shown a major improvement in the ratings and reviews received since its introduction.
Also notable is the presence of two Mazdas on the list, he said, including the updated Mazda 3 with SKYACTIV engine technology to improve fuel efficiency, and the Mazdaspeed 3.
Overall, the Total Car Score Top Ten for New College Graduates are:
• Volkswagen Golf
• Volkswagen GTI
• Ford Focus
• Mazda 3
• Chevy Cruze
• Mazda Mazdaspeed 3
• Hyundai Elantra
• Scion xB
• Volkswagen Jetta
• Kia Forte
All of the vehicles in Total Car Score’s list have a manufacturer’s suggested retail price that starts under $25,000, with seven of the 10 starting under $17,000, the company reported.
“In today’s extremely competitive new-car market, automakers are providing higher-quality cars at lower prices,” Braun said. “These models offer more technology and convenience features than ever before in the compact car segment.”
May 21, 2012 | LOS ANGELES
By Auto Remarketing Staff
Automotive ranking and comparison website Total Car Score has issued its list of the Top Ten Cars for College Graduates, based on safety, fuel efficiency, comfort, performance and cost.
At the head of the class are three Volkswagen models, two Mazda models and representatives from five additional automakers.
“College grads are looking to make an investment in a car that is reliable and cost-conscious,” said Karl Brauer, editor-in-chief of Total Car Score. “We compiled a list of the top-rated cars that offer the best quality while being very affordable.”
The Total Car Score assigned to a vehicle is an overall industry assessment that combines quantitative car reviews from various major automotive authorities, including the Institute for Highway Safety and the National Highway Traffic Safety Administration, the company reported.
Volkswagen had the most models on the list, with the Golf ranked in the No. 1 spot, the GTI coming in second and the Jetta in ninth.
Brauer noted the 2012 Ford Focus, ranked third on the list, has shown a major improvement in the ratings and reviews received since its introduction.
Also notable is the presence of two Mazdas on the list, he said, including the updated Mazda 3 with SKYACTIV engine technology to improve fuel efficiency, and the Mazdaspeed 3.
Overall, the Total Car Score Top Ten for New College Graduates are:
• Volkswagen Golf
• Volkswagen GTI
• Ford Focus
• Mazda 3
• Chevy Cruze
• Mazda Mazdaspeed 3
• Hyundai Elantra
• Scion xB
• Volkswagen Jetta
• Kia Forte
All of the vehicles in Total Car Score’s list have a manufacturer’s suggested retail price that starts under $25,000, with seven of the 10 starting under $17,000, the company reported.
“In today’s extremely competitive new-car market, automakers are providing higher-quality cars at lower prices,” Braun said. “These models offer more technology and convenience features than ever before in the compact car segment.”
Wednesday, May 16, 2012
HOW TO COMBAT A CREDIT UNION STEALING YOUR WARRANTY BUSINESS
-
By Paul Potsiadlo
Like anything, if you are trying to convince someone of
something after they have made up their mind; you chances of success are very
low.
Some credit unions will use this tactic, since they have
the trust of the customer for a car loan at a very competitive rate, they will
talk to the customer about a warranty to cover their investment. Sometimes the credit union will tack an extra six
months on to the loan if the customer takes the credit union’s Vehicle Service Contract and many times the vehicle service contract
they are selling is less expensive due to lower markup than the one the
dealership is trying to sell.
To be able to combat this situation save some of the vehicle service contract
deals, the dealer must be aware of what it happening and why, and needs to be
trained on how to preemptively counsel the customer on what is going to happen
when they go to get the check.
The dealer must agree to fight for his profits on vehicle service contract’s
and will need to spend some time with the customer in advance of them going to
the credit union to get their check. PASS system
know how the customer will pay for the car, ask questions.
Present and explain the vehicle service contract to the customer following our
PASS guidelines. On credit union customers where
the credit union is known to steal the business, explain to the customer what will happen
when they go to the credit union and how and why the credit union will try to sell them their
vehicle service contract.
Let them know the credit union is interested in increasing the
amount of the loan at whatever interest rate, to generate more income on the
books. They have a “branded” vehicle service contract they
will be using but once the deal is done the credit union will have no input into any
claims situation.
Explain to the customer why your dealership is dealing
with Preferred Warranties, PWI is in the vehicle service contract business, not the finance business and everyone
working for PWI is an employee of the company, not someone working for just a
commission, or a disinterested third party claims adjuster. Explain customer
service, length of time in business, and a relationship to help the dealer’s
customers, point to plaques, awards, and point of sale materials in the office. The dealer must let the customer know he is
looking for a customer for life, regardless of where they get money to buy the
car. The dealer must let the customer know that even if he does not chose to
cover his car with a PWI warranty, the dealer wants to help his customers down
and road and can suggested repair facilities if his vehicle is not covered
under a vehicle service contract. The dealer must let the
customer know he will make a small but reasonable mark up on the vehicle service contract, but he is
in the car business and like everyone needs to make a profit.
To empower the customer when he talks to the credit union rep, have
the customer ask that person, “What is the BBB rating of the vehicle service contract Company you
are trying to sell me?” Use those exact
words. Have the customer ask next, on a
36 month vehicle service contract how many miles of coverage are you trying to sell me. (Sell me)
If the dealer has presented a Premier plan, ask is the coverage you are
trying to sell me an exclusionary plan or is it listed coverage. (How many
people at a credit union can answer that?)
There are a lot of questions you can arm your customer with, ignition
management controls, roadside, check engine light coverage,
Getting a live person on the phone, ect.
The dealer must be committed to saving the deal and vehicle service contract
for himself and must be able to think on his feet, customizing the question to
the customer and vehicle service contract plan. It must be
pre emptive and the dealer must remember, he can influence the outcome, but no
one bats a thousand.
Tuesday, May 15, 2012
The Easiest Money a Dealer Can Make
By Mike Bowers
As a fellow independent dealer I can certainly appreciate the challenges that have been presented to our industry over the past few years. With a lack of quality inventory, increasing competition from franchised dealers and the pricing stresses caused by the shift of our businesses toward the internet, making a solid profit can seem more difficult than ever. I don’t need to tell you more stories of seasoned dealers who have gone out of business over the last few years and I sincerely hope that the information I share with you in regards to selling service contracts can help to make sure that you (and I for that matter) are not among the dealers who have to give up the vocation we love.
Like me, you have probably been approached many times by someone trying to show you how to make more money selling service contracts. The sales trainer or service contract representative undoubtedly told you that their selling system would provide results and deliver an unbelievable boost to your bottom line. However, despite their slick and refined approach and impressive software and training material, there is one major flaw to every training system I have ever seen-- they lack relevance to independent dealers.
Those who service the new car and franchise side of the industry have very little working knowledge of what we do as independents. They have no idea the time and energy it takes to hunt down good inventory, manage relationships with your wholesale contacts, recondition and advertise your vehicles, relate to your customers, manage your sales staff, keep your books up to date and still make it home in time for some dinner and a little league game. I understand how difficult it is to handle those responsibilities and still find time to think about how you can increase your sales penetration when it comes to selling F+I products. The problem is we as independent dealers tend to spend so much time handling the day-to-day business of buying and selling cars that we fail to see the easiest opportunity to stay profitable under the current economic conditions.
The expression "easy money" may make you somewhat skeptical, but I want to tell you about a pile of easy money you may be missing completely. A few months ago, as my team and I were discussing how to sell more extended service contracts at John’s Great Cars, I was standing in the closet where we keep our paperwork for deals. We had been making some progress and getting our sales staff on board with the idea of selling service contracts consistently when I noticed a stack of unused service contracts sitting among the rest of our forms. I was enjoying the profit we had made on our last few deals and as I looked at the stack of contracts beside me I realized that there in that stack of paper was the easiest profit that any dealer can make. When you sell a service contract there are no cars to buy, no cars to transport, nothing extra to advertise, nothing to clean, nothing to fix and, most importantly, nothing to worry about after the sale.
Most of the work is already done in selling the car and if we, as independents, can commit to changing the culture in our stores, we can truly unlock the potential that is hidden in our dealerships. It sounds almost too simple, but I have found based on my own experience that the skills and processes needed to sell service contracts are no different than those we already employ selling cars. Sure, it is effective for sales trainers and some warranty companies to convince you that you need an elaborate or tech heavy approach to selling F+I products. They want to sell you on their services and, in the case of trainers and consultants, justify the fees they charge. There is no magic and there are no secrets. All that is required is for you, the decision maker in your dealership, to get excited about the easiest money you can make and take the time to pass that excitement on to your employees.
I can go on at length about what I feel is the right way for independents to sell service contracts, but I realize that each situation and dealership is unique. What works at our store may not exactly fit yours and you may have more or less resources available to put towards your effort. If you are ready to make some seriously easy money the one constant is that you must commit to giving every customer the opportunity to buy your service contracts. I can’t tell you how many customers left our store over the last 20 years without even knowing the options that were available and I hate to think of the mountain of profit that walked away with them. Since our commitment to selling contracts began in earnest, we have sold contracts to customers who I never thought would buy, including several mechanics who know what it costs to fix a car in today’s market. Now I venture no guesses about who will buy a service contract and work hard to make sure that every customer is presented with every option every time.
The idea of selling service contracts tends to raise some questions among independent dealers and especially their sales people. No one wants to jeopardize a sale by trying to add another product to the mix, most sales people do not want to learn something new, and some people just don’t believe in warranties as a matter of principle. I understand the objections and have dealt with them with our sales staff as well. But the decision to focus on selling more service contracts should not be left to our sales people in a sort of democratic vote. I firmly believe that when we sell cars we are not simply closing another deal, but building a business relationship with our customers. As such, we need to protect them from the inevitable failures that occur with every vehicle. This thought is what really got me excited as we began to sell more service contracts. Not only were we instantly more profitable, but we were insulated from many of the headaches that come along with selling used cars. Our business may change on a month- to-month basis, but I have done this long enough to know that one thing remains constant – cars break and our customers like us a lot more when the repair is covered.
I hope you can get excited about the prospect of being successful selling service contracts and begin to work on the best way for your dealership to give every customer your best effort. At John’s Great Cars, we have dedicated two people on our sales staff to handle our F+I and now our sales staff turns over every customer for a separate presentation on the options available to protect their new vehicle. We have been very successful with this process, but even if you have only one or two people at your building, there are ways to ensure that every customer is given a proper opportunity to buy. You wouldn’t let a customer walk away who might buy a car, and you shouldn’t let one get away who might buy a service contract. The money is just too easy!
Mike Bowers is a co-owner of John’s Great Cars, Reading, Pa. His dealership began partnering with Preferred Warranties in 1998 and has sold nearly 5,000 PWI service contracts to date. You can reach Mike at (484)663-0997 or by email at info@johnsgreatcars.com.
Monday, May 14, 2012
Facebook drives website visitors, not leads, report says
http://www.fi-magazine.com/News/Story/2012/05/Facebook-Drives-New-Visitors-to-Dealer-Websites-Report-Shows.aspx?ref=-20120510&utm_source=Email&utm_medium=Enewsletter
May 10, 2012
NASHVILLE, Tenn. — A new report on the influence of social-media sites on auto shopping behavior showed that many dealerships are successfully utilizing Facebook to generate new visitors to their Websites, but it also showed that traditional methods are still required to turn visitors into leads.
Issued by Dataium, an aggregator of online automotive shopper behavior, the report looked at online shopping events from a database of more than 100 million active auto shoppers, and detailed the impact of social media on visits, vehicle searches, inventory views and lead on dealership websites.
The report showed that while only 0.45 percent of shoppers have been referred directly from Facebook to a dealership website, 94 percent of those referrals visited the dealership website for the first time. In addition, 27 percent of those first time visitors return to the dealership website after their initial visit, compared to a 22 percent return for the average shopper.
In terms of vehicle views, 36 percent of shoppers referred by Facebook viewed at least one vehicle, compared to 32 percent of shoppers who were referred by other websites. Interestingly, however, Facebook shoppers view an average of only two vehicles compared to other shoppers who, on average, view five vehicles.
"The data shows that Facebook is a good approach to getting new visitors to dealership sites,” Dylan Snyder, senior manager of business intelligence at Dataium. “The lead-to-visitor ratio, which is less than half of our network average, is disappointingly low, however. This highlights that dealerships cannot rely on Facebook alone; traditional methods are still needed to turn these new visitors into leads."
To view the complete report, click here.
May 10, 2012
NASHVILLE, Tenn. — A new report on the influence of social-media sites on auto shopping behavior showed that many dealerships are successfully utilizing Facebook to generate new visitors to their Websites, but it also showed that traditional methods are still required to turn visitors into leads.
Issued by Dataium, an aggregator of online automotive shopper behavior, the report looked at online shopping events from a database of more than 100 million active auto shoppers, and detailed the impact of social media on visits, vehicle searches, inventory views and lead on dealership websites.
The report showed that while only 0.45 percent of shoppers have been referred directly from Facebook to a dealership website, 94 percent of those referrals visited the dealership website for the first time. In addition, 27 percent of those first time visitors return to the dealership website after their initial visit, compared to a 22 percent return for the average shopper.
In terms of vehicle views, 36 percent of shoppers referred by Facebook viewed at least one vehicle, compared to 32 percent of shoppers who were referred by other websites. Interestingly, however, Facebook shoppers view an average of only two vehicles compared to other shoppers who, on average, view five vehicles.
"The data shows that Facebook is a good approach to getting new visitors to dealership sites,” Dylan Snyder, senior manager of business intelligence at Dataium. “The lead-to-visitor ratio, which is less than half of our network average, is disappointingly low, however. This highlights that dealerships cannot rely on Facebook alone; traditional methods are still needed to turn these new visitors into leads."
To view the complete report, click here.
Subscribe to:
Posts (Atom)