The trickle effect in new and used car sales
The meat of this article by Arianne Walker in Online Automotive Review is iterated in the final paragraph:
Even though OEMs and dealers have been shifting their marketing budgets online, the data shows that most should probably be accelerating that transition, putting even more money where shoppers - new and used alike - are increasingly going.
These trends are consistent with the recent Cobalt-Polk-Yahoo! study on new vehicle buyer behavior in how it directly and indirectly influences used vehicle purchases.
When I think of car sales, I think of long-term retention. But immediate sales are important to. While you need to invest into new and used car advertising, a primary benefit with investing in to new vehicle advertising is that the investment not only trickles down into used car sales, but it even influences used car sales. That is what the study suggests at least.
This is a key topic today for dealers and providers. Dealers today are cautious of where and how they shift their marketing dollars. It is widely known that the Internet offers the greatest ROI, however establishing your online brand recognition is not an event, it is an establishment that requires years of vision, commitment, and dedication from dealers and their providers.
Dealers must be prepared to take risks and to embrace long-term change in order to meet auto shoppers in advance, but it can be done with the right tools and techniques.
Wednesday, June 4th, 2008
Let’s say for a moment that one of your potential customers desperately wants to buy one of your cars. They’ve come into some money, or they’ve been saving up for years, and all they want to do is buy one of the cars that you sell. Is your website helping or hurting them?
If you’re a regular reader of this publication, you’ll hear a whole lot about
The internet operates in an attention based economy. Instead of your website visitors giving you money, they’re giving you their time. Of course you’ll eventually want them to give you their money, right now you want to maximize how much time they’re giving you. How do you get them to give more? You have to give more back.
The internet has changed everybody, including tire kickers. Tens of millions of people are researching their purchases online before they buy, and that certainly includes car buyers. So how are you supposed to turn these lookers into buyers? How do you convert mildly interested people into enthusiastic customers? Here are some ways to convert search traffic into real life buyers.
People are more likely to buy what they know and the fastest way to get to know a car is to drive one. Based on this idea, the auto rental company Avis did a study to find out the impact of automobile rentals on future car purchases.
Vehicle sales have been stalling as the economy is trying to sort itself out and potential consumers are trying to hang on to their vehicles as long as possible. To combat this, dealerships and manufacturers have been getting creative in attempting to lure buyers to their shops.
In a sagging automotive industry, it’s easy to get dejected about the state of vehicle sales in America. Automotive dealerships can always find new ways to market their products, but some things seem just about impossible to sell. With gas prices at never before seen levels and an increase in consumer concern about the environment, what do you do with all of the sport utility vehicles and pick-up trucks hanging around the dealership?
It’s no surprise that the auto industry is in a slump. Gas prices are high, most of America is mortgaged to the hilt, and consumers are finding there’s too much month left at the end of the money.












