Autotrader, Cars.com or KBB?

[jscole86]

There is also another angle that needs to be considered. Most customers that do research online have multiple sources they utilize. Some studies say up to 18 sources-- anywhere from your dealer sites, to OEM sites, to ATC/Cars.com, to blogs, review sites, etc.

When you look at where to focus your digital marketing online, remember to keep in mind how your customers are searching and discovering you... and that doesn't just include the last referring site. I just read a good article that Brian Pasch wrote and it dives in a little deeper and talks about Assisted Conversions and specifically how ATC may be the introduction of your dealership, but not the final referring source.

 

[ddavis]

I have watched competitors switch to this strategy against my old store. They are spending a fortune on PPC and getting their butts kicked.

Using display advertising takes a lot of work and you have to know what you are doing. That said, cancelling them might be your best option.

 

[GHouseman]

I have found the only way any 3rd party websites work is if 1) you use Vauto to be sure you are priced competitave and 2) Your managers know how to use Vauto. Most of the time it's #2 that is the weekness. The all SEO game also plays a large part.

 

[mciweb]

It seems like AT & Cars.com have skyrocketed their prices, particularly since newspaper advertising has plummeted. Could be a case of diminishing returns. Still, when consumers are looking for a used vehicle, they go to the site(s) where they can comparison shop for the best car at the best price. In my area, that means Autotrader.com or Cars.com.

Here are some fundamental reasons why a dealership's advertising efforts may be failing: Lack of immediate response to prospects phone calls or emails; Lack of a competitive price; Bad or missing photographs. Buyers are impatient. If they don't get an immediate response from you, they will start calling or emailing your competition. All else being equal, shoppers will give preference to vehicles with good pics - bad or missing pics indicate in the mind of the shopper that you're trying to hide the condition of the vehicle. If you don't have a price, they will either be irritated that the price is excluded, or they will assume the price is too high.

Regarding KBB, they're still thought of as a automotive pricing site, not a shopping site.

New cars are another matter - I don't think customers in general shop for new vehicles on AT or Cars.com.

 

[flosho]

Why is it so impossible to price the vehicles correctly that you have to rely on vAuto? If you do a fantastic job with the pictures and description and get your customers emotionally interested in their next vehicle purchase the price has less affect. Of course you cannot be way over priced or you will not get the opportunity to set the hook, but how many customers buy the cheapest car on the market?

 

[joe.pistell]

Flosho,

Ever goto a travel site and NOT sort by price?

Low price creates visibility, then your merchandising work sets the hook.

That's the bedrock of the vAuto game plan.

 

[ddavis]

It seems like AT & Cars.com have skyrocketed their prices, particularly since newspaper advertising has plummeted. Could be a case of diminishing returns. Still, when consumers are looking for a used vehicle, they go to the site(s) where they can comparison shop for the best car at the best price. In my area, that means Autotrader.com or Cars.com.

Here are some fundamental reasons why a dealership's advertising efforts may be failing: Lack of immediate response to prospects phone calls or emails; Lack of a competitive price; Bad or missing photographs. Buyers are impatient. If they don't get an immediate response from you, they will start calling or emailing your competition. All else being equal, shoppers will give preference to vehicles with good pics - bad or missing pics indicate in the mind of the shopper that you're trying to hide the condition of the vehicle. If you don't have a price, they will either be irritated that the price is excluded, or they will assume the price is too high.

Regarding KBB, they're still thought of as a automotive pricing site, not a shopping site.

New cars are another matter - I don't think customers in general shop for new vehicles on AT or Cars.com.

The majority of dealership internet departments are run by lazy people that don't know what they are doing. It is like most sales departments where 20% of the salespeople sell 80% of the cars. The statistics bear me out. Response times haven't improved. People still send in leads and never get a response or they ask specific questions that are never addressed.

If you have a good Used Car Director, he is the only one, in the store, that works as hard as a good Internet Director. These jobs will fill your day. To be good, you have to know what you are doing and be willing to put in the effort. New Car Managers? Find a monkey and put a note in it's mouth.

At my last store, we sold more new cars, over the internet. We were an Alpha/Premium dealer on AutoTrader and we had months where we led the entire market in new car VDPs. Not being Toyota, Honda, Ford or Chevrolet, this should never happen. I keep hearing that display advertising doesn't work for new cars. Keep thinking that.

 

[Jerry Thibeau]

Does anyone think we would really be shooting ourself in the foot by getting rid of Cars.com and Autotrader? I am seriously thinking of going this route. Any suggestions? Thanks in advance.

Ryan,

I already think you're shooting yourself in the foot, leg, chest and head. Since you're on the TrueCar program, you should cancel all other third party leads and let Mr. Painter supply you with leads. Once they displace Cars.com on Yahoo, which will happen in a few days, you're leads should skyrocket. Since you're dealership will become less profitable, I would probably start looking to cut expenses while you're at it. Your eMarketing director position would be the first job I would look to eliminate. Why pay you and TrueCar to generate the same leads.

Sure your percentage of sales on TrueCar are probably small now, but give that some time. Like a Chia pet, give it nourishment and watch it grow. You think 50K a year is a lot, well wait until you're dealer is writing TrueCar a monthly check for 50K. That day is right around the corner.

Using TrueCar is for the weak and lazy. Sorry for the bluntness, but I am not one to remain silent when I see a problem. Real eMkareting Directors find a way to generate their own leads. You have a legend working right around the corner from you. I am not saying there isn't a place for AutoTrader and Cars.com because I believe there is. Brian Pasch wrote a great article about this recently and it's a good read. AutoTrade and Cars.com offer a lot more value to dealers than TrueCar. IMHO, you're axing the wrong players.

You're fueling a company that is going to drastically alter the automotive industry. TrueCar is like a drug dealer just starting out. They plan to expand their empire at your expense. They will leave a path of destruction as they grow.

I would love to have a conference call with your owners and shed some light on all this.

Get off the drug!

 

[ddavis]

Jerry, It's a side effect of estrogen.

 

[ryanabbott]

Thank you for your "expertise" on the subject Jerry. While I'm sure that you know everything about our Dealership and how you think it's a sinking ship b/c of our affiliation with TruCar, i'm afraid that's just not accurate. We have a great team of ownership here at Fox and we will know when the time is right to pull the plug. We started on TruCar before all this went down and we haven't jumped ship yet. We have a very strong F&I department and we gross very well on every TruCar deal. It's not always about front end money it's about total profit. If this discontinues then we we look to get off. Until then I see no reason to. I have no problem paying TruCar 50K a month if it brings us $332K a month in return.

I guess I am not a "Real" eMarketing Director because we use TruCar. Lucky you don't pay my paycheck so I don't have to worry about what you think. I learn everyday at this job and I will continue to grow. Our dealerships do just fine, even with a "legend" just around the corner.