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Are we really in an Auto Credit Crisis?

I have to throw in my 2 cents on this.

I speak with dealerships everyday and have asked a few the question:

Is it the economy?
Is it the inability to get the consumer financed?

The answer is: No it is not the economy & No it is not that they cannot get them financed.

"The consumer is afraid to spend the money"

The one dealer explained he would see 28 to 32 sets of people come into the dealership on a daily basis. Since last Monday only 5 to 8 sets of people. OUCH!!

But keep in mind! When times are tough the Internet business does increase with more traffic.

Are we really in an Auto Credit Crisis?

Sure it's gotten a little bit harder on financing and some of the banks that were buying the sub 600 Beacons have gone away or are not buying that clientele any more, but we are still getting these customers bought, they just qualify for 35% loans instead of the 20% they would have got a year ago.

Given the current climate, this is a really good time to start rebulding relationships with some of the lenders you have let go to the wayside, the banks we considered our go to lenders a year ago are different than the banks we are using today.

I think if a dealer makes the effort to work on building and rebuilding their relationships with their lenders they will not only make it through this slow time, but thrive while their competitors drop around them. A great example of this is Nick's comment treating a 500 as a negative, with a great lender relationship, the right structure, and a little ass kissing, this deal is completely doable. I think dealers that survive this market will be working smarter, with a little more thinking outside the box than they have in the past.

Just imagine what a dealer that gets all these things dialed in and working while it's slow could do once the market rebounds.

Are we really in an Auto Credit Crisis?

At our dealership, we're not really seeing credit problems so much as people aren't coming through the doors in the first place. It's possible that many of the people who aren't coming in wouldn't have gotten credit but it's so hard to say given all the other variables. We're just seeing way less traffic. The people who I haven't been able to get approved recently had such bad credit that it wasn't a matter of what the economy was doing. A 500 is a 500.

Are we really in an Auto Credit Crisis?

Great article. I think Mike Jackson is looking for a permanent spot next to Becky Quick on Squawk Box (btw, I love it when he's on there!).

Let's face it: in any shakeout period, the strong get stronger and the weak go away. Fewer car dealers mean more car sales per rooftop. 11 million car sales is still a massive opportunity. Keep the faith!

Are we really in an Auto Credit Crisis?

I believe that consumer confidence (or lack thereof) has more of a direct impact in low unit sales numbers than anything else. If a customer is worried about their ability to maintain their current employment (potential layoff coming their way?) and not cross thru the dealerships doorway in the first place, their beacon score has nothing to do with it. One thing I'm sure of is that alot of dealers are going to go out of business in the next year from the weak demand, when we see Toyota numbers down over 30% it's pretty bad out there no matter what the beacon scores are that come into the showroom

How to use Google Analytics webinar with Avinash Kaushik

I watched the entire presentation and had the prickly sensation that there was some other intention of this besides just an education process about Analytics.

I would not go so far as to say that a guy with Avinash's credentials would sell out for Automotive News or for GM, but I can definitely say that all of the presentation had a specific odor to it. I wrote an article on my site concerning how far the manufacturers are venturing into becoming Internet or service providers. If you want to read it, it is here:


No problem if you do not want to link outside away from your site Jeff- feel free to post it on your site if you would like with proper mentions to PureDealer of course ;-)

Overall, I'm fine with a push for Analytics, ALL sites should have them, and heat maps too. It just seemed strange how wonderful some manufacturers were supposedly doing online, and how awful others were doing. Watch the presentation and you can see the same patterns. I'm not one for conspiracy theories but you can judge for yourselves.

-Michael

How to use Google Analytics webinar with Avinash Kaushik

I'd have to agree with Joe. The presnetation was not geared towards dealers at all. Some of the challenges that dealers go thru with paid search can become very tricky when competing against OEM's and other 3rd party sites. My biggest take away was how important the bounce rate is to monitor.

How to use Google Analytics webinar with Avinash Kaushik

That "HIPPO" effect is not limited to just selecting website hosts... As for using Google Analytics, I really think you need to be able to trend and compare your month to month and year to year analytics to be able to identify patterns and make useful decisions. That meant making a HUGE MS Excel spreadsheet where I enter my monthly analytics for each of our sites and they now automatically graph for me in each category so that I can see where we are doing well, and where we are falling short. It took some time to put together but it works great. Google Analytics is an amazing tool when you make it work for you...

How to use Google Analytics webinar with Avinash Kaushik

IMO, Avinash was poorly prepared. We're all sitting there waiting for him to drill down into our world, but he never made it to us.

At the beginning of the presentation they mentioned that 2400 people were logged into the presentation. IMO, with a count that large, a great number of listeners were dealers. I can't be sure, but it’s a logical conclusion.

I don't believe he had any idea of what his audience makeup was. If it's 90% dealers, then craft the presentation to your audience. If it was a big mix, he could pre-announce to us all how widely diverse the audience is and how he'll need to "keep it fairly generalized" to apply to all. An Example to clarify: If he presented to the Pool Table industry and based his presentation to the manufacturers, what good is it to the retailers that sell the tables?

His presentation was aimed squarely at auto manufacturers and was of little help to auto dealers. The auto dealer has unique search difficulties and unique search opportunities because of their local presence. Dealers cannot do competitive marketing intelligence using Google trends because our traffic counts are too small. He has long tail as a Paid Search solution and long tail is a no-brainer for non-paid search.

I can go on and on, I don't have time to break out all of the details, but IF the audience was mostly car dealers, then Avinash did not have any idea what his audience consisted of.

Avinash had some excellent points. I like using the bounce rate and visitor loyalty as excellent metrics of shopper satisfaction. But his 60 min presentation was simply a 1,400 word per minute caffine induced race around the planet.

I can't help but think that Avinash's presentation was no different than having a junk landing page for a PPC search term. My "visitor loyalty" score for him will be not good.

just my $0.02
Joe

5th Digital Dealer Conference Review by Kevin Frye

Kevin,

Thanks for the kudos!

To all that attended my presentation... thanks for a fun interactive session. The response has been truly unbelievable. Three dealers called me today just to say thanks and tell me that they already have videos landing on page one of Google. For those that would like a copy of the presentation, go to: www.dealeradvisornation.com and sign up. Then look in the forum where you will find a post including the ppt. Shameless plug? Maybe but, it's actually just the thing that the dealers in the DR community need.

Mission accomplished! I came to deliver something of great value for dealers that need some results oriented cool stuff with a tiny price tag. It's always great to see so many friends and hang out with folks that are focused on pushing our industry forward.

I was able to hang with Jeff out in Vegas a bit too and he will probably kill me if I don't write some DR posts soon.

With encouragement,

Shaun

5th Digital Dealer Conference Review by Kevin Frye

Great post and would like to comment on "Text is becoming more and more preferred with folks as a primary source of communication".

There is no way that I can see that this will ever be a useful line extension in communicating with customer's with regard to the selling process.

Service? A ++++ on keeping customer's informed on a vehicles status. That is a great fit.

Who out there wants to be the first in playing text tag with customer's in price quoting?

The selling model is so diluted as it is with automated e-mail inquiry reply responses and what happened to relationship building?

Customer's are not "managed", only the the information is.

That's all my ramble and hang in there because there will always be a retail automotive industry.

Dealers who still don't "get it" and make the commitment to innovate and spend the majority of their ad budgets online and stay with the "look at me I am acting crazy on tv and discounting everything $$$'s of dollars" will be gone soon...good riddens!

I am a little salty because I was talking to a dealer that just spent $50,000 on such and ad and 8 out of 11 of his salespeople made minimum wage last month and could care less and told me "no problem" he's running a job and better if they quit so no comp claims.

Ahhh...

5th Digital Dealer Conference Review by Kevin Frye

Absolutely the best part of the excellent coverage:

"Many dealers are afraid to get into this online arena, as they are afraid that folks might leave negative reviews about them. We need to get over this fear and work to encourage our satisfied customers to leave positive reviews for us, and to honestly deal with those who were not happy and work to solve any problems."

'Nuff said...

5th Digital Dealer Conference Review by Kevin Frye

Kevin, I think you captured the 3 days perfectly - and it was great to get to hang out with you and Alex Jefferson. The Wyler Group is a true testament for inhouse video creation and marketing (Shaun Raines showcased them in his presentation).

Speaking of Shaun Raines, he definitely put on a very interactive seminar; he is quite funny. The only other seminar I made it to was Ralph's and I'm glad I did, I picked up a really good SEO tip there in his UGC/Social Networking talk.

Alex Jefferson, you owe me $.40 for those 2 text messages you sent me.

I think if a company like TomTom was selling GPS devices there, they'd have sold out from all the lost people I saw walking around the resort. It was gigantic.

Chip-

5th Digital Dealer Conference Review by Kevin Frye

“Sorry about how my hair looks this morning – I combed it with a porkchop”

Could this be anyone else but Shaun Raines opening up his session on Video SEO?

Since Jeff was in Vegas with the J.D. Power Automotive Internet Roundtable this week, he asked if I would fill in with a review of the 5th Digital Dealer Conference and Exposition.  Located at the Gaylord Hotel in Dallas, we once again had a great venue where everything one could need was easily accessible.  My goals were to attend many of the sessions where “new and cool” issues were being addressed, as well as to network and meet some key people within our industry.

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One of the highly anticipated sessions was lead by Shaun Raines, and was the first that I attended.  Shaun had a full house and a rapt audience for his presentation on “What You Should Know About Video and VSEO”.  It is readily apparent that video has caught the attention of many dealers now and with a slowing market and less dollars, many are looking to learn how to do their video “in-house”.  Shaun shared many of the inside “secrets” of how to do this on your own, and how to position your work at the top of the results for the search engines.  Several other sessions dealt with this same topic, with all showing good attendance and reinforcing that our market is moving in this direction.

Another great session was lead by Ralph Paglia and dealt with social networking and blogging.  Many of us already feel overwhelmed with the great amount of work we need to do to keep our dealerships in front of our customers.  Ralph asked “Why not let your customers do the work for you?”.  His session shared how to utilize social networking and blogging websites and allow your customers to generate positive content for you.  Many dealers are afraid to get into this online arena, as they are afraid that folks might leave negative reviews about them.  We need to get over this fear and work to encourage our satisfied customers to leave positive reviews for us, and to honestly deal with those who were not happy and work to solve any problems.

Speaking of reviews, I met several times with the folks from dealerrater.com.  Chip Grueter (President), Matt Lamoureux, and Heather were working the floor of the exhibit hall and attending the sessions to network with the folks who are working on the front line.  I always look to find 1-2 new people that I can meet and work with in this fast-moving market that really understand where this market is going.  Chip Grueter really understands where the consumer side of our market is moving, and the Dealer Rater site is a great example of that.  Great job to the entire team at Dealer Rater!

Also presenting at the conference was Rafi Hamid, who is now working with vAuto.  When I asked what Rafi was doing with vAuto, he shared that he is now a “Value-added benefit” to vAuto’s current customers.  When I pressed him further on this, he shared that vAuto sends him out to current customers where he shares his expertise (learned by actual experience!) with working our internet market and helps each store to refine their process to become much better.  This impressed me that a vendor would bring someone like Rafi on to “complement” their service and truly offer a value-added benefit that all of us could use.

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While I attended multiple sessions, the other key issue that stood out for me was Text Messaging.  When we consider the ramifications of the FTC CanSpam Act and the ongoing difficulties with email spam filters, etc, a solution is needed to optimally reach our customers.  I learned in more than one session some key statistics that showed that cell phone users of all age groups are now sending out more text messages than making actual cell calls.  If you are with a group of friends and you receive a call on your cell phone, do you always answer it?  If you get a text message, do you take a moment to look at it?  Receiving the call requires that you “engage” with the caller and interrupt your busy schedule.  Text is becoming more and more preferred with folks as a primary source of communication that fits their lifestyle, and we need to address that.  My prediction is that this subject will continue to gain more interest in the upcoming conferences.

I am always impressed with the approach to the exhibit hall at these conferences, as folks are always returning to the hall before, between, and after sessions to network and meet with the vendors.  Why?  Whether it is breakfast, refreshments, or drinks, there are always sponsors providing items to encourage folks to return to the exhibit hall – smart thinking, and it works!  (kudos to Mike Roscoe!).  Most of what I look forward to goes on the floor in the exhibit hall.  Alex Jefferson with Proctor Honda/Acura made the rounds with me as we met with multiple vendors and learned about new products and services available.  One of the event sponsors was
ClickMotive, who has built on their success with search engine marketing and entered the website hosting market with some cutting-edge, search-friendly sites.  SEM needs were another hot item this year, with several exhibitors.  Video services were also well represented by AutoMotion, Phil Sura and UnityWorks Media and more.

The best “give-away” was a close call. I came to the Reply!com booth where some of the Dallas Maverick dance team was present and signing photos.  Alex and I were surprised to find 4 of the dance team members huddled around the latest issue of Digital Dealer, where they were admiring the “hot” dealer on the cover – Alex Snyder of Checkered Flag.  Please take time to see the photo we took of the girls with Alex!  Great job to Kevin Stellbrink with Reply!com who helped us set this up, lol.

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The highly coveted best give-away went to the folks at activeEngage where they were giving away a “flying-screaming monkey”.  Hard to describe, so I included a short video to try and show what this does.  You take the monkey, pull its body back (like you are shooting a rubber band), and let it fly (cape is included), at which point it begins to scream and holler.  I was asked if I would like to take some of these back to our dealership.  I had to immediately decline, could you imagine a floor full of car sales reps playing with these all day???  Great fun, creative give-away, and an enticing reason to see the new instant message services offered by ActivEngage (where their folks staff your instant messaging 24/7 to ensure prompt and professional response to your online customers’ inquiries.

As for the “word on the streets”, everyone was talking about our current market, and the slowdown we are seeing.  Many are currently in a spending freeze, and several are cutting back in their internet marketing efforts.  More than ever, it is important that our vendors can show measurable results (ROI…) to earn our dealers’ hard-earned dollars.  This market is also a great time to use creativity to keep your presence online extensively without spending massive amounts of money.  If you are going to spend money on something new in this market, you are going to have to cut back somewhere else.  Attending events like this allow each of us to get the information we need to succeed in difficult markets like the one we are now in…

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Big Congrat to Mr. Alex Snyder for his cover shot and story in the latest issue of Digital Dealer Magazine.

Compared to the spring conference, attendance appeared to be down.  I would attribute much of this to the competing conference with J.D. Power in Vegas, as well as the recent slowdown in our market which means dealers are tightening up their budgets.  Overall I found the conference to be another great success, and I look forward to attending the next one in 2009.  Please share your comments and stories, and I apologize for not being able to mention everyone that I enjoyed meeting with in this quick review. Cheers!

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