Dealers, why not just have the option for customers to buy your inventory 100% online?

[Carsten]

I took statistics 101 in university.
I did learn 1 thing. Amazingly, this 1 thing pretty much invalidated all polling data I have come across since then.

Example:

Given that LS Engine has been rated as the most reliable by industry experts and offers better long-term value, which engine would you choose?

Essentially, questions can be created that sway your answers.

As for reviews? How much of them are really legit?

Yelp restaurant reviews ... lots of people don't know good food or I'm really reading bots raving about how awesome the fish ball soup was.

 

[joe.pistell]

This thread makes me think of Realtors and Car Dealers.
• Both are disliked by the general population (i.e. "I think 6% is highway robbery").

But... If both are 'disliked', where are all of the FSBO sales action going around Realtors and Car Dealers?

• Both transactions require banks and are highly complex.
• For the general population, FBSO (for home and auto) is seen as more risky than a sale with a Realtor/Car Dealer.

FSBO = Risk
Car Dealers = Less Risk

Merchandising Opportunity: Buyers really want a pro to help them navigate all of the variables.

 

[BillKVMotorCo]

Yelp restaurant reviews ... lots of people don't know good food or I'm really reading bots raving about how awesome the fish ball soup was.

Let's not ignore how the scourge of the earth (a.k.a Yelp) holds reviews hostage. We have a 1.5 rating with a total of 6 reviews. Yelp is holding our other 30+ positive reviews hostage until we pay them money.

 

[joe.pistell]

To be fair, Carvana's definition of gross profit per unit is much different than the average dealer's definition of GPU. As @Steve Stauning knows, they use some creative accounting...

hahaha

@Steve Stauning

 

[Eric Miltsch]

Just helped my son buy a Honda from a dealer three hours away from us. Took <15 minutes to wrap up the deal. Plus, they delivered it, too.

Sure, not all shoppers may know the right questions to ask to get that type of experience. There's also nothing stopping dealers from marketing themselves that way, either.

I'm sure this is happening, but not at the scale it could be.

 

[BillKVMotorCo]

Just helped my son buy a Honda from a dealer three hours away from us. Took <15 minutes to wrap up the deal. Plus, they delivered it, too.

Sure, not all shoppers may know the right questions to ask to get that type of experience. There's also nothing stopping dealers from marketing themselves that way, either.

I'm sure this is happening, but not at the scale it could be.

This story is becoming more and more prevelant. Finance guys are reall happy about it.

 

[Jon Singo]

Just helped my son buy a Honda from a dealer three hours away from us. Took <15 minutes to wrap up the deal. Plus, they delivered it, too.

Sure, not all shoppers may know the right questions to ask to get that type of experience. There's also nothing stopping dealers from marketing themselves that way, either.

I'm sure this is happening, but not at the scale it could be.

This is how it should be. Build your dealership's process to be accommodating while still maintaining profitability. Keeping in mind not everyone will want to buy a car this way, you still need to cater to those who do.

 

[zande299]

Just helped my son buy a Honda from a dealer three hours away from us.

Not all heros wear capes, and not all dads are this cool.

 

[Baron Ringler]

Customers dont seem to like having to negotiate in person and sit and do paperwork for a few hours. why not just give them the option to buy 100% online? Schedule a test drive, go home, purchase online and do all the paperwork, pick up the car...

Ummm...we do have that capability, but the moment the customer starts their pricing games, that is completely off the table.

If anything, the customer is more to blame for wasting time negotiating and sitting around. Nearly every day I hear this, "<Dealership Name. gave me a price of, $xx.xxx>, can you beat it? By how much?"...then they proceed to take that new number down the road, etc. Several times, they come back to me later with the newest number, maybe a hundred dollars less than where I was at previously, and I'm supposed to beat it again. How is a dealer to blame for that stupidity?

The number of times I have heard this, "What's your best price? Payment?", then come to find out the customer doesn't know what trim package they want, they've never driven the vehicle, won't give us any credit information that may help us be accurate with the information we give, won't tell us any info about the trade that will help us determine a real value (payoff as well) and you want to blame the dealers for that

Finance or lease..."Duh...I just want the lowest payment...duh..."
How many miles a year do you need for a lease..."Duh...I just want the lowest payment...duh..."
How much money down..."Duh...I just want the lowest payment...duh..."
Have you driven the vehicle..."Duh...I just want the lowest payment...duh..."
Do you have a trade..."Duh...I just want the lowest payment...duh..."

There is nothing stopping a customer from doing their research, contacting the store that was best, then buying the car. Instead, it is turned into an elaborate game of 3-card monty that somehow the dealers are blamed for.

Stop being naive and stop vilifying on something you evidently know nothing about.

 

[BillKVMotorCo]

Ummm...we do have that capability, but the moment the customer starts their pricing games, that is completely off the table.

If anything, the customer is more to blame for wasting time negotiating and sitting around. Nearly every day I hear this, "<Dealership Name. gave me a price of, $xx.xxx>, can you beat it? By how much?"...then they proceed to take that new number down the road, etc. Several times, they come back to me later with the newest number, maybe a hundred dollars less than where I was at previously, and I'm supposed to beat it again. How is a dealer to blame for that stupidity?

The number of times I have heard this, "What's your best price? Payment?", then come to find out the customer doesn't know what trim package they want, they've never driven the vehicle, won't give us any credit information that may help us be accurate with the information we give, won't tell us any info about the trade that will help us determine a real value (payoff as well) and you want to blame the dealers for that

Finance or lease..."Duh...I just want the lowest payment...duh..."
How many miles a year do you need for a lease..."Duh...I just want the lowest payment...duh..."
How much money down..."Duh...I just want the lowest payment...duh..."
Have you driven the vehicle..."Duh...I just want the lowest payment...duh..."
Do you have a trade..."Duh...I just want the lowest payment...duh..."

There is nothing stopping a customer from doing their research, contacting the store that was best, then buying the car. Instead, it is turned into an elaborate game of 3-card monty that somehow the dealers are blamed for.

Stop being naive and stop vilifying on something you evidently know nothing about.

We also run into online customers who attempt to negotiate on price even though they say they don't want to have to. When we just keep it simple and say, "Our best price is..." and move the conversation forward, we don't find as much resistance to our best price philosophy as many might think.