FRIKINtech Let your customers know you will buy their car

Alex Snyder

President Skroob
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May 1, 2006
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It is amazing what customers will do when they know something exists. It is also amazing how much dealers assume because we live the car life daily.

Customers don't know you buy cars. And you think every customer knows you will buy cars off the street.

I can't tell you the number of dealers who told us, "we have a sign in our service drive" or " a sign in front of our dealership," letting customers know WE BUY CARS but were barely acquiring any off the street. And then they put our software in to all of a sudden... magic! Used vehicle acquisitions are now happening from the service drive and sold database without anyone having to make a cold call or walk into service.

n 2022 30% of total deals with some kind of FRIKINtech attribution were for vehicle acquisitions. That’s right – straight purchase, no trade-in. I think many of those were ordered vehicles, but the dealer got the used car to sell instead of waiting for their new car to arrive.

Thus far into 2023, that 30% has remained consistent. 1 in 3 deals is a used car acquisition. It will be interesting to see if this adjusts as new cars become more available. I think it will continue to surprise us while used car values are above pre-COVID valuations.

If you aren’t using us to automate this for your loyal customers (making them more loyal), at least consider a strategy to grow your street buying.
 
@Alex Snyder can you provide any example dealers using your We Buy Cars service?
What, When and Where should effective messaging happen whether its online or offline?

I agree with you, we get so wrapped up in our own echo chambers, the day to day at the dealership - we all too often forget or simply ignore the fact that the average consumer HAS NO CLUE to what services their local car dealers provide. A simple sign here and there isn't going to cut it. You need FREQUENCY and EFFICIENCY/Why Buy-Sell on top of consistence messaging.

The fallout - dealers screwing up their "We Buy Cars" service, I believe comes down to a lack of process (and of course the right technology.) Truth be told, most sales managers AND sales people handle these opportunities as they would with someone looking to purchase and continue to place too many STUPID barriers between the customer and the sales person/buyer, where the juice isn't worth the squeeze after dealing with "your presence is your leverage" - "we can't give you a value until we see it in person." They want to SELL not facilitate a BUY - after-all that's what the pay-plan is based on. After mapping out a solid 1,2,3 step process, I would consider a pay structure that actually incentive's the managers and employees when they get a BUY. As in a REAL incentive, not some $25-50 spiff but maybe a percentage of the gross when it's re-sold or auctioned.
 
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@Alex Snyder can you provide any example dealers using your We Buy Cars service?
What, When and Where should effective messaging happen whether its online or offline?

The one that stands out most is a Cadillac store in Florida. They are consistent in using a talk track we provide them in regard to buying cars from the service drive:

“Hi, is [Customer Name] available? This is [Agent Name] calling from [Dealership Name]. Am I catching you at a good time?

I’m calling to thank you for allowing us to service your [Year Make Model]; we appreciate your business. I also wanted to check if you received our special offer to purchase or upgrade your vehicle. Can I answer any questions for you about the offer?”

A few key things are going on here:
  1. We automated an offer to their email and/or SMS, and know they opened it
  2. The dealer acknowledges service was done on their car and thanks them (they are your customer)
  3. Then they ask if they received the offer
Based on the customer's response, it goes one of a few ways:

  • I'm not interested at this time = you incepted the idea in my head, but I'm not ready right this second (they are now open to future conversations about using your dealership sales department again)
  • I'm interested in getting something different = they're in the market
  • I'm not really driving this car anymore = you can move them to sell that car to you

The latter two bullets end similarly: "Let's set a VIP appointment to get your car looked at - it only takes 20 minutes."

With this approach, you'll have customers selling you their cars, buying cars the usual way, building a pipeline, and maintaining loyalty. Every store is different in how they incentivize people to follow the talk track.
 
The only pushback we get when dealers are looking to implement these talk tracks is on lease renewals. We hear "most of my lease customers just want to refinance, so there isn't any point calling them." To which we say, can't you make money doing the refinance?
 
Even with all of our success with Frikintech, our experience has been during "Covid times" and a lack of new car inventory. I am confident that as new car inventory grows, Frikintech will become even more of an asset than it already is.

Thanks for sharing, Bill. I just pulled your YTD report and it looks like you're getting some decent street buys in these times ;-)
 
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The only pushback we get when dealers are looking to implement these talk tracks is on lease renewals. We hear "most of my lease customers just want to refinance, so there isn't any point calling them." To which we say, can't you make money doing the refinance?
That's silly. We just made $4,800 on a lease buyout.