Need stat

[mollyrcurry]

Does anyone have a stat of what an average lifetime value of a dealership customer is?

 

[Jerry Thibeau]

Here's the mathematical formula if you 'd like to figure it out.


The number I've heard is 250K-300K, but I can't verify that.

 

[Eley Duke]

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View attachment 534
The number I've heard is 250K-300K, but I can't verify that.

Jerry, what the .... is that, we're in the car business, this isnt Google!! Just kidding! I agree with Jerry, I have always heard $250k-$300K, but that was about 10 years ago when I was at NADA dealer academy, not sure if it has changed.

I can tell you I keep that figure in the back of my head, but I dont ever look at a customer as that stat or worth that, a customer's value to us is priceless! If you can make a customer for life, they are worth more than the $ figure you can put on it if they are a great ambassador of your dealership. And you should treat them that way!

 

[kcar]

It's $500K.

 

[Jerry Thibeau]

It's $500K.

Perhaps for a Mercedes dealership! The average price of a new car is about 28,400.00. The aver consumer will buy a new car every 4.1 years. Based on that info, somebody would have to buy 17.6 new cars in their lifetime to equal 500K. 17.6 x 4.1 = 72.16 That means a person would have to live to be in their 90's to spend 500K in their lifetime since most people are not buying a new car before their 20's. Also consider that older people tend to slow down their purchasing cycle once they retire.