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A website vendor stating something in the territory of less than 5% is someone I would want to talk to because they're not lying.  The average dealer website converts at slightly under 3%.  I keep hearing website vendors promising crap like over 10%.  This is shady because they take advantage of your ignorance to get to these kind of numbers.  They do things like:  http://forum.dealerrefresh.com/f43/map-views-conversion-1108.html

Here's a change of thought. If you do better at increasing your traffic your conversion rate goes down (and your bounce rate goes up).  Of course you want to continue to increase your conversion rate along with traffic increases, but I have seen dealer websites look like under-performers some months because they had some sort of crazy TV advertisement, were aired on the news, or were featured in an industry magazine.

The trick is making sure you don't get hung-up on one single stat.  The picture is HUGE and you should be looking at all of it.