Now that automotive retailing on the Internet is reaching a level of maturity that F&I did three decades ago, we have some good data points that really make the case for how important third party Internet leads are for dealers. In 2003, auto dealers used 12 million Internet sales leads. Assuming 17 million new vehicles sold in the U.S. annually, Internet leads, with average close rates of 10%–15%, were responsible for approximately 7%–11% of all vehicles sold, or 1.2 – 1.8 million new vehicles last year.[1] 

Another important fact is that the majority of car buyers (over 57% according to Ward’s Dealer Business) who submit these leads are doing so at any of the hundreds of third party websites that have auto content; and not at dealers’ own or OEM-owned sites.  The reason for this is that many online consumers want to put what they perceive to be an objective third party between themselves and a dealer or OEM.   

Naturally, a disconnect occurs if a consumer submits a lead at a third party site and there’s no dealer working with that service (or third party site) to respond to that consumer. The result? The consumer is ignored, or worse - he or she opts to select another vehicle (your competitor’s) and does get a response from that dealer. 

During the last quarter of 2003, we found that when consumers submitted leads for Toyota vehicles, for example, and there were no Toyota dealers in the consumers’ market areas signed on to receive those leads, 17% of the consumers opted to submit a lead for a Ford instead and another 27% submitted a lead for a GM.  Essentially, a dealer that does not accept leads from third party sites is equivalent to a retail floor sales person who walks an up just because they say they’re “just looking.”  In short, every up that walks into your dealership and every Internet prospect that is screened and verified by a reputable lead aggregator should be viewed as a serious buyer.

But how can a dealer cost-effectively be everywhere on the Web to respond to online car buyers? The answer: work with an Internet sales lead aggregator.  The largest third party lead providers, or Internet sales lead aggregators as they have come to be known, such as AutoUSA, Autobytel and Dealix, have a ubiquitous presence on the Web. Through partnerships with the most strategically relevant auto portals, general interest sites with auto content, and auto enthusiast sites, these established lead aggregators specialize in capturing virtually all serious car buying interest on the Web and delivering it in a satisfactory way to dealers. 

Think of the lead aggregator as an extension of your dealership – it allows you to be in front of hundreds of thousands of consumers who might not otherwise be aware of your dealership, no matter where they are shopping on the Web.  By working with an Internet lead aggregator vs. multiple third party sites directly, your dealership can launch an immediate response when a prospect shows an interest in your vehicles on the Web. And all this for about $200 per vehicle sold.