The Ward's Top 100 Internet Dealers Do It Again

May 2004 Effective Online Automotive Sales   VOLUME 3 ISSUE 5  
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The Ward’s e-Dealer 100 Do It Again
OEM Leads and Third Party Leads
Look for the May Issue of Auto Dealer Monthly
Top Dealers of 1Q 2004
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The Ward’s e-Dealer 100 Do It Again
Setting New Records in Vehicles Sold

In the much anticipated 2004 Ward’s Dealer Business e-Dealer 100 issue, associate editor Cliff Banks shared a personal online car buying story. Comparing two dealers, one who followed up with him and one who didn’t, Banks concluded, “The Internet is more than another way to advertise. It’s a medium to communicate with prospective customers.  Dealers on the Ward’s e-Dealer 100 list understand this. That’s why they’re on the list.”   

And these dealers are setting benchmarks that are inspirational to anyone working in the auto industry.  When Ward’s began its annual e-Dealer 100 ranking in 2001, the top 100 e-dealers sold 61,356 Internet-generated units.  This year, that number has climbed to 125,198.  The combination of more consumers using the Internet in their car buying process; lead providers improving their verification, scrubbing, and delivery technologies and services; and dealers improving their overall lead handling and sales processes is resulting in an unprecedented level of success. The growth in Internet sales vs. overall sales for the auto industry is like Michael Schumacher in his Formula One Ferrari passing your Grandmother in her old Studabaker... when she's backing up.

 

In fact, the growth in sales for the top 100 e-Dealers was 16% higher than it was one year ago.  And this increase in sales has been across the board for the e-Dealers. In 2002, the dealer that sold the least units on the list, sold 585. Last year, that number jumped to 748. Along those lines, Dave Smith Motors, the dealership that has topped the list for both years, sold 4,840 in 2002; and then a whopping 5,307 in 2003.

Here Are Some More Noteworthy Statistics from Ward's:

 

  • Third party sites generated the majority of Internet sales leads.
  • Close rates for third party leads went up 5%. 
  • Close rates for leads from dealers’ own sites went up 4%.
  • Close rates for OEM leads fell 2.6%.
  • Gary Marcotte, vice president of new business and e-commerce for AutoNation said 25% of their overall sales resulted from the Internet.
  • Matthew Belk, e-business manager for Hendrick Automotive Group, said 47% of Hendrick Honda’s overall sales were from the Internet. 
  • More than 80% of all car shoppers use the Internet at some point in their buying process.

These results demonstrate that the most progressive dealers are those that are willing to reinvent themselves in order to meet their potential customers wherever they are. If the first place consumers go when they begin their car shopping process is the Internet, then this is where these top e-Dealers will be. The best dealers are going beyond the point of meeting their customers half-way.  


   
                                                 

Kristen M. Stanton is the marketing manager for Dealix Corporation.

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