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NEWS
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Internet Sales Increase Dealer Groups' Profits
20%-40% of Retail Sales and Growing
Automotive News, in its March 22nd issue, reported that expenses lowered dealer profit margins on new vehicle sales by 2.8% to $1,488 per unit last year. With increased competition in the marketplace, dealers have funneled even more money into advertising in an effort to gain consumers’ attention. Last year it cost about $495 in traditional advertising to sell one car. Today that number has climbed by 15.3% to $585. This is great news for ad agencies and the mediums that sell advertising space, but not so great news for dealers. There is a silver lining in the cloud, however.
[FULL STORY]
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How Internet Ready Is Your Dealership?
The majority of dealers today realize the importance of the Internet channel in their overall sales strategy. But how well they use this channel varies widely. In general, dealers fall into three categories of Internet readiness, or how effectively they sell vehicles to Internet customers: Expert, Intermediate, and Novice. A recent study conducted by JupiterResearch entitled “Dealer Internet - Prioritizing Investments to Optimize Channel Effectiveness” distinguished dealers’ readiness by the percentage of their overall sales that are attributed to the Internet. For this survey, we followed a similar rating system. Most dealers can base their Internet readiness on the percentage of their overall sales that are generated from the Net. At what stage is your dealership? Take the following survey and we'll post the results next month.
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Winning Strategies from a Rising Star
A Conversation with BDC & Internet Director Ryan Hanlon
Ryan Hanlon was working in the payment industry, doing phone sales and calling on a lot of dealers. One of them was Jeremy Lux, GM at Miller Honda in Van Nuys, California, whom Hanlon had been relentlessly following up with to earn his business. Recognizing raw talent when he saw it, Lux recruited Hanlon over to Miller Honda in 2002. Hanlon’s first job was to build out the BDC and call centers in Miller’s Honda and Nissan stores, with the goal of building relationships, referrals, and repeat business with floor traffic customers. Little did Hanlon realize at the time, but he was setting in place the cornerstone for one of the most successful Honda Internet departments in the U.S.
Photo: Jeremy Lux (left) and Ryan Hanlon.
[FULL STORY]
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Maximize Your Internet Gross
Galpin's Secrets for Success
As the growing majority of car buyers use the Internet in their buying process, some dealers claim these well-informed prospects can chip away at profit margins. It's true the days of beginning a negotiation above MSRP may be gone, as many Internet-savvy car buyers already know invoice price. Remarkably, the most successful and progressive dealers today cater to Internet customers and make a higher gross with Internet sales than floor sales.
[FULL STORY]
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Ward’s Ranks Industry’s Top 100 e-Dealers
Internet Dealers Increased Retail Sales by 18% in 2003
This week, Ward’s Dealer Business will publish its eagerly anticipated Ward’s e-Dealer 100 issue, ranking the top 100 Internet dealers in the U.S. The big news for this year is a simple fact: these dealers increased Internet sales by 18% last year. This was an incredible feat, given that overall auto sales grew by only 3.3%. in 2003.
Ward’s April issue will show you which dealers are moving thousands of cars annually via the Internet and spotlight how they’re doing it. Don’t miss this issue!
Next week, you’ll be able to access the April issue online at: http://www.wardsauto.com
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Metro Areas with the Fastest Closing Times
From Lead to Sale in Two Weeks
How long does it take the best dealers to close their Internet sales leads? Houston, Galveston, Philadelphia, Wilmington, and Atlantic City, dealers will tell you it takes less than two weeks. The fact that dealers in diverse American cities are closing their leads within a two-week time period speaks volumes for the readiness of Internet customers to buy, as well as the improving skill sets of Internet dealers acting on that interest.
[FULL STORY]
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Previously in the Dealix Dealer Newsletter:
Internet Lead Aggregators
Upfront Pricing
Dealer Websites and Third Party Leads
Internet Department Closes 38% of Its Leads
Metro Areas with the Highest Close Rates
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