One of my favorite calls receive are from former customers or friends who know I am in the car business. They call asking me how they should buy their next vehicle. I no longer work at the dealership, but it is so much fun for me to help my family, friends, and former customers to purchase a vehicle as an independent third-party voice.
Recently, a friend of mind that was looking for a new truck called and asked if I could help. As we talked about some of the features he wanted, I started thinking that taking advantage of a manufacture or dealer certified pre-owned vehicle might be a great way for him to buy his next truck. The certified pre-owned programs that he could take advantage of would allow him to get a better interest rate, more vehicle warranty, and an overall lower payment than buying a new truck.
After discussing his options, I started researching the best truck to meet his needs. However, I was 400 miles away and could not physically be there in person. Therefore, all of the leg work had to be done on the computer. This created a major hurdle for us finding a certified pre-owned vehicle that was a good fit for my friend. If I had been closer, I could have gone in person to dealerships and looked at trucks. I would have been able to see the point of purchase materials that are often displayed by the dealer to show off the certified pre-owned vehicle on the lot. In fact, most OEMs have stringent requirements for signs, stickers and decals that must be placed on a vehicle on the lot if it is certified.
My first couple of searches on third-party sites was very frustrating. I was able to enable the certified pre-owned search filter; however, I noticed that some dealers were not even correctly classifying their certified vehicles. I could find a truck that would likely work for my friend, but I could not tell if the unit had any OEM or Dealer certified programs attached to it.
I began to think how unfortunate the situation was for the dealership. Dealerships are spending thousands of dollars in additional money for the certified program on their vehicle and no one can see it online. Dealer expenses that include: more reconditioning of the unit, additional time with paperwork and merchandising, and additional cost of the warranty coverage.
Luxury vehicle lines like Mercedes-Benz, BMW, and Lincoln all have certified pre-owned programs, which can cost the store over $1,000 just for the certified warranty. This does not include all the additional money that has to be spent to bring all maintenance up to date and additional higher level recondition requirement costs. In some instances, the vehicle could have incurred the dealership an additional $3,000 or more to certified than a non-certified competing unit.
After a long exhausting search that spanned over the course of two weeks, I was finally able to find a dealer that had the right truck for my friend. How did I find it? Firstly, the vehicle had an image overlay on the truck with the dealer information, and most importantly, the certified pre-owned logo. Secondly, the vehicle was correctly listed in the certified pre-owned listings category of the third-party listing site. Lastly, the description of the vehicle clearly identified the unit as a certified pre-owned vehicle with the benefits of the program.
If you are reading this thinking that your certified pre-owned cars could use a facelift, the good news is that most of the merchandising can be automated through your vehicle export providers. It just takes a little bit of work and time to get it going.
Here are the items that I recommend every dealer do to help bring their offline message to their online shoppers.
Here are some examples of good certified pre-owned merchandising:
A little bit of effort can go a long way in bringing the same offline experience to your online shopper. The great news is that most of this is easy to setup and automate.
Matt's passion is to provide dealership professionals direction on how to increase unit sales through the use of better marketing and sales tools. Matt's dealership knowledge stems from working inside a thirteen-store dealer group for ten years and knowing what works first hand. He has worked all the variable operations positions at a dealership and ultimately ran multiple stores as the General Manager over the course of 10 years. Matt is well versed in tools of the digital marketing trade including Google Analytics, Google Adwords, SEM, SEO, website optimization, lead generation add-on tools.
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