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Carvana Claims They Offer a New Way to Buy a Car... Hmmm...

Friends don't let friends buy Carvana. I bought a car from them, a Jeep Overland V8, trading in a pristine Challenger RTplus V8. What they delivered to me was a car with unreported flood damage. I was suspicious of the heavy freshener in the car, but I accepted delivery. What could I have to lose, right?

After they left, upon driving the car for more than 10 minutes allowed on delivery, the windows fogged up. This is the Arizona desert in the summer - our windows don't fog here. It's then I began to carefully examine the dash, which looked wrong - big clumps under the leather.

I took the vehicle to a local Jeep dealer, who looked at it for all of 10 minutes, and told me that the car had been underwater at one point. I was shocked. I went home and studied the carfax details, to discover that the car was in the wrong place during hurricane Irma - meaning it was dead in the thick of flooding. I figured this out just from where it was serviced. Then I examined the unconnect system, and used the Nav to go home. The address was in Irma - on beachfront property.

Calling Carvana they told me that their 150 point inspection prevents this from happening, but as they, "Buy all cars from auction" it could happen. Returning my vehicle I would be responsible for the pickup charges for my car, and delivery charges for the other car.

What angers me most is all this nonsense about a better way to buy a car. The best way to buy a car is drive it, and if anything seems the least bit out of sorts - don't buy it. Nothing at all beats buying a dealer certified pre-owned, something Carvana can't even offer.

I ate the total of $700 for having gone through the process with them, happy to get back my Challenger. But now, I an only tell people this:

"Friends don't let friends buy Carvana."

Carvana Claims They Offer a New Way to Buy a Car... Hmmm...

Just bought from Carvana. Good experience. Talked to them on the phone a few times before purchasing. Never had to wait more than 10 minutes and had no problems getting the number so I don't understand those comments at all.

Personal opinions and anecdotal evidence aside, this article is written like fake news. It’s funny and sad to see a set of yet another industry's Insiders poo-pooo the freight train that is new business models selling on the Internet. Amazon did this to wal-marts. Uber did it to taxis, Carvana will do it to the megacar plea and dealers. But that’s my opinion. On to some of the BS from this article:
First point, regarding skipping the dealer experience but oh so smartly pointing out the Carvana is a dealer. Your intentionally walking the reader past the main points of Carvana: online, no haggling, cheaper, and a seven day return. No eBay doesn’t do that an no cheesy dealer does either. As for buying completely online and delivering to your house. Sure maybe some dealers do that but they don’t center their news around that and the industry as a whole doesn’t have the credibility here. Only bullshit here is that coming out of your own pen. Fake news #1.

Second bit. I’m not sure what the hit piece comment is regarding the family lineage of the CEO. Yes he comes from a family that is in the car industry. So? You write in a nasty way so it must be bad thing. We see were you are coming from and the narrative you are paining. Fake News #2
Finally, as I realize I’m writing too much on an 18 month old post... this article. Wreaks of the last few stale breaths of a dinosaur business model that will not be missed. Laws won’t be able to protect the shitty car sales process any more and folk like the author will reminisce of the times they could sell the public on the $250 markup bologna. Good ridden.

Carvana Claims They Offer a New Way to Buy a Car... Hmmm...

Carvana's website does NOT display or offer a phone number by which a potential customer might call to get information. Seems as though they'd rather not speak with customers, just 'meet' them on the Internet. As far as I'm concerned, if they want no person-to-person contact, then I am not a customer! Simple as that!

Carvana Claims They Offer a New Way to Buy a Car... Hmmm...

This has been a bad experience since the beginning - and unfortunately, it's not over. My coworker had a great experience with Carvana, so we decided to give it a try....And even if you have
a good experience, be prepared to have to wait hours for a call back on even the smallest issue.....We loved the first car we test drove - a 2014 Expedition - but it had a slow leak in the front tire. We notified Carvana and made arrangements for them to pick up the car. In the meanwhile, we found that my husband's financing terms with Carvana were much better than what I had been quoted. We asked that when they returned to car to us, we switch the financing to him. Then Carvana lost the car. Then Carvana said the car had been promised to someone else. Then Carvana said we could get the car..... The car was returned to us 7 days later. That afternoon when we went to drive it, the low tire pressure light was on. When we called Carvana about the tire, they said that the slow leak had been noted but since we had decided not to purchase the car (not true) they had chosen not to fix it. (Even if we had decided not to purchase the car, it was a known defect that they chose to ignore.) We were told that we'd need to take the car to an ASE certified technician and that Carvana would cover the repair - including the $50 deductible. Of course, to find an ASE certified technician, I had to log into their 3rd party warranty site using our Carvana paperwork. Guess what - Carvana hadn't entered the paperwork, so we had to wait another 24 hours. After taking the car in, the mechanic called and told us that Carvana had refused to pay for the tire and that he'd discovered a "significant" leak in the power steering line. My husband and I tried calling Carvana back beginning at 3pm today. Finally, after 7pm, someone chose to call us back. In a way, the fact that they didn't fix the leak was a blessing since the mechanic found the power steering leak. Carvana's unwillingness to accept responsibility (they continue to call this a miscommunication) is mind boggling. We still haven't gotten confirmation from Carvana that they are paying for the tire, but you better believe that we will never ever darken the door of this slap dash sorry excuse for a dealership again. As my husband said, we're going back to Carmax where they treat us like customers, not suckers.

Carvana Claims They Offer a New Way to Buy a Car... Hmmm...

I have bought more used cars in my lifetime than I care to admit. I have purchased three with Carvana and could not be happier. When the dealers start letting me test drive for a week, then test drive another and another for a full week, or undo any deal in seven days and not even ask the reason,.... Then I may return to the dealer. I would also want them to charge the same dealer prep fees as Carvana (zero dollars), let me bypass the vin etching, paint protection, fabric protection, credit life, gap insurance, lifetime oil changes, etc. without a finance manager whining and wringing his hands. I also want a free 100 day warranty on my vehicle regardless of mileage or model year. Yeah, I think this is a new way to buy a car and I’m an old guy that finds it refreshing. I am looking for a car for my granddaughter now, at guess where?

Carvana Claims They Offer a New Way to Buy a Car... Hmmm...

I live in central PA so there are no Carvana sites near me. In fact, the closest is near DC, about 90 miles away. I found a 2015 Kia Forte5 SX with the turbo with every option available for that year and under 17000 miles on it on Carvana and I reserved it.. Mind you I was trading in a bottom of the line 2017 Forte with about 11,000 miles on it which didn't even have cruise control, (nor was it available in 2017 on a manual transmission model), so I was impressed that they offered me 13,000 in trade.

I was pre-approved and after sending in the required paperwork, (license, proof of employment/income and insurance), my car was locked down so no one else could get it. I found out it was a Texas car, just off manufacturer lease about 8 weeks prior and was at one of their Texas sites. All this happened within less than an hour. After I chose the site nearest to me, they scheduled a transfer for the next week, and stated they needed 3 days to prep the car for viewing after it arrived in DC and I would be contacted when it was ready to look at. Mind you I had the option of having it delivered or going to a vending machine to pick it up, and of course I picked vending machine.

On the 3rd day after arrival, (you can track the progress of your car when you buy from them, much like you track a UPS package), I got a call from them letting me know it would be ready anytime after 1 that afternoon. It was a Thursday, so I scheduled for Friday. I had my best friend go with me because I wanted his input. He has been working at one of the largest auto auction companies on the East coast for years so he was more versed in used cars than most people.

When we got there. they gave me the keys and asked I be back in 30 minutes to give them my decision. My friend and I drove it for about 20 minutes, tried it on the highway, in traffic, did some high speed traffic maneuvering, both impressed by how zippy the car was in traffic and how well it held the road in turns. It had been detailed immaculately. It looked like new, but what's more, it even smelled like new!

He told me it was in great condition, but he thought the price could be lower. Then I told him that price was inclusive of taxes, prep, tags, title, etc etc plus it came with a 7 year 100,000 mile warranty which covers a lot more than the manufacturers already excellent warranty and a 7 day 500 mile no questions asked return policy ( think of it as a 7 day test drive).. He told me if he and his wife had been looking at a smaller car, he wouldn't have hesitated to buy it.

Contrast that to when I had bought the car I traded in, from the dealer. My test drive was around the block, with the salesman in the back seat, and they lied repeatedly about the best price they could do. I know what you're thinking, new car dealer lie to sell a car? Unthinkable, outrageous, right. But everyone knows they are worse than lawyers when it comes to telling the truth. Anyway, that process lasted an entire week while they 'worked' on getting a better deal. Numerous phone calls and faxes later they finally met my target and I went to pick it up. That in itself took all day too.

Carvana closed the deal within 24 hours, but that was only because I did my shopping at around midnight when I had finally made up my mind. They on the other hand, had called me back with a firm decision at around 9:30 the next morning, so technically they only took 9 1/2 hours (although since they open at 8:00 AM ET, it was in reality only 90 minutes)

Maybe all you haters had a bad experience or maybe your're new car snobs who expect a new car experience for used car prices or maybe, you work for new car dealers and you're giving 'fake news' stories to discredit the competition, This particular site was also the one where a local favorite restaurant was given negative reviews by people who had never even been to it but just because they 'heard' it was a terrible place by competitors- what a surprise there.

I could go on and on about the negatively skewed ratings sites, but here are several things to consider: 1) How do you know if the rater has actually been there, 2) How do you know what the rater is accustomed to, 3) How do you know if the rater has personal reasons to see the rated facility fail or not,

Remember that first and foremost, value is defined as the perception of usefulness in providing a desired item or service. I have a decent job making just north of $30/hour but I'm a twice divorced sexagenarian whose previous spouses decimated any chance of ever having good scores again, and in my instance, Carvana was infinitely better than the alternative buy here pay here rip off joints people in my situation normally are presented with.. They also deliver what they say they will.

If I have any reservation at all about my purchase, it's that the stated color of 'blue' while technically accurate (as defined and listed by the manufacturer), but in person it's more gray than blue. Oh and a 200hp/ 195ft/lb torque engine makes for difficult starts in the winter :) But those are most definitely NOT the fault of Carvana.

Carvana Claims They Offer a New Way to Buy a Car... Hmmm...

I just recently bought a car from carvana. Preapproval was simple and easy. Many cars available to select from. I had already knew I wanted a Maxima platinum fully loaded. I had already drove one while renting a car. Plia I'm a Nissan fan and have owned Alromas and Pathfinders. So I knew how a Nissan would handle. I did look at other cars offered and then went to test drive similar ones locally at Carmax. I searched within a 500 mile radius of my home to compare Maxima platinum to the one on Carvana site that I selected. Carvana was the lowest. Car was an off lease low mileage dealer maintained car. It matched 9 out of 10 features I was looking for. I didnt have to haggle with the finance guy. The preapproval process was a soft pull. Most dealers want to throw your credit application to the wind and have a ton of hard pulls. I went to Capital one for a preapproval (it's my bank and credit card company) Andy local credit union. I went with Carvana in house finance since it was simplest and no money down. Once I get my registration, I'm refinancing with Capital one for the lower rate since Capital one wont work directly with Carvana. But they will refinance a carvana/bridgecrest loan.

I had to call customer service to change pick up time. I got someone immediately and they spoke English. I ended up getting to Carvana early. Their vending machine wasnt working properly so I didnt get the big whoopty due, selfie stuff. It wasnt required though. Staff was helpful and attentive. Evweyoje is scheduled at certain times so there isnt a ton of people in the lobby. It was me, a single guy and a couple during our time. They only had 3 bays for cars once it came out the vending machine.

Overall for me it was great. I already knew what I was getting, knew what the car was worth and didnt need to deal with a shady finance guy who wanted to overinflate a loan. I would buy again from Carvana.

I'm female so I always feel like the car salesmen are taking advantage of me.

Only downside about Carvana is that they offer referral codes for $500 off sticker price if you get a code from a previous Carvana buyer, this option does not work in my state. Also I didnt ask about military discount or pricing. I'm a veteran but I felt like I paid what the car was worth. It was about $3000 cheaper than other locals and my car came with a few bells and whistles that I was expecting such as lighting package and some other things.

Carvana Claims They Offer a New Way to Buy a Car... Hmmm...

Horrible. DO NOT BUY FROM CARVANA!

Purchased a car in April and paid cash. Six weeks later they still did NOT deliver the registration and plates and was stuck with a car with temporary plates that they gave me that were EXPIRED.

CEO won't take calls, wait times on their support line is horrible and they lie. Told me repeatedly plates were shipped...and they were NOT.

If you buy from Carvana you will end up with a car you can not drive while you fight with them to get registration and plates delivered before your temporary registration expires. NEVER AGAIN. I am bringing litigation against them.

Carvana Claims They Offer a New Way to Buy a Car... Hmmm...

I loved Carvana I did return 2 cars and kept the third. It was a very good experience and I never felt stuck. I could always back out completely if I didn't feel comfortable. Switching cars was 10 minutes on the phone and a few days later the new in was there. I would recommend to my friends.

Carvana Claims They Offer a New Way to Buy a Car... Hmmm...

I’ve bought two cars from carvana and have been extremely happy. They gave me the best value on my trade in and I didn’t have to argue with the finance guy.
Me: I don’t want an extended warranty.
Finance:What if I can lower the interest rate?
Me: I don’t want an extended warranty.
Finance: What if I lower the price?
Me: I DON’T WANT A F@&$ing EXTENDED WARRANTY!!!!

Carvana Claims They Offer a New Way to Buy a Car... Hmmm...

Cavana has been great. I hate going to dealerships and wgen i did they tried to sell me a car that has been in two accidents and both were a DUI arrest. Im in kaw enforcment and ran a back ground on the car, really wasnt worth my time. The car we got from Carvana was great fully loaded and was a lower price then the other car from the dealership. I stand by this company and give 5 stars for making it worth my time.

Carvana Claims They Offer a New Way to Buy a Car... Hmmm...

Had a horribke exoerience with Carvania. They postponed delivery 4 times for issues w ith the car, damaged in transport. They offered me $250 for the delay. Was finally scedule to recieve and get a call the day before saying another issue on a car with only 8500 miles. Final straw, cancelled the deal. Next day went to dealership and walked out with a great car 2 hours kater. Carvania is terrible

Carvana Claims They Offer a New Way to Buy a Car... Hmmm...

Zero stars is too good for this horrible company. I have purchased 2 vehicles from Carvana with no issues. This third time was not a charm. I am not bitter about not being able to finance through Carvana's in-house, but I am upset how I reserved one vehicle and over 6 weeks later it is not available due to being repaired. Okay, no biggie, I chose another vehicle and was asked to make an outrageous down payment because my $70k+ salary was not enough to be financed for a third vehicle in over 3 years dealing with Carvana. I was told by underwriting to do a 3rd party finance and then boom I noticed a $100 charge for the vehicle that was ready for purchase that I was unable to finance through Bridgecrest. I am done with Carvana and I hope this company tanks.

Nostradamus (Cliff Banks) joins Jeff & Alex on Refresh Friday

March 30th at 1:00 PM EST Cliff Banks, automotive's Nostradamus, will be sharing his insights on Refresh Friday.  Tune-in on the DealerRefresh Facebook page for the live broadcast.

We plan to talk about

  • CDK's Fortellis project
  • CDK lawsuits with Authenticom & Cox Automotive
  • NADA
  • 2018 Acquisitions
  • Hot companies to watch
  • Digital Retailing
  • Dealers are not going away anytime soon

Join the fun.

If you can't make it the video will be available on Facebook and later on the DealerRefresh YouTube channel.

 

Dominion contracts CRMSuite (formerly iMagicLab) as CRM solution

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Richard Keith Latman of CRMSuite

Dominion has struck a deal to license the CRMSuite product from Richard Keith Latman.  Does this mean Autobase is going away?

Read the press release from Business Wire

Dominion Dealer Solutions announced today the launch of its new CRM, Dominion VisionTM. The most advanced automotive CRM in the market today, Dominion Vision combines the most intuitive CRM interface in the market with customized reporting and consumer-focused communication tools to create an easy-to-use CRM that will satisfy customers, sales reps and management. Powered by CRMSuite, Dominion Vision is the result of a business partnership designed to integrate CRMSuite’s state-of-the-art CRM technology with Dominion Dealer Solutions’ portfolio of high-performance digital marketing and data-mining software offerings.

Dominion Vision CRM eliminates conventional CRM thinking by combining ease-of-use functionality with user-tailored dashboards. Intuitive technology erases the need for traditional action plans and lineated work flows. Dominion Vision learns about your customers and their preferences – helping your sales people connect with prospects using the best possible method at the best possible time. With real data at your fingertips, Dominion Vision is a true business intelligence tool. Mobility for all users is available via both a tablet-friendly interface and a downloadable mobile app.

“There are many CRMs in the marketplace but Dominion Vision is truly different. From our rich CRM legacy with AVV and Autobase, Dominion has always been committed to the dealer – using the latest technology to build simple and elegant solutions,” says Jack Ross, president of Dominion Dealer Solutions. “Now all of our tools, from DMS to CRM, equity mining to digital products, can work together to help car dealers sell more cars.”

Dominion Vision also includes proactive communication using machine learning to track consumer communications preferences in the form of a virtual, personal assistant, “Olivia.” No longer will customers fall through the gaps. This feature will scan the customer database on a regular basis and communicate via email, text or voicemail with prospects who have not been contacted. Customer responses will be forwarded to the salesperson to re-initiate sales and service communication.

Get a firsthand look at our NADA Booth #3716C. To schedule a presentation of Dominion Vision, please call 877-421-1040 or visit www.transformyourcrm.com.

About Dominion Dealer Solutions

Dominion Dealer Solutions improves dealers’ lives by developing advanced technologies including: reputation and social media management, responsive websites, digital advertising, SEO, SEM, multi-channel marketing, and custom market reports. Coupled with award-winning lead management, inventory merchandising, equity mining, customer relationship (CRM) and dealer management (DMS) solutions, Dominion redefines automotive retail by delivering first-class customer experiences for today’s automotive dealerships. Based in Norfolk, Virginia, every OEM and more than 10,000 U.S. dealers depend on Dominion’s foundation of innovation, integrity, excellence and teamwork to provide them with results at every turn. For more information, visit our website, like us on Facebook, LinkedIn or Youtube, or follow us on Twitter.

About Dominion Enterprises

Dominion Enterprises is a leading online marketing and software services company offering client solutions across multiple business verticals. Our B2B cloud SaaS solutions directly support clients in establishing their online and mobile brands, generating leads, and managing customer relationships. Our B2C web and mobile portals serve the housing, franchise and travel markets and include popular sites such as Homes.com. Dominion Enterprises is headquartered in Norfolk, Virginia and has offices across the U.S.

How the Right Employees Can Build Trust and Loyalty in YOUR Dealership Brand

According to a recent study, 81 percent of recent car buyers polled did not enjoy the car buying experience, with 29 percent indicating they do not trust salespeople.

The car sales process can’t simply be about pushing cars off the lot if you want to remain competitive. Instead, you need to understand your buyer, address their needs and establish a personal connection with each customer.

Brick-and-mortar dealerships have an advantage over Amazon, Carvana and other online retailers fighting to establish their place in the automotive industry, as traditional dealers have the built-in ability to personally connect with customers. However, your dealership is only as good as the people you have working in each department – and their capacity to make meaningful connections with your customers.

Below are a few ways to optimize your human capital, ensure your employees are positively representing your brand and maintain your competitive edge over online retailers and other disruptive business models. 

Shift Your Sales Positions to Product Specialist Roles

An increasing number of automotive dealerships are implementing product specialists to fill roles that were previously sales-focused. While traditional sales roles likely won’t go away anytime soon, product specialists act as brand ambassadors and experts, instead of salespeople who, in the traditional sense, spend much of their energy getting buyers to sign on the dotted line.

With the transition to product specialists, dealerships are seeing numerous benefits – from improved customer experience and higher sales margins to lower employee turnover.

In 2014, Florida-based dealership JM Lexus saw a 27 percent sales increase over the two previous years after replacing sales associate positions with product experts. Other dealerships have followed suit and adopted the product specialist model to help provide their customers with a smooth and transparent sales experience.

In addition to building customer trust, the shift from sales to product specialist roles can also help you attract more quality employees. Today’s job seekers have become wary of the commission-based salaries traditionally associated with many dealership sales roles. So, many dealerships have switched from commission-based pay plans to base pay plus bonus plans - for sales and product specialist roles. Not only will this evolved pay plan help your dealership attract top talent who might not have considered a commission-based plan, but it will also take the commission pressure off your existing employees - allowing them to focus more on your customers’ needs.

Expedite Car Buying

The majority of today’s car buyers spend a significant amount of time researching their potential purchase online – 14 hours, on average. Most consumers research online because it’s faster and more convenient than spending a whole Saturday in the dealership, as customers did in the past. When customers do visit a dealership, they expect to drive off the lot quickly, rather than spending their entire day shopping for a car.

Product specialists are better suited for this “new normal.” They can answer any additional questions the well-informed customer may have, test drive the car with them and help the customer drive home in their new car as quickly as possible.

Some dealerships have also opted to combine their sales and F&Ifunctions of the business, to help expedite the buying process and get customers out the door faster. Although a combined job position calls for a more talented job candidate, there are many benefits to adding this dual role to your dealership.

Not only will a combined sales and F&I role drastically reduce the amount of time buyers spend completing their purchase, it also increases brand trust. By designating one person to fulfill both roles, that employee can more easily build a relationship with customers. Customers will not be handed off from sales to F&I – instead, they will be working with one employee throughout the entire process.

Build Customer Loyalty by Integrating Technology

To help grow customer relationships, dealers are finding ways to leverage technology to make car buying and post-purchase services more convenient. Some sales and service managers have been using mobile technologies to send their customers notifications when their vehicle needs an oil change or other routine maintenance. Dealers can also use this platform to advertise discounts and promotions, driving loyalty, engagement and retention.

Hire the Right People

Along with modifying your job positions, speeding up car buying and integrating technology into your sales process, make sure you are constantly hiring quality candidates to maximize your dealership’s potential. Your talent represents your brand on a daily basis. To find the best candidates in any economic climate,download our eBook, "Planning for People in Retail Automotive."

Who? How? A Closer Look at Inquisitive Paid Search Traffic

One of my favorite techniques when auditing automotive dealers’ paid search spending, is to compare the search queries to keyword purchases. The search queries are the exact phrases that visitors are typing into Google (or other search engines). I find it useful to compare the search queries to the actual keyword(s) the dealer is purchasing. For instance, if the dealer is purchasing “Toyota Tacoma”, but the consumer is searching for “Toyota Tacoma stuck in mud videos", then I want to help the dealer avoid paying for those clicks.

I find far too many dealers with runaway paid search campaigns, where the dealer has asked to rank high for various search queries, yet no one is paying attention to what the person is searching for, or what happens once the user clicks to the dealer’s website. Far too often, the paid search agency is presenting high level campaign results that can mask poor performing keywords or keyword groups.

As you’ve read from my prior articles, dealers truly need to start their search-engine marketing with a strong list of keywords and phrases they would like to rank for. They also need to massage that list with a strong negative-keyword list that will make sure their net is not cast too widely.

Dealers may know the keywords they want, but they also need to know what types of searches they need to exclude. Many times, they will want to either exclude vehicle make/model/years of vehicles they do not sell, or instead change their search-terms to more long-tail searches. For instance, instead of purchasing “Toyota Tacoma” they are purchasing “2018 Toyota Tacoma TRD Pro” (directed to an appropriate model landing page, or VDP).

"Far too often, the paid search agency is presenting high level campaign results that can mask poor performing keywords or keyword groups."

A great way to start building a strong negative keyword list and learning more about the type of questions consumers have, is scouring for “inquisitive search terms”.  What are inquisitive search terms?

They are the famous: who, what, when, where, why and how. You simply go into Google Analytics, and choose the Acquisition menu on the left. From there you select AdWords (you must have AdWords connected to Google Analytics first). Finally, you should choose “search queries”. The Search Queries are the exact searches that consumers have typed into Google, that resulted in them clicking one of your paid ads. For your Secondary Dimension choose “keywords” so you can compare the search query to the keyword you purchased.



Although it may be frustrating to see the type of traffic you are paying for, it can also be very insightful to see what they are looking for.  By comparing the search queries to your purchased keywords, you can get some ideas on future negative keywords to include.  At the same time, you may get some ideas on website content you may want to create.  For instance, if people are searching for answers on how to properly program their Ford Sync systems, you may want to create educational pages on your site, that also make it easy for the consumer to schedule a service appointment.

Give it a try, I promise it will be insightful, and if used properly will improve the performance of your paid search campaigns.  Contact at me if you have any trouble following the instructions above.

 

If It Does Not Fit, Don’t Wear It.

“Clothes make the man. Naked people have little or no influence on society.” –Mark Twain

As you have already noticed, nearly everyone in the medical field has made the move to wearing scrubs, paper pushers and surgeons alike. My wife occasionally wears them for her profession and loves the pajama-like feel. The other day, I was struck by a young professional’s choice of medical attire. Their scrubs were so tight that you could accurately count their goosebumps. I thought to myself, why the hell didn’t you buy the size for your body?! 

Then it occurred to me. Some people are petrified to admit that things no longer fit. If car dealerships needed to shed their ill-fitting clothes, most would be forced to go naked...

Hoarder’s Closet

Some dealerships hold onto everything. A box full of VHS tapes? Check. A threadbare t-shirt bought during the Clinton administration? Check. Wood paneling in the service lounge? Check. 1986 Dodge Omni GLH? Check. These dealerships will not let go of anything because they might need it down the road. On the admirable side, they’re extremely loyal. On the pitiful side, they are extremely loyal. They won’t let go of ADP/CDK because, during the Blizzard of ’78, the sales rep (long since dead) stayed at the owner’s house. Bob, AKA “Creepy Bob,” is on his sixth lateral move in five years because he arrives early every day (presumably, to drink coffee and harass the female staff). Sure the Budget Lot has never turned a profit, but someday the fresh graffiti on the cars might attract more visitors. Luckily, that Omni GLH is buried in training binders. It’ll be perfectly preserved for when the lights go out.

Aspirational Size

Many dealerships have a self-determined ideal size. At one point, they found their peak and determined that they had the magical size for eternal success. All their friends complimented them on how good everything looked. But, as their business changed (as it inevitably does), they had to get bigger. They had to add staff, inventory, technology, and that new OEM mandated façade. But, packed deep in the staff and management’s psyche, there is an obsession to squeeze back down into that ideal size. Never mind that inventory gets more complex by the day, the way people shop keeps changing in unpredictable ways, and that smoking indoors is illegal throughout most of the US. Someday, that old stuff will fit again. Yes, those pants do make you look fat.

Emaciated Chic

While some dealerships remember what they feel is the right size, others make it a mission to keep things trim. Then trim down some more. These dealerships wonder why they can’t compete and why turnover is so high. Their accountant (who buys from the Audi dealership down the road) thinks they are doing great. They feel great, except none of their technology is compatible with modern devices, their websites make Craigslist look busy, and their business is solely predicated on walk-in traffic. They had their best year in 2001 (along with the rest of the industry), and have kept expenses super lean ever since. All their 20 Group friends ask why they look so sick. Their response is that they still need to lose a few pounds. RIP, Karen Carpenter.

Busting Seams

Another group of dealerships, simply cannot contain their girth. They read a few articles about the most successful dealerships, and wanted to match them dollar for dollar, pound for pound. They spend four times more than what they should (probably with 4X Digital) on advertising, making sure to use only the most expensive vendors. They never ask where their money is going. They redesign their websites every six months, while going through a new CRM every two years. The staff won’t be fired because everyone knows it. Anyone who cares about them tells them they need to trim back, but those people are just haters. If it works for an exclusive luxury group near Silicon Valley, then it must work for their rural Mitsubishi Kia dealership. RIP, Mama Cass.

Rightsizing

We’ve all been told throughout our lives that we’re supposed to adapt. If that’s the case, then we are bound to outgrow things. Periodically, that means permanently retiring those skinny jeans. On other occasions, that means bidding adieu to team members. We expand to build our ranks and bulk up to get stronger. We shed weight to stay healthy while making changes to our habits to prevent us from sickness down the road. It is that adaptability that allows us to sustain.

Don’t let external labels hold you back from looking and being your best. One company’s XL is another company’s Euro medium. Just because everyone is choosing a particular vendor, doesn’t mean that it’s going to be right for you. Just because you’ve always had ten salespeople doesn’t mean that you don’t need more or less to support today’s business. Just because certain pieces of technology and processes were in fashion three years ago, doesn’t mean that they work well together today. Keep discovering what works well with your size and philosophy. If it no longer fits, stop wearing it.

How Your Dealership Can Compete with Amazon and Carvana

E-commerce has increasingly become a platform for big-ticket purchases like TVs, mattresses and cars. Car buyers can not only complete online before stepping into a dealership, but in some cases, they can buy cars directly from web-based vendors, cutting out the traditional dealership entirely.

Sites like Carvana allow customers to buy a car online and then pick it up, or even have it delivered to their driveways. Meanwhile, behemoth retailer Amazon has started testing online car sales in Italy and recruiting top car executives in Europe – both signs that the e-commerce giant is positioning itself to enter the automotive sales industry in a big way.

Additional disruptive forces for traditional dealerships include the development of self-driving cars and vehicle subscription services. AutoNation, the largest new vehicle retailer in the U.S., has partnered with Waymo, Google’s self-driving car partner, to provide maintenance for driverless cars. Waymo also negotiated a partnership with Lyft for the development of a driverless ride-sharing service.

Another emerging business model is vehicle subscription, which gives customers the option to rent cars on a month-to-month basis. These services are quickly adding more affordable models to their lineups, and users sometimes have the option to change what type of vehicle they rent based on their needs that month. Ford and Cadillac are two brands that currently offer subscription services in select markets.

What Does This Mean for Dealerships?

Retailers across industries are impacted by changing consumer tastes – in general, today’s consumers recoil from strong sales pitches and gravitate toward helpful, low-pressure customer service and customer education. The shift toward online car-buying and other innovative options reveals that consumers are less interested in being sold a car and more interested quickly buying — or renting — a car without the traditional sales pressure.

Despite this shift, seventy percent of buyers report that they still want to visit a dealership to see a car in person, test drive it and learn about its technological features. To retain customers who still prefer walking into a physical dealerships, it’s critical to eliminate sales pressure and adapt to consumers’ evolving preferences.

Here are a few ways traditional dealerships can remain competitive in an age of Amazon, Carvana and other emerging competitors.

Rethink Employee Priorities

Realign your approach to customer service to prioritize experience over sales. An excellent customer service experience is what will close the deal and bring buyers back to your dealership.

Because of the ease of online research, many buyers already have made a decision before they set foot in your establishment. Therefore, the service they receive is the only thing standing between your customers the final purchase. Avoid intimidating guests with high-pressure sales tactics, and don’t let the process get bogged down by involving too many employees.

A commission-based pay plan does not support this shift away from sales and toward customer experience. Take a page from AutoNation’s book, and consider adjusting your compensation structure to a base salary with bonuses. This encourages employees to focus on excellent customer service rather than sales commissions. It also makes it easier to attract and retain top talent. Many millennials seek jobs with steady pay, and they have a variety of options outside the automotive industry. If you want to stay competitive, it’s advantageous to remove the guesswork and offer a strong base salary with opportunities for sales-based bonuses.

Offer Support At All Stages

Another way to drive home your value to buyers is to offer top-notch post-purchase support. An e-commerce website can offer a list of a car’s features, but it can’t offer a face-to-face conversation about how those features work or post-purchase maintenance.

By positioning your employees as the go-to experts both before and after buyers make a purchase, you create more reasons for customers to visit your dealership. For example, BMW has started hiring product specialists, called BMW Geniuses, to help educate customers on cars’ technological features. As car features get more advanced, it becomes increasingly helpful to have designated product experts on hand during the buying process to show customers how to connect with Bluetooth, configure apps and set up voice commands.

Post-purchase maintenance is another way to differentiate your dealership from online disruptors like Amazon and Carvana. Embrace the buying process as an opportunity to build relationships with your customers. This makes customers more likely to return to your dealership when their cars need to be serviced. The more customers frequent your dealership, the more chances you have to strengthen relationships, establish value and increase after-sales revenue.

Looking Forward

Car buying continues to evolve, but that doesn’t mean your dealership has to see disruptive business models as a threat. Traditional retailers across the world are pivoting in order to compete with e-commerce forces like Amazon. By focusing on customer experience and offering support at all stages, you can ensure your dealership is poised for ongoing success.

For more information on how your employees can help you get ahead in the rapidly evolving automotive market, download our FREE eBook, “Planning for People in Retail Automotive.”

Introducing DealerRefresh Mini-Webinars and Live Web Chats

A colleague once told me, "I'd rather spend 60 minutes learning from someone who already figured out what I need to know, than spend days, weeks, or months trying to figure it out on my own." This is precisely why webinars have and continue to be so popular.

Problem is that in today's business culture, we are all struggling to find time to invest those 60 minutes here and there to absorb new lessons and curriculum. In many cases, webinars can be painful to endure, offering limited or minimal value.

Introducing, the Mini-Webinar

To help with this, we would like to introduce the Mini-Webinar - an abridged version of the original webinar recording, re-squenced and condensed to quickly get to the key takeaways of a webinar, giving you a chance to spend as few as 5-10 minutes viewing and/or listening to the most important segments within it.

We've already published a few, so if you're a regular reader or subscriber, you've probably come across one or two, and hopefully appreciate the work we put in to each one to help save you time and give you more value. You can locate all mini webinars by visiting the 'mini-webinar' tag here on the blog.

About DealerRefresh Webinars - Live Web Chats

In 2017, in response to repeated requests from dealers and sponsors throughout the community, DealerRefresh began offering Sponsored Webinars. Unlike your conventional industry webinar, however, our approach to these has been to make them more conversational, rather than presentational, which is why we advertise them as Live Web Chats.

In a live web chat, the webinar presenter is asked to come prepared with a branded presentation, but also be open to questions and interruptions from your hosts - me and Jeff, and from live attendees.

For all practical purposes, our goal with these live web chats is to capture a conversation that is authentic and empirical, informative and educational, and most of all useful, so that we may re-purpose the material in video form and in audio form, alas a podcast. The challenge of course with the podcast version is that there are no visuals.

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 Go here to learn more about the DealerRefresh Podcast[/highlight]

Before we release the mini version of a webinar, we first release a 'trimmed' edited version of the original recording. Typically this reduces the original webinar about 25%. During the live webinar, there are portions that pertain only to the live audience. By removing these portions, viewers and listeners can experience a slightly reduced version of the original webinar experience.

Even after the live web chat is conducted, you can still sign up to receive access to the full recording. The mini versions of these webinars are made available to all once they are released. The 'trimmed' versions are only accessible upon request.

Sponsored webinar guests include industry professionals, partners, and vendors who bring innovative ideas and solutions to the table, packaged as a marketing campaign and delivered as educational and informative. The goal of course is to provide our audience with key information that can be implemented at dealerships immediately and in a meaningful way.

Get Involved

To benefit from DealerRefresh webinars, keep your eyes peeled for mini-webinar video releases, and announcements of upcoming webinars. When you see one that piques your interest then sign up, whether it's to reserve your seat on the live webinar, or to access the full recording once it's released.

Also, be sure to subscribe to the DealerRefresh Podcast "In the Mix" to immediately receive not only the podcast versions of these webinars, but all podcasts we publish. Simply search 'DealerRefresh' on iTunes, Google Play, or wherever you listen to podcasts.

 

 

[INFOGRAPHIC] How Personal Connections Inspire Trust in the Car Buying Journey

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When we talk about 'connected consumers' it's usually in the context of a customer's online presence; how they expect - and in some cases demand - transparency and information, especially when it comes to big ticket items. But giving customers information and the tools they want to comparison shop is one part of the equation when it comes to the idea of a 'connected consumer' because, at the end of the day, consumers want a connection with people as much as they do information.

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The fact of the matter is, most customers already know exactly what they're looking for when they visit a lot. Either they've seen an ad online or they've already checked out the online inventory. So when they come in, they're not looking for a car exactly, they're looking to connect with someone they trust before they're willing to fork over a substantial amount of money.

[highlight color="#e2562f" font="white"]>> FREE INFOGRAPHIC: Download the PDF Today

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When customers have already done the research on what vehicle they want, they often turn their attention to researching which dealer they want to work with. 1 in 3 shoppers reported they sought out a specific salesperson within a dealership based on positive reviews. Interestingly, cross-shopping between dealerships has become increasingly common. A Cars.com study found that, even while in a dealership, nearly 30% of customers will
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continue to read dealership reviews.

Companies have said for years that people are their greatest asset, but today that adage is more important than ever. In an age where customers can look for - and purchase - cars from dealerships across the country, you need to have more than the right cars. You also need to have the right people and a way for customers to know who to deal with once they know what they want.

Dealing with a Blacklisted CRM and Measuring your Response Rate.

Skip to the point if you don't care to read the backstory.

I sit back, this morning, amazed at how unreliable email delivery is. It might be getting worse and worse every year. Due to abusive advertisers we all want to safeguard our inboxes from disgusting amounts of delete button presses. And so, car dealers suffer. Car dealers become email losers.

Sure, dealers' practicing carpet bombing marketing tactics with "free" email campaigns can absolutely be given all the "I told you so's" and "you get what you deserve's" that we care to expound. Anyway, my point is not to get lost in a you reap what you sow scenario.

My point is to reflect on a current purchase experience I am going through for my fiancé. Her lease is up soon and we've been shopping. I'm obviously not your typical car shopper, and that becomes quite apparent to my salesperson when asking about cap costs, residuals, and the money factor. They get quite a bit put back when I can calculate a rough payment in my head with those numbers <Alex, stop tooting your own horn> .... But I like to digest the numbers at home and that requires an email to present the numbers lawfully.

The point

Most dealers I have worked with cannot get an email to me. They claim it has been sent, but I cannot receive their emails in my Hotmail, iCloud/Me.com, or GMail accounts. These dealers have had to forward an email to their own personal accounts and then send from there, instead of their CRM, to get something in my inbox.

Their CRM is blacklisted. And the combined forces of salespeople, sales managers, and Internet managers cannot fathom why. And I'm not talking about a single CRM system here. This is across multiple dealerships in multiple states. It seems like every CRM system is plagued by this.

So, dealers, do you have a way to measure your email response rates? I believe this is a key metric that can tell you two things:

  1. Whether your emails are getting through
  2. How good a particular employee is at composing an engaging email.

Are you aware of how much of an email loser you are?

Comment over in the dealer forums

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