A scant 8 years later on August 14, 2008, the US Census bureau released new information concerning the changing demographics in our nation. 

To quote “The nation will be more racially and ethnically diverse, as well as much older, by midcentury.”

“Minorities, now roughly one-third of the US population, are expected to become the majority in 2042, with the nation projected to be 54 percent minority in 2050.  By 2023, minorities will comprise more than half of all children.”

I think we can all agree that “our country…. it is a changing…. and it is a changing rapidly”.  IS YOUR BUSINESS READY?  No longer can we treat our marketplace as one Giant General Market.  We need to be prepared to interface and serve all of our current and potential customers.   This means being ready not only for today and but for the future.

ANALYZE YOUR NEIGHBORHOOD:

Do you know who comprise your market area?   

It is essential to know the base of the area in which you do business.

• Visit your local Chamber of Commerce and secure the information they have about all of the demographics, both current and projected, for your community. It is available at no cost.
• Partner with the local college or university and make an arrangement with their Marketing Department to complete an analysis of your market area. They will be anxious to assist you and this is also a great way to get exposure for your place of business!
• Assign a few of your employees to be a part of this project. They will be your biggest ambassadors with the rest of your employees which helps secure buy-in. Also utilize the Internet to secure additional information about your local area. There is so much information at your fingertips.

TAKE A GOOD LOOK AT YOUR PLACE OF BUSINESS:

In addition to knowing the demographics of your marketing area it is also important to understand who your customers are.

Pull out those deal jackets or repair orders.  Do an analysis of your customers both in the sales and service areas.  What is their makeup?  What percent of your business comes from each group?

• How does this compare to the data you have acquired about your market area?
• Does your employee base reflect the marketplace in which you do business?
• Do the products and services you offer fit the customer needs?
• What about the signage? Does it need to be in more than one language?
• How about the areas where the purchasing conversations and decisions take place and are made? Is there room for an entire family to meet and have discussion on their purchase? In some cultures, there is one spokesperson who is the interpreter but the entire family is part of the decision.
• Based on the various cultures and groups that make up your current and potential customers, are the employee’s trained to be culturally knowledgeable and sensitive? It is important to have them prepared to meet, greet, and serve the consumer on their terms.
• Do you have employees who are bi-lingual…not just one employee…so that they can easily assist the customers and make the buying or servicing experience more pleasant?

WHERE DO I FIND EMPLOYEES TO REFLECT MY MARKET AREA?

If you discover that your employee base does not match your marketplace, then it will be necessary to hire and to train the correct people.   So now you are probably wondering how you will locate them particularly if they will need to be bi-lingual.

• Advertise in the local in-language newspapers, on the local in-language radio or in-language TV stations. Whether it needs to be in-language or crafted for the culture you are trying to reach, they should be able to assist you in making sure the terminology is accurate and culturally sensitive. It will be extremely important to have career opportunities outlined to attract the very best in the community.
• Meet with the local church or community leaders and let them know that you are looking for employees from their cultural community.
• Reach out to the local cultural organizations and ask them to get the word out that you want to hire from the local ethnic community. Many cultures also have their own Chambers of Commerce and many of them have also been training people for job placement.
• Don’t forget the local ethnic golf clubs either. This is one of the better places to get the word out that you are looking to diversify your workforce. And make sure that you get the word out in the local barber and beauty shops. This is a BIG meeting place with information being shared and re-shared with all who utilize their services.
• Do not under estimate Word Of Mouth.

CULTURAL GUIDANCE:

Learning about cultural differences in customs, beliefs, traditions, and purchasing practices will help make your place of business be more prepared to effectively deliver services and connect with your community.  One of the ways is to hear directly from the community in regard to their needs and concerns.  You may be asking yourself how you can to get beyond cultural barriers in order to develop cross-cultural connections and one of the ways is to seek outside training from the ethnic group or groups within your marketplace.  They will be eager to conduct sessions with you and your employees to provide knowledge of their culture, traditions, customs, language, values and practices to open the lines of communications which ultimately builds respect and trust, and ultimately integrates your business into the fabric of the multi-cultural community in which we all live.

Based on changing demographics there is clearly a need to have your place of business prepared to serve the community in terms of products, services, and environment. 

IS YOUR BUSINESS READY FOR DIVERSITY AND/OR CULTURAL MARKETING?

Human nature drives every aspect of our lives - especially when buying a car - so it always amazes me when auto dealers implement a selling system or design an automotive advertising plan that doesn’t consider it.  This post will provide some insights from the customer’s perspective that must be addressed before you can presume to market to them as a long term customer vs. only a single sale.

Simply put, people like to do business with people that they like.  Based on that observed fact, you must do business with your friends because your enemies and strangers are less likely to accept your call! If your only goal is selling cars with no regard to building a customer base for future sales and service opportunities then that business plan will fail.  It may work for the short term, but in today’s market service and parts income is the key to long term survival.  Selling a car is easy if you only have to do it once.  It’s the second and third sale coupled with the ongoing service business that must include making a friend as well as a sale to build a customer base.   

The Internet has allowed the car buying public looking for new cars or used cars to bypass car dealerships by visiting dealer websites or third party auto inventory based websites like EveryCarListed.Com.  EveryCarListed has millions of used trucks and Certified Pre-Owned Cars listed for sale with no sales hype - only competitive comparisons of every make and model that a customer may be considering.  Modern Internet based applications provided on dealer websites and Every Car Listed also provide auto financing information, payment calculators and appraisal tools without a car salesperson in sight.  If the online customer never meets a salesperson it is difficult to make a friend vs. a sale - but not impossible.

Replicating real world selling systems with Internet based processes that provide transparency without any sales hype will build the relationship between the dealer and the customer by providing the information that the customer needs to make a buying decision.  That confidence can then be transferred to the salesperson to close the sale and move the relationship forward to keep the door open for future sales and service. 

For example, Everycarlisted recently expanded their basic marketing packages to include video which provides detailed information for site visitors to buy used cars with enough information to narrow down their search.  Selling used cars is much easier if the customer starts the negotiation on the vehicle that best fits their needs.  To that end, a well constructed video builds on the philosophy that a picture is worth a thousand words and therefore a video is worth a million.  As a result, a video provides a clearer picture for the online car buyer to make a decision.

Now that the basic building block of a relationship has been applied to the initial selling process in both the real and the virtual world the ability to develop future marketing opportunities to your customer base becomes self evident.  You don’t only call your friends when you need something.  More importantly, if you do they won’t be your friends for long!  That same wisdom can now be applied to marketing to your customer base.

The following processes can be applied to keep in touch with your friends, (customers), so that when they need another vehicle or they have to service their present one they will consider you;

• Capture an email address during the selling process to facilitate future communications
• Introduce your customers to key managers and support staff in all departments - not just sales - to promote future parts, service and sales opportunities
• Update your data base regularly with appending services and ongoing communications
• Create a user generated content section - blog - on your virtual showroom to capture comments and feedback for referrals and to surface and fix problems as they develop
• Create a regular email newsletter with relevant information sent to your customers beyond just sales and service messages - such as seasonal advice or industry news
• Offer V.I.P. offerings to previous customers in sales, parts and service before, during and after the sale or service
• Develop business to business shared marketing venues to/for your existing vendors as well as neighboring business to promote each other’s products and services
• Consider your community’s needs and interact with your customers outside of your dealership to mature your relationships beyond just business
• Support your staff to develop their own social networking communities to extend your dealership beyond its own network of previous customers and business relationships

The bottom line is that you must build your customer base on a good foundation that will survive in a shrinking economy.  Ongoing marketing efforts must contain messages focused on your customer’s needs over your own with the confidence that when they intersect you will have earned their trust and their business - in that order.  After all, what are friends for!

Many automotive advertising agencies predicted that the Cash For Clunkers Program would produce an artificial wave of business with the associated “peak” in new vehicle sales during August followed by the “valley” in September that could continue through the balance of 2009.  Recent SAAR statistics project an adjusted annual sales rate of 8.8 million new vehicles in September proving that their worst fears have been realized.  Successful auto dealers focus on solutions rather than problems.  As a result, used cars have taken on a new importance with a number of creative techniques being applied to acquire used cars with a priority of selling used cars vs. new cars that are in short supply.

To make matters worse, reduced new car sales have directly impacted used car sales and related profits since as many as 60 percent of new car sales have a trade-in.  These lost trades have reduced the number of used cars available for sale.  That frustrating law of supply and demand has raised the profit per unit on used cars from $161 to $214 per unit from January through July 2009 with additional increases expected as inventories are further reduced.  In addition, used car sales are projected to increase from previous annual levels of 36.5 million units to 39 million vehicles which should increase the per unit profits even further.   

Old world best practices often survive in today’s Internet based auto industry and several proven techniques to acquire pre-owned vehicles have been enhanced by new technologies being applied by forward thinking auto dealers who are already working on the problem.  For example, conventional wisdom when appraising a trade-in suggests that “the book doesn’t buy the car.”  Of course that statement was previously used by an auto dealer to justify a wholesale offer vs. a retail request by a customer negotiating to buy a new car or even a later model used car.  Today that logic is more often applied by auto dealers to justify paying more than book value to get the trade-in when selling a new car.  Of course the auto dealer’s profit must be considered when he is buying cars as well as when he is selling cars and the shrinking profit margins of today’s challenging economy leaves little room for error. 

The solution to stepping up for the trade lies in the use of new inventory management software that allows an auto dealer to instantly access both his own historical data and real time Internet price information on similar vehicles to more accurately determine the wholesale value at the time of the appraisal.  Applications provided by vendors like FirstLook, vAuto, eCarList and AAX - to name a few - can compare and compute this information instantly with integrated access to the auto dealer’s DMS, CRM and desking tools allowing the dealer to intelligently evaluate the most that he should invest in the trade based on past and present relevant sales. 

Additional support by these applications extend into their integrated marketing platforms to instantly post the trade-in to the auto dealer’s inventory so it can be posted on dealer websites as well as any third party inventory sites that they link with, such as http://EveryCarListed.Com .  Simply put, the sooner the vehicle is offered for sale the sooner the dealer can turn a profit and after all, time is money!  Applications like FirstLook automate the process even further with their “Consumer Optimization” process that relies on proven algorithms to draft the copy for the online advertisements for trade-ins based on features and benefits that have proven conversion rates with “calls to action” built into the copy to cut through the clutter of other online ads.

Another old school practice that has survived as a source for used cars for auto dealers is to resource the “For Sale By Owner” ads placed in the newspaper and specialized magazines.  People advertising to sell their vehicle are often also buying a car so they are an excellent prospect for a sale, however,  a well crafted offer to buy their vehicle even of they do not want to buy yours is a proven technique that has a renewed priority.  Selling a car is still job one, but CarMax has proven the value in using the opportunity to acquire used cars for sale as well. 

The advantages offered by today’s Internet vs. old world media is best demonstrated by Every Car Listed which has replaced the newspaper and local auto magazine as a convenient “one stop site” to find people looking to sell their vehicle in their dedicated For Sale By Owner section.  The education that these private sellers get as to the value of their vehicle by comparing it to similar vehicles for sale by the auto dealers that post their inventories on EveryCarListed makes arriving at a fair market value even easier.

The value of selling used cars vs. new cars in today’s market isn’t limited to front end profits.  The opportunity to sell extended warranties on used cars vs. the long term factory warranties included on new vehicles, the increased margins earned on customer pay service on used cars after the sale vs. warranty work on new cars and the ability to provide products beyond the limitations of your new car franchise are all valid reasons to sell used cars - if you can get them!

Increasing the trade-in ratio at your dealership with improved appraisal processes is job one when it comes to shifting focus from new car sales to used car sales.  Combine those efforts with creative techniques to purchase used cars from customers in addition to participating in the wholesale auctions - especially the new online auctions that bring the vehicles to you - and you are on track to ride out the slowdown in new vehicle sales. 

New car franchises are still an important platform to stay competitive and profitable in the auto industry.  In addition to the recognition and branding in the marketplace for the new vehicle buyers, the access to factory supported floor plan and retail financing sources, factory subsidized pricing and Tier I and Tier II advertising support there is also value in the ability to sell Certified Pre-Owned Cars as an alternate to new cars.  Certified used cars are a proven commodity and selling Certified Cars is limited to new car dealers representing their own product line.  With that said, as much as I value new cars - in today’s market - Used Cars Rule!

It goes without saying that the place where business is conducted must be inviting to both the women and men who come through our doors AND it must also reflect the marketplace in which we do business. Having said that, many of us do not know how or where to find the women we need to hire.

GET THE WORD OUT

Based on my experience here are some suggestions:

Create awareness that your place of business is hiring women and what career opportunities it has to offer.

• Visit schools and colleges and participate in career days
• Offer intern programs which will help identify and attract talented people
• Offer scholarships in the name of your business
• Join local women’ organizations
• Invite women’s organizations to hold their meetings in your place of business
• Support women’s events in your local community
• Advertise in women’s magazines or trade publications
• Offer incentives to your own employee for referrals
• Speak at the local Chamber of Commerce to get the word out that you are looking for female employees
• Most real estate agents are women so connecting with the local Real Estate business is another resource for hiring women

The importance of word of mouth in addition to formalized advertising is very critical in attracting women employees so the more you can get out into the community, the better the success of finding and hiring talent.

THE WORKPLACE

Make certain that your work place policies are conducive to both men and women.

• The workplace should be clean and neat and an inviting one that works for all employees
• It should be inclusive environment where everyone is treated with respect and valued
• Offer not only full time employment but flexible work place policies such as part time, work at home, team selling, job-sharing for everyone not just women. After all, work life balance is an issue for everyone.
• Have a mentor or buddy system not just for women but for the all new hires
• Post “work week” schedules in advance so that employees can plan their “life week”
• Provide processes that will accommodate for input and feedback for workplace improvement
• TRAIN-TRAIN-TRAIN all of your employees to understand how to treat each other in the work place and also how to treat the female customers when they come into your business establishment.

The important key here is to make sure that ALL employees are valued, are treated with respect, and have opportunities for growth.

RETENTION

Turnover in any is business unwanted and it seems that in the Auto Industry there is a higher percentage than other businesses.

By having policies in place to attract and retain talented employees: it will increase your customer base, reduce absenteeism, reduce costs, improve employee morale, and very importantly it will positively impact your bottom line.

CONCLUSION

This compilation of best practices is my insight into what needs to be in place to attract and engage women but it is also important to remember that companies pursue programs and practices that specifically fit your organization, your workers, and your managers. What is most vital is to harness the skills, talents and hard work of everyone on your team.

Customers want to feel comfortable, respected, and trusted and so do your female (and male) employees.

Article written by:

Patricia J. Roberts
Director Business Development - AskPatty.com, Inc.

Chrysler, for example, has announced that they will be putting their toes back in the troubled leasing waters with some sub-vented leases, (subsidized residual values above expected resale at lease end and reduced money factors), that will offer competitive payments on some of their new models.  All of the details haven’t been released but the story has been announced in the mainstream media and you can expect factory marketing campaigns to start mid-September.

Another indication that leasing is about to stage a revival is the upward trend in wholesale values at dealer auctions and retail prices heading back to pre-crisis levels.  The increased residual values that can now be projected will reduce the depreciation and the associated payments for leasing a car vs. selling a car or buying a car.  That is good news for the auto industry which has been struggling with extended length financing contracts to make payments affordable for new car buyers.  Buying a car using conventional auto financing also often requires a substantial down payment on new cars and used cars which makes selling cars to cash strapped customers difficult for car dealers.

EveryCarListed.Com offers a variety of vehicles and payment plans for new cars, used cars and even certified pre-owned cars and they will likely be the first place to reflect the new method of buying cars and selling cars using creative leasing plans.  Every Car Listed allows consumers to compare all makes and models from individuals and auto dealers selling sports cars or even used trucks with competitive pricing and payment plans that are certain to include leasing payments in the near future.

As a rule of thumb, leasing a car has certain advantages over buying cars including requiring less money down - referred to as “inceptions” plus tax, tag and title, lower payments since they are based on the difference between the purchase price and the residual value - or better described as the depreciation, and three options at the end of the lease including the ability to purchase the car for the pre-established residual value, selling the car to a private party or dealer for a potential profit or simply walking away since the lessor is obligated to purchase back the vehicle for the balance due .  An often misunderstood issue at lease end, or even at inception, is the customer’s obligation for additional wear and tear on the vehicle or excessive mileage fees.  Simply put, the customer is responsible for both of these items even if the pay cash or finance the vehicle since they will reduce the resale or trade-in value when the customer wants to change vehicles.  The difference is that with a lease you will know exactly what the excess mileage charges will be - usually 10-15 cents per mile above the agreed to amount per year - and the actual costs for repairs if needed at lease end.

The fact is that the return of leasing is a good thing since it opens up options for both consumers and auto dealers to come to mutually acceptable terms.  It can lower down payments, lower monthly payments, reduce length of contracts allowing more frequent upgrades and eliminate the probability that a customer will be upside-down, (owe more money on their vehicle than it is worth), if/when they want to trade it in.

What was will be again, and what will be is often better than what was, so I anticipate that the new leases will learn from the mistakes of the past.  The key is to select a vehicle and a dealer that will offer you an honest comparison between leasing and financing and then select the payment plan that is best for you.  Most dealers will be happy to oblige since after all, what are friends for!

The car buying public will always take the path of least resistance and the Internet was already growing as the information resource of choice when selling a car or buying a car.  People selling new cars and/or used cars will naturally gravitate to where people looking to buy used cars and/or new cars are shopping, however the abrupt closing of thousands of auto dealerships across America has increased traffic to dealer websites at a faster rate than anticipated.  The result is an explosive need to improve the technology and the associated applications to enhance selling processes to facilitate buying cars and selling cars in a more efficient and cost effective manner.

Given the competitive nature of the auto industry and the need for auto dealers to reduce expenses the growth in online marketing has taken on a new importance with automotive advertising agencies scrambling to deliver more for less for their auto dealer clients.  Inventory based websites like everycarlisted.com,(ECL) provide a “one stop site” for auto dealers selling sports cars, economy cars, certified used cars and even new or used trucks.   Similarly, Every Car Listed provides a one stop shopping experience for car buyers as well as a “For Sale By Owner” (FSBO) section that allows customers to burn the candle from both ends by getting top dollar for their old vehicle vs. trading it in.  Of course the convenience of trading in a vehicle and the savings of sales tax in many areas that allow you to only pay sales tax on the trade-in difference makes the decision less obvious than it might appear.  The real advantage of the FSBO is the ability for both the buyer and the seller to establish a fair and competitive price from both sides of the negotiation table.

The move to the internet has opened up opportunities for communal sites like everycarlisted but it has also accelerated the development of online tools like the video applications applied by ECL to improve the customer experience while shopping on the site.  Additional technology focused on enhanced customer communications are being added daily and the ability to actually purchase cars online is an inevitable reality.

In the meantime, consumers are flocking to the World Wide Web to save gas and time with little regard for their missing neighborhood car dealer.  Unfortunately, when it comes time to servicing their vehicle they may have a different opinion.  Every Car Listed is the only online shopping site to date that has recognized the value of servicing the vehicle after the purchase as evidenced by their integration of the service guarantee offered by their sister site - http://superpages.com.  The now familiar “yellow cape” associated with the SuperPages.Com limited service guarantee offer for advertisers who participate in their program suggests that service will become an increasingly important role for the remaining real world auto dealerships and it still should be considered when selecting a dealer as well as a vehicle.  The best deal is not limited to the best price - although forcing dealers to be competitive by visiting a site like EveryCarListed.Com is still a big part of it.  As before, making friends with the selling auto dealer is still important for after sales help. 

After all, what are friends for!

Posted by:

Philip Zelinger, http://adagencyonline.net

Well, if you were one of the few that didn’t know about Certified Pre-Owned Cars you do now! Now that we are definitely all on the same page, let’s discuss why certified pre-owned cars are the best way to go for consumers who are buying cars and for auto dealers who are selling cars.

Conventional wisdom from the auto dealer’s perspective suggests that selling the first car is easy - although, in today’s shrinking economy it is not as easy as it used to be - and it is the second one that they work for.  The best way to insure that a customer will come back for another vehicle is to make sure that they don’t have any problems with the one they already bought.  More importantly, in the unlikely event that there is a problem the dealer will be able to take care of it to preserve the relationship.  A car dealer can replace the vehicle but he can’t replace the customer and their continued business in servicing the vehicle and earning their business again when they are ready to trade it in.

Customer relations and satisfaction is a key differentiator for dealers struggling to stay competitive and price alone just won’t cut it.  The use of third party inventory based websites - like EveryCarListed.com - have been added to car buyers online shopping lists along with two to three  individual dealer websites so the ease of comparison price shopping makes it less of a issue when deciding where to buy from.  Transparency and relationship based selling techniques have prioritized things like warranty and dealer support over price and certified used cars even the playing field when comparing several cars that have earned that certification.  Most dealer websites clearly mark their certified used cars to reflect their added value and Every Car Listed has a special search filter to find certified pre-owned cars in selected zip codes along with a special page to explain why you should consider them when buying a car.

Obviously nothing is free in this world and certified used cars are often priced higher than non-certified comparable makes and models.  However, when you factor in the value of the warranty, the typically lower mileage and superior condition that certified pre-owned vehicles offer vs. non-certified vehicles and the advantage of subsidized auto financing terms the value becomes clear.  As for the auto dealer’s advantages, see the above since price often is trumped by value and payments and certified used cars are easier to sell than used cars that aren’t certified.  More importantly, the confidence that both auto dealers and consumers have before, during and after the sale when selling and/or buying a certified used car will keep everyone happy for many years to come and, after all, what are friends for!

As a former auto dealer and author of a book, “How To Buy A Car” followed by another one, “How To Sell A Car,” I have developed a unique respect for both sides of the negotiation table.  Add the time that I have invested as the host of an automotive advertising resource / networking site - http://AdAgencyOnline.Net - to those experiences and I am confident that I can help both sides of the negotiation table wind up with the right deal.

To simplify matters I suggest that you refer to the following list of relevant observations before you jump in your car with your trade-in keys in hand, hit the World Wide Web with your credit card at the ready or presume to price your new car or used car for sale:

• The Internet has replaced auto dealerships as the information resource of choice! The cost of gas and the frustration of car shoppers who are trying to avoid a sales pitch have driven buyers and sellers alike onto the Internet Superhighway to listen and learn from auto industry experts - yes, like me and my fellow Auto Industry Insiders featured on AutoIndustryInsights.Com - as well as likeminded consumers that have posted their experiences before during and after buying a car, selling a car or servicing their vehicle. I STRONGLY recommend that you start your shopping experience by visiting auto industry social networking sites, dealer rating services and auto dealer community sites - like Every Car Listed - where you can shop and compare all brands, all models and all dealers right next to “For Sale By Owner” listings.
• I am a regular viewer of the T.V. shows that advise people on how to sell their homes and other “How To” programs on Real Estate. Let’s face it, other than your home your vehicle is likely the second largest investment that you have. The common thread that I have seen from the comfort of my couch has been the need to take the emotion out of your own evaluation of your home - or of course in this case - your vehicle. Everyone who has bought or sold a home knows how important “comps” are in evaluating how much to list your home for or how much to offer on one. New Cars and Used Cars have similar comparable listings that appear on the WWW and an impersonal evaluation of theirs vs. yours - or one dealers vs. another’s - is the first step in establishing what you should pay for your replacement vehicle and how much you should ask for yours. Frankly, the person that you sell your car to - be it a dealer or a private buyer - is going to check the same “comparable vehicles” on the Internet when deciding how much to pay for yours so you might as well have the same facts as they will when you price your vehicle or start negotiations. 
• Remember, auto dealers are not “Not For Profit” tax exempt organizations and it is only reasonable to accept that there is a legitimate need for them to make a fair profit on their Used Car Lot. Not only do they have legitimate operating costs of sales, but they also absorb a fair amount of reconditioning expenses and warranty coverage that adds value - and cost - when pricing their vehicles. It is reasonable to pay slightly more for a front line ready used car or used truck from an auto dealer who offers a warranty or assistance with auto financing terms vs. one sold “As-Is” by a private party. Obviously, the same set of facts suggest that the “trade-in” value will - and understandably should - be less than what you or they can sell your vehicle for. Also, if you are trading in your vehicle there is a “tax loophole” in many states that allow you to only pay sales tax on the “trade-in difference” which could add 6-7% to the net amount that you will receive as a trade-in vs. selling it privately; check it out in your area! 
• Many consumers refer to online appraisal sites like Kelley Blue Book, Black Book, Edmunds etc. to determine the value of their vehicle and I agree with that practice, however, it must be understood that the “book doesn’t buy cars.” Many dealers will have to adjust to daily inventory levels, changing market conditions and even subjective issues like color or if the car “has eyes” when evaluating your vehicle. Use the book values as a guide - not as a bible - and enter negotiations with the understanding that there are two sides to the situation which both sides must consider.
•  There is a common negotiation practice that many “old school” auto dealers rely on to simplify the sales process described as a “four square” work sheet. This presentation format separates the negotiation process into its components; 1) The selling price of the new car, 2) The trade-in value of your used car, 3) The amount that you are putting down and 4) The payments and financing terms to complete the sale. In theory this process is exactly what you need to discuss to purchase a vehicle, however, in practice it is often used to “bury” the true selling price of the new car or the “Actual Cash Value, (ACV), of your trade-in into a “difference figure” which is then shifted to the only figure that supposedly really matters which is how much are you writing a check for as a down payment, how much will you be paying each month and for how many months will you be paying it. Again, in theory that is true, however, the less that you pay for the new car and the more that you get for yours will impact your payment schedule as much as your down payment so I suggest that you negotiate each “square” individually based on the education and information that you researched before entering negotiations and everyone wins! Yes, in my suggested scenario even the auto dealer wins because in today’s consumer oriented society and troubled economy the only real deal is the one where the relationship will survive for the next deal and the ongoing service relationship between the auto dealer and the customer. Any abuse of the relationship in the negotiation process will eventually surface and in this market a dealer can afford to lose a sale, but they can’t afford to lose a customer. Similarly, a stubborn customer that won’t accept the true market value for their trade and leave the dealer enough profit to support their facility will find themselves without a place to fix their car if they have a problem. Like I said - win-win!

So, “How Much Is Your Car Worth?”   Well, as long as you educate yourself by checking comparables and you recognize that the auto dealer deserves a fair profit when they sell it, and that you are in competition with other vehicles for sale on the WWW when you are trying to sell it to a private party, then it is worth exactly “What You Sell It For Silly!

Cash for Clunkers is bringing big business to dealers nationwide who are selling new cars to people who might otherwise be buying used cars.  Some dealerships are having new car deals fall right into their laps without even trying to promote the program while others are using it as an “event” to help drive additional traffic for people considering a new car.  Even when the program was briefly suspended before more government funds were thrown into the rebate coffers, dealerships were receiving calls on whether or not the car buying public could still take advantage.  I think this program will be a much needed shot in the arm for automotive new car sales, but that dealers should invest more of their time promoting it opposed to letting nature take its course.

I believe car dealers should hold “events” that call attention to the tremendous opportunities posed to the American public.  I am going to detail two ideas - that may or may not have the time to come to fruition if the money runs out too quickly.

1)       Many consumers are finding information online about the program, but are still unsure if their Clunker qualifies.  Heck, even car dealers registering the sales with the government are finding discrepancies.  I suggest that car dealers advertise one special Clunker Day - invite any consumer with questions on whether their vehicle qualifies or not to bring in their trade and have an unbiased, knowledgeable professional evaluate it.  I have heard that some people showing up are in a little ways ashamed of the used car or used truck they are still driving.  Make sure that the advertising stipulates that no one will be judged on their vehicle, only rewarded.  Obviously, new car dealers will find this beneficial because even if a used car doesn’t qualify, they can likely assist them with a purchase of a new car or even a used car.  Consumers will have the opportunity to not potentially be embarrassed, but be educated.

2)      Worst Clunker Award Day - match the available C.A.R.S. rebate with a discount for the customer that brings in the worst (or best) example of a Clunker.  It can be voted on by the sales staff so everyone is involved and will keep customers around for a good portion of the day.  If you want to go above and beyond, have a contest for the regular public - if they come and join the festivities, some of them will be able to Kill the Clunkers.

I was speaking to my good friend, Bryan Armstrong, who is the New Car Manager at Tim Dahle Nissan in Sandy, Utah.  He amazed me at how he was able to use aggressive merchandising coupled with digital marketing tactics to make his dealer the one stop Clunker shop.  Here is his story:

Sell the sizzle not the steak a phrase that though well turned is still every bit applicable today as when it was first coined.
As with any business, our goal is to accentuate the positive of a given situation and find somewhere within the public mass a chord of commonality upon which to build value, rapport, and ultimately a lasting business relationship.

With the CARS Program, we could choose to wait on the sidelines as the belle of the ball hoping our dance card would fill up, or make sure the DJ is spinning the platters that will keep the dance (sales) floor “hoppin”!
So we at the Tim Dahle Nissan in Sandy Utah chose to take Cash for Clunkers into an event with no equal.

Since the premise of the program was to stimulate new car sales, we emphasized the fact that by removing from circulation and recycling so many gas-guzzling older vehicles the economic and environmental impact is extremely beneficial to all.  In addition, the monthly payments on a yearly basis often are equal to or less than the expenditure they pay for up-keep on their current auto.

Next, in identifying the key target markets and current banking restrictions, we determined that in most cases the used car allowance would allow us to put even first-time or credit challenged buyers into equity loans and procure financing.  Lastly, for those customers whose cars did not qualify, we were able to work out enhanced trade values with our local wholesalers, who are naturally experiencing a shortage of inventory, to step up on trade values so that in most cases we are able to reflect C.A.R.S. comparable trade values against retail values on used vehicles as well.

With those principles in mind we set out a simple inexpensive marketing plan:

1)      From our DMS and CRM plan base we garnered approx. 4,000 names of customers that within the last two years had either attempted to trade-in, purchased or serviced a 2002 model year or older vehicle and set our call center personnel to calling and at least leaving a message with all that had current numbers while our receptionist stuffed mailer envelopes for the remainder.

2)      We sent out a 10,000 piece e-mail blast through CityTwist with multiple links to www.utahcashforclunkersprogram.com website designed with Frank Davis of Tulsa Websites and SEO Services.

3)      We rented a huge dumpster, and after spray painting “Clunker” and” $4500″ all over the cars, placed them in it on our front pad.  Also we shot short informal “RAW” footage with cell phones and uploaded them (with our link in the description) to YouTube (http://www.youtube.com/watch?v=4ROtWquM2oU&NR=1 ) and other free sites .  With sales and gross both up and any spending less than $3500 on the entire campaign, a sense of fun and the unequivocal confidence on the sales floor that every customer who comes in can be helped, the “SIZZLE” is selling!

Now there is a new car dealer who truly knows how to generate business, traffic, and awareness through event selling and digital marketing initiatives.

If any other dealers out there are as pro-active as Bryan has been and would like to share your story, please do.

I may be wrong, but if sales are down and dealers have more new cars and used cars than they can afford to stock wouldn’t that be a good time to buy one?  The answer is - YES!  Of course buying a car can still be a challenge but if you were selling a car right now wouldn’t you be more receptive to an offer - any offer?  Sure you would and car dealers are people too! 

The trick to car buying is to put yourself in the shoes of someone who is selling cars and then treat them the way that you would like them to treat you.  Here are some basic tips on buying cars and even on selling used cars for auto dealers who are wise enough to know who the boss is in today’s troubled economy.

Auto dealers who are selling used cars are looking for people who are ready to buy used cars and they are all going onto the Internet Superhighway to make a deal.  Dealer websites are the new “virtual showrooms” for selling used cars, used trucks, Certified Used Cars and even selling sports cars or other specialty vehicles.  The World Wide Web has provided an even playing field for car shoppers that auto dealers are fighting to attract.  The trick to shopping online is to narrow down your real world trips to those few auto dealers that provide the product and price information that you went online to research.  Of course cars still sell cars and inventory selection is another key differentiator when narrowing down your search for a new car, a used car or more specialized vehicles like Certified Pre-Owned Cars.  By the way, Certified cars are an excellent choice for new car buyers who want the warranty and peace of mind of a new car but who have budgets that suggest a compromise.

Third party inventory based websites - like www.everycarlisted.com - offer a time saving solution to finding the perfect vehicle and the auto dealership that has it.  As a matter of fact, more often than not you will find several similar vehicles at a number of competing dealerships that will literally fight for your business - I told you that now would be a good time to buy a car! Every Car Listed has an inventory of millions of vehicles and many thousands of dealerships who post their inventory with their best price and a complete description to help you narrow down your search.  Recently, everycarlisted announced that they are going to be an “All-Video” site to accommodate consumers who prefer videos over copy and even still pictures.  With transparency like that online car shopping couldn’t be easier!

Auto Financing is another issue that needs to be addressed by many car buyers.  The good news for today buyers is that factory subsidized financing rates start at 0% interest for qualified buyers and factory sponsored rebates and discounts of up to $10,000 will help to reduce the loan amount or absorb any negative equity.   As a result, getting approved for a payment that you can afford is better than the media might make you think.  Several online auto guides are available that list the various programs that are available for new cars and most dealers will allow you to complete a credit application on their website to answer your finance and payment questions from the convenience of your own home or office.

The decision to buy now or later should still be based on your individual needs and financial situation, however if you need a new car or a used car don’t let the economy be your excuse to delay the inevitable.  There have never been more reasons for an auto dealership to accept any reasonable offer and the WWW has provided a source of information to help you make a buying decision that takes most of the pain out of the process.

As a former auto dealer and the present head of a national automotive advertising agency - www.AdAgencyOnline.Net - I can honestly say that the benefits of buying a new car or a used car now rather than later applies to auto dealers and consumers alike.  We are all faced with the same challenges of today’s economy and if we recognize that we need eachother to solve our common concerns we will all come out ahead.  After all, what are friends for!