Why Are Dealers Intrigued By AutoBidsOnline.com?

“Sunday! Sunday! Sunday!” “This weekend ONLY!” “If you can find a better deal anywhere, well… we’ll just give it to ya!” You believe that right? Studies show consumers have grown weary of this type of hyperbole and are turning to the Internet as a way to purchase their next new vehicle.

And with that, pricing pressure has caused savvy dealers to rethink their approach.

If you have not considered it yet, you should. The days of the fat new car deal are numbered - at least on the front end. For the affluent, the Internet has made the price of new cars a virtual commodity. Even the 580-680 buyer is armed with web-based information and the tightening credit markets have resulted in fewer opportunities to get these prospects bought.

To win on the net, you need to separate the wheat from the chaff. Locate the serious buyers and get to them quickly.

Yet traditional methods of online lead generation involve a tremendous number of bogus leads. Even the BEST internet departments close less than 10% of online leads and most don’t come close to that!

The real dilemma is how to make the most of the market when national sales volume has fallen by almost 50%. By far, the Internet is the most cost effective way to reach the largest number of serious buyers and your best way to win in today’s economy.

So how do you do it?

A growing number of dealers are turning away from the big lead generators. Most are engaged in some level of Search Engine Marketing and Optimization (SEM / SEO), some are creating micro-sites and a few are participating in social networking sites like Facebook and Twitter. Yet that is simply not enough.

Look at it from a buyer’s perspective. How different is your website from your competitors’ down the street? Do you really offer a unique proposition? Odds are, probably not.

Most dealer sites today include detailed inventory with pictures and even video. Yet consumers have indicated they all still “look the same.” They want to find the exact car they are looking for and find it quickly. The thought of hitting dealer website after dealer website, looking at thousands of cars in online inventory is no more appealing than traveling to visit 5-10 dealer lots in their general vicinity.

Like it or not, the Internet has greatly diminished the traditional sales opportunities of the local franchise. Buyers will still come to the lot for a test drive and are fortunately still loyal in their service and warranty repair needs. Yet most are using the Internet to look at dealers all across the country in an attempt to find the best possible price. In fact, they could not care less WHERE they buy their new vehicle – they just want the best deal.

So the question before you today is – are you ready to take the next step? Are you willing to allow your Internet Department to negotiate the price of a new car online? Probably not when online leads involve large numbers of teenagers and online tire-kickers.

But would your thinking change if the online prospect paid a fee to submit a serious “Buy Bid” – rather than simply “Requesting a Quote?” After all, have you ever used PriceLine to purchase an airline ticket?

Find the serious online buyers and win their business on the front end. Your sales staff will spend less time chasing down bogus leads and your dealership will generate more gross through volume and an increased focus on Pre-owned, Parts & Service and F&I.

Jeff Cook is President and Co-Founder of CyberCalc.com and BuyerBidsOnline.com. He presently serves as a Director on both the Texas State and National Boards of the National Vehicle Leasing Association and is based in Dallas, Texas.