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October 2005

Website Strategies that Sell More Used Cars

Kevin Root

The number of consumers using the Internet to shop for vehicles continues to increase, and part of this growth includes those who are shopping for used vehicles. Thus, it’s essential to leverage your dealership's website to maximize this opportunity and increase your pre-owned sales. To capture more leads, your dealership's website should: 

  • Prominently feature used vehicle specials
  • Prominently display Internet specials
  • Promote low-cost inventory throughout the site
  • Offer home page access to vehicle search 

These are the fundamentals for increasing leads at your website. But to really take pre-owned sales to the next level, you need to not only attract and respond to leads online, but to also let consumers know your dealership sells used cars online.

 

 

Six Essential Components Your Website Needs to Enable Actual Sales

 

If you’re not using the Internet to sell used cars outside of your market area, you’re missing out on revenue opportunities. Let’s face it - eBay has changed our industry. Everyday people are buying used cars sight unseen and having them shipped across state lines. To capitalize on these new opportunities, your website not only needs to generate leads, it should actively enable actual sales. Here are six essential components your website will need in order for you to do this:

 

1. How it Works

 

Provide a “How it Works” section that clearly outlines the step-by-step process for customers buying a car from you online, including how to get the vehicle shipped to their home. This section should also cover details like financing, insurance verification, paperwork process, payment and shipping methods.

 

2. Financing Information and Credit Applications

 

Provide financing information and credit applications in downloadable PDF formats that include the fax-back number right on the form. Be sure to include a phone number where they can call about financing programs. (This is a small detail but it really helps increase leads.)

 

3. Warranty Information

 

Most people who are buying a used car want warranty information. So, post examples of warranty coverage on your website. Online customers like to do thorough research. Give them the ability to see the benefits and details of the extended warranty coverage you offer. This is a great way to help set up the F&I department.

 

4. Terms and Conditions/Legal Disclaimer

 

Outline all the terms and conditions of purchasing a vehicle from you on your site, including accepted forms of payment, any transaction fees, shipping policy, and general disclaimer (“vehicle sold as-is,” etc.). If you’re not sure what to cover, check out some of the volume sellers on eBay Motors to give you an idea of the current industry standard.

 

5. Vehicle Shipping Information

 

Most dealerships leave the shipping arrangements to the customer. However, you should provide links to one or two shipping companies that specialize in online transactions, such as DAS and Movecars.com. If you provide customers with helpful tips on how to get a car shipped, it increases the chance of making the sale. (Shipping costs are typically paid by the customer. Many of the transport companies that specialize in shipping cars offer online fee calculators.)

 

6. Maps and Driving Directions

 

Directions from the local airport, maps, and even links to local hotels all make it easier for the out-of-area customer to find and do business with you if they decide to buy online and pick up the vehicle at your dealership.

 

 

Eight Website Components that Address Customers’ Peace-of-Mind Issues

 

Letting customers know that they can buy from you online, and giving them all the information they need to do it, is step one. But just as importantly, you need to address customers’ peace-of-mind issues right on you website. If you do this effectively, you’ll sell a lot more cars. Here are eight website components that will help you build credibility with online customers and capture more sales.

 

1.     About Us

 

An “About Us page on your website is an opportunity to tell customers why your dealership is a great place to do business online. Try to eliminate their concerns right away and you’ll convert more leads. If you sell cars on eBay Motors, provide a link to your eBay feedback. If not, post customer testimonials in written form or, better yet, post actual audio files. Also, post any favorable articles that have been written about your dealership.

 

2. Our Customers

 

Online buyers want to know that it’s safe to do business with your dealership. An “Our customers” page can help reassure them. Some dealers will get really creative with this, providing a testimonial page with recent photos of happy customers with their vehicles and quotes for photo captions. Some dealers get audio clips of actual customers talking about how great it was to buy from them. It’s even better if you can match written or recorded testimonial quotes with real photos of the customers. And don’t forget, when you take a happy customer photo, be sure to imbed your dealership URL into the photo and then email it to the customer just as they leave the dealership. Many customers will take that photo and email it to friends and family members, and tell them about their new car. This is a great way to build word-of-mouth advertising and referral traffic for your dealership.

 

3.  Standard Vehicle Coverage/Exchange Policy, etc.

 

Post any basic vehicle coverage policies that your dealership offers. We’re not talking about the extended warranty here; this would be information, such as your vehicle return/exchange policy or your customer satisfaction policy. Anything along these lines should be front and center. 

 

4. CARFAX Link

 

A CAFAX link is almost standard practice on auction vehicle listings as well as most third-party site listings. Consider a link or logo to the CARFAX Buyback Guarantee. This is a great way to build credibility for your dealership.

 

5. BBB Online 

 

According to the Better Business Bureau, 73% of buyers and 82% of non-buyers cite “reliability of business” as a major concern when shopping online. Address these buyer concerns by posting the BBB Online Reliability Program logo to your listings. If your dealership already belongs to the local Better Business Bureau, it’s easy to do. You need to apply to their reliability program and agree to meet their advertising standards. More information about how to do this can be found at www.bbbonline.org/reliability/apply.asp.

 

6. Square Trade

 

Most eBay sellers are familiar with Square Trade. But many dealers don’t realize that you don’t have to be an eBay seller to utilize the Square Trade logo on your listings. Square Trade has different programs designed to give customers peace of mind.  If your dealership is big on CSI, consider their online customer ratings program, which enables customers to leave eBay-type feedback after a transaction. Why would you even consider something like that? Well, they claim that displaying a Square Trade logo can increase sales by 15%. More information can be found at www.squaretrade.com/business/reliability.jsp.

 

7. Links to Third-Party, Pre-Buy Vehicle Inspections

 

Most customers buying a used car, especially sight unseen, will feel more secure if they can have an independent, third-party vehicle inspection conducted prior to finalizing the deal. Once again, offering this has become pretty much a standard practice on eBay. And you can offer this service on your website as well. Companies like Carchex.com, SGS, and Mogoo’s offer nationwide service. It’s best to find a provider near your dealership if possible.

 

8. “About Me” Link or Page for Your Internet Sales Professional

 

In sales, even online sales, it’s all about relationships. So, why not start off by looking for common ground with the customer? Many Internet sales professionals provide an online link or website page about themselves on the dealership website and/or a link in their email responses.

Things to include on your ISM link or page: a photo of yourself; information about you; any customer service awards you’ve won; your interests and hobbies (golf, skiing, etc.); family info (where your kids go to school); etc. Not all customers will go there, or even care. But those that do may find they have a common interest with you. It’s a great way to differentiate yourself from your competitors and it can help to build rapport.

 

 

Last but Not Least: Process Makes or Breaks the Sale

 

Optimizing your website in all of the ways we’ve discussed will help you sell more cars. But the best lead-generating website in the world can still be undermined by bad processes. To successfully turn your website into a sales channel, you have to establish a quick, effective follow-up process. The best way to do this is to use a good lead management tool to help you sort, route and respond to online leads as efficiently and professionally as possible. The faster you respond to online leads, the higher your closing ratio is going to be. Period. And your objective in responding to leads is always to sell the appointment. As every dealer knows, appointments drive more sales.

 

If you optimize your website and use good lead management tools to reinforce good processes, you’ll capture more market share and sell more cars. And you’ll have happier customers too.

 

 

Kevin Root is vice president and general manager of The Cobalt Group’s Dealer Advisory Services (DAS), which provides automotive CRM and online retailing performance improvement training and consulting services to OEM and dealer group clients. He is a frequent seminar and dealer 20 group speaker and a regular NADA® conference workshop presenter. He can be reached at kevinr@cobaltgroup.com.