dealers 1 internet 0 - new car alarm system

by:Kingcobra     2019-11-13
dealers  1 internet 0  -  new car alarm system
Every two years, Linda seelon has a doctor at a Nissan dealership in Tesbury, Massachusetts.
Buy a Pathfinder or horse from her.
The doctor is well prepared.
Through the Internet, he knows the specification, selection and invoice price of the car.
She said that because of this she could squeeze $500 out of his invoice-
At a recommended retail price of $2,200 per day, up to $27,100end Maxima.
"He is more grinding than anyone," said Cerrone, 53 . ".
But don't cry for Cerrone.
When she pulled up the doctor's name on the computer, she saw the gross profit he had earned in parts, services and sales for eight years at her dealership.
"I can see that I will be able to make another $1,800 or $2,000 in his deal --
I know he will be serving the new car, which will be another $1,000 over the next two years.
"So the profit on the deal is $3,500, not just $500," Cerrone said . ".
For those who drive 100 miles trying to save $100, she won't cut the same deal ---
Someone she might never see again.
Car dealers will be happy to see the internet disappear.
Retailers want shoppers to know what their wholesale costs are?
But they are not killed by the Internet, because the Internet is the most fanatical internet.
Com fans were predicting a few years ago.
They are fighting back fairly quickly. The old-
Old-fashioned dealers have almost completely disrupted Internet sites that promised to sell cars directly to consumers.
Now, they are using computers and the Internet to improve the quality of their services, especially the sales of used cars.
Don't think their sales staff are in bad health
Prepare buyers for the smug walk into a dealer running the Internet
Pricing information generated.
Life is not easy for dealers.
Scores are merged or bankrupt every year ,(
See below).
For 40 years, their gross profit margin for new cars has been falling, at 6% last year.
Strong car sales (17.
2 million units sold last year)
But sales will slow this year.
That's why dealers like Cerrone's Crest Nissan urgently need to replace the gross profit they used to get on new cars, which sell about 1,000 new cars a yearcar sales.
An old spare is to get buyers back to the store for a higher price
Margin transactions such as service and parts sales.
According to the American Association of Automobile Dealers, 12% of car dealers sold services and parts last year. -
But 47% of profits.
Another source of income is used cars, where it is difficult to shop on the Internet.
Then some dealers turned into gift shops.
At BMW Beverly Hills, you can buy the BMW cufflinks with the BMW logo for $28 or $708.
At the same time, Smart dealers are using the Internet.
Customers can book services or order parts from Cerrone's website. Her back-
Office system, latest version from Dayton, Ohio
Automatically send discount coupons via email based on Reynolds and Reynolds
Email or regular email to remind customer 10,000-
Mileage Check or extend-Warranty service.
In terms of sales, potential buyers can browse her inventory online, and can also view photos, calculate monthly payments, and fill out loan applications.
Dealers say the system is 15 minutes less than the three hours customers usually buy cars at dealers.
"The customer came to me at 45 minutes for lunch," Cerrone said . ".
"If things are easy to buy quickly, they won't worry too much about how cheap it is.
"Cerrone signed a contract with four car companies.
Recommended sites like Autobytel.
Send her hundreds of clues every month.
She complained about their expenses. -
Average $900 per site per month-
It needs a complete
Time internet sales reps through them.
But now, she insists on them because they sell about 10 times a month, enough to pay the cost.
Used car websites are more efficient for Cerrone.
She puts ads on large online classified advertising sites like AutoTrader. com and Cars.
Com, where customers can search for specific models, can link directly to the dealer when they find what they want.
These are the buyers you want.
The person who buys a used car will go further to buy his car and he will pay for it.
The average net profit margin of used cars is 1.
7% contrast 0. New car 7%.
Some of Cerrone's customers walked in with the stock number of used cars they wanted to buy from her website.
Internet sales accounted for 10% of her.
"It makes my life easy," she said . "
"Just go and get the key.
"The biggest change for dealers is that consumers pick research from automotive consulting sites such as Consumer Reports, Edmonds or Kelly's Blue Book. J. D.
Electricity and associates say 62% of the new
Car buyers first consult online about invoice prices, sticker prices and transactions-in values.
They rushed into the dealership like a lion, but walked out like a sheep.
It turns out that car pricing is a delicate thing.
Rothrock car sales company in Pa Allentown.
Salespeople counter by calling these sites on one of the ten computers scattered around the showroom.
Emphasis on trade
For example, a salesperson would acknowledge the prices listed online.
But he then changed his opinion that the condition of the car was not as good as the seller said.
This hit the proposed trade.
Toyota Camry worth 2000 from $11,000 to $10,000-
The difference between "good" and "good" states.
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then the issue with "invoice price.
"This is not the price paid by the dealer, just the starting point for calculating the price.
The manufacturer pays the dealer fee for each car they sell (
This is the so-called rebate)
Help pay for it.
The three giants pay 3% of the sticker price;
Foreign manufacturers, usually from nothing to 3%.
But that's not all.
Like toothpaste companies, automakers offer cash to attract retailers to move certain products at certain times ---
Buyers have never heard of incentives.
Even if a resourceful buyer finds this information-
This is a price, according to Consumer Reports. Com and other websites-
Only dealers can push so far.
Benjamin gardra, software engineer from Berkeley, California
Before purchasing the 2002 Subaru inland in December, undisclosed incentives were excavated and holdbacks were calculated--
Finally paid what the dealer wanted him to pay.
The dealer claimed that Gardella had reduced the price of the invoice by $650 and denied that he would be rejected.
"He will sell every piece of inland goods in his lot without any problem," gardra lamented . ".
"I chose a hot car, and if you were locked in a hot car, you 'd be finished.
"With or without the Internet, some sales strategies will never change, as Deirdre Holbrook of San Francisco went to buy a new Honda CR-at the end of last year-V.
The dealer installed an alarm system "accidentally" and then he provided a "cut"rate" $800.
The dealer will remove it. -
If she's willing to waste a day at the dealership
Mark eskerson, author of What auto dealers don't want you to know, says Holbrooke is almost in love with the classics.
Another trick for some salespeople: the "hidden screen" feature of dealer software.
They show customers the price of the car, the term of the loan and the monthly payment.
But the customer has never seen an additional fee like extended warranty be quietly credited to the monthly payment.
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