Automotive News - March 12, 2018 - MAXDigital - S4

How buying cars has changed:
the surveys say ...
Among those who shopped on the internet, car buyers say
they spent 61% of their shopping time online, compared with
34% of their time visiting dealerships.²
Online research was even more important to used-car buyers,
who say they spent 63% of their shopping time online.2
of car buyers say they were satisfied with
how long the purchasing process took. They
reported spending nearly 40 minutes sitting
idle at the dealership.2

of dealers say they discount the final
purchase price on a vehicle by an average of
more than $500.1

of all car buyers and 58% of used-car buyers
say they trusted that the dealership gave
them the best deal on their purchase.2

of dealers say they are considering changes
to their sales process in the next year.1

Source: 1 2018 MAXDigital Dealer Study
2 2018 Cox Automotive Car Buyer Journey Report

4 | MARCH 2018

4. The lack of staff expertise and the
inability to quicken the purchasing
process is exacerbated by the fact that
so many salespeople are new at their
jobs. Dealerships continue to suffer
remarkably high employee turnover,
especially on the sales side. Not only
does that lack of experience further
diminish customer confidence, but it
also costs dealerships time and money.
"Given the current turnover rate, if
you have 20 salespeople on staff, you
can expect to lose 15 of them this year,"
McMullen says. "Experts estimate that it
costs a dealership upwards of $30,000 in
recruiting, training and other costs every
time a sales position turns over."
5. Although the internet has increased
transparency for consumers and
expanded a dealership's potential market,
it also has created a "double discount"
quandary for dealerships. Because
shoppers can easily compare prices on
similar cars, dealerships need to price
their cars competitively-and post those
prices online.
But because of the persistent oldschool mindset, customers still expect to
haggle with a salesperson.
"Dealers tend to revert back to
the traditional model; it's like muscle
memory," says Tim Scoutelas, a Senior
Group Account Executive at MAXDigital.
"On the other side, customers have a preconceived notion that they are going to
get treated a certain way, and their guard
is up. Those expectations might be the
biggest challenge today."
Given all this dissatisfaction,
something needs to change, says
MAXDigital's McMullen.
"Dealers are still making money, but
grosses are under pressure," he says.
"Dealers are saying: 'I know I need to
change soon, but I'm not ready. And I
don't know how to do it.'
"Now is the right time to do it. Those
who don't change will be left behind."



Table of Contents for the Digital Edition of Automotive News - March 12, 2018 - MAXDigital

Automotive News - March 12, 2018 - MAXDigital - SIntro
Automotive News - March 12, 2018 - MAXDigital - S1
Automotive News - March 12, 2018 - MAXDigital - S2
Automotive News - March 12, 2018 - MAXDigital - S3
Automotive News - March 12, 2018 - MAXDigital - S4
Automotive News - March 12, 2018 - MAXDigital - S5
Automotive News - March 12, 2018 - MAXDigital - S6
Automotive News - March 12, 2018 - MAXDigital - S7
Automotive News - March 12, 2018 - MAXDigital - S8
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