How Can a Used Car Dealer Keep Customers Happy?

How Auto Dealers Can Encourage Customers to Re-Purchase

Used Car Dealer and Frustrated Customer in used car dealershipYou could do a lot in 90 minutes. You could watch three 30 minute shows, walk six miles, or as a used car dealer, you could create an exceptional customer satisfaction experience during the car buying process at your dealership. A Cox Automotive study found that customer satisfaction at dealerships is highest within the first 90 minutes at the lot. After 90 minutes, customer satisfaction begins to drop.

Depending on where a potential customer starts their buying process, the typical transaction at a dealership could last close to three hours, almost double the 90 minute window of peak customer satisfaction. Consumers walk into dealerships everyday excited and ready to buy, but leave unsatisfied due to the amount of time it took to close a deal. That deal your salesperson worked so hard to close, closed with an unsatisfied customer.

Of course, certain processes take time and have to happen for a sale to close, but how can dealerships ensure that customers are leaving satisfied with their car buying experience?

Value your customer’s needs
Every customer wants both their time and needs to be valued while shopping, especially for a larger ticket item such as a car. An experience focused on making sure buyers know the used car dealer they’re working with are putting their needs first helps to reduce the gap that can be felt between a salesperson and consumer. This could be as simple as staying later to work around full time work schedules, or making sure there are toys and activities around for a customer’s child to play with.

Keep it authentic and transparent
As a used car dealer, you know the vehicle buying process backwards and forwards. Sometimes getting back to the basics with customers is all it takes to create a more enjoyable buying experience. Making sure customers have an idea of what needs to happen between the time they choose a vehicle to purchase, and the time they finish signing the dotted line can help to improve transparency between your dealership and the customers it serves.

Can you bridge the gap between in-store and online?
The lines between shopping in-store and online are continually blurring. The idea of ensuring customers have an idea of what needs to transpire before the purchase of a vehicle should be mirrored both in-store and online. Many buyers want to complete a majority of the car buying process online before even stepping into a dealership.

Here are a few steps in the car buying process you could add to your dealership’s website to benefit customers that want to do a majority of their car buying online.

  • Inventory: Showcasing your inventory online shows customers what you have in stock. Depending on what your potential customers are looking at, they can know at a glance whether or not your dealership offers the vehicle they are looking for.
  • Price Negotiation: Price negotiation is likely the most painful part of the car buying process. It involves multiple dealership departments and can appear quite cumbersome to consumers who are accustomed to making immediate purchases. A tool like MakeMyDeal allows for a direct line of communication between customer and dealer. Deals and terms can be finalized before a showroom visit. This can help dealers understand what buyers are looking for in terms of features and prices, in addition, it can build trust between used car dealers and customers.
  • Trade-ins: If a customer wants to trade in their vehicle, it can take time to determine the value of their trade-in and what they can put towards a new purchase. Including a realistic trade-in appraisal tool on your website can help to increase transparency between buyer and used car dealer, and can help streamline the trade-in process.

The key to putting these tools online is making sure that buyers who start the purchase process online will be able to pick up where they left off if they make an in-store visit. Whether a buyer starts their journey online or in-store, a cohesive online to in-store buyer experience is necessary.

Improving customer satisfaction not only makes the car buying process less painful for customers, but can also help to build customer loyalty. An Autotrader study found that customer loyalty to a dealership is stronger than their loyalty to vehicle make. The study also found that 30 percent of used car buyers return to a dealership where they previously purchased a vehicle or had previously had their vehicle serviced.

If your used car dealership isn’t leaving customers satisfied with their car buying experience, change is possible – and rewarding!

How Should Automotive Dealers Reach Generation Z?

automotive dealers gen z

Just when you thought you had millennials figured out, get ready for 80 million strong Generation Z. Gen Z holds the influence of $200 billion in spending power, and luckily for automotive dealers, ninety-two percent said they plan to own a car.

automotive dealers gen zBorn basically with a cell phone in their hands, Gen Z is made up of true digital natives who have never existed in a world without the internet. This generation was born between 1998 and 2016, and their formative years were influenced by the last breaths of the economic boom of the ‘90s, the Great Recession and the war on terrorism.

A recent study from Autotrader and Kelley Blue Book highlights the trends Gen Z will be looking for when they gear up to purchase a car. So what should automotive dealers do if they want to reach this generation?

It’s All About The Experience—Both Digital and Face-to-Face
Even though Gen Z grew up in the digital age, they still highly value face-to-face interaction with sixty-seven percent reporting they would rather car shop in-store. This generation values a positive experience above all, including convenience and price. However, this face-to-face interaction might look differently than typical, past appointments with potential customers.

Moving forward, dealerships need to consider taking on the role of an “experience center,” because Gen Z will most likely do their research on multiple digital outlets before stepping foot in a dealership. The main purpose of their visit will be to take their prospective purchase on a test drive, and to see for themselves what add-ons and options are available.

Integrated, Visual and Interactive
If dealerships are now taking on the role of an “experience center,” automotive dealers need to make sure they are reaching Gen Z where they are online.

Dealers can create the positive experience this generation is looking for by tapping into the generation’s digital, highly visual and interactive nature. Gen Z is accustomed to moving seamlessly between their devices and the real world, with an expectation that the information needed should do the same. Websites and promotions should be readily available to Gen Z and should move uninterrupted across devices between the online and offline world.

Strong visuals and fewer words are effective when trying to reach Gen Z. With their expectation of integrated and interactive information, consistent and interactive advertising messaging and design throughout Gen Z’s favorite sites and social media platforms is crucial to capturing the attention of this generation.

The closer an automotive dealer can get to providing a positive experience for this generation digitally, the closer this same dealer can get to providing a positive experience with Gen Z face-to-face.

Dealer Social Media: Tips for Your Dealership

Floor plan finance company representative conducting an automotive dealership audit

Where does your dealership stand on the social media spectrum? When it comes to dealer social media, are you digitally savvy or is your online presence sporadic or worse even, non-existent? Let’s be honest. The buying cycle of consumers in the digital space has significantly shifted, and dealerships need to be prepared to adjust to changing consumer demands.

Take a look at some of these numbers from Think with Google.

  • Dealer social media tipsSixty-six percent of recent purchasers say, “YouTube was one of the best places to watch ‘in-action’ videos of vehicles I considered buying.”
  • Twenty-eight percent of the buying population feels that social media greatly influences the narrowing of their brand or model consideration.
  • Twenty-seven percent said that social media greatly influences their identification of a dealership from which to purchase, with sixty-nine percent indicating that a friend’s favorable post about a dealership positively impacted their opinion of the dealership.
  • Approximately two-thirds of those who use Facebook in the automotive purchase process indicated that a friend’s favorable post about a brand or vehicle positively impacted their own opinion of that brand or vehicle.
  • Among the 2,000 car shoppers surveyed by Dealer.com, “Twitter has a 45 percent visitation rate, and 22 percent of respondents use it at least daily.”

These numbers paint a clear picture: dealers need to be leveraging the social media piece of the digital marketing puzzle. Whether you are just starting out or you’re a dealer social media expert, here are a few tips to ensure a successful social media presence.

But First…

Everyone’s goal is to turn social media likes and fans into real world purchases and referrals. A lot of dealers might say, “Social media is too much work and it won’t sell me any cars.” They don’t believe that it works if they can’t track it. Then those same dealers turn around and put thousands of dollars in advertising towards traditional channels like TV, radio and billboards, which arguably have much smaller measurable impact. The truth is, there are a lot of ways to measure engagement and sales through social media efforts compared to traditional advertising methods.

While it is possible to make sales through social media, keep in mind social media is really all about connecting with your audience. Boring content and a static account won’t bring people back to visit your dealer social media pages, or visit your dealership in-person. What content will your audience connect with which will consequently keep your brand in the spotlight?

Be Realistic and Consistent

With these things in mind, be realistic about the social media goals you set. Who is available to man your dealer social media and what content are you able to produce? How consistently are you able to produce it and can you maintain that workflow? After your content is published, how do you measure whether or not it was successful? With any effort, ensuring that clear objectives are set at the beginning is a key to managing and monitoring a campaign’s success.

Make Social Media Management Easy

Once those questions are answered, you can begin mapping out how you want to handle day-to-day social media management. Luckily, there are a numerous tools available to help you accomplish your social media goals.

  • Scheduling Tools:Who has the time to log in to individual social media accounts to consistently post updates? Using social media scheduling tools like Hootsuite, Buffer, Sprout Social or Social Pilot enables you to schedule a number of posts in advance. These tools offer a number of other features like content calendars allowing you to schedule social media posts around events or annual sales.
  • Understanding Engagement and Return On Investment: What did people do with your post? Did they scroll by it? Like it? Click through to your website and fill out a lead form? Most social media sites, and even some scheduling tools, offer a suite of analytics so you can dig into the audience’s engagement with your content. Google Analytics is an excellent free tool that gives you the ability to monitor what your audience interacts with on your website. When your social media efforts are integrated with your website, you can gain an accurate picture of your audience and the content they are interested in viewing.
  • Use Your Resources: Your employees don’t just have one skill, for example, an IT member may have an excellent photography skills and be proficient on Instagram. Tap in to those accessible resources and reward employees who come up with posts that garner the most shares or likes to encourage them to continue contributing to the success of your social media. Allow your teams to freely brainstorm ideas, and don’t shoot ideas down. Powerful campaigns come from engaging with your customers, so talk to them about what they think and enable them share their story. This results in a free way of learning more about your demographic and in many cases powerful client testimonials.

Running a successful dealership and creating a strong dealer social media presence isn’t easy and can take a lot of time that you might not have. If you aren’t interested in managing your dealer social media yourself, there are services like Dealer.com that specialize in social media management for dealerships. They will work with you to make sure your dealer social media presence and overall strategy helps you to connect with your community and audience.

It starts with taking time to evaluate your social media presence and goals, then coming up with a content plan to make concentrated efforts to connect with your audience. Get these things squared away and you’ll be on your way to becoming savvy in social media.

NextGear Capital Enters Agreement with CarMax Auctions

man on car lot pointing out cars that used floor plan financing for used car dealers

man on car lot pointing out cars that used floor plan financing for used car dealersNextGear Capital has announced a new agreement with CarMax. The agreement with CarMax, the nation’s largest retailer of used vehicles, will allow dealers to use their NextGear Capital lines of credit at all 68 CarMax auction locations.

NextGear Capital floor plans are currently accepted at over 1,000 live and online auctions, and may be used with inventory sources such as trade-ins, off street purchases and loan payoffs. It is anticipated that NextGear Capital floor plans will be accepted at all CarMax auction locations as of August 8, 2016.

“We recognize CarMax as a company with high integrity and a reputation built on strong values and exceptional customer service. NextGear Capital shares these values and service-centric approach to business and is pleased to join efforts with CarMax in providing additional value to our dealers. We are committed to providing our dealers the tools necessary to be successful. The ability for dealers to utilize their NextGear Capital lines of credit at CarMax will enable greater access in sourcing inventory,” said Randy Dohse, senior vice president of sales and operations at NextGear Capital.

Industry Leader Closes $1.95 Billion Financing Securitization

auto floor plans vs cashNextGear Capital, Inc., the most comprehensive provider of lending products and solutions for the automotive remarketing industry, is pleased to announce the recent closing of its $1.95 billion securitized bank facility. Led by The Bank of Tokyo-Mitsubishi, the two year securitized facility provides flexibility and tremendous lending capacity through a large six bank syndicate. The amended bank facility complements the existing privately-placed AAA rated ABS term bond financings that NextGear Capital has in place through 2019.

Commenting on the new facility, Greg Hurst with The Bank of Tokyo securitization group, noted, “The banks were thrilled with the opportunity to participate in this facility and partner with such a great company that is known for its strong management team. The banks view our relationship with NextGear Capital as a long-term partnership and we look forward to being a part of NextGear Capital’s growth plans.”

David Horan, Chief Financial Officer of NextGear Capital commented on this latest financing.  “With the responsibility of supporting a growing dealer body of over 23,000 across North America, it is critical that NextGear Capital has a strong bank group that fully understands our business and is committed to our growth objectives, both short and long term. This facility, coupled with our ABS bond offerings, provide the growth capital to deliver on our mission of supporting the inventory financing needs of our independent dealer clients.”

 

NextGear Capital Provides Valuable Dealer Resources

Chris Tingler using account portal on his mobile device

As a vested partner dedicated to dealer growth and success, our dealer resources and educational efforts are focused on helping dealers succeed, regardless of whether or not they’re a NextGear Capital customer. In order to best serve and assist dealers in developing their business, we keep them up-to-date and connected to the latest industry trends, technology and dealer resources.

Dealer resources for NextGear Capital include free quarterly dealer summitsWe connect dealers to thought leaders within our industry through the Cox Automotive Dealer Learning Center, as well as our free quarterly series featuring in-person Dealer Summits and online Webinars. These complementary dealer resources are not only comprehensive, but allow dealers to learn from some of the industry’s leading voices.

The Cox Automotive Dealer Learning Center houses research and market reports, which provide details on the health and state of the industry. There you can also find dealer resources such as whitepapers, case studies, shopper insights and best practices to help dealers learn about what others are seeing within the industry. Dealer Summits grant the opportunity for NextGear Capital teams to meet with dealers face-to-face, and for dealers to connect with their peers as they learn from industry leaders. For those who can’t always travel to the Dealer Summits, our quarterly webinars give independent dealers the opportunity to remotely learn from industry experts.

Each of these resources span a variety of relevant topics such as best practices on sourcing, buying and selling your inventory –  valuable information that dealers can immediately start putting into practice.

Dealer resources for NextGear Capital includes webinars. The next webinar will be hosted by Tom Hudson.Our next webinar titled, “What Recent Federal Enforcement Actions Mean for Dealers” will be led by Tom Hudson, CEO of CounselorLibrary.com and Editor-in-Chief of CARLAW ®. He’ll be covering the recent FTC restrictions on dealer advertising and disclosure practices, and the CFPB’s recent bans on certain arbitration agreements and how these changes can affect a dealership. The webinar will occur August 25, at 2:30 p.m. Register now to reserve your spot.

We strive to be accessible to all dealers. Contact us and let us know if there are additional dealer resources you would like to see available. We look forward to continuing to serve dealers with unparalleled access, industry-leading solutions and valuable dealer resources to aid independent dealership success nationwide.

NextGear Capital Technology Focuses on Improving Customer Experience

NextGear Capital technology and business sectors work together at 61616, their program increment session to plan for the next quarter.

On Thursday, June 16, 2016, the NextGear Capital Technology Department hosted their quarterly Program Increment (PI) planning session cleverly titled 61616 at the company’s headquarters in Carmel, Indiana. Although teams were engulfed in planning during the two-day process, non-technology team members were invited to check out the session and witness the various teams planning all of Q3’s initiatives.

NextGear Capital technology and business sectors work together at 61616, their program increment session to plan for the next quarter.

 

A primary goal for 61616 was to ensure that NextGear Capital Technology teams are working on projects that align with the business’s overall objectives. By focusing on the organization’s goals and priorities, Technology team members are able to deliver solutions that will have immediate and lasting impacts. Additionally, NextGear Capital Technology teams strive to remain transparent in their processes and projects, allowing the organization to gain insight into what is being planned for upcoming quarters.

NextGear Capital technology and business sectors work together at 61616, their program increment session to plan for the next quarter.After presentations and speeches from both team members and business partners, NextGear Capital Technology teams broke out to detail their respective plans. Utilizing the office’s largest meeting space allowed the various teams to easily communicate with each other. The most important objective of a Program Increment (PI) planning session is to help align the business with the technology aspect of things and Technology’s PI planning sessions provided NextGear Capital with an opportunity to have a voice in prioritization and planning.

With 170+ people in one room, the noise level was high, but the focus and ease of communication was constant. The atmosphere was positive and ideas were shared in open conversation, proving the PI planning session method truly promotes teamwork and comradery. Having a collaborative event like 61616 furthers the partnership between the business teams and the technology teams, allowing for continued transparency between the work that the technology department is doing and the knowledge of the company.

NextGear Capital Technology teams successfully created thorough plans for moving forward into Q3, and although these plans are subject to change, the foundation has been laid and there was an alignment of priorities that are now more easily understood by all involved. The success of this event is attributed to the hard work of the technology teams and the willingness of the business to participate and voice their input. The technology department plans to hold another PI planning session to plan for Q4 in the future.

The NIADA Convention through a NextGear Capital Lens

NIADA Convention attendees raced on a NextGear Capital arcade racing game. First place was a NextGear Capitaldealer!

On June 13, the 70th Annual National Independent Automobile Dealer Association (NIADA) Convention & Expo commenced at the Mirage Hotel and Casino in Las Vegas, Nevada. Welcoming dealers from all across the country, the NIADA Convention spanned four days, inviting guests to visit the many exhibitor booths and take part in a number of breakout sessions.

As NextGear Capital, we have participated in the NIADA Convention since the inception of Dealer Services Corporation (DSC) in 2006. NextGear Capital exhibited in the Mirage Events Center along with other Cox Automotive business units, including Autotrader and Dealertrack.

NIADA Convention attendees raced on a NextGear Capital arcade racing game. First place was a NextGear Capitaldealer!This year, NextGear Capital was given the opportunity to create a “Winners Circle” in the Mirage Hotel’s rotunda space. On branded racing arcade games, convention attendees were able to race towards the virtual finish line in hopes of placing within the top five participants and receiving a prize. Better yet, the first place winner was a NextGear Capital dealer!

NextGear Capital also partnered with NIADA to award four deserving students with $3,500 scholarships and one with the top honor of a $10,000 scholarship. Randy Dohse, Senior Vice President at NextGear Capital, represented NextGear Capital and addressed the evening’s crowd in addition to presenting scholarships to the award recipients.

NextGear Capital Vice President of Development, Susan Moritz, led a discussion at the 2016 NIADA ConventionAlong with many other exciting facets of the NIADA Convention, NextGear Capital’s first meeting with the 2016 Dealer Advisory Council (DAC) was held. This is the council’s second year, and the second time the inaugural meeting was hosted at the NIADA Convention. Additionally, NextGear Capital’s Vice President of Development, Susan Moritz, led a breakout session Wednesday afternoon for attendees. Her presentation highlighted how to partner through positive disruption, which was presented to a packed room of engaged dealers.

With the excitement of this year’s convention, NextGear Capital looks forward to attending the 2017 NIADA Convention & Expo!

CANstruction for the Cause

NextGear Capital Canada CANstruction

In 2007, Cox Automotive’s “Drive Away Hunger” campaign launched to support Feeding America, one of the organization’s more established community partners. Since its inception, Cox Automotive team members across the globe have participated in the week-long campaign which culminates with CANstruction, after which all canned food items are donate to a local food bank.

CANStruction volunteers in green matching shirts work together to build structures out of canned goods

“It’s very sad when you know the people who typically go hungry in our communities are also the most vulnerable: children, the elderly and veterans. With Cox Automotive’s Drive Away Hunger campaign, it educates our team members about hunger in our communities while also showing everyone that you can have some fun while giving back,” Daisy Hibbard, Manager of Internal Events and Community Relations, said.

CANstruction volunteers work together to build Olympic rings out of canned goods
NextGear Capital volunteers work together to build the Olympic rings for their CANstruction submission.

This year marks the second year of participation for NextGear Capital and as a company, we set a goal to raise 10,000 pounds of food among team members around the world.

While the food drive itself is Drive Away Hunger, the campaign ends with CANstruction, an exciting event team members take part in at the corporate office or at their nearest Manheim auction. Team members are grouped by department and create structures using only their collected donation items. Each team competes for the judges’ approval and to be able to call themselves the CANstruction champions.

In support of NextGear Capital’s efforts to collect food and raise money for their local food bank Gleaners, Cox Automotive matches two dollars per pound of food donated. Last year, Cox presented Gleaners with a check for $13,670 and NextGear Capital made a global impact by donating over 7,000 pounds of food. With the recent release of this year’s numbers, we are thrilled to report that we exceeded our 10,000 pound goal.

For the past two years, these numbers have contributed to the story of NextGear Capital’s commitment to community. CANstruction would not have been possible without NextGear Capital’s compassionate and slightly competitive team members. All teams fully immersed themselves in the campaign and at NextGear Capital’s corporate office, one team raised over $1,000 before the campaign even launched. The winning team raised an unprecedented $1,900 for their CANstructure throughout the duration of the campaign.

This year, 13 teams participated in CANstruction, with the winning team for Judge’s Choice being Team CanUDigIt. Their structure was judged on its all-around great use of props, space, color, creativity and its ability to catch the eye. Team Waggoneers came in second and won the award for Most Wanted. This structure was judged based on its ability to use the food items that are most needed and its attention to detail.

Winning CANstruction team CanUDigIt with their canned good castle
Winning CANstruction team CanUDigIt!

“This is an annual food drive that every single team member gets behind and gets excited about because they love the friendly competition of donating for the cause and building for the prize,” Hibbard said.

All of the participating teams successfully collected items that are most in need. These items include canned fruits and vegetables, canned beans, canned soups, rice, granola bars, and much more. With the efforts of the teams here in Carmel, Indiana, over four tons of food were donated to Gleaners Food Bank of Indiana.

If you are looking for more ways to get involved with Gleaners Food Bank of Indiana, click here to visit their website and explore more volunteer opportunities.

The Distinction of a NextGear Capital Floor Plan

Dealer using First Gear

Every dealership is unique, with its own needs, priorities and goals. So when it comes time to seek inventory financing, you need a floor plan provider that understands your dealership’s goals and can create a flexible plan right for you. At NextGear Capital, we know that being able to procure vehicles from multiple sources, at your convenience, is crucial to your dealership’s success. With a NextGear Capital floor plan, your line of credit is accepted at over 1,000 live and online auctions, in addition to inventory sources such as trade-ins, off-street purchases and loan payoffs. And to make sure you have the buying power you need right at your fingertips, NextGear Capital offers 24/7 account access, through our mobile platform myNextGear. With myNextGear, dealers can floor units, make payments and view titles all from their hand-held device.

Flexible Terms to Help Increase Your Buying Power

Inventory Financing, often referred to as floor planning, provides you with the necessary cash flow to run your business without stretching to cover operational expenses. A NextGear Capital floor plan gives you the buying power you need for added inventory on your lot, increasing revenue while keeping cash on hand for other business expenses.

NextGear Capital is equipped to offer flexible terms and competitive pricing along with solutions tailored to your unique business needs. While the avenue in which you source your vehicles may change, your inventory finance company should be your rock. Not only should your inventory finance provider understand the nature of your business and the flexibility you need, but it should mirror that flexibility in its relationship with you. This includes providing insight on potential market opportunities for your business, improving income opportunities and counseling you on the latest and greatest industry tools. NextGear Capital’s local representatives are in the field every day doing just that.


Industry Expertise that Benefits Your Business

NextGear Capital’s leadership team, boasting over 100 combined years of auto financing experience, has positioned the our company as one of the foremost thought leaders in the industry. A NextGear Capital floor plan is more than a flexible finance solution, it is also backed by local representatives and a knowledgeable support staff, all dedicated to your dealership’s growth and success. NextGear Capital is committed to going above and beyond what you would expect from a financial provider. Darren Vivolo, Owner of Bayshore Automotive, put it best saying, “NextGear Capital is like having another staff of employees.” The support team at NextGear Capital makes time to understand what is driving your dealership’s business and what matters most to you.


Cutting-edge Technology to Simplify Buying and Selling Inventory

NextGear Capital’s unparalleled speed of service and real-time technology offers dealer account access from virtually anywhere – online, on the go and on the phone. Advances in technology – such as the use of mobile devices – have made floor planning an easier to use and more powerful tool for dealers by saving time and simplifying the process of buying and selling inventory. With this rise in technology, you now have the ability to browse and purchase inventory from the comfort of your desk or home, meaning you can conduct business on your own terms.


Access to the Industry’s Leading Network of Brands

As a Cox Automotive brand, NextGear Capital is part of the strongest portfolio in the industry, made up of more than 20 brands that together provide end-to-end solutions for dealers like you. Cox Automotive is a leading provider of products and services spanning the automotive ecosystem worldwide. With more than 40,000 clients, Cox Automotive strives to better understand clients’ needs in order to create efficiencies and alleviate challenges, providing a wealth of resources to its customers. When you choose a NextGear Capital floor plan, you gain access to the industry’s leading network of brands, a power backing which can give your dealership a valuable, unique advantage.