Research Shows Dealers Are Overestimating Trust from Customers, Not Completely Knowledgeable About Vehicles and Significantly Dropping PriceApril 11th, 2017 by MAXDigital
CHICAGO — April 11, 2016 — MAXDigital, a premium end-to-end software provider for automotive dealers, released new strategic dealer research on the subject of trust and transparency in the digital age. In conjunction with Erickson Research, MAXDigital surveyed U.S. dealers during the 2017 National Automobile Dealers Association (NADA) Convention. Key findings from the research include:
- Dealers are overestimating their trust by customers. Nearly 70 percent of dealers said their customers have a high level of trust in their salespeople. That is a huge disconnect from the December 2016 Gallup poll that showed just 9 percent of consumers have a high level of trust in car salespeople.
- Customers are not only driven by price; they’re looking for value. Only 21 percent of dealers completely agreed that customers were most concerned about getting the lowest price on a vehicle. This closely aligns with a consumer study that found 79 percent of consumers bought because they were getting quality and value at a fair price, versus only 21 percent that bought on price alone.
- Salespeople are not completely knowledgeable about all the cars they sell. Only 35 percent of dealer respondents said their salespeople are completely familiar with all the cars they sell.
- Customers do their research before arriving at the dealership. 8 out of 10 dealers said customers arrive— either most of the time or always— at the dealership having thoroughly researched car options.
- Customers sometimes know more than the salesperson. 61 percent of respondents said customers either sometimes, most of the time, or always know more about a vehicle they are considering than the sales team.
- Dealers are providing large discounts on price. 56 percent of dealers are dropping price $500 or more per vehicle during the sale. Another 11 percent don’t know their average “drop.”