So much has changed in the past year. And chances are that our new reality is here to stay. Digital retailing has crawled its way into the automotive industry. New touchpoints mean new revenue streams. While digital retailing probably won’t fully take over the traditional buying process, it does offer opportunities to enhance the customer experience. But how does this impact your total grosses?
Modern consumers are slowly learning more and more about market conditions while out shopping for vehicles. This means when a potential customer comes to your lot, they are armed with competitive information that will influence the deal. Consumers are privy to inventory, packages, MSRP, and a whole heck of a lot more.
In particular, dealers are at a double disadvantage when it comes to holding gross because they are paying higher than normal book values for used inventory. New inventory is slowing down, especially in light of the current semiconductor chip shortage. As we saw in 2020, these types of shortages on new inventory drove used car prices up. OEM’s are already having a hard time keeping up with new car demand as it is. Throwing another wrench into the equation puts dealers against the wall.
Another consideration for holding more gross is all of the factors that tighten margins. From shipping to reconditioning, there are a multitude of ancillary fees that stack up. You already know how difficult it is to get customers to realize the true value of their vehicles. So instead of fighting with your customers over small things, approach them with transparency. And the best way to do that is with a software solution for trade-in and appraisals.
Built on the FirstLook platform, MAX Digital’s collaborative trade-in tool delivers a preferred experience. Raise closing rates, maximize earnings, and increasing customer satisfaction with MAX My Trade is a slam dunk. You put your shoppers in the driver’s seat with a walkaround app that helps your customer understand the process and feel totally included. The final offer will be approved by your sales manager so the team retains full control of the offer. Appraisal Performance Reporting makes it easy to see the impact of the program at a glance.
MAX Digital is here to help you hold more gross. If you want to learn more about how you can earn more money on every transaction, then it is time to schedule your free consultation today.