Top 3 Digital Enhancements for Independent Dealers

Independent auto dealers are making a killing right now. They snapped up inventory before the current chip shortage made it difficult to find quality used vehicles. Consumer demand led to a record 10% increase in used vehicle prices in April — the sharpest monthly increase in more than a decade.

But how long will it last? Factories will return to normal production, and when they do, supply and demand of used vehicles will return to a more equitable state.

Now’s the time to think about what your dealership can do to engage customers and keep profits high when demand drops back down to normal. Technology that enables easier vehicle shopping, a faster purchase process and efficient lead follow-up is one of the best investments you can make. Here are the top three digital enhancements independent dealers need to connect great vehicles with the customers who need them.

Digital retailing tools

The vast majority of your customers want to start the buying process online. In addition to making shopping easier, having digital retailing tools on your website heightens your professionalism and brand image. The best independent dealer sites I’ve seen are contemporary and modern, with an easy-to-follow process that leads the customer through interactive inventory photos, financing applications, monthly payment calculators, and trade-in valuation.

While you may think that digital retailing and transparent pricing erode gross, it’s not true. Giving customers what they want on their terms actually helps you maintain gross because they come into your store ready to buy.

Financing and e-contracting tools

Financing options and preapprovals are a great online selling tool. Customers with preapproval can select a vehicle and go to your store with confidence. E-contracting is also a big selling point and many independent dealers are already doing it. Unlike the complicated sales at a franchised dealership, a used sale is straightforward and easier to complete with digital signatures. While some banks are tightening up lending, there are options like Ally Bank and Credit One that can be great partners.

CRM with workflow capabilities

The average independent dealer receives twice the leads of a franchised store, but most admit that they do a poor job of following up. A CRM with workflow capabilities, follow-up alerts and auto-responders will help you engage and nurture those leads for more sales. Most CRMs can also work with apps that can take customer communications to the next level. For example, the QuickpageTM Video Sales App lets your sales team create and text videos to customers and store that communication history in your CRM. When all communications append to a customer within the CRM, you can use that information to better target your next communication.

Independent dealers are taking the unprecedented demand for used vehicles all the way to the bank. However, this market won’t last forever. Invest in these top three digital enhancements and you’ll keep engagement and profits high — even as the market stabilizes.