The Importance of Trust…
If anything the online purchasing experience needs to work harder than anywhere else to generate trust and confidence in the consumer. Particularly when it comes to high ticket items like cars…
A recent study by trading standards in January in Warwickshire estimated that 27% of used cars available for sale were unroadworthy.
However, that is nothing compared to a Hertfordshire report in June… five in eight used cars sold were unsafe.
And, yet, these were cars available on traders’ forecourts. Not online, but in a place where it was expected that they would have been properly checked.
So, What do we Think is Driving This?
On reflection, there are two elements we believe drive this:
- Traders see low priced used cars as unworthy of proper scrutiny because there’s not much margin in them - so they take cars on spec and hope to shift them with minimum effort
- The squeeze on the consumers’ pocket is also affecting what a car can be priced at, lowering margins and again taking profit out of the car
What’s the Solution?
It is our view that the benefits of buying Approved Used Cars as opposed to purchasing from Traders is the only way in which a customer can have confidence in their purchase - both in terms of the way in which the car has been checked and prepared as well as the backup of the manufacturer when things go wrong.
Sure they cost a little more, but they’ll last far beyond the 2nd, 3rd, 4th and so on car bought privately or through traders. Trust and quality go hand in hand!
Sphere: Related ContentBrand Loyalty vs. The Credit Crunch
Although the internet car buying experience is still in its’ infancy, there are some trends that we found useful to share with you - some anecdotal, and some measurable.
The Right Experience
The internet car buyer is no different to any other online customer. They expect a professional, secure, smooth transaction and some kind of incentive for taking this route to purchase. Brands who recognise this end up not only benefiting from passing on the increased efficiency of the internet, but also end up with very satisfied customers - CarQuake’s CSI ratings are far higher for our dealers than through any other source of business.
The Real Deal
Online customers also expect a proper offer and therefore ‘deal’ for their enquiry. After all, they are not choosing to take the high ticket and overhead route… they just want a decent price and not to be messed around. All other consumer products have better offers online than on the high street - why should cars be different?
So, Where Does Brand Loyalty Fit?
Recent research shows there isn’t much loyalty and, if anything, it’s decreasing. All the more rapidly in times where personal spending is much more carefully considered. We can see from our site measures that customers coming in on one brand may end up enquiring on a completely different one.
We note that the brands where deals are there to be had online seem to be the same ones who are doing well in uncertain times. We also note that those encouraging customers to continue using the dealer network are also benefiting from high satisfaction.
We can also receive emails from customers that provide supporting evidence for all we’ve covered. For example…
“I couldn’t get a deal on a MakeX car, so I went for a MakeY… I liked the sliding door, loads of gadgets, much more space. The dealer offered interest free finance too.”
“What an amazing site. I was contacted by a MakeZ dealer and confirmed purchase today. Less than 48 hours after submitting my request. Many many thanks” (this arrived as I was writing this post).
The customers speak for themselves… we need to continue to be ready to respond to their needs.
Sphere: Related ContentNew Car Sales… Something’s Got to Give
It’s no surprise that we watch the new car marketplace carefully, and given this, that we are always interested in the gap between what is reported and what is actually the case.
New cars sales seem, on the face of it, to be rising… tell the franchised dealers the great news… or perhaps they know something that we don’t? Word on the street is that there are a lot of dealers out there with stock of new cars, having bitten the bullet for Q1 and wondering how they can achieve decent NEW business in Q2. After all every pre-reg takes a new buyer out of the marketplace.
Yes, the Pre-Registration issue raises it’s ugly head. Put simply, this is deliberate devaluation of beautiful new cars… register them to make them ‘not new’ even if they haven’t been driven. Curious strategy? Only in the motor trade… where the production lines churn out more cars out than there are buyers for them.
Sphere: Related ContentWhich? MotorTrader? Who?
It’s what we’ve been saying for a long time, and something that dealers using CarQuake know already… Customers SAVE MONEY buying online AND they prefer doing so too.
Motor Trader on the recent Which? Report
Customers save, on average 11% more… They also save their time (and patience) by shopping online for new cars… and Dealers come out poorly. In the most part, they are forced to tow the corporate line, and then they get slammed on customer satisfaction for trying to ‘do the job’ (i.e. not discounting cars).
Sphere: Related ContentHelp Needed… But Only for Dealers Who Want More Business
+++ STOP PRESS +++ STOP PRESS +++ STOP PRESS +++ STOP PRESS +++
It’s as if someone just flicked a switch… and the lights came on! January has already started off with a real explosion of activity at CarQuake.
Someone tell our visitors that the market is wobbly! We need help as we’re still looking for dealers to take advantage of the sheer volume of business we generate… so pass the message round - or just contact us.
Sphere: Related Contentkeep looking »
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