Pub. 1 2019 Issue 1

30 MINUTES TO SELL A CAR? Sell at the Speed of the Market C an you sell a car in under an hour? If a customer comes in ready to buy, how long does it take to sell the car? If they know what they want, the car is in your lot, and they are pre-approved, can you sell a car in 30 minutes? At this time, you may be asking yourself about my mental state. How can anyone even suggest that we can sell a car that fast? I have bought my share of cars and I am aware of the process. The sales process is lengthy, and it requires the involve- ment of various players. Sometimes customers do not really know what they want, or they want to negoti- ate a lower price. However, times are changing, and speed, an easy experience, price transparency, and personalization are key strategic advantages. To sell a car to millennials, you need to understand how they buy. Over 45 percent of millennials complete their research on their mobile phone. They have extensive prod- uct knowledge when they come into your store. They expect the same price online and on your lot. They appreciate a service tailored to them and they are willing to buy from a dealer who can make the process easy. They do not want a long boring sales transaction. You have to sell them a car in a short amount of time. Customers still love test drives. A majority – 75 percent of millenni- als – will test drive at a dealer and finish their purchase online. This may explain why, as of June 19, 2018, Carvana’s market capitaliza- tion surpassed AutoNation’s market cap. This high percentage also tells us that customers want to touch and feel the vehicle they intend to purchase. More importantly, 60 percent of customers still want expert advice from the dealership personnel. For dealers, the key is to get them to buy when they are in your store. According to Forbes, customers today see time as the ultimate luxury, they expect the answer to always be yes, they want an authen- tic experience, and they want local quality and craftsmanship. Most of these are things we can do inexpen- sively while getting a good return on our investment. They are great differentiators from the physical and online competition. Another important factor is to give customers more ways to buy. Maybe your customer wants to purchase from you but they want to complete the transaction on your website. If you give customers more ways to buy, you can increase sales of vehicles and auxiliary products. This happens when the process is simple. Your website should be optimized for mobile and have easy navigation. Customers should be able to purchase quickly. Cus- tomers are confused by cluttered websites with unnecessary calls-to- action. Millennials grew up with Amazon and one-click shopping. Is it possible to create a similar experience? Once customers make it to the checkout, they should have ‘suggested add-ons’ that enhance their experience, lets them to customize their vehicle, and adds to your bottom line. Shiv Khera stated that, “people who wish to go into the future should have two skills to succeed – the ability to deal with people and the ability to sell.” So, how fast can you sell a car at your store or online? Issue 1 2019 13 CFADA.ORG