Looking for ways to drive more revenue at your dealership?
EasyCars has put together 5 simple ways your dealership can increase revenue in 2022.
Let’s get into it!
1. Dealer Finance
The absolute best way to generate more revenue for your dealership in 2022 is through Dealer Finance. Dealer finance has always been an essential part of the car buying process but lately many car buyers prefer to seek finance from external providers rather than at a dealership.
To close finance deals at your dealership, you need to change the customer perception around dealer finance. The only way to do this is by offering multiple competitive finance options for customers. By offering quick access to multiple lenders, customers get the ability to choose and compare the cheapest rates available. If your dealership provides competitive, and cheap rates, customers will ask for finance from your dealership, it’s really that simple.
For your dealership, the benefit of increasing finance deals is you receive a lofty commission for every finance deal that converts. Commissions can vary but many lenders provide upwards of $1,200 per closed lead. Getting just a handful of finance deals a month can equate to almost $60,000 additional revenue for your dealership each year!
Related Article: How Australian Motor Dealers Can Close More Finance Deals in 2022.
2. Vehicle Add-Ons
To generate more revenue your dealership needs to look past the initial vehicle sale. There is only a certain amount of revenue you can generate from the vehicle sale itself. A good way of generating additional revenue is by selling vehicle add-ons.
Simple Vehicle Add-Ons your dealership can sell include additional vehicle warranties, servicing options, longer registration and even additional parts or accessories. Having additional options that customers can purchase gives your dealership a whole new area to generate revenue.
3. Sell Direct-to-Customer
Many dealerships make the mistake of selling only to customers who live in a close radius to the dealership. The problem with doing this is you are cutting yourself off from thousands of car buyers. To generate more revenue your dealership needs to expand its reach. No, You don’t need to open a dealership in another suburb in order to expand. The best way to expand your reach is by offering a direct-to-customer sales option.
Using your Dealership Website, you can offer customers the complete purchasing process online. Customers can request virtual vehicle tours, access free car history reports, organise dealer finance and even purchase the car online without even needing to visit the dealership. All your dealership needs to do is organise delivery to the customers location. The more people your dealership reaches, the more chance you have of increasing sales.
4. Assess your Dealerships Vehicle Pricing
As a Motor dealer, your ultimate goal is to sell vehicles as fast as possible. The reason why many dealerships find their vehicles failing to sell is because of the pricing strategy.
To generate more revenue for your dealership it is important that you frequently review your dealerships pricing and make the relevant changes based on customer and market conditions. If a vehicle isn’t selling at the current price look to lower the price so that it sells. The last thing your dealership wants is to have a car sit around for months and months. The longer a car sits in stock, the more your dealership has to pay.
5. Provide 5-Star Customer Service
It’s no secret that Customer Service is vital when buying and selling cars. If your dealership doesn’t provide great customer service, buyers will go elsewhere. To generate more revenue for your dealership it is so important that you provide the best customer service.
Look out for your customer, help them with their needs and most importantly make your sales process as fast and as easy as possible. If a customer has a good experience buying from your dealership, they will likely recommend you to their friends and family who could potentially purchase from you in the future.
Related Article: Top Strategies to improve Customer Service at your Dealership.
To increase revenue at your dealership you need to look beyond the car sale. The 5 options mentioned above are a few great ways your dealership can increase revenue in 2022.
We hope you enjoyed reading this article. To read more article like this, please visit the EasyCars latest news page here.
EasyCars by Jeal is an Australian, web-based, dealer management system that automates the buying and selling of motor vehicles. Using the latest technologies, EasyCars removes frustrations experienced at the dealership and opens your doors for greater growth.
EasyCars features include Simple Stock Management, Automated Advertising, Integrated Accounting, Government Compliance, Business Reporting, Reviews Management, Dealership Websites and more.
To learn more about EasyCars Dealer Management System or to arrange a no-obligation free demo, contact us today on 1300 473 744 or submit the form below.