New Car Internet Pricing

Todd Dearborn

Vice PresidentCarsDirect

Pg. 47

The Price Is Right?

Strategies for Setting Optimal Online Prices

About Us

• Todd DearbornVice President, Automotive Internet Brands/CarsDirect

• Carmine RossiRegional Sales Manager Internet Brands/CarsDirect

Agenda

• Evolution of the Online Customer

• Pricing: Why Customers Don’t Buy

• Knowing Lead Sources

• What To Change

Why Customers Don’t Buy

1. No Contact

2. Still Looking

3. Pricing4. Wants Different Make

5. Didn’t Have the Car

Knowing Lead Sources

Knowing Lead Sources

MSRP $23,540Invoice $22,290CarsDirect Price $21,790

Destination Charge:Included (National + regional)

Ad Fees:Included

Incentives:Included (Special Pricing)

Knowing Lead Sources

MSRP $23,475Invoice $21,548True Market Value $20,884

Destination Charge:Incomplete (National only)

Ad Fees:Not Included

Incentives:Not Included

Knowing Lead Sources

MSRP $23,440Invoice $21,513Fair Purchase Price $22,038

Destination Charge:Incomplete (National only)

Ad Fees:Not Included

Incentives:Available (Special APR)

Knowing Lead Sources

MSRP $23,520Invoice $22,287Average Paid $22,024TrueCar Price Estimate $20,057

Destination Charge:Incomplete (National only)

Ad Fees:Included

Incentives:Available (Special APR, Grad, etc.)

Knowing Lead Sources

• Pricing Factors

How are incentives handled?

What about doc fees / “dealer fees”?

How does their configurator work?

What about stair-step money?

Knowing Lead Sources

• Pricing Factors

What is your competition doing?

Does the local dealer have input?

Was the lead organic?

Do they price from Sticker or Invoice?

What To Change

• Give a price on the phone/email/chat

• Talk to source about input on local market price

• Look at the lead and what it came with

• Fit into the customer’s process

What To Change

• Dealer trades – quote these too!

• Use C/S Notes

• Sell back end – Loan/Lease, Service Contract, GAP, LoJack

Customer Notes

The Dealer Synergy 4 “Ps”

ProductsGive pricing! Quote aftermarket products prior to visit

PeopleTrain them!

Process Fit into the customer’s buying process

PromotionsFactor it into the quoteRemind customers of qualifiers

Questions?