The Anatomy of a New Car Price Quote - Part 3

Posted on January 18, 2005

Filed under: General — Car Quote @ 10:18 pm
Okay…so now you’re a “lead”. But what does that mean? What can you expect now?
Well, here’s how it is supposed to work: you’ve submitted your free new car quote and hopefully within 24-48 hours you’ve received an email back from one or multiple dealers. Most car dealers don’t get enough information from the lead alone to give you an accurate quote on a new car. They will probably send you an email asking for more information: what specific options are you considering? Leather or cloth? Need a moonroof? EX or LX? DVD Player? You get the idea.

Many dealers use an ‘auto responder’ email to let you know that they’ve received your car quote and expect to hear from them in the next day or two. And unfortunately for many consumers that is all they get…an email. No phone call. No car price quote. And an experience that leaves little to be desired. Surprised? Well it’s true. Many car dealers out there do NOT call or email their leads. They set up their auto responders and hope you call them. This is lazy. This does NOT help you get a good deal on a car either. But alas, there are dealers out there that get it. And this is precisely why you want to be a lead.

Here is my list of the top reasons why you want to be a lead:

1. Some of the best dealers understand the value in buying leads - this is good for you the consumer. Good dealers buy leads.

2. Internet Sales Managers are some of the best-trained salespeople at the dealership. They understand today’s Internet consumer and how to interact with them over the phone and email. They won’t waste your time.

3. You can get competing quotes from multiple dealers without going from dealership to dealership. (time & money saver!)

4. Many internet sales departments focus on volume. This means aggressive pricing. Since the Internet Department contributes to incremental sales (additional sales they probably would not normally get) they may have more flexibility versus other salespeople working the dealership floor.

5. Some of the largest volume dealers in the country sell most of their cars over the internet. Don’t believe me? Check out Dave Smith Motors. This is the largest Dodge dealership in the world…oh yeah, and it’s located in rural Idaho. Want another example? Check out Fitzgerald Auto Mall. Compare their prices on any make/model in stock. These guys understand what it means to be a volume dealer. Other dealers can’t even touch their prices. Amazing!

So if you haven’t figured it out yet - dealers “buy” most of their leads. Many of the manufacturers (OEMs) send dealers leads generated through their websites (GM.com, Ford.com, Jeep.com, etc.) at no charge. But there are a number of 3rd party lead generators that sell their leads to dealers and the manufacturers. Dealers are “paying” for the opportunity to sell you a car. Those “free new car quotes” are not free to the dealers. So it’s in a car dealer’s best interest to call/email/engage the leads they are buying. The best dealers are very good at this. They sell more cars - you get a good deal, both parties are happy. This is the “nirvana” that all consumers should experience when buying a new car. So get your free car quote today!

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