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Over the past year, we have worked with several of our dealerships to support their request to display monthly pricing on their website for vehicles instead of the traditional full price of the vehicle. This has turned out to be a real differentiator for our dealerships, and we’ve now been able to take that online pricing model a step further, to listings on AutoTrader and Cars.com.
Stop just for a minute and consider how people shop on AutoTrader. Their search is narrowed typically by make, model, and zip code, and by price (lowest to highest). If you use MONTHLY PRICING for your vehicle listings, your customers’ natural tendency to sort and filter puts you at the top of their search on AutoTrader. Your phone rings more often AND this pricing format allows you to have an entirely different conversation with the customer to truly differentiate you from other dealers. Consider that the reality is that most household budgets are framed around monthly payments, such as cell phones, cable TV, monthly utilities, house payments, rent, insurance, credit card payments and purchasing a vehicle.
To a buyer, the perceived difference in a vehicle that costs $23,000 vs., $20,000, vs. $17,000 sounds large and overwhelming. But consider the difference when framed in a different light. Assume 8% financing over 4 years (48 months), look at the monthly payment for these vehicles:
$17,000 $415 per month
$20,000 $488 per month
$23,000 $561 per month
Now, all of the sudden, the difference between a $17,000 vehicle and $23,000 vehicle doesn’t seem as large. In addition, when speaking with the customer, your discussion can focus on other areas the consumer might save money – better gas mileage, better insurance rates, or less depreciation, depending on the specific vehicle. When these monthly savings are calculated into their vehicle monthly pricing, the perceived differences between a $17,000 and $23,000 vehicle can go away entirely.
Our customers describe AutoXloo as flexible, responsive and innovative. With the dramatic changes in our industry in 2009, we think these qualities are crucial for success, both for us and our customers.
Tags: AutoTrader monthly pricing dealership website monthly pricing |
