Monday, August 31, 2009

Dealers promoting used car sales more heavily

Even with all that is taking place today to try and spur new car sales, many dealers are placing an increased emphasis on expanding their used car sales by overhauling and improving the selection of vehicles and guaranteeing their quality. By doing this, dealers hope to improve sales by changing the customers perception of secondhand cars. In doing so, dealers hope to see an increase in their profitability of selling them and as a result offset the down turn in sales of new cars.

In the past people have tended to shy away from buying used cars for fear that they might end up buying one that had been involved in an accident or undergone a major repair. With services such as Car Fax available to almost every dealer these, this has become decreasingly an issue. Customers now know that they can get all the details on a vehicle that will help them make an informed decision.

Dealers in areas such as Used Cars Cincinnati feel that by placing an added emphasis on expanding their inventories and providing a few extras that in the past would have cost the customer will bring back the excitement for those customers who still with all of the incentives and price reductions cannot afford the payments on new vehicles. Dealers are being forced to improve every aspect of service they provide which in many cases decides whether a dealer will survive or fail based on the level of customer service they provide after the sale. In fact, a lot of dealerships are offering services that cause them to be sought out by consumers both local and from distant areas. This says a lot about the way many car dealerships have improved their image and standing over the last several years.

In addition to the traditional marketing efforts available from the advertising firms, and with so many people now searching for vehicles on the Internet, many dealers are starting to used the services of Search Engine Marketing firms to help in optimizing web sites and as a result drive more traffic to their site. These methods are low cost and very effective giving each dealer a much greater ROI.

And even though the internet has improved the consumers ability to seek out some of the best deals, there is still something to be said for the face to face interaction with the dealer. Consumers can sometimes get a better feel for the trust that a dealer provides simply through the one on one interaction between the consumer and the dealer. But even with all the good things now going on for consumers in both new and used car sales, people still need to be wary of what they are seeing and do their homework before just blindly jumping in and assuming that all the promotion a dealer does is in fact providing you the right information.

Thursday, August 13, 2009

Where Have All The Used Cars Gone?

Now that the Cash For Clunkers (C4C) Program is in full swing, the next obvious concern is for the used car market. With thousands of old, but not completely used up, cars being brought in to be destroyed for the C4C effort, what happens to this segment of the used car market when C4C is over?

Many think that the inexpensive used car market ($1,000 - $5,000) cars will be at even more of a premium. This in effect drives up the prices for the customers that truly need a car and cannot afford to pay premium prices for lesser adequate transportation.

Dealerships are going to have to find a marketing strategy to get customers to continue to trade in their inexpensive cars despite not being able to give them up to $4,500 for these cars. Used Cars Cincinnati, one of the cities premiere used car websites, thinks that there will be less and less of these lower priced used cars available. With the lack of inventory, comes higher prices to the consumer.

Nobody knows for certain how this will play out, but inconsistency in the automotive marketplace is a pretty sure thing.