New Car Buyer Secrets Exposed To Help You To Adapt In 2019
- June 12, 2019
- Posted by: Josh Locke
- Category: Automotive Industry
A recent survey conducted by Carwow, focusing on the car buying public shows that certain assumed knowledge about automotive retailing might not be based on reality.
To gain a better understanding of how consumers make their new car buying decisions, extensive research and data were analysed and from it, Carwow head of manufacturer partnerships, Phil Davies came to these conclusions…
A Difference of Decades
The average age of the new car buyer is 55. Meanwhile, the average age of someone who is working in the dealership is 34. There will be a significant difference in attitudes, interests, and style. If possible assign your sales team to handle customers that are of a similar age, this may allow for a connection to be made much more easily.
“It’s important to recognise that most of us aren’t the average car buyer, and we need to keep that in mind when we’re thinking about what consumers want,” said Phil.
A Rise of Robot
There was a time when buying a car was a beautiful and memorable emotional decision. But research tells us the opposite is true for 60% of car buyers.
“A lot more people than we might have thought are entirely rational in the way they are processing information about the vehicle,” says Phil.
In fact, 43% of car buyers are not even interested in cars. They’re considered an A2B tool, nothing to take pride in or enjoy. Just a modern necessity that burns a hole in their pocket and takes up space on their drive.
“This is an important consideration when we think about the language that we use. Our automotive -heavy language doesn’t speak to a lot of consumers.”
A Change of Heart
Carwow found that users configured an average of five cars that included at least three brands. There’s not the same loyalty to a brand anymore. The competition is fierce, and with consumers caring less about the car and more about getting a great deal, this creates a huge window for conquest.
“Customers don’t think in the way we have traditionally believed they do. They don’t think ‘narrow basket’, of similar cars in similar price brackets. They will readily cross-shop. And any sense of being ripped off is a complete anathema to consumers. People want price confidence.”
Carwow also found that customers were more likely to pull out of a deal if they were buying from further away. While the internet can connect us all, buying from a dealer in Scotland when you live in Bristol is probably not going to work out as the best value deal once you factor in fuel and time spent travelling. It’s always best to stick to local dealers, and this way, if you ever have a problem where you need to return the car, it’s not any more inconvenient than it already is.
“People still want to buy from a local dealership. We see conversion rates drop steadily for every five miles further from the customer the dealer is,” Phil said.
A Way of Thinking
It’s easy to assume that because one deal has worked for one customer, that it will be just as effective to another. But customers have different motives and circumstances. The best thing you can do is be flexible and try to get to know the customer a little bit before preparing a deal. If you find out they have a dog, for example, you could include a heavy-duty boot liner and seat covers for example. Or if they have young kids, maybe you could tint the back windows or include TV screens. The perceived value of personal touches like this can often be higher than offering things like a free MOT and servicing, gap insurance and warranty.
A Plan of Action
- Recognise the difference between your team and your customers
- Put rational thinking before emotions
- Ditch the enthusiasts’ language
- Don’t assume your customer fits in a certain segment
- Target locally
- Personalise your deals to each customer’s needs