Historically speaking, buying a car has never been anyone’s favorite thing to do. For most people, the process of buying a car is uncomfortable and intimidating.
They have to come into the dealership, negotiate with an experienced salesperson, and share personal financial details with someone that they don’t really know.
Because of this, people almost always feel that they are at a disadvantage whenever they step foot into a dealership.
They feel that the car dealer is in the power seat.
However, there’s a new company out there called iPreCheck that has made it their mission to return the power to the consumer and make the car buying process less intimidating.
Although that may sound like bad news for car dealers, it’s actually going to help you increase your sales and make more money.
How the Traditional Car Dealership Process Works
For the consumer, there are a lot of problems in the traditional car dealership sales process.
Here’s how it usually works.
When they walk into the car lot, they’re greeted by a salesperson who makes their money by getting them to spend as much money as possible.
With that salesperson, they start discussing the cars that are in their budget. When they find a car that they like, the negotiation for that car starts at the sticker price on the car (usually a higher number than they’ll find with online retailers).
The consumer then has to go through the entire negotiation process by themselves. Since most people don’t normally find themselves in negotiation situations, this process can be very uncomfortable for them.
Unfortunately, consumers often feel that they get taken advantage of and make decisions in the moment that they may not have made had they had some time to think about it.
The deal then closes right there in the office.
Because of this process, people aren’t exactly fans of the traditional dealership experience.
In fact, Accenture surveyed 10,000 people in the United States and a group of other countries, and what they found was that around 75% of the respondents said that, “if given the opportunity, they would consider making their entire car-buying process online, including financing, price negotiation, back office paperwork and home delivery.”
That isn’t exactly a ringing endorsement for the traditional sales process.
What is iPreCheck?
iPreCheck took note of how the traditional sales process works in a dealership, and they set out to create a model that works better for both the customer and the retailer.
With iPreCheck, consumers use technology that helps them learn more about their credit score, terms, APR, and maximum amount financed without ever stepping inside of a dealership.
Consumers can also get a comparison of their current payment against their pre-qualification immediately.
It works in three steps:
Step #1: Get your free credit score. No SSN required. Get pre-qualified instantly.
Step #2: See featured vehicle offers based on your pre-qualification.
Step #3: Monitor your credit. See your credit score go up and your rate go down.
None of it ever costs the consumer a single penny. If they do decide to take one of their offers, iPreCheck gets paid by the partner dealer.
So, you make money on a sale without the time spent on negotiations, the consumer feels that they get a good price, and everyone wins.
Why iPreCheck Will Increase Sales for Car Dealerships
Although moving away from the traditional sales model may make you nervous at first glance, this new model will actually help you make more sales for several reasons.
The first reason is that a company like iPreCheck makes the car buying process more inviting to the consumer.
In the traditional method, the consumer has to drive to the dealership, look at the cars, and then talk financing – and the consumer is concerned that they are getting ripped on the financing. Many avoid it altogether. With iPreCheck, the financing can be entertained before hand.
Taking the customer away from the pain point of financing negotiation, will pull more consumers onto your lot.
Also, many consumers secure financing before going into the dealership, so they can avoid the whole financing talk. As customers avoid the dealer financing altogether, this results in less financing by the dealer entirely – which the dealer makes money on. By using iPreCheck dealerships can appeal to that audience that otherwise would’ve walked on to the lot with financing in hand.
By giving the power back to the consumer, it actually makes them more likely to buy because they feel like they have complete control over their decision. If people feel like they’re getting the best price at their own convenience, they’ll choose that option every time.
Instead of fearing that more convenient options like this will put you out of business, you should be looking into partnering with a system like iPreCheck to actually increase your sales.
Because people are showing an increased preference towards online buying processes, dealerships would be crazy not to be offering their customers an online experience in addition to their in-person experience.
iPreCheck gives control back to the consumer, and that benefits everyone.
It’s going to come to a point where consumers may feel inclined to avoid your dealership altogether if you don’t offer an option similar to iPreCheck.
You don’t want to be left in the dust.
Let me know what you think in the comments section below!