CarSoup.com is pleased to recognize Clements Chevrolet Cadillac Subaru in Rochester, MN, and White Bear Acura Subaru in White Bear Lake, MN, as CarSoup.com’s Souper Dealers of the Month.
Clements Chevrolet Cadillac Subaru
Clements Chevrolet Cadillac Subaru continues to lead the Rochester market in the digital space. Through the change to the Clear Value Pricing model and a dedication to getting the message out loud and clear to the automotive shoppers, the dealership has not only grown but has also created more happy customers. Congratulations to everyone at the Clements Chevrolet Cadillac Subaru store.
White Bear Acura Subaru
Through forward-thinking management that not only understands the digital world but also takes an invested interest in it, White Bear Acura Subaru fully engages with CarSoup.com and utilizes all of the tools to increase sales. To Sam Shouman, Subaru Sales Manager, Karl Gunderson, Business Manager and the Subaru entire team, CarSoup.com congratulates you.
Consumers have access to an unprecedented amount of information these days and it can be a challenge to keep your sales team up to speed and equipped to respond to the questions they face every day. A good case in point: used car prices. Consumers are learning that average used-car prices are hitting record highs. They're also hearing that used car inventories are increasing. "But, wait", they say, "if the supply of used vehicles is bigger why are prices going up instead of down?" If your sales team has the right approach to this conundrum, your dealership can profit despite the seeming contradiction.
With used car supplies increasing and average prices going up, some consumers might be confused about this apparent violation of the basic law of supply and demand. To help them understand the current dynamic it's good to remind them that we're all still feeling the effects of the 2009 Great Recession.
The short story goes like this: New-car sales in 2009 topped out at 10.4 million units. Analysts said it was the lowest point for U.S. auto sales per capita since World War II, nearly 3 million units below 2008, and 2008 was almost 3 million units lower than 2007. That huge deficit in new car sales resulted in a corresponding drop in used inventory. As new-car sales have increased, there’s been a gradual increase in the supply of used cars. However, the recent and more significant jump in used inventory contains a disproportionately large number of 3-year-old vehicles coming off of new-car leases. So, while the overall supply has increased, much of that jump has been concentrated in the newer and pricier used cars – those 3-year-old, off-lease cars.
Many of these "nearly new" units end up being retailed as Certified Pre-Owned cars. Most consumers understand the extra costs and benefits associated with CPO programs, but other factors that affect used prices, like the one described above, can be a little more complex and it's always helpful to be able to explain some of the other market dynamics at play. Your customers will appreciate it.
In a recent consumer study, CarSoup.com third-party research found that 7% of customers who bought new actually would have preferred to purchase used. Talk to your CarSoup.com representative about more effective ways to locate used vehicle buyers. Try a used car special event, targeted ad banners, retargeting and other great CarSoup.com tools designed to help you build your brand, increase traffic and drive sales.
We recently surveyed hundreds of CarSoup.com consumers who bought new vehicles to find out more about their experiences. We asked them to rate the importance of a number of key influencers regarding the vehicles they chose and why they chose them. What we learned might interest you.
We asked shoppers to identify and rank, in order of importance, the main reasons they purchased a specific new vehicle. Over 40% of buyers surveyed listed "ready for a change" as a top consideration. Shoppers are still vitally interested in practical concerns like features, performance and price but we were a bit surprised that so many people were motivated by more subjective influences. Could it be in this age of practicality there are still people who buy simply because the time seems right and and dang it, it feels great to have a new car?
Plenty of new car buyers we surveyed truly relished the buying experience. And what's not to love? That factory-fresh new car smell and feel, the peace of mind and security that comes with a brand new vehicle, the latest in tech and safety features, the sense of pride and prestige. It's exciting. 42% of women who weighed in said they bought their vehicle because they "fell in love" with it. The love connection was more important than nearly all other considerations, second only to price. Turns out "ready for a change" buyers aren't just ready for a change, they're ready for a new experience.
The data suggests that 'ready for a change' new car buyers are still very much into the experience of buying a new vehicle and they often view "needs" (practical considerations) and "wants" (emotional considerations) as equal ingredients in the decision making process. Sometimes the line between the two gets a little blurred. Do people need sunroofs? Perhaps not but sometimes you need to feel the sun on your face and the wind in your hair and having a sunroof sure helps.
Bottom line: the facts, stats and features are all very important but the experience still matters to most new car buyers and for some the experience is what it's all about.
Talk to your CarSoup.com representative about ways to connect with buyers when they're ready for a change.
We're excited to announce CarSoup.com's partnership with the Minnesota Vikings for the 2015 season. Our alignment with the Vikes will put CarSoup.com in front of millions of loyal fans who also just happen to land squarely in our key demographic. We plan to focus attention on several unique and exclusive CarSoup.com features like "Must Go Specials", "Recent Price Drops" and "Better Than Book Offers". For CarSoup.com dealers this is a great chance put on the purple and get in the game. Why? Read on...
We'll be working closely with KFAN's Paul Allen, aka P.A., the "Voice of the Vikings" for well over a decade. Fans know and love P.A.'s game calling style and his passion for the Vikings and he'll be bringing the same level of excitement to our partnership. We'll be giving away prizes throughout the season, including a grand prize worth 5 grand, which should keep things jumping. You'll hear P.A. talk about CarSoup.com during his top-rated radio show and we're running spots before and during games.
Throughout the promotion we'll be targeting specific CarSoup.com features and tools that are unique and exclusive to our site ("Must Go Specials", "Recent Price Drops", "Better Than Book Offers") and as a result we're expecting to see more activity in those areas. It's a great opportunity to place your inventory accordingly and take advantage of some excellent advertising packages.
Contact your CarSoup.com representative for more details and Skol Vikings!
For five consecutive months in 2015, more than one-third of all the new vehicles sold in the US were SUVs and crossovers. Utility vehicles have earned a big enough share of the market to gain 50,000 extra unit sales year-over-year. And, that's in a market where passenger car sales dipped by nearly 30,000 units. It's pretty obvious that CUVs are a hot commodity, the big questions; why and will it last? (read more)
Top reasons consumers are infatuated with crossovers include:
Bigger Selection & New Designs - with most manufacturers now fully invested in the category, buyers have a dazzling array of choices. Standard bearers like Ford, Honda and Jeep are riding the cutting-edge of style, form and function and have been joined by makers like Hyundai, Kia, Mazda and others to give consumers an ever-broadening selection of crossovers to choose from.
Fuel Economy - With the introduction of smaller, turbocharged gas engines, better aerodynamics, high-gear-count transmissions and other technical improvements, crossovers are getting better fuel economy than ever. Lower fuel prices have eased some consumer concerns while fuel efficient crossovers provide an additional measure of confidence and a hedge against rising fuel prices in the future.
Safety - Crossovers tend to do well in crash tests – especially compared to smaller sedans and compacts. Drivers like the higher vantage point and additional ground clearance afforded by crossovers. Not many sedans offer all-wheel drive but practically every crossover out there offers this feature and in many regions of the country – especially the snow belt – traction is king.
Versatility - It's hard to beat crossovers for hauling people and gear, towing, off-road capability and navigating difficult conditions. People may not always take full advantage of these features but they love having them available.
The buyers are out there. Are you getting your share? Check out CarSoup.com ready-to-go Dealer Campaigns – creative assets included. Contact firstname.lastname@example.org for more info.
There's a growing trend among millennials to opt for leasing a vehicle. 2015 car registration data from Polk shows that leasing accounts for 28.9% of all new-car purchases by buyers in the 18-34 age range. The average lease penetration for all buyers is 26.7%.
The data also suggests this isn't a fluke. Leasing among buyers in the 18-34 range has increased 46% over the last 5 years compared to a 41% increase among all other demographics. Research shows it may have something to do with the number "3".
So, what's driving the uptick in leasing among millennials?
Millennials are usually on tight budgets. But, they're also interested in making the most of it and they're discovering that leasing can be a good way to get the vehicles, features and options they want. “Most Millennials understand and accept that they’re on a tight budget and that they need to stick to it,” said Jessica Caldwell, director of industry analysis for Edmunds. “But it doesn’t mean that their financial constraints limit them only to the most basic vehicles to get from point A to point B.”
Of course, there are limits and for millennials the key seems to be keeping the numbers under the "3's". A recent survey found the majority of millennials were unwilling to put more than $2,999 down on a vehicle and wouldn't pay more than $299 per month. With those parameters in mind, most finance purchases would be limited to a vehicle priced under $20,000. Applying the same numbers to a lease, millennial shoppers could consider vehicles in the $30k - $35k range.
“If they see a chance to get into a nicer car while staying within their budget, they’re likely to explore that opportunity,” said Caldwell. “In most cases, leasing opens the door to the bells and whistles that they couldn’t otherwise afford.”
Millennials in the Midwest are leading the leasing trend with Minneapolis-St. Paul, Milwaukee and Grand Rapids-Kalamazoo as the top 3 leasing markets.
The top brands for millennials include Ram, GMC, Lexus, Jaguar and Cadillac - nameplates millennials are 20% to 30% more likely to lease than the general population.
Don't assume your millennial buyers aren't interested in leasing. Those bells and whistles have a powerful pull. Contact email@example.com or ask your CarSoup.com representative how you can better identify and target these buyers.
While long term consumer confidence remains strong, short term confidence took a slight dip in July, possibly due to concerns over volatility in financial markets prompted by the situation in Greece and China. However, stronger than expected sales, higher transaction prices, moderate fuel prices and a strengthening economy are all factors in NADA's decision to revise their 2015 sales forecast UP...but how much?
How does 17.17 million sound? That’s right. 17.17 million up.
Sales have been dramatically boosted by increased consumer demand for light trucks, especially Crossovers and SUVs. Excellent response to incentives and very strong Memorial Day sales all contribute to NADA's revised forecast.
According to Lynn Franco, Director of Economic Indicators at The Conference Board: "Consumer confidence remains at levels associated with an expanding economy and a relatively confident consumer."
CarSoup.com provides you the opportunity to promote your incentives by body type – including Crossovers & SUVs. Contact firstname.lastname@example.org to learn more.
Check out the NADA article here.
Our congratulations go out to Waconia Ford and Swant Graber Auto Group for being chosen as CarSoup.com's Dealers Of The Month for July.
Barron, Wisc.-based Swant Graber is a franchised dealer for Chevrolet, Dodge,
Ford and Ram was recognized for embracing the digital advertising world and showing that a small town dealership cannot only play but win battles using all forms of digital.
Waconia Ford was recognized for embracing new ideas and products to increase exposure and for its overall work in digital marketing. Waconia Ford is a franchised Ford dealer serving Waconia and the surrounding Twin Cities area.
Your dealer rating on our site, which we compile from a variety of sources such as Google and the Better Business Bureau, is important to car shoppers. Especially considering the results of a recent study of "constantly connected” Americans. It reports that they actively seek out independent review sites and look closely at items such as dealer ratings (illustrated by number of starts) before making a purchase.
These "constantly connected" shoppers not only use the Internet to stay connected to work, family and friends, but 69 percent seek out advice and opinions from family and friends on goods and services before purchasing. Additionally, the study reports that, of those who seek out advice, shoppers are equally likely to visit independent review sites before making a purchase—70 percent.
This finding is important for dealerships to consider when you’re looking at where to spend ad dollars. These connected shoppers are actively seeking out independent, third-party websites like CarSoup.com. We provide vehicle reviews, previews, an online Buyer’s Guide and other consumer-related information that these shoppers read. Advertising with us means you’ll reach these connected consumers. We also now have a new solution called Snap21—get your reviews from all of your happy customers with just 21 seconds of your delivery process. Contact your account manager for more information about partnering with CarSoup.com for your digital marketing needs, by sending us an e-mail.
Jalopnik.com reported recently, “Remember how the auto industry was going to go away because Millenials just don’t love cars the way they love a good video game or phone?” Well, that prediction was wrong, or, as Jalopnik.com writes, “Yeah, that’s a bunch of crapola.” In fact, Bloomberg reports that Millenials were actually the second largest group of car buyers in the U.S. last year.
That second-largest group makes up 27 percent of car buyers, right after Boomers. “Now it’s the Gen Xers who hate cars, apparently,” Jalopnik.com muses.
Of course this does go back to the core of why Millenials weren’t buying cars: Money. Specifically, the lack of it. However, Millenials are now getting jobs, they’re making money and they’re moving out to the suburbs where they’ll need cars to get around.
They also spend a lot of time shopping and browsing online. For example, a study by the Urban Land Institute of 18- to 35-year old Internet users in the U.S. found that 45 percent of respondents said they spent one hour or more per day checking out retail-oriented sites. The millennial demographic has grown up embracing the deep discounts and convenience offered by online shopping. A 2013 survey from ad agency DDB Worldwide of U.S. web users’ attitudes toward ecommerce found that both males and females ages 18 to 34 were more likely than their 35- to 64-year-old counterparts to engage in nearly every online shopping activity, with 40 percent of males and 33 percent of females in the younger age group reporting that ideally they would buy everything online. Plus, Forbes Magazine reports, there are a lot of Millenial-aged consumers: 80 million in the U.S. alone. Forbes also estimates that this demographic will be spending $200 billion annually by 2017. To learn more about these consumers, and how to better reach them, contact your CarSoup.com account executive. email@example.com.