The trickle effect in new and used car sales

by · June 4, 2008

Arianne Walker in Online Automotive Review iterated:

Even though OEMs and dealers have been shifting their marketing budgets online, the data shows that most should probably be accelerating that transition, putting even more money where shoppers – new and used alike – are increasingly going.

These trends are consistent with the recent Cobalt-Polk-Yahoo! study on new vehicle buyer behavior in how it directly and indirectly influences used vehicle purchases.

When I think of car sales, I think of long-term retention. But immediate sales are important too. While you need to invest into new and used car advertising, a primary benefit with investing in new vehicle advertising is that the investment not only trickles down into used car sales, but it even influences used car sales. That is what the study suggests at least.

This is a key topic today for dealers and providers. Dealers today are cautious of where and how they shift their automotive marketing dollars. It is widely known that the Internet offers the greatest ROI; however, establishing your online brand recognition is not an event, it is an establishment that requires years of vision, commitment, and dedication from dealers and their providers.

Dealers must be prepared to take risks and to embrace long-term change in order to meet auto shoppers in advance, but it can be done with the right tools and techniques.