In today’s tight auto market, a dealership’s reputation is pivotal for success. With consumers increasingly turning to reviews and social media to guide their purchasing decisions, maintaining a stellar reputation has never been more important. Let’s explore the impact of the car buying process on attracting and retaining customers.
A Good Reputation Helps You Make a Buyer’s Short List
When the average customer only visits 2 dealerships before making a purchase, they heavily rely on a dealership’s reputation in making their decision. A dealership that does not have a polished car buying experience runs the risk of not making it onto the buyer’s very short list.
Here are some important data points to consider:
- 84% of consumers say reviews are important in their choice of dealerships.
- And 93% of Gen Z use reviews to make purchasing decisions and are twice as likely to have their choice of dealership influenced by social media.
It is also much more difficult to improve a bad reputation than it is to maintain a good one. Keep in mind that one negative review from a dissatisfied customer can negate the effects of roughly 12 positive reviews.
The Impact of the Car Buying Process on a Dealer’s Reputation
If you haven’t already, take a look at the results from the KPA Dealership Trust Survey. The survey delves into the perception and reality of dealership advertising, sales, and financing, offering a fascinating insight into human psychology and its impact on your dealership’s bottom line.
Beyond Reputational Impacts, the Financial Ones are Hefty Too
The FTC has received over 100,000 complaints a year in the past 3 years regarding motor vehicle transactions, which prompted their push for the enactment of the CARS Rule.
While the CARS Rule’s enactment has been delayed, it hasn’t stopped the FTC or State Attorney Generals from taking action against dealers, often for huge sums. In fact, they often work together to root out unfair and abusive acts and practices. This is in addition to newly enacted rules for dealers regarding data privacy and safeguards.
Dealerships that don’t follow these laws and regulations can face heavy fines from the FTC at over $50,000 per violation, which is roughly equal to the cost of an average car on the lot.
What you can do to Strengthen Your Car Buying Process
By building a solid culture of trust and transparency, dealers can bridge the gap between perception and reality. We’ve got five best practices for you to focus on.
KPA’s 10-step process to Advertising, Sales, and Finance Compliance for Dealers
Mouse over the steps to learn more about each of the 10-steps to advertising, sales, and finance compliance best practices.
KPA’s Here to Help You Demonstrate Your Commitment to a Great Buying Experience
Improperly advertising, selling, and financing vehicles is an enormous risk to your business and reputation. KPA provides complete compliance solutions for Advertising, Sales, and Finance compliance as a whole as well as to support CARS Rule Compliance in particular.
Learn more about Advertising, Sales and Finance Solutions from KPA >>
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