Automotive

Growth From Knowledge Dealership Favor Research

Throwback — A few weeks ago, David Long and the All Things Used Cars folks talked about the impact of markups on loyalty. While no specific +/- impact was agreed on, they agreed on the importance of transparency, communication, and staying competitive in the local market.
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Growth From Knowledge Dealership Favor Research

A customer survey measuring the impact of paying above MSRP has on dealership favorability contains some interesting stats. The full report by Growth From Knowledge is worth a look. We wanted to provide some data-based bullet points for your informational skimming needs. 

  • 80% of car buyers in May and June paid at or above MSRP. A contrast to the long history of discounts.
  • 30-34% of buyers made concessions on model, features, dealer, or fees they had never heard of to acquire a rarified vehicle. 
  • 31% of buyers who paid above MSRP say they would actively tell others not to go to the dealership they used. (Versus 14% who paid at MSRP)
  • 27% of those who paid above MSRP had similar negative feelings toward the auto brand, saying they would never buy from the same brand again. (Versus 10% of those who paid MSRP)

While some data is not present, such as a case-by-case breakdown of the dealer's choices, it is hard for us to say anything definite about these findings. These customer letdowns can be opportunities or speed bumps for the next dealer they work with.

Throwback —  A few weeks ago, David Long and the All Things Used Cars folks talked about the impact of markups on loyalty. While no specific +/- impact was agreed on, they agreed on the importance of transparency, communication, and staying competitive in the local market.

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