FORT LAUDERDALE, Fla. -
Better than nine out of 10 dealers said their market share climbed in 2010, according to a recent survey from AutoUSA.
Interestingly enough, only a little more than 28 percent of dealers surveyed said the used-vehicle sales department was the strongest part of their business, while more than two-fifths (41.8 percent) said the new-car sales department was the most robust area. 
Meanwhile, 28.4 said service was the strongest part of their store.
Delving into more specifics, the survey — which was conducted in November — said that 94.2 percent of dealers surveyed saw market-share gains in 2010. New-vehicle margins increased for more than 70 percent of respondents.
When asked why they believed their market share climbed in 2010, 69 percent of dealers listed better customer service as the top reason.
Dealers said having a friendly process helped them bolster market share (65 percent). More than half (52 percent) indicated that having the best reputation drove up market share.
Other reasons cited by dealers include having a quick process, which was noted by 45 percent of dealers, as well as offering the lowest price (29 percent). Meanwhile, 28 percent of dealers pointed to having the best selection as a factor.
“Although 2010 has been a challenging year for auto sales, it appears the economy has inspired dealers to provide customers with better all around service, which has proven to be more effective for closing new business than just price alone,” stated AutoUSA president Phil DuPree.
“In addition, the survey indicates that dealers spent the majority of their ad budgets on Internet marketing strategies in order to draw more customers into their stores,” he added.
In fact, an overwhelming majority (94.2 percent) of dealers said they post new-vehicle inventory on the Web. Furthermore, more than half (54.7 percent) said they intend to buy more third-party leads this year.
Also, more than 85 percent of dealers said they managed their online reputation by responding to consumer-posted opinions.
According to the survey, close to two-thirds (62.3 percent) said their reputation is “well-managed” while 23.2 percent claimed the opposite, indicating that they only periodically respond to comments.