Cardone Automotive Resources has hired Jeff Bounds as head of automotive, noting that Bounds will continue the company’s focus on operational consulting, lead generation tech, people development and digital services.
Bounds will build on company leader Grant Cardone’s work in offering dealership sales and service tools.
Bounds said his goal for the partnership is for its automotive partners “to win big with the solutions we provide.”
His 25 years of experience includes work in auto industry sales, marketing, and training. That work includes senior leadership positions for companies such as Dominion Dealer Solutions, InteractiveTel Inc., and CallRevu.
From the ground up, he has built various e-commerce divisions and marketing plans. That work includes a nationwide sales and training partnership with Nissan North America.
Grant Cardone described Bounds as “a true pro.”
“I am looking forward to seeing him contribute to delivering our Cardone best-in-class automotive solutions to our loyal clients,” Cardone said in a news release. “He has an impressive track record of generating multimillion-dollar sales growth and expanding revenue streams while providing five-star customer service.”
Bounds said, “I’m excited to lead Cardone Automotive Resources because of the strength of the Grant Cardone brand and his powerful automotive sales insight and experience.”
He continued, “We are more committed than ever to impact our clients’ businesses in an age when many dealerships are struggling to keep pace with rapidly changing technologies and thus the rapidly changing customer.”
Walser Automotive Group says its Burnsville location is a top-volume dealer in the Twin Cities market.
And this week, Walser finalized the shift of some of its used-vehicle resources into turning new models.
On Tuesday, the group announced the opening of its second Subaru dealership in the Minneapolis-St. Paul Metro.
Walser says the new dealership is the first Subaru dealership for the St. Paul market.
The nearly 50,000-square foot facility is located at 740 S. Concord St., South St. Paul and features 26 service bays.
The location, which will initially employ 42 people, is also Walser Automotive Group’s second Subaru location.
Throughout Minnesota and Kansas, Walser operates 25 dealerships featuring major and luxury brands.
Walser Subaru St. Paul general manager Jeff Holmquist said the fact that the Burnsville location is a top-volume dealer for the Twin Cities market was a factor in the opening of the second location.
The new location, which sits on a 10-acre site, was the former site of Walser’s reconditioning center for its used-car operations.
“Subaru is ready to grow their market in St. Paul, but more importantly they know how [Walser] takes care of its customers and how it engages in the community,” Holmquist said in a news release. That community involvement includes Walser’s work with hometown charities such as Rein in Sarcoma and Make-a-Wish Minnesota.
Holmquist said his company was excited to sell and service vehicles for South St. Paul while also getting involved with the community.
“This is a good partnership between Walser and Subaru’s culture,” he said.
Part of that culture includes dog-loving customers, and the new location includes an outdoor dog park, which will be completed in the coming weeks. The company also described the interior of the store as dog-friendly.
Walser also commits 5% of all pre-tax earnings to the Walser Foundation each year. Those funds help support local nonprofit education and workforce development initiatives.
An “anniversary fun fact” for JM Lexus: The business originally opened with 50 associates. Now the company employs 346. Five associates have been employed for more than 25 years.
That is one of several “fun facts” that JM Lexus produced in celebration of its 30-year anniversary in South Florida.
It all started for the business in 1989. That was the year that JM Family Enterprises broke ground on JM Lexus, and the company says it was one of the first dealerships to sell “the then-unknown luxury brand Lexus.”
JM Lexus said that 2017 marked its 25th consecutive year as the No. 1 volume Lexus dealer in the nation.
JM Lexus also became the first Lexus Plus dealership in the southeastern United States. The company describes Lexus Plus as a simplified sales process that “reflects true luxury” and offers customers “a stress-free experience with the best upfront pricing and a single point of contact.”
Now, less than two years after the launch of Lexus Plus, JM Lexus says it is the largest-volume Lexus Plus dealer in the nation.
“For a long time, our goal was to be the No. 1 volume sales dealer, sometimes at any cost,” JM Lexus general manager Mark Hoppe said in a news release.
Hoppe continued, “After 30 years, we’ve realized that success comes in many forms and have made providing our customers an unparalleled Lexus Plus experience our top priority. In transforming the way we do business, we showed our customers and incredible associates that their time was more important than our sales record, and that decision has proven to be a successful one.”
JM Lexus recognized the milestone by celebrating what it described as 30 years of “achievements, innovation and pioneering.” In addition to a luncheon for employees, the company hosted a private reception for loyal customers.
The company also released additional anniversary fun facts. For example, JM Lexus has supported local causes and community events for years. Some of those include the Boca Raton Regional Hospital Golf Tournament, SOS Children’s Villages Florida, and Junior Achievement of South Florida.
Other fun facts:
— In its first year of business, JM Lexus sold 255 cars. Now, the dealership averages 450 new-vehicle sales per month.
— JM Lexus’ environment-benefitting activities include a 2017 installation of two rooftop solar arrays that it says produced more than 108,049kWh of clean renewable energy.
As advanced data techniques have made harvesting and management of vast amounts of personal data possible, some consumers get nervous about privacy issues related to personal data.
However, 68% of consumers in a recent survey don’t mind dealers using personalization technology if it improves the overall vehicle-buying experience. And that number jumps to 76% among ages 18 to 34.
In fact, the survey — Cox Automotive’s Technology and Transformation of Retail Study — indicated that just as consumers have some contradicting views in the area of personalization enabled by automation and artificial intelligence, or AI — such as nervousness about privacy but wanting the personalization — dealers also faced some challenges, according to the study.
Sixty-three percent of dealers say that to adapt to changing pressures they face, adoption of automation or AI is necessary. However, only about half of dealers know “a lot” about these technologies. That makes adoption more challenging, according to the study.
Many obstacles are slowing the adoption of automation and AI technology at U.S. dealerships, the study shows. Some of the top challenges dealerships mentioned were, “not worth the cost,” “staff resistant to change” and “wouldn’t fit in current process.”
But the study showed good news in the area of dealers’ views of AI technology. Seventy-two percent of dealers say that technology is a tool that can help improve efficiencies and can help staff focus on other areas of the dealership. But only 28% of dealers believe AI adoption will lead to reductions in staff. Just over half of surveyed dealers said adoption of automated processes can help them bring a better experience to customers and deliver improved retention and loyalty.
Personalization will be the biggest priority as the car buying and owning process transforms, according to the study, which described personalization as the ability for dealers to deliver an experience that feels unique for each consumer.
A personalized experience at the dealership is important to 74% of those surveyed. Younger people especially like that personalization, with 87% of people ages 18-24 and 81% of people ages 25-34 saying a personalized dealership experience is important.
Most respondents believe human interaction is a “necessary and irreplaceable part” of the vehicle buying and owning experience, according to Cox Automotive. Sixty-two percent of respondents, for example, want to review and sign the final documents and contracts face to face with a dealership representative.
“In other words, a 100% online buying experience is still not the preference of the majority,” Cox Automotive said.
Consumers also want to stay in touch after the purchase, according to the study. After a vehicle purchase, more than 80% of consumers want to see some communication from their dealership.
According to the study, AI technology can automate that process.
A service department should use automated and/or AI technology for an improved service process, said a majority of surveyed vehicle owners. Almost 90% of them say a dealer’s service department should know something about them when they contact the department for service.
What are some of the things they should know? Sixty-eight percent said vehicle make and model, 64% said vehicle year, 56% said service history of the vehicle, 47% said approximate vehicle mileage, 41% said the “features of my current vehicle,” and 30% expect the dealer to know the trade-in value of their current vehicle.
Personalization is worth the investment if done right, according to the study. Sixty-six percent of respondents said dealerships that implement personalization technology offer a more expedient customer service experience. Sixty-four percent said it resulted in a more efficient customer service experience, and 62% said it resulted in a more relevant customer service experience.
For typical new-car owners, they would like to receive information about special service promotions by e-mail every three to six months. They also would prefer receive advice on the best trade-in time for a vehicle and would welcome alerts on open recalls.
Senior vice president of Cox Automotive Dealer Software Solutions and general manager of CRM provider VinSolutions Lori Wittman said dealers should carefully manage customer interaction.
“This new study clearly underscores what we see with CRM usage every day: New-car owners do not want to be spammed or stalked by their dealership,” Wittman said in a news release. “Having the right data at the right time to be relevant instantly is paramount to successful personalization.”
Cox Automotive’s VinSolutions team conducted the survey from April 30 to May 23 and compiled results from responses from 532 franchised dealerships and 2,032 recent automotive consumers.
Letgo says its footprint in the used-vehicle market has seen strong growth since it launched in 2015, stating that its users have listed 25 million cars for sale. That is mostly in the United States.
Now, the company has announced new partnerships that it says will further simplify the process of buying and selling cars.
The company has added 12 auto inventory, marketing, and live chat partners to its letgo PRO platform, which the company says will allow U.S. car dealers to automatically list and manage their inventory on letgo “through tools they already use every day.” The partnerships will also help drive direct sales, letgo said.
Among those are are V12, AutoSweet, TapClassifieds, DealerCenter, Dealer Car Search, Goxee Dealer Software, KGI Dealer Solutions, Motorcar Marketing, Auction123, Wayne Reaves Software and HomeNet. Letgo also announced another partnership, with live chat platform Gubagoo. That partnership, according to letgo, will make 24/7 real-time chat simpler for dealers and shoppers.
“These partnerships help us ensure letgo’s filled with the best and biggest possible selection of used vehicles so the millions of people who use our app can find exactly what they’re looking for and auto dealers can effortlessly connect with a new generation of buyers,” letgo vice president of sales Andrew Knobloch said in a news release.
letgo also provided more of its market statistics, stating that its users have listed up to 1.1 million vehicles monthly. Buyers and sellers send up to 42 million messages to each other each month about cars for sale, and the company reports that about two-thirds of car listings receive interest from at least one buyer in the first 24 hours.
Carvana has been offering its The New Way to Buy a Car service in Oklahoma for about two years.
Now, that service includes a car vending machine, which is located in Oklahoma City.
It’s Carvana’s 22nd car vending machine, and its first in Oklahoma.
The all-glass tower that holds 27 vehicles and stands eight stories high serves customers who choose to purchase a vehicle on Carvana.com and pick it up from the car vending machine. When the customer arrives, a Carvana customer advocate greets those who choose that option, and then the customer receives a commemorative, oversized coin to activate the vending process.
Carvana says that pickup process lasts only minutes compared to hours at the dealership.
The Oklahoma City Car Vending Machine is located at 1800 West Memorial Road.
The vending machine is open Monday through Saturday from 9 a.m. to 7 p.m. (CT). For all Carvana customers, vehicle pickup at any of the machines is free.
“We’re looking forward to adding our car vending machine to the Oklahoma City skyline while making car buying fun again,” Carvana founder and chief executive officer Ernie Garcia said in a news release.
One hundred percent of car buyers have to make an insurance decision.
That’s how DealerPolicy president of dealer solutions Mike Burgiss wanted to start the discussion in an interview with Auto Remarketing. During the conversation, Burgiss talked about a new DealerPolicy study on insurance and the car dealership.
DealerPolicy’s “2019 Car Buyer Study: The Role of Insurance in the Modern Dealership” shows that 83% of car buyers would prefer to handle everything related to their car purchase while at the dealership, including insurance.
“It’s an overwhelming number,” Burgiss said in the Auto Remarketing interview.
Another overwhelming number according to the survey: Four out of five respondents would use the cost savings from buying insurance at the dealership to invest in a nicer vehicle or more F&I products.
In a news release accompanying the study, Burgiss said dealers have traditionally seen insurance as a problem.
“But insurance is now a new income opportunity for dealers,” Burgiss said.
Expanding on that in the Auto Remarketing interview, Burgiss said customers “have to put that new car on their insurance somehow.”
The customer is “already required to make an insurance decision,” he said. “And they’re required to do that right before they get to the dealership, while they are at the dealership, or right when they get home,” he said.
Burgiss also pointed to a separate study from Driving Today showing that 80% of customers are paying too much for their car insurance.
“So when you take a situation where 100% of people have to make a decision, and they’re already going to make a change, and they’re paying too much, then what you want to do is help them make a good decision at that time,” Burgiss said.
Many want insurance help at the dealership; few are getting it
Expanding on the DealerPolicy study statistic showing that 83% of customers want to finish everything at the dealership, including insurance, Burgiss said very few people are getting help from their dealer in that area.
He wanted to be clear that the DealerPolicy study, which is based on a survey of 1,000 consumers who purchased a car within the past six months, is not talking about dealers selling insurance. Dealers who are not licensed agents are not allowed to sell insurance, he said. Help from the dealer, in this case, would mean the dealer introducing the customer to a licensed agent, he said.
DealerPolicy said that two industry trends “set the stage for the study.” One of those is that dealers are seeing a steady decline in new car sale profit margins. The role of insurance is the second trend.
“Today’s dealers can add enormous value to the car-buying experience by providing customers transparency and choice for their insurance needs when and where they want it,” DealerPolicy wrote in the study.
Additional key findings of the study: Seventy-nine percent of buyers indicated they would like to see competing insurance quotes while at the dealership. And 59% of buyers simply update their existing policy rather than research new carriers or search for more competitive pricing.
Lessons and takeaways
The study included quotes from anonymous buyers about purchasing insurance from a dealership.
“This would help me get my insurance set up quickly and save money all while buying my car,” one buyer said. “It’s a great idea.”
“It would enable me to go ahead and purchase insurance for the vehicle before leaving the lot,” said another.
The study concluded with “lessons and takeaways,” with one stating that “the overwhelming majority of buyers want to consolidate the insurance and car-buying process into a single experience.”
And buyers said they like to spend their insurance savings at the dealership.
“When customers are able to save money on their insurance before they leave the showroom, they have more budget to spend on their new car,” the study states. “Study participants stated overwhelmingly that they would take these savings and spend them at the dealership on a nicer car, warranties, or other F&I products.”
Burgiss said DealerPolicy conducted the study because insurance is a new part of the retail experience at the dealership that he said has not been the subject of much research in the past.
“We know from our experience that consumers really do engage in the process very readily,” he said. “They’re ready for insurance, and we know that educating dealers and their teams on the willingness of car buyers to engage in the retail process with insurance, it helps them see insurance as an opportunity instead of seeing insurance as another problem they have to solve. When I say insurance as an opportunity, it’s an income opportunity.”
Burgiss again emphasized the importance of the portion of the study showing that four out of five survey respondents would use the cost savings on insurance to invest in a nicer vehicle or more F&I products.
“The evidence is just overwhelming that you should put insurance in your retail process,” he said.
E-commerce platform Carvana has a strong presence in Florida. That presence became even stronger on Tuesday.
Carvana has launched as-soon-as-next-day delivery to Deltona, Gainesville, Ocala, Palm Bay and Port St. Lucie area residents.
The launch in those new locations means Carvana now offers that service in 12 Florida markets, and its total number of U.S. markets is now 146.
“Florida residents continue to show us how much they enjoy The New Way to Buy a Car,” Carvana founder and chief executive officer Ernie Garcia said in a news release. “We are looking forward to further expanding our easy, transparent car buying experience with as-soon-as-next-day vehicle delivery to Deltona, Gainesville, Ocala, Palm Bay and Port St. Lucie residents.”
Joe Chura is a former dealership general manager who says he knows the importance of a website that makes a strong first impression for customers, “but is lightning fast, user friendly and built to convert.”
Chura is chief executive officer and co-founder of Dealer Inspire, a Cars.com company that describes itself as providing disruptive technology and digital marketing solutions to the automotive industry.
The company announced last week that General Motors has selected it as a website provider for GM’s more than 4,000 U.S.-based Chevrolet, Buick, GMC, and Cadillac dealerships.
“We believe we can help GM dealers across the country better compete with a fully connected and customizable website platform that is built for the innovative dealer and mobile-first consumer in mind,” Chura said in a news release.
Dealer Inspire said its advanced website platform, which it said is the core of its “connected ecosystem of solutions” that make improve automotive retail from search to signature, is a six-time AWA Pinnacle Platform Winner.
DI websites are built on a customizable platform and designed with user behavior data, Dealer Inspire said. The company added that the sites’ advanced technologies drive modern consumers toward purchase decisions.
Website customization is one highlight of the platform. Dealer Inspire says its platform is built for strong dealer customization. The company said that with no coding or complicated tools required, its page-building tools allow dealership teams to update and create professional quality web pages.
Another highlight is website personalization. The company said the shopper personalization powers the DI website experience. To drive leads, that personalization adapts messaging, creative, and offers to individual users’ shopping intent, history, and current geo-location.
Other highlights:
— Lightning inventory: The company says the vehicle search is instant across all devices. With each letter typed or word spoken through voice search, the vehicle search displays more relevant results in milliseconds, according to the company, Shoppers can also instantly search by factors such as their desired payment and features to quickly make buying decisions online.
— Proprietary reporting: Dealer Inspire says its platform debuted in 2012, providing dealers with transparent ROI on their website and marketing performance. The company said advanced reporting continues to enhance the dealer software. That includes Roxanne event-based attribution and customer models. It also includes the new PRIZM dashboard that features proactive data alerts.
Dealer Inspire said that it supports a strong dealer-to-employee ratio that ensures strong service. The company sourced its Dealer Inspire Dealer surveys, based on 2,800 dealer respondents, in stating that it achieved an average dealer satisfaction score of 9.5 out of 10 in 2019. A team of performance managers use marketing strategy, execution, and transparent reporting in partnering with dealers to continually increase results.
With that combination of technology, on-call support, and OEM integration, Dealer Inspire said GM dealers have a powerful advantage in sync’ing national creative, inventory, pricing, and incentives for effective go-to-market campaigns.
Winner of the 2019 AWA Pinnacle Awards for Websites, Website Merchandising, and Digital Retailing, Dealer Inspire also received a Top Rated Award in the DrivingSales Dealer Satisfaction Awards, with top dealer satisfaction rankings in the Digital Retailing and Websites categories.
“We first became a GM managed digital advertising vendor in October 2018, and our team is excited to now expand our offerings and deepen our relationships with GM dealerships,” Chura said.
For more on Dealer Inspire's work and this partnership, see the episode of the Auto Remarketing Podcast with Chura below.
Although extensive damage to Group 1 Automotive inventory and some of its facilities has occurred in the aftermath of Tropical Storm Imelda, the auto retailer said on Monday that preliminary assessments show all facilities are intact, and operations are open.
Some of those facilities, however, are operating with limited services, Group 1 said. Estimated total financial damages associated with the storm are at approximately $12.5 million to $15 million, which includes insurance deductibles for damaged inventory and facilities, and disaster pay for employees.
Although Group 1's Houston stores reopened on Friday, operations are open on a more limited basis in Beaumont, which Group 1 said saw significant flooding impact.
Group 1 president and chief executive officer Earl J. Hesterberg said supporting employees in the Imelda-affected areas are the company’s top priority.
“We already know that a significant number of our 300 employees in Beaumont have sustained major personal losses, and our hearts go out to all of those affected by this devastating storm,” Hesterberg said in a news release. “Beyond helping our employees, we are also moving quickly to get our stores fully online to support the community’s needs for replacement vehicles, which includes working with our OEM partners and other Group 1 dealerships to redeploy inventory to restock our operations in Beaumont.”
