Dealership personnel is likely doing a lot of driving nowadays. Picking up and returning vehicles from appointments in the service drive. Or delivering vehicles to potential buyers for test drives and possible purchase.
All of these activities stem from the coronavirus pandemic and stores trying to cater to customers wary of going to the dealership.
Doppler recently launched a dealership workforce service to help stores that might be stretched thin because of these actions with parameters in place aimed at quelling manager apprehension, including:
— A national network of thoroughly vetted, fully trained staff
— All staff fully covered for workers compensation and benefits
— Doppler assumes all liability, including full Centers for Disease Control compliance
— Customizable services and pricing to accommodate individual market and dealer needs
— Doppler’s full-stack technology solution from customer reservations to dispatch and logistics making it totally turnkey
“The industry is rapidly rebuilding with new services. Dealers have an urgent need for professionally staffed, low-cost solutions like Doppler that can deliver a better customer experience,” said auto industry executive, retailer and AVC Capital Group board member James Press.
When done well, Doppler said these services can help deliver increased fixed operations business from higher repair grosses to better service retention as well as higher sales grosses and an overall superior customer experience.
Doppler managing director Dean Braunstein said the company can provide an “unparalleled solution” because of its previous experience of bringing these service to automakers.
In a news release, Braunstein added, “Doppler for OEMs has been an enormous success. We have used all the experience gained to adapt the platform and staffing specifically for the unique requirements of dealers and their customers.”
For more details, go to www.dopplerdrives.com.
Dealerships specialize in highlighting a vehicle’s features and performance. Store personnel can show off many great components of late-model vehicles — features such as blind-spot monitoring, turbocharged engines for improved fuel economy and power as well as touchscreens that connect to music and other entertainment options.
The COVID-19 pandemic also is creating vehicle value that’s much less tangible to measure than horsepower or even residuals, but it’s also value that might keep dealerships active well beyond when the current upending of daily life subsides.
Vehicle subscription provider Fair recently released results of a new online consumer survey conducted by Researchscape revealing surprising Americans’ viewpoints on transportation preferences and habits during the COVID-19 pandemic.
The data showed that while 10% of Americans don’t feel safe in any mode of transportation right now, 80% feel safe while in vehicles. In addition, nearly three in four Americans surveyed reported using their vehicle as a mental health escape while in quarantine.
With travel restrictions lifting in some locations but social distancing still recommended, AAA recently noted that it’s no surprise that 97% of summer travels are road trips. That’s up from an average of 87% over the last five years, according to AAA.
“While COVID-19 has made public transportation a non-starter for most Americans, an overwhelming majority of us are looking to our personal vehicles to provide safety and peace of mind during essential travel — and even to serve as escapes from the stresses of this moment,” Fair co-founder and president Georg Bauer said in a news release.
“While we all look forward to whatever ‘normal’ will look like post-pandemic, it’s clear that our cars will remain a staple of our American life for a long time to come,” Bauer continued.
More evidence of intangible vehicle value
Fair’s survey wasn’t the only recent source highlighting what having their own vehicle perhaps purchased at dealership means to individuals nowadays.
According to Deloitte’s study titled “How the pandemic is changing the future of automotive,” U.S. consumers are rethinking their relationship with personal vehicles, digital transactions and transportation, including mobility services.
Deloitte said in a news release this week that the growing use of digital tools could be supportive of overall demand, but a growing affordability issue may cause consumers to stay out of the market longer than expected. At the very least, consumers may be recalibrating their expectations relative to which vehicle segment and/or option package they can afford.
The Deloitte study indicated:
— Lingering health concerns make the idea of owning a vehicle very attractive: 74% of U.S. consumers agreed that the idea of vehicle ownership is valuable to them. This trend is being seen globally, including France (79%), U.K. (69%) and South Korea (63%).
— Personal vehicles serve as a way to maintain physical health barriers: Over half of U.S. respondents plan to limit public travel, including rideshare services for the next three months. For those in the market for a new vehicle, used vehicles may give cash-strapped consumers an interesting option to consider.
— For those consumers that remain intent on acquiring a new vehicle, expectations may shift in terms of either downgrading to a more affordable vehicle segment, and/or reducing the number of features included on the vehicle.
— Financial concerns in the face of a potentially lengthy recession magnified: 37% of U.S. consumers are delaying large purchases, such as a new car, and 21% are worried about making upcoming payments.
— Job security anxiety still lingers: 30% of currently employed U.S. consumers are fearful they will lose their job; this number is even higher across the globe, including Chile (74%), India (71%) and Mexico (65%) which are even more worried about a potential loss of employment.
— Consumer pullback impacts their vehicle ownership: 47% of U.S. consumers are planning to keep their current vehicle longer than expected. This trend also can be seen in other large automotive markets around the globe including China (65%), Japan (48%) and Germany (40%).
Other ways Americans are seeking refuge in their cars
Along with helping people feel safer on their daily commutes and errand-running, Fair’s survey showed more Americans are turning to their vehicles to be a personal safe haven. The survey was conducted online within the United States by market-research consultancy Researchscape on behalf of Fair from May 7-8 with 1,046 adults ages 18 and older.
During the recent periods of sheltering at home, the results determined:
— 30% of surveyed Americans said they used their vehicle to take a mini-break by driving around their neighborhood.
— 24% reported taking a long drive to clear their head.
— 16% responded that they have sat in their car outside their house listening to music or audiobooks.
Furthermore, Cars.com released new research revealing that 42% of in-market car shoppers plan to visit a drive-in movie theater this summer. With in-home entertainment losing its luster as summer in full gear and social distancing guidelines still in place, Cars.com pointed out that Americans are looking for new — or old — ways to safely get out of the house.
And many have turned to their vehicles for a quick escape and safe entertainment.
“Drive-in theaters are making a comeback this summer as the destination of choice for movies, music and other forms of live entertainment that people can experience without ever leaving the safety of their vehicle,” said Matt Schmitz, Cars.com’s assistant managing editor for news.
“Since the pandemic began, we've found that Americans are using their cars as an extension of their homes. They’ve resurrected the Sunday drive, are using their cars to socialize from a distance through birthday and graduation parades, and now they're using their cars as a new way to see live entertainment, too,” Schmitz went on to say.
Similar consumer findings in Canada, too
Seeking refuge within the confines of a vehicle isn’t limited to the United States. Toyota Canada uncovered similar trends in that country, too.
While road trips have long been a Canadian summer staple, a recent national survey has discovered that this year’s family vacation may look a little different, with almost three-quarters (74%) of Canadians having changed their summer travel plans due to the pandemic. With a desire to explore locally and reconnect with family, friends and nature, the day trip has emerged as this summer’s new preferred getaway, according to a national survey conducted by Ipsos on behalf of Toyota Canada.
With only a quarter (24%) of Canadians saying they’d feel comfortable taking a plane at the moment, according to the Toyota Canada survey, the automaker insisted it’s clear the car will be the go-to mode of transportation for the summer of 2020.
The majority (70%) of Canadians, however, feel comfortable travelling by car outside of their city or town, and almost half (49%) are planning at least one day trip over the next two months. This year, though, Canadians are looking for closer-to-home destinations to explore, with less than half (42%) comfortable venturing out of their province and only 21% who would visit the U.S in the near future.
Of those planning to hit the road this summer, Toyota Canada found that most are opting to stay within a 100-kilometer radius of home, making day trips the new preferred excursion.
Just because Canadians will be taking to the road this summer, Toyota Canada emphasized that it does not mean they are throwing caution to the wind when it comes to COVID-19.
An overwhelming majority (94%) of those planning a road trip who participated in the Toyota Canada survey said they will be taking extra precautions to protect both themselves and those around them. Of those going on a road trip, two-thirds (65%) said they will limit contact with people outside their immediate circle and limit their exposure to crowds (64%).
Other precautions Canadians plan to take on their road trips include wearing a mask while out in public (54%) and taking extra time to clean and disinfect surfaces inside the vehicle (43%).
“While this may not be the summer we had all envisioned, we’re excited to see Canadians getting back behind the wheel, slowing life down and exploring more of the incredible beauty Canada has to offer,” said Stephen Beatty, vice president at Toyota Canada, speaking through a news release from his cottage-turned-office somewhere near Algonquin Park.
“Whether it’s a quick day trip or a longer journey, there is no shortage of amazing, off-the-beaten-path treasures that offer great fun without the crowds,” Beatty continued. “As we continue to adjust to the new normal, the road trip is a great option for Canadians who want to get away safely, experience a change of scenery and start making new memories with loved ones again.”
DealerSocket looked to reinforce dealership advertising with a strategic move announced on Tuesday.
According to a news release from DealerSocket, company business unit DealerFire formed a strategic partnership with Stream Companies, a full-service, fully integrated, tech-enabled ad agency, that brings together advertising solutions with technologies to offer dealers what they believe is a consolidated approach to digital marketing management.
The firms said this new partnership taps into the power, strengths and capabilities of both companies to provide dealers with an innovative way to accelerate their digital marketing performance. Stream will serve as the full-service ad agency and ad tech provider and DealerFire as the website and SEO provider for dealers who will now have the best of both offerings combined together.
“Stream’s partnership with DealerSocket’s DealerFire will allow both companies to innovate faster and provide the best client service in automotive marketing,” said Dave Regn, co-founder of Stream Companies. “Innovation and integrated advertising, plus retailing, are key to long-term growth and competitive positioning in the marketplace.”
By leveraging each company’s technology and expertise, the ongoing partnership aims to drive client success under what the firm’s called their “core four” goals, including:
• Spark retail traffic with exclusive web & marketing integrations
• Captivate, convince and convert with strong brand message identification
• True transparency with business intelligence targeting and reporting
• Fanatical customer service with detail-oriented, high-touch support
“When I took a closer look at Stream’s offerings and what it has done to accelerate automotive dealerships’ advertising returns on investment, I knew it would be a perfect partnership and complement our websites and SEO offerings at DealerFire,” said Darren Harris, executive vice president and general manager of retail solutions at DealerSocket.
“Today’s announcement allows us and Stream to jointly deliver successful digital marketing that dealers need right now,” Harris continued. “Our partnership will allow dealers to optimize their clicks-to-showroom buying experience with DealerFire websites while fulfilling their broader digital advertising needs with a full-service, fully integrated ad agency with Stream Companies.”
For more information, visit www.DealerSocket.com or www.streamcompanies.com.
The number of potential buyers simply walking through the showroom doors already was declining even before the coronavirus pandemic arrived. Now dealers are using as many tools as possible — especially technology-powered solutions — to keep their retail operations going.
“We find that when we jump in and chat with our guests online, the rapport we build helps us increase our chances of selling them a vehicle,” said Rick Campbell of the Vann York Auto Group in a news release about Gubagoo’s Virtual Retailing, which allows dealers to sell vehicles online, and Gubagoo’s ChatSmart, which facilitates conversations with customers on dealers’ websites.
“Without automation, we would never have been able to maintain or exceed our pre COVID-19 performance,” said Matthew Muhlenkort, SEM analyst for the Walser Automotive Group in another news release about Acquire, a complete marketing automation platform designed for dealers offered by AutoLeadStar.
Gubagoo published data on Tuesday showing the continued increase of online retail and messaging tools, even as some dealerships return to full operations.
While the use of digital tools during widespread closures increased dramatically, Gubagoo insisted that more notable is that the use of these tools continues to increase, even as some communities across the country re-open.
In the past four weeks, Gubagoo said Virtual Retailing use has increased by 39% nationwide, and messaging has increased an additional 17% from the historic levels seen during the height of the pandemic.
“As progressive dealers have adopted Virtual Retailing, customers are showing the automotive community that it is the experience they have always wanted,” Gubagoo chief executive officer Brad Title said. “When we actively engage and serve the customer online, they are far more likely to purchase from the dealership.”
Dealers who staff their online showrooms, even as they bring staff back into their physical showrooms, are seeing strong results with online sales.
Tommy Coppola, general manager at Advantage Toyota Valley Stream in New York, did just that when he implemented Gubagoo’s Virtual Retailing.
“Customers are really engaged with us on the Virtual Retailing platform,” Coppola said. “It is simple for them to use, and we can seamlessly desk a deal in real time. We love it, our customers love it, and it is accelerating our sales as business opens up.”
Eastern Shore Toyota, located in Daphne, Ala., switched to Gubagoo from a digital retailing vendor that did not integrate customer messaging, making the change right as the pandemic was closing down operations. The store now is having tremendous success with online sales, according to Gubagoo.
“We have been absolutely delighted with our switch to Gubagoo as our digital retailing platform,” said Emily Brock, internet manager for Eastern Shore Toyota. “Our sales opportunities increased five times. More than 100 vehicles were sold online in 30 days.”
Gubagoo emphasized that it strives to provide unprecedented levels of support to assist dealers onboarding with Virtual Retailing, and to prepare for what lies ahead, whether that be the “new normal,” or a continuation of what automotive dealers are facing today.
“The full resources of our company are behind helping dealers navigate the months ahead,” Title said. “While we may be facing uncertainty, automotive dealers are resilient, and we look forward to continuing to play an important part in keeping the industry selling cars.”
To take advantage of a 60-day trial of Virtual Retailing, dealer representatives can contact the Gubagoo team by chat at Gubagoo.com, by phone at (833) 482-2466 or by email at hello@gubagoo.com.
Success enjoyed by Walser Automotive Group
COVID-19 forced Walser Automotive Group to pivot quickly. Its stores got assistance in the process from AutoLeadStar.
The firm that provides a complete marketing automation platform designed for dealers recently announced its automated paid ads solution, Acquire, helped Walser Automotive Group by identifying and targeting the right buyers during the pandemic, significantly decreasing their cost per lead and increasing leads by 33%.
When Walser first implemented Acquire in February, the automated system allotted 12% of the group’s ad spend to social media. However, as the market drastically changed due to COVID-19 and the government lockdown, AutoLeadStar noted that people began spending more time on social platforms.
Recognizing this shift, Acquire used machine learning to instantly identify, target and reassess where in-market buyers were spending their time and increased the ad budget across social channels to 26% in April and May. As a result, the auto group’s cost per lead decreased from more than $50 in February and March to $36 in April and May, while simultaneously bringing down the group’s costs per click.
“AutoLeadStar has given us the opportunity to react fast and deploy campaigns instantly. A team of 10 people couldn’t do what Acquire can do in seconds,” said Matthew Muhlenkort, SEM analyst of Walser Automotive Group.
Acquire, powered by artificial intelligence, leverages thousands of data points to strategically place ads on search engines, social media, and internet websites.
Dealerships can set an overall budget for Acquire, and the machine will decide where to allocate the budget based on performance and audience optimization. This capability can give Acquire the flexibility of pushing budget changes to search, display, and social in real time.
“Throughout the government lock-down, Acquire was able to automatically shift and allocate Walser Automotive’s ad budget to where it would be most effective,” AutoLeadStar chief executive officer Aharon Horwitz said.
“As we move into the next half of 2020, our team is predicting a dramatic restart for automotive and progressive groups like Walser will be the clear-cut winners as they invest in technology rather than traditional account services,” Horwitz added.
To download the Walser success story, visit https://www.autoleadstar.com/case-study-covid19/. For additional information on AutoLeadStar’s solution Acquire, and its other AI solutions for the automotive industry, visit www.autoleadstar.com.
With vehicle service contract companies and auto repair facilities ranking as some of the most distrusted industries by consumers, two companies in those spaces said they are committed to working together to change this reputation by providing transparency and higher levels of quality in vehicle repair.
ProGuard Warranty announced on Wednesday that it formed a partnership with RepairPal to bring its network of certified repair facilities to ProGuard’s base of independent and franchised dealers across the United States.
The companies explained the timing of the partnership reflects ProGuard’s expectations of the effects COVID-19 will have on vehicle ownership going forward.
“We recognized the current economic crisis would force many people to keep their vehicles longer and wanted to ensure our customers had a source of reliable technicians to get their cars repaired quickly and correctly,” ProGuard Warranty president Dominic Limongelli said.
“For our dealerships without service facilities, it was critical to have access to a trustworthy network of shops that are dedicated to helping their customers throughout the ownership of their vehicles,” Limongelli continued. “Not only does RepairPal offer the largest nationwide network of auto repair shops in the U.S., but we felt their product offering added to the value we bring to our customers.”
RepairPal emphasized that certified shops must undergo a comprehensive evaluation by a team of auto experts in order to receive certification.
ProGuard customers can take their vehicle to any participating RepairPal certified shop and be guaranteed that repairs will be completed at fair prices with quality parts. They also have access to RepairPal’s Fair Price Estimator, an online tool that educates consumers about the cost of repairs in advance of any actual service.
To further boost confidence and trust, customers are provided with analytics to confirm that their vehicle is being well maintained, according to the companies.
Moreover, ProGuard stressed that this partnership dovetails well with goal to offer plans that protect the customer and the dealer’s reputation by delivering the best service experience every time.
“We design our plans to protect the consumer and cover everything from the core components to the advanced technology that makes up so much of today’s vehicles,” Limongelli said. “Getting customers back in their vehicle as quickly as possible is very important to us and we are constantly enhancing our claims processes to improve turnaround times.
“We’ve recently incorporated the use of video in the claim approval process, enabling service facilities to review the diagnosis with our ASE certified adjustors to keep the claim moving without tying up bays,” he continued. “We’re always looking for new ways to improve efficiencies in order to create satisfied customers.”
RepairPal vice president and general manager of shop and partner networks Kathleen Long offered her perspective on Wednesday’s announcement, reiterating the goal of changing consumer views.
“ProGuard has an excellent reputation for great customer service and transparency, which is in perfect alignment with RepairPal’s own mission to provide consumers trust, quality and fair pricing in caring for their cars,” Long said. “We admire their commitment to creating a great customer experience and feel they’ll make an ideal partner as we continue to build out our network of trustworthy mechanics who deliver exceptional quality and service excellence.
“Together we will work to minimize the fear and uncertainty that can accompany car repair and change the current perceptions of our respective industries,” she went on to say.
For more details, go to proguardwarranty.com.
Continuing a string of recent announcements involving technology providers and franchised dealership websites, DealerSocket on Monday highlighted its enhanced relationship with Honda.
DealerSocket said its DealerFire website platform earned acceptance into the Honda Dealer Website Solutions Certified Program. This certification means DealerSocket’s DealerFire website platform is immediately available to Honda’s approximately 1,000 U.S. dealers.
The company highlighted Monday’s announcement marks the 20th OEM certification for DealerFire, which completed Honda's robust selection process that measured best-in-class services, a national reach and extensive automotive industry expertise.
“Honda was looking for a cutting-edge website and search engine optimization partner, and they found that with DealerFire,” said Eric Giroux, vice president of product management for DealerSocket’s digital solutions.
“Our DealerFire website platform helps dealers have a seamless shopping experience, the fastest mobile websites in the industry, and more control over their virtual showroom versus any other solution on the market today,” Giroux continued in a news release.
DealerSocket insisted that DealerFire websites are capable of mobile load speeds of less than one second on 4G and less than three seconds on 3G networks. The company believes these sites are built on the first platform specifically designed for the automotive retail industry.
“The result is fully responsive websites optimized for maximum visibility right out of the box,” DealerSocket said.
DealerFire websites feature native mobile functionality for an app-like shopping experience designed to efficiently connect car buyers to the inventory they’re looking for with Google-like, search-as-you-type functionality, and a search-by-features module.
For dealers who want more control over their virtual showroom, DealerFire websites contain a robust back-end editing system for do-it-yourself web and landing page creation with no HTML coding required.
The platform also offers more than 100 different inventory and incentives modules users can drag and drop onto a page, as well as a set of optimized webpage templates and container themes through DealerFire’s new Snapshot Studio.
DealerSocket’s announcement arrived after a series of similar developments, including:
Jaguar Land Rover certifies Digital Motors as a preferred platform
Ford, Honda boost relationship with Dealer.com
Dealer eProcess now involved with Honda & Nissan store websites
Honda chooses Dealer Inspire as a preferred website and technology platform provider
Jake Levant sees how the vehicle purchasing and financing process has improved for the consumer, but the vice president of marketing and partnerships at Lightico also emphasized that dealerships and finance companies still have some work to do to cut down on the friction buyers still experience.
In this podcast, Levant explores how the coronavirus pandemic impacted the improvement journey at Lightico, one of the firms highlighted among this year’s Emerging 8.
To listen to the episode, click on the link available below, or visit the Auto Remarketing Podcast page.
Download and subscribe to the Auto Remarketing Podcast on iTunes or on Google Play.
A pair of Jaguar Land Rover dealerships each described positive experiences using tools from Digital Motors.
And now more franchised stores for those luxury OEMs can choose to use the same solutions as Digital Motors announced on Thursday that the company has been named a certified vendor for the Jaguar Land Rover Digital Certified Program.
The digital retailing and online vehicle sales platform highlighted that certification makes Digital Motors a top recommended choice for Jaguar Land Rover retailers upgrading their digital presence to include state-of-the-art online stores and in-store desking solutions.
“Digital Motors brings the Land Rover motto of ‘above and beyond’ to life for us on the retail side of things,” said Kirk Cordill, dealer principal of Jaguar Land Rover South Shore located in Crown Point, Ind. “A seamless, touchless digital buying experience from start to finish has never been more important than in today's environment.”
Bill Colgate, general manager of Land Rover Alexandria in Virginia added in a news release, “Digital Motors allows our sales managers to quote reliable monthly payments much earlier in the process. The resulting efficiencies save everybody time — the sales manager, the F&I team, and the customer.”
A dealership’s online store, powered by Digital Motors, can provide a holistic purchase and finance experience which includes the following:
— Vehicle search and payment configurator
— Trade-in valuation
— F&I products
— Lease and finance options
— Home delivery
— Dealer sales portal
“Online sales in combination with the showroom experience are a game changer,” Digital Motors chief executive officer Andy Hinrichs said. “Rather than forcing customers down a prescribed path, we enable a choice of whether and when to transition from the online store to the in-store experience — or vice versa.”
For more details, go to digitalmotors.com.
This week, Dealer.com enhanced its relationships with both Ford and Honda.
The Cox Automotive division first announced it has been selected as a premier partner in the FordDirect Advantage Digital Advertising Program. Then, Dealer.com highlighted that it has been selected as a choice Honda website and digital advertising provider through the Honda Digital Customer Experience.
Fueled by Cox Automotive’s insight into the behaviors of in-market shoppers, key integrations and more than a decade of digital advertising expertise, Dealer.com said it can gives Ford and Lincoln dealers the opportunity to maximize sales through more precise, consistent advertising portfolios aligned to their strategies.
During these unprecedented times, Dealer.com acknowledged market forces are challenging dealers to make more accurate investments. Through Dealer.com’s Digital Advertising program, Ford and Lincoln dealers can enjoy the flexibility and business intelligence needed to reach consumers at all stages of their journey, displaying the right ad to the right shopper and on the right channel at the right time.
Dealer.com insisted its secure advertising solutions are right-sized for every dealer.
“We are seeing record-breaking online traffic and dealers have to spend smarter on every channel to reach consumers wherever they are digitally,” said Wayne Pastore, vice president and general manager of Dealer.com.
“Our customers are facing market uncertainty, changing consumer behaviors and advertising fraud in a very competitive industry,” Pastore continued in a news release. “We have the data and partnerships to drive Ford and Lincoln dealer businesses forward by helping them optimize their advertising portfolio and thrive amid disruption.”
While digital advertising technologies may seem complex, Dealer.com emphasized that its approach begins with supporting individual dealer needs. Leveraging the proprietary Compass Advertising Intelligence engine, a portfolio is built to a dealer’s goals and budget and will flex with a dealer’s changing needs.
Dealer.com’s business intelligence and insights then can help steer Ford and Lincoln dealers toward smarter advertising investments.
Dealer.com highlighted its other advertising solutions key advantages include:
— Leverage shopper data from Autotrader and Kelley Blue Book to help dealers capitalize on existing demand in a dealer’s market.
— Filter inventory for advertising through Paid Search with vAuto data, including Market Day Supply, Price Rank, vRank, and Price to Market, ensuring a dealer spends the right budget on the appropriate vehicles.
— Apply relevant pricing data from Xtime Schedule in paid search ads, driving more applicable ad copy promoting a dealer’s service department.
— Provide turnkey video creation and delivery service for dealers no matter their budget, driving compelling, offer-based video content to high value, high engagement video channels like Facebook and YouTube.
— Detect and combat advertising fraud and ensure dealer investments are protected with a partnership with White Ops and the Trustworthy Accountability Group.
The Dealer.com platform can deploy personalized, integrated ad campaigns that use artificial intelligence and impactful creative to reach prospective vehicle buyers and owners through paid search, display, social media and video channels.
To learn more about Dealer.com advertising, visit https://www.dealer.com/products/advertising.
Honda selects Dealer.com as a certified website provider
As mentioned, Dealer.com announced it has been selected as a choice Honda website and digital advertising provider through the Honda Digital Customer Experience.
Through Dealer.com’s Website Choice program, Honda dealers can receive customized, strategic and secure management of a dealer’s advertising strategy and investment to connect with in-market shoppers across the digital channels that drive performance.
Dealer.com pointed out that it is aiding Honda dealers to deliver a personalized, efficient car shopping experience, which customers expect now more than ever before.
Fueled by user experience research, data science, and exclusive integrations with Cox Automotive brands, Dealer.com websites can deliver a full service, personalized digital storefront experience that can complement a dealer’s individual business goals.
“We are better positioned to help dealers now and invest in the long-term to respond to the new model of car shopping,” Pastore said in another news release.
“Through Honda’s Website Choice Program, we provide all the levers dealers can pull in the digital marketing ecosystem whether it’s on their website, through social channels or video,” he continued. “These tools have impact and will allow dealers to connect in a meaningful way to their customers.”
Through insight into human behavior, supported by data from Cox Automotive brands like Kelley Blue Book, Autotrader, Dealertrack, HomeNet and more, Dealer.com’s Website Choice program offers professional services that address and solve the challenges faced by dealers and their customers.
Participating dealerships will receive a strategic advantage in content creation, SEO ranking, advertising, social strategies and more.
Dealers who would like to learn more can visit https://www.dealer.com/honda/.
Fitch Ratings spotted another place where improving vehicle sales has been good for the automotive industry.
Analysts reported this week that dealer floorplan (DFP) asset backed securities (ABS) trust performance metrics — including monthly payment rates (MPR) — have rebounded on the back of new U.S. auto sales rising in May and early June off of the lows in April, tempering rating pressures entering the historically stronger summer sales season.
However, Fitch Ratings acknowledged that dealers continue to face a challenging operating environment with a rise in coronavirus cases in many parts of the U.S. Analysts noted revenues and profit levels remain suppressed as the new-vehicle seasonally adjusted annual rate (SAAR) is below 13 million units through May.
While the asset performance outlook for the sector is negative, Fitch reiterated that it has not taken any negative ABS rating actions to date, reflecting available credit support and conservative dealer default analysis.
Fitch explained its derived net loss levels for DFP ABS platforms assume more than 50% of dealers default, some of which then resume sales based on ratings and financial metrics such as revenues, profits and absorption rates. This results in modeled dealer default levels of 15 percent to 25 percent for trusts, 10 times to 20 times actual historical dealer defaults.
Analysts noted that there have been no reported defaulted dealers in the ABS trusts to date arising from the coronavirus-related lockdowns across Fitch-rated DFP ABS networks.
“Many dealers across the U.S. remained open for the most part during the pandemic and also moved to online sales to make up for lost foot traffic, which helped to mitigate weakened overall vehicle demand during March and April. Dealer networks also benefitted from government support under the Paycheck Protection Program,” Fitch said in its latest update.
“Dealer networks have received solid support from auto manufacturers and captive lenders, helping to contain credit issues at dealers,” Fitch continued, referencing incentives from captives such as interest-free periods, which drove sales up from less than 10 million new units in April to 12.6 million in May.
Additionally, Fitch mentioned DFP lenders for the most part provided three-month deferrals on capital line interest payments, one of the highest dealer costs, and also deferred curtailment payments, alleviating pressure until the summer when sales and revenues will potentially rebound.
“These helped keep dealer costs down when needed most and have likely supported dealers’ ability to pay down existing debt, benefitting MPRs,” analysts said.
Fitch went on to note the recent new-vehicle sales rebound in May and June and prior production halt resulted in lower inventories, particularly for popular models such as trucks, pickups and SUVs.
Analysts recapped that wholesale used-vehicle values plummeted to around 15% to 20% in March and April, stabilizing in May and improving going into the latter half of June, “positive for dealers as they rely mostly on profits from used sales.”
Analysts then said, “Considering double-digit unemployment, Fitch expects consumers to opt for cheaper, used vehicles during 2020.”
Fitch added trust MPRs declined dramatically in the month of April, but no trust saw MPRs fall below 17%, “showing a high degree of resiliency for the sector, and have started to improve in May.”
Analysts closed by mentioning trusts use MPR performance as a barometer of an issuer’s continuing ability to service and pay notes. Fitch noted MPR early amortization triggers generally look to three-month average MPRs and range from 15% to 30% depending on the trust.
BMW Financial Services and Daimler revised their trust triggers, extending the average range to six months from three months, according to Fitch.
