Carfax and DealerSocket have expanded their partnership, and now more than 4,000 Carfax dealer websites powered by the automotive technology platform now are upgraded with Carfax Snapshot.
Carfax Snapshot puts key vehicle history information directly on the search results and vehicle details pages.
With information such as reported accidents, number of owners, service records and open recalls online shoppers can quickly identify if a vehicle has the right history for them.
Online shoppers can view Carfax Reports purchased by dealers for free on dealer websites created by DealerSocket.
“Transparency is a requisite for success in the current used car marketplace,” DealerSocket director of product management Aaron Schinke said in a news release. “Having an additional layer of vital Carfax information on our dealers’ websites with the Carfax Snapshot tool helps ensure transparency and build trust for each transaction. It’s another step in our efforts to provide dealers with the most innovative and versatile website solutions available today.”
Dealers who want to add Carfax Snapshot to their website can contact their Carfax representative or website solution provider.
In other news from the company, Carfax announced Advent Resources has fully integrated its dealer management system with myCarfax Service Shop tools.
“This integration is another example of our efforts to deliver maximum value to Advent DMS clients,” said Advent Resources chief executive officer Tim Gill.
“Working with Carfax and the myCarfax Service Shop program, we’re putting trusted information about past maintenance in the hands of service writers to better serve their customers. We fully expect this enhancement will have a net positive impact on operations efficiency and service revenue.”
Dealerships using the Advent DMS can take advantage of free resources such as Carfax Service History Check and Carfax QuickVIN by joining the myCarfax Service Shop program.
Carfax QuickVIN helps avoid parts-ordering errors and increases ticket averages. Carfax Service History Check shows a vehicle’s reported maintenance history on myCarfax.com and sends alerts regarding vehicle maintenance recommendations and recalls.
Dealers interested in using the Advent DMS integrated with the myCarfax Service Shop tools can visit www.adventresources.com.
Spireon recently introduced its latest connected car solution — Kahu — a smart add-on designed to provide dealers streamlined inventory and lot management that also offers car buyers modern location tracking and stolen vehicle recovery service.
Kahu is the first connected car solution specifically designed for dealerships, according to the company.
“New car dealer margins have been flat for several years, driving a need to create new revenue and profit opportunities,” said Spireon chief executive officer Kevin Weiss. “Connected cars are changing the industry, but dealers are receiving little value from this shift. Kahu changes that dynamic, giving dealers the tools they need before, during and after the sale to grow profits and benefit from the connected car revolution.”
Kahu will generally be available in the second quarter of 2017, a select group of early adopter customers already have it installed.
“Our partnership with Spireon has paid for itself tenfold,” said Spireon customer Jon Hansen, general sales manager of Burien Nissan. “Being able to offer a product that I find value in to our customers and making it a revenue generator for the dealership is really big for us. I would absolutely recommend Spireon to other dealerships.”
Kahu includes an aftermarket GPS device and mobile apps for dealers and their customers.
Spireon said the smart add-on is intended to help dealers to grow service retention with car buyers by providing accurate vehicle data for proactive maintenance reminders and increase service retention.
The solution allows consumers to track their vehicle as well as receive to smart alerts for speeding and low battery.
“Kahu is an attractive add-on that safeguards consumers while driving dealer profit,” said Spireon.
Swickard Auto Group recently announced that it acquired Brien Ford of Everett, Wash., the company’s second dealership in the Pacific Northwest.
The Seattle-area Ford dealership has been renamed Epic Ford but will continue to sell and service both new and used Ford cars, trucks and SUVs.
“This purchase is an ideal platform for growth in the Puget Sound region with the coveted Ford brand,” Swickard Auto Group president and chief executive officer Jeff Swickard said in a news release.
“This transaction represents a great opportunity for our customers and employees. We’re pleased to welcome Epic Ford as the newest member of the Swickard Auto Group family. We are excited to work with the great team at Epic Ford — which shares our passion for customer experience.”
Epic Ford will retain former co-owner Casey Salz as general manager in addition to most current employees such as the dealership’s current management team, according to Swickard Auto Group.
The combined businesses will employ about 200 people. Epic Ford’s facility has been in operation since 1971.
Swickard Auto Group is headquartered in Wilsonville, Ore. The company also owns Mercedes-Benz of Wilsonville, which it acquired in May 2014.
Since its acquisition, the dealership has had the top Mercedes-Benz sales volume in the state.
“Our commitment to service has helped make Mercedes-Benz of Wilsonville the No. 1 Mercedes-Benz dealer in Oregon in new-car sales volume and we were recognized by Mercedes-Benz last year as a Best of the Best Dealer,” Swickard said.
Sixty-two percent of consumers say that they are loyal to an automotive service center despite the low retention rate for the average dealer, according to a recent study.
AutoLoop's 2016 Automotive Digital Engagement study uncovered new insights into the value of engagement for dealers and revealed a varying meaning of customer loyalty among Baby Boomers, Generation X and millennials.
The provider of auto industry marketing and customer relationship management solutions said it commissioned the study to gain fresh insight on how digital media influences customer loyalty and to determine new strategies for dealers to engage and retain their customers.
“Today, the Big 3 automakers account for only 44 percent of the market — a 26-percent decline from two and a half decades ago.” AutoLoop vice president of analytics and data services Doug Van Sach said in a news release. “In this short amount of time, consumer loyalty is no longer within reach, as the average customer retention rate across the industry has sunk below 50 percent.”
As a result, he said dealers loose more than half of their customers each year.
A sample of 1,000 auto consumers across U.S. was surveyed and AutoLoop examined the purchase behavior of more than 4 million customers representing 1,000 dealerships in the country.
AutoLoop found that when customers were asked what loyalty means to them, responses showed a difference in opinion between generations.
“The hard truth for dealers is that most consumers have redefined what it means to be loyal in the digital age,” Van Sach said.
Baby Boomers were most likely to say loyalty means always visiting the same store when they have a need for service, while the younger generations regard loyalty as a “sometimes” rather than an “always” behavior.
And roughly more than half of millennials say they are loyal even though they visit competitors frequently.
Van Sach said, “What these results really mean is that loyalty is more of a convenient activity rather than a commitment. Given this discovery, dealers are faced with a new challenge-prevent their best customers from going elsewhere even if they show no signs of disloyalty."
Both heightened competition and online pricing is somewhat to blame for the decline in loyal consumers, but a pivotal factor is the evolving mindset of U.S. consumers, according to Van Sach.
“Many dealers still use outdated, disconnected marketing programs with little to no coordination across media and touchpoints,” he said.
“To address the lost revenue opportunity, dealers need to dramatically rethink their marketing strategies.”
DealerSocket has announced plans to introduce four new technology advances to streamline automotive retail at the NADA Convention and Expo this week.
DealerSocket’s new and newly enhanced tools include Precise Price, Blackbird, Health Check, and both Credit Bureau Connection and RouteOne CRM integrations.
Precise Price is a transparent integrated digital retailing tool that merges with dealership CRM platforms, which allows customers to initiate the framework of deals on a dealer’s website.
Customers are informed about all costs before making a decision via the platform.
The tool also factors in cost influencers, such as dealer incentives and fees, vehicle protections, local taxes and trade-in evaluations, according to DealerSocket.
The company’s software platform, Blackbird, has been redesigned and updated to provide a more streamlined workflow.
Blackbird’s updates include more customization and smoother navigation.
“DealerSocket listened to its customers — receiving input from more than 70 dealers and user testing feedback — and responded with the development of Blackbird,” said DealerSocket founder and chief technology officer Brad Perry in a news release.
“We determined the areas where the platform could be improved and completely redesigned the interface for quick access to regularly used tools, so dealers could experience greater efficiencies and savings.”
Additionally, DealerSocket said it is transitioning to a “single point of entry” or Customer Success Manager (CSM) model to improve customer service.
Previously, dealers had several points of entry with DS, with the various DS tools, according to the integrated technology platform developer.
To aid DealerSocket CSMs, the company is launching its new digital monitoring tool, Health Check, which assess dealers activity and alerts them if they are underutilizing their CRM platform.
Health Check detects when users may need help or training and then notifies DealerSocket. The tool regularly scans dealers’ use of software and signals the CSM to make contact when necessary.
DealerSocket has also begun a partnership with Credit Bureau Connection (CBC) and introduced a newly enhanced integration with RouteOne, its credit application decision engine.
CBC provides sales teams with credit report and compliance solutions such as prequalifying applicants, capturing leads and obtaining electronic credit reports from Experian, TransUnion and Equifax.
Furthermore, the tool delivers added compliance protection with the Red Flags Indicator that catches potential identity fraud cases.
RouteOne now supplies improved data accuracy and greater transparency between deals in each system through two-way data synchronization between DealerSocket CRM and RouteOne.
At NADA, DealerSocket will be displaying its new technologies and performing demos at booths 937 and 1137.
One of the Blue Oval’s shining stars in turning certified pre-owned metal, as well as used vehicles in general, now is one of the first stores to be involved in a new way for customers to purchase or finance a new Ford vehicle in minutes — right from a dealership website from anywhere, on any device.
This new delivery capability is through a new platform released on Monday from Ford Motor Credit and financial technology company AutoFi.
In addition, Ford Motor Credit has made an investment in AutoFi as the Blue Oval’s captive finance company continues pursuing technological advances to make the financing experience better.
“By combining our fast and efficient credit-decision process with AutoFi’s online capability, we are making the customer experience faster, smoother and simpler,” Ford Motor Credit director of mobility Lee Jelenic said in a news release.
“With its experience in used-vehicle online financing and well-developed platform, AutoFi makes it easier for us to adopt new technology quickly to meet evolving consumer expectations,” Jelenic continued.
The AutoFi platform is being used now at Ricart Ford in Groveport, Ohio, and will roll out over time to more Ford and Lincoln dealerships across the United States.
“Technology is transforming just about every type of financed consumer purchase, and this new digital capability will help make that change for automotive purchases and deliver great experiences,” said Rick Ricart, sales and marketing vice president at Ricart Ford. “We are excited to be the first Ford dealership in the pilot.”
The introduction comes as 83 percent of Americans say they would like to spend as little time at the dealership as possible when shopping for or buying a car, according to a new survey of more than 1,000 U.S. adults conducted online by Harris Poll on behalf of Ford.
OEM officials pointed out that many of those same people, however, still want to touch and feel their new vehicle before signing on the dotted line. “The new platform provides the best of both worlds,” they added.
Through the dealer website, customers have a transparent and seamless purchase and finance experience from anywhere on their mobile phone, tablet or computer. Once the online part of the transaction is complete, all customers need to do is sign the paperwork when they collect their new Ford.
Consumers may shop for a new Ford in the showroom or from anywhere via the Ricart Ford website. After selecting a vehicle, they can apply for credit and receive a decision, choose the financing terms that make sense for them, and then review and select optional vehicle protection products – completely online on their own time.
Customers then can review a final summary of the financing terms and schedule time to complete the transaction and pick up the vehicle.
“AutoFi’s platform will help cut the time people spend arranging financing and improve the experience dealerships can deliver for their customers, no matter where they are in the car-buying journey,” said Kevin Singerman, chief executive officer of San Francisco-based AutoFi.
“We think this will be a game changer for both consumers and dealers, and we are thrilled to work with Ford Credit to make this happen,” Singerman added.
Auto Remarketing highlighted how Ricart Ford and the rest of the Ricart Automotive Group has thrived for three generations; starting with Paul Ricart on Independence Day in 1953 as a single-point Ford franchise in Canal Winchester, Ohio — with four cars and one garage.
On Monday, Helion Automotive Technologies announced the release of its new free eBook for auto dealerships, titled “Three Service Department Pain Points, Solved! How Faulty IT Infrastructures are Causing Dealerships to Lose Revenue, Lose Customers and Lose Employee Buy-In.”
The eBook highlights problems service departments face when their networks don’t support new technologies that depend on substantial amounts of bandwidth, according to Helion.
"When I tell dealers they need to upgrade their networks, the thing I hear the most is that they just upgraded two years ago and they don't understand why it needs to be done again," said Helion founder and president Erik Nachbahr in a news release.
"The reason is because of the Internet of Things, and the number of connected devices has nearly tripled in the last three years. This trend is accelerating and bandwidth requirements are expected to nearly triple again in the next few years. Most dealers are really behind the curve in where they need to be right now and to prepare for the future."
Furthermore, Helion said the ebook offers specific recommendations and minimum benchmarks for dealerships' IT networks, along with internet, WiFi and network switches.
Insights from industry experts are in the book as well, and they include Chip King of CallRevu, Jeff Cowan of PROTALK and Michael Roppo of WithumSmith+Brown.
To download “Three Service Department Pain Points, Solved!” go to http://bit.ly/2iPbOUu.
DriveItNow and GoMoto will lead NADA’s “Modern Dealership Experience” during its convention in New Orleans later this month.
During the presentation, the companies are set to discuss the latest disruptive technological developments that can help dealers boost sales and enhance service experiences for online buyers.
“Consumers want to complete more of the car buying process online,” said DriveItNow president Tarry Shebesta in a press release.
"Through our patent-pending Shop-by-Payment feature and Automotive Digital Retailing platform, DriveItNow creates a better online to offline consumer experience and gives dealers a competitive edge.”
Additionally, DriveItNow said it will review solutions concerning everyday dealership challenges as market competitors are continually capitalizing on car buyers changing shopping preferences.
Following “Modern Dealership Experience,” demonstrations will also take place throughout the convention.
“GoMoto will demonstrate our breakthrough, patent-pending self-service technology for the service drives and showrooms.” said GoMoto chief executive officer Todd Marcelle.
The company offers cloud-based customer engagement solutions via its HUBKiosk Platform.
“This technology is designed to enhance the modern car buying experience, meet the demands of today's consumers, and enhance the bottom line,” said Marcelle.
NADA’s four-day convention begins on Jan. 26.
On Thursday, NCM Associates and The Rawls Group, a provider of long-term strategic and succession planning, announced the launch of the NCM-Rawls Dealer Executive Program, their new leadership development educational program for current and future dealers.
“Rapid changes in our industry, such as autonomous cars, ride-sharing companies and the electrification of vehicles, mean we need to adopt new approaches to training and leadership to help our clients succeed,” NCM president and chief executive officer Paul Faletti Jr. said in a news release.
“This new program does just that, leveraging the retail automotive expertise at NCM and The Rawls Group’s succession planning knowledge to ensure current and incoming dealer principals have the tools and skills needed to lead their dealerships into the future," Faletti continued.
At the start of the program students will take an assessment that identifies their natural leadership style.
“This tool then serves as the cornerstone for faculty and students to develop deeper insight using each student’s natural communication style to build rapport and engage, foster buy-in, and lead those around them,” NCM Associates said..
Once students get a grasp of their leadership style, the curriculum of the program will shift to dealership sustainability training through interactive discussions and coaching around issues dealers and successors commonly encounter, according to the company.
“Our experience confirms that manufacturers are implementing more stringent requirements regarding the attitude, knowledge, and experience of successor dealers,” Rawls Group chief executive officer Loyd Rawls siad.
“As succession planners dedicated to the totality of issues impacting continued prosperity of a dealership, we have been actively involved in all nuances influencing successor development and preparation," Rawls added.
Penske Automotive Group said Wednesday that its purchase of CarSense announced in December has officially closed.
CarSense, a standalone used-car retailer whose no-haggle model focuses on late-model units. It has five stores throughout the Pittsburgh and Philadelphia metro areas, including southern New Jersey.
“We are pleased to welcome the CarSense team to Penske Automotive Group, and we look forward to combining our resources as we expand our share of the highly fragmented used vehicle marketplace,” Penske Automotive Group executive vice president Whit Ramonat said in a news release.
Penske anticipates an estimated $350 million in annual revenue to be generated from the purchase. It estimates accretion at $0.07 to $0.09 on an annualized basis.
Fellow publicly traded dealer groups Sonic Automotive and Asbury Automotive Group each have used-car standalones in EchoPark Automotive and Q auto, respectively, while AutoNation has plans to roll out its own.
Similar purchase in UK
In a related move, Penske announced Friday that it has signed an agreement to buy CarShop, a chain of five standalone used-car retail stores in the U.K.
CarShop has locations in Cardiff, Swindon, Northampton, Norwich and Doncaster. The company, which launched in 1999, also has a 15-acre vehicle preparation center in Leighton Buzzard that can recondition 45,000 cars a year.
Penske Automotive Group chairman Roger Penske said in Friday’s news release: “The acquisition of CarShop furthers our diversification strategy within the transportation services industry, and is complementary to our existing core auto retail business.
“Similar to the U.S. market, used-vehicle sales in the U.K. are nearly three times the size of new-vehicle sales on an annual basis. The CarShop acquisition, combined with the pending acquisition of CarSense in the United States, strengthens our market position in our two largest markets (United States and United Kingdom) while providing scalable future growth opportunities,” Penske added.
The deal must meet certain conditions and is expected to close by end of quarter.
