DealerRater.com broke its monthly record in August, reporting nearly 60,000 consumer review submissions to the site last month.
The total number of reviews for August, coming in at 59,814, represented a 69-percent increase over August 2014’s results.
“August was our biggest month ever for submitted reviews,” said Gary Tucker, the company’s chief executive officer. “The dramatic increase in reviews submitted to DealerRater.com reflects how consumers are embracing third-party reviews during the shopping process and sharing their experiences afterwards. DealerRater is meeting a consumer need, not unlike how Twitter and Facebook have shaped the way people share information with one another.”
According to the company, the sharp increase in submitted reviews is partly due to products like ReviewBuilder, which is part of its DealerRater Certified Dealer Program suite, and LotShot, a photo review application. DealerRater’s partnership with Autotrader also allows site visitors the ability to read and write DealerRater reviews.
The company also recently announced a partnership (coined as the Hyundai Advantage Program) between J.D. Power, DealerRater and Hyundai North America, that invites new Hyundai owners to review their dealer on the site. According to the company, the program has delivered its dealers a 366-percent increase in submitted reviews since January.
According to Tucker, every review is reviewed to be certain it’s been submitted by an actual person.
“Our reviews average more than 100 words, so people are telling a story that will help interested shoppers make a connection with a dealer and an employee at that dealership, and select the best dealership and salesperson for them,” Tucker said. “DealerRater.com specializes in one industry — automotive — making for an exceptional customer experience for those writing and reading reviews about car dealers. We recently surpassed 2 million reviews and expect to reach 3 million sometime next year.”
Going by DealerRater’s numbers, the site averages 2,000 reviews a day. For more information, visit the company’s site here.
On Friday, Xcira unveiled its new floor plan management system, which will begin its launch sequence at BSC America’s Bel Air Auto Auction later this month.
Designed to allow an auction to manage its own floor planning program for its dealers more efficiently, the company highlighted the system is the most recent in a series of cutting-edge technological solutions developed for the auction industry by Xcira, creator of the patented OnLine Ringman program.
“Xcira continues to support the auction industry with innovative technology,” Xcira chief executive officer Nancy Rabenold said. “Our newest product, the Floor plan Management System, has been designed to optimize the workflow at the auction level, reducing the steps and user actions required to floorplan vehicles.”
Rabenold indicated that the new system integrates a number of processes that previously were managed separately by auction finance departments. The solution can accommodate:
— Variable rate interest calculations
— Multiple fee tables
— Flexible dealer curtailment schedules
— A tool for calculating payment estimates
Rabenold also pointed out the program also can provide a central location for collection notes, compliance information, notification of expirations, lot audit reporting and vehicle loans across a historical portfolio.
“We’re excited about the system’s ability to streamline the floor planning process for auction finance departments,” Rabenold said. “Using a tablet or other mobile device, an auction representative can meet a dealer in the auction lane and floorplan a vehicle right at the point of sale.”
“In addition to its very extensive core capabilities, our new Floorplan Management System also accommodates a number of customized reports, including dealer vehicle reports, outstanding balances, aging, vehicle payment history and dealer credit balance at external auction houses,” Rabenold continued.
BSC America president Charles Nichols described what it’s been like to be involved in the program launch.
“The auction team at Bel Air Auto Auction has enjoyed collaborating with Xcira using its agile development process to build this great new auction tool,” Nichols said. “We look forward to the work flow improvements that this enterprise-level Floor Plan Management System will provide, which will allow us to better serve our dealers."
Rabenold also mentioned that future enhancements to the program are planned, the least of which includes a mobile-based lot check capability and integration with price guide books and an auction’s management system.
Xcira will demonstrate the new product during the upcoming NAAA Convention in Orlando, Fla. Officials will stationed in the Escambia Boardroom at the Hilton Orlando Bonnet Creek Hotel from Sept. 22-24.
An appointment can be arranged by calling Xcira at (813) 246-3558 or by sending a message to Mark Cameron at [email protected].
Car Lister, a Web application that can allow dealers and consumers to list, buy and sell new and used vehicles directly from their mobile device, announced a partnership on Wednesday with eLEND Solutions to integrate its online credit application product into the platform.
The companies explained that the partnership will provide Car Lister’s network of dealers access to eLEND Solutions suite of integrated credit, identification and finance solutions. The alliance can provide customers with instant pre-qualification and direct access to near-final payment terms from multiple finance company programs.
And dealerships can be a part of a greatly streamlined process that they control.
Once consumers found their vehicles, buyers can complete the entire pre-approval process through the Car Lister app, selecting their loan preference, payment options, term and place a down payment to hold the vehicle.
Operating in Beta since last October, Car Lister is designed to provide a seamless integration with dealers’ existing systems, lets private sellers upload and list vehicles for sale, and buyers shop for new and pre-owned cars from any smartphone, tablet or desktop.
The application also can generate titles and vehicle descriptions, allows for the upload of images and video, and includes a full vehicle history report at no cost. Car Lister has been officially available to users and dealers since January.
“Our primary goal with Car Lister has always been to bring the car buying experience into the 21st century with the first ever social platform for selling vehicles online,” said Bryan Harmon, founder and chief executive officer of DreamWare, the parent company of Car Lister.
“This partnership with eLEND Solutions provides customers and dealers an added layer of convenience by bringing a transparent and instant financial application into the palms of their hands,” Harmon continued.
Pete MacInnis, CEO of eLEND Solutions, reiterated that the company’s tool, CreditPlus, can prequalifies customers based on dealer-defined credit criteria, giving buyers direct, upfront access to dealership financing sources and real, near-final terms from multiple lenders — all without impacting their credit score, enabling them to transition from online shopping to in store buying seamlessly.
"eLEND Solutions is leading the charge in creating a truly connected car-buying experience for automotive retailing, cutting the time it takes to buy a car from hours to minutes,” MacInnis said.
“The integration with the Car Lister platform promises a streamlined workflow for dealers and a seamless in-store experience for shoppers, all of which should increase both profits and customer satisfaction,” he went on to say.
For more information on DreamWare, visit www.dreamwareinc.co, and for Car Lister, visit www.carlister.co.
Vcommerce, founded by former Whann Technology Group executive Kelly Bianchi in June, launched its auctionVcommerce.com website on Monday, providing a platform it says can “bridge several gaps within the wholesale automotive industry.”
AuctionVcommerce.com, which was built as an “agnostic, third-party consultant to the industry,” is designed to create online standards for auctions and technology vendors to help boost the overall customer experience, the company said.
Through this portal, customers will be able to access services like the following from Vcommerce or Vcertified Partners:
- Online auction management services
- Online infrastructure support
- Training
- Sale day customer support
- Technology vendor support
- Marketing support
- Other supplemental services
Monday marks the soft launch. Vcommerce plans on making the full-scale launch at Used Car Week, which is taking place Nov. 16-20 at The Phoenician in Scottsdale, Ariz.
Vcommerce offers infrastructure support via training, resources, management and marketing; that includes things like sale-day technology support for dealers and consignor, technology vendor support for auctions and lane monitoring.
Explaining more abouot the company, Bianchi said that, “The whole program is scalable to what the auction needs.”
For example, you may have one auction with a full technology crew and fully equipped with marketing, and so forth. However, that auction may want to utilize Vcommerce for consulting services when it comes to online social commerce or training within its departments.
Meanwhile, she said, another smaller auction may have a much smaller infrastructure to the point where a general manager who is doing check-in on some days to support the operations for the physical auction sale.
“So there’s no way that they can develop an infrastructure from within their organization to host the full online business,” Bianchi said.
“We can provide the full online auction management service and manage all of that remotely by utilizing some of the people online and giving our expectations of what we would need every week, so there’s a work-flow process in place for that. For the cost of hiring a whole individual, they get a team,” she said, adding that it’s more ideal to approach online as a full business structure rather than simply as value-add.
For more information, visit www.auctionvcommerce.com.
Sam’s Club announced today its new Auto Buying Program, powered by TrueCar, that it says provides guaranteed savings off of the MSRP on new cars and exclusive savings on used cars for its members.
According to the company, Sam’s Club members have access to more than 10,000 TrueCar certified dealers nationwide.
“Whether it’s your first car or your sixth, the process of purchasing a vehicle can be a daunting task,” said Seong Ohm, Sam’s Club’s senior vice president of merchandising business services. “We’ve chosen to launch our auto buying program with TrueCar based on their proven ability to bring car buyers a best-in-class experience. Our auto buying program will save members both time and money.”
Sam’s Club members utilizing its Auto Buying Program will have access to the following benefits, as listed by the company:
Used-car purchasing benefits
- Save hundreds off list price with exclusive member discounts
- Access to 500,000 used vehicles for sale
- 3-day return policy for members’ peace of mind
New-car purchasing benefits
- Save an average $3,000 off MSRP with negotiation-free Guaranteed Savings
- Additional savings and offers for Sam’s Club members
- Access to TrueCar’s Certified Dealer Network, which includes more than 10,000 dealers nationwide
- TrueCar Certified Dealer representatives to help assist members onsite at showroom
Sam’s Club members will also have access to TrueCar’s traditional market pricing analysis that shows what others in their market paid for the car they are shopping for and can also receive a “Buyer’s Bonus” included as a benefit that could be worth up to $2,000 in auto repair reimbursement and auto deductible reimbursement.
“Sam’s Club is the warehouse club of choice for millions nationwide, representing a broad base of consumers and business owners with serious buying power,” said Jim Nguyen, TrueCar’s co-founder and executive vice president of partner development. “We are excited to serve these quality seeking, smart and loyal members, who will appreciate the exceptional value offered through the Sam’s Club Auto Buying Program.
“TrueCar and our dealer partners have helped modern consumers save over $3 billion off MSRP and are delighted to provide the best and most innovative car-buying experience to Sam’s Club members.”
For more information on the Sam’s Club Auto Buying Program, visit its site here.
Shift Technologies announced Tuesday it has raised $50 million via Series B funding for its car buying and selling marketplace.
Powered by its Series B funding led by Goldman Sachs Investment Partners, along with its previous Series A financing from DFJ and Highland Capital Partners, Shift offers end-to-end concierge services for vehicles of buying and selling customers.
Currently available in San Francisco and Los Angeles, the company offers free on-demand test drives and appraisals at the buyers’ or sellers’ locations and manages the complete transaction process from end to end.
According to the company, sellers are guaranteed a minimum price for their vehicle immediately after the initial appraisal is completed while also offering to track down the right car for buyers if it’s not immediately available.
“We aim to invest in companies that solve major consumer pain points by rethinking a traditional market through an inventive approach,” said Ian Friedman of GSIP. “Shift provides a unique service that is transforming the way we view car ownership. The company has flipped the classic model of buying a used car on its head by providing a superior buyer and seller experience leveraging a unique technology platform. We are excited to work with Shift as they launch in more cities across the country.”
Shift plans to utilize this round of funding to grow its team and expand into new markets, expecting to operate in more than 20 markets by the end of 2016.
“There’s a massive opportunity to modernize the pre-owned car market with a combination of technology, better economics, and a consumer-centric model,” said George Arison, Shift’s chief executive officer and co-founder. “The current options are either a significant hassle or exceedingly unfair from a price standpoint. These issues aren’t going to be solved by re-creating a car dealership online, but rather by pursuing a new model that empowers private buyers and sellers. We’re excited to partner with GSIP as we take our company to the next level.”
According to Friedman, GSIP’s plans are to help Shift grow as quickly as possible.
“We are immensely impressed with Shift’s operations and product team, who have enabled the company’s platform to scale at a rapid pace in multiple markets in California today,” Friedman said. “Our diligence revealed the exceptional feedback from customers and sellers who have depended on Shift for buying or selling their car. We are excited about the opportunity to partner with Shift to enhance the trust, transparency, and ease of the entire car ownership experience. This investment will help Shift bring that remarkable experience to buyers and sellers across the country.”
To learn more about Shift, check out its website here.
Perhaps vehicle buyers on your lot aren’t interested in every single new bell and whistle a model can have nowadays. Or store personnel isn’t explaining how the technology works thoroughly enough at the time of delivery.
Those findings and more are part of the J.D. Power 2015 Driver Interactive Vehicle Experience (DrIVE) Report, which found automakers are investing billions of dollars to put technologies in their cars and light trucks that are not being used by many of the owners of those vehicles.
The 2015 DrIVE Report measures driver experiences with in-vehicle technology features during the first 90 days of ownership.
The report released this week indicated that at least 20 percent of new-vehicle owners have never used 16 of the 33 technology features measured. The five features owners most commonly report that they “never use” are:
—In-vehicle concierge: 43 percent
—Mobile routers: 38 percent
—Automatic parking systems: 35 percent
—Head-up display: 33 percent
—Built-in apps: 32 percent
J.D. Power also discovered there are 14 technology features that 20 percent or more of owners do not want in their next vehicle, including Apple CarPlay and Google Android Auto, in-vehicle concierge services and in-vehicle voice texting.
Among Gen Y consumers involved in the report, J.D. Power found the number of features unwanted by at least 20 percent of owners increases to 23, specifically technologies related to entertainment and connectivity systems.
“In many cases, owners simply prefer to use their smartphone or tablet because it meets their needs; they're familiar with the device and it's accurate," said Kristin Kolodge, executive director of driver interaction and HMI research at J.D. Power.
“In-vehicle connectivity technology that’s not used results in millions of dollars of lost value for both consumers and the manufacturers,” Kolodge continued.
Among all owners, the report indicated the most frequently cited reasons for not wanting a specific technology feature in their next vehicle are “did not find it useful” in their current vehicle and the technology “came as part of a package on my current vehicle and I did not want it.”
In addition, the report mentioned owners who say their dealer did not explain the feature have a higher likelihood of never using the technology.
Furthermore, features that are not activated when the vehicle is delivered often result in the owner not even knowing they have the technology in their new vehicle.
Kolodge noted that the technologies owners most often want are those that enhance the driving experience and safety, which are only available as a built-in feature rather than via an external device. In-vehicle technologies that most owners do want include vehicle health diagnostics, blind-spot warning and detection and adaptive cruise control.
“The first 30 days are critical. That first-time experience with the technology is the make-it-or-break-it stage,” Kolodge said. “Automakers need to get it right the first time, or owners will simply use their own mobile device instead of the in-vehicle technology.”
Because the first few weeks of ownership are so critical, dealerships play the most important role in helping owners get off to a good start with the technology in their vehicle, Kolodge noted.
“While dealers are expected to play a key role in explaining the technology to consumers, the onus should be on automakers to design the technology to be intuitive for consumers,” Kolodge said. “Automakers also need to explain the technology to dealership staff and train them on how to demonstrate it to owners.”
Safety and repair costs
J.D. power insisted use of in-vehicle technologies has implications beyond the auto industry.
For example, analysts mentioned the insurance industry is closely tracking automotive technology for safety and financial purposes. Insurers are concerned that difficult-to-use technology may distract drivers and cause an accident.
Using smartphones instead of in-vehicle technology also creates safety issues, according to J.D. Power.
Additionally, in-vehicle technology can significantly increase claims costs for vehicles damaged in an accident.
“While some technologies, such as lane-departure warning, are making vehicles safer, the insurance industry is very concerned about the driver-distraction hazards caused by some of the other technologies," said Chip Lackey, senior director of the insurance practice at J.D. Power.
“In addition, technology drives up the repair and replacement costs. A slight bumper scrape that would normally cost a few hundred dollars to repair can catapult a claim into thousands of dollars when a park assist camera or other sensors are damaged.”
The 2015 Driver Interactive Vehicle Experience (DrIVE) Report is based on responses from more than 4,200 vehicle owners and lessees after 90 days of ownership. The report was fielded in April through June of this year.
DealerSocket announced today that Jaguar Land Rover has named the technology provider as one of the three preferred website providers for the automaker.
Via its DealerFire product offering, which was acquired by the company in January, DealerSocket will provide websites and digital marketing solutions for Jaguar and Land Rover dealerships.
“We’re very excited for the opportunity to welcome more Jaguar and Land Rover dealers into the DealerSocket family and expand relationships with current partners,” said Matt Redden, DealerSocket’s chief marketing and sales officer. “It’s great that Jaguar and Land Rover dealers have some new options, and we’re proud to be part of it.”
Before being acquired by DealerSocket, DealerFire was already a preferred program provider for Toyota and Volkswagen for websites and digital marketing, in addition to the other franchises and independent dealers that utilize the solution.
For more information, call DealerSocket at (775) 473-6622.
Inventory and website management system provider AutoCorner recently introduced its proprietary multilingual, SEO-aware VIN decoding system for its website services.
The solution currently supports English and Spanish, aiming to help its customers provide services for Hispanic customers in the United States.
“Dealers have asked for an easy way to add Spanish to their websites,” said Steven Carlson, the co-founder of AutoCorner. “With our new technology, dealers have everything they need at their fingertips.”
The system features “intricate syntax rules to produce natural diction and sentence structure,” according to the company. The system includes descriptions of every vehicle in both languages, each generated with SEO practices in mind.
A sample of the system can be viewed here.
In other related news, DataOne Software recently released a case study detailing how timely and accurate vehicle data and VIN decoding have helped Xtime’s customer retention products in the Canadian market.
According to Gerry Faro, Xtime’s director of catalog management, the data solution is of great value.
“To do this in-house would require a large investment in staff and resources,” Faro said. “DataOne delivers a valuable resource at a fraction of the cost and with a high level of accuracy.”
The VIN decoding and data solutions provided by DataOne allow Xtime clients to use targeted messaging via Xtime’s Marketing 7 product, schedule services with Scheduling 7 and upsell services with Check-In 7.
For more information about the two companies and their interaction with the Canadian market, view the full study here.
Two members of the U.S. Senate Committee on Commerce, Science, and Transportation continued their quest for automotive safety by sending a letter to a Takata executive requesting that the company “voluntarily recall all vehicles containing Takata airbags.”
This request was made by Sen. Richard Blumenthal of Connecticut and Sen. Edward Markey of Massachusetts, citing a recent National Highway Traffic Safety Administration investigation into an apparent Takata side airbag explosion in a 2015 Volkswagen Tiguan in St. Louis in June.
At the time of this writing, VW Group of America and Tesla Motors are the only two automakers in the U.S. utilizing Takata airbags that have not announced any Takata airbag-related recalls.
In the letter sent on Thursday and addressed directly to TK Holdings’ executive vice president of North America Kevin Kennedy, Blumenthal and Markey point out the specific nature of the incident as one of the major reasons they believe Takata should recall all of its airbags.
“This is the first incident reported in a VW, the first incident reported in a side airbag, and – most importantly, the first involving the newest models of Takata airbags,” the signed letter states. “This directly undercuts Takata’s continued insistence – despite growing evidence to the contrary – that the flaws in its airbag inflators are limited to prior designs in older model cars and only present when the airbags have prolonged exposure to extremely humid conditions.”
The senators request that they receive a response from Takata by Sept. 3. You can read the letter in its entirety here.
Karl Brauer, senior analyst for Kelley Blue Book, provided Auto Remarketing with the following comment on the situation.
“The senators’ suggestion that every Takata airbag should be recalled may ultimately prove wise, but it’s a bit premature to take that position right now,” Brauer said. “The malfunction of the Volkswagen Tiguan’s side airbag could indicate a larger problem, or it could have been a one-off circumstance that doesn’t represent a systemic defect across all side airbags. The problem for Takata is a history of defective airbags, which can leave even the most optimistic person wondering how wide the company’s flawed designs stretch.”
That bit of doubt in the minds of automakers is certainly apparent. In a recent report from Reuters, it was announced that Toyota Motor Corp. has plans to purchase 13 million airbag inflators from Nippon Kayaku Co., a smaller parts manufacturer in Japan. According to the report, Toyota is utilizing the second-tier source as an attempt to reduce its risk from the inflators supplied by Takata.
Akshay Anand, an analyst with KBB, also says that it’s getting to the point where these types of measures have to be taken if the problems are reoccurring.
“While recalling every vehicle with Takata components may seem like a tall task, the reality is that as the recalls expand in volume, we’re at the point where these issues need to be corrected as soon as possible,” Anand said. “Takata has been more cooperative recently than they were for months and months when the investigations started, but lives are potentially at stake. As a result, governing bodies may feel they need to be harsh or over-the-top in order to get the issue fully resolved, and it’s tough to blame them for that.”
