All posts by Trish Radaj

As we head into 2022 there continues to be heightened interest in auto auctions. Experian has observed a little cooling in auction activity in some parts of the western U.S., but the Central, Eastern and Southern geographies continue to see high unit activity, as depicted in the chart below.  Let's take a look at how vehicle history data can help consignors make more informed decisions before auction. (Click here to access these insights directly). Review vehicle history data before auction assignment During this current climate, you can make the most of every auction (whether physical or digital) by reviewing vehicle history data before assignment. Have you ever brought inventory to a physical auction only to realize the vehicle had issues you didn’t know about?  This can catch consignors off-guard and prove costly. So, how can you take advantage of vehicle history reports to help make better purchasing decisions? Vehicles with damage aren’t a lost cause, but rather consignors need to be strategic about where they send damaged vehicles to auctions to ensure the sale and maximize the sales price. A little extra research can help uncover hidden issues and vehicle damage. Vehicle history reports reviewed prior to auction assignment can assist consignors in uncovering vehicle damage and determine if the vehicles are appropriately priced to move before locking in their auction location. A quick review of the vehicle’s history report for major state title brands can reveal areas of concern and will also show other major problems, such as accidents, damage and total insurance loss. If damage or a major concern is uncovered, consignors can proactively evaluate the auction assignment.  For example, the vehicle might have a better chance at selling in a hotter market like the Central, Southern, or Eastern U.S. than in a Midwest market. The key is to always know before you go by taking advantage of region and channel data to help ensure the most profitable sale. “Know before you go and tell before you sell,” says Joe Miller, VP of Client Experience at AutoIMS, the popular inventory management platform serving auctions and commercial consignors. “We continue to hear how vehicle history is influencing decisions not only about which auction to send the car to, but what repairs to perform, how best to floor price the car, and how to represent it in the lane. A new era of data-rich transparency is upon us in auto remarketing, and those tapping into the VHR will ultimately save time and make more money as they improve their reputation in the lanes.” By leveraging the Experian AutoCheck Vehicle History Report, consignors have quick and easy access to information that can help them make more informed, profitable decisions. To become an AutoCheck Vehicle History Report subscriber, sign up today.

Successful salespeople know that their busiest time is never when they are selling a lot of cars. They are way busier when they are not selling! The act of prospecting, following up, and consultatively selling is a time consuming and challenging process. Nevertheless, for salespeople, this pattern can lead to long term success in automotive sales. Until the inventory and chip shortage issues are resolved, you may find that you are busier than ever. You can no longer wait to greet shoppers as they walk into the show room and spend time chatting and test driving in hopes they will purchase a vehicle the same day. Floor traffic has been on a steady decline for a decade and with today’s vastly reduced inventory there is vastly reduced foot traffic. This does not mean that you should not or cannot sell cars. It means that your time should be filled with prospecting, following up on marketing leads and focusing on the dealership’s loyal customers. Focus on strategies that drive pre-orders In addition to prospecting activities, you will need to be extra resourceful during the sales process. For example, when the dealership does not have a specifically requested car on the lot, you should shift focus from the standard sign-and-drive approach to a focus on pre-ordering vehicles. Pre-orders can be attractive to customers because they give them the ability to create a new vehicle according to their color, options, and other preferences rather than settling for whatever the dealer has in stock (which right now is minimal at best). Experian’s Automotive Intelligence Engine™ (AIE), a fully customizable suite of marketing solutions can provide you and your dealership with the data insights necessary to find consumers who would be interested in your brand and models and who are in an equity position to facilitate a pre-order. Here are a few examples of how AIE helps dealers find likely pre-order consumers: Scenario: A Mercedes dealership would like to secure pre-orders and generate interest in vehicles for when inventory becomes available in 2022. Utilize AIE’s Market Insights to find lifestyle and demographic information to find consumers with a high buying propensity to purchase a luxury vehicle. Use AIE’s Audience Targeting to learn who of those consumers are in a positive equity position. Identify consumers who are likely to buy your models based on their prior purchasing history. Using marketing solutions to help find the right consumer now to create interest in the future could be the key to success in 2022. Focus on short term leases opportunities In today’s market, we also recommend dealers focus on targeting consumers who are nearing the term of their lease—because the end of a lease forces consumers to either turn in the vehicle or purchase it. In many cases, the customer can upgrade to a model with more features or a model in a different class—both of which may be compelling, even if the newer vehicle is an older model year than the trade in. This way, the dealer obtains the later model, lower mileage vehicle and the customer gets a model with the extra features they want or an entirely new class of vehicle. The Automotive Intelligence Engine can provide dealers with near term lease consumers in their area for all brands. For an in depth look at this topic, read our November blog “Using Data Insights to Focus on Near-Term Lease Sales Opportunities.” Learn more about Experian’s Automotive Intelligence Engine.

There are over 280M cars and light duty trucks on the road and over 25% have at least one open recall. Do you know which of your online units have an open recall? Would it be helpful to your business if you had up-to-date recall information available every day—automatically? AutoCheck® dealerships can receive an emailed daily Open Recall Inventory Check Report as part of their AutoCheck subscription. The report (PDF format) will show dealers which of their online listings have an open recall. The report will list inventory that has open recall(s) based on pre-owned vehicles the dealer has listed on AutoCheck.com. Having an easily reviewable report delivered to your Inbox is a great way to stay on top of internal recall policies and procedures. Taking care of open recalls is good for business Taking action on recalls is also good for business. Consumers searching your online inventory want transparency from their dealer and running across a vehicle that has an open recall may not be in the dealer’s best interest. Taking care of that recall and ensuring that a consumer doesn’t stumble across it during the purchase process is good for consumer loyalty. Another AutoCheck dealer benefit is the option to list pre-owned inventory on CarZing and AutoCheck.com for no additional fee. AutoCheck is the exclusive vehicle history report provider on CarZing.com, so the CarZing vehicle details page will display both AutoCheck data elements and provide a link to the full AutoCheck report. Any AutoCheck dealer displaying their inventory on CarZing will automatically have their inventory available via the “Finding Vehicles” search features on AutoCheck.com. (Yes, you read that correctly – dealers can list their inventory on CarZing and AutoCheck.com for NO additional fee – it’s part of their AutoCheck subscription!) In addition, any dealer listing their inventory on AutoCheck.com can also receive the AutoCheck Open Recall Inventory Check report.  Please note that Experian provides the AutoCheck Open Recall Inventory Check Report based upon recall information reported and made available to Experian by the applicable automotive manufacturer(s). Clients should check the automotive manufacturer’s website for the most current recall information for all inventory vehicles. For dealers with an AutoCheck subscription, you can activate your vehicle listings for free on AutoCheck.com and CarZing.com, by calling client services at 1 888 409 2204. For dealers that are not yet subscribers, here’s a few other things you may not know about AutoCheck Vehicle History Reports. We do not re-market to shoppers, resell VDP leads or offer your competitors inventory for consideration on AutoCheck.com. Our goal is to help your dealership sell your inventory. For dealers who are interested in learning more about the benefits of becoming an AutoCheck subscriber contact us today.

While dealers wait out the chip shortage, many are looking for new revenue streams and creative ways to maintain profit levels. Dealers understand that used vehicles are more valuable than ever and that savvy consumers who are near their lease term can purchase their vehicle with a much higher book value than their negotiated residual and capitalize on that extra equity. At Experian Automotive, we help dealers analyze consumer and market data insights so they can develop marketing strategies that more effectively engage consumers. In today’s market, we recommend dealers focus on targeting consumers who are nearing the term of their lease—because the end of a lease forces consumers to either turn in the vehicle or purchase it—and many consumers realize they can purchase their equity rich vehicle and trade it in anywhere. Dealers desiring to conquest customers would benefit from using data insights to develop marketing strategies to help educate consumers of their options. So, how do dealers make sure their lease customers remain loyal to their dealership? One way is to target those customers that are near term and recommend a trade in. In many cases, the customer can upgrade to a model with more features or a model in a different class—both of which may be compelling, even if the newer vehicle is an older model year than the trade in. This way, the dealer obtains the later model, lower mileage vehicle and the customer gets a model with the extra features they want or an entirely new class of vehicle. Both parties are happy. What about third party lease buy outs? In response to the inventory shortage, many captive lenders are no longer permitting 3rd party lease buy outs. In other words, consumers are required to purchase their leased vehicle at an in-brand dealership. Initially, this would appear to bolster brand loyalty by making it more challenging to switch brands. However, educated consumers know they can simply purchase the vehicle and drive it to another dealership as a trade. We recommend automotive dealers educate consumers on their options through effective marketing strategies that offer options and more freedom in their car purchasing. Dealers looking for every sales opportunity are utilizing data sources such as Experian’s Automotive Intelligence Engine™ (AIE) to identify all consumers with leased vehicles for their brands. Because the OEM will not share lease customer information for neighboring stores, dealers must seek out this information on their own. Experian’s Automotive Intelligence Engine provides off lease consumer information for conquest brands as well as dealer brands. The OEM still expects each store to be successful and using data-driven insights to uncover opportunities in this tight market is one critical way dealers can stay competitive and increase brand loyalty. The chip shortage will eventually recede but until then dealers can use automotive data insights that can help them remain profitable. Learn more about Experian’s Automotive Intelligence Engine.

As more consumers turn to the internet to research and purchase preowned vehicles, dealers have focused marketing efforts to the online marketplace to get their vehicles in front of shoppers. According to Think with Google, 95% of vehicle buyers use digital as a source of information and it takes 65% of buyers just three weeks to research vehicles online prior to purchase. With seventy-eight percent of consumers visiting two or more sites during their shopping “journey”1 how do dealers capture their attention, increase lead and sales conversions? Dealers need to share key data in a vehicle history report such as information related to reported accidents, odometer readings, open recalls, and whether the vehicle qualifies for buyback protection. These details help consumers better understand and make informed decisions when shopping. Case Study: How leveraging the AutoCheck VHR subscription increased lead and sales conversions Our integration partner, CarZing, an online auto shopping portal, offered a Free AutoCheck® Vehicle History Report on their Vehicle Detail Page (VDP) which increased lead and sales conversions. Together, we analyzed six months of lead activity on millions of vehicle listings on CarZing focusing on the 200 most popular vehicles by year/make/model. Key findings indicated that vehicle listings offering a Free AutoCheck VHR on the VDPs achieved a higher lead conversion rate than listings for the same year/make/model for vehicles without a Free AutoCheck report. Here’s a few highlights from the full report: Furthermore, when layering in available sales data, sales conversion is higher for vehicles featuring a free VHR available to consumers than vehicle listings that did not. Based on the results, CarZing’s Director of Operations, Frank Merle strongly encourages all AutoCheck clients take advantage of the exponential value that offering a free AutoCheck report brings to dealership VDPs. Dealers with an AutoCheck subscription can list their vehicles for free on AutoCheck.com and CarZing.com. Simply contact your Experian account executive or call 1 888 409 2204. For dealers that are not yet subscribers, here’s a few more things you may not know about Experian AutoCheck Vehicle History Reports. We do not re-market to shoppers, resell VDP leads or offer your competitors’ inventory for consideration on AutoCheck.com. Our goal is to help your dealership sell your inventory. For dealers who are interested in learning more about the benefits of becoming an AutoCheck subscriber contact us today. 1https://www.coxautoinc.com/wp-content/uploads/2021/02/Cox-Automotive-Car-Buyer-Journey-Study-Pandemic-Edition-Summary.pdf

Although 2021’s continued focus is Americans learning to co-exist with COVID-19, automotive manufacturers and dealers will likely remember 2021 as the year of the chip. The semiconductor chip shortage is now expected to cost the global automotive industry $210 billion in revenue in 2021 and it is now forecasted that 7.7 million units of production will be lost in 2021, up from 3.9 million in the May forecast.1 Most experts agree that the shortage will likely extend into 2022. Chip Shortage Creates Additional Challenge for Dealers The current shortage in semiconductors has automotive manufacturers and dealers questioning whether to continue advertising or pull back. Some dealers view the increase in profits due to reduced inventory a signal to pull back on advertising spend. Other dealers, however, are thinking about long-term marketing strategy—and are continuing to advertise to help maintain brand exposure to customers. Foreword-thinking dealers and agencies should use this time to evaluate advertising strategies and plan for life after the chip shortage. Staying visible to customers in the interim is critical, so any advertising needs to be strategic in audience, medium and message. Here are three recommendations to help keep your brand in front of current and future consumers while using marketing dollars wisely. Identify Your Audience: Be Sure to Market to the Right People Knowing which consumers are most likely to purchase your vehicles is a key element of targeting with the promise of saving money by marketing only to those who are most likely to result in a sale. By evaluating prior purchase, demographic, and psychographic trends, including specific life events, dealership marketers can more effectively pinpoint demand as well as foster positive relationships. For example, knowing that a consumer recently added a new child to the family would be a great reason to send a coupon or make a call. Experian’s Automotive Intelligence Engine™ (AIE) will send “events” to your CRM to alert you of life events that can help develop and deepen relationships that lead to future vehicle sales. Additionally, AIE’s Market Insights enable dealers to grow market share by identifying the best prospects and matching them with the right messages. Strategically targeting both conquest and loyal customers with appropriate messaging keeps consumers engaged so they will remember your brand when they buy next. Leverage Your Brand Reputation Keeping your brand front and center has been the cornerstone of your marketing efforts and that shouldn’t change. Much like looking at family photos or reading an article about your favorite team, exposure to positive advertisements reinforces a consumer’s relationship with your brand. Whether the goal is to leverage your OEM driven brand awareness or support the consumer relationship with your dealership, positive messages from local dealers perpetuate ongoing loyalty. Experian’s Automotive Intelligence Engine generates powerful marketing strategies and efficient data-driven, omni-channel media plans with engaging, brand-specific messaging direction that resonates with consumers. Dealers and agencies use AIE to generate custom marketing plans that leverage data-driven market analysis, strategic audience creation, and powerful marketing strategy, creating messages that effectively reach the right prospects, with the right message, on the right channel. This end-to-end solution will reach consumer mailboxes, inboxes, screens, and computers where your best audiences spend their time. Continue to Foster a Positive Relationship with Consumers Marketing is more than selling a story.  Marketing initiates the consumer experience, especially in the digital world. From effective OTT ads to strategic social posts, successful dealerships often put their relationship with the community at the heart of their message. Simple images of your dealership delivering meals to local first responders and essential workers or posts showing the local high school marching band loading instruments into one of your trucks can convey a strong sense of community pride to your brand.  This sort of promotion impacts future consumer purchases well beyond any chip shortage. While the chip shortage has had a profound impact on how dealerships approach vehicle acquisition, price structures and marketing, it will eventually be resolved. The decisions you make now can have a big impact on your success when the shortage ends. Learn more about Experian’s Automotive Intelligence Engine™ (AIE). https://www.cnbc.com/2021/09/23/chip-shortage-expected-to-cost-auto-industry-210-billion-in-2021.html