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AUTOMOTIVE ADVERTISING & MARKETING

Vehicle Satisfaction Awards

2014 Vehicle Satisfaction Awards Are Out

The 18th Annual Vehicle Satisfaction Awards have been handed out, and among the big winners are Lincoln and GMC, voted the two highest-rated brands. (Lincoln was tops in the premium category, while GMC took home top honors in the “Popular Brand” category. Meanwhile, the Mercedes-Benz S-Class posted the best overall score. The Vehicle Satisfaction Awards […]

Radio Advertising Audience

Knowing Your Radio Advertising Audience Means Best Results

You must know your radio advertising audience when you design an automotive advertising strategy. If you don’t, it’s a bit like blindfolding yourself before you start throwing darts at a dart board. You may hit your target every once in a while, but most of the time you won’t even come close. The end result […]

Vehicle Recalls

Vehicle Recalls Present Opportunity to Shine at Dealer Level

Vehicle recalls are coming in at a fast and furious rate. Prior to a recent announcement of five concurrent Toyota recalls totaling 6.4 million vehicles, a recent Los Angeles Times article pointed out that about 11 million vehicles had been recalled in the United States so far this year. Your first thought very well could […]

Long Auto Loans

Will Long Auto Loans Have Long-Term Impact on Auto Industry?

Long auto loans are becoming the norm, but so far this does not seem to be a chief concern among automotive dealers. Despite personal incomes not going up much, the average transaction price for a vehicle is rising (typical amount financed is an all-time high of $27,612) … and sales volume is going up, too. […]

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Take Advantage of Tax Season
January 21, 2025

Tax season presents a unique opportunity for dealerships to boost sales and attract new customers. With many individuals receiving tax refunds, it’s a prime time for car buyers to invest in a new or used vehicle. Consider this: Research indicates that 10% of people expecting income tax refunds allocate them for vehicle-related purchases!

Automobile dealers who strategically market their stores during this period can significantly benefit from increased foot traffic and higher sales volumes.

1. Increased Consumer Budget
For many prospective buyers, a tax refund represents a financial windfall. In many cases, the average tax refund is often substantial enough to cover a down payment on a vehicle. This provides car dealers with an opportunity to tap into a motivated customer base looking to make large purchases. By offering attractive financing options and promotions, dealerships can convert these potential buyers into satisfied customers.

2. Leverage Marketing Opportunities
To get more than your fair share of these shoppers, you must advertise enough to make a positive impression. By doing this, you make sure your dealership is top-of-mind with everyone in your community who may be in the market for a car. When you are No. 1 in the hearts and minds of those in your market, you will reap the rewards.

3. Clear Incentives for Trade-Ins
Another powerful incentive during tax season is offering increased trade-in values. Many customers are eager to trade in their old vehicles for a newer model, and tax refunds can make this transition more feasible. By highlighting competitive trade-in offers and demonstrating how they can lower monthly payments, dealerships can build rapport with customers and close deals faster. Some dealers offer a “we’ll double your tax return for your down payment” special; others will even go as far as preparing customers’ tax returns at the dealership for extra motivation.

The Takeaway
Tax season offers car dealerships a chance to tap into a motivated market. By offering promotions and targeting the right audience with the proper reach and frequency in their advertising efforts, dealerships can make the most of this lucrative time of year.

JKR Automotive Advertising: We Move Cars.

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Post-Pandemic Dealer Gross Profits are Down – But They Don’t Have to Stay There!
March 13, 2024
It is no secret that dealer gross profits per vehicle are down sharply in the post-COVID automotive world. According to a recent article in Automotive News, gross profits of the six largest publicly traded dealership groups plunged significantly from Q4 2022 to Q4 2023. One of them was actually down 35% per vehicle!

The article explains: High interest rates, more expensive vehicles and a steadier post-pandemic supply chain continue to soften demand and bring it closer to pre-pandemic levels. Still, new-car buying has remained strong overall …

This means that, while sales volume is similar, overall bottom lines are lower for many dealers due to the reduced gross profits. What about your dealership?

Being Realistic
It’s time to turn the page! The time for dealers to simply be order takers for people willing to pay MSRP for a vehicle (and in some cases more) has passed and dealers have to work hard once again to achieve acceptable gross profits.

Selling a high volume of cars doesn’t control gross profits, no matter how much you wish this was the case. Correct processes and menu pricing – and strict adherence to them – do!

What kind of processes?
∙ Slow down the transaction! Your sales staff has to once again sell the customer on the features and benefits of every new and pre-owned vehicle on your lot.

∙ Your salespeople and managers should devalue the customers’ trade-in value (politely, of course) as much as possible. After all, if the customer expects you to lower your price, shouldn’t you be able to do the same on their trade? Remember, you’ll have to fix it up, put your name on it and resell it to someone else with all the tenacity you would a brand-new car. So make sure you buy it right … because the profit is made when you buy it, not when you sell it!

∙ To that end, management should be ready and willing to leave the desk and do thorough walk-arounds on each trade to ensure the best outcome for the dealership.

The Cure for Low Gross Profits
If you are like a lot of dealers these days, you could use some good news. Here it is: while you may not have the capability to achieve profit margins similar to those you enjoyed during the pandemic, they could likely be improved. JKR’s clients enjoy the benefit of attracting not only more customers, but better ones, too!

If meeting and exceeding your sales goals (and increasing gross profits at the same time) sounds great to you, you need to call us. Don’t settle for reduced gross profits when help is out there to get you closer to where you’d like to be.

Want to know how we do it? Reach out to Senior Partner Richard Brauns (407) 701-4233 or Partner/Vice President Jon Albert (407) 718-2494 today.

JKR Automotive Advertising: We Move Cars.

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