Gerben Beck already said it, it seems like less than a year ago that we made the journey to the NADA in America. And yet, we are now a year further. The NADA is just around the corner, and with my wife Olga, our colleagues from #DCDW Stefanie van Dijk-Meenink, Gerben Beck, Gerard Franken from the Ligier Store Doesburg – Experience Center, and colleagues from Marktplaats Alexander Prinssen, Melvin Ester, and Michiel Aker, we boarded the plane!

In the meantime, I have been a shareholder of Carmen Automotive BDC for two years, a call center with a singular mission: to improve online customer contact in the automotive industry! Together with my fellow shareholders Remco de Vette, Koen van de Laar, and Patrick Franke, we are making significant strides in customer contact! Of course, this wouldn’t be possible without our operational director Jeffrey Silva!

Selling cars involves two elements. First, you sell the car with all its options, benefits, and unique features. Of course, tailored to the customer’s needs and the ‘problem’ that is solved by purchasing that car. Many cars are already ‘sold’ or at least the chance to sell is created through effective marketing. The customer arrives at a specific used car, perhaps after viewing everything online and comparing it with other options.

Dealers and car companies need to sell cars; that’s where their focus lies. It makes sense because there is a lot of additional business involved. You have trade-ins, and you can offer maintenance, repairs, and services. Once you’ve sold a car, the business starts rolling.

If you sell a lot of cars of a particular type, you want more of those cars to sell faster and more. And for that popular model, you always give extra attention.

To get straight to the point, if you, as a salesperson, dare to respond like in the image below, then you are worth nothing. Perhaps as a writer, but not as a salesperson who tries to make something out of every opportunity…

Being consistent requires discipline, and I realize this as I write this column on an early Thursday morning. This year, too, I have had the opportunity to write an article or a column every week about online automotive, the industry, leads, marketing, and other topics that occupy my mind.

I can hardly wait for 2024! Because lead follow-up will be crucial in the coming year as well; we need to maximize our efforts with online and telephone leads. Forget about the past two years, when ten buyers would walk into the store for that one car. Many sellers who started during that period, experiencing only those years, will have to fight for a deal, and there’s nothing unusual about that!

Tesla, known for minimal marketing spending, is venturing into automotive portals to sell its increasing inventory. Despite substantial price reductions, Tesla aims to clear its stocked cars. New Teslas are advertised on portals like Cars.com, marking a departure for the brand. In the Netherlands, where 16.7% of buyers use Marktplaats, OEMs benefit by showcasing new car stocks on these platforms. Visibility and recommendations on Marktplaats generate over 30% of leads, proving the effectiveness of online listings. Tesla’s move aligns with changing market dynamics, emphasizing data-driven investments in portals for positive outcomes based on various metrics.

A dealership faced challenges after prosperous years in used car sales, experiencing a significant loss. While service and new sales thrived, used car issues arose. Lax practices and extended holding times (91 days) contributed to financial concerns, exacerbated by low conversion rates. Cutting marketing isn’t the solution; instead, dealers must enhance sales processes and target new customers. The importance of maintaining at least a 13% conversion from leads to sales is emphasized. Overcoming challenges requires a proactive approach, focusing on efficient sales efforts and collaborative efforts with marketing to ensure long-term success.

In response to rising interest rates, dealerships focus on reducing Days in Inventory (DII) to cut significant costs. Brian Benstock suggests a seven-day optimal window for selling used cars, challenging the belief in a 60 to 90-day acceptable DII. Carmax’s success with a 28-day turnaround highlights the need for efficient processes. Recent NADA studies reveal the average daily cost to an American dealer for keeping a car in inventory is $86, emphasizing the importance of selling faster to avoid substantial expenses. Investing in marketing, especially during the initial 30 days, proves essential to avoid discounts and financial losses associated with extended turnaround times.