Who Are Payment Buyers?
Drive More Sales by Reaching Out to Payment Buyers
Over 91% of vehicles sold are financed, according to CNW Market Research. The car payment is part of the individual or family budget! New car advertising promotes special financing using attractive monthly payments. The Internet is being used by more and more car buyers of all ages! These are all known facts in the automobile industry.
Experienced sales and finance individuals deal with the payment buyer on a regular basis at the dealership trying to find the right vehicle within an affordable price range for the buyer. As Internet activity grows in the pre-owned vehicle marketplace –over 64% hitting dealer sites while shopping for a used vehicle according to a recent J.D. Powers study–there are payment shoppers in this mix.
Industry publications and consultant articles have indicated there is growing consumer confidence in purchasing a pre-owned vehicle because of improved manufacturer quality, certified programs; and better disclosure of vehicle information through pictures, videos, chat sites and educational sites. Buyers of all ages are searching either for specific vehicles or vehicles that fit their budget and in many instances they are unable to get clear pricing on a vehicle and/or obtain estimated payment on a car or truck.
Today’s buyers are looking to maximize their spending dollar and in many cases they want to be able to move to the next hottest item. Is your website offering your potential customer all of the different purchasing options available to them? You may show them the vehicle price, but are you giving them the opportunity to review other buying options available to them. Less than 10% pay cash for their vehicle so they should be made aware of other funding options such as lease payments. By providing the payment buyer with a lease payment you may trigger the buyer to contact your dealership to discuss interest in a specific car, SUV or truck.
Why is leasing attractive to payment buyers? Here are a few reasons according to a recent CBS news report . . .
- Less Upfront Cash: Most leases require a smaller down payment than for a purchase which makes the car or truck they want more attainable and frees up ash for other things.
- Lower Monthly Payments: Because they only pay for the portion of the vehicle they use payments are typically lower than a typical loan
- More Car, More Often: The buyer can get more car for the monthly payment and they can select the length of the lease so they can move to another vehicle in 24 months or longer.
- Lower Sales Tax: In many states, the buyer only pays sales tax on the monthly lease payments, instead of the entire value of the vehicle.
- Fewer Maintenance Headaches: Many buyers lease for a term that coincides with the length of the manufacturer’s or transferable warranty. This ensures the vehicle is always covered under the warranty.
- Convenience: The buyer does not have to worry about selling their used car or they can elect to buy it for the residual value at lease end.
What is the upside for the dealer?
- Differentiate your web inventory to entice the consumer to telephone or contact your sales department.
- Increased telephone activity from interested buyers.
- Sell more vehicles at list price.
- Opportunity to interact with the payment buyer to facilitate a lease or purchase.
- Develop repeat customers when the current lease expires.
Payment buyers in most instances contact a dealer because they are interested in upgrading the quality of car they drive. This applies to new and pre-owned vehicles, but in many instances the buyer is not aware that they can lease a pre-owned vehicle, which means it is a relatively untapped consumer niche that should be addressed.
How can your dealer website have a competitive edge? Post monthly payment options on late model vehicles next to the list price on your website inventory. You might say “Simple solution, difficult process!”
Yes, in the past it was difficult, time-consuming paper shuffling process for dealers to place payment information and necessary disclosures in both print and Internet advertising, especially related to pre-owned vehicles. This process can be simplified by using the autoLeaseAD.com lowest payment advertising service – we provide fully disclosed lease payment information that is updated daily based upon your dealership’s qualifying inventory targeted to the payment buyer consumer.
We have removed the “difficult” in calculating low lease payments for the sales staff and created an advertising inducement for the consumer to contact your dealership to discuss their vehicle and payment interests. By making a telephone call to your dealership, the sales process of finding the right solution – lease or purchase – is now in the hands of the sales person and no longer a continued Internet search!
