Auto dealers will spend more effort closing used-car deals, but also see more action and profit on that side of the business during Memorial Day’s upcoming extended weekend, if recent history is a guide.
Customer-relationship management software provider DealerSocket pulled dealer clients’ CRM data from 2014 Memorial Day activity to foretell what might happen this time around.
Auto sales typically are brisk during the spring holiday period, with dealers seeing many serious shoppers. Nearly 90% of inbound phone leads resulted in appointments last year, says DealerSocket.
On average, it took more follow-up phone calls (2.6) to close a used-car sale than a new-car sale (1.8).
More appointments were set to test drive used cars (35%) vs. new cars (20%).
Appointment confirmation, show-up and sold rates were almost identical:
54% for new cars and 53% for used.
Profit margins averaged $2,152 for pre-owned vehicles and $1,360 for new.
Small-car brands had some of the highest close rates last Memorial Day weekend, with Scion leading the pack (66%) followed by Fiat (56%) and Mini (53%).
