Why CPOs Are the New Car Of Choice For Many Women Car Buyers

Posted: October 15, 2012 by Anne Fleming, Car Buying Advocate

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The year is coming to a close and the used car business has had two of its best years. Dealers who want to continue to reap the benefits of this trend in 2013 are developing sales and marketing efforts around women, as they are now consuming $300 billion at new car dealerships. These sever topics should be a part of every sales discussion:

1. CPO Cars Lower The Risks Of Buying A Used Car & Avoid New Car Depreciation

When it comes to car buying, women don’t want to take risks. They want smart cars that are safe and reliable and stylish. CPO vehicles eliminate a lot of risks and provide better value, offering customers new car quality and assurances. Women feel they are getting a like-new car with new car-like peace of mind and they have the assurance the car won’t depreciate the instant they drive the car off the lot. These vehicles also help women save on auto insurance rates vs. brand new 2013 or 2012 vehicles.

2. CPO Cars Allow Women Car Buyers To Own Cars They Could Not Afford New

With a CPO vehicle, women are often able to buy a luxury vehicle or a sport utility vehicle they otherwise could not afford. Also, at our site, women rated what influenced them most when purchasing used cars. Aside from price, their top three responses were: a) the reputation of the brand and model of the car, b) the style and design of the car and c) the service they receive from the dealership.

3. A New Level of Trust & New Digital Tools

So these customers can’t fill out a CSI form, but they sure can write reviews. Ask them to write a review and use an incentive in the way of a discount or coupon on future service work. This increases her using your service lane in the future. According to DME Automotive, only 23% of any given dealership’s customers are true ‘loyalists‘ in the service lane, so develop a drip marketing program specific to your CPO buyers, rich with coupons, discounts and value-add offers that are rewarding to gain her trust and her business.

Concierge vehicles, more evening hours, child play areas, and wifi are a must for the attention and retention of younger CPO customers. Other technology tools that really go a long way in building service sales are web‐based tools to “visually explain” repairs. ClearMechanic.com is helping dealerships with this “proof‐based” technology that has a 20‐40% success increase on additional service recommendations. Why? It’s simple. Real-time photos and videos reduce, and even eliminate, skepticism. A picture is worth 1,000 words. What emerges is a new sense of trust from your customer.

4. CPOs Offer Quality Assurance But One Worth Paying

In the same study by AutoTrader.com and Morspace, it was found that car buyers are willing to pay a premium, or an average of $1380 more for a CPO vehicle compared to a used, non-certified one. When purchasing CPOs, women expect a thoroughly inspected vehicle with a solid detailed history of where it’s been and what it’s been through. While these cars cost more, the quality assurance is a big selling point with women, who are looking for reliability as a top feature in a vehicle.

5. Factory-Certified Warranties Offer Peace of Mind

Women want peace of mind and little headaches or hassles when it comes to repairs and maintenance. With all CPO vehicles getting a multi-point inspection and all of the repairs necessary to certify them, women appreciate that a manufacturer’s certified vehicle program is more reliable, can be used anywhere in a given city or the country. This is another measure of peace of mind that is appreciated by all women, especially mothers with children. Having access to quick service is one less thing to worry about.

6. CPOs Offer Low Financing Rates For Qualified Buyers

Often times, women buyers run into problems with their banks and financial institutions charging higher interest rates on used cars compared to new ones. Typically, dealerships can be competitive and flexible with their financing requirements with women car buyers who qualify. The savings can be significant. If your rates are competitive, use this as a selling point.

7. CPOs Offer Many Of The Same Perks As A New Car Offers

Many women adhere to a budget and want to make sure they are getting the best deal for their money. They will respond positively to the incentives offered with a CPO vehicle. Most all car manufacturers and/or dealers offer good warranties and financing incentives, but can offer a lot of other benefits, too. These types of benefits include free oil changes, 24 hour roadside assistance, free car wash, concierge vehicle if the car is being serviced overnight.

Work these selling points into every sales conversation. According to Women-Drivers.com, two-thirds of women shop at multiple dealerships before buying. If a women prospect is in your store, she is interested at some level. Why have her go anywhere else. Increase her interest by increasing the “what’s in it for her” factor and make your dealership her last stop.

Connect with More Women Drivers:

Communicate tangible value-adds in your advertising.

If your store provides overnight loaner cars, include this in your messaging. It’s the #1 concierge item requested by women.

A confident, pleased buyer who writes a great review of her experience can influence countless other women to follow her lead.

Ask, track, and always respond to reviews.

Reviews are 3 times more influential than advertising when women buy a car.

Women want to read others’ experiences to help verify what dealerships to visit. Showcase these valuable testimonials on your home page or their own navigation section to build trust and credibility – don’t hide them in ‘About Us.’

One Size Does Not Fit All.

Step back and ask, who does your advertising really speak to?

Women are looking for connections with car dealerships.

Enhance your advertising by investing part of your ad dollars into what’s in it for her. Include dealer reviews and ‘Dealer of the Year’ awards. Remember to also sell your dealership, not only cars.

Never miss a simple action to upsell your store.

Offer a 3-minute tour, share about extended service center hours, mention that you offer overnight loaner cars, and give a free car wash coupon. Always look to surprise and delight.

Develop relationships with online guests.

Provide informative, helpful content in your BDC email response as well as link to reviews highlighting authentic consumer experiences.

76% of women rated their dealership’s website 3 out of 5 stars.

As the first point of engagement for customers, be sure your website represents your brand well, conveys trust, is welcoming, and contains educational content that adds value.

The #1 digital resource women use when buying a car is the dealership’s website.

Include images of women throughout your digital assets and online marketing campaigns.

It takes more than having a female spokesperson to market to women.

The #1 reason women choose to buy is TRUST which requires implementing new behaviors, attitudes, processes, and messaging.

Make your dealerships a welcome destination for all customers.

Always greet your customer through active listening, use empathy and understanding, and taking an interest in what they need or want – even if it’s outside the car purchase.

Include informative, engaging content on your website.

It helps build trust and ensures guests get value from your brand.

Behavior Economics demands tracking when your customers fall off.

Dealers with outdated behaviors and attitudes are losing traction with women in this competitive industry.

Measure and track the number of women leads and buyers each month.

You can’t grow what you don’t know.

Create the right conditions for the sale on the first visit.

Ask questions, listen, and get to know the customer. Never interrupt and don’t assume. Consider there won’t be a second visit.

Dealers need to shift the paradigm to effectively engage, market and optimize sales to women.

What is your Trust Dashboard with this market?

53% of millennial car buyers are women. Almost 4 in 10 women are the breadwinners in their family.

How is your current and future customer demographic represented in your front line team?

Crack the code by turning reviews into real-time data to make yours the go-to store.

Our platform collects unprecedented pre- and post-purchase analytics about what your #1 buyers want and prefer from participating dealers.

Transform your messaging and make the showroom more customer-centric.

92% of reviewers choose to opt into a 25-question survey summarizing their visit. This unbiased data is available in predictive analytics WSI (R) Dealer Data reports chronicling what these buyers want and experience.

Game-Changing Predictive Analytics.

What women want at the dealership has predominantly been an absent dialog; those statistics and conversations have generally been national. Dealers now have access to their own proprietary data through our platform. This provides leaders at each business the ability to have honest insights allowing for predictive awareness of behaviors, preferences, and experiences.