AutoFi has been hard at work, adding new features like AutoFi Plus onto the digital retail platform. Whenever product enhancements, updates, and upgrades are released, AutoFi’s automotive dealers experience tangible results.
This month has been no exception.
Today’s automotive dealers embrace digital retailing as a fundamental part of doing business. These dealers witness incredible results as they step towards evolving business processes for their dealerships. Financial returns continue to grow, especially as we support this evolution and roll out new platform functionality.
For example, the diagram below shows the growth in total leads per dealer.
From January 2018 through August 2019, the AutoFi platform provided automotive dealerships with over 44,000 leads and credit applications. In the same period, dealerships using AutoFi experienced an average increase of 77 leads per store.
To date, AutoFi has provided automotive dealers with over 281,817 qualified leads with 16,427 submitted credit applications- and counting.
From Boomers to Millennials, digital retailing is not a fad. It’s here to stay. Dealerships on the AutoFi platform are modernizing their business to engage the digital shopper. The financial returns continue to grow with each new step.
Driving more profit with simple math
The scenario below varies from dealership to dealership. It’s a snapshot of hypothetical financial returns for a modern dealership. It frames the impact of engaging digital shoppers.
Many factors go into the cost associated with managing a car dealership. Using simple-math demonstrates the potential for increased profitability when dealers convert AutoFi’s digital leads to sales.
According to NADA Data 2018, dealers F&I PVR averages $1,075. However, dealer’s on the AutoFi platform average $1,716 F&I PVR, representing an additional $641 gross profit on back-end products.
While numbers vary by dealerships, the gross profit per sale in the example below is conservative for most new and used car vehicle sales. If dealers convert AutoFi leads at 16%, they improve F&I PVR by $10,256 each month, representing a $123,072 F&I PVR annual boost in profitability.
Even if the numbers come from the back of the napkin musings, it’s clear that automotive digital retailing has a significant financial impact. More importantly, these numbers will improve as new features are added to the platform, and dealers improve their AutoFi lead conversion rates.
Capture The Digital Shopper
Today’s digital shoppers can easily visit online competitors, and they will. This is especially true for businesses like Carvana and Vroom that sell cars online or via an app, without the overhead of running a brick-and-motor dealership.
Digital shoppers are a new subset of shoppers. Not only do they represent an additional revenue stream, but a growing base of shoppers that dealers don’t want to miss.
AutoFi’s digital retailing platform keeps these online shoppers engaged with your dealership instead of searching for vehicles with your competitors.
Retail Pathways by the numbers
Last quarter, AutoFi introduced a new platform feature, Retail Pathways. It converts website calls-to-action (CTA) buttons into action-oriented conversion engines.
Dealers reported instant results. They received more online sales opportunities and sold more cars. Dealers using Retail Pathways have seen:
- 42% improvement in click-through rates
- 29% increase in leads month over month
- 34% growth of finance and credit applications
- 41 more leads month-over-month
How did this happen?
Lead generation forms automatically route qualified leads directly to the dealership’s Internet or BDC department. Sales teams receive detailed customer information and can engage by phone, email, or text message.
Retail Pathways opens the door for online shoppers to move past lead generation forms. Customizing payments, evaluating trades, and obtaining a firm credit decision can all be accomplished in under 90-seconds. Retail Pathways even adds in aftermarket products to finalize the sale.
AutoFi is committed to evolving the platform as dealers continue to take bold steps in modernizing their dealerships.
Contact your Dealer Success Manager to set up Retail Pathways today. If you’re new to AutoFi, schedule a Retail Pathways demo today.