As your shoppers start their car buying journey, and when it comes to knowing how much they can afford, they typically fall into two categories. What’s More Important? The Car or The Monthly Payment?
With new and used car prices that keep getting higher, and with interest rates the highest they’ve been in a long time, which vehicles your customers can afford will be top of mind for your customers when they hit your website.
Or…they just really know the car they want and have their fingers crossed that they can stomach that monthly nut.
In a nutshell, that’s really the two customer segments we’re talking about.
- Those who want to browse your inventory by how much monthly payment they can afford;
- Those that know the car they want, and want to quickly see their estimated monthly payment.
Both of these can be a challenge to accommodate for a lot of reasons, especially if you’ve got no idea what the customer can qualify for.
There are really sophisticated and lengthy approaches for doing this, aka digital retailing.
There are also really lightweight and simple approaches, aka what TradePending does with our Payments product.
The lengthy approach will create a small percentage of super leads catering to buyers in the final stages of their research.
The lightweight approach caters to all buyers, and will move that big chunk of early stage buyers a little bit farther down the car buying road.
FAQs
What are the challenges associated with accommodating both customer segments?
Challenges associated with accommodating both customer segments include the need to balance simplicity and sophistication in the car buying process. Dealerships may encounter difficulties in accurately assessing customers’ financial qualifications or preferences, particularly if customers have not provided this information upfront. Additionally, ensuring that available tools and solutions cater to both early-stage and final-stage buyers requires careful consideration of usability, functionality, and integration with dealership systems.
How do lengthy approaches, such as digital retailing, differ from lightweight approaches, like TradePending’s Payments product?
Lengthy approaches, such as digital retailing, typically involve comprehensive processes that guide customers through various stages of the car buying journey, including vehicle selection, financing, and completing transactions online. While these approaches may yield a smaller percentage of highly qualified leads, they cater primarily to buyers in the final stages of their research. In contrast, lightweight approaches, like TradePending’s Payments product, focus on providing quick access to essential information, such as estimated monthly payments, to all buyers. These approaches cater to a broader audience, including early-stage buyers, and help move them further along the car buying road by providing valuable insights and facilitating decision-making.