Friday, June 10, 2016

Car Price Remains Important, But Not at All Costs

Price remains important to car buyers. Jared Rowe readily notes that. “At some point, price has to factor in,” says the president of Cox Automotive’s Media Division, which includes Autotrader, an online automotive marketplace, and Kelley Blue Book, a vehicle-pricing provider . But citing results of a new Cox study, Rowe says, “Low price and transparent or fair price are the same in the consumer’s mind.”

That’s significant, he says. “We think this is a big deal. It means it doesn’t have to be about continuing profit margin pressures,” an effect on dealers competing solely on price.  

In this case, “fair” pricing means competitive pricing, or being in the game. If an online shopper is doing a lowest-to-highest price check on a vehicle, dealers appearing on the fifth or sixth web page of search results essentially are sidelined.   

“If pricing isn’t in a specific range, it isn’t perceived as fair,” Rowe tells WardsAuto.

Transparent pricing means, among other things, what customers see online and elsewhere is what they get at the dealership. Transparency reflects openness and consistency across marketing and sales channels....

Read the entire article courtesy of WardsAuto:

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