3 key areas dealers are missing out on that are critical to boosting sales

18 Comments / Industry News / By

Renowned investor, Warren Buffet, is credited with saying:

“It’s only when the tide goes out, that you can see who’s been swimming naked”.

This analogy is used to demonstrate that when business conditions are easy or favorable, companies can look good and may not pay much attention to areas for improvement – and that it’s only when trading conditions worsen, that more time is devoted to reviewing processes and opportunities.

With this quote in mind and considering the current used car market, it’s critical for dealerships to maintain a strong focus on business improvement regardless of market conditions.

This is why DSG regularly help dealer groups identify specific areas where incremental sales and improved results can be achieved without undermining any commitments to a dealer’s existing lender relationships. Below we’ve outlined 3 areas to focus on.

DSG Finance provides motor finance solutions that benefit dealers and customers. If your goals for 2022 are to maximise vehicle sales, get in touch [email protected] or 0161 406 3931

1. Ensure that every proposal receives full underwriting consideration

Our research shows that the dealer network loses hundreds of sales each month as a result of proposals not being forwarded on to another lender once one decline has been received.

The number one reason dealerships do not forward declined proposals is due to dealership personnel incorrectly prejudging and assuming one of three outcomes:

  • The customer will just be declined again
  • The customer doesn’t qualify for ‘prime’ terms
  • If the customer were to get accepted, then the APR and repayment will go up

If one or two lenders have already declined a customer’s application – then this represents only one or two ‘opinions’ and is not necessarily a true reflection of the customer’s creditworthiness. Each lender has their own individual scorecard and customer criteria which is unique to them – so what might be right for one lender, won’t necessarily be right for another.

During a recent survey, DSG established that one dealer group had missed out on 45 additional vehicle sales in one month – which if annualised, would equate to over £500,000 in lost revenue.

The solution

The ability to compare an application with a broader selection of lenders is in the favour of both dealer and customer. For example, with 7 different prime lenders on our panel, DSG are effectively able to compare the market, ensuring that any customers who qualify for the optimum terms – goes on to actually receive them.

DSG Finance provides motor finance solutions that benefit dealers and customers. If your goals for 2022 are to maximise vehicle sales, get in touch [email protected] or 0161 406 3931

2. Review the effectiveness of your lender portfolio

Increasing used car finance penetration is always a key area of focus in the year ahead for dealer group senior management.

Having lenders or product ranges that simply mirror what is already in place from the manufacturer makes it difficult to improve finance penetration due to the underwriting and product criteria being limited to certain customers, as opposed to catering for most customers.

By adding a range of ‘niche’ products, which can fit seamlessly around existing funder relationships, dealer groups can cater for every possible customer funding requirement. As a result, used car finance penetration can be increased by 10% or more, making a significant difference to a dealerships’ overall performance.

3. Maximise the conversion of digital leads

Compared to customers who visit a showroom, digital enquiries tend to be less efficient – meaning a lower percentage of opportunities getting converted into paid-out transactions.

A key factor here is most online dealer groups only cater for ‘prime’ customers – and therefore exclude people with any other type of credit profile. This is why the decline rate for proposals generated online tends to be higher than proposals generated from the showroom.

Designing and implementing a fully digitalized ‘rate for risk’ solution is key to maximising online conversions, enabling customers to instantly assess their own individual creditworthiness through a dealer’s website. By appealing to a wider range of customers, dealers achieve higher acceptance rates, improved conversion efficiency, ultimately selling more cars.

DSG’s proprietary technology has helped a number of dealer groups double the conversion of their online proposals into actual sales – the option of DSG ‘back office’ support also frees up dealership capacity and time by liaising directly with customers on behalf of the dealership.

DSG Finance provides motor finance solutions that benefit dealers and customers. If your goals for 2022 are to maximise vehicle sales, get in touch [email protected] or 0161 406 3931.

18 thoughts on “3 key areas dealers are missing out on that are critical to boosting sales”

  1. cytotec-senry

    Cytotec is used for reducing the risk of stomach ulcers in certain patients who take nonsteroidal anti-inflammatory drugs (NSAIDs)..
    Special offer: can i buy cytotec online, save up to $498 (only $1.85 per pill) and get discount for all purchased!
    Two Free Pills (Viagra or Cialis or Levitra) available With Every Order.
    No Prescription Required. Safe & Secure Payments. Fast & Free Delivery.
    Tag: buy cytotec online without prescription, cytotec purchase, cytotec to buy online

  16. baccarat online

    I have been looking for articles on these topics for a long time. baccarat online I don’t know how grateful you are for posting on this topic. Thank you for the numerous articles on this site, I will subscribe to those links in my bookmarks and visit them often. Have a nice day

  17. casino online

    I came to this site with the introduction of a friend around me and I was very impressed when I found your writing. I’ll come back often after bookmarking! casino online

Leave a Comment

Your email address will not be published. Required fields are marked *

DSG Finance help...

evans-halshaw@2x_3faeb8cb
Inchcape@2x_98aec731
jardine-motors-group-logo_d30bd745
Lookers Logo@2x_b2f98167
robins-day_c4643d1d
TrustFord_Logotype@2x_976e96cc

GET IN TOUCH

Head Office

0161 406 3931

Prestige Office

01943 660 691

 

EMAIL

[email protected]

FOLLOW US

Facebook Twitter Linkedin Youtube
Complaints policy        Privacy policy       Careers

©2022 DSG Financial Services Ltd.

We can introduce you to a limited number of lenders and their finance products. We are not an independent financial advisor; we will provide details of products available, but no advice or recommendation will be made. You must decide whether the finance product is right for you. We do not charge you a fee for our services. Whichever lender we introduce you to, we will typically receive commission from them (either a fixed fee or a fixed percentage of the amount you borrow). The commission arrangements we have in place vary, depending on how you are introduced to us and with which lender we are able to place you with. When you are introduced to us by a motor retailer, we may be paid a flat fee, regardless of the interest rate you pay, finance product, length of agreement, or amount of finance. We may also be paid a fixed rate of commission, calculated as a percentage of the amount of finance. We will always introduce you to the most suitable finance lender offering you the most appropriate finance product for your needs, and at the best interest rate possible (which is determined by the finance lender) based on the commission we are paid and by your credit profile. The amount of commission we receive and pay, and your credit profile, will impact the amounts you pay under your credit agreement. In both cases, we will pass a proportion of the commission paid to us to the motor retailer that introduced you to us. We may also be paid, and pay the motor retailer, higher commission depending on the type and age of vehicle or based on the finance product you are provided with. In these cases, commission levels vary based on the levels of work required to be undertaken by us and the motor retailer. Whilst we may receive higher levels of commission based on the finance product you are provided with, this is always based on the level of work required in relation to the particular product and we will not seek to secure finance products that are not suitable for your needs.

We may select a lender which is part of our group (Unity Auto Finance Ltd). We will only ever select this particular lender from the panel available to us if it is in your interests and is the most appropriate lender for your particular needs.

If you would like to know how we handle complaints, please ask for a copy of our complaints handling procedure, or click here.
Click here for our Privacy Policy. You can also find information about referring a complaint to the Financial Ombudsman Service (FOS) at www.financial-ombudsman.org.uk. For free and impartial money advice, contact the Money Advice Service.

DSG Financial Services Ltd is authorised and regulated by the Financial Conduct Authority (Firm reference number – 649675). DSG Financial Services Ltd is a company registered in England & Wales with a company number 02313903. Our VAT registration number is 322 3523 42.
All Rights Reserved. We are a credit broker and not a lender.