Being competitive in Canada’s automotive retail sector requires the dealer to continually look for ways to “sharpen the spear”. One area of the challenge lies in the area of manufacturer rebates and incentives. Hyundai dealers specifically have not been provided a solution by the OEM to post and keep current all incentives automatically to their websites. Without these price concessions from the manufacturer being listed, it’s difficult to compete with other brands who are being subsidized on similar carlines let alone dealers of their own brand who spend time performing the arduous task of manually updating these discounts.
To be efficient and effective, Canadian dealers need to work with an inventory management solution that integrates with their factory rebate programs to stay on par with the other brands that do. Programs change rapidly and often. Having real-time integration, specific for the region, provides Canadian Hyundai dealers a competitive advantage within their own brand and allow them to stay competitive with the others.
Incentivized finance rates are also a big selling point for shoppers. Most shoppers don’t know if they can afford a $40,000 vehicle but they do know that they can afford $550 per month payment. Having an actual subvented payment appear on your website and easily accessible is another key to online success. As most know, incentives change often and are confusing to even the dealership and as a result, this important variable is excluded from the dealership’s online marketing. Most dealership websites don’t post anything other than a “dumb calculator” that has by default 5.99% for 60 months when in fact the rate and the term are much better. Dealerships are in fact being counterproductive by quoting a payment that in many cases is much too high. To further rub salt into the wound, automotive regulatory agencies in Canada such as OMVIC, AMVIC, VSA may deem the “dumb calculator” on your website could potentially even be in violation of their advertising standards because there is no mention of total cost of borrowing, net to finance information plus the myriad of other disclosures you legally need to make..
The above scenario creates a “de-selecting” of a dealers vehicle, often without the dealer ever knowing it. For example, a shopper can research current rebate programs on the factory website but when the information is not displayed on the dealer’s website, it’s easier to hit the back button, then “call for details” or fill out an “e-price form”. The majority of online shoppers follow the path of least resistance. The harder dealers make shoppers work for information, the fewer opportunities the dealer receives. The buzzword is “transparency” but the real world it’s called smart business.
In order to provide a simple solution for our customers, AIM Experts has created seamless integration with all major web providers and third-party advertising portals. Using a Canadian inventory solution helps eliminate the challenges faced when having to deal with foreign companies who don’t understand our regulations. The Canadian market has unique challenges and partnering with a certified provider with a pedigree in Canadian automotive inventory management makes sense.
Additionally, as more website vendors receive factory approvals, having an agnostic inventory provider creates more flexibility to dealers looking to switch. In the past, a dealer may have liked a certain website providers UI but was reluctant to switch because the legacy provider housed all their data. Alternatively, if the dealer decided to switch he was likely forced to retain more vendors to support his inventory requirements, pricing, rebates, descriptions, syndication, image uploads and data feeds. Having a single source inventory provider gives Canadian dealers greater flexibility while lowering overall vendor management headaches.
To learn more about the Canadian specific inventory management solutions from contact an AIM expert today.