31 Aug How to Leverage PDR for ‘Stop-Gap’ Car Shoppers
Every headline these days reminds dealers how difficult it is to find inventory and hit sales targets this year…and there are 5 months left to try to get through. It’s forcing car shoppers to make buying decisions they might otherwise not make (models they didn’t really want, not getting the exact color or trim/options desired, etc).
F&I departments are also being stressed, too. Lack of inventory means fewer deals to be had and less opportunity for high PVR. The deal that may have been an easy lock for 3 or 4 products is also made tougher due to rising prices and less room for product to be factored into payments. It’s a mess.
When looking for an easy appearance ancillary to offer at a low back-end cost and easy to sell (or ideally, preload), one comes to mind that actually fits the current situation well. PDR.
Why PDR? Why Now?
Car shoppers are having to resort to buying what is being called the ‘stop-gap’ car. This is the unit they didn’t REALLY want but are willing to buy now with the intention to trade it in when the car they wanted in the first place comes into the dealership. They are buying a short-term fix.
If the chip shortage abates sometime in ‘22, this buyer is thinking they can simply trade in this car for that one and be happy. That could happen but they often forget one critical piece of that puzzle…the car better be in great shape to have enough trade-in value in a year or so.
That’s where a PDR preload comes in. Make it a Line 1 add on the buyer’s order and sell it by explaining that very thing….that when their desired car comes in late next year, PDR is a protection that can ensure their trade-in looks good and yields a higher value when they need it.
New & Used..Same Value
If your store is selling more late model or CPO units, the same thing applies. Offer PDR as a preload and encourage buyers to use it to make sure their car looks good for trading in. Some dealers actually have more used than new and all the more reason to add value to those cars as well even though they are a few years old. They still need to look good if they are traded, too.