Traditional vs. Contemporary: The Evolution of Auto Dealership Sales

The automotive sales industry is undergoing a profound shift. In a digital age where 92% of customers begin their car buying experience online, the high-pressure, negotiation-heavy sales tactics of yesteryear are becoming increasingly ineffective . Today’s auto dealership must be prepared to meet a new kind of consumer with a radically different set of expectations. Let’s delve into how this transformation is reshaping the fundamental sales strategies at the heart of auto dealerships.

Hassle-Free Pricing: From Haggling to Harmony

• Traditional Approach:

In the past, price negotiations were a standard, often grueling part of the car buying process. Salespeople approached this as a battle, creating a stressful and aggressive atmosphere within the dealership.

• Contemporary Approach:

Today, many dealerships are adopting a transparent, no-haggle pricing model. Consultants at these dealerships assist customers in understanding this upfront pricing, removing the stress of negotiation and instilling confidence in a fair and honest price.

Case Example - Schomp Automotive Group:

A pioneer in this modern approach, having implemented this strategy 
for a seamless and customer-friendly sales process more than 25 years 
ago. They have trademarked their process as
"ONE PRICE.ONE PERSON.ONE HOUR.PROMISE" (U.S. Reg. No. 5,385,316), 
highlighting their commitment to a swift and stress-free car buying
experience.        

Salesperson Role & Training: From Seller to Trusted Advisor

• Traditional Approach:

Historically, salespeople approached customers with a high-pressure demeanor, employing aggressive tactics to close a deal. Their primary goal was to make a sale, often at the expense of customer satisfaction.

• Contemporary Approach:

In stark contrast, today’s Consultants are knowledgeable guides rather than pushy sellers. Dealerships empower these Consultants with the tools and knowledge necessary to assist customers in making the best choice for their individual needs, fostering trust and encouraging long-term customer relationships.

Case Study -At Schomp Automotive Group, Consultants are equipped with tablets. They use these to offer guests a comprehensive experience, showcasing vehicle options and presenting financing possibilities, Vehicle Service Agreement (VSA) options, and available accessories, thereby streamlining the sales process and reinforcing Schomp Automotive Group’s brand integrity.

Transparency & Information Sharing: From Secrecy to Openness

• Traditional:

Information about vehicle history, markup, and financing options was closely held by Salespeople and used strategically.

• Contemporary:

Dealerships are opening the books. Consultants share vehicle history reports, pricing breakdowns, and financing options upfront, often through digital platforms, making transparency a key strategy for building trust with the modern consumer.

Customer Experience & Relationship Building: From Transaction to Partnership

• Traditional:

The focus of Salespeople was often on making a sale, not necessarily on the customer’s broader experience or future relationship with the dealership.

• Contemporary:

Consultants and their dealerships are centering strategies on the entire customer experience, from the initial inquiry to after-sale follow-up, aiming for long-term relationships which often include personalized follow-ups, thank you notes, and service reminders.

Use of Technology in Sales: From Paper to Digital

• Traditional:

The sales process conducted by Salespeople was largely manual, relying on in-person meetings and paper brochures.

• Contemporary:

Consultants are empowered with technology. For example, BMW Consultants utilize tablets and digital platforms, allowing for a seamless, paperless, and highly visual sales process.

Customization & Personalization: From Standard Packages to Tailored Experiences

• Traditional:

Dealers offered standard packages, with Salespeople having limited ability to personalize vehicles.

• Contemporary:

Dealerships, leveraging data and technology, now offer highly personalized options. Consultants guide customers through features like Ford’s ‘Build & Price,’ helping them configure a vehicle that aligns with their unique preferences and needs.

Conclusion

In essence, the contemporary sales approach in auto dealerships is markedly less about ‘selling’ in the traditional sense. It’s now about guiding, educating, and nurturing relationships with customers. This paradigm shift isn’t merely a whim – it’s a calculated and necessary response to changing consumer expectations and the digital information age. Consequently, the modern car buying process is evolving to become less confrontational and more collaborative. The car dealership of the future is less a 'lot' and more a 'partner.' The sooner dealerships can pivot to this new reality, the sooner they will find success in the modern landscape.

Author: Babak Rosenthal Mohammadi is a General Manager, approved by Toyota Motor USA. His collaborative strategy, fortified by intensive training initiatives, has transitioned dealer business models to contemporary approaches that resonate with today’s market and the dealer principal’s vision. This strategy has not only maintained profitability but also established remarkable performance.

Date: August 16, 2023

Note: All content in this article is original. Images are sourced from a paid subscription service and are used with permission.