Generation Y Buyers
||By Anna Finger
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|Find out how our service keeps you from answering emails and taking calls to sell your car. We eliminate the aggravation caused by selling privately.
Whether people know it or not, Generation-Y is making everybody listen. This generation comprises of the youngsters born in the late 70's down to the early 90's.
Generation Y grew up with the internet at their disposal, so any clients of used-care dealerships are most likely going to use the internet as a means of their
business. It is for a fact that the younger generation prefers to transact via the internet; from toiletries, to perfumes, apparel, electronic devices such as LCD
televisions and digital cameras, and of course used cars. So dealers should prop-up their car inventories online for this new breed of customers, who are quite familiar
with the use of this technology.
The web used to be the domain for the sale of brand new cars, where prospective buyers research the performance of the vehicle, before actually going to a car dealership
to take it for a test drive. This practice was however, superseded by the used car business with over 50% of used car deals now transacted online. The age bracket for
buyers below 35 years old jumped to 75% and that figure still does not take into consideration buyers from generation-y.
The upcoming decade will be a test of wills, as the kids of generation-y will go into full gear shopping via the internet, for almost any item, again including used cars.
Therefore, dealers should not be caught napping and should expand their market to an online dealership.
The used-car business is indeed a promising segment, with sizable profits ranging from average, to extra-high level profit. Compare a new car that retails at $ 28,000 that
gives you a margin of profit at around $ 1,400. For a used car, the mark-up averages $ 1,700 for a $ 15,000 pre-owned vehicle as per statistics from NADA. While majority
of deals are performed online, used car dealers have not matched the demand with an overwhelming presence on the internet. There are some issues that need to be addressed
to increase dealer presence online and pump up used car sales as well.
One of the reasons that may limit the online business of many car dealers, involves photography issues. Many buyers need to see the product clearly to enable them to
visualize the vehicle. If what is presented is uninteresting, then expect clients to browse other websites instead.
A word of advice, hire professionals or train your staff to shoot clear and crisp photos of your inventory. Remember that used car prices drop to 20% after being in the
lot for more than 20 days. Likewise, always update your inventory. An outdated inventory, should never be an option in the first place. Don't forget to use your website
to promote your inventory as well as your services. After all, success is dependent on how you treat the advertisement.
With all these in place, you surely will not miss out on the earning potentials of the generation Y segment.