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In the Insignia blog, we've discussed the growing automotive accessories market and the 4 main advantages of offering accessories. Now, we'll take a closer look at each of these advantages. Today--the financing advantage.
One of the biggest misconceptions we hear is that customers are not willing to spend more on accessories; after all, they just spent thousands of dollars on a new vehicle. Wroooooong. According to Foresite Research, customers are demonstrating a real willingness to spend an average of $1,949 on vehicle personalization. The goal should be to keep that revenue in the dealership. Here is where the online accessories sales tool helps get you to the goal.
Put Away that Credit Card
Consider the following scenario: John comes into your dealership and buys his first new car. John decides to personalize, so he leaves your store and goes to a tinting shop. He has his windows tinted, costing him $200. Next, he visits a restyler and has Katzkin leather interiors installed spending another $1,900. Finally, he goes to Pep Boys and purchases Weathertech Floor Mats for $100. John has now spent $2,200 out of pocket to personalize his vehicle. He's spent a decent amount of time driving to and dealing with various businesses, and let's not even discuss warranty issues. From a dealer perspective, you have lost $2,200 in potential shared revenue across sales, parts, and service, as well as potential revenue from an F&I protection policy for the Katzkin upgrade.
Spend Your Money Here
Now imagine that instead of having to spend the extra cash and make extra trips, John comes into your dealership, and purchases his vehicle, and the accessories at the same time. He's able to roll the accessories payments into the overall deal. In this scenario, you have effectively capitalized on John’s desire to personalize his vehicle, saved him the time of having to go off the lot to purchase accessories, and the out-of-pocket expense of having to pay with cash or credit card. Best of all, you've increased your dealership revenue.
Financing accessories at the point of purchase is convenient and cost-effective for the customer! It also generates increased profits across the sales, parts, and service departments.
Need help creating your own vehicle personalization process? Contact Insignia and get started today!
