Saw an interesting article this week featuring data from  AutoBuying101.com's "Auto Buying Experience" survey, which describes car buyers' experiences with working with auto dealers.

There weren't really any earth-shattering insights on offer, but the data did corroborate some of the things that we "know" about car buyers and the auto sales process:

• Car buyers find the process to be "stressful," and only 28% of the respondents said dealers were trustworthy (yikes).

• 37% thought that the worst part of the process was price negotiation. However, 79% felt like they got a fair deal.

• According to the same survey, many don't plan their approach to the dealer: they don't set an appointment (44%), check their credit (44%) or get pre-approved (47%) before they show up on the lot.

On the other hand, 78% checked out at least one dealership website while they were considering what car they wanted to buy, before they went driving around.

That means that you have the opportunity to make it easier for your customers by doing what we do: educate them on what to expect. When people apply for a car loan at one of our consumer websites, we make a point of telling them what happens next and how to be prepared. There's no reason that you, the auto dealer, can't do the same.

It's simple: add pages that describe the best way to buy a car from you, including how the process works at your dealership and what they need to bring in order to close the deal. Increase your transparency to counteract that 28% trust rating. And follow through on what you say you're going to do.

When you make their experience great, you'll get a car sold and a customer advocate who will recommend you to all of their friends.

In the end, isn't that what's best for you, too?

Saw an interesting article this week featuring data from  AutoBuying101.com's "Auto Buying Experience" survey, which describes car buyers' experiences with working with auto dealers.

There weren't really any earth-shattering insights on offer, but the data did corroborate some of the things that we "know" about car buyers and the auto sales process:

• Car buyers find the process to be "stressful," and only 28% of the respondents said dealers were trustworthy (yikes).

• 37% thought that the worst part of the process was price negotiation. However, 79% felt like they got a fair deal.

• According to the same survey, many don't plan their approach to the dealer: they don't set an appointment (44%), check their credit (44%) or get pre-approved (47%) before they show up on the lot.

On the other hand, 78% checked out at least one dealership website while they were considering what car they wanted to buy, before they went driving around.

That means that you have the opportunity to make it easier for your customers by doing what we do: educate them on what to expect. When people apply for a car loan at one of our consumer websites, we make a point of telling them what happens next and how to be prepared. There's no reason that you, the auto dealer, can't do the same.

It's simple: add pages that describe the best way to buy a car from you, including how the process works at your dealership and what they need to bring in order to close the deal. Increase your transparency to counteract that 28% trust rating. And follow through on what you say you're going to do.

When you make their experience great, you'll get a car sold and a customer advocate who will recommend you to all of their friends.

In the end, isn't that what's best for you, too?

As thrilling as it is to watch auto dealers migrate their marketing to the web, there are still some places where they need to do their homework.

Here at Carloan.com, we work with highly sensitive consumer information every single day so we take a special interest in keeping a toe in the water in terms of online consumer protection best practices.

Our GM, Tom Feary, wrote a great piece a few months back about steps dealers can take to protect consumer information offline. Recently, we’ve noticed that there are some places online where dealers must improve their security in order to avoid serious vulnerabilities to hackers and potential consumer lawsuits.

Here are a few tips for your website to make sure that you’re doing all you can to safeguard this data, once a consumer has shared it with you:

• Make sure that your financial application is encrypted. You’d be surprised how many dealers’ websites have financial applications – including those built by some reputable website providers –  that are written in unencrypted HTML and do not include “https://” in the URL for their finance application. That means that the information is wide open.  Any savvy consumer will not submit their application if they recognize that it’s not being protected. (And by the way, we can create a secure branded financial app for you; no muss, no fuss.)

• Take a minute to read your privacy policy – if you have one. If you’ve been paying attention, you know that you need one if you’re collecting consumer information. The federal government requires that you describe what you’re gathering and why, and how it will be used. And make sure that your website visitors can find it easily.  If you don’t have one, you’ve seen one of these if you have any credit card accounts. 

• Get consumer consent before you pull credit. It’s a bit of a stretch to call this “online security”, but think about it from their perspective. If a consumer is not actively engaged with you and sees a hard credit pull on their report – and many of them will – they will interpret that as a fraudulent action on your part and potentially sue your dealership. As far as they know, their financial information was compromised, and you are responsible.  Might sound far-fetched, but we’ve seen it happen.

Most of the dealers we see out there actively engaged in the online world are using these best practices, which is great. But it’s the bad actors that make it tough for the rest of us. It’s up to you to make sure that you’re on the right side of the law and tenaciously guarding this sensitive information.  

Take a look at your website and ask yourself, “how are we doing?”

As thrilling as it is to watch auto dealers migrate their marketing to the web, there are still some places where they need to do their homework.

Here at Carloan.com, we work with highly sensitive consumer information every single day so we take a special interest in keeping a toe in the water in terms of online consumer protection best practices.

Our GM, Tom Feary, wrote a great piece a few months back about steps dealers can take to protect consumer information offline. Recently, we’ve noticed that there are some places online where dealers must improve their security in order to avoid serious vulnerabilities to hackers and potential consumer lawsuits.

Here are a few tips for your website to make sure that you’re doing all you can to safeguard this data, once a consumer has shared it with you:

• Make sure that your financial application is encrypted. You’d be surprised how many dealers’ websites have financial applications – including those built by some reputable website providers –  that are written in unencrypted HTML and do not include “https://” in the URL for their finance application. That means that the information is wide open.  Any savvy consumer will not submit their application if they recognize that it’s not being protected. (And by the way, we can create a secure branded financial app for you; no muss, no fuss.)

• Take a minute to read your privacy policy – if you have one. If you’ve been paying attention, you know that you need one if you’re collecting consumer information. The federal government requires that you describe what you’re gathering and why, and how it will be used. And make sure that your website visitors can find it easily.  If you don’t have one, you’ve seen one of these if you have any credit card accounts. 

• Get consumer consent before you pull credit. It’s a bit of a stretch to call this “online security”, but think about it from their perspective. If a consumer is not actively engaged with you and sees a hard credit pull on their report – and many of them will – they will interpret that as a fraudulent action on your part and potentially sue your dealership. As far as they know, their financial information was compromised, and you are responsible.  Might sound far-fetched, but we’ve seen it happen.

Most of the dealers we see out there actively engaged in the online world are using these best practices, which is great. But it’s the bad actors that make it tough for the rest of us. It’s up to you to make sure that you’re on the right side of the law and tenaciously guarding this sensitive information.  

Take a look at your website and ask yourself, “how are we doing?”

The good news for car buyers and car dealers is that lenders are finally beginning to loosen up when it comes to lending to buyers with less than perfect credit.  The average credit score for auto loans fell to 766 in the first quarter of 2011 which is the lowest since the last quarter of 2008, according to figures that Experian released last week.

Most Americans have hunkered down and made do with what they have over the past few years.  Consumers have repaired old cars and made do with their family truckster while finances were tight.

Others have wanted to buy but have been unable to do so because cautious finance companies have been unwilling to lend to buyers with credit problems.  The pent-up demand from consumers along with lenders loosening their purse strings should result in a spike in sales for dealers who are prepared.

Secondary departments have to begin getting the inventory in place to work with secondary customers and reaching back out to the lenders that have taken a hiatus from dipping into the secondary market.

The next step is to get the word out to consumers that the banks are lending now.  Dealers should go back through old leads and customers who they couldn’t get done over the past few years.

If a dealer doesn’t see secondary traffic or have a means by which to drive that traffic to the store, now is the time to start exploring those options.  Up to a third of all Americans have what would be classified as "subprime" credit, which falls into 680 and below.  Any dealer who chooses to ignore that demographic is forfeiting a huge chunk of market share.

To get back into secondary, first you need to get your lenders and inventory in line to cater to the secondary customers. Next reach out to customers who had the desire to buy in the past but lacked the ability.  Contact me to learn more about ways to drive motivated buyers in that 520-650 wheelhouse to your dealership!

Brian Matthews is an account executive for Carloan.com. He has been helping dealers with their sales and marketing processes since 2007. You can reach Brian at 804-521-8569, via email atbmatthewsATcarloan.com and follow Brian on Twitter at @BrianCarloan.

The good news for car buyers and car dealers is that lenders are finally beginning to loosen up when it comes to lending to buyers with less than perfect credit.  The average credit score for auto loans fell to 766 in the first quarter of 2011 which is the lowest since the last quarter of 2008, according to figures that Experian released last week.

Most Americans have hunkered down and made do with what they have over the past few years.  Consumers have repaired old cars and made do with their family truckster while finances were tight.

Others have wanted to buy but have been unable to do so because cautious finance companies have been unwilling to lend to buyers with credit problems.  The pent-up demand from consumers along with lenders loosening their purse strings should result in a spike in sales for dealers who are prepared.

Secondary departments have to begin getting the inventory in place to work with secondary customers and reaching back out to the lenders that have taken a hiatus from dipping into the secondary market.

The next step is to get the word out to consumers that the banks are lending now.  Dealers should go back through old leads and customers who they couldn’t get done over the past few years.

If a dealer doesn’t see secondary traffic or have a means by which to drive that traffic to the store, now is the time to start exploring those options.  Up to a third of all Americans have what would be classified as "subprime" credit, which falls into 680 and below.  Any dealer who chooses to ignore that demographic is forfeiting a huge chunk of market share.

To get back into secondary, first you need to get your lenders and inventory in line to cater to the secondary customers. Next reach out to customers who had the desire to buy in the past but lacked the ability.  Contact me to learn more about ways to drive motivated buyers in that 520-650 wheelhouse to your dealership!

Brian Matthews is an account executive for Carloan.com. He has been helping dealers with their sales and marketing processes since 2007. You can reach Brian at 804-521-8569, via email atbmatthewsATcarloan.com and follow Brian on Twitter at @BrianCarloan.