The great news (for lead providers like us) is that in the last 6 months, banks have really loosened up, and dealers are back in the business of adding to their bottom line by supplementing their own advertising with third party leads.

The bad news (for everyone) is that there is a seemingly limitless supply of leads available in wholesale markets, and that just about anyone can set up a server in their basement and call themselves a "lead provider."  Even worse, all of the pitches are the same: "Our leads are all fresh" or "We make getting credit for bad leads really easy."

As a dealer, how do you know who is really going to provide you with opportunities to sell cars, and who is just full of it?  Just asking a couple of simple questions can help you make the right decision.

First, ask specifically which sites they use to originate the leads.  This one question will help you to figure out who is generating leads and who is just buying whatever they can get on the open market.  I'm not suggesting that a lead is by definition bad because the retailer didn't generate it, but it does increase the likelihood that you're getting a "lead" that has no intention of buying a car.

Second, ask about how the leads are filtered and validated.  This can be a little tricky, because some filters that sound great actually leave you with a lead of lesser quality.  Credit score is the big one.  The only way to legally sell leads with a firm credit range (ie, 520-640) is for someone to have already done a hard credit pull.  Trigger leads are a part of our business (we can debate their value in another post), but you can buy them really cheap -- why would anyone pay a premium for them when they are repackaged as proactive finance leads?

Finally, just use a little common sense.  If the best sales pitch a provider has is how easy they make dealing with bad leads or how easy it is to cancel, you're probably talking to the wrong folks.  

Remember, your goal is to sell cars, so ask specifically how they can help you sell more cars.

The answer you get should really help to narrow down the list of providers you're considering.

Prior to joining Carloan.com six and half years ago, Bob Harwood worked on both sides of the financing process -- first at Capital One and then at a dealership here in Richmond. You can reach Bob at 804-521-8581 or via email at bharwoodATcarloan.com.

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?”

Depending on your industry, determines the type of social media you should focus on. We never really focused on social media until recently, and have had many successes. Our primary B2C social media tools include Facebook and Twitter and on the B2B side blogging and YouTube. This works for us and here are some tips to make it work for you.

Facebook:

-          Interact with your fans. If they post comments on your wall or complaints, respond to them in a timely manner. Encourage them to enter a contest, read an article, etc.

-           Post something daily or every other day. Relevant news articles work. Pose a question with the article as well to get reactions. Do not post too much though as you don’t want to take over their news feed and cause them to delete you.

-          Create contests. A monthly drawing perhaps. It can be as simple as a giveaway for liking your page, or subscribing to your newsletter. People like FREE things.

Twitter:

-          Tweet:  It’s that simple. Tweet about anything. Contests, promotions, new websites, specials, and anything else that your followers may find interesting.

-          Retweet: Read an interesting article? An industry expert say something repeat worthy? Well retweet it and share it.

-          Tweet pictures: are you at a conference? Industry related event? Take pictures and share them with your followers so they can feel included.

-          Use #hashtags: Know your hash tags. They are all over Twitter. By using the right hash tags, other people searching for that tag will find your tweet and may end up following you.

Blogs:

-          Post: Post at least once a week. The more you blog the more your website is recognized in searches.  Basically you get higher search engine positions and more backlinks if you blog regularly.

-          Write: Blog on your website. Topic can be anything related to the industry you’re in. Top ten lists, how to blogs, commentary, tips, etc.

-          Content: Use short and enticing titles.  Hyperlink wherever relevant.  Post tags and keywords for SEO. Add alternate text to your attached photos as well for SEO.

YouTube:

-          Create a channel on YouTube for your company and link it to your website.

-          Videos: videos do not have to be fancy. They can be as simple as a PowerPoint with a voice over or a 2 minutes introduction via webcam from your CEO/General Manager.

-          Do you email market? If so, this is also another great opportunity to attach your videos.

Do you have any social media tools or ideas that you would recommend we try?

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.

Everyday I can count on hearing the following song line blare through my TV: “Call Mack Mack if your credit is wack wack!” Yes it is a real line from a cheesy commercial. But it works for that brand. I know as soon as I hear that line I will see a man dressed in a bull dog costume hip hop dancing in a car lot.

Whether it sticks in my head because the song is catchy or the dog is adorable- the point is that it stuck with me and I recognize it. Mission accomplished on their part.

Commercials are another obvious way to market your business. You don’t have to be fancy or have a six figure budget. A flip cam and YouTube post have made many people famous and many brands popular. Although you may not have a six figure budget, you can still have six figure ideas.

Some of my favorite national car commercials that you all will recognize and can take ideas from include:

At this years superbowl one of my favorite commercials had to be the Star Wars VW commercial. With almost 40 million YouTube hits, little Darth Vader touched many people. You couldn’t watch this commercial and not smile or say “awww.”

Another favorite is the This or That Kia Soul commercial. The ad is fun, urban, and different which is what appealed to enough viewers to help Kia, for the second year in a row, roll home with The Nielsen Company’s 5th Annual Nielsen Automotive Ad of the Year award.

Another car commercial that touches us in a different way, that makes us want to root for Detroit, is the Chrysler commercial featuring Eminem. With almost 11 million YouTube plays, this commercial was definitely ambitious and re-introduced us to why Detroit is iconic.

A last commercial that debuted in 2011 was that of the Nissan Leaf featuring the polar bear. The music was right, the message was clear, and the final hug brought nature and human kind together. Great commercial for getting a message across.

Although viewing these commercials didn’t result in the purchase of any of the vehicles shown,  they stood out and made you “think.” Whether it was about saving the environment, visiting Detroit, watching Star Wars for the first time, or buying a hamster. When you think of these things, you will think of the brand from which they came.

Do you have a car commercial that you absolutely love? Share it below!

In the past week I have come across several articles related to dealerships and social media. One article was about where to draw the line and another focusing on social media presence at dealerships.

Social media is booming right now, and it’s never been more apparent than with social media giant Facebook which has over 500 million users.

I always hear that some dealers don’t use the Internet or prefer to sell cars the ‘old fashioned’ way… well if that’s the route you choose, then good luck staying afloat – because in 2011 everyone is online. Word of mouth is great, but a blog, Tweet, or Facebook promotion is even better because it reaches tens of thousands more.

Here’s how social media can help your:

Reputation:
I am not a dealer nor do I work in a dealership, but I do know social media. All it takes is one person to post a negative review on Facebook or Twitter for your reputation to be compromised. That one person could have 300 friends, and if one of those 300 friends re-tweeted or re-posted that comment, it could reach thousands more.

With an ACTIVE Twitter feed, Facebook page, and blog you can cover a lot of ground. You could keep current and prospective customers in the loop on what’s going on at your dealership, respond to consumer issues if they were posted on Facebook, and Tweet any news that you would like to share to keep your name in front of them in a positive way.

Business:
Besides the importance of social media to your reputation it is also helpful for business. For instance:

Facebook:

• Facebook is a great tool for personal networking, professional networking, posting ads, contests, campaigns, getting feedback, posting lot pictures, etc. Facebook is a lot more personal than Twitter and allows you to be more interactive with your fans. Post pictures of your inventory, sales team, and/or specials.

• Converse with your customers/prospects and answer questions they may have. Facebook is a great way to make consumers feel closer to a brand or product, especially when they have that interaction. It lets them know that someone cares about what they have to say.

Blogs:

• Did you know that blogging regularly is critical if you want to maximize search engine traffic? It builds inbound links and drives click-through traffic from other blogs. As you increase your exposure around the blogosphere, and you help to boost your search engine rankings.

• It isn’t necessary to post everyday but once or twice a week is a good start. And the blogging can be from anyone about anything related to your business. Our account executives and marketing team usually write the blogs for our sites. You do not need a professional or even an ‘expert,’ just someone who knows their ‘stuff’ and is willing to share it.

Twitter:

• Dealerships are on Twitter! Not to say you should be because they are, but they understand that Twitter is a good networking tool, as well as a way to share information and get feedback.

• If you’re blogging, even better, you can tweet your blog URL to Twitter whenever you post. Tweet articles or news stories that may be relevant to your dealership or brand that you sell. As with blogging, if you are going to join Twitter, you must be an ACTIVE user. Tweet daily.

You may not have time to implement all three suggestions, but starting with maybe one or two out of the three could tremendously help your dealership. Try it out and let us know how it works out for you!

Have another social media platform that I should have mentioned? Feel free to enter it below in the comment box.