Third Party Leads? It's not a Party Anymore!

Derrick Woolfson

Has anyone else seen an overall decline in lead quality from third-party sources like  & I am over the flat fee to only get mediocre crap leads! Where it is costing $54 per lead on average! I'd rather spend a third of the money I am spending with them and use that for PPC & AdWords than continue to spend with them! Thoughts? 

John Colascione purchases leads from third party websites however, they do not tell  they are doing that. They want it to seem it like it all coming from Their secret source is to buy not the lead, but the traffic, and bring it back to VDP so the lead transpires there, not on the third party site. I'd bet that many of the larger sites to the same, thus as overall third party site lead quality declines, so does everyone elses. I do not believe CarGurus does this though; I don't think they need to. But the bigger players are though, to keep up with their declining market share.


@John, I was not aware of that w/, BUT that certainly explains a lot! And as we know, as form fill continues to decline (and mobile click to call goes up) dealers really have to look and consider what is best! And I truly believe that third-party lead vendors are going to have a rude awakening in the near future as the industry continues to evolve. 

Tracie Costabile

Third party leads are played out.  First generation leads are the only way to go.  Get the customer to your site, and have them convert there so their information is exclusive to you.  This ensures there isn't another dealership going after your shopper.  Closing ratio as well as final price are both higher with first generation leads.

Derrick Woolfson

@Tracie, I completely agree! Nothing worse than purchasing an OEM lead that is not within your market area that went to over 16+ stores! The ROI is for crap. I also like it best, too, when they do get to our site we are then retargeting them. 

"Closing ratio, as well as final price, are both higher with first generation leads." Well said Tracie! With thinner margins all around with new and used cars, this makes a difference.

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