Different Close Rates on New and Used Vehicles?

Dennis Galbraith
A group of Canadian dealers is finding a difference between the new-vehicle close rates from leads (phone calls, emails, and chats) coming from their primary website and used-vehicle leads from the same source. Is anyone else finding a difference? Any identification of what may be causing the difference in your store?
Shannon Hammons
Yes there is a difference. Alot of new car customers take longer to buy than used car customers take.
mark rask
We find that the new car leads seem to come from a more serious buyer.
Dennis Galbraith
Very helpful Shannon and Mark, thanks. It sounds like your close rate for new-vehicle leads from the primary website is higher. That is what they were finding.
Robert Karbaum
I can confirm. Possibly it is a Canadian thing. Here is my theory: Competition on New Vehicles between dealers in Canada (especially in the Greater Toronto Area) is far less cut-throat than in the United States. The emphasis is more on promotions, than inventory. This likely is the result of two factors: no same day delivery, and no discounts off msrp in advertising. Secondly, there are faaaar to many pre-owned vehicle portals in the Greater Toronto Area for any dealer to tread above the fold on the front page of Google. The result is that dealer pages focus more on new and leave the used for Trader, Kijiji, etc. Hope that helps Dennis!
Craig Waikem
For the past 3 years our new vehicle leads close higher than our used vehicle leads as well! The leads have the same appointment made ratio, appointment show ration therefore the leads to showroom % is consistent. The difference in at the showroom. New vehicle leads are easier to close. Why? 1. Easier to get financed. You can offer multiple options with a new vehicle. Longer term, better rates, leasing, rebates to overcome negative equity, etc. In addition, most poor credit customers start with used vehicles, lowering our closing percentage. 2. New vehicles live up to their expectations. However, used vehicles will be scrutinized. I always assumed that a used vehicle lead should be easier to close. Its unique, theres only one, etc. But I can't dispute the data! Over 30,000 leads and we continue to close new vehicle leads higher, specifically when the customer is in the showroom.

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