4 Methods to Increase Revenue for Dealerships

Purchasing a vehicle is an exciting time, but it can also be a stressful time for potential customers. A visit to a dealership is rarely simple, it often involves a long day spent with a sales team member and in the F&I office.

There’s no industry that is foolproof against customer complaints, and the excitement, stress, and high emotion of purchasing a high-value item such as a vehicle often leads to stresses for customers that may lead to them complaining in person or even online. In 2023, an average of 10% of a new dealership’s reviews were negative.

In such a high-stakes situation, customers want to feel assured that they’ve made the right decision in the vehicle they are purchasing and the dealership they are choosing to work with. Some complaints can stir up some doubts in potential buyers. The good news is that with these helpful strategies, your dealership can avoid the most common complaints among vehicle shoppers.

1. Build Trust & Transparency – Many consumers have a built-in mistrust for the automotive industry. One recent study shows that 76% of those asked don’t trust cardealerships to be honest about pricing. If dealerships want to avoid being affected by this, they must build that trust with their customers. The best way to do that is to be as transparent and up-front as possible while maintaining regular customer contact. If there are issues with the vehicle in the service drive or problems in the F&I office, be honest with the customer about what is going on and how the dealership is going to work to create the best outcome for the customer.
2. Give Buyers Their Money’s Worth – Many customers are concerned about vehicle pricing, especially with so many opportunities for upgrades and additional services. Customers must rely on dealerships to purchase vehicles, but that means they are often left haggling over a feature or monthly payment. Take customer concerns seriously and work with them to learn what is and isn’t important, and what will have them driving away happily after the transaction.
3. Don’t Push Unnecessary Services – Customers don’t want to feel as if they are being sold unnecessary services each time they visit their dealership. Recent studies show that in 2023, only 30% of all serviced cars were taken to a dealership for maintenance. However, 46% of those customers don’t trust the service drive to be honest in pricing and what’s needed. If the service drive is transparent with customers about their service needs, they’re bound to return when other services are needed.
4. Avoid the Stereotype of the “Pushy” Salesperson – Let’s face it: vehicle sales is a competitive market. With high interest rates and other economic concerns, buying a new vehicle is a struggle for many customers.  In 2024, the vehicle market is remaining close to record highs on vehicle pricing, and those aren’t projected to lower any time soon. It’s important to carefully assess the customer’s needs while avoiding appearing pushy during this stressful decision-making process.
5. Steer Clear of False Advertising – Finally, one of the biggest complaints from vehicle buyers is that too many dealerships use false or misleading marketing. Avoid marketing specials and deals with complicated fine print or limitations on the promotion. These might get customers to the showroom, but they may leave unhappy and have a bad memory of trying to work with that dealership. Instead, be up-front and transparent with what the specials and promotions offer and who is eligible before they even get to the F&I office, if possible.

Address Complaints Before They Start

Customer complaints are all too common – and usually louder than a positive review or accolade. However, many customer complaints can be prevented ahead of time by implementing business practices designed to create the best customer experience possible. When a dealership understands the negative experiences potential customers may have already faced, they can ensure that they don’t repeat that history.