Vehicle affordability has become a key focal point for both dealers as well as consumers…and in some markets, this financial strain is posing a challenge to customer loyalty. On the latest episode of Inside Automotive, we’re joined by Durran Cage, the Founder and Owner of Cage Automotive, to discuss customer loyalty and his recommendations.
Key Takeaways
1. The increasing cost of vehicles has led customers to prioritize finding the best price and lowest monthly payment. This change in consumer behavior requires dealers to engage more deeply with customers, understand their financial concerns, and offer tailored solutions.
2. Cage stresses the importance of acknowledging customers’ affordability concerns and turning them into meaningful conversations. He suggests that dealers should align their goals with the customers’ financial situations rather than simply focusing on selling a car.
3. Although the current affordability issues may not be permanent, Cage advises dealers to prepare for a long-term scenario. This includes adjusting marketing messages and sales talk tracks to better resonate with customers’ financial realities.
4. Offering customers a range of payment options, including leasing, financing, and cash payments, can enhance their experience and build loyalty. Cage notes that presenting these options helps customers feel in control and better aligned with their financial goals.
5. With rising fuel costs, highlighting the cost-saving benefits of new vehicles, such as improved fuel efficiency or the elimination of gas costs with EVs, can be a strong selling point. Cage also sees growing success in the used EV market, which dealers should embrace as a strategic option.
"We need to get into why their concern is what the concern is and see if we can help them get to their next step." — Duran Cage.
