Buy Here / Pay Here Study Results

BHPH Study Results

Automobile Financing - New Car Networks

During the NABD conference in Las Vegas, Howard Polirer, AutoTrader.com’s director of industry relations, revealed the results of a special BHPH study.

For instance Polirer said:

The average traditional buyer is:

—50 percent female.

—Averages 47 years old.

—Has an average income of greater than $50,000.

—About 60 percent are married.

—And these buyers tend to have an average, excellent to very good credit rating.

Meanwhile, the average BHPH customer is:

—About 58 percent are female.

—They average 39 years old.

—Averages less than $50,000 in annual income.

—44 percent are married.

—And they, of course, have a poor credit rating.

AutoTrader.com and NABD discovered that 81 percent of BHPH purchasers perform “some” or “a great deal” of research as part of their process before buying. This is compares to 19 percent who said they did “very little” research.

Moreover, Polirer revealed that BHPH shoppers use the Internet as much as traditional shoppers for general purposes; however, they do not look to the Internet for car shopping as traditional buyers might.

Interestingly, he explained, “With four out of five shoppers conducting research prior to visiting a dealership, coupled with the high percentage of BHPH customers already online, the implication is that there is an opportunity for BHPH dealers to reach and influence BHPH shoppers by tapping into the online automotive space with advertising messages and information that resonate with the BHPH customer.”

Polirer stressed, though, that it is important that dealers recognize the unique research methods of their buyers. For a BHPH buyer, the first research step would be to find financing. Whereas on the traditional end, a buyer is more interested in the model selection as a first step.

“The need for financing approval drives the car shopping process for BHPH shoppers. In fact, nearly two out of three BHPH customers enter the vehicle shopping process by securing financing or identifying a dealer as their first priority,” he highlighted. “While this information is in line with what the BHPH industry has long suspected, the key is to align your marketing messages with the shopping priorities of your customer base. Effectively communicating the right messages in your advertising may dramatically improve the chances of turning a shopper into an actual customer.”

So ultimately, the key focus of advertising should likely be on financing approval.

“Since approval is BHPH shoppers’ number one concern, messages about financing approval should take precedence in BHPH dealer advertising — both online and offline,” Polirer pointed out.

Furthermore, since many customers are looking for a dealer who can close the deal relatively quickly, Polirer said this is another key point to stress in advertising.

“The good news is that 83 percent of BHPH dealers do it in two hours or less. As a result, this message is an important one to include in your advertising. For example, ‘Get Your Car in Less Than Two Hours,’” he said.

Finally, only 37 percent of BHPH customers’ payments appear on their credit reports; however 63 percent have indicated they would like these payments reported.

So Polirer said it’s important for BHPH dealers to tell customers they can help rebuild credit when advertising.

Read more: Auto Remarketing | Pollak Speaks Out about AutoTrader’s Latest Acquistion http://www.autoremarketing.com/content/technology/pollak-speaks-out-about-autotraders-latest-acquistion#ixzz1NNJ8Dn8N

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