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ASK LBS: Independent Car Dealers

Selling advertising to an independent used car dealer has both it’s advantages and challenges. Although many may have little marketing knowledge, they also tend to be “shoot from the hip” buyers. You can help them by establishing...

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How You Can Drive Record Sales for Auto Dealers Today – Part 7 – Q&A

LBS Auto Expert, John Tkac, takes LIVE broadcaster questions! In this session:

  • My car dealer was getting inventory again last Fall... but it's dried up again. They have minimal vehicles on the lot. How can I help them when they won't push if they don't have inventory?
  • Is Tier 2 money ever going to come back to where it used to be? Ford has dropped dramatically and Dodge/Chrysler/Jeep has been non-existent for years.
  • Would it be an effective auto ad with your four points in both a :30 spot and a :60 spot or is one better than the other?
  • I have an independent used car dealer as a client. They buy their vehicles from the auto auction here in Montana. I currently have them on a digital package, but I am trying to get them into radio. Any suggestions on how to pitch them for both a digital and radio package?
  • Can you please re-explain the dollar amount dealers should spend each month based on their inventory?
  • Do you have any suggestions for how to get an ad agency to buy your station after they've taken over a dealer’s account?
  • I met with a local Ford dealer this morning.  Last year they averaged a profit of $2,900 on each new Ford sold.  He said this year they are losing $400 per new Ford sold.  They are currently down over $500,000 over last year on new car deals.  He said they are basically giving cars away to people who qualify to reduce their inventory and hold down costs. He said the biggest problem is a $45,000 basic Ford truck is costing a customer $975 per month plus their insurance costs based on a 72 month contract.  Most products are now in the $65k-$95k range and he doesn't see this changing in the near future. Any thoughts on how I can help this dealer?
  • What is the best way to get an appointment with a dealer? What gets their attention?
  • We are in a market where a large radio chain has more stations than we do, but we reach just as far as they do.  It's hard for us to get an appointment as a locally owned station.  Any advice on how to get in front of a dealer’s decision maker?
  • What do you think of approaching a dealer with a campaign that rotates spots between sales and service?
  • I have two independent dealer clients. One is downsizing to a single smaller location and the other is already at just one location. Neither has done broadcast advertising in years and both feel it was ineffective in the past. What’s a good approach to just get them interested in giving radio another shot?
  • How many ads per week does a car dealer usually need to run on a radio station to really be effective?
  • Is there a guarantee that a smaller dealer will be sent more inventory from the manufacturer if he sells a large quantity of vehicles?

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Revitalizing Local Automotive Advertising for Your Station – Part 12 – Q&A

LBS Auto Expert, John Tkac, takes LIVE broadcaster questions!  In this session:

  • How do you explain to a dealer that your rates are higher than another smaller local station because you cover a larger area? I've shown the map and web stats, but they still try to get me to lower our already VERY fair rates that I'm offering them. I've even put deals together that are lower than rate-card. Other dealerships 'get' it, but this one just gives me grief over the difference in price between the 2 stations every time.
  • You said that about 60% of auto marketing budgets are allocated towards internet advertising. Are streaming TV and streaming radio included in that 60%?
  • Do you know what the national average CPVR is for used cars?

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Approaching Auto Dealers During These Historical Times – Part 8 – Q&A

John Tkac, LBS Auto Expert, takes LIVE broadcaster questions! In this session:

  • In the context of digital advertising campaigns, do local or national campaigns have a higher ROI for dealers?
  • Do dealers get co-op reimbursement for service?
  • We have trouble getting dealers to spend money when there is no co-op involved. Since they don't get co-op funds for used cars, what approach do you recommend to get them to spend on used car advertising without co-op?
  • How do dealerships calculate an advertising budget? What do they base it on?
  • Can you repeat which manufacturers are not experiencing a supply issue in March, 2022?

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Approaching Auto Dealers During These Historical Times – Part 5 – Q&A

John Tkac, LBS Auto Expert, takes LIVE broadcaster questions! In this session:

  • What if your dealers don't have any new or used inventory?
  • I have a Ford dealer where the General Manager won’t see me. Any ideas on how I can get his attention or who else I can approach to discuss a TV and digital campaign?
  • Can you talk about the high end and luxury vehicle market?
  • I found out that a used car manager at a key store in our market has a budget. How can I help him get a larger share of the dealer’s overall ad budget?
  • I have a dealer in my market that says he uses only digital for his marketing efforts. I know that my radio stations and digital assets can help him sell cars. Any ideas how I can address this digital-only mindset?

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Building Broadcast and Digital Strategies That Will Get Your Dealers’ Attention Now! – Part 6 – Q&A

LBS Auto Expert, John Tkac, takes LIVE broadcaster questions!  In this session:

  • Can you define "pump in" and "pump out"? And how can we use that to sell broadcast?
  • How has fewer new vehicles impacted co-op?
  • I understand the math on the CPRV but need more explanation on how it ties to advertising.
  • Is it a good idea to ask dealers who continue to claim that they don’t have new car inventory to advertise that they will pay top dollar for your used car?

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Relief and Hope for Local Auto Dealers – Part 6 – Q&A

LBS Automotive Expert John Tkac answers LIVE broadcaster questions!  In this session:

  • How small is too small to advertise?
  • I work for an AM station. How do I get over that objection when talking with clients?  We stream on over 60 platforms including radio.com....
  • Manufacturers were closed down for a bit of 2020 due to COVID.  Our local dealers report that their lack of new car/truck inventory was what hurt sales.  That also led to their lack of used car inventories.  What effect did the lack inventory have on the overall 2020 sales numbers?

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COVID Christmas, Hanukkah, and New Year – Your Chance to Shine! – Part 9 – Q&A

Paul Weyland takes LIVE broadcaster questions!  In this session:

  • Do you have any recommendations for pharmacies?
  • What are your thoughts on social media?
  • Our small market has several small, used car dealers who basically do no promoting - they say that they "can't afford it".  A "big" weekly ad schedule here would be MAYBE $500!  What would you suggest that we do to get them comfortable advertising on the radio?  What is Gross Margin of Profit for used cars?

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