Equity data mining is one of the most lucrative trends currently in the market. Because almost every auto dealer is digging out from an economy where floor traffic has slowed and customers were holding their checkbooks tightly, equity data mining has helped auto dealers connect with previous customers resulting in unidentified sales. These sales can account for an additional 20 units or more a month!
A true equity data mining tool takes the power of the data held in your Dealership Management System (DMS), accounting for total sales history, and combines that with service history, current inventory, current wholesale values, as well as national and regional rebates and incentives. Managers can provide this data manually by pulling finance and lease deals over the past few years and then identifying qualified customers who, with no money down, could lower their payments. Many of these customers can purchase a newer vehicle for less. Equity tools provide a much faster and easier method to deliver a daily list of invaluable leads, which are calculated by combining:
- Original sales contract
- Calculated payoff while taking into consideration refundable F&I products
- Current book value for each vehicle based on model, mileage and market conditions
- Specific term and rate based on buyer history
- Best match to your current in stock inventory
- Customers buying habits
However, these calculations are just the tip of the iceberg. For years, many dealers were manually predicting a customers’ equity position by comparing the book value to the payoff. With the abundance of customer data, the “old school” approach leaves a lot to be desired. Do you think that matching customers with your current inventory would result in more sales? Would giving your sales managers everything they need to desk deals make the buying experience much more positive for you and your buyer? Are sales calls with a guaranteed advantage for the customer going to drive even more business? In my experience from working with hundreds of auto dealers across the country, equity tools provide all of that and more.
Some would say you should not talk to a customer that is upside down by a few hundred dollars. Why not? An intelligent equity tool will uncover upside down customers that you thought were not important and create even more opportunities. These equity tools identify available rebates and incentives to get the customer even or better yet, right side up. So again, why would you not contact these customers?
Auto dealers are trying to find ways to make the most out of what they are spending. With sophisticated technologies out there it can make an auto dealer’s life much easier. The importance of an equity-mining tool these days is imperative. It is a great way to find customers who are not currently in the market and push them into it. After finding customers who can buy today, start thinking about ways to market to them effectively. This is a way to intelligently discover new business opportunities in your highly-qualified equity customers. Start generating even more business from every customer today. Stop focusing on just the tip of the iceberg; what you cannot see under the surface has far greater potential!