Why should I worry about it now?
I am selling enough to get by.

If you think you might agree with the above statement, You'll want to read this!

In 1929, the "Classified Advertising" Section of the newspaper was the only means of advertising. Most Retailers and Advertising Executives did not feel that Radio was a worthwhile means of advertising as many people weren't able to afford a radio. Likewise, it wasn't believed that listeners would be receptive of commercials when broad casted via the airwaves. Unfortunately, these same thoughts are often felt about advertising "online" as computers cost more than the average television or radio.
 

Today, the "Classified Sections" are much larger. However, this may not always be the case. As the Internet progresses, newspapers are likely to become smaller. This is being said as technology has rapidly moved to the point that "twisted pair" copper phone lines are no longer the only means of transmitting data for the Internet. DSL phone lines and other high speed hardware such as Cable Modems, Satellite and Wireless Radio have placed an "information vehicle" (the computer) in the hands of millions of people.

High Speed Internet is now within reach of millions of people who, just a few months ago, had no practical means of getting large amounts of high speed data into their homes. Major Media Companies such as Warner Cable, Cox Communications (A "Fortune 500" company and owner of Manheim Auto Auctions, Auto Trader Magazine, Autotrader.Com and numerous Newspapers, Radio and Television Stations) and other companies, such as MGM and Blockbuster Video have already made large commitments toward getting ready for this market. In fact, these companies are "planning ahead" not just to "gain" the new market. It is likely that such planning may help to avoid a potential loss of their market share. MGM & Blockbuster and a few others, have already moved forward by offering high speed downloads for Movies, Games, Educational Courses, etc..
 

In the future, Newspapers are most likely to be read online. It's safe to assume that almost all Newspapers in Metropolitan Markets have some sort of online media. Due to postal and delivery costs, Online Media such as Digital Newspapers make good economic sense. Small markets which can't afford the high publication and distribution of printed media, gain a faster and more economical advantage over the latter. Online "digital" media isn't the only thing to consider. Satellite Radio, Internet Radio and other types of digital media must also be looked at by "forward thinking" car dealers and advertisers.
 

The advances in technology have moved to the point that a computer will soon be a major part of a family's everyday entertainment and education. High speed connections and advances in the micro chip industry have not only allowed computers to play DVD's, the changes have allowed large scale companies such as MGM, Block Buster to enhance the way consumers do things. These changes will cause consumers to spend more time on their computers and less time elsewhere, such as in front of their television sets, listening to conventional radio or reading printed media such as magazines and newspapers. In short, "people are going to change the way they get entertained, educated and otherwise informed. The Big Guys know this and they are spending millions toward getting ready for it.
 

In other words, the "Digital Train" has left the Station. "It's not going to back up to come get you". Dealers need to jump aboard. Now! If you are wondering if this can be proved, the answer is, yes!
 

J. D. Powers Surveys prove 16 year old children play a major role in helping their parents make "purchasing decisions". Whether or not the 16 year old is the buyer is not the issue. The issue is the 16 year old can influence the decision making parents. This has always been a well respected fact within the automobile industry.
 

Surveys also show that at least 80% of all 10 year old children have had some contact and knowledge of the Internet. Kids are exposed to the Internet as a research medium at school, at home and in homes of friends or relatives. In six years that number will increase substantially. In six years, those, 10 year old kids are going to be 16 years old. And very Internet wise! A study done in part by the Walt Disney Internet Group, finds that 94% of all women are using the Internet as a great tool/resource for finding answers they have about their children and family. The web isn't just a tool for finding articles about family guidance and ideas. It's a tool to find information such as, how and where to buy a New or Used Car. Smart managers know, Women Buy Cars!
Over 76% of people who are actively (in the market) shopping for a major purchase such as an automobile are having some contact with the Internet. Shopping comes in many forms such as the gathering of product knowledge, searching for listings for retailers, and sites which offer related products. Non-biased sites which offer technical comparisons are also often visited.
 

Generally speaking, Buyers are doing their "tire kicking" online. Thus over 80% of online customers, who arrive at a dealership, buy from that dealership as they already know what they want and a realistic price they should expect to pay. They aren't still shopping, they are ready to buy.
Salesmen shouldn't be afraid when an Internet customer walks in with a "Kelly Blue Book" evaluation report on their trade in. Such a report doesn't show whether the trade in will need a paint job, tires a new windshield or emissions inspection. Salesmen who meet an "Internet wise" customer are not likely to be greeting a "shopper". These lucky salespersons will be making contact with an educated "buyer" who has already kicked tires. Such buyers aren't going to waste a Saturday shopping at 6 different dealerships. In short, Internet Shoppers are merely "no-nonsense" shoppers who are looking for concise and relevant information regarding vehicle availability, services offered such as financing, servicing for warranted repairs and pricing. Pricing is mentioned last as, contrary to common belief, price is not always the most important issue. Wise Managers already know Customers will often pay more, provided they are handled properly.
 

The issue of "proper handling" can easily be dealt with during the first "reality" or person to person contact with the customer. Auto Trader representatives advise that "warm and fluffy" emails aren't the thing which prompts a customer to buy. It's a customers' confidence in knowing their needs can be fulfilled while getting a "fair" (not necessarily the cheapest) deal. In fact, Auto Trader advises that a dealer should make emails short and to the point. If a customer asks a reasonable question, the dealer should answer it, but try to make it as short as possible. People aren't likely to take the "warm and fuzzy approach" as being sincere. In the "reality world" of car selling this makes good sense. All sales managers know of thousands of cases where a salesman has "talked their way out" of a sale. The same holds true in the "virtual world" of email. Making the email short brings the prospect closer to entering the "reality" world of telephone contact or a visit to the show room. When possible, an ideal email should contain nothing more than the words. Dear Mr. Customer, I have the vehicle you want. Call me! It should be noted that all emails should always include the Dealers' phone number. When possible a Direct Line for the manager or salesperson's Mobile Phone Number is the best way to get the customer into the show room. Not only does this make is "personal" it brings the customer/buyer "out" of the "Virtual Reality World" and "into" the "Reality World".
 

This information on handling customers holds true for both new and used car dealers, but in slightly different ways. Although, the Internet can prove to be very "workable" for new car dealers as all the products are new and equipment packages are easy to analyze and compare. However a major drawback to this is there may be a greater need for the "salesmanship" in the sense that a new car dealer must prove to the buyer, theirs is the dealership a customer should buy from. In other words, a new car dealer can't simply place an advertisement online and wait for the email to arrive, the phone to ring or the customer to walk into their showroom. There's always a need for good sales skills and the personal contact of a telephone. Dealers should pay strict attention to the way in which Internet calls are handled. A buyer who has kicked tires and done his/her/their homework can easily get lost or "turned off" when switchboard operator places them on hold or an overly aggressive salesperson picks up the call. That's why Dealers need to plan ahead of time to assure a dealership-wise caller receives better than average treatment. Car managers already know this. Fleet Departments have already proved the success of such treatment.
 

If sales managers have a well made plan, it will also include measures to monitor the web activity of their salesmen and incoming email and phone calls. Incoming email and calls do not necessarily need to be answered by an "Internet" person to become effective. In fact, they can be answered by any "informed" salesman who respects the "informed" caller. The only real need is they should be monitored in order that the manager can determine "Measurable Results". In other words, the managers need to know what's going on in order to make sure the Customers' are being taken care of in the right way.
 

One means of monitoring such activity is the using of services which are offered by companies such as www.whoscalling.com. Such companies offer methods to track incoming phone calls. Information provided by such companies can be easily analyzed in order to help the dealer determine the effectiveness of his/her advertising and customer follow-up. Such information is invaluable and very cost effective for dealers who spend thousands of dollars on advertising. Such tracking allows the dealer to "fine tune and focus" their ad placements. Their Caller Identification Programs also provides information on phone calls made to the dealership on holidays and after hours. Dealers may be surprised to find out how many leads they are missing because people are calling before or after business hours.
 

It's always been a fact that car dealers must make a thorough analysis of their competition and be constantly ready to make rapid adjustments in order to show the customer the benefits of buying at their dealership. One better way to explain this might be to say that a new or used car dealer must "look" at their competitors' advertisement so they'll be better able to make the proper adjustments in the content of their own advertisements. Imagine the benefits a new car dealer would have, if they could be able to see what type of advertisement their competitor was placing in the weekend paper, but still have the opportunity to change their ad. Dealers who have a rapid ability to change items on their web site will have this advantage. New Car Dealers that only have their web site up dated on a monthly or weekly basis will not have this advantage. In other words, their tires aren't likely to get kicked because they may not have proved value to the online shopper.

Although it's been previously mentioned that "price" isn't the only buyer concern, offering a "same priced vehicle" (But, let's say, with a little more equipment or better finance rate) will give online managers a better edge. "Knowing what your competitor is offering, (and being able to quickly change your website for the purpose of offering "just a little bit more") will give you a tremendous advantage.  In other words, give the customer "some little something extra" (not necessarily a lower price) and you will likely be giving them "just enough reason" to chose your dealership over the competition.  (If none of this makes sense, try studying Infomercials which employ similar techniques. Such as, "But wait, there's more!" Used Car dealers might consider the Free 90 Day Extended Service Plan which costs them only $200.00 may enable them to maintain a gross profit of $500.00 more. (When compared to making a sale "without" such perks.) This is another way of saying, Give some little something away to avoid "giving up" your profit. Not only does this make "mathematical" sense,  it gives the customer a "reason" to buy.  In other words, don't look at this as "giving up" $200.00. Look at it from the stand point that you are "gaining a sale". In before closing this topic, I would like to suggest that such "perks" might be most effective if they are "withheld" as a closing tool. (But that's not all!)  Finally, one of the simplest and most cost effective tools is a Vehicle History Report such as those offered by CARFAX.  Dealers might be surprised how many deals can be closed by proper use of such a report.  Not only does such a report add value, it can often be used as a tool to get customers into the dealership where a printed copy will readily available.

As mentioned, over 80% of online shoppers buy from the first dealership they go to. Since customers can kick the tires online, they are well equipped with all the tools they'll need to make their purchasing decision. In order to stay "on top". Web sites should be constantly monitored to make certain they aren't outdone by a savvy competitor. A Dealerships' Managers or Advertising Decision Makers must make a constant evaluation of the web sites of their nearby (within 100 miles) competitors. (The 100 mile radius is mentioned as people will often drive at least 50 miles to do major shopping. They are likely to drive 80 miles or more. In other words, Managers must know what the online customers are likely to see in order to be able to make the proper web site advertising adjustments. As mentioned Price isn't the only issue. That being said, Managers need to be certain that "their" price proves value over the competition. If such is properly done, they should have no problem in getting customers into their door. (Customers will often travel farther for a "hard to find" specialty vehicle such as a sports car or 4 wheel drive.) Finally, on this subject, I would like to suggest that Managers should make certain that salespersons make their vehicle descriptions are accurate and to the point. Too much sugar coating will do nothing more than give the customer a sour taste when they arrive at the dealership and discover that something about the vehicle was misrepresented. As mentioned, Warm and Fuzzy Approaches are not often taken as being sincere.  (On the other hand, make certain they don't "over  emphasize" a small scratch as being an "ugly scrape".  Internet Photo Servers are an excellent way of conveying an accurate description to a prospective customer. Used car managers may want to consider placing a key person in charge of the task coordinating information for accurate vehicle descriptions.  My brother and I are blessed as our Secretary enjoys getting outside to photograph our  vehicles. The photographic process usually takes less than 10 minutes per vehicle but another 20 or so minutes are usually needed as she also manages the CARFAX reports and uploads the pictures to our server. She further prepares the thumbnails gallery which is sent to prospective customers.  We are thankful for having dedicated employees.

What's the big deal? All of this means nothing as the customer can't hand me cash or a check if they are online. This answer is wrong!
Although a dealer may not be able to "physically" accept cash online, they can receive a "deposit", via Electronic Funding through various companies such as eBay's PayPal  (www.paypal.com) or Western Union's Bid Pay (www.bidpay.com). One simple way is to make arrangements is by Credit Card. Serious buyers should not have a problem with placing an electronic deposit in order to hold a vehicle or process a credit application to arrange funding.  (Note: Dealers should be aware of Online Scams which involve Counterfeit Cashier's Checks.  
 

If you are thinking that you don't have the time to answer emails all day long. Or that you can't afford an Internet department.
You have made a valid point as such statements are very true when talking about small independent dealers. Small dealers shouldn't be answering emails all day. They should be selling cars. If small dealers and sales managers have a well made plan. It will include measures to monitor the web activity of their salesmen and incoming email. Incoming email doesn't necessarily need to be answered by an Internet person to become effective. As mentioned, it can be answered by any salesman. The only "need" is that it should be monitored in order that the manager or dealer can determine "Measurable Results". In other words, the managers need to know what's going on in order to make sure the Customers' are being taken care of. Sales Managers who don't want to opt for the expense of an Internet department (and they really shouldn't) need to do nothing more, than manage the sales process from beginning to end. If you are thinking that you are too small or Independent Dealer who doesn't have a computer or the knowledge or time for this and don't think  you can afford this high technology stuff.  There is still hope. What can you do?
 

Many Used Car Dealers do not have computers and those who have computers may not have web sites, online access or experience. This should not stop the dealer as he/she can easily advertise online via listing services or computer services companies. Such listing services will come to a used car dealers' location (usually on a weekly basis) to take pictures of inventory, place ads online, and update the vehicle listings. Dealers who do not have computers can have their ads placed by such listing services on web sites such as www.autotrader.com. Emails can easily be converted to transmit via Fax. Some listing and computer services companies can even answer a dealers emails 24 hours a day, 6 days per week as the Texas Blue Law Still Applies to motor vehicle sales.
 

Online advertising has rapidly proved to become more cost effective than Newspaper Advertising in Large Markets. Let us not forget, the Internet can be viewed world-wide. Dealers will be surprised to find out that the 4 wheel drive (the one they thought they'd never sell) may bring top dollar from a customer in Montana.

My brother/partner and I are thrilled that online advertising has allowed us to play on a level field when compared to larger dealerships with large advertising budget. It is a well known fact that a well run independent dealership is more efficient and is likely able to offer more value to the customer. The Internet has allowed a way prove it by allowing us to represent our cars in the same way the big guys do.

Before closing, I would like to give credit to the folks at AutoTrader.Com who have given me a lot of insight and made training available to me. Credit should also be given to all of my fellow dealers and friends who have joined me in learning. I would like to give a special thanks to my tech savvy wholesaler friends, the Huckaba Brothers, who have helped me with technical issues, picture servers, wireless gadgets and networking support.

In closing, I would like to say that I could go on and on about the advantages of online advertising. It's very exciting. Simply stated, I would just like to recommend that you try it, if for no other reason than to say, Not only is it fun, it helps to pay the bills.