Whitepaper: Car Pricing Lacks Transparency Featured

By Staff Writer February 20, 2019 605

A new whitepaper released by Cox Automotive’s Rates & Incentives group (CAR&I), “Optimizing Rebates & Incentives for Consumer Digital Retailing Experience,” pinpoints a lack of transparency and accuracy in the pricing and payment negotiation process as a main cause of friction between dealers and consumers that can derail a deal.

According to the 2018 KBB.com Incentives Survey, only 24 percent of shoppers are fully aware and researched all incentives. Historically, transparency into consumer incentives has varied. Changing customer expectations and shopping behaviors now make full transparency required.

The analysis looked at data from three competitive incentive providers, including CAR&I. The study found significant variations across the providers, ranging from $0 to $6,750 in pricing for the same vehicle, resulting in monthly payment fluctuations up to $122 per month for 60 months. The analysis also showed that both unnamed vendors incorrectly applied incentives for two vehicles, resulting in $500 to $750 in overstated incentives applied incorrectly costing dealers valuable margin.

These disparities have wide-ranging consequences for dealers, including a loss of credibility in pricing as well as a loss on deals and profit. It’s not just that consumers might walk away from one purchase. It can affect repeat purchases and referrals too. Pricing information must be perfect for digital retailing to build trust and transparency, and to improve the customer experience. This also means making accurate pricing available online.

Rate this item
(0 votes)
Last modified on Wednesday, 20 February 2019 13:51