Want to Maximize the Incentive of factory Incentives?
BDC United’s Industry leading methodology maximizes the incentive of factory incentives to convert more leads to appointments for many of the top dealerships in the country.
Incentives have increased year over year compared to this time last year, but they remain “historically low” compared to traditional offerings and the total savings they represent as a percentage of the purchase.\
According to Auto News, “ The average incentive per new vehicle rose an estimated 59% to $1,599 last month from April 2022, J.D. Power and LMC said, while incentive spending as a share of sticker price was tracking at 3.3 %, an increase of 1.1 %age points from April 2022”. …
However, KBB points out that “While April incentives increased by $170 month over month, they remain at a historically low level. For comparison, incentives averaged 7.8% of ATP in April 2021 and 9.0% in April 2019. “
The problem created by this sliding percentage of total value to the consumer is that today’s educated buyer is less incentivized by the current offers because they are not enticing, and they inspire little fear of missing out. Smart shoppers are aware that the value is lower than usual, and that the value is likely to increase as prices come down and inventories build up, and the OEM’s are in turn incentivized to move last year’s vehicles.
Incentives are most effective when they both promise a win, and help avoid a loss. As the current factory offers do not represent the same value that they have in the past, consumers are not afraid of the downside of missing out and will often opt to wait until prices come down and incentives go up.
“The idea that our behaviors are influenced or reinforced by external factors is credited largely to psychologist B. F. Skinner in 1938 and based primarily on three environmental events: deprivation, satiation, and aversive stimulation.1
“People are pulled toward behaviors that lead to outside rewards and pushed away from actions that lead to negative consequences.”
BDC United’s proven ability to maximize the potential of any lead employs the psychology of incentive to engage shoppers and leverage factory incentives as a call to action, despite the low historical value. Scan the Code below to find out more about how BDC United can help your dealership maximize the incentive of incentives to convert more leads into appointments.
https://www.autonews.com/sales/april-us-auto-sales-toyota-ford-honda-hyundai-kia-rise
https://www.verywellmind.com/the-incentive-theory-of-motivation-2795382
https://www.coxautoinc.com/market-insights/kbb-atp-april-2023/