Auto buyers want hi tech service

The use of technology, such as tablets and computer displays, by dealers during the sales process can substantially improve customer satisfaction among new-vehicle buyers and support sales of finance and insurance (F&I) products, according to the J.D. Power 2015 US Sales Satisfaction Index (SSI) Study.

The study found that just 16% of dealers currently use a tablet during the new vehicle sales process. However, its research showed that, for both non-premium and premium buyers, use of tablets by sales personnel to perform such tasks as record customer vehicle needs, demonstrate vehicle features and display pricing information yields higher satisfaction with technology usage than when a tablet is not used (8.12 vs. 7.02 and 8.63 vs. 7.52, respectively, on a 10-point scale). In contrast, handwritten price quotes have a negative impact on buyer satisfaction.

F&I appeal

The study also found that satisfaction is higher among customers who are offered F&I options, such as extended warranties, pre-paid maintenance contracts and tire/road hazard protection.For example, among non-premium owners, satisfaction is 46 points higher when a dealer offers them a pre-paid maintenance contract vs. when they do not (788 vs. 742, respectively), and among premium buyers the gap is 26 points (827 vs. 801).

Moreover, when F&I product and pricing/payment options are presented on a computer or tablet screen, satisfaction is higher than when any other method is used, including printed materials, verbal quotes/descriptions and handwritten figures.

“With retail vehicle sales in the US in 2015 forecast to reach 14.2 million units and this positive momentum expected to carry into 2016, dealers face challenges in properly servicing a high volume of new-vehicle buyers who are increasingly tech savvy,” said Chris Sutton, vice president of the automotive retail practice at J.D. Power.

“Dealerships should understand that customers want and trust technology and that it can enhance efficiencies. Dealers that disregard it may risk being left behind in 3-5 years. Customers are experiencing interesting uses of technology in many of their other retail transactions—and now expect this in auto,” Sutton warned.

The so-called Gen Y, the single most impactful generation on all markets due to numbers and purchase power—are among the buyers flocking to car lots and now accounts for 29% of new-vehicle retail sales. Furthermore, average transaction prices for new vehicles exceed $30,000.

“There is every incentive for dealers to use the most effective tools available to satisfy customers and build a relationship with them during the initial purchase process. This relationship should translate quickly into future service business. Implementing tools and processes that meet the needs of Gen Y will ultimately benefit all consumers,” said Sutton.