When seeing a customer leave the lot to go secure liability insurance, Michele Somich knows there is a risk of the sale falling through.
“Some of those customers will never be back. We call them be-backs, and they will never be back,” Somich said. “They get in the car and they decide to keep looking, or maybe they get distracted and go home. Maybe they come back a few days late,r and you have to start all over again.”
Working with their collateral protection insurance provider, Somich and The Car Store in Piney Flats, Tennessee, began offering liability insurance at the time of the sale online with the ability to set up micropayments. The offering has allowed the dealership to increase sales and profits.
“It’s been great for us. It’s helped us close more sales because the customer doesn’t have to leave the lot to get liability insurance,” Somich said.
Somich shared the tip during the Dealer Roundtables at the NIADA BHPH Dealer Forum and again during the Best Ideas session in the closing session. Dealers then voted her tip the best of the show, earning her a free registration and hotel stay for the NIADA Convention and Expo in Denver from AutoZone.
“I’m so excited. We’re looking forward to it,” Somich said. “It’s affirming when you’re self-employed and you come to these conferences. It really reinforces what the hot topics are when you hear from experts and get all the best practices as quickly as possible. You don’t have to learn everything from the school of hard knocks.”
The liability insurance offered can be for a term as short as seven days and cost as little as $30. Somich said the customer can continue with the coverage and pay for it weekly or monthly.
Access to the insurance during the sale has allowed the process to continue uninterrupted.
“We close more sales,” Somich said. “We’re averaging at least one more per week.”
It also helps the dealership sell more CPI coverage as a profitable add-on.
“It positions us to sell CPI, which drives profitability,” Somich said.
Six other best ideas were presented during the closing session.
Jenne Madrueno of BHFC Financial Services explained how they offer Amazon gift card giveaways to keep customer information updated. Thomas Rainey of Rainey Used Cars suggested ride-alongs with the service writer. Jason Holmes of True Value Auto Sales spoke on using an AI tool for acquiring vehicles. Ben Brum of Carsmark described how they are waiving first payments as an incentive. Maria Pericaz of Express Auto Financial went through how they have created a local referral network. Keely Dishman of iGo presented how the dealership utilized a culture index.
