The belief that advertising competitive prices for new vehicles online is fueling a race to the bottom simply isn’t holding up under analytic scrutiny.
An AutoTrader.com digital audience analysis of over 6,605 new vehicle sales across 1,000 dealerships showed:
• New cars priced below MSRP get 34 percent more page views than new cars priced at MSRP
• Dealers who priced their new vehicles below MSRP sold 20 percent more new cars than their counterparts who used MSRP instead
• Buyers traveled an average of 10 more miles to dealers who listed their news cars below, rather than at, MSRP
“Having an effective pricing strategy online doesn’t equate to a race to the bottom—it results in winning the race to the consumer,” said Scott Hernalsteen, senior director of enterprise analytics at AutoTrader.com.
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