Can Daily Deals Really Work in the Automotive Industry?

The short answer is, “Yes”. The longer answer dives into the psychology behind buying a car and the mentality that car dealers need to adopt if they want to truly appeal to the modern shopper.

The “Daily Deals” phenomenon really started hitting its stride in 2009 when companies like Living Social and Groupon made an impact on the buying habits of US consumers. More people started buying the deal rather than simply the products. The concept was this: they had an opportunity that was temporary and if they didn’t act quickly, they could miss it. There were many who got hooked. It didn’t matter whether or not they really ever wanted skydiving lessons – there was a deal on it and they didn’t want to let the opportunity pass them by.

In the car business, the concept of daily deals is different. There isn’t really an attempt to prompt people to make a buying decision when they aren’t ready for it. Very few would think along the lines of, “I don’t really need a car, but this special is too good to pass up!”

It could happen, but it’s not likely.

On the other hand, those who are in the market for a vehicle often stay in the market for weeks, even months at a time. They are looking and researching regularly, which means that there’s a common thing that happens. They get fatigued. This is where the daily deals concept comes in. Often times people will get into a rut and get completely frustrated with the idea of buying a car, let alone the actual activities associated with doing so.

When people are looking for a triggering factor, whether they know it or not, the daily deal is an opportunity to push them over the edge. It’s often hit-or-miss; to make it effective, you have to have certain cars that are on the daily deal list and that list needs to change or it loses credibility.

Companies like Automark Solutions and others are giving car dealers the Daily Deals option and the ones we’ve spoken to have seen very strong results from them. It’s a concept that isn’t widely used at dealerships, which means that it’s not a commodity on dealer websites at this time. When people see the offers, they are more likely to check them out than a standard specials page that every dealer in America has.

They work because they’re not what car shoppers see on every website. They work because they really are deals. Most importantly, they work because the create the sense of urgency that is necessary when shoppers get fatigued with the process.