According to a recent AutoNews article, and much of the automotive industry, CarMax returned to buying leads this month after a 16-month break-up with AutoTrader and Cars.com.
Despite the rising costs and dwindling dealership brand presence, about 40 percent of CarMax’s 141 stores are now back up and running with Cars.com. And, quite possibly though not confirmed, the same can be said for AutoTrader.
Senior automotive analyst at Bloomberg Intelligence, Kevin Tynan says..
“We’re heading into a robust pre-owned market,” Tynan said. “It makes sense to spread (vehicle) exposure as widely as it can.“
I’m not sure we buy that….
CarMax wasn’t alone in its endeavor to quit third party leads. AutoNation didn’t go cold turkey, but as it builds the foundation that will rely on brand awareness over third party lead providers, the giant has been pulling away from buying leads. Check out what the Refreshers think about third party leads.
The U-Turn discussion is already underway over in the forums and waiting for your insight.
What is missing, if anything, in the research process that is being found on AutoTrader or Cars.com – and, not on YOUR dealership website?
What are you doing at your store about third party leads? Are you actually measuring their worth, and I mean, truly measuring?
If your store has made the leap tell us about your journey…