Best PracticesOpinions & Advice

Could you tell me about Dealix 3rd Party Leads?

Could you tell me about Dealix? What do you like about them? What do you not like about them? You say good things about AutoUSA. Are there others you like? And why? Thank you for being there for us buddy!

-M Curry

M. Curry,

Thanks for your feedback. I often wonder how many people are out there visiting my site. So when I get an email from someone such as yourself, I know what I have here is helping others, and that’s what is all about.

I don’t endorse ANY 3rd party lead vendors. I think you need to test them all to see which ones work best for your dealership. I have found that demographics, the make of cars you’re selling and your cliental can have a huge effect on which 3rd party lead vendors can send you the most qualified customers.

For example; I was at a Subaru dealer and was buying leads from Jumpstart. We were closing an average 20% of the leads each month. So when I accepted the position here at the Benz dealer, I brought Jumpstart on board right away. I was really disappointed to fine that the quality of leads I was now getting from Jumpstart were nowhere near what I was getting for the Subaru dealer.

One thing you have to do before you can blame a 3rd Party lead vendor is to be honest with yourself; are you maximizing every lead? Are you calling that customer as soon as the lead comes in? Are you making the number of phone calls and emails it takes to get the customer to interact with you? You do have to be fair if you’re going to hold the vendor liable.

Something else to consider; are you not only tracking the cost per lead, cost per sale but also the overall ROI of that lead source. Maybe your only closing 5-6% of a vendors leads but you’re getting a higher average gross from that customer.

Returning to your question, “Could you tell me about Dealix”. I’m sure you are aware that Dealix is now owned by The Cobalt Group and they do more in-house SEO then the other vendor. They have several sites (invoicedealers.com) they use to generate leads. One that is strong in the search engines right now is their www.dealernet.com. If you scroll to the bottom of the homepage you will see it’s owned by The Cobalt Group. Dealernet.com is doing what many sites are, converting 1 consumer into several leads by funneling the customer into a process to get a “price quote” for more then one vehicle (and sometimes as many as 6, automotive.com is guilty of this). You can see evidence of this in the photo below.

Dealernet_choose_2

Another irritating factor, these websites encourage the customer to apply for financing, extended warranties and insurance; taking away the dealers opportunity to make money in the F&I department.

Dealernet_financeoptions

Something that I have tried to do in the past, but with no luck, before signing up with a lead vendor, ask to get a copy of each and every website they are buying their leads from. Many of these lead vendors are buying leads from:

  • carpricesecrets.com (a personal favorite)
  • carsbelowinvoice.com
  • whypaysticker.com
  • newcarinsider
  • localcarprices.com

and several other websites. It’s your decision to decide if you think these websites are producing valuable leads. For me..No..but again, the demographics for the vehicles I sell can be different then yours. I’m sure these websites produce a decent lead for volume dealers with a good second chance credit department.

M
  • M
    M.Piccolino
  • August 22, 2006
Regarding Dealix and the example you showed. I have recently experienced a larger rate of those comparison Leads, of which many customers have expressed annoyance of why I would be calling since they didn't request info on my vehicle.( dealix finds no problem with the comparision box being checked because the customer if wanted can uncheck the vehicle and proceed, but you can also just proceed) How can I overcome this, because volume of leads increases but quality of lead has gone in the garbage. Please give me a couple idea's I have a meeting with them regarding this Thursday to discuss. Any Help would be appreciated.
M
as the ISM for an import dealer in a very rapidly growing area, I have used dealix for the past 8 months, and have had great success with them. As your answer states, i am sure it has to do with clientele, type of vehicle, etc...but the bottom line is still follow up, follow up, follow up, along with rapid first response, and having done that, we are closing a phenomenol 23% of our dealix leads!
S
I just now emailed my local Dealix rep (Georgia) and asked for a list of sites they use to get leads. She said she cannot give this to me, because there are over 200 sites and they are going to announce some "Big" thing soon regarding the quality of there leads. She said that this announcement would involve even better quality of leads. She also quoted JD Power and Assoc. as saying they are the best. I sensed a bit of standoffishness and "you should know we are the best because JD Power says so" attitude. I have used Dealix selling Nissan and later Chevrolet. It was fairly good with Nissan leads and below average with Chevrolet leads.

I am disappointed that my ex-rep from Dealix feels the way she does about helping me to make a better decision about where I get leads from.

There again, I feel this is a money issue. Companies seem to be of better service when you spend alot of money with them. And when I say alot I mean $20,000 per month verses $1,400 per month. You can bet the guy spending $20k would get that list of sites.
A
I agree with Jeff. You should be testing out a handful of lead providers at a time, until you find the right mix for your specific business model. There are going to be good lead providers and bad ones for you. Dealix may be the greatest thing since sliced bread to the dealers who were polled by JD Power, but might be the worst thing ever to those who were not polled.

That brings up another question - who is JD Power polling? I've been polled once for CarsDirect, but I figured that was only because CarsDirect was providing them names. I often wonder how skewed these "awards" are. When I was with CarsDirect, we were also included in those "Top Dealer" lists all over the place - as soon as I pulled the plug we have not been featured on any of those lists.
A