The Value of a Brand
Having been a Dodge dealer for 22 years I realize the value of a brand. During that 22 years the value of my dealership varied a great deal depending on how Dodge was doing. The fluctuation was huge and ranged from zero to several million dollars. Some brands remain strong all the time but most will suffer through fluctuation like the Dodge brand. Ford and GM brands have greatly fluctuated. Even Toyota has not been immune due to recent quality problems. Almost all dealers understand that the value can vary depending on how that brand is doing at the time.
At AutoStar we are building a national brand for used vehicles. We have a unique brand because we offer the only new or used car that offers a Lifetime Engine Guarantee as well as lifetime brake pad and wiper blade replacement. Smart dealers, like Wendell Hardy from Sarasota, Florida who spent the last couple of days here at AutoStar headquarters, understand the value of having a nationally branded preowned vehicle.
Why Do I need a Branded Used Car?
Not so smart dealers just don’t get it! They ask the question, “Why do I need a branded used car?” There are many reasons why the AutoStar brand is so valuable. With the EverStar Lifetime Engine Guarantee and Lifetime Safety Features, the perceived value of a vehicle with that protection is $1500-2500 higher than a vehicle without that protection. To upgrade the EverStar program to a more comprehensive extended service contract is easy. Many of our dealers are enjoying 70% or more extended service contract penetration. The most important reason to sell the AutoStar nationally branded used car is that customers must come back to the selling dealer every three months or 3000 miles, whichever comes first, for all scheduled maintenance to maintain eligibility for the EverStar Guarantees. This equates to huge service absorption in AutoStar dealerships.
It’s a No-Brainer
Let’s see now; AutoStar dealerships sell more cars because of the unique brand, the dealers make more gross profit per car because of the perceived value and the dealership sells more service and parts because of of the EverStar Lifetime Engine Guarantee and Safety Features. It seems like a no-brainer to me. I would want to be selling the AutoStar car! Smart dealers get it, the not so smart do not…
Why Do I Need a Nationally Branded Vehicle?
As Chief Operating Officer of AutoStar National Dealer Network I am often asked by potential dealers “Why do I need a nationally branded vehicle?” My initial answer to that question, at least in my head, is that is a stupid question. Dealers who have been terminated by GM and Chrysler already know the power of national branding because they were part of a national brand. These dealers enjoyed the collective buying power of Chrysler and GM on parts and all other infrastructure although the manufacturers did not pass on all the savings to the dealer. Why not use the leverage of a national used car brand?
The Power of Partnering With Strong Brands
There are many advantages to marketing an AutoStar vehicle. AutoStar National Dealer Network is supported by and partnered with some of the strongest brands and companies in the automotive industry, including Shell Oil and Genuine Parts (NAPA.) Both are listed on the Fortune 500 as two of the most profitable businesses in the world. In addition to Shell and NAPA AutoStar has strategic alliances with several other strong companies including Driven Brands, the parent company of Meineke Auto Repair Centers and MAACO Paint and Body Repair shops. We put complete infrastructure back in to the dealership just like the dealer had with their former brand but for way less money. Smart dealers get this right away and jump on board with AutoStar.
When a customer buys an AutoStar car, they get the backing of the strongest companies in the world. That is why our dealers are selling peace of mind to the AutoStar customer and not just a car. The customer gets a Lifetime Engine Guarantee and lifetime safety features, including brake pad and wiper blade replacement. The EverStar car offers the customer unparalleled protection and gives AutoStar dealers a unique vehicle in the market place. No new car dealer has it and no independent used car dealer has it.
Dealers tell me that they can do everything we do at AutoStar but they can’t. The secret sauce is the strength of our partnerships with the best companies in the business. All of our deals with our partners were based upon us having the largest used car network in the world. So the pricing that is available to AutoStar dealers for parts, bulk oil, shop supplies, computer systems and F&I products is by far less than any pricing they can get on their own, even if the dealer has ten locations. This alone is worth a dealer’s investment in an AutoStar dealership. Call me for more information at 877-265-5123 and ask for Ken Zangara.
