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…
