You are 4 clicks away from the best new cars deals on the Internet. Definition veh·i·ko /ˈ vehi-ko / Verb: Vehiko is ensuring buyers the lowest possible price on a new car while providing dealers with a guaranteed sale in an easy‐to‐use and efficient web‐based reverse auction platform.
A better way to find car buyers online has long been needed from the dealers’ perspective. As digital marketing expert Brian Pasch writes:
“Most car dealerships are paying ‘car enthusiast’ sites $20‐$25 per lead every time a person asks for a quote on a new/used car in their zip code area. These third‐party leads normally have a conversion rate between 5‐10% and cost dealerships on average $350 per car sale in lead costs and hundreds of additional dollars in labor pursuing non‐productive leads.
“When dealing with third‐party lead providers, there is no way to easily verify if these
purchased leads have been sold to other local dealers. There is also no way to validate what percentage of the leads are bogus. If you ever have purchased automotive sales leads, which convert on average no better than 10%, you know that many leads can have email addresses that never reply when you send out a quote. With the auto industry margins under pressure, dealers need to create a sustainable and cost‐effective Internet lead generation solution which they can control.
At last count, there were more than 50 companies in the business of automotive lead generation. They buy the clicks and sell them to aggregators, such as Dealix, Autobytel.com, and AutoUSA.com. The aggregators then sell those leads to any one or a number of the 39,708 new car franchised dealers in the United States (Automotive News ).
Lead Generation Is Broken for Dealers and Customers business of automotive lead generation.
The lead generator’s incentives
are not aligned with those of
either the dealers or the buyers.
The assumption with lead-gen is that a request for a price quote means
the customer is a serious buyer. In fact, the numbers say differently.
“it’s the model most likely to move things forward in a positive direction,
by making the car buying process more enjoyable for consumers and more effective, efficient and productive for car dealerships – a win-win situation for all involved.”