How B2C Digital Leasing Can Leverage Car Dealer Sales
In Mexico, there are 11,312 active points of sale offering all types of transportation equipment, from commercial vehicles, brand dealerships, ANCA car dealers (used cars), trucks and motorcycles,according to the Directory of Car Agencies in Mexico. The states with the highest number of points of sale is Jalisco with 908, followed by the State of Mexico with 864, Mexico City with 787 and Nuevo Leon with 704.
If we only consider the brand dealerships, there are close to 1,800 in the country with an approximate salesforce of 28,000 people, many of whom have more than 20 years of experience in this industry. For all of them, the pandemic had a notable impact. They found themselves unable to carry out their physical work and had to appeal to digital alternatives, which in many cases did not exist.
After two years of the health crisis, we are witnesses of the impact that digitization has brought to our everyday lives, and that ever since has been strengthened by new technologies. In fact, the consulting firm Deloitte published a report indicating that both sales modalities, physical and digital (omnichannel strategies), complement each other and will have to go hand in hand with the business strategies of organizations.
In this context, digital platforms are emerging in the automotive sector that seek to facilitate and support the work of car dealers and the end user. Among the main factors that influence the success of a salespeson is having fast response times when in front of a “hot client,” agility in the onboarding and approval processes and top security levels when following up on the financial operation.
Being able to meet your prospect/client’s expectations with a clear and immediate quote (online or in the dealership) and having a rapid response on a leasing plan for approval are factors that a dealer will appreciate greatly. Also, the fact that your client can upload the documentation digitally by himself once his leasing plan has been approved and obtain a quick response for the plan has a really high value. All these factors determine the customer's purchase experience (CX) of the chosen product.
This CX is critical for success. Statistics show that for every 10 customers who enter the sales floor, 8 buy a car, but always keep in mind that customers are also looking for the best financial plan to buy or lease a car ( have access, for example) and in that arena of concern, the fastest or simplest will prevail.
Another key element when looking at sales consultants is training. Lease plans are not top of mind for the general public nor on sales floors, so it is a basic requirement that sales teams understand the leasing options so they can offer them to their clients. If a salesperson is unaware of a product, he simply won’t offer it; but instead, if he is well trained and knows the benefits, then he will be able to offer a very powerful alternative to a loan.
In the last couple of years there has been more openness toward leasing services in general, and also by the sellers themselves who are already familiar with this type of financial service. The economic context, car inflation and high interest rates open this alternative to customers willing to consider this option, so that they can have better plans for accessing a new or used car.
In terms of sales of new cars, and specifically in the last year, we have seen clear growth in leasing services. The most recent data reported by the Mexican Association of Automotive Dealers (AMDA) and the Mexican Association of Car Rental Companies (AMAVE) shows that the share of leasing in total financing for the acquisition of new vehicles has grown. Of the 504,652 units placed as of the third quarter of 2022, leasing had a 7.5% market share, while in the same period of 2021 it was 6.8% of the 482,798 financed.
Nine months ago, we launched BitCar as a digital platform that enables our users and clients to explore, approve and sign for a leased car. Now, in this favorable context, we are reaching out to car dealerships in order to contribute to and leverage their sales with our digital platform and leasing solutions, which do not require an up-front payment, offer a low monthly payment, and give customers the opportunity to access a new or used car without losing money and solvency. Connecting both platforms will result in a very interesting option for clients and dealerships willing to consider our leasing products, empowering them by bringing new options to the Mexican market.