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Why Auto Dealers Choose to Buy Leads

Posted on: January 29th, 2012 by credit

Buying auto leads enable auto dealerships to make sales and increase profits.  Auto leads contain relevant details about a prospective car buyer such as the name, address and contact details.  Hence, these leads make it very easy for dealers to contact a potential customer.  If the auto dealer pursues the lead and makes the right offer, a sale can be had.

Auto dealerships that rely on auto leads to make sales spend a significant amount of money when purchasing leads from auto lead generators.  The expense of buying leads is certainly less than the cost of traditional marketing such as radio and television advertising, but the purchase of leads still require a hefty sum from auto dealers.  It must be noted that auto dealerships actually have the option not to buy the leads because these can be rented.  They can spend less money on leads by renting instead of buying.  One may be inclined to ask, “Why do auto dealers buy leads when they can just rent?”

Without a doubt, renting auto leads would be cheaper for any auto dealership.  They can save a lot of money by just paying a sum for the temporary use of an auto lead, or the temporary access to a potential customer’s details.  However, while renting leads present the opportunity to save money, it can also deprive an auto dealer of the opportunity to make more money.  Renting means there are others with access to the leads.  If others have access to the leads, this means that the chances of sales conversion for the auto dealer that rented the leads will be reduced.  Indeed, by renting leads, auto dealers have less chances of making a sale and generating revenue.

On the other hand, it would be very beneficial for any auto dealer to buy leads.  When an auto dealer buys auto leads, it is investing its money on something that can bring forth much profit.  However, the leads that an auto dealer must purchase should be the exclusive variety.  Non-exclusive leads are also accessed by other dealerships, and the tight competition would work against the auto dealer’s goal to make a sale.  Exclusive leads are not accessible by others, and if purchased, only the auto dealer that purchased them can pursue the lead.

While it would be more expensive to buy leads rather than rent them, the money to be spent on them would be spent well.  This is because leads (the exclusive leads specifically) can increase the auto dealer’s return on investment.  Exclusive leads have higher chances of sales conversion, mostly because there is no competition to worry about.  The auto dealer is free to pursue to lead,  make an offer and hopefully close the deal.

Auto dealers that are interested to buy leads can do so from Approved Auto Leads.  The lead generating company has been a top provider of exclusive auto leads, and has served many auto dealerships in the past ten years.  Indeed, auto dealers looking to purchase leads to improve their profit margin need not look further than  Approved Auto Leads for what they need.

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