carsales Finance Extension now provides key finance data to in-market consumers, reducing time to sell and increasing delist prices for a better bottom line 1,2
Two of Australia’s most popular prestige automotive brands have reported improvements in key metrics that pump up the bottom line after using carsales Finance Extension.
The carsales Finance Extension module is a highly effective and affordable tool that drives consumer awareness of options directly from cars for sale listed on carsales.
The innovative integration ensures that finance options are front-of-mind when car buyers are viewing individual cars for sale, be that in the early stages of their journey to ownership or when they are ready to enquire with a dealer.
Brands that activate Finance Extension on their carsales inventory enable their participating dealer networks to display weekly or monthly repayment figures, as well as current interest rates, alongside the Drive Away price for new and certified near-new vehicle listings on carsales.
MORE Make your listing work harder with carsales Finance Extension
With approximately 85 per cent of consumers browsing for a new vehicle on carsales yet to decide on a finance provider3, the Finance Extension module is a straightforward yet powerful integration proven to positively influence key metrics and sales results.
Improving key metrics
In 2021, carsales launched the Finance Extension module for two leading prestige marques.
In the case of Brand A, almost two-thirds of its nationwide listings were enhanced to include detailed dealer finance information.
The enhanced listings displayed a 22% reduction in delisting times and a $1088 average improvement in delisted pricing per unit1.
In fact, stock turnover times decreased by up to eight days1, resulting in a reduction in holding costs.
Lower costs combined with higher delisting prices can increase margins significantly.
Further showcasing the effectiveness of the carsales Finance Extension, one in three of the Brand’s delisted vehicles was also purchased using dealer finance4.
“Since activating the Finance Extension on our Pre-Owned stock on carsales, we have been impressed with the quality of the enquiries and leads,” said a Pre-Owned Car Sales Manager from Brand A.
“We had previously received a high number of leads from people with pre-approval for finance.
“I believe that having finance payments displayed on carsales is giving us an opportunity to enter the conversation earlier and win the business.
“Not only does it protect our F&I income, it also provides our new clients with an improved sales experience and a much more streamlined process.”
Achieving better prices
A rival prestige marque also experienced positive results after it activated the carsales Finance Extension option.
In the six months from June to December 2021, Brand B’s carsales Finance Extension-enabled inventory recorded demonstrably more views per item.
Although time to sell was not materially affected, prices increased, on average, by almost $2000 per delisting2.
“We have finance displayed on our brand website. We have finance displayed on our dealer websites. And we have finance displayed at the point-of-sale within our dealerships.
“So it makes perfect sense to make consumers aware of our finance offerings in their buying process through carsales,” stated a spokesperson from Brand B.
“Consumers have better awareness of our finance options.
“We have had customers say that having the monthly payments clearly defined made it much easier for them to understand what they could afford, shortlist and ultimately purchase one of our vehicles.”
Next steps
To see how your brand can benefit from Finance Extension on your listings, contact us below:
Sources:
1Internal carsales data of delisting times and delisted prices for 6,142 cars of one prestige brand listed between Jan and Dec 2021. Delisting time and price typically correlates with time to sell and sale price. Median delisting price and time to delist was compared between 6,142 of cars displayed with finance options and 6,142 of comparable cars without finance options (same make, model, similar age and odometer reading).
2Internal carsales data of delisting times and delisted prices for 888 cars of one prestige brand listed between listed between Jun and Dec 2021. Delisting time and price typically correlates with time to sell and sale price. Median delisting price and time to delist was compared between 888 of cars displayed with finance options and 888 of comparable cars without finance options (same make, model, similar age and odometer reading).
3carsales Finance and Insurance Survey, Feb 2022. n=206 (Those who plan on taking car finance)
4Brand A internal data Jan-Sept 2021
