Automotive Internet Sales Department Sells 700+ Cars A Month

The automotive Internet sales department is the most important department in today’s dealerships. With the proper automotive sales training and processes, the BDC will drive more traffic to your showroom and help you sell more cars.   Additionally, choosing the right lead source providers, like AutoWeb, and utilizing social media will give you the upper hand.

About Carlo Castillo

Carlo Castillo is the Business Development Director at Lexus of Pembroke Pines in Florida. With over 22 years in the industry, Carlo has worked in the automotive Internet sales department for the past 14 years.  

He and his team, with the help of AutoWeb’s automotive leads, have taken the dealership to new heights.  In March of 2021, Lexus of Pembroke Pines sold 1,188 new and pre-owned cars. Over 700 of those sales, roughly 60%, came from the BDC.

Carlo Castillo is a high level manager who focuses on many different aspects to build his department.  From third party leads, people, process and training, Carlo has built the cash cow.  However, he knows he still has much work to do to make it bigger and better.

Automotive Internet Sales Infrastructure

Importance of the BDC & Automotive Internet Sales Department

The most important department for sales in a car dealership in the Internet sales department.  The BDC is where everything starts and ends.  This is because the Internet and phones are the new showroom.  

While some dealerships have not come to this realization, they are starting to.  A lot is changing.  Especially in today’s market.  With empty showrooms, dealers are starting to see where the traffic is.  They are starting to see where the money is.  More importantly, they are having desk managers work in the BDC to desk deals and sell cars.

The Automotive Internet Sales Director Is Most Important

The BDC and Internet sales director is the most important position in the dealership today. It is not a position that can simply be filled with anyone.  This is because there are not a lot of experts that know how to efficiently run a BDC.  

Car dealerships need to have a real manager heading the BDC.  They have to have real management authority.  They have to have real management experience.  This is how you sell more cars from the Internet department.

What The BDC Director Needs to Be

The BDC director can not be a CRM, digital marketing, or a call center manager.  That is because they have never sold cars before.  They typically just delegate tasks and oversee the department.

The director needs to know how everything works.  They need to be able to close a car deal.  They need to be able to close deals in person.  Likewise, they also need to be able to close deals remotely.  

Lastly, they need to have the ability to check the temperature of the customer.  The director needs to have the uncanny ability to know where you are at.  Does the customer need to be closed over the phone?  Or, do you only have to close them on an appointment?

Characteristics of the Internet Director 

The Internet director has to be a jack of all trades.  They have to not only excel in leadership, but also in developing the staff.  Additionally, they have to have a full understanding of how a car dealership is put together.  They need to know the processes, technology, and DMS.

Most importantly, the Internet director needs to understand digital retailing.  The ability to sell cars remotely to customers has never been more important than it is today. 

Third Party Leads to Help Sell More Cars Online

What Is A Good Lead?

While third party leads are typically not the greatest quality, they are a necessity.  Typically, Carlo is satisfied with a 8% – 10% close rate on them.  However, not all leads are created equally.

When you spend on the third party, different leads will have different information.  If the lead contains a price, it is likely a price driven customer.  This would result in “the race to the bottom” dealers are accustomed to.  It could also be a customer that is all over the place.  

With that in mind, VIN specific leads are of higher quality.  They are likely to be zoned in on a certain vehicle and further down the funnel.  For each lead type, and the information provided, the approach needs to be changed.

Diversify Your Lead Sources

Carlo and Lexus of Pembroke Pines use several different third party lead source providers.  A lot of dealers do the same as well.  Just like you should diversify your investments, the same is true with automotive leads.

It is not fiscally responsible to have just one lead source provider. Dealerships must diversify their approach while maximizing their visibility.  

AutoWeb Has The Best High Quality Leads

While Carlo has many different third party lead providers, AutoWeb is his favorite.  In fact, he holds AutoWeb to a higher standard.  His expectations on the close rate is much higher because they provide higher quality leads.

One of the things Carlo enjoys most about AutoWeb’s leads is the information.  Not only are their leads typically VIN specific, but they also include the customers zip code.  Knowing the distance between the customer and the dealership is critical.  It changes the approach.  

Additionally, there are areas of Florida with a large Spanish speaking population.  This information allows Lexus of Pembroke Pines’ team to distribute leads amongst their bilingual staff.  

The Science & Math Behind Automotive Internet Sales

National Average Cost Per Sale

NADA stats state there are over 16,500 automotive dealerships.  The average dealership has an average of 16 employees in the sales department to sell 96 cars each month.  Additionally, the average dealership spends $64,000 each month in advertising.  This makes the cost per sale just over $640.

The problem, though, is that this cost per sale is not real.  “Dealer math” simply takes the advertising costs and averages it out across all sales.  However, many customers will buy from them without ever seeing advertisements.  

They could buy because of the brand or location.  They could even be previous customers, employees, or friends and family.  When these customers are eliminated from the total sales, the true cost per sale starts to drastically increase.

Third Party Lead Providers Cost Per Sale

Third party lead source providers help to decrease the cost per sale, especially if the dealer’s BDC is performing well.  If you bought 100 leads at $20 per lead, your cost would be $2,000.  Closing 10 of those deals, a 10% close rate, would make the cost per sale $200.

This cost per sale is significantly lower than the national average of $640+.  More importantly, it is not diluted with deals that may or may not have come from advertising.  This is why you must diversify your ad spend.  Diversify it with lead providers much like you would a mutual fund.  It is not only cheap, but the ROI is also powerful.

The BDC Process Is Just As Important

Carlo’s BDC Boot Camp

Lexus of Pembroke Pines has a very different approach to staffing than most dealerships.  Regardless of a candidate’s experience, they never hire anyone directly to the sales floor.  All new hires have to spend at least three to six months in the BDC.  This time allows them to be properly trained.

This “BDC Boot Camp” is vital.  It is meant to make sure they are proficient at their jobs.  The sales staff play a large role in the follow up process.  With that in mind, they have to be proficient on the phones.  Additionally, they need to know how to handle many different types of Internet leads.

Carlo’s Automotive Internet Sales Process

Carlo uses a 14 day funnel.  If there is no engagement from the customer, the lead falls into a safety net process.  The safety net process is run by AI and setup in the CRM.

Any time there is engagement with a customer, a new 14 day funnel begins.  This will trigger whether they are in the safety net process or not. This ensures that his staff is concentrating a bulk of their time and energy on the best leads.

Lead Handling and Follow Up Process

As soon as a lead comes in, a BDC agent immediately reaches out.  They try to call, email and text the customer.  If they do not contact and engage with the lead, it is then turned over to a sales associate.  The sales associate will also attempt to call the customer.  Additionally, they will send a real video text.

If there is no engagement, a bulk of the follow up turns back the the BDC.  The process is designed to keep the highly trained sales associates involved with engaged customers.  

NADA states that there is an average of 9 – 11 attempts before contact is made with the customer. Carlo’s process makes sense.  It allows the highly trained sales staff to focus on the engaged customers that will have conversations.  This drastically maximizes their time and effectiveness.

Sell More Cars in Spanish

Lexus of Pembroke Pines has a large Spanish speaking population nearby.  As a result, they often receive leads in Spanish.  AutoWeb is one of the ways they receive leads in Spanish.  Additionally, with AutoWeb’s leads containing the zip code, they can also determine the likeness of a Spanish speaking lead.

These zip codes are highly cultured areas.  While most of Carlo’s staff does speak Spanish, there is more they can do.  Currently, Carlo does not have a Spanish CRM process, it is currently a manual effort.  However, the AI safety net does recognize and communicate in Spanish.

Carlo’s Plan to Increase Automotive Internet Sales

Social Media Communication

Social media is the #1 form of communication.  Currently, Carlo does not use social media as another engagement tool.  They are looking to set up their accounts for the store and agents to manage consumer outreach efforts.  Additionally, they are looking for a way to incorporate that into their CRM.

Sean V. Bradley’s favorite CRM, VinSolutions, has full integration with Facebook messenger.  It allows communication through social media through the CRM.  However, if your CRM does not offer this integration, you can always copy and paste the communications as a note into the CRM. 

Advantages of Social Media DMs

JD Power says that over 83% of internet prospects, especially on high line brands, are cross shopping.  Not just the same brand dealers, but also other manufacturers as well.  If everyone is calling, texting, emailing, and using video, what are you doing to stand out?  Social media DMs will give you the competitive advantage.

Lastly, unlike text messaging, there are no FCC or TCPA rules for DMing prospects. It is like the Wild, Wild West! If all of your competitors are emailing, calling and text messaging a prospect, but you are the only one utilizing social media, you will have the upper hand.

Dedicated Websites for The Sales Associates

Dealerships have their own websites.  They don’t rely on the manufacturer’s website.  The same is true with sales associates.  Sales associates shouldn’t just rely on the dealership’s website.  They should also have their own website.  They need to brand themselves, and their own website will help.

Sean’s two daughters, Tianna Mick and Kalina Bradley, have their own websites.  It is set up on Build-A Brand.  T Got Your Keys is Tianna’s website and K Got You Covered is Kalina’s website.  It helps drive growth for them as individual sales associates.  Additionally, it helps with their branding.  Lastly, it helps the dealership sell more cars.

Automotive Internet Sales Resources 

Dealer Synergy & Bradley On Demand: The Automotive Industry’s #1 Training, Tracking, Testing, and Certification Platform and Consulting & Accountability Firm.  Additionally, The Millionaire Car Salesman Podcast: is the #1 Resource for Automotive Sales Professionals, Managers, and Owners.  Also, join The Millionaire Car Salesman Facebook Group today!

Next, The Against All Odds Radio Show: Hosting guests that have started from the bottom and rose to the top.  Also, join The Against All Odds Radio Show Guests & Listeners Facebook Group for the podcasted episodes.

Also, join The Millionaire Car Salesman Club: on Clubhouse.

Lastly, step up your Google game with Win the Game of Googleopoly: Unlocking the Secret Strategy of Search Engines