The document discusses strategies for new car dealerships to attract buyers and increase sales based on analysis of inventory, pricing, and merchandising data. It finds that listings with custom photos rather than stock photos receive more views. Listings priced below the manufacturer's suggested retail price (MSRP) with custom photos get the most views. Pricing below MSRP is more effective in attracting buyers when combined with strong merchandising. Dealers who price below MSRP see more views and more buyers than those listed at MSRP. Many shoppers will travel farther for a car priced 10% below MSRP.

1. 1
Source: AutoTrader.com Digital Audience Analysis of 6,605 new car sales across 1,000 dealerships,
December 15, 2012 – August 15, 2013
2
Source: AutoTrader.com Core Site Data Q3, 2013 defined by monthly site activity & inventory data
for listings with 1 or more VDPs
3
Source: AutoTrader.com & Morpace Car Shopper Study, October 2013
4
Source: Laws in certain states prohibit advertising prices below MSRP. Dealers should always consult
with their legal advisor to ensure they are in compliance with their state’s advertising laws.
RIGHT CAR + RIGHT PRICE + MERCHANDISING TO THE MAX =
INFLUENCE & PREFERENCE
INVENTORY
Keep a pulse on high-demand inventory and stock accordingly.
The right inventory mix can keep you in the game.IMPLICATION
Listings with custom photos vs. a stock photo
get 155% more VDPs2
Listings with custom photos vs. no photo
get 239% more VDPs2
VS
239%
VDP’s
155%
VDP’s
Pricing BELOW MSRP with custom photos
gets 186% more VDPs than listings at or
above MSRP with stock photos2
+
MSRP
186%
VDP’s
MERCHANDISING
IMPLICATION Pricing BELOW MSRP is more effective in attracting car
buyers when coupled with strong merchandising.
PRICING
MISPERCEPTION PRICING TRANSPARENCY ERODES VALUE AND GROSS
Listings BELOW MSRP get
34% more VDP views2
Dealers listed below MSRP got
20% more buyers than dealers
listed at MSRP1
52% of shoppers will travel 30+ miles
to buy a car listed 10% below MSRP3
76% of new car buyers paid more
than the prices they shopped online1
76%
52% miles
30+
34%
20%
IMPLICATION Pricing below MSRP attracts valuable buyers4
NEW CAR
VS
NO PHOTO
58% of car buyers purchased a different make than
what they looked at online1
58% =
68% of car buyers purchased a different model than
what they looked at online1
68% =