The days of the fat new car deal are numbered, at least on the front end. For the affluent, the Internet has made the price of new cars a virtual commodity. Even the 580-680 buyer is armed with Web-based information and the tightening credit markets have resulted in fewer opportunities to get these prospects bought.

The real dilemma is how to make the most of the market when the SAAR has fallen by almost 50 percent. By far, the Internet is the most cost effective way to reach the largest number of serious buyers and your best way to win in today’s economy. So how do you do it?

One of the problems with selling vehicles online is that traditional methods of online lead generation involve a tremendous number of bogus leads. Even the best Internet departments close less than 10 percent of online leads and most don’t come close to that! To win on the net, you need to separate the wheat from the chaff. Locate the serious buyers and get to them quickly.

A growing number of dealers are turning away from the big lead generators. Most are engaged in some level of Search Engine Marketing and Optimization (SEM/SEO), some are creating micro-sites, and a few are participating in social networking sites like Facebook and Twitter. Yet that is simply not enough.

Look at it from a buyer’s perspective. How different is your Website from your competitors down the street? Do you really offer a unique proposition? Odds are, probably not. Most dealer sites today include detailed inventory with pictures and even video. Yet consumers have indicated they all still “look the same.”

Like it or not, the Internet has greatly diminished the traditional sales opportunities of local franchises. Buyers will still come to the lot for a test drive and are fortunately still loyal in their service and warranty repair needs. Yet most are using the Internet to look at dealers all across the country to find the best possible price. In fact, they could not care less where they buy their new vehicle—they just want the best deal.

So the question before you today is—Are you ready to take the next step? Are you willing to allow your Internet department to negotiate the price of a new car online? Probably not if your online leads involve large numbers of teenagers and online tire-kickers. But would your thinking change if the online prospect paid a fee to submit a serious “Buy Bid,” rather than simply “Requesting a Quote?” Do you think many teenagers and tire-kickers would pay a fee just to bid on a car they don’t plan on buying? After all, have you ever used PriceLine to purchase an airline ticket?

Find the serious online buyers and win their business on the front end. Your sales staff will spend less time chasing down bogus leads and your dealership will generate more gross through volume and an increased focus on pre-owned, parts and service, and F&I.

Jeff Cook is president and co-founder of CyberCalc.com and BuyerBidsOnline.com. He presently serves as a director on both the Texas State and National Boards of the National Vehicle Leasing Association and is based in Dallas, Texas.

Click Here to Visit Other Internet Marketing Articles