Loaners vs demos
#1
Loaners vs demos
I had my IS at the dealership for a couple of days while they addressed a minor brake issue. While it was there, I was given a CT200h (my request) as a loaner. It had no options that I could find. No HomeLink, no Bluetooth, no leather, no navigation, and halogen headlights. I didn't know you could buy a car without Bluetooth connectivity anymore.
My question is ... is my dealer missing a marketing opportunity? Don't they already write off depreciation on loaners and demos as a marketing expense? Why not provide fully optioned cars? Wouldn't people be more likely to appreciate and buy options they might not otherwise have considered, if they experienced the comfort or convenience first hand? Aren't people naturally more impressed with fully optioned cars, helping or reminding them to consider Lexus when it's time for a new car? I know that every time I have a loaner, I consider it an opportunity for an extended test drive without a salesman in the back seat, often setting it as I would my personal car just to get a better feel for the real ownership experience.
It really does seem like a missed opportunity, but maybe no one else notices.
My question is ... is my dealer missing a marketing opportunity? Don't they already write off depreciation on loaners and demos as a marketing expense? Why not provide fully optioned cars? Wouldn't people be more likely to appreciate and buy options they might not otherwise have considered, if they experienced the comfort or convenience first hand? Aren't people naturally more impressed with fully optioned cars, helping or reminding them to consider Lexus when it's time for a new car? I know that every time I have a loaner, I consider it an opportunity for an extended test drive without a salesman in the back seat, often setting it as I would my personal car just to get a better feel for the real ownership experience.
It really does seem like a missed opportunity, but maybe no one else notices.
#3
Lexus Fanatic
iTrader: (1)
i think people know that loaner cars are going to be stripped out. If a person starts liking a loaner car theres nothing stopping them from swinging by the showroom to check out a new one. Its not like the loaner car is the only place you can see the car. They like to use new loaners to get the new car itch started in people. Then they can swing by the showroom if they want.
#4
IMO, no they are no missing an opportunity with less than fully optioned vehicles for loaners and demos - actually, from my experience, cars that have been labelled "demo" are usually well equipped while loaners are not.
Anyway, some of the reason why I don't think they are missing an opportunity:
- In my experiences, I have never had a loaner long enough to fully explore new options. I think 2 days is the longest we have had a Lexus loaner.
- How would you know what options your loan has? Window stickers are usually in the glove box, but I don't think people normally look for it.
- If you know the car has option "X" but can't get it work correctly, or to its full potential, you may now perceive the option negatively because you may have not known how to use it. Surely, if you are MBZ or Infiniti, you don't want people to be testing out the auto-stopping feature without some background information...
Anyway, some of the reason why I don't think they are missing an opportunity:
- In my experiences, I have never had a loaner long enough to fully explore new options. I think 2 days is the longest we have had a Lexus loaner.
- How would you know what options your loan has? Window stickers are usually in the glove box, but I don't think people normally look for it.
- If you know the car has option "X" but can't get it work correctly, or to its full potential, you may now perceive the option negatively because you may have not known how to use it. Surely, if you are MBZ or Infiniti, you don't want people to be testing out the auto-stopping feature without some background information...
#5
Lexus Fanatic
I had my IS at the dealership for a couple of days while they addressed a minor brake issue. While it was there, I was given a CT200h (my request) as a loaner. It had no options that I could find. No HomeLink, no Bluetooth, no leather, no navigation, and halogen headlights. I didn't know you could buy a car without Bluetooth connectivity anymore.
My question is ... is my dealer missing a marketing opportunity? Don't they already write off depreciation on loaners and demos as a marketing expense? Why not provide fully optioned cars? Wouldn't people be more likely to appreciate and buy options they might not otherwise have considered, if they experienced the comfort or convenience first hand? Aren't people naturally more impressed with fully optioned cars, helping or reminding them to consider Lexus when it's time for a new car? I know that every time I have a loaner, I consider it an opportunity for an extended test drive without a salesman in the back seat, often setting it as I would my personal car just to get a better feel for the real ownership experience.
It really does seem like a missed opportunity, but maybe no one else notices.
My question is ... is my dealer missing a marketing opportunity? Don't they already write off depreciation on loaners and demos as a marketing expense? Why not provide fully optioned cars? Wouldn't people be more likely to appreciate and buy options they might not otherwise have considered, if they experienced the comfort or convenience first hand? Aren't people naturally more impressed with fully optioned cars, helping or reminding them to consider Lexus when it's time for a new car? I know that every time I have a loaner, I consider it an opportunity for an extended test drive without a salesman in the back seat, often setting it as I would my personal car just to get a better feel for the real ownership experience.
It really does seem like a missed opportunity, but maybe no one else notices.
Satisfaction would probably go down.
#7
I had my IS at the dealership for a couple of days while they addressed a minor brake issue. While it was there, I was given a CT200h (my request) as a loaner. It had no options that I could find. No HomeLink, no Bluetooth, no leather, no navigation, and halogen headlights. I didn't know you could buy a car without Bluetooth connectivity anymore.
My question is ... is my dealer missing a marketing opportunity? Don't they already write off depreciation on loaners and demos as a marketing expense? Why not provide fully optioned cars? Wouldn't people be more likely to appreciate and buy options they might not otherwise have considered, if they experienced the comfort or convenience first hand? Aren't people naturally more impressed with fully optioned cars, helping or reminding them to consider Lexus when it's time for a new car? I know that every time I have a loaner, I consider it an opportunity for an extended test drive without a salesman in the back seat, often setting it as I would my personal car just to get a better feel for the real ownership experience.
It really does seem like a missed opportunity, but maybe no one else notices.
My question is ... is my dealer missing a marketing opportunity? Don't they already write off depreciation on loaners and demos as a marketing expense? Why not provide fully optioned cars? Wouldn't people be more likely to appreciate and buy options they might not otherwise have considered, if they experienced the comfort or convenience first hand? Aren't people naturally more impressed with fully optioned cars, helping or reminding them to consider Lexus when it's time for a new car? I know that every time I have a loaner, I consider it an opportunity for an extended test drive without a salesman in the back seat, often setting it as I would my personal car just to get a better feel for the real ownership experience.
It really does seem like a missed opportunity, but maybe no one else notices.
Ask about a Borrowed Car Agreement (BCA) next time. Where a dealer will let you take a car for a few hours or a few days.
And Loaners vs Demos, one is loaned out to hundreds whereas the other is usually owned by a high level dealership employee (i.e. a manager) usually for a term of 5000 miles until they get a new one.
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#8
Cycle Savant
iTrader: (5)
Here's the difference:
Lexus (as a brand) is the Marketer. Lexus is the one that creates the car, prices, it, and advertises it. They're the ones that chooses what's bare bone and what's top of the line.
The dealer is the Seller. The dealer is the one that will sell you what you want, and provide a (negotiable) price for it. As a seller, they can also throw in upgrades like extended warranties or aftermarket dealer-installed options.
Personally, I think the dealer would be good to show a barebones car, and let the consumer want (and pay for) more. Otherwise, if they start of with the $45k CT200h or the $60k RX450h, it's going to be a hard sell only because the price is already significantly more than what Lexus marketed as the starting price.
Lexus (as a brand) is the Marketer. Lexus is the one that creates the car, prices, it, and advertises it. They're the ones that chooses what's bare bone and what's top of the line.
The dealer is the Seller. The dealer is the one that will sell you what you want, and provide a (negotiable) price for it. As a seller, they can also throw in upgrades like extended warranties or aftermarket dealer-installed options.
Personally, I think the dealer would be good to show a barebones car, and let the consumer want (and pay for) more. Otherwise, if they start of with the $45k CT200h or the $60k RX450h, it's going to be a hard sell only because the price is already significantly more than what Lexus marketed as the starting price.
#9
Here's the difference:
Lexus (as a brand) is the Marketer. Lexus is the one that creates the car, prices, it, and advertises it. They're the ones that chooses what's bare bone and what's top of the line.
The dealer is the Seller. The dealer is the one that will sell you what you want, and provide a (negotiable) price for it. As a seller, they can also throw in upgrades like extended warranties or aftermarket dealer-installed options.
Personally, I think the dealer would be good to show a barebones car, and let the consumer want (and pay for) more. Otherwise, if they start of with the $45k CT200h or the $60k RX450h, it's going to be a hard sell only because the price is already significantly more than what Lexus marketed as the starting price.
Lexus (as a brand) is the Marketer. Lexus is the one that creates the car, prices, it, and advertises it. They're the ones that chooses what's bare bone and what's top of the line.
The dealer is the Seller. The dealer is the one that will sell you what you want, and provide a (negotiable) price for it. As a seller, they can also throw in upgrades like extended warranties or aftermarket dealer-installed options.
Personally, I think the dealer would be good to show a barebones car, and let the consumer want (and pay for) more. Otherwise, if they start of with the $45k CT200h or the $60k RX450h, it's going to be a hard sell only because the price is already significantly more than what Lexus marketed as the starting price.
#10
Lexus Fanatic
That NuLuxe (fake) leather is one of the things that the CT really does well. It is probably the best imitation stuff I've seen this side of a cow's a**....and, IMO, better than what some manufacturers use for real leather. The Animal-Rights people, this time, have a good point.
Last edited by mmarshall; 09-17-14 at 08:34 PM.
#12
I think it really depends on what you are driving when you receive the loaner. I drive a GS F Sport, and none of the loaners they offer me... IS 250, ES350, CT200H... would entice be to buy because I already have a nicer car. If they want to really market to me they should give me an LS loaner that I would fall in love with and insist on buying, but they aren't going to do that.