Fall 2011 issue of Horizons

Automotive – continued

relationships with previous customers through timely mailings and other marketing touches. BMW utilizes a software program to operate their BMW loan loyalty program. The loan loyalty program simply notifies BMW dealers about their customers who are in good standing and whose vehicles’ market value is more than what is owed. Shawn Bugbee, vice president of sales and marketing for BMW Group Financial Services, says that over the past four months the loan loyalty program has converted more than 1,700 new-car sales for retail customers. He furthers states that approximately 70 percent of converted sales are occurring between 22 and 34 months, well ahead of the normal trade cycle of 30 to 36 months. Overall, the goal of these software programs is to provide customers with more options and to ultimately put dealerships in the fast lane for new- vehicle sales.

Each system has a different cost, but generally dealers can expect to spend between $1,000 and $3,000 per month for a program depending on the size of the store and sales volume. For example, in an area that is saturated with several dealers that sell the same brand, these software programs enable a dealer to better target a competing dealer’s customer base for service and maintenance opportunities. The software systems have proven to be an effective tool to help dealers develop stronger

RubinBrown’s Automotive Services Group RubinBrown assists the automotive industry through accounting, income tax, retirement, estate and fringe benefit planning.

John Butler, CPA - St. Louis Partner-In-Charge Automotive Services Group john.butler@rubinbrown.com 314.290.3333

Mary Ramm, CPA - Kansas City Partner Automotive Services Group mary.ramm@rubinbrown.com 913.499.4406

Russ White, CPA, MBA - Denver Partner Automotive Services Group russ.white@rubinbrown.com 303.952.1247

Mark Conrad, CPA - St. Louis Manager Automotive Services Group mark.conrad@rubinbrown.com 314.290.3425

Raise Your Expectations

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