When gas prices hovered around $4 per gallon about a decade ago, Jared Forgues might have been hesitant to consider certain vehicles.

But, with the cost of regular gas almost half what it once was, Forgues was in search of a new or used pickup truck Friday.

“Low gas prices have certainly allowed us to look at a wider range of vehicles for sure,” Forgues, of Leominster, said while he looked at a used Chevrolet Silverado pickup truck at the Imperial dealerships in Mendon.

Forgues said low gas prices are just a part of the reason to consider a pickup truck. The family of four also needs the space a pickup truck has for household projects, he said.

Forgues is not alone in looking for a pickup truck. Sales of trucks and SUVs have been rising as the price at the pump hovers in the $2 per gallon range. And, customers want the space those vehicles provide for carrying equipment or a large family, local car salespeople say.

The American Automobile Association found self-serve, regular unleaded gas in Massachusetts averaging $2.21 per gallon on Monday, up seven cents from a year ago.

That’s a far cry from prices that topped $4 a gallon in 2008. Increased U.S. production of oil and gasoline and a global glut of oil have helped bring prices down and stay relatively steady. Analysts continue to watch OPEC decisions, said Mary Maguire, an AAA spokeswoman.

The low, stable gas prices haven’t had a major positive or negative effect on gas stations. That could be due in part to cars becoming more fuel efficient and needing to fill up less, said Matt LeLacheur, co-executive director of the New England Service Station and Auto Repair Association.

Last month, buyers in the United States continued a trend toward purchasing SUVs and trucks. Trucks and SUVs made up 63 percent of auto sales in June, up from less than half of sales five years ago, the Associated Press reported.

“The big thing is there’s really no penalty to buying a crossover SUV vs. a sedan,” said Craig Fitzgerald, editor-in-chief of BestRide.com. GateHouse Media owns BestRide.com and the Daily News.

Fuel economies are similar and an SUV offers more storage and other features, Fitzgerald said.

And, there’s a relatively new class of compact crossovers such as the Mazda CX-3 that have come on the market in recent years. Pickup trucks are typically always good sellers, he said.

Gas prices will eventually go up, and that could be an opportunity for plug-in hybrid vehicles to explode in popularity, Fitzgerald said.

CAR DEALERS WEIGH IN

Small SUVs and pickup trucks are selling particularly well, said Mike Penner of the Imperial dealerships.

Imperial has seen about a 35 percent increase in sales of pickup trucks and crossovers over the past year, he said.

“Larger families are going for vehicles that have a third-row seat,” he said.

Cheap gas is helping fuel sales of large SUVs, although Penner said customers often look to trade in those vehicles when prices at the pump spike.

Fuel economy was a critical factor in car purchases in 2008, said Marlboro Nissan and Milford Nissan owner Jeff Batta.

Falling prices at the pump “removed gas from the equation,” Batta said.

Sedans such as the Altima or Maxima have historically been the top seller. Now, it’s the Rogue, which is a compact SUV, Batta said.

Carol DeMeo of Marlborough visited Marlboro Nissan Friday to get a loaner car as she looks to replace a Nissan Rogue that was totaled. She plans to get another Rogue. Gas prices are not a key factor in her decision, although she is pleased with the Rogue’s fuel economy.

A recent study from Accenture offers a telling peek at what today’s vehicle buyers want from dealers:

• 80 percent of the 13,000 study respondents want access to more intuitive, customized online content.
• Roughly 75 percent want a process that offers more simplified information, particularly when it comes to comparing vehicles.
• Nearly two-thirds of respondents want better, mobile-based content delivery options, and would welcome online chats with dealer sales teams.

To me, the survey findings underscore a reality most, if not all, dealers recognize: Today’s buyers want to buy cars like they purchase other goods and services — in a simpler, faster and more transparent fashion than they’ve bought them in the past. Indeed, the amount of time buyers spend online, and the number of sites they visit, are symptoms of a need to temper the distrust they feel toward dealers and the car-buying process.

In many ways, these dynamics represent an opportunity for dealers. Those who can best deliver what today’s buyers want will inevitably make more sales than those who don’t.

The key question then becomes: What exactly do today’s buyers want and need before they say “yes” to a car deal?

I’ll address this question from the perspective of used vehicles — an arguably more difficult sale, given the uncertainties about a vehicle’s condition, history and reliability compared to a new vehicle purchase.

The following are three essential elements of a used vehicle transaction that dealers must effectively address with today’s used vehicle customers — through a combination of market-based transparency and technology — to earn their business:

The vehicle

“Is this vehicle the right one for me?” This is perhaps the most fundamental question for any used vehicle buyer. Today’s customers appreciate when dealers answer this question through a compelling online or in-person presentation of photos, description, equipment / trim / performance specifications, safety ratings, third-party condition reports (e.g., Carfax) and service histories (if available). The presentations should also include expert and owner reviews of the car (drawn from recognized third-party sources when appropriate) to help the would-be buyer answer this question for themself — affirming the information they’ve already found online about the car.

The deal

The last thing a used vehicle buyer wants to find out post-purchase is that they paid too much for a vehicle or, even worse, feel like they got “took” at the dealership. As they say in professional sports, the best defense is a good offense. For dealers, this means addressing a vehicle’s asking price in a more up-front and transparent manner than we’ve done in the past. This challenge is far easier for dealers who base their initial asking prices on the market — that is, their prices reflect a vehicle’s unique value proposition in the context of available, competing vehicles in the marketplace. Today’s technology and tools can help dealers satisfy the ever-important “Is this a good deal?” question every customer brings to the table. It’s increasingly commonplace for dealers to share this type of market-based transparency in mobile and desktop presentations that present comparison vehicles and prices using third-party sources (such as Kelley Blue Book, Edmunds, NADA and Black Book) to validate the rationale behind their asking price. When this occurs, customers are less likely to push back on price because the presentation often validates the reasons they’ve inquired about a specific vehicle at a dealership in the first place.

The dealership

Let’s remind ourselves of the aforementioned study findings: Today’s buyers want dealers to provide a simpler, faster and more transparent process for purchasing vehicles. This strikes me as a clarion call for dealers to deliver an experience to foster customer satisfaction and trust in merchandising and sales processes. Historically, dealers have often sent mixed signals in this regard. They may claim to offer the lowest prices, but the in-showroom reality is something different. I encourage dealers to both “detail and demonstrate” when it comes to distinguishing their dealerships from the competition. That is, their merchandising and customer presentations should detail the positive customer feedback they’ve accrued and reasons they believe the customer has chosen the right place to buy a used vehicle. Beyond that, however, dealers must also proactively demonstrate what they claim to provide, which means consistently delivering simplicity, speed and transparency in every customer engagement. If they don’t, customers will likely sense a disconnect and potentially walk away from a deal, sharing their frustration with family and friends.

A final thought: Dealers and sales teams should seek to satisfy each essential element of a used vehicle deal in equal measure. While it’s true that the significance of a single element may vary from customer to customer, the consistent presentation of all three with every customer ensures you avoid creating potholes in an otherwise sound process — satisfying more customers and selling more vehicles.

Suppose you walk into a high-end clothing store and you tell the manager that you plan to spend $30K on a new wardrobe. How do you think the manager would react? I suspect you’d receive a pretty awesome shopping experience for the next hour or two, really solid fashion advice from their top staff, and a store that hopes to earn your loyalty for the long run. Yet today, in the typical car dealership, things don’t always go so well. Same $30k to spend, but not the same treatment from the sales team.

Buying a car shouldn’t be just your average customer experience. Think about the last time you had to put down over $10,000 for a single item or event — if it wasn’t a car, chances are the experience was a lot more fun than your typical car-buying experience. Since a car is frequently the second most expensive thing that Americans buy (behind their house), the purchase is really more of an occasion, filled with emotions and expectations, than a mere event.  The signs are emerging, though, that while negative purchase and servicing experiences were forgotten or forgiven by the next buying occasion, new forces are shaping the marketplace.

So how will customer experience fit in? Here are four key ways that customer experience is becoming increasingly important to the car purchasing experience.

1. Changing customer expectations

Carmakers have historically focused on product quality and the driving experience to create customer loyalty and repeat purchases. Customer loyalty was first and foremost based on the product experience — how satisfied customers are with the reliability of the vehicle and the driving experience. But product quality has improved dramatically, largely taking the reliability factor off the table. Over a ten-year period, from 2003 through 2012, reliability has improved so much that the top 20% of models available in 2003 would fall to the bottom 20% in 2012.  Meanwhile, the myriad of comforts and features offered in today’s cars is making it harder to compete on the driving experience – it’s pretty good on most vehicles in the competitive set. And finally, consumer expectations for the dealership experience are being elevated to new highs thanks to the superior experiences they’re getting in other large-ticket retailers such as Four Seasons, Nordstrom, Sephora, Tory Burch, and a whole host of other companies that have made customer experience a top priority.  The customer now has a lot more choice and a lot more experience with great customer service, both of which places the burden on dealerships to provide exceptional customer experiences.

2. The power of word of mouth

While customers may forget their previous poor experiences of purchasing a car, the internet doesn’t. Location-based online review sites are increasingly popular and it’s easier than ever for disappointed customers to air their poor sales experiences in a very public forum. Since the purchase experience is both stressful and expensive, customers are willing to travel a bit further from where they live to find a suitable car dealership, a decision made easier by looking at online reviews.  And as millennials, the generation most plugged into social media, approaches the age with the purchasing power to buy a car, online reputation becomes ever more important.

3. Transforming single transactions into a relationship

While the average American purchases cars infrequently due to cost, ideally the relationship with a car dealership doesn’t end there. The gross profit margins for dealerships are much higher for the Service and Parts Department than the new car sales department. But with a stress-inducing sales experience, customers may not want to return to the car dealership for servicing. This is a wasted opportunity. Scrolling through online reviews for car dealerships, you’ll notice that most of the positive reviews are reserved for the servicing side of the business, and many one-star reviews are given for the purchasing experience. Improving the sales experience will give dealerships the opportunity to connect a happy customer to the servicing department, establishing a relationship from a single sales transaction.

4. Building trust

Part of transforming the sales transaction into an ongoing relationship is building trust with the customer. Today’s typical car-buying household has more than one car in the driveway; so family input and trust in a car dealership can play a large role in purchasing decisions. In fact, since individuals, on average, purchase cars every 7-10 years, ensuring retention and loyalty often involves extending the web of connections to the entire family. A lot of the time, each spouse needs his or her own car for work and for shuttling the kids to their after-school activities. Once those kids become teenagers, they’re likely to clamor for a car as well. Having a great dealership experience helps strengthen a relationship between the dealer and the family, building trust and promoting customer loyalty.

With changing customer expectations and the rising importance of online reviews, car dealers can no longer afford to ignore the customer experience of new car sales.  Buying a car is one of the most stressful purchasing decisions most Americans have to deal with.  Easing the process can go a long way in cultivating a relationship with the customer that lasts well beyond the single transaction.

Tips to help to get the car you want at the right price

March 07, 2017    

Choosing the right car for you and your budget can take significant research and even require some test drives. Once you've narrowed the selection down to the special one you'd like in your driveway, there are still important steps left in the process.

These quick tips can help with the purchase, whether done at a large new-car dealership or at a corner used-car lot.

1. Know the Value of the Vehicle
Know the true value of your candidate car, regardless of what the seller is asking. Condition, mileage, age, equipment levels, and the region all affect vehicle value. Different pricing guide services can list widely varying "book" values. Avoid the high-ball/low-ball game by asking the dealer to use one guide to determine the value of the vehicle for sale and the value of any trade-in you may have.

2. Write Down Your Questions
Come in with a prepared list of questions about the vehicle and check them off when they are answered to your satisfaction. Make sure all of your questions are answered.

3. Don't Flash Your Cash
The dealership doesn't need to know anything about your finances during the negotiating process. Do not tell them how much car you can afford, or they'll try to take every penny of it.

4. Stay on the Subject
Never allow a salesperson to change the direction of the conversation to matters other than car buying. Salespeople often gloss over important questions, such as vehicle history and price, by changing the subject.

5. Don't Be Rushed
Salespeople's favorite customers are those who seem to be in a hurry, because they tend to be the ones who do not inspect the car thoroughly or don't negotiate the price. Never go to a dealership acting rushed, even if you need a car immediately—they'll take advantage of it. Many salespeople say they won't pressure or rush you into buying, but they usually do it anyway. If you feel the sales process is moving too fast, tell the salesperson that you'll come back at another time. If the car you're interested in is gone, remember that there are many other cars out there. 

6. Be Prepared to Walk Away
Once you've come up with a price you feel is fair, state your offer clearly, and say nothing more. If the seller won't budge, walk away. You shouldn't pay more than what your homework has told you is the worth of the vehicle. If you head for the door, you'll often have a deal you can live with before you reach it.

7. Be Wary of Costly Add-Ons
Service contracts, glass etching, undercoating, and paint sealants are all unnecessary add-ons to help the dealership maximize its profits. Don't buy them.

8. Check the Vehicle's History
Instead of taking the salesperson's word about the history and condition of the vehicle, get a vehicle-history report from CarFax or Experian Automotive. They can alert you to possible odometer fraud; reveal past flood, fire, and accident damage; or tell you if a rebuilt or salvage title was ever issued for the vehicle. But a clean report is no guarantee that a vehicle doesn't have hidden problems. You can also get a free VIN check from the National Insurance Crime Bureau.

Federal law does not require recalls to be performed on used cars—even certified used cars. Be sure to check whether there are any open recalls by entering the vehicle identification number (VIN) at safercar.gov. You can also check at ConsumerReports.org/carrecalls. Whether initiated by an automaker or required by the government, recalls are issued to address safety-related defects or problems, and related updates should be done promptly. The work will need to be done at a new-car dealership for that brand.

9. Visit a Mechanic
After you make an offer but before you sign a contract of sale, take the vehicle to a qualified mechanic that routinely does automotive diagnostic work. Don't let the dealer tell you they've inspected the car for you. Deduct any needed repairs that the mechanic finds from your offer. 

10. Get Your Financing Secured
Go to a bank or credit union and be approved for a loan before you go to the dealership. The dealer may even try to beat their rate, which works to your advantage.