How GAP Insurance can help you sell used cars
Author: Natalie Banks - Digital Marketing Specialist
We seem to be in a really strange time where used cars are selling for more than a consumer would have paid for the same specification this time last year, meaning those who own a used car may find they are in positive equity, even if the car isn’t particularly rare.
New cars are following a similar trend – those who purchased a brand-new car last year, may find it is worth the same, if not more, than what they paid initially. New cars are notoriously known for depreciating in value rapidly, so this trend is something of a new one.
How this can benefit car dealers
As a car dealer, how can you capitalise on this trend, especially when used cars are priced much higher than they were this time last year?
Well, there is a select group of people who need a used car, but aren’t concerned about the cost. Bit too good to be true you may ask? Perhaps, but those who have recently had a car written off or stolen and have GAP Insurance are those you need to be reaching out to during these peculiar times.
GAP Insurance is designed to bridge the gap between the original cost of the vehicle and the insurance payout (the value of the vehicle when it was stolen or written off). Some levels will only cover the original cost of the vehicle, so given that prices have risen dramatically over the past year or so, there may be more of a shortfall for the owner.
Often referred to as Vehicle Replacement GAP Insurance, this level of additional cover will allow the owner to purchase a like-for-like car (same age, mileage, make and model) if their car is written off or stolen. Those with this level of GAP Insurance won’t be concerned with the price of the vehicle, but more interested in a vehicle that matches the same specification of their vehicle that was stolen or written off.
If the owner originally purchased a brand-new car, Vehicle Replacement GAP Insurance will provide a complete replacement, but for instances where the original car was a used car, the replacement must be like-for-like.
How do you reach these consumers?
One of the best ways to reach people who are looking for a specific make and model of car is via Automotive Inventory Ads, which will use lookalike audiences to advertise to users across Facebook or Instagram who have viewed similar specification vehicles on your website or a competitors.
Automotive Inventory Ads uses your current stock feed to show adverts to users on their Facebook or Instagram feeds when you have a vehicle in stock that is similar to what they have previously searched for.
Because the user has to find a replacement vehicle that is like-for-like, they will be searching and viewing vehicles of a certain specification, so your stock needs to be in front of these users as and when they are searching for these vehicles.
Alternatively, you can opt for traditional PPC (Pay-per-click), where you can target specific keywords, whether that’s make and model search terms or broader terms such as ‘used Ford cars’ for example.
If you are looking to target users when they are looking for specific make and models of car, speak to the team here at Autoweb Design, who would be happy to discuss the best option for your business.