McGeorge Toyota dealership trims transaction time

McGeorge Toyota's live-action TV commercial demonstrates how the free McGeorge @Home service works.

Virginia dealership McGeorge Toyota says it shaves up to five hours off the vehicle purchase time for customers who want to shop at home.

The store's McGeorge @Home vehicle sales and delivery service lets customers shop, test drive and complete a vehicle purchase without visiting the dealership whether they live in the dealership's home city or a state away.

The program launched just more than two years ago, and customers initially didn't realize that the delivery service was complimentary, said Bob Farlow, McGeorge Toyota's general manager. "We had to be clear that there was no cost for the service. The convenience factor was recognized."

A revamped marketing campaign boosted consumers' awareness and understanding of the service. The campaign, launched this year, features a live-action TV commercial that demonstrates the service.

The idea behind it: "Our dealership in your driveway," Farlow said.

Before the marketing face-lift, about 40 customers had used McGeorge @Home during the previous year. The dealership averages 375 new and used vehicle sales per month.

After the marketing revamp, nearly 30 customers used the service from late May through late July. Some of them eventually visited the store for a test drive, but most McGeorge @Home customers never entered the dealership, Farlow said.

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"We are attempting to help people shorten the transaction, create more transparency, build more trust and make it simpler. It's seeming to work out that way for us," he said. "We are taking the long view of how we see the sales process evolving in the future."

Far-flung deliveries

Though the dealership is in Henrico, Va., in the east-central part of the state, staff members have delivered vehicles as far as North Carolina and Maryland. At this point, there is no distance limit for the service.

Most @Home purchases — 85 percent — are new vehicles spanning the Toyota lineup, Farlow said.

In terms of the customer base, "there's no one demographic," he said. "It's every demographic."

Many customers opting for McGeorge @Home are business professionals.

"The common key among all of the people is the desire to save time," Farlow said. "The folks that are taking advantage of the delivery program are further down the funnel. They know what they want, the equipment they want. They've done their research. They know what a fair price is. They know what their trade is worth in most cases."

With @Home, customers are saving the three to five hours that traditionally would have been spent in the dealership on test drives and putting together the transaction, Farlow said.

Finalize in minutes

Customers search through the inventory on McGeorge Toyota's website and tell the staff which stock number they are interested in. The vehicle is driven to the customer's home or workplace for a test drive. If the customer opts to buy, the McGeorge staffer can appraise a trade-in and complete all paperwork on-site.

The vehicle's transaction price is generally based on the dealership's published Internet pricing, though there can be further discussion once a trade-in is involved. Finance and insurance managers speak with customers via phone or Skype about F&I products and financing. F&I penetration among the @Home customers is in line with penetration among in-store buyers, Farlow said.

Once the decision to buy is made, the @Home deal can be finalized in as little as 15 to 30 minutes, he said.

Having dealership employees who buy in to the service is crucial, Farlow said. For now, four sales reps are involved in the service with three finance managers trained on the technology. Farlow expects to expand involvement as volume dictates.

He said, "There was a lot of technology involved in doing it right, a lot of coordination, a lot of the salespeople's time involved"

By offering an at-home car-buying program, McGeorge Toyota in Henrico, Va., appeals to customers who want to save time and skip the dealership visit.

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