General Motors is offering quarterly monetary incentives to its Buick–GMCÂ dealers to operate larger loaner fleets for service customers, Automotive News reports. The automaker raised financial incentives for Buick-GMC dealers last year to grow their loaner fleets, in turn boosting sales and improving customer service, and is sweetening the deal even more this year.
About half of all Buick-GMC dealers currently operate a loaner fleet through GM’s Courtesy Transportation Program, AN reports, however the automaker is looking to grow that statistic in 2015. Bigger loaner fleets will allow more Buick-GMC owners to get behind the wheel of new models, which may help both brands hold on to the customers they’ve already acquired.
In addition to expanding loaner fleets, GM is also offering incentives for dealers to establish or expand business development centers (BDCs). These are offices which focus on following up with phone and internet leads and setting up and scheduling test drive appointments, improving customer service and hopefully driving sales. Both of the new incentives are part of Buick-GMC’s new ‘Standards for Excellence’ program.
Dealers who receive high ratings from a third-party assessment of their BDC will qualify for further monetary bonuses even if they don’t post a quarterly sales gain. Henry Brown, chairman of the Buick-GMC National Dealer Council and owner of Henry Brown Buick-GMC in Arizona, told AN the automaker has been adamant about its new, more proactive sales procedures, evidenced by the larger incentives.
“(GM executives have) done a good job of helping the dealers understand the importance of having a sales process,” said Brown. “The days of waiting for customers to show up in your showroom are long gone.”
Comments
What becomes of these vehicles after so long or a certain amount of miles is achieved? Do they then head over to the used car side as a GM certified used or something? That might be a way to get a good one at a descent price.
Buick and GMC represent unpretentious luxury. Together, they also represent a near full segment brand in the US.
There is no luxury truck brand aside from the cowboy Cadillacs produced by GMC. This gives the brand huge growth potential.
I would suggest that both Buick and GMC both begin a redesigned tri logo. This would aid internet unifying the distribution channel.
Paul – Dealership loaner vehicles are still considered new cars and are sold as such…and taxed as such by states. Much like the way demonstrator vehicles used to be, before dealers did away with them. They typically are pulled from loaner service with 2-3,000 miles on them or at the end of 90 days. They are offered at discounted prices, plus any available rebates that apply to the new cars. They typically sell about $2000 below their zero mile siblings, but for more than a used certified car. You’re right in thinking that it would be a way to get a great deal on a 2015 model when discounts and rebates are low. A 2014 is even better with the larger rebates, plus the loaner car discount.