Preston Automotive's transparent pricing process scales to multiple stores

About nine months ago, JB Burnett, executive general manager at Preston Automotive Group, with dealerships in five states, including Delaware and Maryland, introduced AutoFi and iPads at one of the group’s newly relocated Ford stores.

By January of this year, Burnett said the store had increased its PVR from about $1,600 a car to an average of $2,100 per car, a stat he shared during his segment of Daily Dealer Live.

And now, in July: He says they’ve scaled the process to more stores, averaging about one new add a quarter.

For context, AutoFi and iPads replaced traditional computers on the showroom floor, allowing customers to submit much of their own information online, even before coming to the property.
From there, salespeople qualify the customer and report back to the desk before any pricing gets fired up on the iPad.
Front-end gross, which climbed from about $1,700 to as high as $2,500, has leveled out at that stronger range. And, that F&I gross has held between $1,600 and $2,100-plus.

Why it works: According to Burnett, it gives the sales manager a window to adjust numbers, from MSRP to trade holdback, while the customer is still on the demo drive.

Plus, once a customer submits through AutoFi, they get three lender options back if they qualify on PTI, DTI and credit score.
“It’s almost like you applied for your credit union,” Burnett said. “You're not negotiating it... you're taking it.”
He said his Ford, CDJR, and Hyundai stores now all have it, and the quarterly timeline allows for enough time and energy needed to kick off the program.

“I still have salespeople at the Ford store that'll come up, and they'll be like, ‘Hey, so I need some numbers on this,’” Burnett said. “There's a trade, and it's not in the system yet. ‘Oh shoot, I forgot.’"

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Between the lines: Burnett kept a traditional F&I role instead of moving to a single point of contact, a structure he said he’s seen cost other dealers.

“In doing it with still an F&I person, you're still capturing that finance revenue, but you're able to actually pick up more on the front," Burnett said, pointing to the finance revenue he's seen other dealers lose when they move to a single point of contact model.
Preston for Life protection penetration rose from 27% to 42%, and ceramic paint and fabric protection penetration doubled.

Burnett credits the rise (in part) to adding gap insurance to the same self-serve screen.

“Most people know what gap is by now,” Burnett said. “Now they're just going in [and] clicking that themselves.”

Worth mentioning: Burnett also said in his recent visit that transparency doesn’t automatically equal lower prices.

“Transparency doesn't mean the race to the bottom," Burnett told Daily Dealer Live host Sam D'Arc. "I can be transparent and sell you something at sticker. As long as I show you what your fees are, and what your payment is."

Zooming in: Burnett said the Ford store’s layout continues to work well. Most service waiting areas keep customers in one seat for the entire visit, Burnett said.

At their Ford store, though, people change positions mid-visit and move into an open console area where they can grab snacks.

They also can move to a couch overlooking the shop, or step into a closed console to take a phone call.
Ford reps even came out for a few days to observe how customers moved through the facility.
"It feels very freeing," Burnett said. "We talked about it before, like a luxury lobby for a hotel. You're comfortable moving in the space. You don't feel like you're encroaching on somebody else's space."

Looking ahead: Burnett said he's watching how each brand's demographics respond, though even at his Hyundai store, which skews toward an older, good-credit clientele, the process has gone over well.

He expects to add another store to the list by next quarter.

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