The Myth of the 10 mile Radius in Automotive Marketing

Most dealerships will not advertise or market themselves outside a 10 miles radius around their dealership location. The belief is that the best quality leads and customers are sourced from inside this arbitrary boundary.

The truth is, car buyers will cross over this boundary and they represent a growth opportunity for your dealership. Committing to advertising outside your zone earlier in the purchase cycle will lead to higher gross margins on your sales.

We’ve seen it time and again with dealerships in other markets. The dealerships that play most aggressively earlier in the purchase cycle come out ahead in that critical 72-96 hour time window when a car shopper becomes a car buyer.

Think about it. Why is gross margin so low from your buyers? It’s because they’ve shopped away the margin by visiting 17 different websites including those “beat the dealer” websites on their way to you.

The customers that close at above-average gross are your direct leads. They haven’t deeply shopped yet. You’re getting your product, your value message of saving them time and money before they have shopped away the gross.

It’s time to think about where your good gross customer leads are coming from and how to get more of them.

You don’t grow by doing what everyone else is doing. You grow by challenging the commonplace and disrupting the norms.