Online investment in automotive

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Online investment in automotive - Dealer website vs 3rd party listing site

In New Zealand 3rd party listing sites are king. But lets look a little closer at that and some of the reasons behind it. 

The average medium size dealer over the space of 3 years will spend over $100,000 normally close to $200,000 on outside 3rd party listing sites.

Whilst that same medium size dealer will also spend in NZ between $4000 and $14000 on their developing their dealer website once every three years in New Zealand that can even be every 5 + years.

So dealers are investing only between 4% to 14% on the main asset they actually own in the online space. But at the same time are investing / spending hundreds of thousands on a site that they have no ownership of that also has every other competitor on there and sometimes competes directly with the dealer for the same services the dealer's supply.

Yet we are all told 3rd party listings are king they get all the leads of course they do dealers are spending 95% more on them than their own sites -  with that sort of disparity in dealer investment over the last 15 years that is a natural consequence.

Dealers need to be investing in themselves that means the main asset they own online their website. advertising on third party listing sites is fine and is needed. But what is really needed is the dealer investing in themselves IE their website.

Its a tough environment to advocate for dealers in the space. The system is rigged in favor of the 3rd party sites rather than dealer investment.

I could list 100's of reasons why dealers should invest in themselves and their own sites and the advantages over 3rd party listing sites. But everyone should know them they are clear logical reasons.