How do I judge whether a used car lot’s online listings drive real inquiries?

Start with how the lot counts a lead. Some count every click, others only a call, message or form that names a vehicle. Ask which one the owner uses. Then request the inquiry log for a recent stretch, sorted by listing site and by vehicle, and see whether the same few vehicles draw most of the interest.

Follow several leads through. Who answered, how fast and what happened next? A lot that replies within the hour and books visits will convert more of the same traffic than one that lets messages sit. Ask whether the lot records why a lead was lost. Check listing quality yourself by reading a few ads: photos, descriptions and whether the price and details match what is on the lot.

Ask what the lot pays each listing site and whether those contracts transfer to a new owner. Look at the number of sales that began online against walk-ins and referrals, then compare with the advertising cost in the books. Your accountant can help you read that cost against sales, and you can phone the lot as a customer to test the experience first-hand. Ask also whether the lot answers messages outside business hours and who handles them.

Key takeaways

• Define what counts as a lead before you compare any figures.
• Follow individual inquiries from first message to sale or loss.
• Ask whether listing-site contracts transfer, and compare advertising spend with sales that began online.