In the Midst of a Pandemic Economy, Auto Dealerships Used to Add Over $729 Million in Preloads, a 70% Increase in Growth from 2019

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Dealerships using to create, print, and manage their addendums, hit a major milestone in 2020, printing over 1 million addendums with over 1.8 billion dollars in pre-loads. In 2020 alone, dealerships added over $729 million in preloads, a 70% increase in growth from 2019 based on’s customer base. What is driving this growth?

Car at a dealership with manufacturer label and preloaded addendum label.

Preloaded Addendums is very responsive and understands what the dealer needs. A great program that will absolutely help drive profits at the dealership. The program is totally customizable and yet remains very user friendly👊👍 Joe Spivak, Dealer Advocate at DPI

General Managers using to create, print, and manage their addendums, printed over 1 million addendums with over 1.8 billion dollars in pre-loads. Preloading cars creates both value for consumers and increased PVR (Per Vehicle Retail) for their dealerships. In 2020 alone, dealerships using added over $729 million in preloads to their addendums, a 70% growth since 2019.

For all the negative news that plagued 2020, eight automobile brands sold more in Q3 2020 than in Q3 2019. Many variables are influencing this trend including low interest rates, stimulus funds, and a desire to stay safe and travel by car vs plane. In fact, the airline industry recently announced that 2021 air travel is projected to be at 38% of pre-pandemic volume. In addition, Americans planning to buy a new or used car in 2021 might not see auto loan rates come down as drastically as they saw in 2020, but rock-bottom interest rates will still be on their side.

Because many individuals and businesspeople are upgrading or buying a new car, there is also a strong desire to personalize their new vehicle with unique features and packages. Another factor driving dealers to preload cars is to increase PVR during a time of very low inventory. Due to pandemic related production challenges such as the most recent dearth of chips needed to run high-end technology in new cars, dealerships are adding market-value adjustments to MSRP. Below are details that elaborate on the variables influencing the increase in vehicle preloads:

No question about it, the pandemic has made travelers obsessive about their health!

  • In a pandemic, people naturally prefer to travel by car vs plane and given travel restrictions, many families aren’t taking expensive vacations overseas. Instead, they are buying cars that can hold the whole family comfortably for trips in the US and or buying nicer cars for business travel.
  • There is also a strong desire to personalize their new vehicles with unique features such as window tint, wheel locks, door guards, paint protection, etc.
  • Many dealerships are also adding theft protection products such as KAHU’s GPS Tracking devices to track vehicles on their lots and also offer theft protection for their clients.

Supply and Demand:

  • Another driving factor for the use of preloads is the very real challenge of low inventory and the need to increase PVR. Because of pandemic related production challenges some dealerships also add a market-value adjustment. Addendums make these preloads and market adjustment pricing transparent for the consumer.
  • The need to increasing revenue by encouraging customers to come back to the dealership for service or other value-added options:
  • Many dealerships preload products and service packages that incentivize their customers to return to the dealership for oil changes and other package related services. For instance, KAHU’s theft protection system will also alert the consumer when it’s time for an oil change or if there’s a factory recall. Their app will also communicate with the client when the dealership is offering a special on specific preloads or cars.

Dealerships characteristically add preloads and list these options on an addendum label. Addendum labels can be placed next to the factory sticker or anywhere on the car so that clients clearly see the value added to a car in the form of lead products such as wheel locks, window tint, KAHU theft protection, Nitrofill and the like as well as custom service and other packages. Addendums always include legal language that specifies that the Market Value Adjustment, options/preloads and or packages added to a car are done so by the dealership and not added by the manufacturer. The consumer can choose to not purchase any part of a package or option added to the vehicle. Addendums make the above practice more transparent.

About Dealeraddendums, Inc.

Dealeraddendums, Inc. works with nearly a thousand dealerships, groups, and installers across the US and into Canada. Before, dealerships were hand-writing their addendums or continue to cut and paste from an Excel spreadsheet to create addendums, one-by-one. DealerAddendums, Inc.’s solution is a web-based SaaS platform that integrates the dealership’s DMS, enabling dealers to easily create custom addendums with preloaded options and packages in minutes. Using blank labels, addendums can be printed using any color laser printer right there at the dealership. Subscriptions to use are affordable and month-to-month with no contracts. To sign up for your free trial go to DealerAddendums and start printing today!

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Carol Wetzel
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