Cash back incentives spur test drives, vehicle sales | Auto Finance News | Auto Finance News

Cash back incentives spur test drives, vehicle sales

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Auto dealers are leveraging digital, cash-back incentives to encourage buyers to visit the dealership for test drives in an effort to ramp up sales, according to a study by fintech daVinci Payments.

“Dealerships see a 10% increase in closing rates when taking a prospective customer on a test drive,” the study found. “Therefore, a minimal investment in monetary rewards used as an incentive to take a test drive can result in significant vehicles sales.”

In fact, 92% of respondents that intended to buy a car in the next 18 months would be willing to visit a dealership for a test drive in exchange for $25 on a virtual prepaid card sent directly to their cell phone, said Rodney Mason, daVinci’s chief revenue officer. In addition, 89% of respondents intending to buy a car said they would use special service offers that were accompanied by a prepaid digital reward.

The study also found that 53% of respondents preferred receiving a $15 prepaid reward for each maintenance visit rather than a 10% discount on services rendered.

Data for the survey was collected via an online survey in June 2019 with a pool of 684 respondents that are reflective of the U.S. census with 96% confidence, according to daVinci Payments methodology.

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