Best Practices for SMS Marketing in Used Car Dealerships

One of the biggest hurdles for used car dealerships is keeping potential customers consistently interested and engaged. Traditional outreach efforts—like emails and phone calls—often miss the mark, with email open rates hovering around a mere 20%. That means a lot of your messages are getting lost, taking potential deals with them. Fortunately, there’s a more effective way to connect with shoppers: SMS marketing. Because text messages are read almost immediately—98% open rate, with 90% viewed within three minutes—it’s an ideal channel for reaching people fast. When you follow best practices, SMS marketing can be a game-changer for any dealership.

The first step in a successful SMS campaign is to build a high-quality subscriber list. You want people who genuinely want to hear from you—those who’ve opted in to receive updates. Besides complying with regulations like the Telephone Consumer Protection Act (TCPA), this ensures you’re reaching an audience interested in what you offer. You can collect phone numbers through sign-up forms on your website, in-store promotions, and even social media ads. The goal is to create a solid list of customers who actually look forward to your texts.

Once you’ve got a reliable list of opt-ins, personalization is crucial. Research shows that tailored messages can boost engagement by up to six times compared to generic blasts. Including the customer’s first name and referencing details like past purchases or preferred vehicle types helps your texts hit home. For instance, if someone showed interest in trucks, let them know about a fresh arrival of pre-owned pickups, or a special deal on truck accessories. It’s these small personal touches that help your messages stand out.

Another key factor is brevity. Since SMS typically limits you to 160 characters, your texts should be concise and direct. Provide a clear call-to-action (CTA) that makes it simple for recipients to respond. A straightforward text might say, “Hey Sarah, just in: a 2019 Toyota Camry. Stop by for a test drive today! Reply YES to schedule an appointment.” This lets your customers quickly understand what you’re offering and how to act on it.

Timing matters, too. Sending messages when people are most likely to read and respond can dramatically increase your success rate. Industry data suggests the sweet spot is usually between 10 AM and 8 PM. Reaching out too early or too late can irritate potential buyers, and that might prompt them to opt out. Frequency is also important—going overboard will likely drive people away, while not texting enough might cause them to forget about your dealership. One or two well-timed messages a week is often a solid starting point, but use engagement metrics to fine-tune your approach.

Another best practice is delivering exclusive offers and timely announcements via text. Let customers know about weekend sales, service discounts, or recent trade-ins. For instance, sending a message like “Weekend special—save $200 on service if you book by Sunday!” triggers a sense of urgency, prompting quicker decisions. When people feel they’re getting special deals they wouldn’t find elsewhere, they’re more likely to act on your message and remain loyal to your dealership.

Equally important is ensuring your communications meet legal requirements and are easy to understand. Always include a quick way for recipients to opt out—something like “Reply STOP to unsubscribe.” This is mandatory under laws like the TCPA, and it also helps build customer trust. When your practices are transparent and compliant, it protects both your dealership’s reputation and your bottom line.

Once your campaign is running, tracking how it’s performing is essential. Look at delivery rates, open rates, and conversion rates to see what’s clicking with your customers. For instance, if messages sent on Saturday mornings get higher engagement than those sent on Tuesday afternoons, you can adjust accordingly. If a particular offer draws more responses, consider doing more campaigns like it. Analyzing real data will help you craft future messages and keep refining your approach.

Merging SMS marketing with other channels, like email or social media, can amplify your results even further. For example, use texting to follow up with prospects who clicked on a link in your email newsletter, or who engaged with a social media promotion. Making your communication consistent across different platforms ensures that folks hear from you in ways that suit them best, increasing your odds of success.

Automation tools can also lift some weight off your shoulders. Automated messages for things like appointment reminders and after-sales follow-ups not only save time but also add a personal touch—without constant manual oversight. Tools that segment your audience based on behavior and preferences can also keep your messages relevant, which boosts engagement and stops people from unsubscribing.

Don’t forget to gather feedback along the way. Asking customers to respond about their experience—either immediately after a test drive or post-purchase—can give you valuable insights on what’s working and where you can improve. Text surveys are quick and convenient, making it easy for customers to share their thoughts.

At the end of the day, SMS marketing is a powerful way for used car dealerships to stay engaged with potential buyers. With its high open rate and near-instant read times, it addresses the shortcomings of more traditional methods. When done well—by curating an opt-in list, customizing your messages, and timing them for maximum impact—you can see a significant jump in leads and sales.

Ready to leverage the power of SMS marketing for your dealership? Download our free guide to learn how strategic text messaging can supercharge your outreach and boost your bottom line.