Automotive Local Markets | Dealer Reputation and Competitive Analysis

Top 10 Portland Car Dealers: Automotive Reputation Leaders in OR

Written by Content Marketing Specialist | Jun 24, 2024 8:18:57 PM

Portland, Oregon has long been a hub for car enthusiasts, playing host to a diverse array of custom, classic, and eclectic car shows throughout the year. The city's most notable automotive event is the Portland Swap Meet, which is the largest one of its kind in the United States.

In addition to its thriving car culture, Portland has also emerged as a leader in the adoption of electric vehicles (EVs), with few cities in the nation rivaling its commitment to sustainable transportation and the embrace of electric alternatives. 

Portland's car enthusiast community seamlessly blends its love for vintage and custom vehicles with a progressive outlook on the future of transportation. Its streets are a tapestry of classic cars, EVs, and everything in between, showcasing the diverse nature of its automotive history

With this, it's fitting that Portland’s automotive dealer scene fosters a starkly competitive atmosphere. Using our Online Reputation Index, which ranks dealers by review volume, star rating, and review response rate, we’ve identified the Portland dealerships with the best online reputations.  

  • The clear reputation leader amongst Portland dealerships is Beaverton Toyota. With a reputation health score of 95, a perfect response rate, and a high monthly review volume, this dealer has projected far above the competition. While Beaverton’s adjusted star rating of 4.35 falls slightly behind other top dealers in the area, this only leaves room to improve and further widen the gap.
  • The remaining dealerships on the overall top dealers list are all within reach of each other. Their reputation health scores only differ by 9 points from second to last place, with Ron Tonkin Acura scoring 73 and BMW of Portland scoring 64.
  • Aside from Beaverton Toyota, the top 10 Portland dealerships lack review volume proficiency. To improve, they should implement a consistent review solicitation strategy and focus on increasing both monthly review frequency and lifetime review volume. Aside from this, these dealer’s strong adjusted ratings and response rates are enough to carry them into competition for the top spot. 
     

  • It’s no surprise that the dealership with the most comprehensive overall reputation strategy sits atop the rankings for luxury dealerships in Portland. With a perfect 100% response rate and a nearly unbeatable average rating of 4.86 stars, Ron Tonkin Acura further bolsters its lead by generating the highest review volume among luxury dealerships in the area.

  • Mercedes-Benz of Wilsonville has one of the strongest lifetime review volumes in the luxury arena, but its 3.96-star rating prevents it from ascending to the 3rd or 4th place ranking. Improving customer service and investing in a strategy to better handle customer complaints–like responding promptly to negative reviews and offering tangible solutions– will help this dealer rise in the ranks. 

  • The top 10 non-luxury dealers list differs only slightly from the top 10 overall dealers list for Portland. This means that in Portland, non-luxury dealers are doing more to manage their online reputations and keep their customers happy. 

  • Here, Beaverton Toyota secures first place again, beating the competition by a landslide and solidifying itself as having the best online reputation in Portland. Where Beaverton Toyota stands out is in relative monthly review volume. Its commitment to consistent review generation has paid off and resulted in more engaged customers, a high overall star rating, and a well-rounded reputation. 

*Note from the editor. The Automotive Reputation Index offers substantial coverage of the nation’s dealerships, but it’s still growing. If your dealership is not yet listed on the Index and you’d like to add it, submit your information and we will add it during a regularly scheduled update, roughly once per month.

Widewail's rankings are based on the Widewail Automotive Reputation Index. Explore the full dataset:

Ranking Methodology

To rank these dealerships fairly, we chose a method that takes into account the fact that dealerships on our list receive a wide range of monthly review volume, in part due to varying levels of opportunity. For example, luxury brands simply can never sell as many cars as non-luxury brands, the price point limiting a luxury dealership's market.

To compare two dealerships with very different review volumes directly wouldn’t be fair. A dealer with two 5-star reviews doesn’t necessarily deserve to be ranked higher than a dealer with 200 reviews and a 4.5-star rating. With few reviews, the former doesn’t offer enough data for us to use to understand its performance. However, we couldn’t just ignore locations with very few reviews, as that would introduce bias into our rankings.

To solve this, we used "adjusted ratings" in our calculation of dealership ranking. In essence, "adjusted rating" is a dealership's star rating that takes into account how its review volume compares to that of other dealerships in that area. We calculated adjusted ratings by using a technique called additive smoothing which we explain below.

Additive Smoothing

The approach we’ve used is a form of what’s called “additive smoothing.” This process allows for an unbiased way to rank two otherwise unequal dealerships. At its core, additive smoothing levels the playing field by artificially increasing the number of reviews each dealership has by adding the same number of reviews of each star rating to every dealership.

Customer Engagement

Additionally, we take into account the percentage of reviews that a dealership has responded to in our calculation of ranking, as Widewail strongly believes that review response is indicative of a strong reputation strategy.

Activity

The last component revolves around how much review volume a dealership receives, which can be broken down into two parts - their lifetime volume and average monthly volume. Lifetime volume can be thought of as a popularity metric. It’s an important metric and one of the first numbers that a potential customer will see when they start looking at reviews. The second, average monthly review volume, is representative of how active the dealership currently is. We can think of it as follows, lifetime volume captures a historical view of the dealership whereas average volume gives insight into the current status. The final component for the volume metrics is to scale them so there is a more meaningful comparison. To do this we use what is known as min-max scaling. First, we group dealerships by their respective city and then find the dealership with the most volume and least volume. Then for each dealer in the group, we subtract the lowest volume and divide by the difference between the highest and lowest volume. The formula for this can be seen below.  

x' = x - min(x)max(x) - min(x)

The main advantages of this approach are that all the volume metrics can be mapped to a value between 0 and 1 and the relative difference between dealership volumes can still be preserved. 

Below we see an example of this where we have 9 dealerships with differing lifetime volumes, which we then scale. Notice that the relative distance between the actual volumes and the scaled versions is the same. 

Below we have an example of ten dealerships, their review volume, and the adjusted relative volume. We can calculate the relative volume by sorting the dealers by review volume and determining the percentage of dealers that have fewer reviews. Here we see that dealer D had the most reviews and so they get a score of 1.  

Lifetime Volume

Scaled Volume

4619

1

4065

0.88

3922

0.85

1783

0.38

1001

0.21

810

0.17

164

0.03

101

0.02

22

0

 

The Ranking Formula

(adjusted rating / 5) * 0.3 + (response rate) * 0.3 + (lifetime volume) * 0.15 + (avg monthly volume) * 0.25

Weighting Rational

We chose to weigh each feature as follows: adjusted rating accounts for 30% of the overall score, response rate also accounts for 30%, and review volume is 40%, which is further broken down into lifetime volume (15%) and average monthly volume (25%).

Weight selection is based on Widewail’s depth of expertise in the industry and we believe is a fair representation of what should be considered a standout reputation. 

We’ve broken the weighs into three categories:

Activity (40%)

We believe the amount of review activity is the most important indicator of reputation health for a business, and is a leading driver of local search rankings. We’ve broken this category into two components: lifetime volume (15%) and frequency (25%). Lifetime volume is our “popularity” metric. 

Engagement (30%)

Engaging with customers by responding to reviews is a key component of a healthy reputation.

Quality (30%)

The rating has a substantial impact on if a business shows up in local search and if that business is entered into a prospect’s consideration set. Rating is a key identifier of business health.

Calculation Details

If a company has an adjusted rating of 4.2, responds to 10% of their reviews and has an adjusted lifetime volume of 0.90 in their city and 0.87 for their scaled average monthly review volume, then we would calculate their overall rating as follows

(4.2 / 5) * 0.3 + (0.1)*0.3 + (0.9)*0.15 + (0.87)*0.25 = 0.252 + 0.03 + 0.135 + 0.2175 = 0.6345 * 100 = 63.45

Note: Since response rate accounts for 30% of the overall ranking, if a dealer doesn’t respond to any reviews that automatically caps the max value they can receive to 70.