Category: Industry Trends

Categories
Industry Trends

Get on the Road to Digital Sales Success

Does it feel like aside from news on the pandemic and supply chain challenges, the mantra for the last two years has been digital sales? In their last quarterly shareholder meetings, each of the publics discussed their digital sales platforms. In the most recent car buyer journey study, Cox Automotive stated that 80 percent of consumers plan to complete at least part of their vehicle purchase online, and 25 percent expect the vehicle purchasing process to happen entirely online.

Of course, we know there is a difference between expectations and reality. In this digital transition, very few transactions happen online, soup-to-nuts. The average consumer’s actual experience reflects a more hybrid model, with both digital and physical touchpoints.

Dealers navigating this transition need a strong customer engagement strategy, both on and offline, which requires new skillsets and training. From the initial encounter to closing the sale, your team members must be adept at engaging with the customer on their platform of choice. The salesperson who masters these many nuances will make the sale – and get the commission!

Continue reading “Get on the Road to Digital Sales Success”
Categories
Economy F&I Industry Trends

2022 Predictions: Demand for Units Bodes Well for Dealers

2021 has felt like a dance with very complex steps, back and forth. In the first half of the year, the economy took a step back with severe semiconductor chip shortages, persistently high levels of COVID-19 infections across the country, and challenging labor shortages. As a result, the seasonally adjusted annualized rate (SAAR) for August dropped to 13.09 million, reflecting a steady decline since the April peak of 18.5 million according to Motor Intelligence. The August reading was the weakest of the year and the lowest since June 2020’s 13.23 million rate, early in the COVID-19 pandemic.

Now, we are experiencing a different story. According to TD Economics, in October, U.S. vehicle sales took a step forward, rising by 6.5 percent month-over-month to 13.0 million SAAR units. Last month’s gain came in well ahead of expectations, which called for a more modest gain to 12.5 million units. These forward steps brought an end to five consecutive months of declines.

However, inventory availability is still taking a step back, putting a false cap on consumer demand. New vehicle inventory remains compressed, with estimates for October revealing that dealership supply slipped to an all-time low of just 20 days. The combination of strong demand and limited inventory has continued to exert upward pressure on new vehicle prices, which are estimated to be up nearly 20 percent from last year’s levels. The October gain indicates that at current depressed production levels, 12 million seems to be the natural floor for sales.

Continue reading “2022 Predictions: Demand for Units Bodes Well for Dealers”
Categories
Dealership Training Economy Industry Trends

Preparing for a Different Kind of Sales Season

It’s officially fall which brings football, cooler temperatures, and 2022 vehicle models. We can predict that at least two of those things are happening this year. New vehicle production challenges continue to linger. Chip shortages, supply chain disruptions and factory shutdowns still plague our need for new inventory.

According to Cox Automotive, only 1.2 million new vehicles were ready to roll onto lots as of July 19th, compared with the average inventory of 3 million. In August, dealers reported just under 1 million new cars on lots, 72 percent lower than August 2019. The major manufacturers have projected production reductions well into the fall, making the new inventory forecast even gloomier.

Continue reading “Preparing for a Different Kind of Sales Season”