Dealership Corridor
Welcome to the New Year rush! At your dealership, you’re trying to move out those older units while negotiating for new models. You’re also connecting with key business partners to review and finalize plans and projections for 2025. And last – but not least – you have a calendar chock full of social commitments with friends and family! But what if I told you that you could connect with more customers and make more in 2025? Let me explain.
Moving more metal is an uphill battle for everyone these days with lingering inflation, high interest rates, and consumer uncertainty. But how many of your customers are turning away because of financial uncertainty versus a subpar online experience?
Forget everything you thought you knew about how online sales inquiries are being handled at your dealership. Our database of more than 1,000 mystery shop inquiries from across the country uncovered hidden goldmines of missed sales opportunities, surprising customer perceptions, and a BDC truth so shocking it could revolutionize your approach to online sales.
Here are three of the biggest issues impacting missed sales opportunities. Read the full report in our e-book.
According to Wards Intelligence, U.S. light-vehicle sales softened in January after December’s strength. While January’s weaker results were likely a pull-back from December’s surge, affordability and inventory also played roles, with availability well below historically normal levels. At the same time, interest rates for financing purchases were at long-time highs, and the inventory mix on dealer lots is weighted toward higher priced vehicles.
Interest rates and inflation clearly put a damper on sales in 2023, but some positive economic news in January should prove beneficial. Consumer sentiment is showing signs of improving as inflation eases and gas prices drop across most of the country. Hiring picked up sharply in January as employers added a booming 353,000 jobs, highlighting a labor market that continues to defy high interest rates and household financial strains, while at the same time incomes of most Americans are growing.
Joe Langley of S&P Global Mobility notes the U.S. economy has shown a resilience that points toward growth “for the foreseeable future.” Sales of new vehicles should reach 16 million units this year, which is healthy but still short of the auto industry’s high-water mark of 18 million units set in 2018.
