Tag: dealership training

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Dealership Training

Revealing Missed Sales Opportunities

Anthony Olivieri

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.

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Training

Training with a Capital ‘T’

Glenice Wilder

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.

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Dealership Training

Is Your Team Made Up Of Order Takers or Sellers?

Dealerships and salespeople alike have reaped the benefits of healthy profit margins over the last few years. However, just as the margin pendulum swung deep into seller’s market territory, it’s beginning its backward trajectory into a buyer’s market.

While inflation and lack of inventory have kept vehicle prices high. Interest rates, climbing debt, and lack of affordable vehicles are pressuring more consumers out of the market. According to Experian, during the first quarter of 2023 the average APR for prime consumers fell between 6.40 percent for new vehicles and 8.75 percent for used vehicles. Think about that for a second. If a prime consumer can’t get a rate below 5 percent, what does that mean for nonprime and subprime consumers?

As of 2021, Experian reported that nearly one in three Americans had a subprime credit score. So approximately 33 percent of your customers don’t qualify for an 8.75 percent APR. Their range spans from 8.86 percent to 21.32 percent. On top of the APR issue is rising debt. Because consumers purchased both new and pre-owned vehicles priced well above historical norms for the last three years, those three-year-old consumers are returning to dealerships with significantly less of their auto loan paid off. According to Edmunds’ fourth quarter data from 2022:

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