John Stephens
Executive Vice President
EFG Companies
As a native Houstonian and an automotive industry executive, I am closely following the news coverage of both the impact of Hurricane Harvey on the Houston area itself, and on the automotive industry within the area. A recent article from Wards Auto caught my eye, with the headline, “Expect Post-Hurricane Car-Buying Surge”. The article details how auto demand will increase in the extended aftermath of the hurricane as people evaluate the damage to their homes and vehicles, and begin receiving insurance payouts.
This is good news for those dealers who are able to quickly replace their damaged inventory with new vehicles. With an estimated 500 dealerships affected by the storm, it can be expected that while it will be a race to update inventory, there will be a period of “downtime” while both dealers and consumers survey their homes and businesses to understand the full scope of the damage.
When a large scaled natural disaster occurs, dealers can typically expect an upsurge in unit sales. However, this means that in addition to addressing inventory concerns, dealers need to prepare their teams to better manage an increase in foot traffic. In the immediate aftermath of a natural disaster, dealers have the time to undergo these preparations, and it’s important that they use that time effectively.
One of the biggest challenges during a car-buying surge is simply servicing the increased traffic. This could mean extending dealership hours, scheduling to have more employees cover the showroom floor for longer hours, and even hiring more sales and F&I team members to help spread the load. In addition to ensuring coverage, it’s important that your sales and F&I teams manage each customer’s time effectively.