automotiveMastermind

While some dealers benefited from record-breaking sales and profit margins in 2020 and into 2021, maximizing the efficiency and efficacy of your dealership’s marketing is as important today as ever.

Aside from inventory shortages impacting a vast majority of brands, dealerships from coast to coast are strategizing on to overcome new and ongoing challenges alike.

Following challenges from COVID-19 and growing inventory concerns spurred by the microchip shortage in early 2021, dealers’ performance in Q2 varied greatly from brand to brand, and store to store.

Today’s buyers are more informed than ever and most are well aware of the ongoing inventory challenges dealerships are facing – as well as how the vehicle shortages are impacting car sales prices.

In the dealership world, the one topic on everyone’s mind is inventory shortages. From coast to coast, nearly every brand is experiencing new vehicle inventory shortages, challenging dealers to adapt.

According to a recent industry survey, 76% of in-market vehicle buyers are aware of the ongoing chip shortage, 83% of which are aware of its impact on the new vehicle market.

Looking specifically at pre-owned, the average retail selling price of pre-owned vehicles by new car dealerships has increased by 11% compared to 2020.

Forecasts from IHS Markit estimate 1.3 million fewer light vehicles were produced in the first quarter of 2021 due to chip shortages and other external influences.

For auto dealers, the ongoing chip shortages have resulted in historically low new vehicle inventories, as well as contributed to sky-high auction prices for pre-owned models.

Amid countless external factors driving ongoing chip shortages, dealers are forced to adapt to evolving inventory challenges to secure both their immediate and future success.

According to IHS Markit, an estimated 1.3 million fewer light vehicles were produced in the first quarter of 2021 because of semiconductor shortages, historically low new vehicle inventories.

According to an IHS Markit report, “During the past several years loyalty has emerged as one of the most watched metrics in the US new vehicle industry, along with market share and profitability."

With countless evolving factors impacting OEM production and deliveries, now is the time for dealers to focus on the elements they can control.

Mastermind Chief Commercial Officer launched the video podcast series “The Dealer Download” in 2020 with the goal of helping dealers navigate the pandemic and beyond.

As disruptions ranging from rapid digitalization to widespread inventory shortages shake the auto industry, success for dealers continues to be defined by how well teams can adapt and embrace change.

Dealership business development centers, also known as BDCs, have long been the topic of debate at many auto dealerships. But, never has the topic been more relevant than now.

With the automotive industry rapidly recovering while simultaneously evolving to changing consumer buying habits, a once-niche segment has become more top-of-mind for OEMs: EVs.

Dealerships of all sizes are undoubtedly familiar with metrics and dashboards. Whether it’s your CRM, DMS or sales platform, a good part of your day is already spent on reviewing performance reports.

What are your dealership’s greatest challenges in 2021? Are they the same today as they were five years ago? Chances are, they’ve likely evolved over time.