With transaction prices still coasting at historical highs and OEM incentives limited, some auto dealers are
considering pumping the brakes on their marketing efforts amid ongoing inventory challenges in 2022.
However, diminished loyalty and an extended path to purchase due to production delays emphasize why
it's so important dealers stay in consistent communication with customers.
Looking past the next 30 days, it quickly becomes clear why dealers need to continue consistently
engaging their audience to maintain their competitive edge, with three key reasons being:
1. CONSUMER SENTIMENT IS LOW
As new and used vehicle prices remain high and dealerships' inventories remain low, consumer sentiment
has steadily declined.
From March until April 2022, the Consumer Sentiment from the University of Michigan declined by 9.4%.
According to Manheim reports, by May, consumers' views of buying conditions for vehicles declined to the
lowest reading this year.
TIP Proactively engaging customers is key to building trust with buyers. As inventory shortages extend the
path to purchase, dealers need to engage customers earlier than they would in the past, up to 12 months
before a customer returns to the market, to set the stage with personalized messaging that builds trust
and customer loyalty.
Customers rank trust in the salesperson (91%) as equal in importance to price (91%)
in the dealership selection process, with quality of communication (90%) coming in a close third.
Marchex, The Automotive Buyer Study 2021
3 Reasons Not to Pump the Brakes
on Dealership Marketing in 2023
