Just when car dealerships thought things were starting to return to normal, snowballing supply chain issues became a major headache. Various inventory issues have plagued car dealers during the pandemic, from temporary car plant closures and shuttered used car auctions to the current semiconductor shortage.
In many cases, finding dealership-level solutions to these inventory issues has been a moving target. If the past year has shown us anything, it’s that being responsive and adaptable to industry change is more critical than ever.
So, how can your team find ways to minimize the impact of supply chain and inventory issues on your dealership’s bottom line?
Let’s take a look at several tips from our industry experts and dealership partners for effectively navigating new and pre-owned vehicle inventory issues:
- Implement more aggressive trade incentives: What sells best in your market? Provide an extra $500-$1,000, or even something unique like a newer model year’s value, to acquire those vehicles via trade.
- Offer early lease termination forgiveness or incentives: Consider providing $1,000 lease loyalty rebates or mileage overage forgiveness to attract lease returns and fill your pre-owned (and sometimes CPO) inventory.
- Make “Value Your Trade” and “We Buy Cars” pages prominent on your website: Utilize form fills and instant vehicle appraisals to gain new car leads while also stocking up your used car inventory.
- Consider offering discounts for customers willing to wait for new car models: Even OEMs facing production cuts due to the chip shortage are offering factory discounts for buyers who wait. This is something that franchise dealers can consider to boost brand and dealership loyalty, turning shoppers into buyers.
Now that we’ve tackled the industry’s supply issues — something that’s undoubtedly on the mind of anyone who works at a dealership — we’ll cover some of the other unique challenges and opportunities 2021 is presenting.
Ready to get started on a path to dominate your competition in Q3 and beyond? It all starts with the customer, including their preferences and their experience interacting with your dealership.
Stay tuned for next’s week topic on Post-Pandemic Shopping Patterns!