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Auto industry changes are inevitable, and it’s no surprise that dealerships are interested in what trends are heading their way.
While automotive technology continues to advance, clients are approaching car purchases differently than they were even just five or ten years ago. With those changes, dealers are scrambling to keep their percentage of sales, and monitoring auto industry changes are one of the ways they can drive their financial statements in the right direction.
Expect to see these five substantial auto industry changes soon, and find out how they’ll impact the success of your dealership.
These auto industry changes are already on the road
1. Pre-owned is preferred
The appeal to own new has decreased, and clients see the value in purchasing pre-owned vehicles. Automotive News forecasts new car sales to fall short of 17 million for the first time in four years. The only new cars that show steady appeal are light trucks, SUVs, and crossover vehicles. Electric and Hybrid models are showing a steady increase and will account for almost 5% of all new car sales in 2018.
2. Ride-sharing popularity increases
While ride-sharing services like Uber and Lyft have more of an impact on taxi businesses than car sales, they still create noticeable auto industry changes. City dwellers, especially millennials prefer to spend their income on experiences and don’t feel the need to spend their money on a monthly car payment when they can get a car in a snap with an app. The introduction of automated vehicles may help balance out the loss in sales, but that technology still has a long way to go.
It’s important to watch your CRM reporting to find niche audiences in your community. There are still plenty of people out there looking to purchase cars and incorporating CRM tools into your daily routine will increase the chance that they buy from you.
3. Introducing car subscriptions
In today’s world, you can subscribe to just about anything under the sun, and the most surprising, yet inevitable auto industry changes of the future have to be car subscription services.
Companies such as Cadillac, Lincoln, Volvo, and Porsche are rolling out subscription plans for clients that include insurance, maintenance, taxes and registration fees all in one monthly payment.
Car subscriptions are incredibly appealing to those who live in big cities who may not want to deal with car sharing or rentals. They’re also great for people who don’t want to commit to a lease or purchase. Besides, how cool is it to have the opportunity to drive a new vehicle every month, or even week?
4. Connected cars
Companies like Tesla are using apps to unlock their cars, and BMW will integrate Alexa compatibility in 2018. Internet technology is not necessarily one of the new auto industry changes, but it is one that is evolving and increasing in demand. Before we know it, it will be a standard feature in all vehicles.
5. Clients will spend less time in dealerships
Car-buying websites have changed how clients buy cars. Potential customers want to stay home to do their research and spend as little time inside a dealership as possible. While this goes against everything you know about getting traffic through your doors, it can also be a blessing in disguise. Use AutoRaptor CRM reporting to follow trends. Stock your lot with the cars your demographic is seeking and set yourself up to attract the customers who practically sell to themselves. You spend less time trying to push hard selling vehicles when you have the right tools to stock sellable units from the get-go.
You may not be able to control auto industry changes entirely, but you can control how your dealership succeeds by incorporating customer relationship management (CRM) software from AutoRaptor. AutoRaptor CRM goes beyond the BDC office and helps streamline the sales process for your entire team with reporting, outbound calling and emails, mobile features, and more.
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