It’s pretty much official; we live in a crazy economy. But we in the auto industry must not fret. Because, as they always say, if there’s a will, there’s always a way. Here are some ways how to sell cars in this crazy economy.
The past two years haven’t been easy for car dealers and automakers alike. First, there’s the COVID-19 pandemic. The first few months of this health crisis created a domino effect that really hit a lot of businesses, especially car dealerships. And this also caused many car manufacturers to stop production or close their doors for a moment. As a result, the microchip shortage has slowed new car production, making car buyers opt for used cars instead. And just when you think that the issues stopped there, here comes the crisis in Eastern Europe. Needless to say, the early 2020s were really something.
These world events negatively impacted virtually all industries, including the auto industry. And car dealerships, big and small, were not spared. The effects are universal, meaning these don’t happen in the US only. First, dealerships suffer from a meager inventory which turns away customers. Dealerships are also having difficulty finding cars to sell because of the used cars shortage. And since there is a high demand and the supply is low, naturally, the prices of the used cars go up than the usual. These effects alarm everyone in the auto industry, and we’re not surprised.
So what can a dealership do to sell cars in this crazy economy? Many dealerships will do – and are doing right now – look on multiple lots to get a bargain. Some dealerships find success in this process, but most do not. This is time-consuming, and it isn’t as cost-effective at all. In fact, experts are discouraging dealership owners from doing this because of the low inventory. So instead, here are their tips on how to sell cars in this crazy economy.
Expand Your Market Online
More and more consumers are researching and shopping online. If you haven’t come across this fantastic source of leads yet, now is the time. Online marketing has become a critical factor in every business, even car dealerships. Even today, some companies would think that online marketing doesn’t work. But that thought is starting to become oblivious, especially during the start of the pandemic.
So, how do you expand your market online? Here are some no-brainer tips that virtually all businesses have done; getting a website, being present on social media, post your items on eBay and Craigslist, among other things. Of course, these tips really help. But, as we mentioned, most businesses are already doing these. And getting your online presence felt gets more challenging each day because of the saturated state of the Internet.
However, here’s one thing that you can expand your market online to sell cars in this crazy economy; list your vehicles on an online car marketplace. It may look like a listings site like eBay or Craigslist, but online car marketplaces are more centered on the automotive market. This means most people who check car marketplaces are there for one thing – to buy vehicles. There are a handful of car marketplaces around but go and list your cars in a more legit one. You can check one car marketplace here by clicking on the link.
Consider Chat Support
Since more and more people are shopping online, they prefer live chats. Live chats, for them, are much better than contacting through email, phone, and even social media. And why is that? It all boils down to the speed, convenience, and efficiency that live chat support brings. And this is something that your car dealership should take advantage of to sell more cars in this crazy economy.
Apart from having real-time support for your customers online, you get plenty of benefits when you start providing chat support. But here’s one; live customer chat support allows your sales agents to build rapport with as many customers as they want in a day. And when they do that, they attract more customers who would be more than willing to buy cars from you. And when the support is more engaging and helpful, that will create a ripple effect that can multiply your sales in less time.
So how do you start your chat support to sell more cars in this economy? Social media platforms like Facebook provide a chat support tool for businesses, so you can start there. And if you have a budget, you can use a software that lets you place a chatbox on your website. Some of them you can use for free but only with limited features. You can ask your salespeople to communicate with customers using chat support, but it’s much better when you have a dedicated staff to monitor it.
Know Where To Find Cars To Buy (And Sell Them)
Some of the sources used car dealerships have to get cars to sell are car auctions, fleets, and trade-ins, to name a few. However, as we’ve mentioned, the global problems everyone is facing depleted even the most abundant inventory lots. Therefore, for dealerships to sell more cars, one needs to look for other sources.
Although the chances of getting cars to buy and sell through this platform are slim, you can still trust auction sites to provide something to sell. Car auction sites like Manheim still have hundreds of cars each week. And since they do online auctions, you can do the bidding right in the comfort of your own home or office. The only caveat here is that more dealerships are getting cars from auctions instead of trade-ins. Therefore, the competition will be tight, and may the best bidder wins.
Another way to buy cars to sell today is to hunt for cars for sale online and offer them a trade-in. Surprisingly (or not), many people you will find online are trying to sell their vehicles. Send them a message if they want to do a trade-in and negotiate. Talk to a seller within your city to save more money and time.
Help Customers On Financing
Since the pandemic started, most people have followed a strict tight budget. So when they buy a vehicle, most likely, it means that they have thought of it for quite a while. With that said, this might be something that you can tweak and offer to help attract buyers. After all, people are trying to get the most bang for their buck, might as well attract them with something that they can save from.
It is most likely that people will go through pre-arranged financing to save some money when pushing to buy a necessary purchase, like a car. And when they do, they need to figure out their budget first and then go to their bank or a credit union before heading out to any dealerships. This way, they can be confident about how much they will spend monthly on their supposed car purchase.
So how can this help you sell cars? You don’t really need to do some financing promos, although you can if you want to. However, you can also suggest to them the pre-arrange financing if this is something that they don’t know yet. This may not guarantee you a sale right away, but when you help your customers earn some extra cash, this will win you potential loyal patrons. And the results may be long-term.
Sell More Reliable Cars, Especially If Used Ones
And the last on this list of ways to sell cars in this unpredictable world we live in today is to focus on selling reliable and popular vehicles. Again, this has something to do with the state of the global economy. Since people are trying to keep as much money as possible, they will always look for the most reliable ones when they look for a vehicle. They will be after cars that are more in function and maybe less in form, something they can use for the long haul.
Whether you sell new or used cars, you might need to focus on reliable yet popular ones. If we have to guess, a pick-up truck will always be a good bet, but you can always sell other popular ones. This way, you can always have customers check out your inventory. Also, you will have more chances of closing a deal. To do this, you can do a little digging. Research on the Internet the most popular cars in your area or state. You can also check on your previous monthly sales and see what vehicles are the most popular with your customers.
Now you may ask, how can you do it when there’s a scarcity of vehicles. You don’t really have to sell only those cars that can guarantee you sales. It’s always good to have some variety in your inventory. But when you do have those best-selling cars, be mindful enough to highlight them in your marketing. Post them on your social media platforms and websites.
Hope These Tips On How To Sell Cars In This Crazy Economy Can Help You
We can only hope that all of these problems in the world will go away soon. But while all of us are still waiting for the dust to settle, car dealerships shouldn’t stop selling cars. These tips will allow you to wade through this tough time, and these are something that you can still do even after the pandemic and the world is on the verge of starting fresh.
When you run a used car dealership, it’s also essential to make each process faster and smoother for the business to sell more cars in less time. Talk to one of our account executives here about how it can be done today.