Selling Cars in 2019: Key Trends for the Future of Automotive Retail
With just two months left in 2018, dealership owners and managers should already be thinking carefully about 2019 strategy. The auto retail business is changing fast and in order to remain competitive dealerships must always be planning for the future and adopting new trends and management techniques to drive sales and profits.
As you think about your plans for the new year, it’s vital to understand the state of the industry and make sure your dealership is staying modern and relevant. Below are 4 critical concepts that will shape auto retail in 2019.
#1) Embrace Social Media. Today’s car buying consumer is deeply connected to social media. A major purchase like a new vehicle will almost always be considered at least partly through the lens of social media as customers are spending more and more time on platforms like Facebook, Instagram, SnapChat and LinkedIn. For your dealership to remain relevant, you must have a solid and engaging strategy across the social media platforms used by your target audience. Your dealership should also have a clear understanding of how these social channels differ and how to customize your messaging per channel. For example, your commercial vehicle department may find great success through LinkedIn, while offers and vehicles favored by millennials may shine on SnapChat and Instagram.
#2) Invest in Digital Retail. Today’s car buyers are busy and expect time-saving digital conveniences available on your dealership’s website. Too many car dealer websites are simply “brochures” lacking important features that customers expect. Your website should include tools like trade appraisal, deal structuring, applying for a lease or financing, and scheduling delivery. The same is true for your parts and services department, which should include visually appealing digital tools like electronic multi-point vehicle inspections, as well as communications and payment features that allow customers to communicate efficiently with service advisors and make payments online.
#3) Take subscriptions Seriously. The subscription economy is likely to thrive in 2019 and beyond, with younger customers often having a preference for “everything as a service.” Savvy manufacturers are already investing heavily in this model, with offerings like the Porsche Passport for example. Dealerships must not ignore this trend! Don’t wait for manufacturers to roll-out OEM subscriptions and compete with your dealership for the same customer. Instead, take this trend seriously and work to develop your own, dealer-branded subscription service that offers more choice to consumers than OEM services.
#4) Focus on Compliance. 2019 is the year for your dealership to truly embrace a culture of compliance and protect yourself from future fines and penalties. Especially as the economy continues to boom, now is the time to take compliance seriously and get ready for future challenges. Take important steps such as developing a strong complaint resolution process, displaying a code of ethics online and in the showroom, and effectively training all employees on compliance processes they must follow. Keep in mind that compliance does more than protect against downside: building trust is key for the automotive industry as a whole and creates competitive advantage for your dealership in particular.
By taking these 4 important trends seriously and adapting your strategy to fit the needs of a changing market, your dealership is sure to have a happy new year and find even more growth in 2019 and beyond. If you are a dealership owner or manager and you’re looking for more detailed advice and strategy on how to grow and thrive next year, Max Zanan and his team of automotive retail experts can help. Contact Max today for a free consultation.