Consumer Concerns and Fewer Returns

🌟 If knowledge is power, then utilizing that knowledge is a superpower. Here at ASOTU, you can have both:

• According to a report by S&P Global Ratings. US drivers are keeping their vehicles for an average lifespan of 12.5 years. This represents a record high and signifies a significant increase compared to previous years.
• Factors contributing to this trend include improved vehicle quality, longer financing terms, and economic uncertainty.
• The longer lifespan of used cars will likely lead to reduced new car sales and increased demand for maintenance and repair services. 

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• A study by the University of Michigan’s Survey of Consumers shows that buyer sentiment has already fallen 9% this month, similarly due to economic uncertainty.
• Consumer concerns about the economy grew in May, influenced by negative news like the ongoing debt ceiling standoff.
• Long-term economic expectations also fell by 16%, suggesting consumers believe a potential economic downturn will not be short-lived.

🌟Dealers can leverage these stats in several ways:

👻 Transparency — Be clear and honest about pricing, financing options, and vehicle conditions. Building trust with consumers can lead to a more positive view of the auto industry and, by extension, the economy as a whole.

💸 Affordability — Offer a variety of price-points and financing options, like low-interest loans or flexible payment plans, can make purchasing a vehicle more accessible for many.

🎁 Incentives — Dealers can offer promotions and incentives to help stimulate sales, such as rebates or value-added extras like complimentary oil changes or maintenance.

⚔️ Protection — Because consumers are keeping their vehicles for longer, dealers should consider beefing up their warranties and service plans. These can cover major repairs and regular maintenance, creating a sense of security for car owners and fostering customer loyalty.

🥰 Care — Providing exceptional customer service can subvert the mediocre attention that customers often expect, ensuring you repeat business.

💻 Digitization —  Enhancing your online presence with user-friendly websites, virtual showrooms, and online financing approval can make shopping more convenient.

🧠 Knowledge — Dealers should help fill in the gaps of their customer’s knowledge. Whether it’s the benefits of ownership versus leasing, the value of different models and features, or how to take care of their vehicle to maximize its lifespan, it’s important to inform as much as it is to sell. This will help consumers feel more confident in their purchasing decisions and further enstill trust in your business.