Navigating New Landscapes

With manufacturers finally refilling showroom floors post-pandemic, auto dealers are now faced with the challenge of rebuilding their sales volumes and nursing unfavorable reputations. The big question is — how can they best navigate this new landscape?

According to new studies by Wards Auto and Urban Science, here’s what dealers need to know:

⚔️ Challenges ⚔️

• Perception Gap: Both dealers and auto buyers are less confident about the readiness of dealerships for the future. Only 27% of auto buyers believe dealerships are future-proof, closely mirroring the views of dealers at 31%. This is an astonishing 80% decrease in the perception gap within a year.
• Resource Gap: While dealers maintain some confidence, only 34% of auto buyers feel that today's dealers offer the resources, tools, and technology needed for a smooth buying experience. Even fewer auto buyers, just 30%, think salespeople have the expertise necessary to navigate the complex purchase process.
• Age Gap: Preferences for online car shopping are highest among millennials (ages 27-42), males, and those living in the West. Millennials are also most likely to explore alternative methods of purchasing vehicles.

🛍️ Trends 🛍️

• Digital Resistance: Surprisingly, auto buyers are resistant to the idea of purchasing a vehicle entirely online, despite the ongoing digitalization trends.
• Manufacturer Dealerships Rule: Manufacturer dealerships remain the top choice for auto buyers. Interest in national, used dealerships has actually decreased, highlighting the continued appeal of branded outlets.
• Hybrid Shopping: Auto buyers adopt a hybrid approach, combining online research with in-dealership visits. They seek price quotes online but still value in-person engagement, emphasizing the need for seamless omnichannel experiences.
• Alternative Formats: Dealers are adapting to change, with 91% considering alternative retail formats, especially for the growing market of battery-electric vehicles (BEVs).

‍🗣️ CTA 🗣️

• Invest in Training and Facilities: Prepare for the increasing demand for BEVs by enhancing training and facilities.
• Embrace Technology: Update technology and ensure all staff members, from sales to finance and service, are well-versed in omnichannel tools.
• Seamless Communication: Offer multiple communication methods to enable customers to complete their purchases effortlessly.
• Alignment with Buyer Priorities: Acknowledge and address the gaps between dealer and consumer priorities to fine-tune omnichannel processes and reshape sales methodologies.