Over half of customers (approximately 62%) stop doing business with a company because of bad customer service.
Used cars are having an influencer moment. In incredibly high demand, boasting lofty price tags they once only dreamt of, used cars are center stage in the automotive industry. Gone, at least temporarily, is the stigma of used vehicles being old clunkers. The used car stereotype has been replaced by an image of a shiny 2017 model, being fought over by prospective buyers. In 2021, used car buyers aren't always strapped for cash, looking for a bottom dollar deal, or someone hardly interested in aesthetics. Used car buyers are everywhere you turn, and the profit potential is limitless. By adding protection accessories to your used car lineup, you'll increase the car's longevity and create a satisfied customer—who will soon forget they were ever after a 2022 model.
The automotive industry had one of the most striking yo-yo effects, from the onset of the pandemic to today. First, Covid shocked the globe and shut dealerships doors, causing everyone to fret about the industry's future. Today, we're navigating chip shortages and selling units for more money than we were before the virus. In a fascinating turn of events, used cars are increasingly harder to come by, new vehicles are selling like Black Friday specials, and inflation is staggering. With no end to the chip shortage in sight, dealers are progressively focused on moving used vehicles. Through the use of technology upgrades, you can create the vehicle your customer really wants—regardless of inventory. You'll give any old vehicle a serious makeover, create a satisfied customer, and turn a profit without overcharging.
Around 330 million people said they'd consider buying a used car for their next purchase. That's nearly 70% of the American population, and those are pre-pandemic numbers. Now that we're maneuvering a chip shortage, the door of opportunity is wide open for used car sales, despite inflation. Customers are hardly thinking of a deal when they buy a car in the fall of 2021; they're mainly trying to get a fair price. Today, you don't have to bottom out prices to drag someone in the door. Instead, price your used cars the same way you would if they weren't impossible to come by and boost profit with accessory sales. Used car buyers were already populous and are now joined by other buyers who couldn't even find a new car to buy. There's a straightforward strategy where everybody wins.
Releasing a young driver onto the road can be a nerve-wracking time for parents. Car accidents are the leading cause of death for teenagers in America. When moms and dads come into your dealership during the back-to-school season, set their minds at ease with safety tech accessories for their kid's car.
The year was 2009, and I'd just moved to the big city for my first job out of college. Sporting a pink razor flip phone, I was ready to take on my first sales territory. The problem was, I didn't know how to get there. So a co-worker loaned me his TomTom navigation system, gave me a crash course in how to use it, and I set out into the world.
Fast forward a couple of decades, and we're projecting navigation onto our dash—after getting in a car that we started from inside. The kids are watching YouTube videos in the back seat, and we're holding a casual conversation with Alexa as we merge onto the freeway. Those are just the basics, of course.
If your dealership only puts extra effort into the service and parts departments when sales are low, you need to get real. Fixed operations deserve the same love and attention as your variable operations departments! We have four proven methods to increase service customer leads, customer satisfaction, and increase revenue.
The computer-driven world we live in has reached an impasse with the global chip shortage. Some analysts predict the shortage will continue into 2023, causing a ripple effect in the automotive industry. Highly coveted new vehicles with advanced technology are in low supply. Dealerships collectively are struggling to recover from pandemic sales while navigating the next obstacle.
In times like this, we can fall back on certainties. Americans are driving, and their vehicles will have to be serviced to last. See our methods to get more people into your service lanes than ever before. Be more than a place people go to buy vehicles!
You can’t neglect fixed ops. Technically, you could, and you’d probably end up crying in the parking lot while they turn your dealership into a Costco. Fixed ops departments are carrying the store these days, so they deserve the same ongoing training and attention that the sales department receives. They probably deserve more attention than the front of the house—and donuts.
Fixed Operations is an industry term for the parts and service departments; and it’s the hidden powerhouse of a dealership. According to CrossCheck, fixed operations made up at least 49% of a dealer’s gross profit in years past, and probably more than that in 2021. If it wasn’t for fixed operations, plenty of dealerships would struggle to keep the doors open; cementing that the back of the house is a foundation on which dealerships are built.