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Economists differ on what’s coming next. One will argue that consumer spending is still strong, employment is still in an upward churn, and we’re just thawing out from the global freeze caused by the pandemic. Another will say an early 2023 recession is inevitable. 

Dealerships have to deal with future forecasts while simultaneously managing current challenges. Will high vehicle prices and low inventory give way to slowed demand?

Regardless of what awaits the automotive world in 2023, cars are an essential business and dealerships are notoriously resilient. 

The “due bill,” or We-Owe, originated from a need to protect both dealerships and customers from making false claims on a car sale.

Years ago the industry had a less-than-savory reputation for swindling people out of their hard-earned money. Sometimes, dealers would sell less than road-worthy cars for a premium price, only for the vehicle to break down on the new owner. 

A “he said/she said” scenario was born, with dealerships making promises and later backing out of them. With no proof of prior conversations, the customer found themselves with a lemon and no money.

Insignia Group has been working closely with dealerships since we were fortifying our bunkers for Y2K.

Since then we’ve seen the industry crisis of 2008, the Presidential bailout of the Big Three, the pandemic, and a chip crisis to name a few. 

Today, even the most seasoned parts managers are in danger of burnout.

Dealership parts backorders, a symptom of the ongoing inventory shortage, are creating more than profit loss. Interdepartmental tension, frustrated customers, and a stressed-out parts staff have only increased since 2020.

Some parts departments aren’t even getting an ETA for the parts and accessories they need. More loyal customers might be understanding, while most blame the dealership. 

For parts managers, an already difficult job has been exacerbated. Nobody wants to be sitting on their hands waiting on parts, yet that’s the very situation we find ourselves in today. 

What can management do to take hold of the dealership inventory problem and be a positive force?

According to industry experts, the inventory shortage will continue into 2024. 

Though predictions are what they are, dealerships across the country can agree that mass influxes of inventory are not on the horizon. 

E-commerce swallowed up traditional car buying out of necessity that later morphed into convenience. And today's buyers love convenience. So much so, in fact, that customer satisfaction with the buying experience reached an all-time high. 

Most dealerships got a handle on online sales just in time to face a new problem with inventory shortage. Today that issue is top of mind. 

Still, we’re an industry that adapts to changing needs and overcomes them! Dealers can meet the demand for online sales while combating shortages with car pre-sales. 

Not only that, pre-sales are a versatile tool that will also help salespeople learn how to sell cars when it’s slow. 

Parts managers and Service managers face the biggest challenges in increasing profit for services and monitoring the ROI of third-party resources. 

Today, fixed operations are faced with an even more urgent need to increase revenue, while inventory shortages result in unmet needs and plenty of backorders. 

How can a dealership create a successful parts department and a thriving service lane under the current conditions? The answer is simple yet complex.

Accessory catalogs are a dime a dozen. Complex accessory selling systems with reporting to prove R&I, incentive employees, and strategically boost sales are not. 

When your bottom line is a significant department focus, it's vital to have tools that give you a well-rounded picture of what you're selling. Insignia Group is that tool for selling accessories at a dealership. In addition, we have many different reports available that managers can use to monitor their teams and move products faster than ever before—including the report for parts and vehicle views.

You have the Insignia Group system, and you’re pretty sure you’re selling accessories to customers, so now what do you do?

Find out if it’s true! Our system is great for presenting accessories, tracking orders, creating new product bundles, adjusting pricing across the board, and making fixed operation jobs more effective. All those things are wonderful—until you discover that only half the teams that are supposed to be using it are actually using it.

Today, the automotive industry is in critical need of strong leadership. The nature of car buying continues to bend and reshape itself amid the ongoing challenges initiated in 2020. 

Though the term “Dealer Principal” can sometimes be used interchangeably with “General Manager,” this article is geared toward dealership owners. 

Exceptional customer service and high-integrity business practices start at the top of any owner’s priorities! To become a successful Dealer Principal, you’ve got to start with perfecting your own skillset as a leader, customer service manager, salesperson, parts expert, and service strategist. 

Here are three tips for setting yourself apart: