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While the automotive industry has encountered numerous disruptions in recent years, the current market is presenting entirely new challenges and opportunities for auto dealers, even as inventory levels begin to normalize. The long-term financial implications of customer buying habits shifting are huge for dealers.
Zenith Vehicles, the UK’s largest fleet management company is combating the fall in used electric vehicle prices by offering extensions to car contracts to customers. The group, whose profits for the year to March 2024 took an EV hit, said the biggest challenge it faced over the past 12 months has been the falling used car prices.
Dealerships can’t market with little or no inventory. Loyal customers will wait for what they want. Myth #2: Dealerships can’t market when they have little or no inventory. Faced with fewer vehicles on the lot and already high consumer demand, some dealers may think there’s no need to market to their customers.
Every year leading into the holidays, dealers and their customers have typically known what to expect when it comes to year-end sales events. Instead, this year Honda launched a new brand-focused marketing campaign promoting the brand’s overall quality, safety and reliability demonstrated through the years.
With fewer brand incentives and deals than in previous years, it’s critical dealers take a targeted and proactive approach to their holiday marketing. At this point, you should turn your analytics tools loose on your potential customer base to identify and rank the prospects who will be most likely to buy the vehicles you’re selling.
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