Dealership Trends In Fall 2024 To Look Out For
What To Expect For Your Dealership & Ways To Plan
By Tom Wolf, CPA & Justin Ward
As fall approaches, dealerships are navigating a shifting landscape with unique challenges and opportunities. Below are key trends shaping the industry this season and actionable steps your dealership can take to stay ahead.
1. Tightening Operations
What’s Happening
Many dealerships are tightening operations due to market pressure and are seeking creative solutions for growth.
Action Steps
Focus on cost control, optimizing processes, and improving efficiency. Brady Ware’s tools like F&I Solution Metrics and Compass Reports can help pinpoint operational improvements.
2. Increase in New Car Incentives
What’s Happening
With the fall season underway, manufacturers are rolling out new car incentives for specific models, like Chevrolet’s incentives for the mid-engine Corvette.
Action Steps
Monitor manufacturer programs closely and use these incentives in marketing campaigns to attract customers who have been waiting for deals.
3. Interest Rates Remain High
What’s Happening
While the Fed just cut interest rates, the current rates have made consumers more cautious, with car payments now averaging over $750 a month.
Action Steps
Be transparent about financing options and help customers find manageable payment plans. Offer creative financing solutions or special leasing deals where possible.
4. Evolving Customer Buying Behavior
What’s Happening
Buyers are extending their purchase cycles, becoming more calculated in their decisions. Customers who were quick to buy in previous years are now more hesitant.
Action Steps
Train sales teams to engage customers proactively. Sales staff will need to adopt a more consultative approach to help buyers feel confident in their decisions.
5. Limited Used Car Inventory
What’s Happening
The used car market remains tough, with fewer trade-ins and pre-owned inventory available.
Action Steps
Focus on trade-in and buyout offers to boost inventory. Target customers looking to upgrade their vehicles and incentivize them to trade in their current models.
6. Service Demand on the Rise
What’s Happening
As vehicle ownership averages 12.5 years, dealerships can expect an uptick in service demand, especially as summer travel winds down.
Action Steps
Promote service specials and encourage regular maintenance. Consider offering promotions that could lead to both service revenue and potential sales.
7. End-of-Year Inventory Push
What’s Happening
With new models arriving, dealerships need to clear 2024 model years before 2025s arrive.
Action Steps
Launch fall promotions, rebates, and incentives to move inventory. Use digital marketing to highlight these deals, targeting customers who are ready to buy.
8. Preparing for Incentive Increases
What’s Happening
Manufacturers are hinting at more incentive money arriving in the coming months.
Action Steps
Build prospecting lists and communicate upcoming incentives to potential buyers. This is an ideal time to get customers into the dealership and take advantage of upcoming deals.
Get Ahead This Fall
Brady Ware Dealership Advisors can help you refine your strategies and position your dealership for success during this critical season.
Dealership Experts
Tom Wolf, CPA is a tax advisor specializing in dealership accounting and automotive industry finance. With over 15 years of experience helping dealerships maximize tax savings and navigate complex depreciation rules, Tom combines deep technical expertise with practical insights. He is passionate about empowering dealership owners to make informed financial decisions that drive growth and profitability.
Justin Ward is your main contact for dealership digital marketing, crafting strategies that drive engagement and boost sales. Together, they ensure your dealership thrives, offering comprehensive support from financial consulting to digital marketing.