Summer 2024 Dealership Trends To Look Out For

Shift in Personnel: Back to Selling

The days of record-breaking sales and effortless deals are behind us. With inventory levels finally stabilizing, sales teams must shift from merely taking orders to actively selling vehicles again. During the peak of inventory shortages, dealerships found themselves with more buyers than cars, and the sales staff became more like order takers. Now, with inventory levels recovering, it’s time for a strategic shift.

Sales teams need to transition back to a proactive selling approach. This involves intensive training and possibly revamping incentive structures to motivate and reward genuine sales efforts.

Dealers have noticed that the numbers they were achieving in 2020-2023 have dialed back, prompting the need to reassess the sales and F&I processes to ensure every deal is maximized. This is also the time for Sales Leaders, old and new, to showcase their drive and ability every day. They will follow the processes, work to make sure the customer is happy, and only accept the best from their management staff. Identifying and fostering these true sales leaders can drive the dealership forward and cultivate a new culture of excellence and customer satisfaction.

Increase in Used Car Sales

The used car market is expected to see a significant uptick. While credit scores remain stable, rising prices and insurance rates are pushing more buyers towards the used car market.

However, dealerships should be cautious as an increase in defaults and chargebacks is predicted. Monitoring financial trends and preparing for potential financial risks will be essential.

Evaluating Line Items

As dealerships navigate the summer, evaluating key line items becomes vital for maintaining profitability and growth.

Digital Marketing

Investing in digital marketing is no longer optional. Dealerships must allocate resources to online advertising, social media, and SEO to attract tech-savvy buyers who are increasingly making purchase decisions online.

F&I (Finance and Insurance)

Reviewing F&I processes can uncover opportunities for increased revenue. Offering competitive financing options and insurance products tailored to customer needs can enhance the dealership’s value proposition.

Estate and Succession Planning

Looking ahead, dealerships should not overlook estate and succession planning. This summer is an excellent time to start thinking about the future:

Know What Your Dealership is Worth

Understanding the current market value of your dealership is crucial for long-term planning and decision-making.

Who Will Be Running Your Dealership in 10 Years?

Identifying and grooming future leadership can ensure the continued success and stability of your business.

Consider Gifting

The current economic climate presents a good opportunity to explore gifting options as part of your estate planning strategy.

Summer Is The Perfect Time To Get Ahead

Refine your tax strategy for next year, update your record keeping processes, and plan for the future! Brady Ware Dealership Advisors lead dealers to their growth goals.