Now that this year’s exciting NADA Show has come and gone, dealers are reflecting on the industry trends they are either involved in now or will be involved in moving ahead. Keynote speakers and industry leaders shone a spotlight on trends they see, or in some cases foresee, on the horizon. The trends discussed at the show—and broader trends the industry has its sights set on—reflect the market, technology and where dealers’ interests are sure to reside.
1. Disruption Today: Drive Profitability with Emerging Tech
Change isn’t on the horizon – it’s already here. Paradigm shifts in the automotive retail industry are emerging everywhere. Consumers have adopted subscriptions and on-demand access to goods and services, and we need to assess how the role of dealerships will change in response. How will business processes change and how will software and technology affect how dealerships deliver? If you are hesitant to implement innovative technology quickly, it’s understandable. However, by keeping up with the latest industry technology and solutions available, you can better meet the changing expectations of consumers and turn these shifts into profit opportunities.
2. Online Shopping Trends for Savvy Shoppers
Dealers everywhere can focus on simple ways to use data to understand their customers better and recognize the online behaviors that indicate they are ready to buy. The savviest marketers know everything about their customers: what books they read, what food they eat, what they are currently shopping for online and what these buying signals mean for your business. This may sound complicated but it’s actually simple, available and attainable. With the right tools, your dealership can use quality data to understand the signals of online behavior, personalize your marketing efforts, and increase sales.
3. The Continued Rise of Used Vehicles – How Flattening New Car Sales Create a Need for Industry Change
Within the past few years, the industry has seen a sharp rise in the value of used cars. As it stands today, the average age of vehicles on the road has increased to 12.1 years, a new high. Cox Automotive research indicates that last year’s flattening new car sales will continue in 2019, with the trending increase in used cars sales continuing to keep the market balanced. With this in mind, it is clear to see used cars continue to prove their worth, and dealers are looking to optimize their processes surrounding used vehicles, including how they take them in and then turn them over for resale.
4. Providing Customer Satisfaction through Streamlined Workflows
The last thing customers want to do after buying a car is wait. Every time a customer asks, “Are we done yet?” or “How much longer is this going to take?” your dealership is losing valuable social credibility. Dealers who are looking to combat this and keep their reputations intact need streamlined workflows that will significantly reduce customer wait times, and in turn provide them with more time for more customers.
5. Margin Compression and the Battle for Maximized Profits
Dealerships face ever-shrinking margins today. There are new ways to sell cars, but to avoid margin compression, dealerships should invest time and money into selling cars more efficiently and driving more people to their stores. Dealerships can maximize profits by leveraging solutions that speak to the online shoppers of today, centralizing and optimizing workflows to speed process, and reducing cumbersome tasks such as data re-entry.
6. Tightening Credit
With interest rates expected to rise, getting loans funded will require a broader network of lenders and more collaboration and communication between dealers and lenders. Serving car buyers effectively in this credit environment means having solid connections with a full range of lenders, including captives, national banks, regional banks, subprime lenders and credit unions.
Solutions Tailored to Industry Needs
Dealertrack offers technology solutions designed to make your business more efficient, provide you with better insight and visibility, streamline your workflows, and provide you with the tools that break through the noise and align with these trends.
We offer something for every dealership to take advantage of and stay on or ahead of the trends, including:
- The innovative Dealertrack uniFI™ Platform – Streamlining and centralizing a dealer’s F&I workflows.
- Digital Retailing – Providing seamless connectivity from website to showroom and across every aspect of the deal.
- Complete End-to-End Titling Solutions – An industry-exclusive solution that speeds trade-in title turn as fast as 4-6 days.
- The Dealertrack Lender Network – Submit credit applications to connected financing sources from the largest network of lenders in the industry.