A lot of people are talking about how COVID-19 is affecting dealerships all over the country right now. But we’re not just thinking about the here and now, we’re here to help you think about the future too. That’s why we’ve put together a list of what experts are saying the lasting impact of the pandemic on the auto industry will be, so you can start preparing to overcome them.
Automobile Production Will Experience Delays
If keeping your lot stocked means getting cars directly from OEMs, you might start to experience supply delays. More than 80% of the world’s supply chain comes directly from China. Fortunately, quarantines in China are beginning to lift and factories are beginning to re-open.
However, after being closed for so long most distributors will likely struggle to keep up with the high demand. This struggle for demand will trickle down and affect dealerships all over the world. Stay in front of the situation by making sure you know How To Sell More Cars When You’re Short On Inventory.
Stimulus Checks Are Going Out
Some Americans have already started to see their stimulus checks hit their bank accounts. And while some people are using these checks to pay for necessitates, there is still a large number of Americans who haven’t experienced much, if any, financial setback from COVID-19 closures.
This means these people now have additional money at their disposal, money they could use for a down payment on a car. For these people, the stimulus checks are similar in nature to tax time refunds. And that means dealers who market correctly during this time might actually see an influx of sales similar to tax time sales.
Industry-Wide Million Dollar Drop In Sales
Before all this started, 2020 was on track to be another record-breaking year in car sales. Right now, the market researchers at IHS Market, a London-based global information provider, are predicting that US car sales will drop to 15.4 million this year. As opposed to the 16.5 million that it was last year.
This is due, in part, to mandatory closures or stay-at-home orders issued by local governments, but just because you can’t sell cars the way you always have, doesn’t mean you don’t have options. Online and remote sales are having a big moment and as dealerships have been added to the list of essential businesses under national guidelines, now is the time to gear up for when you can reopen your doors. That’s why we’ve put together a free eBook to help you with this transition.
Potential Used Car Shortage In The Long Run
Finding quality used cars has been difficult for dealerships all over the country for the past year. And with how things are going right now, it looks like this trend is only going to continue into 2020.
This means dealerships will have to work even harder to keep up with the now growing demand for used cars as people shift their focus from more expensive new cars to affordable options in the wake of a rapidly changing economy. Fortunately, this dynamic shift in demand will mean a lot of potential for used car sales.
Be Prepared For Anything
Nobody knows exactly where the economy is heading. But we do know one thing, we want to see your dealership weather this storm. Not only do we want you to survive the current situation, but we also want to see you thrive after it breaks. That’s why it’s important that you put the work into preparing for the snapback now.
Luckily, we’ve already outlined how you can prepare for your come back and crush it once this crisis breaks. Check out all the strategies we’ve put together in our free webinar here.