If there’s one thing that has surprised consumers throughout the pandemic, it’s been the sudden and unexpected changes in the automotive industry. Car prices for new vehicles were at an all-time high at the start of the pandemic. As a result, more buyers were pushed into the used automotive market, making those prices rise unexpectedly as well.
Here’s How Dealers are Changing Their Operations to Cater to Your Needs
As a result of these high prices, dealers were quick to get creative about their business model. Let’s take a look at some of the best ways car dealers were able to pivot over the past couple of years.
Dealers Have Opened “Buying Centers”
Buying centers were one of the first pivots that dealerships made as a way to combat the shortage of new vehicles that were impacting the market. For some dealers, these buying centers were pop-up events, while other dealers implemented permanent branches dedicated to buying from the public.
Unlike previous tactics, buying centers were designed to encourage people to sell their used vehicles to dealerships without the pressure of those same consumers buying a new vehicle from the dealer.
In addition to getting more vehicles on the lot, these buying centers work as a way to steer consumers to local dealers as opposed to big box companies like CarMax or Carvana.
Expanding Used Car Lots or Opening Pre-owned Super Centers
Other Automotive groups have also leaned into used car sales by opening up Pre-Owned Super Centers or expanding their current inventory of used vehicles. Take for example Ray Skillman’s Used Car Supercenter at their Ford location near Indianapolis. This highly optimized super center allows drivers the versatility of purchasing a vehicle or selling their old one at a competitive price without the pressure of purchasing a new one.
Diversifying Automotive Inventory
Depending on the needs of the community, some dealerships have been able to expand their inventory and offer new, diverse vehicles depending on their community’s needs.
The pandemic helped open up Americans to different ways of doing Life. For example, more Americans have tapped into RV travel as a way to venture across the country. Some dealers are paying attention and have diversified their offerings to include recreational vehicles as well. By diversifying the type of vehicles they offer, they can reach a wider audience, and address a range of drivers who are looking to hit the road the best way that suits their family.
Financing Options
With inflation at an all-time high, and prices of new and used vehicles causing shoppers to pause before they purchase, some dealers have taken note. Throughout the nation, dealers are getting creative with their financing options. Many dealers are offering competitive in-house financing rates through programs like “Buy Here, Pay Here” and “Lease Here, Pay Here.” For many consumers, these programs have made it possible to get into a great vehicle at an affordable price.
Ask About These Changes the Next Time You Shop Your Local Dealer
If you’re getting ready to purchase a new or used vehicle, be sure to ask your local dealer about all their available offerings and services. You’ll find that their business model has likely changed in a way that was built to better serve you.
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