Moving into 2023, there will be many challenges and opportunities for dealers, and it’s imperative that dealerships prepare themselves.
This is especially true for the parts department, as many of these trends directly affect the cost and supply of auto parts, leading dealers to question what they can do to help maintain steady auto parts sales.
Here are five predicted automotive trends that your parts department should expect in 2023.
Used Car Sales Will Rise and Prices Lower
Disruptions in the supply chain have been causing havoc for dealers the past year, leading to a shortage of new vehicles and a price hike for new and used cars. Fortunately for car buyers, the price of vehicles is expected to come down in 2023, and sales are expected to rise. According to J.P. Morgan, the prices of new vehicles are expected to drop by 2.5% to 5%, and used vehicles are expected to drop by 10% to 20%.
This price drop will lead to a rise in used cars on the road, which typically requires more repairs and maintenance than new vehicles, which means more revenue opportunities for the parts department and service lane.
Parts Supply Chain Issues Will Continue
Supply chain issues that began in 2020 due to the pandemic are likely to continue into 2023. In fact, many believe that supply chain interruptions won’t plateau until 2025. This is especially true for auto parts.
As manufacturers continue to push out new vehicles and accompanying technology, older parts will be harder to come by. While this wouldn’t be a problem in a high new-car buying market, in today’s market, where most vehicle owners are choosing to keep older vehicles for longer, it’s a sizable challenge for parts departments. Older auto parts in scarce quantities may see increases in price.
EV Sales Will Continue to Rise
The number of electric vehicles and hybrid models in the market is expected to increase. This increase may significantly impact the profitability of the parts department.
Electric vehicles require less maintenance as they require fewer parts to operate, meaning less business for fixed ops. To combat this, dealers will need to change their strategies to take advantage of this change. Dealers should find ways to sell more ICE parts, service more used cars, and cater to EV owners.
Crowd-Sourced Delivery Will Rise In Popularity
Consumers looking for parts are searching for websites and platforms that can quickly deliver parts to their doors same-day. Since the pandemic, crowd-sourcing apps and similar platforms have become consumers’ most popular way to shop.
Parts departments should be looking to take advantage of these types of services. Partnering with companies like Lyft, DoorDash, and so on can help parts departments maintain a competitive edge in their local market.
RevolutionParts makes partnering with crowd-sourced drivers to make local deliveries easier with Same-Day Delivery. Whether you need to deliver a part to a retail or wholesale customer or pick up a part for your service lane, our Same-Day Delivery will help you get your parts where they need to go, with an average delivery time of just under an hour.
Price-Focused Marketing Will Lose Its Impact
Consumers are becoming increasingly well-informed when making online purchases. They’re comparing multiple elements to find the best products that fit their needs. Auto parts are no exception.
While the crux of automotive marketing (and parts marketing) has been focused on getting parts at a great price, price-focused marketing may be starting to lose its impact on online consumers.
Consumers today are still interested in getting a good deal, but their values are becoming more aligned with a quality buying experience overall. This includes things like the quality of the product, quality of the service, and delivery convenience.
Parts departments (and dealerships as a whole) will need to rethink their marketing strategies to focus less on price and more on value. Convenience, high-quality customer service, and brand trust are becoming just as important to consumers as affordability; and will need to be focused on in dealership marketing.
Get Your Parts Department Ready for 2023
2022 is almost over, and now is the time to set your parts department up for a successful new year. Get your parts department online with RevolutionParts to make the most of next year’s trends and opportunities.
Schedule a demo today and learn how RevolutionParts can help your parts department generate more revenue in 2023.