Like us, you’ve probably noticed a drop in new car sales in the past year. According to IHS Markit, this trend is expected to continue, with new car sales projected to make up only 5% of all vehicle sales in 2021.
Although a decline in new car sales is expected to continue, industry observers project a surge in used cars this spring. This shift could be the key to your dealership increasing profits, both on the variable ops side and in your fixed ops department.
The Rise in Used Car Sales
First, let’s talk about why people are not buying new cars and opting for used ones instead.
Used Cars Are More Affordable
A person’s financial situation influences the vehicle they purchase. Right now, people are receiving their tax refunds. Many of them have also recently received stimulus checks and are using the extra cash to put down on a vehicle. However, the economic uncertainty we’ve been facing due to the pandemic has made consumers more leery of high-dollar purchases, so opting for a more affordable used vehicle has been the simple solution for many.
Consumers Are Keeping Their Cars Longer
Newer vehicles are built better so they last longer. With regular maintenance, these vehicles can easily continue running efficiently for more than a decade. The increase in advanced safety features has also contributed to the rising vehicle age, as more collisions are being prevented and fewer cars are going out of commission. Because vehicles are in good driving condition for longer, fewer people feel the need to purchase a replacement.
So, what does all of this mean for your dealership? This rise in used cars on the road means there will be a higher demand for parts and service.
A Fresh Opportunity to Maximize Dealership Profits
It’s no secret that used vehicles require more maintenance than new ones. The older the car, the more attention it may need to keep going. As used car sales rise, so does the demand for maintenance services and auto parts.
Most older vehicles are no longer under warranty, and the ones that are will soon be coming off. This is a great opportunity to increase profits in the fixed ops department as more people will be paying out of pocket for service and parts.
It is time to seize this opportunity, level up, and maximize your dealership’s profits.
Offer Your Customers a Digital Parts Solution
With this increase in demand for parts and accessories, allowing your customers to buy parts online will ensure you get the sale and leave your customers happy.
Happy customers are repeat customers, so providing a convenient digital shopping experience will draw them back for future purchases, too. What’s more, this brand loyalty can bring customers back to your dealership when purchasing any future vehicles or when they need to get service done on their current ride.
Creating a convenient parts buying experience will allow you to maximize profits all across the dealership.
Invest in the Future of Your Dealership
Selling auto parts online is a billion dollar industry. If your dealership isn’t investing in digital tools to push parts and accessories while used car sales are booming, you’re leaving money on the table.
If you’re ready to raise your dealership’s success, reputation, and profitability, then it’s time to start selling parts and accessories online.
Schedule your free demo to learn how RevolutionParts can help you do just that.