Since the COVID-19 outbreak in 2020, the auto industry has been pushing to stay afloat amidst the global chip shortage, which has caused a drastic decline in new car inventory.
According to recent Q3 auto industry reports for 2021:
- New car sales lost momentum in September due to low inventory and high prices caused by the chip shortage
- Inflation reached its highest in 30 years while income growth slowed
- Consumer vehicle purchases have declined
While this may not be music to your car dealership’s ears, the key is to focus on what you can control and improve upon in your business rather than worry about things that are outside of your control.
Here are some recommendations on how car dealerships can navigate the chip shortage and tight inventory:
- Focus on getting slow-moving inventory off your lot.
- Be efficient with your time and money.
- Focus on different areas of your business that need improvement.
- If you have a service department, focus on tightening up your fixed operations.
Check out the full article on Autotrader for more auto industry tips and insights.
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