null Strategies for Car Dealers to Navigate COVID-19
Although the coronavirus pandemic has disrupted the automotive
industry, J.D. Power states that overall car sales should
regain its footing over the remainder of the year, thanks in
substantial part to automaker incentives.
While many dealerships across the nation are reopening as business
closure orders expire, the COVID-19 crisis has prompted many
automakers and car dealers to go back to the drawing board and devise
new business strategies that appeal to consumer demand for more online
and personalized services.
Here are a few strategies car dealers may want to
consider implementing to navigate the COVID-19 crisis:
Create a comprehensive, online car-shopping experience
Due to the coronavirus pandemic, it’s important for dealerships to
consider shifting more of the car-shopping experience online. While
online car shopping was already trending before COVID-19, a recent
Cars.com survey found that an increase from 45 to 48
percent of car buyers want to handle price negotiations online.
Keeping this in mind, it’s important that car dealers provide
consumers with the flexibility to choose how much or how little of the
car-buying process they want to conduct online.
Offer curbside, pick-up or delivery options.
As consumer reluctance to patronize brick-and-mortar businesses in
person continues, car dealers may also want to consider offering car
buyers the option of having their newly purchased vehicle picked up or
delivered, provided dealers can do so under applicable law.
Continue to focus on fostering a safe environment for
your staff and customers.
Just because more of the car-buying process is trending towards the
digital, online experience doesn’t mean showrooms are obsolete. In a
recent CNBC interview, Sonic Automotive CEO David Smith noted that
while car buyers may do most of their shopping online, they still want
to come into the dealership, test-drive and make sure they like the
vehicle. Keeping this in mind, car dealers should continue to focus on
presenting a safe, sanitized environment for customers and staff,
including continuing to follow CDC guidelines and practicing social distancing.
In the midst of the COVID-19 crisis, Credit Acceptance is working
hard to ensure car dealers enrolled in our auto finance programs can
sell more cars and make more money. Last year, we paid enrolled
dealers nearly $4 billion in total funding and $180 million in
If your dealership is looking to increase its bottom line and market
share, fill out the form on our Become a Dealer page to
learn more about the benefits of joining our program.