Trends Shaping Car Buying Behaviors in 2021
As lingering effects from the 2020 economic shutdown continue to disrupt the auto industry (i.e. going digital, inventory shortages, etc.), car dealers are finding new ways to adapt and stay on pace with emerging trends.
While the consumer behaviors have significantly shifted to the online space, Automotive Mastermind says car buying preferences are also changing as a result of consumer finances, government regulations and shifting product mixes from auto manufacturers.
To help car dealerships better understand the factors that are influencing car buying decisions in today’s climate, here are three recent market trends that may help dealers as they map out their car sales strategies:
- Increased Number of Mid-Size Vehicles
A recent report from IHS Markit found that there were more January 2021 registrations of mid-size vehicles than compact vehicles. More specifically, the same report noted that mid-size utility vehicles were 60 percent of total mid-size vehicle registrations, up from 56 percent in January 2020.
Car Dealer Takeaway: Focusing on local car-buying trends by identifying which makes and models have been selling well could be an effective method when improving your car sales strategies. - Growing Demand for Electric Vehicles
According to IHS Markit, consumer demand for electric vehicles rose to 55 percent from 34 percent in 2016, and growth is expected to continue.
Car Dealer Takeaway: Depending on your market, adding more electric vehicles to your new or used car dealership lot could be an effective way to meet consumer demands. - Prioritizing Deals & Incentives
As a result of the economic slowdown, car shoppers are more financially conscious, prioritizing promotions and incentives as part of their car-buying journey, according to a recent article.
Car Dealer Takeaway: New or used car dealerships should highlight special promotions, incentives, or rebates they’re offering to attract more car shoppers.
If your car dealership is looking for ways to reach car shoppers with bad credit or no credit, Credit Acceptance gives you the ability to say ‘YES’ to every car buyer regardless of their credit history. Simply fill out the form on our website to learn the benefits of becoming an enrolled dealer in our auto finance program!
