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Tariffs on parts and imported cars don’t mark the industry’s demise.

The pandemic gave us a brutal reminder that the automotive industry has always been at the forefront of large-scale disruptions. When the first lockdowns hit, manufacturers, suppliers, and dealers scrambled to predict the future. Would supply chains ever recover? Would consumer behavior permanently change?

Automotive industry experts were eager to predict the future of car-buying after the pandemic. Would it become fully digital, a new process, or return to normal?

Today’s reality is a chaotic mix, with customers split between online, in-store, and a foot in each realm. Dealerships are struggling to keep pace. Consistency is a common problem, and there’s plenty of margin for error when a customer abruptly transitions from your website halfway through the process. 

The year was 1997. 

Blockbuster looked down from its throne to scorn the new court jester. The jester danced with enthusiasm and grit, smiling warmly at the King of Video Rental. Blockbuster rolled its eyes and signed off on a late fee for Titanic. With few details to spare, the King later died a tragic death. The jester took the throne, and quadrupled the kingdom. The jester was Netflix, and his legend is clear: don’t get too comfortable or the joke will be on you.

Automotive accessories are a multi-billion dollar industry largely unaffected by the constant ebbs and flows in the car business. 

Still, dealerships are often hesitant to present and sell accessories at the point of sale. In some stores, customers have to ask for the accessories to access them. In others, there are haphazard approaches that use accessories as a closing tool or an afterthought, often doing more damage than good. 

Is there a better way? Of course!

And don’t simply take our word for it. We’ve also asked an industry veteran of twenty years for their insight.

Buying a new car isn’t always filled with giant red bows and excitement. Car buying can be out of necessity. For some customers, the prospect of a new car with the latest features can’t dislodge loyalty to a beloved automobile.

Leah, a mortgage lender from Charlotte, reminisces on buying her new car before Christmas. “I don’t hate my new car necessarily. It’s just that my old one took me everywhere and always brought me safely home. There’s a lot of memories in that car and I was used to it. I spent more time in that car than in my house these last few years. Unfortunately, it had 370,000 miles on it, and it was just time to move on.”

Dealership management does a lot of gymnastics to keep things running smoothly. 

And managing personalities while meshing departments is a big part of daily life in a car dealership. 

The “every man for himself” culture in car dealerships can be a pervasive problem. It’s there below more pressing issues like inventory shortages or shrinking profit margins.

When will it all bubble up over the brim?

Winter is the season for new potholes. As we approach months of snow, freezing temperatures, and harsher overall conditions, roads are prone to crack under the pressure. The result is blown tires and bent wheels on your customer’s vehicles. 

Now is the opportune time to be proactive about better serving your customers. Seasonal tire and wheel programs will benefit your customer base while adding profit to fixed ops and striving towards those year-end goals.

One of the first steps in creating an accessories powerhouse in your dealership showroom is selecting the right person to champion the project. 

While we recommend a dedicated accessory manager as a best practice, dealerships of varying brands have succeeded in three different ways. Your store can be successful by finding the right fit for your store size, brand, and unique customer base. Examine your dynamics and see who you can lean on as your expert in all things Vehicle Personalization. 

A well-laid process that works for your store is the key to your success. There’s room for variation in the details. 

Have shrinking profit margins put a damper on your Q4 goals? No need to throw in the towel or resolve to just get by until next year. There’s a manageable change you can implement today to finish 2024 strong!

The pendulum of dealer sales climates has swung sharply in the other direction for the first time post-COVID. 

The current inventory levels, unprecedented in years, have necessitated a shift in strategy. Salespeople, who previously thrived on high-profit orders, now need to accept smaller deals to maintain the dealership's momentum. 

In extreme cases, salespeople may even receive less than $100 for selling a vehicle. That’s one to two hours of work, sometimes more, to make $100 or less.

The reality is harsh, yet we all must work within it, knowing the pendulum is bound to stay in motion.