Car dealerships across the country face a myriad of challenges. From lot maintenance to inventory management, there are a ton of tasks that owners and managers are responsible for on a daily basis. Investing in proper technology to streamline processes is the most effective and efficient way to tackle car dealership challenges while remaining focused on growth and profitability.
In this article, we’re breaking down how new auto dealerships can turn challenges into opportunities with Elo GPS’s advanced inventory management solutions to seamlessly manage lots and bolster marketing efforts.
As the US continues to recover from the COVID-19 pandemic, opportunity crimes such as car theft are still occurring at a shockingly high rate. According to the Insurance Information Institute, approximately $6.4 billion was lost to motor vehicle theft in 2019 alone. Even luxury showrooms are becoming targets for thieves looking to make a quick buck reselling stolen vehicles. All American dealerships must take notes and strategize methods to protect their business assets.
Elo GPS’s theft prevention tool helps to prevent stolen assets or retrieve them in a timely and safe manner. When a vehicle is stolen off the lot or leaves a designated geofence perimeter, managers will be alerted via mobile application. Our designated 24/7 Vehicle Recovery Hotline works alongside local authorities to recover the stolen vehicle.
Challenge: Service Retention
Unit sales are rarely the sole profit driver for new car dealerships. These organizations generally create extra revenue through other means such as financing and service appointments. However, many aren’t able to maintain communication with the customer once they leave the lot, losing the opportunity to retain valuable ongoing maintenance services.
Elo GPS helps dealers connect with their existing customers to remind them when their vehicles are due for service. Owners can then log into CarRx and schedule appointments directly from the app. With this platform, dealerships can market to their customers more efficiently, keeping them at the top of their minds whenever service needs arise.
Challenge: Inventory Tracking
Inventory tracking is especially an issue for larger dealerships. With hundreds of vehicles on the lot, or across multiple lots, it can oftentimes be difficult to locate specific units after a customer inquiry. This has usually led to salespeople having to roam the property for several minutes in search of the desired vehicle. Lack of proper inventory management decreases efficiency and can ruin the customer experience.
Elo GPS gives dealers the ability to survey lots and find specific vehicles in real-time. Representatives no longer need to keep potential customers waiting as they walk down multiple rows of cars. Instead, Elo GPS points them to the unit’s exact location, streamlining the test drive process significantly. The platform also grants visibility across multiple lots, allowing dealers to track and manage inventory over various locations.
Challenge: Lot Maintenance
Dealerships are responsible for maintaining each vehicle on their lot before it is sold to the public. To keep it in pristine condition, it’s important for dealers to know when cars are showing signs of wear and tear. Individually starting every vehicle to check battery levels, dashboard lights, and fuel levels is highly inefficient, especially for larger car lots.
Luckily, the days of inspecting vehicles one by one are over. Elo GPS offers you a comprehensive overview of which cars require maintenance and what service is needed. Service technicians can then be employed to handle the task, keeping all vehicles in pristine, working condition.
Challenge: Surprise Audits
A single, new car on an auto dealership lot costs several thousand dollars. Many of these locations have hundreds of these vehicles while they prepare to be sold. Surprise audits are performed to maintain compliance and ensure all inventory is properly registered and accounted for. Due to the intensive nature of these audits, dealers must regularly set aside a day or more to audit their lot.
The same process that takes up to a day when done manually can be performed in minutes with the Elo GPS inventory tracking software. Easily check for wear and tear, vehicle identification numbers, and more directly from the platform. Elo GPS also utilizes real-time GPS technology to allow auditors to locate vehicles instantly.
Challenge: Rising Cost of Vehicles
The cost of manufacturing vehicles is at an unprecedented high, as shortages of car parts and electronic chips cause ripple effects across the industry. This had led to significantly lower supply from car manufacturers, increasing the demand for dealerships nationwide looking to order specific models for their customers. On average, auto dealers have been willing to pay a 12% premium over the past year simply to keep vehicles in stock.
Automotive dealerships must add extra profit centers to mitigate the rising cost of production that has been passed down from the manufacturer. Elo GPS not only monitors vehicles currently on the lot, but those that have been sold as well. The platform includes a dealer dashboard that gives dealers insight into the specific needs of their customers’ vehicles. Personalized marketing emails can then be sent informing customers of routine maintenance or due repair, inviting them on-site to the dealership to have it taken care of.
Turn Car Dealership Challenges into Opportunities with Elo GPS
Running a profitable automotive dealership is not without its challenges. As the nation’s leading inventory tracking software, Elo GPS is equipped to handle a multitude of car dealership challenges that dealers must overcome while operating their lot daily. The GPS-enabled platform allows you to monitor the location of your inventory in real-time and gives you insight into its recent usage. Additionally, dealers can market directly to customers, reminding them of necessary routine maintenance, and allowing them to book appointments from the mobile application. Get in touch with one of our representatives to learn more about how Elo GPS can transform your dealership operation.