Cox Automotive surveyed over 1000 US dealerships last month and saw many dealerships express concern over inflation, dealer inventories, and rising costs. In addition, the “Dealer Sentiment Index” showed that dealers have a negative outlook regarding the challenges ahead for the quarter and beyond.
Cox Automotive Chief Economist Jonathan Smoke said, “unique market conditions are causing worry among car dealerships at a time when sales are typically very strong.” In the past, new models would be rolling out, and consumers would look forward to the latest trends, but that’s not the case this year.
“Importantly, a drop in current-market sentiment is not typical in the third quarter,” he continued. “The third quarter is usually mostly stable and, for franchised dealers, is often improving.”
“There is typically excitement building with new models rolling out and energy for the new-vehicle market through the fourth quarter and holiday seasons. That is just not the case this year.”
You may find yourself in a similar situation. Some of your dealerships may have a glut of used cars and few new cars, while others picked up a new shipment from the factory. And at the same time, work at the auction may have been a bust.
The new normal of auto dealership management is feast or famine. So how do you stay on top of your inventory? And how will you be sure you won’t lose a sale because that one car the buyer is looking for isn’t there? Poor lot management strategies end up costing you time and money while also tanking your CSI scores but implementing dealership lot management software can drive your business forward.
Dealership lot management software combined with a car tracking device can help your employees monitor all the vehicles on the lot, including their location and status. This software can also keep tabs on your inventory in real-time, so the car a buyer sees on your website will be there when they arrive. If those weren’t enough to get you thinking, here are some extra benefits of dealership lot management software:
1. Improve Customer Service
Everyone knows that customer service is important, but today it’s critical. Your dealership can live or die on how well the next customer is treated. A recent study from HubSpot states that around 68% of consumers claim they are willing to pay more for products and services from brands that offer best-in-class customer service experiences.
Another study from Salesforce states that 89% of consumers are likely to make more purchases after a positive customer service experience. And for your dealership, part of a positive experience is whether you can find the vehicle they want.
Lot management software can keep your inventory up-to-date, help you know where vehicles are, monitor the vehicle’s health, and track where it’s on loan or the location of a test drive. As a result, you won’t be wasting time making promises you can’t keep. And, your customer will respond with improved loyalty, experience a better test drive, and, eventually, walk away with a purchase experience they can’t get elsewhere.
With current OEM production issues, you can’t necessarily determine the product mix you’re getting or the features available on the vehicles you finally receive. But with dealership lot management software, you can analyze sales trends, determine which vehicles or categories are in demand in your various locations, and adjust to meet that demand
2. Easier Floor Plan and Inventory Audits
Inventory Audits may keep you up at night. And why not? It can be a time-consuming manual process.
And although we’re seeing a drop in consumer buying power, if you take days to inventory, it’s still likely that you’ll have sold much of that inventory by the time you finish. So, it’s an efficiency nightmare.
With lot management software you can streamline your floorplan audits and potentially qualify for floor plan insurance discounts.
3. Reduce Loss Risks From Theft
Dealership lot management software with a car lot tracking device can help dealership employees keep track of all the vehicles on the lot —especially if they’re at risk of theft. Unfortunately, the financial liabilities for theft and vandalism are increasing for dealerships nationwide. Nearly 700,000 vehicles are stolen annually in the US, with 4 out of 10 car thefts occurring at auto dealerships.
Keeping track of vehicles and parts through real-time GPS-aided visibility can protect you. Although you can’t always stay up to date on your fleet’s latest criminally discovered vulnerabilities, you can help mitigate financial losses with good car lot tracking device and management system.
Take Control of the Future with Elo GPS
We all know the dealership business is challenging. But regardless of market conditions, with Elo GPS, you can control those challenges and turn them into solid customer relationships while generating higher revenues for your inventory.
How many management systems are in your dealership today that actually make you money instead of adding to your expenses? With a lot management system like Elo GPS, you not only get the full functionality of a lot management system, but also a system that drives profits by adding value to the vehicle through our connected car features and stolen vehicle recovery system for consumers.
Utilizing Elo GPS gives you the power to manage loaner inventory, prevent loss due to stolen vehicles, reduce cost, increase staff efficiency, and increase customer satisfaction through intelligent lot management.
Contact our team today for more information on how to help make your next quarter the best by creating the ultimate digital to physical car buying experience and the many benefits of an automotive management system, or try it out yourself.