Simple and Effective Ways for Auto Dealerships to Increase Profitability

Automobiles are among the most expensive purchases most people make. That being the case, it’s hardly surprising that many car buyers make a point of being as discerning as possible when perusing local dealerships. In order to cater to the needs of an increasingly selective customer base, it behooves dealerships to make the buying experience convenient and hassle-free. Fortunately, with the help of the following measures, increased profitability should be well within the grasp of any dealership.

Ways for autodealerships to increase profitability - image of a MercedezInvest in Inventory Management Software

No modern-day car dealership should be without inventory management software. As any seasoned car seller can attest, the right software can simplify the sales experience on a number of fronts. For starters, you’ll be able to find any vehicle on the lot in the blink of an eye. Conversely, taking a long time to locate a vehicle or confirm its presence on the lot is liable to cause potential buyers to lose interest and take their business elsewhere.

Being able to manage your dealership’s inventory in this manner also ensures that your stock is updated in real-time. This reduces the likelihood of customers coming to the lot in the hope of purchasing vehicles that have already been sold – and if there’s one thing digital-age consumers can’t stand, it’s having their time wasted.

Auto dealer inventory management software can also help facilitate timely restocks. The sooner you realize you’re sold out of a popular model, the sooner you’ll be able to order more. Furthermore, the right software makes keeping track of your inventory considerably less strenuous. Instead of constantly performing physical counts, you can keep an eye on your vehicles with a few simple button clicks. (Of course, this isn’t to say that physical counts should never be taken.)

Provide Online Purchasing Options

These days, virtually anything can be purchased online, and automobiles are no exception. Although in-person dealer interactions still account for the bulk of auto sales, online purchasing has become increasingly commonplace in recent years. With this in mind, don’t allow your dealership to be left behind.

For many consumers, online purchasing options effectively take the hassle out of car buying. For better or worse, people tend to hold a negative view of the traditional car shopping experience. Since they don’t relish haggling with salespeople or feeling pressured into making large purchases, consumers often dread the day they’ll need a new vehicle.

With the COVID-19 pandemic in full effect, online buying options have become more important than ever. Enabling customers to purchase vehicles from the comfort of home not only helps preserve their safety but the safety of your staff as well.

You should also provide a video or text chat option for car buyers who wish to speak with salespeople one-on-one, as modern-day consumers generally appreciate this level of availability. These types of remote purchasing options are particularly crucial for customers who are elderly, infirmed or immunodeficient.

Offer Complimentary After-Sale Services

Since a good vehicle represents a sizable investment, it’s only natural that car buyers would want to protect their purchase. Dealerships looking for effective ways to make a positive impression would be wise to help them in this endeavor. Providing an assortment of convenient after-sale amenities will help illustrate your commitment to good customer service, generate positive word of mouth and help attract repeat business.

After-sales services can be particularly helpful to first-time car buyers. Helping these individuals register their vehicles and find the right insurance provider will help ensure that their investment remains well-protected. Also, providing limited service warranties and return windows for preowned vehicles can build consumer trust and help bolster your dealership’s reputation. No one likes getting stuck with a lemon, and if a car performs well below expectations or exhibits copious problems, the buyer shouldn’t feel trapped.

Dependable vehicles generally don’t come cheap. As such, it’s only natural for car buyers to exude an air of discernment when exploring their options. Additionally, since consumers now have more choices than ever before when it comes to car shopping, many dealerships need to step up their game in the customer service department.

Ways for autodealerships to increase profitability - image of a car showroom and outside itHowever, this doesn’t have to entail completely upending your business practices or spending a small fortune. Minor tweaks and improvements to a dealership’s daily operations can go a long way towards keeping customers happy and increasing long-term profitability.


Interesting related article: “What does Profitable mean?