Are consumers currently in the market for a car?
Do consumers require a car now?
Like, right now?
Certainly, individuals desire automobiles now, but are they able to purchase one? Purchasing a vehicle today can be a substantial investment. possibly even more so than usual. particularly a new automobile. Based on the Kelly Blue Book:
“The average price of a new car sold in America in February 2023 was $48,763…” The encouraging news is that the “decline of 1.4% from January (2023” is positive. After pandemic concerns and shortages drove prices to unprecedented heights, this decline is at least a positive sign that prices are beginning to fall.
According to this Kelly Blue Book article, average prices for used vehicles continue to rise.
In January of 2023, the average price of a used vehicle was $26,510, as stated in the sentence, “The average price of a used vehicle was $26,510…”
Vehicle prices are high due to limited supply.
In addition, lower-priced vehicles are becoming scarcer as people rush to the bottom in order to afford a car, as stated in the previously cited Kelly Blue Book article:
“As with new automobiles, the lower the price, the smaller the supply. There were 35 days of supply for vehicles priced under $10,000. The day’s supply of automobiles priced between $10,000 and $15,000 was 42, between $15,000 and $20,000 it was 46, and between $20,000 and $35,000 it was approximately 50. 53 days of supply were available for used vehicles with list prices exceeding $35,000.
At 39 days, Toyota had the smallest supply of used vehicles. Acura, Honda, Nissan, Mazda, and Lexus all had fewer than 45 days of supply.”
Is now an appropriate time to purchase a car?
Indeed, it depends. There is no “good time” for some customers to purchase a car if their need for one is sudden and urgent. For some individuals, the “best time” to purchase a car is sooner than they anticipate.
However, there may be more leisurely shoppers who are ambivalent about purchasing a new car, so it would be to your advantage to know how to best structure the customer experience to encourage them to purchase a car now, as opposed to later. At the time of writing this article, the U.S. inflation rate was approximately 6%, and the market was booming in nearly every sector. This is a significant improvement from February 2022’s inflation rate of 7.871%, but it’s still quite a bit worse than February 2021’s inflation rate of 1.676%.
Some customers, however, are relatively price inelastic and will purchase regardless of current costs (if they can afford it). In this instance, the business with the best customer experience wins!
This consumer is now prepared to purchase a car.
Three Ways to Motivate Customers to Buy a Car Immediately
Optimize your online retail operations.
Customers value expediency, and in this hectic, post-pandemic era, digital reigns supreme. A fantastic digital retailing tool can take some of the excitement out of visiting a dealership and make certain processes easier. According to Cox Automotive’s 2022 Car Buyer Journey Study:
“Nearly all auto dealers—87%—report that digital retailing solutions have had a positive impact on at least one aspect of their business, reducing time spent, enhancing efficiency, and boosting sales, profits, and customer relationships.”
Consider equipping your digital retailing and online financing processes with live advocates who can reassure and guide customers through what many still consider to be a stressful and perplexing experience. To be fair, even the most prepared customer may feel overwhelmed when purchasing a vehicle; therefore, having someone who can reassure them of their decisions and progress will be of great assistance!
Deliver the appropriate offers at the appropriate time.
Occasionally, a car sale is just a decent offer away. However, this offer must be visible and presented to the customer at the optimal time.
Customized incentives on your website could be the key to capturing website-hopping visitors. With our behavioral offer tool, ActivTarget, we provide consumers with the offers that make the most sense for you based on their behavior on your dealership’s website.
It can be the difference between clicking around and bouncing and realizing what’s possible!
Service a vehicle immediately.
Maintain excellent customer service at your repair facilities! While doing so, inquire with the service department about what they might be able to receive in exchange for their trade. Some customers can afford to make a spur-of-the-moment decision to purchase something distinct or more expensive if they so desire.
Data indicates that consumers who receive service at a particular dealership are likely to purchase from that dealership in the future.
According to SnapCell:
“…NADA data appear to support this further. They discovered that, on average, 76% of car purchasers purchased their next vehicle from a dealership that conducted routine maintenance.”
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