If you had the opportunity to attend the 2019 NY AutoForum on April 16, you know there was a lot of discussion about the climate of the auto industry in the first quarter of 2019, and the predictions for the remainder of the year and 2020. If you weren’t able to make it to the forum, D2D was there and has the scoop for you!
While some financial analysts report that Q1 of 2019 actually saw a small increase in auto sales, the economic experts and Thomas King, Senior Vice President of Data and Analytics at J.D. Power, are cautiously predicting a potential decline in auto sales starting in 2020 and possibly the end of 2019. There is a lot of good news tucked in here, though.
Where the Sales are Actually Up
Low-end vehicle sales are slightly down while high-end vehicle sales are up. This provides an opportunity for dealerships to sell vehicles with a higher price point. Do you think I’m crazy yet? Well, the jury is still out, but the data doesn’t lie. Premium car and premium SUV with a price tag higher than $40,000 are selling! Maybe it’s because of all the added value these premium vehicles have. Features are a hot topic these days and blind spot awareness, lane departure detection, collision avoidance, smartphone capabilities, and heated steering wheels are where it’s at. Keep the driver safe and comfortable, and you’ve got a deal (most likely).
Of course, as we all know, it comes down to payment so often. Which is where used cars come in. Used car sales are up 5.1% in 2019 according to J.D. Power, and that doesn’t look like it’s going to change any time soon. At Digital to Dealer Direct, we handle many used car advertising campaigns specifically. We also know that the dealership must be set up for success when it comes to pre-owned. Do you have a dedicated pre-owned sales manager? Are you constantly seeking new inventory? Is your automotive advertising partner helping you determine what cars are selling in your market? Used car sales look to be rising and will continue to rise for the remainder of 2019.
Too Many Cars, Too Little Time
Next on the horizon is some bad news mixed in with some good news. If you’re anything like me, this is the kind of news you like. It’s the “what can I do about it?” news. I’m sure you’re well aware that most dealers have a lot of inventory on the lot. As King said yesterday, a lot of inventory plus low sales equals a lot of pressure on dealers. There is a lot coming over the horizon. With 4.1 million units on the ground right now, experts predict that holidays like Memorial Day, and “Summer Sell Down” events will help to clear some of the surplus of inventory dealers are currently facing. Don’t typically do holiday sales events? Here at Digital to Dealer Direct, we help dealers all over the area develop timely, classy campaigns. After all, the whacky arm inflatable tube man only gets you so far!
That’s What it’s all About!
So, some say it’s up and some say it’s down. It all depends on what you’re looking at and how you’re looking at it. There are some things we can all agree on, though. Shoppers want those features the manufacturers have worked hard to develop. Never underestimate the value of these features when selling. Pre-owned is on the rise. Get your dealership ready and make sure you have a used car marketing campaign. Lastly, special events will be important! Summer is coming, and that means plenty of opportunity with Memorial Day, summer sales and Independence Day. Make sure you have an automotive advertising partner who can help you do it the right way.
For more information on what we heard at the NY AutoForum, or if you’d like to “borrow my notes”, please feel free to reach out to me at email@example.com. You can also reach out for more information on how Digital to Dealer Direct can help guide you through the rest of 2019.
Christine has spent the last 13 years strategizing, executing, and optimizing digital campaigns. She is certified in a variety of digital tactics including SEO, SEM, Social Media, Display Advertising, Email Marketing and Mobile Advertising and has been published several times on PRDaily.com
For more information on how D2D can help, feel free to reach out at firstname.lastname@example.org