It was expected after the second quarter of 2021 that the chip shortage would get better, but according to a report by Chris Isidore for CNN Business, the chip shortage, along with other supply chain issues, are having a worse impact than experts originally predicted.
As Isidore explains, some of the most recent supply chain challenges include shortages in chips as well as resin, steel, and labor; temporary shutdowns; and slower production rates. Not only that, increased consumer demand is further putting a strain on the car industry.
As a result of the chip shortage, the New York Times reports, the car market is “going insane.” Explains the Times, “The frenzy for new and used vehicles is being fed by two related forces: Automakers are struggling to increase production because of a shortage of computer chips caused in large part by the pandemic. And a strong economic recovery, low interest rates, high savings and government stimulus payments have boosted demand.”
Here are some ways to make sure your dealership is making the most of this increase in demand by selling more used cars:
Make customers feel comfortable
While we may be in the waning days of the pandemic, COVID-19 and its variants are still a concern for most shoppers, making safety concerns paramount. While consumers are increasingly flocking to their iPhone and digital devices to shop for cars these days, dealerships should still emphasize safety and sanitization in their facilities. For consumers who are shopping at home, make sure to assuage their anxieties by sanitizing cars before every drop-off and instruct drivers to wear a mask and maintain social distancing standards.
Enhance the digital retail experience
Speaking of home shopping, the automotive industry — along with many other industries globally — is seeing an unprecedented boom in eCommerce sales with shoppers preferring to do as much of their shopping as possible on their digital devices. This means there’s never been a better time to invest in an end-to-end online retail experience to keep up with competitors.
Boost internet sales team
While dealers have been investing more staff in their internet sales teams over the years, it’s time to take it to the next level. Your internet sales team should be ready to send out quotes and answer questions as quickly as possible in response to customer emails. The faster the response time, the less inclined shoppers will be to reach out to another dealer. Also consider adding live chat to your website.
Optimize your mobile experience
Mobile shopping has become increasingly popular over the years especially for other sectors of commerce, and now the automotive industry can no longer afford to ignore this trend: Recent Carzato data indicates the use of mobile devices is higher than desktop for many brands, necessitating investment in mobile-friendly design across the industry.
It may be some time before the shortages and supply chain issues get straightened out. In the meantime, by following the tips above, dealers can at least get proactive about increasing their used car sales.