In this day and age, it is becoming more difficult to make ends meet. As such, people are looking for better and smarter ways to earn extra income.
In the auto industry, most car dealers are looking for better ways to increase their profits. One way they are doing this is by expanding their service department. This is a viable project and is achievable but not without a few challenges.
In this article, we’ll look at five major challenges car dealers are facing in the 21st century.
- Transparency in their dealings
We have all heard what happened with GPB Capital. This was an unfortunate situation that we would not want a repeat of.
On that note, car dealers have to be transparent in their dealings with customers. In this digitalization era, consumers are more knowledgeable of how a particular system they are interested in works. They need a convenience driven experience that many car dealerships fail to offer. This is because orthodox systems that are in place at car dealerships are unequipped to give customers 100% satisfaction.
Some car dealerships will take time to update a customer on the status of their car. What’s more disappointing is that, a customer will have to contact them several times to get a response.
- Decreased sales of new vehicles
The sale of new cars has seen a slight decrease this year as compared to other years. As much as the decline is small, the point of concern is that consumers now prefer used or off-lease cars to new ones.
This has, also, made competition between new and used car dealers rather stiff.
- Lack of a growth strategy
In as much as car dealerships are looking to increase their service revenue, not enough strategies have been put in place. Furthermore, success in any business does not just happen overnight. It requires dedication from all involved personnel and the creation of effective strategies.
For these strategies to be successfully implemented, car dealerships should ensure they are effectively executed and long-term management measures put into place.
Most car dealerships ignore the fact that even in service, a working strategy is the key to success. Once implemented, it gives the business a chance to grow.
- High quality automobiles
The manufacture of high quality automobiles is a good thing to the consumer. However, for car dealerships who are looking to expand their car service business, this is not necessarily the best of news.
High quality cars go for longer without needing service. Also, people are shifting their focus from repairing broken parts of a vehicle to buying another vehicle entirely. This means that the car dealer will be seeing less of warranty work done on vehicles. This is bad news, especially to the car dealer who makes most of his steady income from in-warranty customers.
However, car dealerships can increase their service yield by offering complete automobile car to their customers. They should try and identify their customer’s needs and seek to cater to them.
Additionally, they should adopt various technologies to upgrade their systems and strive to give their clients the best customer service.
