New Sales Models Changing the Auto Industry

As Millenials and Gen Z become the newest, largest consumer group, dealerships are beginning to rethink the way they do sales. These younger generations aren’t loyal to brands. They choose cars based on quality, reviews, technology and customer service. Because they do their research, it’s important to put your best price out there. Be transparent about the price and the vehicle to build trust.

You also have to consider where and how you’re selling. A traditional dealership could be a turn-off to some buyers. Most aren’t showing up at your lot to shop; they’re looking online. Online vehicle shopping used to be looking at Autotrader, Cars.com or your local dealerships’ websites to see what was available. Companies like Carvana changed the way people shop for cars completely by allowing them to buy 100 percent online. Buyers can pick their new car up or have it delivered to them.

One local dealer in New Jersey picked up on this sales model and completely reformatted the dealership. While Holman Automotive still has its traditional dealership, it also launched Holman GO, a way that buyers can purchase a vehicle completely online. They’re also working with flexdrive, so people can drive their cars via subscription. Holman GO takes consumers through the entire vertical journey of buying and owning a vehicle by including buying, selling, financing, insuring and servicing vehicles all through its website.

Dealers who aren’t looking to get this drastic should consider other ways of selling vehicles outside of the traditional dealership. A recent story in the New York Times discussed how malls are beginning to be used as office space, which goes to show you how innovative a market driven economy can be. While many dealers “frown” on having a satellite showroom, renting a space would place a demonstration area right at the consumers’ feet. Take it to the next level by keeping it staffed with one or two salespeople to capture leads and interest.

People aren’t buying as many new cars, as we can see in Q1 reports. Getting innovative with these newer sales tactics might separate the dealers who make it into the future and those who don’t.