Upcoming Trends in 2023 That Car Dealers Should Know
Nov 30, 2022
With technology constantly evolving, the automotive industry will experience significant changes in just a few years. If you’re a car dealer, you must be aware of these trends to stay ahead of the competition. This article will discuss some of the most critical trends in 2023 for car dealerships. We’ll also provide tips on how dealers can prepare for these changes.
The rise of electric vehicles and fuel cell technology
Electric vehicles and fuel cell technology are becoming more popular every year, and experts believe they will soon become the norm in the automotive industry. Here are some of the reasons why electric vehicles and fuel cell technology are one of the top 2023 automotive trends for dealers:
Electric vehicles are becoming more affordable
One of the main reasons why electric vehicles are becoming more popular is because they are becoming more affordable. In recent years, the cost of batteries has decreased significantly, making electric cars more affordable to produce. In addition, tax breaks and subsidies for electric vehicles are becoming increasingly common, making them a more attractive option than traditional petrol or diesel-powered cars.
Fuel cell technology is becoming more efficient
An emphasis on zero-emission technology is one of the largest trends in 2023 for car dealerships. Fuel cells convert hydrogen into electrical energy, which can power cars or other devices. The latest fuel cells are much more efficient than previous models, which means they can be used in broader applications. As this technology continues to improve, we’ll likely see even more fuel-cell-powered cars in the future.
As a car dealer, it’s essential to be prepared for the growth of these two factors. Here are some tips for marketing and selling electric cars:
Educate yourself about electric vehicles: It’s essential to have a basic understanding of how they work and what benefits they offer. Knowing where the charging stations are located in your city and how far the average electric car can travel on a single charge will make it easier to sell them to customers.
Promote the cost savings of electric cars: Although the upfront cost of an electric vehicle may be higher than a traditional car, customers will save money in the long run on things like fuel and maintenance. Be sure to highlight these cost savings when marketing electric cars to potential customers.
Prepare marketing material at your dealership: Have informative brochures and other marketing materials available so customers can learn more about electric cars. You can also create a dedicated section on your website to promote electric vehicles.
Offer test drives: Many people are still hesitant to switch to an electric car because they’re still determining how they will perform. Offer test drives so potential customers can experience an electric vehicle’s power and performance firsthand.
Changes in the automotive buying process
The automotive buying process has changed dramatically in recent years and is one of the most critical trends in 2023 for car dealerships. Thanks to technological advances, consumers now have more options than ever when buying a car. In addition, they are increasingly demanding more information and transparency from dealers.
As a car dealer, you must be aware of these changes and adapt your sales process accordingly. Here are some tips for adapting to the changing automotive buying process:
Offer a wide variety of payment options: Consumers now have a variety of ways to pay for a car, including cash, check, credit card, financing, and even crypto. Make sure you offer various payment options so that consumers can find one that best suits their needs.
Create immersive online experiences: Many consumers now start their car-buying journey online. As a result, it’s crucial to have a strong online presence. Create an immersive online experience that includes things like virtual test drives, 360-degree views of the cars, and expert reviews.
Be transparent about pricing: One of consumers’ biggest complaints about dealers is the need for more transparency around pricing. Make sure you are upfront about each car’s price and associated fees. Dealerships can build customer trust by offering transparent offers from Kelley Blue Book Instant Cash Offer.
Be responsive to online inquiries: A growing number of consumers prefer to buy cars online and expect dealers to respond quickly and efficiently. Make sure you have a system or chatbots for handling online inquiries and responding promptly to all questions.
The growth of used car sales
With so much economic uncertainty in recent years, many consumers have been opting to buy used cars instead of new ones. With lower budgets, they’re also looking for ways to save money on their car purchase.
As a car dealer, it’s vital to be prepared for the potential growth of the used car market. Here are some ways to adjust your business:
Increase your inventory of used cars: To meet the demand, you’ll need to increase your inventory of used vehicles.
Offer competitive pricing: With more consumers looking to save money, it’s vital to offer competitive pricing on your used cars. Leveraging platforms like Kelley Blue Book can allow dealerships to offer competitive and fair trade-in values based on thousands of current vehicle sales across the country.
Offer financing options: Many consumers buying a used car may need more cash on hand to pay for the purchase outright. As a result, it’s important to offer financing options so they can still buy the car they want. Be sure to partner with a reputable lender to offer competitive rates and terms.
Online marketing strategies will continue to expand
As the online sales channel grows, car dealerships are looking for new and innovative ways to reach potential buyers. One of the most effective ways to do this is through online marketing.
Online marketing is a broad term that refers to any marketing activity that takes place online. This can include social media marketing, email marketing, search engine optimization (SEO), and paid advertising.
As a car dealer, it’s crucial to have a strong online marketing strategy so you can stay on top of the 2023 automotive trends for dealers. Here are some tips for success:
Have an omnichannel approach: An omnichannel approach is a holistic approach to marketing that takes into account all the different channels where potential buyers might be active, including social media, search engines, and email.
Use data to your advantage: A lot of data is available on consumers’ online behavior. Actionable data metrics like website traffic, conversion rates, and click-through rates can help you fine-tune your campaigns and make them more effective.
Invest in SEO: Search engine optimization is a key part of any online marketing strategy. Create blogs, ebooks, articles, and case studies optimized for the keywords your target customers are searching for. This will help you rank higher in search engine results pages and drive more traffic to your website.
Optimize your website: Your website is one of your most powerful marketing tools. Make sure it’s optimized for search engines so potential buyers can easily find you when searching for a car. In addition, ensure your website is mobile-friendly so potential buyers can easily view it on their mobile devices.
Use email marketing: Email marketing is a great way to stay in touch with potential buyers and keep them updated on your latest inventory. Be sure to segment your email list with a CRM so that you can send targeted messages to potential buyers based on their interests.
How Kelley Blue Book can help
Kelley Blue Book has been a trusted resource for car shoppers and sellers for over 90 years. We offer a variety of tools and resources to help businesses adapt to the 2023 automotive trends for dealers. Let us help you improve your acquisition strategy to start the new year off right.
ATLANTA, Aug. 9, 2023 /PRNewswire/ — The average price Americans paid for a new vehicle in July 2023 was 0.4% higher than one year ago, the smallest year-over-year price increase in the last decade. […]