What Experts are saying:
We all know that the mix of low inventory and higher prices on vehicles has affected sales. The world, after all, doesn’t revolve around gross alone. What wasn’t expected was an 11% drop in new car sales from April to May. This has some experts concerned about an upcoming economic downturn. “The market appears increasingly concerned about the economy, inflation, rising interest rates, and a recession,” Joseph Spak, an analyst at RBC Capital Markets, said in a research note to clients published Thursday.
The last time we went through a recession, we saw the smaller dealers get bought up by the larger names. The large lots had the resources to continue advertising. A lesson was learned: a recession is not the time to pull back on your marketing or your training. It is important to keep your presence known and keep your people in top form.
Another way to stay ahead of the curve is to invest in your employees. Sales might be down for a bit, so they will now have the time to hone their skills. It has been easy to sell a car when inventory is low. It won’t always be like this and you will need the best of the best on your floor. Don’t mistake market conditions for talent. Give your staff the skills to win the appointment and the sale. Don’t let your dealership fall behind in a recession; force it to thrive!
We know it is coming so stay ahead of the game. Don’t allow your competition to be more visible and don’t allow them to become better. You won’t have control of inventory, but you do have control of being the best. Now is the time to invest in your employees and your future.