Since the concept of gasoline-powered vehicles was introduced well over a century ago, innovation and technology have been an integral part of the automobile industry’s success. The auto industry includes a wide range of companies involved in the innovation, design, production, marketing, and selling of motor vehicles. Technology has played an important role in the evolution of automobiles since the first Model T rolled off the assembly line.
Technology has revolutionized the automotive industry, significantly improving the safety and quality of vehicles. Today, technology continues to change the auto industry rapidly, and those who do not adapt will be left behind. At CarOffer, we know this well and that is why we continue to develop new technology based on how we see the market evolving and what we hear our dealer partners need.
Utilizing revolutionary technology can put your dealership at the forefront of innovation and ensure you’re providing an optimal customer experience. At the end of the day, the more inventory you have available to your customers, the more cars you will sell. Here are a few tips on how to embrace innovative technology to grow your bottom line:
Stay Ahead of the Competition
Car dealerships must constantly adapt and innovate to keep a leg up on their competition. With changes in consumer behavior and advancements in technology happening so frequently, it can be difficult for dealers to keep up. However, dealerships can incorporate a few key tools to stay ahead of the curve:
- Augmented Reality (AR) Displays - Dealerships should incorporate Augmented Reality (AR) displays to give potential customers a realistic view of what a vehicle would look like in real life. AR technology is a great way for your customers to experience a vehicle without a traditional dealership experience. It helps spark interest without the perceived pressure of a test drive.
- Streamlined Online Sales - A recent study found that 55% of consumers have shifted to an online car buying experience. That number is expected to increase even more by the end of 2022. Online car sales are not going away anytime soon — they are evolving in ways that increase consumer trust with dealership transparency and pricing comparisons. Due to inventory shortages and increased vehicle pricing, consumers are willing to wait for the best deal now more than ever.
- Use of Exclusive Technology - Incorporate the use of exclusive technology, such as customer relationship management (CRM) platforms and CarOffer’s Buying Matrix™. CarOffer’s Buying Matrix™ automatically fulfills buying orders based on customizable buying preferences, saving the dealership time and money. This exclusive technology increases the buying footprint and used car inventory with real offers in as little as 15 minutes.
Improve the Customer’s Experience
Technology is an integral part of improving the customer’s experience. Tools like online appointment scheduling, chatbot support, and video tours can be used to provide customer support. Mobile-friendly technology should be front and center during the buying experience.
Take customer care a step further by introducing current drive service customers to impactful technology such as CarOffer’s ConsumerLane platform, through invitations and offers that will drive traffic. You will not only make a happy customer even happier, but you increase the inventory on your lot. It’s a win/win.
Car dealerships can also offer electric charging stations to clients and prospects to encourage an in-person visit. The best car dealers take the time to learn new technologies and integrate them for a client-centric buying experience.
Build a Strong Online Presence
A significant shift in online buying has required dealerships to increase their purchasing options. The past several years have shown the world just how resilient American auto dealerships are. While it hasn’t been an easy feat, dealers have learned to adapt and overcome, despite leaner inventory and increased demand.
Now more than ever, building a strong online presence and inventory is imperative. Online buying is the way of the future, and dealerships that aren’t embracing larger online inventory and delivery options will be left in their competitors' dust.
Use Data to Drive Dealership Success
Most dealerships aren’t using data to their full potential, resulting in lost time, money, and customers. Data analytics gives dealerships the insights they need to close deals. It helps managers segment prospects and improves targeting.
CarOffer’s platform allows dealerships to see market shifts before they happen. Users can see which vehicles are less popular and which are selling fast. Sold vehicles are visible across all markets, showing trends while projecting future automotive buying patterns.
Sell Market Disparity
CarOffer’s technology allows dealerships to sell market disparity on the PremiumXchange™ (PX) channel. PX is the largest, non-affiliated, online, pre-owned vehicle exchange desk in the US, giving dealerships the ability to exchange cars in other markets where particular vehicles may be selling for a premium rate.
Using CarGurus’ Instant Market Value (IMV), PremiumXchange nationally digitizes and automates dealer-to-dealer vehicle exchanges. With over 10,000 dealerships on CarOffer’s platform, it allows dealers to purchase consumer-ready inventory to help yield favorable returns with quick turnaround times in each dealer’s relative market.
Retrospectively, dealerships can sell or exchange front-line vehicles that historically haven’t performed well due to unfavorable local markets, specific to your zip code. Exchanging for market disparity enables dealers on both sides of the transaction to benefit, as both dealers receive a vehicle more likely to perform well in their specific region. For example, a 4x4 truck in Colorado may perform better than in Florida, offering a higher market value for that vehicle in a more appropriate location. PremiumXchange technology will help reduce aged inventory issues and mitigate significant wholesale losses.
Dealership owners shouldn’t be intimidated by technological advancements. Now is the time to embrace innovative technology and reap its benefits. The best car dealers take the time to learn new technologies and integrate them into their dealership’s inventory buying process.
Why waste time going to traditional auto auctions that will only give you access to inventory in your own market, use CarOffer’s innovative technology to expand your inventory buying power across the country. Request a demo today!