Car dealerships around the world have record-low inventories at this time. Recent statistics show that the average dealership currently only has about 30% of their average inventory levels on their lots. While most dealerships are accustomed to keeping enough vehicles in stock on their lots to last through about 60 days of sales, the average dealership in the U.S. currently only has enough vehicles in stock to last for 10 days of sales or less.
This inventory shortage has been caused by multiple factors, most of which are associated with the COVID-19 pandemic and the disruptive effect it had on the auto industry as a whole. When the COVID-19 pandemic hit the world, demand for new and used cars decreased and auto sales plummeted as dealerships experienced closures and more people found themselves in more precarious financial situations as a result of job loss and overall disruption to the economy.
Lockdowns and shutdowns due to illness and short-staffing also led to production delays and supply chain issues in the manufacturing industry that still plague the auto industry to this day. For example, a worldwide microchip shortage–caused primarily by supply chain disruptions as well as increased demand for home electronics throughout the pandemic–has severely limited the number of new vehicles that can be produced for distribution on the mainstream auto market. As demand for new and used cars has increased throughout 2021 and the first half of 2022 but manufacturing issues have limited the number of vehicles that are actually available for sale on dealership lots.
Unfortunately, this widespread inventory shortage is not expected to improve anytime soon. In fact, it is expected to take until at least the end of 2022–if not longer–for dealership inventory stock levels to return anywhere close to their normal levels. However, is still important to keep marketing your car dealership and what it has to offer, even if the inventory of new and used vehicles that are currently available on your dealership lot is extremely limited. Keep reading to learn why.
Take Advantage of Pre-Orders
It can be very difficult to market vehicle models that you don’t actually have in stock, so offering customers the option to pre-order their next vehicle is a great way to continue to promote the vehicles that you hope to have in your inventory in the near future–even if they haven’t actually arrived yet.
Market pre-orders as exciting opportunities for prospective car buyers to reserve their spot in line to get their hands on the exact vehicle model of their dreams. After all, the chances are good that–if your dealership has little or no inventory of a certain model–other dealerships are dealing with the same problem. Given that reality, many car shoppers will leap at the chance to put in a pre-order for the vehicle they want–especially if they are unable to find it anywhere else at that time, either.
Advertise What You Do Have to Offer
When your inventory levels are very low, advertise what you do have to offer to prospective car buyers. Even if you don’t have the most popular or flashy brand-new models in stock, you can advertise the used cars or older vehicle models you have in stock with special deals and discounts to incentivize customers to make their next vehicle purchase from you even if you don’t have their dream vehicle model in stock at that time.
Also, if your dealership facility offers maintenance and repair services, you should focus much of your marketing campaign on advertising those services to keep business flowing even when the inventory of vehicles on your dealership lot is running very low.
Improve Customer Retention
While your dealership’s inventory level is low, it is most important to maintain your focus on improving customer retention and trust and increasing brand loyalty. You want to make sure that–when your dealership does have a higher number of vehicles back in stock–prospective car buyers will want to make their next vehicle purchase from your dealership.
Follow up with past customers via email, text message, or phone call to make sure they are satisfied with their purchase and to address any questions or concerns they may have. Encourage your customers to leave reviews–prospective car buyers are much more likely to trust and make their purchase from a business with a high number of positive reviews. Also, consider hosting fun events at your dealership lot. Have music, food trucks, games, etc. and show off some of the best models you do have in stock at these events. Hosting events helps your dealership connect with the community and draws in the attention of potential customers while building brand loyalty for your dealership.