5 Reasons Your Customers Should Purchase New Vehicles in 2016
New year, new you…new car?
Yes, that’s the approach your dealership’s customer base should adopt in 2016. Instead of simply desiring a vehicle upgrade — and stopping at eying that long-sought sedan within your showroom — it’s the perfect time to make a deal and take the keys.
2015 marked a banner year for the auto industry, as sales of cars and light trucks in the U.S. set a record by reaching 17.5 million new vehicles. But 2016 holds the promise of being even better, making the Great Recession a distant memory for the automotive industry.
A number of key factors are aligning nicely entering 2016. The result? Dealerships should reap benefits ranging from improved customer retention rates to bolstered revenue growth to better dealership profitability. Here are 5reasons your customers should purchase new vehicles in 2016:
1. Low Loan Rates
Auto loan rates are hovering around 3 percent for vehicle purchasers with strong credit, making car-buying more enticing and creating a domestic auto market that’s as healthy as it’s been in more than a decade. Your dealership’s customers should capitalize on this and purchase a new vehicle before interest rates begin to rise.
With continued low auto loan rates and domestic new vehicle purchases potentially approaching 18 million in 2016, the time is right for your dealership to seek F&I growth. Having an in-house staff that can effectively market loans to prospective car-buyers will do wonders for your bottom line.
2. Cheap Gasoline Prices
The surge in domestic oil production has contributed to U.S. consumers enjoying gas prices near $2 per gallon. Happy motorists are spending less at the pump and keeping more money in their pockets.
Consistently low fuel costs provide several sources of motivation for your customers to invest in new vehicles. First, consumers have more disposable income, thus they’re better prepared to purchase a car. Additionally, motorists drive more when gas prices are low, increasing their need for a reliable vehicle. Finally, cheap gasoline spurs demand for popular purchase options like sport-utility vehicles and trucks.
3. Complimentary Maintenance Plans
The popularity of promotional maintenance packages will continue to attract customers to your dealership in 2016. The allure of 12 months of complimentary maintenance not only offers a major selling point to prospective car-buyers, but also drives customers back to your dealership for service and, ultimately, their next vehicle purchase.
By incorporating a dealer-owned maintenance plan from Performance Administration, your dealership can dictate your own coverage and reimbursement rates — even providing your customers service perks the manufacturer doesn’t offer. Performance Administration helps construct a strategy that’s unique to your dealership’s goals and customizes dealer-branded marketing materials designed to draw back your customers.
4. Personalized Experiences
When it comes to your customer base in 2016, it’s personal. Your dealership’s ability to offer a range of individualized services — from personal relationship-building with a customer-centric sales representative to a customized maintenance plan to a personalized welcome kit — will beckon car-buyers to your showroom for their new vehicle purchase. A personal touch with your product and service offerings ensures your dealership stays top-of-mind as customers ponder their 2016 car-buying options.
5. Remarkable Selection
It just keeps getting better. That’s the theme when it comes to the impressive variety of new vehicles available for purchase — a selection that would’ve been unfathomable to previous generations of car-buyers. A quick tour around your showroom and prospective customers are sure to agree.
Whether your customers are seeking fuel-efficient small sedans, sleek mid-sized luxury coupes or over-sized crossover sport-utility vehicles, there are likely ample options available at your dealership. Variety, after all, is the spice of life, even within the automotive industry. And when your customers leave happy within a new vehicle, your dealership’s bottom line wins as well.