No matter how you slice it, the automotive retail industry has gone through some ups and downs in the past couple of years. Everything that we have known to be true has been transformed into a new reality. While dealers have been resilient in the face of disruption, these changes have brought forth many new challenges. But, a new year is on the horizon. To be successful, it is important to navigate through these turbulent times with confidence and grit. To help get a better understanding of how the automotive retail industry has evolved over the past 12-24 months, MAX Digital’s Tim Scoutelas took the time to discuss these challenges with Sam Karim and Matt LaRue.
Together, the group talks about the struggle with aging inventory and the balancing act associated with losing money on one car while getting more on another. This creates a unique dynamic as with inventory being scarce, many dealers have grown fearful of selling off inventory without being able to restock. From coast to coast, stores are getting creative in how they acquire and how they sell. Things aren’t straight forward anymore. And as a result, dealers should be scooping up every piece of inventory they can get their hands on.
For 2022, the group suggests putting an emphasis on merchandising and experience. Make sure to maintain the loyalty of your customers through superior service. The market will eventually return to normal, so you cannot risk ostracizing your base. Stick to a cadence that helps you balance inventory, hold the most gross possible, and still provide unparalleled customer service.
Watch the full video interview with Tim, Sam, and Matt: