Thanks to the coronavirus and manufacturer shutdowns, dealerships are facing low inventory that can be expected to last into 2021.
According to Cox Automotive, inventory levels were above 3.4 million in March when the coronavirus hit, then declined to 2.2 million by mid-September, and now sit at 2.7 million (Nov 2020). Low supply and high demand has actually helped some dealerships gain profits, while others struggle to keep sufficient inventory on the lot.
Video has proven to be a popular sales tool this year due to low foot traffic, but we are seeing more dealerships using video to address low inventory. Using video when a customer’s vehicle-of-choice is not available allows sales professionals to pivot and virtually present comparable vehicles, which gives the customer hassle-free options when their top choice is not available.
Check out this compilation of sales professionals showcasing “other options” with video…
Two-thirds of consumers prefer watching a video to reading about a product, according to Wyzowl’s State of Video Marketing 2020 report, while only 18% choose text-based information, and only 2% choose a sales call.
Ways to address low inventory and keep your customer…
• Show 1-2 comparable vehicles, keep in mind customer wish list & price
• Showcase similarities and features
• Address differences and shortcomings
• Communicate realistic expectations for new inventory
The worst of the new-vehicle inventory crunch appears to be over, according to a Cox Automotive analysis of vAuto Available Inventory data. Auto plants have ramped up and are re-filling the product pipeline, causing new-vehicle supply to vastly improve from the past several months. However, inventories remain well below year-ago levels. – Cox Automotive
