Whether you’ve been in the car business for a few years or a lifetime, you know that the auto industry is resilient. In recent years, we’ve navigated a global pandemic, chip shortages that caused inventory disruptions, and high interest rates.
Lately, tariffs have dominated headlines, and it’s clear they’ll impact most brands and shoppers in some way. Some pundits are likening the effects of tariffs to a combination of Cash for Clunkers, accelerated purchase timelines, and the Global Chip Shortage, which shrank inventories and drove up vehicle values and pricing. This combination will create interesting fluctuations in supply and demand over the coming weeks and months (and possibly beyond).
With all this uncertainty, many are in a “wait and see” mode. However, it is times like these that those who act can win. Brian Benstock said it best in a recent Car Dealership Guy podcast, “This is the time to step on the pedal.”
The great news is that while tariffs present a new challenge, the core questions and concerns for the customer remain largely the same:
- How much can I afford?
- What vehicles fit my budget?
- Am I going to get a fair deal?
Now is the time for dealers to step up and meet the challenge head-on, address customer uncertainty, and do what we’ve always done – sell cars to people in need!
How do we turn these challenges into opportunities? Let’s break them down:
Inflation, high interest rates, and the tighter credit have many would-be car shoppers scratching their heads, uncertain of what they can afford or even qualify for. The solution? Bring finance forward!
Encourage customers to complete a soft credit pull with pre-qualification. This gives them a clearer idea of their buying power, including potential monthly payments and total vehicle price.
AutoFi integrates affordability tools directly into our Digital Retail and Showroom solutions. When a customer submits a full credit application, they receive up to three lender offers to choose from.
Although the number of unique models has declined slightly over the past decade, the number of trims, powertrain choices, and tech options per model have dramatically increased. At the same time, the average price of a new vehicle has increased by $15,000. Models that the customer may have thought they could afford 10 years ago may not be an option for them any longer!
Even if a shopper knows their budget and the amount they are approved for, they likely don’t know the full range of new, used, and certified options available to them. This is a huge opportunity for dealers to help customers find the right vehicle that meets their budget criteria while also optimizing inventory turnover.
AutoFi’s new AutoFind feature, recently released as part of our Showroom offering, does exactly that. This powerful tool helps sales managers find the right vehicle options that are likely to get funded, meet the shopper’s budget needs, and optimize a deal.
Trust remains a top concern for car shoppers. The current market conditions are creating both heightened excitement (e.g., Ford’s announcement of Employee Pricing for all) and fear (uncertainty about interest rates, recession concerns, etc.).
In times of uncertainty, the winning dealers are those who ease concerns, offer transparency, and explain every option clearly.
AutoFi helps with this too. Our online and in-store payment tools empower dealers and customers to build the deal together, with or without discounting, using real loan offers from up to three banks. This collaborative approach drives 5-star reviews, improves efficiency, and preserves gross profits.
Today’s shoppers are navigating uncertainty. The dealers who meet them where they are, by helping them understand what they can afford, which vehicles qualify, and how to build a deal, will win.
While others take a “wait and see” approach, winning dealers can turn uncertainty into happy customers and closed deals.
It’s time to Sell Smarter, Not Harder.