4 Recession Survival Tips for Car Dealerships

4 Recession Survival Tips for Car Dealerships
by: Ben Plymale -- Automotive Dealership Consultant

Economy is on its way back from the recession, but consumers aren't buying what car dealers are selling. After the short-lived Cash for Clunkers spree, car dealerships need new strategies now more than ever to get customers onto the lots.

Here are four tips for car dealerships to survive the economic recession:

1. Revamp your marketing. It might seem counterintuitive to spend money during a recession, but you need to keep your name out there so that customers remember that your business is still there. Radio advertisements are really effective. People who are in their cars while wishing for a new car will think it's a sign from above when they hear about your new deals over the radio.

Conventions are a good way to discover new marketing strategies. The National Independent Automobile Dealers Association holds an annual convention and expo that teaches dealers how to market without advertisements. The National Automobile Dealers Association also is a trusted source with a yearly convention that addresses dealers' needs.

2. Be radically honest. In these tough times, consumers actually want to know what they'll be paying. If you can explain that to them accurately, you may have a customer for life. This newfound tack might be scary, but it may save your business some money because your customers will be able to pay the bills.

Making this happen will mean stopping any sketchy practices that you previously have employed. The practice of loaded payments and prep fees should end. If you make a good impression on your customers, they will tell others that you are honest. That will get you more business. A good reputation can get a company through a recession.

3. Focus on maintenance. Experts predict that the auto industry will be the last to flourish after the country bounces back from the global recession. Some auto dealerships with garages are focusing more on parts sales and car maintenance rather than new sales. You have an endless opportunity to reach out to previous customers to ensure that their cars will make it through the recession.

A focus on repairs also can give you an opportunity to sell extended warranties. While these warranties aren't for everyone, they work well for people who will use their vehicles every day and on city roads.

4. Teach your customers how to research buying a new car. Most of them will be on the defense with you, making sure they bring an older man who has a car buying history. But if you teach them what they need to know about buying a car, you will make them both empowered and more willing to buy from you.

Ben Plymale - Automotive Dealership Consultant bplymale@aol.com www.AutoAuditHelp.com
503-672-7905