How Your Car Dealership Can Overcome Seasonality

by Ben Price

Even with the recent issues stemming from chip shortages and low stock, the auto industry still continues to be incredibly profitable; in 2021, the market size of the automotive industry in the United States alone was estimated at $82.6 billion, which is certainly nothing to sneeze at. But even with that said, there’s no arguing that the auto industry experiences seasonality, or major fluctuations in sales due to the time of the year.

But just because your car dealership experiences seasonality, there’s no reason to panic; seasonality isn’t all bad, and there are ways to overcome it. Here’s a few ways that you car dealerships can overcome seasonality, and even strategically use it to your own advantage. 

Understand the Highs and Lows of the Auto Industry (and Use it to Your Advantage)

All industries experience lows and highs at some point or another, with the two peak seasons for auto sales typically between March and the end of May, and from September through November. Winter is generally when business sees the biggest dip in sales numbers. Knowing when one’s business will slow down is the first step, as you can use that to your advantage in order to come out on top.

Your business can plan around peak and slow seasons and use it to your advantage by investing in the development of your business, reevaluating your marketing strategy, and educating and training your employees. If you properly use the slow season to your advantage, your business will never truly lose momentum and can continue on its upward trajectory.

Explore New Sources of Revenue

When sales start to slow down, it can be hard to not panic. Your business is your livelihood after all, so it can be quite scary seeing things grind to a halt. Thankfully, the slowness that comes with seasonality isn’t permanent, however it can cause your business to struggle for those few months of slowness. Thankfully, there are ways to earn more cash during slower months by exploring new income sources.

With the rise of online car sales platforms such as Carvana, more dealerships nowadays have begun offering online car sales as a new income source, or as a way to expand their market beyond local sales. Online car sales is just one great example of how dealerships can increase their sales during less busy times of the year, and it can quite honestly do wonders for dealerships.

Utilize the Best Tools

While peak seasons mean higher sales and more money, they also prevent your business from exploring new types of tools that could otherwise really benefit your car dealership. Software such as a DMS (dealership management system), a CRM system (customer relationship management), and– for those who offer online car sales– a TMS (transportation management system) are all necessary for running a successful car dealership.

During the off-season is the perfect time for your car dealership to try out newer and more advanced tools, and implement them into your business successfully. During peak seasons, you’re far too busy to switch over to an entirely new set of online tools, so doing so during a less busy time is pretty much crucial if you don’t want to disrupt your workflow significantly. 

Additionally, once you do successfully make the transition, your dealership will benefit from having much more advanced systems that offer more features, flexibility, and efficiency for your business and employees.

Try Super Dispatch

Speaking of advanced tools, Super Dispatch’s all-in-one platform includes a Shipper TMS system that is leading the industry with tons of great exclusive features; to name a few of them, it includes the ability to book loads with car haulers instantly, track shipments via GPS, receive eBOLs from carriers with zero hassle, and much more. If your dealership offers online car sales, then Super Dispatch’s platform is a no-brainer. Request a demo today!

Published on November 29, 2022


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