Surviving and Thriving With Your Car Dealership During and After a Recession

Your customers are out there. Some of them are driving old cars they'd rather not, to jobs that don't pay enough or give enough hours, wishing they were in a more pleasant vehicle with better mileage. Some have old cars that are about to cost more in repairs than they are worth, spurring an emergency purchase. Some are new drivers who are working at fast food restaurants for months on end to afford their purchase--do you know how many burgers you have to flip to buy a car?

You are in a fortunate position: you have a product that nearly everyone on the country wants. Your product is expensive & important, and people will work and save to get it. This puts you head and shoulders above many industries that are also suffering.

Look at the economy as an opportunity rather than a scourge. Every other dealership is dealing with similar issues, so smart strategies & a positive outlook on your business will help to take you where you need to go.　

The right product as the right price sells in any economy

Make sure you're providing what customers are looking for right now--low cost, fuel efficient cars to replace their old clunkers. Long after the government's programs run out of money, people will still want to save money by buying a car. They just need more bang for their buck.　

Offer the newest technology in fuel efficiently & market it passionately. Hybrids & alternative fuels based on your location are good bets right now with rising gas prices.

Give your clients the honest numbers: How much gas & maintenance will this new car save them? How much longer will this new car last over their old one? Can you offer any packages ( oil changes, gas discount, free yearly tune up) that will bridge the gap to reasonable savings for them without destroying your margins? If their new car will offer savings over their old car in auto insurance, be sure to run the numbers for them. Between gas & insurance savings, you may be able to show them how little they are paying for a new car.

Your customers are worried about many things beyond simply money & the economy, as are we all. Having reliable, low cost transportation to get where they need to go can be a great comfort. Give them that comfort.

Diversify your product.

Its tough to get someone to come in and spend thousands of dollars on a new car. Taking on a new multi-hundred dollar bill each month is the last thing anyone who fears for their job or has reduced hours wants to do. When the economy improves they'll be visiting you--but how to do get sales until then?

Simple! Just expand your line. Someone who wouldn't look twice at the $22,000 car on your lot still needs an oil change for his current vehicle. Someone who can't even consider adding a $400.00 monthly payment may be able to swing a windshield treatments or rust removal. If your dealership doesn't currently offer these services or products, you may want to look into what your facilities can accommodate. Perhaps you won't have room or personnel for major changes, but think of what you can accomplish with your resources.

Some possibilities:

Oil & fluid changes/checks

Windshield treatment

Auto accessories

Painting/body work

Rust removal

Winterization

Tires (sales or rotation)

Hybrid conversion

Tune up services

Towing service

Drivers Ed

If you already offer associated products, consider advertising them more prominently & putting your full weight behind that department. Getting customers in today for even small purchases is vital for your survival today as well as tomorrow. Because now is the time to:

Get next year's customers lined up today

We've all heard that economic recovery is right around the bend. Eventually, it may even be true but what happens to your business then? You've been running lean to stay afloat--cutting budgets, salaries, inventory in the hopes that when the tide turns, you'll be alive to catch it. Don't wait, don't hope, act now! Getting clients in for any reason, providing excellent customer service on small things, bringing teenage drivers in for classes, puts your dealership in the forefront of consumer's minds. Where will they go when they are ready to spend? Hopefully, they are still thinking about your dealership every time they look at their new paint job. They remember that beautiful red sports car on the lot when they get their hours back.

Secondly, don't leave yourself too lean to be ready for the influx. If you've hurt relations with your employees too much by cutting benefits or hours, your best may leave you for other dealerships as soon as recovery begins. Treat your employees as well as possible & give them as much security as you can. Loyalty is worth the price you pay for it.

Make sure that you have appropriate inventory at all times, because you never know when its going to turn around. Prepare for the best without stretching yourself too thin.

In the words of Robert F. Kennedy "Like it or not, we live in interesting times. They are times of danger and uncertainty; but they are also the most creative of any time in the history of mankind."

Although he was referring to another difficult era, we too live in interesting times. This is your chance to succeed even though it is difficult. This is your opportunity to rise to the challenge and say "If I can make it in this place, at this time, I can make it anywhere!"

References
Robert F Kennedy, Day of Affirmation speech, June 6, 1966