Dig Out of a Car Sales Drought

factors. A hot model, especially a new one. Rising gas and steel prices. The steady popularity of imports. Dealership issues. And many others. They can be compounded by the traditionally slow periods, such as the month of January. When these factors combine to slow car sales, many dealers simply decide to wait out the storm and hope for sunnier days soon.

But the smart dealers take the situation into control to get them through the drought as quickly as possible. Here are two of the most popular ways to revitalize sales:

• Offer incentives. Flat-screen TVs and motorcycles are hot these days, and special promotions such as this will entice buyers into your showroom. This could be especially important when selling domestic vehicles.


• Cut prices. Selling cars at a lower margin is better than selling only a few – or none – at full price. Plus, the activity will help keep up esprit de corps and prevent salesmen from being discouraged.

In addition, dealers should look at their own operations for ways to make them more attractive places to do business. They can do this by putting themselves in the shoes of their customers.

For instance, when a prospect wants a test drive, does the salesman have the keys ready or is there a wait involved, providing an excuse to back out of the drive? (After the drive, is paperwork completed promptly so the sales manager will know which models are popular with customers and which are just sitting on the lot, and which salesmen are performing well?)

Keep an eye on the bottom line. If it looks like the dry spell will last awhile, take steps now to scale back your overhead costs.

Stay on the customers’ radar screen. Continue to advertise your cars and your dealership, reminding them why you’ve earned a good reputation for customer satisfaction before and after the sale. Be sure to include the Internet in your marketing plans.

Keep in touch with your customers and prospects, and let them know you’re there to serve their automotive needs with quality vehicles. Tell them about your current promotions and be sure to invite them to stop in.

Likewise, stay on top of trends in the marketplace that can influence car-buying decisions, then figure out how to capitalize on them – or work around them. Keep your sales staff revved up. Make sure they redouble their efforts when sales are lagging. This is the time they need to give their best. Work with them. Offer ideas. Be a coach. Don’t hesitate to turn to your car manufacturer for help with advertising and other marketing support.