By Tomaž Kavčič
We entered the final quarter of 2022 a few weeks ago, and many car dealers are already looking ahead to new challenges and opportunities in 2023.
Planning for the next 12-24 months is likely to be more difficult than in the past. Media websites, such as Automotive News and CBT News, have been publishing stories about the new financial investments dealers must make to prepare for what is to come.
We reviewed the forecasts of many experts, which indicate that the period of very high used car prices will probably come to an end in 2023. This, of course, brings along an additional challenge, as it will be necessary to change business at least to some extent.
What can retailers do now to prepare for next year? Experts agree that retailers need to consider their current readiness for these changes. Due to our knowledge of the Slovenian market and its specifics, we have listed the challenges of the Slovenian used vehicle market in a few points. Where do you stand?
Analytics, analytics, analytics…
There is a great deal of emphasis in all expert opinions on the data about their business that every trader should collect. What is your RVC for each vehicle? Which vehicles do you sell the most? What are the requirements of your customers? …
Based on experience in the field, we can say that this is also a considerable weakness of the Slovenian used vehicle market. This is surprising because even the most basic analytics bring additional insight into the future and thus the possibility of adequate preparation for what is to come.
Have a sufficient supply of electric vehicles, but don’t forget the petrol!
All over the world, electric vehicles are on the rise, and despite many problems in the field of electrical infrastructure, it seems that this trend needs to be taken very seriously in the future. Even if the Slovenian market is facing the electric reality slower than elsewhere, it is clear from the results of our research among those who want to buy a vehicle in the near future, that in the last nine months an electric vehicle choice has jumped by as much as 14.6%.
But the data of our research, which we do together with the research house Valicon, also shows that petrol is still the king of all vehicle drives, because it still has a 42% share among future customers, while the share of diesel has decreased significantly.
Social networks – not only Facebook, trend is already on the TikTok
Many dealers on the Slovenian used vehicle market still do not believe in being present on social networks. But there are many reasons to move part of your business there. We invite you to read our latest blog about Generation Z, which will give you quite a few reasons why you should be present on social networks.
Data from abroad shows that, in addition to Facebook and Instagram, many merchants are now using Tik Tok, as they want to address as many different segments of potential customers as possible. In recent weeks, some Slovenian traders have also had courage, but there are many more who have not tried a single social network. We know it’s hard to start something you’re not familiar with, so we’re here to help you transition to social media as part of the Digibrief project. Send us an inquiry.
Our advertising results on social networks are very good and we prove that with the data we share on our Instagram profile, therefore we invite you to follow us there to stay up to date.
How to digitize processes as much as possible?
A new Cox Automotive survey of car buyers in 2020 and 2021 found that buyers who made more than half of their vehicle purchases online were more satisfied with the shopping experience and the time it took than those who did not even have the opportunity to look at the vehicles or book a test drive online.
The trend in the car market is also towards the digitization of the purchase process. If you give the opportunity to digitize the purchase process and give your customers the chance to do it from the comfort of their sofas, that will certainly make them very satisfied.
Consider your costs
The last bullet point is of course repeated every year, but it may be neglected precisely in years when demand and margins are high. Therefore, before a year of challenges, it may be right to look again at your costs and to define which of those are unnecessary for your business.
Do you really need 5 different programs that take up a lot of your time and at the same time cause costs? What about maintenance, software and data storage costs? How much are you paying for fuel when you drive to and from the office because you don’t have digital access to your data?
Anything that is not absolutely necessary and requires an investment of money, time or effort, can be a serious obstacle to your business in an unpredictable environment. Also here we offer you a solution, where you can get rid of many obstacles in your business for a fairly low monthly fee.
Join a global community of automotive professionals and gain insights and tips to drive positive change in your vehicle sales.
Štukljeva cesta 40