Covid Crashes Auto Sales
The Bad News.
2020 is shaping up to be nothing short of a complete and total meltdown for the U.S. auto industry. Covid-19 lock downs across the nation have dramatically sank Q2 sales, which could continue to carry a negative impact for annual sales through Q4.
The President's extension of his social distancing guidelines to the end of May also act as a headwind for the industry. Factory shutdowns that started in March will now head toward their third month of no production, as the U.S. consumer, for the most part, remains stuck at home.
Additionally, the unemployment rate is at all time high. Because of lack of demand, car dealerships are left with very few customers, lay-offs, and lots of downtime. A successful dealership will use this time to revamp internal operations and emerge from this crisis, better than ever.
Right now, the most important thing for a dealership is to be proactive and plan for success upon reopening.
The Good News.
When things start to pick back up and you need to ramp up your sales force again, you will have a large pool of applicants. Many people will be looking for work, but in order to be an attractive employer, your compensation plan must be higher than what unemployment is currently paying.
Because auto sales is highly focused on commission payouts, the need for expert sales training in your dealership is now more important than ever, with the goal to build and retain top talent who can thrive on a commission based payout plan. This will be the edge on your competitors once this crisis has past.
The Solution.
Real-time Dealer Solutions has over 25 years of experience in dealer services and has grown many of the largest dealerships in the country. We specialize in maximizing dealer profits, by training the most effective sales force and supplying the best finance products.
We offer a free consultation, where we will diagnose any problems your dealership might be facing and make recommendations for areas of improvement and training.
Schedule your consultation to get started.
Jack Smith, MBA – CMO
424-355-5419