Much of the challenge in producing greater quantities of cars, SUVs and trucks lies in two areas:
- the supply chain backlog of computer chips and other critical parts, and
- a focus on manufacturing smaller compact cars that may be more fuel-friendly and less expensive than their larger counterparts.
Without the traditional levels of new car inventory readily available, buyers are purchasing from another source: the used car inventory. However, these inventories are also limited because of demand.
As a result, buyers snap up vehicles even before arriving at the dealership.
This switch in buying habits has forced dealerships to rethink how they source and even sell their products.
Focusing More on Used Car Inventory Makes Sense — for Now
Demand for cars has dramatically increased the value of used vehicles, a worldwide trend. In the United States, used cars are outselling new cars by 2:1. Last year, the used car market had a $260 billion value.
It makes sense to focus on selling used vehicles, especially if they’re ten years old or less. However, this strategy is not without drawbacks. =
One of the most significant factors the used car market faces is the lack of financing options. As Mordor Intelligence reports, “A lack of financing or expensive financing options in many countries for used cars is expected to hinder market growth. While finance for new cars is easy to obtain, used cars attract a higher interest rate and are not sanctioned so easily.”
Hiring Sales Talent in a Tight Market
Selling vehicles today requires a special type of sales talent. As vehicle demand continues to accelerate, your sales force will also need to grow. As recruiters can show you, you’ll need salespersons who can:
- Communicate clearly and effectively.
- Bring a passion for selling to the position.
- Act as a liaison between customers and the dealership to make sales.
- Understand how financing affects purchases; for example, new car loan interest rates are lower than used car interest rates, and a longer payment period will result in paying more in interest.
- Be versatile and flexible when meeting customer demand in a volatile market; vehicles can be delivered directly to the customer rather than to the dealership.
Focusing more on used car inventory is an interim strategy until new car inventories rise. This shift in inventory requires hiring versatile salespersons who can sell from either inventory, and your recruiter can help you find them.
So when you’re ready to have the recruitment team at Autopeople in your corner, give us a call at 1-800-659-9501, visit our website at www.autopeople.com or email us to discuss what Autopeople can do for you.