A willingness by car dealerships to stage Q1 sales events could be crucial to their profitability during 2022, according to founder and managing director of MotorVise Automotive Fraser Brown.
He said that with supplies of new cars yet to return to pre-pandemic levels, due in large part to the ongoing global shortage of microchips, there remains a delivery lag of several months which varies from make and model.
Brown said that dealerships must remain agile and ensure they host sales events to secure factory orders.
He added: “Getting ahead in the queue for new cars will drive ongoing profitability during what again may be a further period of uncertainty following the spread of Omicron. It could prove a crucial period for 2022.”
However, Brown advises – with the public already showing signs of caution surrounding retail and hospitality – that dealers remind customers of their long-term Covid-secure procedures.
Furthermore, a booking-in system that accompanies a sales event allows a business to safely manage the numbers within a showroom.
“They need to get potential customers through the doors during Q1 and in front of their salespeople, because, given that showroom stocks are low, those orders are most likely for vehicles yet to be built.
“Those dealerships doing well right now in terms of sales will have been holding regular events over the past six months and marketing hard.
“Even though cars ordered in Q1 may not arrive until April or May, these sold-only orders can be placed immediately, which allows the dealer secures its supply. Early orders also generate further business from the resulting trade-ins, which given the equally high demand within the used market is equally important.”