27 April, 2022
Posted by: Jorge Platero
Category: Faconauto News
According to a report released by the National Automobile Dealers Association (NADA), dealers have pulled ingenuity in the face of the microchip crisis.
The COVID-19 pandemic and microchip shortage have caused dealership salespeople to be more resourceful and environmentally friendly in the way they do business. These are some of the many conclusions of the NADA Information 2021 report presented by the association in the USA. The report highlights, among other aspects, stock ranges, gross sales of new and used vehicles, employment trends and payroll…
But how has this been reflected? creativity In day to day? Here are some of the most common trends:
Feed the desire to buy
Vehicle appraisal and direct purchase
Reversed Sell Events
Bet on after-sales
Review appraisal prices…
In this way, the importance of constant innovation has once again been demonstrated in order to be in an advantageous position in the market. “The most important problem during the last year has been obtaining stock and helping customers find cars,” they point out from the association. “It will continue to be a top concern this year as everything we have seen so far tells us that we will be dealing with this crisis until 2023.
US market figures
As reported by NADA, at the end of 2021, stock levels in the United States reached 1.12 million cars, a drop of 59% from 2020. Stock turnover was reduced to 26 days for domestic new cars. In 2020 this figure was 47 days and in 2019 it was 67.
It is estimated that the offer could reach 1.5 million or 1.6 million vehicles by the end of the year. But the recovery will be “a slow climb,” which could be hit by more supply chain disruptions.
On the other hand, as dealers have become less and less new, they have intensified their efforts in the used market. To nurture this stock, many dealers have opted for direct purchase to the consumer. NADA indicates that sellers’ confidence in auctions has been reduced. About 1 in 4 of used cars from dealerships were purchased at auction in 2021, up from 27.2 percent in 2019. At the same time, dealers acquired 8% of used vehicles from purchases at auctions. individuals, compared to almost 5% in 2019.
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