7 Tips for Growing Your Car Dealership Business: Road to Success
The automotive sales industry has transformed—gone are the days when a prime location and a Yellow Pages listing guaranteed a thriving car dealership business. Today’s customers are digitally savvy, conducting extensive research online before even stepping foot in a showroom. Moreover, to remain competitive, your dealership must learn to - ADAPT.
Nonetheless, it’s not just about having a large sales team anymore. To meet today’s buyers’ expectations, you need a solid online presence that attracts and engages potential customers and a dedicated team skilled in human connection and personalized service.
In this blog, we’ll learn 7 essential tips for growing your dealership business in today’s competitive automotive industry. We’ll explore strategies to strengthen your online presence, empower your sales team, and ultimately drive sustainable growth for your dealership through a well-crafted car dealership business plan.
Essential Strategies for a Successful Car Dealership Business
A thriving car dealership business doesn’t happen overnight. It results from carefully implemented strategies that foster customer loyalty and drive sustainable growth. Let’s check out what it takes to be successful, from developing a small dealership business plan to creating a robust auto dealership business plan that supports long-term success:
1. Develop Your Marketing Strategy
On average, people keep their cars for about seven years. Your dealership won’t survive if you only sell to the same customers every year. To grow your business, you need new customers daily. You have to market smartly to get new buyers in the door regularly.
Successful marketing depends on your strategy, which is often devised by answering crucial questions, such as:
- Where will you spend your advertising dollars?
- How will you market your dealership to new customers?
- What is your target audience?
- Who buys your cars, and where do you find them?
A robust marketing strategy includes multi-channel marketing. For auto dealer marketing, find what brings you the best success, including television ads, billboards, and online marketing, including social media. Moreover, analyze the budget dollars spent on each campaign and channel. Focus more money where you see the most significant number of people buying cars from your lot.
For a more detailed guide on creating a comprehensive plan, check out How to Make a Car Dealership Business Plan + Template to ensure you’re setting your dealership up for success.
2. Build Your Reputation
Nothing sells better than a stellar reputation for reasonable prices and excellent services. You want your new or used car business to be the go-to place for anyone purchasing a car. You build a reputation that sells more cars when you serve your customers well. Cultivating your reputation requires a strategic effort. Taking your in-person reputation online is a critical part of generating new customers.
Most consumers research most purchases online before making a decision or buying in person. They look for reviews and recommendations before giving you the opportunity to sell them a car in person. Gather reviews and ratings from happy customers to build your online reputation. Whether online or in person, your reputation as a worthwhile dealership precedes you.
3. Be Efficient
Creating processes and efficiencies is one of the best ways to improve your business and increase your bottom line. For many buyers, the car-buying experience is frustrating. They can feel it takes too long to make a good deal and iron out the details.
Speeding up the buying process helps customers feel like they’re working with a well-oiled machine. Plus, when your sales staff and other employees work in an efficient environment, they feel valued and productive. As your dealership business grows, a well-managed, efficient process becomes more critical. Processes help new employees ramp up faster. Productive employees help your dealership sell and service more cars.
4. Know Your Cars
You can’t sell cars if you don’t know what you sell. Ensure your sales and service staff see every detail about your lot's current and used vehicles. Your sales team needs to know every detail about the latest models. A buyer working can quickly become frustrated with a salesperson who doesn’t know the selling points or information on a car. Make sure your team is familiar with the latest incentives or financing details, too. A salesperson can encourage an unsure buyer into a sale with the right incentive offered at the right time.
5. Know Your Buyers
Buyers are a significant part of making your dealership a success. Know who they are and what they buy. Research trends in the area. The growth of your business is not about the car models you want to sell the most. You can have plenty of the latest models you love on your lot, but if the public doesn’t want that model, those cars won’t sell. Cars that sit on the lot too long become an expense. You and your staff must know what models your buyers purchase most often. Offer what’s in demand to become the best source of what buyers in your area want to drive.
6. Provide the Best Customer Service
Can you do more to serve your customers better? In most cases, the answer is yes.
Customer service goes a long way when growing your dealership. Your customers can probably find the car they want at another dealership. However, your outstanding customer service can set you apart from other dealerships and earn you the sale.
Commit to offering the best service to potential buyers, current customers, and through your service department.
Pay special attention to your service department. Serving customers well through repairs and scheduled maintenance keeps them returning each time their car needs service. Building a relationship through your service department can keep your dealership at the forefront of your mind when it’s time for them to buy their next vehicle.
Want to learn more about overcoming objections and turning hesitant customers into buyers? 6 Tips for Overcoming Objections in Car Sales offers valuable insights.
7. Recruit Well
Your dealership will only rise as high as your staff can soar. Recruit the kind of talent that can help you accomplish the tips we’ve mentioned above. Make sure every hire follows your commitment to knowledge and excellent customer service. When your team executes with excellence, your dealership’s reputation will stand out from the rest.
Unlock Business Success with ATN’s Sales Team Training
Building on these foundational car sales business plans is essential, but even the most skilled sales professionals benefit from structured, ongoing training. That’s where the Automotive Training Network comes into play. A well-trained and knowledgeable sales team is the backbone of any successful car dealership business.
A skilled sales team is essential for any thriving automotive dealership. ATN can be your reliable partner in helping your team improve at every stage of the sales process, from building genuine customer relationships to confidently closing sales. A comprehensive car dealership business plan paired with expert training can ensure your dealership thrives.
With 40 years of experience in the industry, ATN offers a wide array of training options tailored to the specific needs of your dealership, including:
Our practical, data-driven methods equip your sales team with the latest industry knowledge and practical strategies customized for your dealership’s objectives.
Discover the significant benefits of ATN’s professional training on your team and overall dealership performance.