You may have heard the saying “Out with the old. In with the new.” However, as we close out 2024 and round the bend into a new year, we’re encouraging dealers to try and embrace a new saying… “Out with the old. Out with the new.”
Why the change? Here at Autotrader we know this is the time you’re focused on clearing out 2024 inventory faster and want to get ahead in your 2025 new car sales. So why not do BOTH?
And to help you embrace this new saying, as the auto industry’s mega-marketplace for consumers at Autotrader and Kelley Blue Book, we’ve mapped out some proven tactics we believe every dealer should focus on in Q4 to see success both now, and in the coming year.
2025 New-Car Inventory is Out. Is Your Q4 Marketing Strategy Set Up for Sales Success?
With OEMs rolling out their 2025 inventory, now’s the perfect time to evaluate your current marketing strategy. By making adjustments and planning for what’s most likely ahead, Q4 is ideal for making sure you’re currently and set up to maximize opportunities.
Why is now the perfect time? There are 3 things happening now to help set you up for success tomorrow:
Interest in new car models is high right now: On average, nearly 36 million new car model searches are made across Autotrader and KBB.com during the last three months of the year.2 Are you taking advantage of this? With consumers buying how they want, when they want, where they want, ensure that you’re staying in front of them with the right messaging at the right time. This will ensure you’re not only top of mind, but the one they choose from click to close.
New car customers are up for grabs: Did you know that recent studies show that only 51% of new car customers are loyal to the dealership they last purchased from?3 This gives your dealership a unique opportunity to not only focus on advertising tactics to win new customers and stand out as the one they should choose, but also help ensure you keep the customers you already have. Make sure you’re educating new customers to the advantages of both your brand and doing business with you and remind existing customers why they chose you in the first place. Give them an experience at first sight.
Time is money: The stats are in. And the average daily holding and carrying costs for dealer floor plans on a $40,000 investment are at a rate of 5.36% or $7.63 per day, and a rate of 5.32% or $7.58 per day.4 This adds up quickly! Make sure your business and marketing strategy is focused on making each and every deal, when you have the opportunity to. The ideal time will always be NOW to move inventory.
3 Tactics to Boost New Car Sales This Quarter
The good news is you’re most likely already advertising on the #1 marketplace delivering the highest new car close rate in the industry (22% higher than the nearest competitor!1). So make the most of that partnership and capitalize on each and every opportunity. The following solutions can provide to overcome today’s biggest challenges, and bring along auto-shoppers from click to close to boost your new-car sales in Q4 and in 2025 with the following 3 tactics:
Get more eyes on your new-car inventory with:
Modern dealers need partners who can actually power their business forward. In this fast-moving world and industry, consumer behavior and demand have forced modern ways from automotive dealerships, OEMs and lenders. Today’s consumers want to feel like they’re specific interests, needs and preferences are being met on every step of their path to purchase. You can do this as well as stay in front of the right buyer at the right time with the following:
New Car Premium Listings – Efficiently attract and convert more online buyers to enhance your new car sales performance.
New Car Spotlights – Get extra exposure and convert shoppers into high-quality leads.
New Car Boost – Show used car shoppers they can get into a new car for a similar monthly payment.
Market Extension Essential – Reach more customers in outside markets who are willing to pay delivery costs for that perfect vehicle you have on your lot.
Merchandise your sales event and stay top of mind during the shopper journey with:
Staying top of mind is no longer a “nice” to have… It’s a need to have in today’s omni-channel world. With much of the car shopping process flowing on-line, to instore, to often times back on-line, don’t miss an opportunity to not only stay in front of a ready-to-buy shopper, but show them you are there to help them every step of the way. No matter which order they want to research or purchase, and no matter how they’re doing that. Make sure you’re including the following in your strategy to stay top of mind and keep a shopper’s attention:
Targeted Display – Keep the focus on your dealership’s inventory or sales event with premium ad placements across Autotrader and KBB.com’s desktop and mobile experiences.
Advanced Ads Premium – Retarget Autotrader and KBB.com shoppers and drive them back to your website with engaging ads as they browse the web and their social media.
eLot – Target real-time shoppers during their valuation and search journeys, serving up your dealership’s relevant inventory based on their recent search history.
Clear out 2024 inventory with:
The shopping journey from click to close isn’t what it used to be. You’ll need modern ways and solutions to take you from where you are today to where our industry is headed. It’s more important than ever to ensure you’re standing out as the one who has the vehicle they’re searching for, in a market that has high-demand (willing to pay your price!) and can provide the experience they want. And to do that you need to get in front of the right consumer, with the right vehicle, to sell it at the right price with:
Alpha Ads – Maximize exposure and highlight your brand with prominent advertising placement at the top of Autotrader and KBB.com.
Vehicle Listing Buying Signals – Supercharge your Autotrader and KBB.com leads with in-depth shopper data you can use to identify ready-to-buy customers for a tailored sales approach.
Market Extension – Reach more customers in select DMAs willing to pay delivery costs for that perfect vehicle you have on your lot.
For the Road Forward
Hopefully you can now agree, your saying should be “Out with the old. Out with the new”, especially when it comes to the inventory on or headed to your lot. By following the sage advice above and adopting some or all of the solutions above targeted to helping you move more cars and capture more ROI on each and every vehicle, you’ll not only have a successful marketing strategy, but pave the way forward for a more successful future.
Autotrader provides you with qualified leads for people who want cars. We have the data that connects and activates your data, and we have the shoppers. We know what they want, and our goal is to match them with our dealer partners, driving quality leads that have the highest gross profit on average industry wide. We connect you with customers virtually, to move shoppers to you, so that you can focus on building and letting your brand shine.
Find more opportunities to get in front of shoppers that are ready-to-buy by contacting your Autotrader Consultant to get these winning new car advertising tactics working for your dealership. And… Cheers to closing out 2024 strong and planning for an even more successful New Year!
SOURCING:
1 Source: Cox Automotive first-party data, Oct. – Dec. 2023 full quarter avg.
2 Source: Cox Automotive Analytics 2023 Q4 data.
3 Source: 2023 Car Buyer Journey Study.
4 Source: vAuto holding cost data, Sept. 2024.
