Dealers Should Prepare for Strong Automotive Sales in Q4 2020
Brace yourself for an end-of-year surge of new vehicle sales as the automotive market rebounds in Q4 2020. According to IHS Markit, December has been a top 3 month for new retail vehicle sales for the past three years, and is forecasted to be the #1-selling month in 2020; twice as many sales are forecasted in December 2020 vs April 2020.1
What This Means for Car Dealers
The increase in sales will be preceded by an increase in online research. Dealer presence online across channels such as Google, YouTube, and Facebook, which all reach a high percentage of auto shoppers, is critical to ensure you have the best chance at capturing these customers and driving those Black Friday and EOY sales. With the opportunity to capitalize on increased holiday and EOY sales, it may be prudent to consider evaluating and increasing budgets — which you may have decreased during the dip in sales in Q2-Q3 2020.
- Start Activating Now
Car shoppers begin to search for “Black Friday Car Deals” three to four weeks before the event as early as late October and are asking what the “best time to buy a car” is at an increasing rate through December.2
- Capture Deal Seeker Demand
Consumers are increasingly incorporating “deal,” “sales,” and “offers” terms within their search queries related to new car sales around these year-end holidays. Monitor your accounts for any trending terms to add and increase bids against these keywords that can drive tangible business outcomes for your store (ex. “Honda CR-V Deals,” “Toyota RAV4 Offers.”)
- Prepare and Watch Inventory Levels
Vehicle inventory continues to be light in the automotive industry.3 Dealers must remain dynamic, continue to monitor inventory levels, and align advertising to what stock is available — this is what Foundation Direct technology does by allowing dealers to advertise exactly what they have on their lots quickly and easily.
Dealers must remain dynamic with their ever-changing offers and inventory while also staying in front of evolving consumer trends. Foundation Direct’s technology keeps dealers ahead and gives them a competitive advantage by quickly reacting to changes across price, offers, inventory, and auto shopper behaviors with accounts set up by a group of former Googlers. Curious and want to know more? Contact us for a pressure-free demonstration.
2Google Trends Data, “Black Friday Car Deals” and “Best Time to Buy a Car’ search trends
3COX Automotive ‘For Car Dealers It’s No Longer a Race To the Bottom, It’s a Race for Inventory’ October 1, 2020