A Time for Change: The Pandemic’s Effect on the Car Market

The pandemic is a totally unprecedented event recently and it has affected a lot of people. From the way they do things to the way they transact, there have been adjustments just to continue to function like normal, even with the lockdowns and the company closures happening.

These closures did affect a lot of businesses, but it’s also given them a cause for adjustments. There are some businesses that re-thought how they would market that new Ram car for sale. There are those that studied the changes in the market and adjusted to them. The car market, in turn, gained a different look because of this. Just like many markets, the pandemic altered the car sales scene as well.

From changes in how they sell their stock to the different methods that were born during this time of lockdowns and closing down, here is how the car sales market has reacted to being affected by the pandemic:

Purchases shouldn’t be forced

There are people who have already purchased cars at one dealership and are loyal to that branch. With the pandemic in full swing, they tend to go with the branches they are already familiar with. It saves them the time of looking for a dealer whom they could work with during the pandemic.

There are many dealers that are wary of selling during the pandemic, so sales normally don’t go through. In this scenario, used-car dealerships can also adjust better than franchisees, but the latter have found ways to cope with the new landscape. They’ve resorted to allowing anything from viewing the product completely online to having it delivered for a test drive.

With the advancements of online transactions involving cars through the years, it has become easier for dealers to move forward with their purchases to customers.

Test drives are allowed—with one person only

Test-driving vehicles have started to take on another look as well. When before, the salesperson who handled your account had to escort you, now there are changes meant to protect both you and the dealership.

It’s not so simple to test drive cars anymore. Customers can now take the cars for a spin, go around on a short drive, then return it when they’re done. It’s something that had to be done to push car sales but not to drive away people who are scared of sharing space with another person.

There are also surveys indicating that car buyers would tolerate test-driving vehicles, but instead, avoid salespersons that are being too pushy on people to buy their dealership’s stocks.

many cars together

The pandemic has struck a chord with car dealers on the necessity

There had been studies into how car dealers are looking at conducting on-site sales because it’s what the customers would go for. The study goes on to say that the more a customer spends time on-site with the vehicle, the more likely they are to buy that vehicle afterward.

Now, with the coronavirus wreaking havoc, it’s just not economical to be on the same site at once. Buyers and dealers can complete the transactions while staying apart—one of them doing the buying from home while the other is closing the deal from the store.

It’s something that is expected to become part of the regular state of things moving forward.

Dealers that did digital selling before are in a better place

To be frank, the online dealership model isn’t new. That’s why some dealers are poised to be in a better position than others when talking about online car sales; they’ve already got the experience. Even then, there’s a slight difference between doing it when things are normal and doing it now.

There are dealerships that can afford to keep part of their shops open. There are others that are partially online, while there are some who prefer to be online all the time. It’s all a matter of studying the market and seeing what works for your customers, then adjusting to being able to give them what they want and have more time to create more sales.

If you’re still staunchly traditional, it’s okay

If you’ve managed to stay open through the pandemic but are still struggling, then be grateful that you’re still open at all. Nobody thought the pandemic would require them to adjust quickly. There are a lot of things to figure out, and moving forward, the knowledge you gain would be best for the future.

The future after the pandemic is looking bright because of all the improvements. It’s one of the many reasons why car dealerships should look toward the horizon and all the future sales, and forget fearing for their future under the pandemic.

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