What to Expect from Automotive Retailing in 2023
As we enter 2023, the automotive retail industry is poised for significant change. Digital technologies continue to transform the way that car buyers research and purchase vehicles, and automotive dealers will need to adapt to these ongoing shifts in order to stay competitive. Let’s explore some of the key opportunities and challenges that automotive dealers can expect in 2023, and how they can leverage digital retailing technologies to capitalize on these opportunities and overcome potential challenges.
One major opportunity for automotive dealers in 2023 will be the continued growth of online car sales. The pandemic accelerated the shift towards online purchasing, and this trend is expected to continue as consumers become more comfortable with the convenience and safety of buying a car digitally. Automotive dealers who are able to effectively leverage evolving online platforms and digital retailing technologies will be well-positioned to capitalize on this trend.
One way that automotive dealers can leverage digital retailing technologies in 2023 is by offering a comprehensive online car-buying experience. This includes features such as virtual showrooms, 3D vehicle tours, and online financing and trade-in tools. By providing a seamless and convenient online car buying experience, automotive dealers can attract more customers and increase their sales.
Take note of the fact that while many shoppers begin their car-buying journey online, not all of them complete the process digitally. By offering a seamless online-to-in-store experience for your shoppers, you can empower them to easily continue in the store where they left off online and better provide them with the personalized, engaging experience they want.
Another opportunity for automotive dealers in 2023 is the increasing demand for used vehicles. As the economy reacts to the impacts of the pandemic and changing interest rates, many consumers may be looking to save money by purchasing a used car rather than a new one. Automotive dealers who are able to offer a wide selection of high-quality used vehicles, as well as financing and trade-in options, will be well-positioned to capitalize on this trend. In addition, offering a comprehensive used car inspection and certification process can help to build trust and confidence among buyers, leading to increased sales.
One potential challenge that automotive dealers may face in 2023 is the need to adapt to the changing preferences of car buyers. Younger consumers, in particular, are increasingly seeking out more personalized and customized vehicles. Automotive dealers who are able to offer a wide range of customization options, as well as the ability to build and purchase a car entirely online, will be well-positioned to attract these younger buyers.
Automotive retail in 2023 is expected to be marked by the continued growth of online car sales, an increased demand for used vehicles, and the need to adapt to the changing preferences of shoppers. Automotive dealers who are able to effectively leverage digital retailing technologies, such as virtual showrooms, online financing and trade-in tools, and end-to-end digital retailing solutions will be better prepared to succeed in this rapidly evolving industry.