Consumer behavior is currently shifting, bringing about change in the auto industry. As an auto dealership, understanding these behaviors is important when seizing new opportunities. The auto industry may need to pivot its tactics to maximize its success in a changing era.
An important focus in the new year will be promoting and encouraging seamless customer experiences. Improving customer experiences is what consumers want; 72% of consumers say that they would visit auto dealerships more often if the buying process were improved. Additionally, 54% of consumers would buy from dealerships with a preferred experience, even if it didn’t have the lowest price.
Another key tactic is addressing fraud and delinquency. There is increasing stress on consumers due to ballooning debt, high prices, and increasing interest rates. This stress is reflected in more instances of delinquency and fraud. Synthetic identity fraud rose by 98% in 2023, resulting in $7.9 billion in losses.
Fraud and delinquency pose grave threats to the auto industry, but there are methods to combat these obstacles. Getting to know the customer and providing quality consumer experiences can go a long way in streamlining the process. There are resources that the auto industry can use to accomplish this more easily; Equifax is an example of a company that assists dealerships in finding success in a changing industry.
