If you’re looking for more proof that online auto sales are here to stay, all you have to do is check the stock market. Share prices for publicly traded used-car groups like Carvana and Vroom, which only sell vehicles online, have skyrocketed this year. And a third player, Shift, was readying an IPO as this blog was being published. In other words, more and more people are investing in the online auto-sales business model, and if your dealership doesn’t want to fall behind, we suggest you do the same.
The numbers tell the story. According to a recent report by The Motley Fool, Carvana’s stock price was up more than 160% this year entering September, helped by a return to TV advertising, while Vroom had seen its shares jump 54% since its IPO on June 9. Now, investors did take some profits at the beginning of September, but the Fool’s experts are clear that these “two companies are very well set up for the current COVID-19 environment, or a potential second wave during the fall season. And the pandemic has accelerated consumers’ willingness to use online car-buying platforms. That acceptance isn’t likely to reverse, even when life as we know it returns to a more normal state.”
Of course, we’re not saying it’s time to invest your money in other companies. Those words of wisdom also mean that making a decision to move more resources into your own online selling, whether it’s for new or used vehicles, can be a great way to get a good return on your investment.
An easy and effective starting point is to up your game with better online vehicle descriptions. Remember, they’re often your dealership’s first interaction with a potential customer, so getting them right is imperative. The old saying that you only have one chance to make a first impression is only too true, especially in this business, where there’s always another dealership waiting to cash in on your mistakes.
