If you feel like the last few years have been a rollercoaster for used car dealerships, you’re not alone. In 2020, pre-owned car prices skyrocketed due to consumer demand and decreased supply.
“When we look back at the years immediately following the global pandemic of 2020, we’ll be awed by the dramatic swings and unprecedented circumstances the economy and auto market endured,” Cox Automotive Chief Economist Jonathan Smoke said. “We saw historic appreciation in vehicle values, unimagined drops in supply, and interest rates moving from all-time lows to 23-year highs.”
With supply back on track and an increase in interest rates, car prices have gone back to pre-pandemic levels. Check out what that will mean for your business with five used car market trends for 2024.
The used car market will see slower growth in 2024. High interest rates, increased supply and inflation mean fewer sales. According to Cox Automotive, the pre-owned car market is expected to grow by less than 1% this year.
Higher interest rates decrease consumer buying power, which leads to fewer purchases and longer loan terms. Dealers might be tempted to provide loans to buyers who are at greater risk to default. We’re also seeing a larger increase in buyer fraud. That means more risk for car dealers.
Used car tracking devices allow used car dealers to protect their assets. A vehicle GPS locator system can help find their vehicles in case of loan defaults or if you need to repossess your inventory. Also, some GPS tracking solutions help consumers remain on payment track with targeted payment reminders. They can also remind customers to reach out to their lenders to revise loan terms to help payments stay on track.
With cars sitting on the lot longer, franchise dealers will see higher costs, which makes return on investment (ROI) even more important.
With inventory that remains on the lot longer, protecting your vehicles will become even more important. Having a vehicle GPS locator system can help ensure their safety. Adding an auto GPS tracker to the vehicles allows you to see where your inventory is in real time. That way, you know it’s still sitting safely on the lot and can see where it is when it’s off lot, whether it’s on loan or out for a test drive.
Dealers also need to be on the alert for auto theft. Starter interrupt can help prevent vehicles from being stolen. Or GPS tracking solutions with geofencing can help locate a stolen vehicle right away. A separate battery powered device hidden in the vehicle can add an extra layer of protection and decrease the risk of the GPS system being hacked.
Making the most of technology can help used car dealers market to consumers, be more productive and protect their assets. One major used car market trend is to use technology to improve business. Here are a few ways:
As sales become less of a sure thing, prioritizing customer experience will be even more important. User-friendly website and mobile apps will be an essential part of allowing consumers to find and review your cars. Also, online reviews and testimonials now play a big part in establishing client trust.
Car dealerships should focus on making the car buying process as easy and painless as possible. Around 54% of customers think it takes too long to buy a car. That process can be streamlined with digital tools for faster paperwork and GPS tracking solutions to locate vehicles quickly. Plus, certain used car tracking devices remind customers about upcoming payments, adding that extra layer of customer service.
Providing a great customer experience means more referrals, repeat business and a reputation that can be a key differentiator in a competitive market.
According to a report from the National Insurance Crime Bureau (NICB) nearly 500,000 vehicles were reported stolen nationwide in the first half of 2023, an increase of more than 2% compared to the first half of 2022. About 40% of car thefts are from auto dealerships.
Protect your dealership from theft with GPS tracking solutions. Features like built-in tow-and-tamper detection can keep vehicles from being stolen. And an auto GPS tracker can help you locate stolen vehicles, using features like geofencing to track their location in real time so you can recover them quickly. With dual-location technology, the combination of GPS and cellular location, you can track assets even in hard-to-reach GPS locations like parking garages. Auto theft is a rising trend, but technology like used car tracking devices can keep your inventory safe.
When it comes to protecting your used car inventory, you may need different solutions to fit your needs. That’s why PassTime is proud to offer a variety of industry-leading, scalable GPS tracking solutions for practically any company size, scope and budget.
The Elite GPS uses PassTime’s proprietary collection technology to help you communicate with customers and keep them on track with payments. Track vehicles 24/7 and send proactive payment reminders to borrowers with the Select GPS solution.
PassTime’s InTouch VP offers inventory management and battery-powered GPS theft recovery for dealers and consumers. The solution recently helped a Houston-area customer recover six stolen vehicles in a three month period.
Know where every vehicle in your inventory is immediately with Encore, PassTime’s 4th-generation battery-powered GPS device. With 150% greater signal capture, accuracy and performance than its previous generation, Encore features four power modes that allow you to find assets quickly. Plus, an enhanced battery life and geofencing ensures better protection out in the field.
Still not sure which PassTime GPS solution is right for you? Contact us today to speak with a PassTime representative to find the GPS tracking solution you need.
