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How to Sell More Cars at a Car Dealership?
Discover how to sell more cars at your dealership with effective strategies. Find tips about handling customer interactions, optimizing inventory, and using digital marketing to boost your visibility.
At one point or another, most car traders ask themselves how to generate more sales. That’s a common challenge, but it’s also one that you can solve with the right strategies.
Regardless of how niche your dealership is, there are proven automotive sales techniques that boost sales for dealers who:
- Operate B2C dealerships
- Sell cars in bulk to other businesses
- Deal in damaged cars for parts
- Refurbish vehicles
- Manage fleets for taxi services
Of course, each of these specific areas has its specialized approaches, but we’ll guide you through sales-increasing strategies applicable anywhere in the automotive industry.
To do that, it’s best to start with possible reasons why a dealership’s sales may be stalling.
Possible reasons for decreased sales performance
If you had unlimited resources, your sales would probably also increase. Why?
Because you could hire more salespeople, train them, and upgrade your marketing efforts. It’s precisely the lack of these elements that may be hindering your sales.
You can see more possible reasons below.
Still, we have some good news for you.
First, if you’re struggling with decreased sales due to these reasons, your competition is, too. This means that you can gain an edge by addressing the issues more quickly and efficiently than them.
The second piece of good news is that you can overcome these challenges without overspending your budget.
We’ll now outline strategies that approach selling more cars from two sides: as an individual salesperson, and as a dealership as a whole.
How to sell more cars as a salesperson?
A strong inventory is the foundation of your dealership—no doubt about that. But the second most important element is the person selling these cars.
If you’d like to become that person who effortlessly closes sales, here are some tips to include to your routine.
► Boost your knowledge about the cars you sell
When you’re buying a fridge, you expect the salesperson to know the energy efficiency and capacity of the models you’re interested in. Why would cars be any different?
So, it would be a good idea to brush up on the key details of each car that enters your lot, such as:
- Engine specifications
- Fuel efficiency and emissions
- Safety features
- Mileage and condition
- Maintenance and repair records
- Unique selling points
In other words, you have to work on your vehicle product knowledge.
A fun way to improve your knowledge is by watching YouTube videos about the vehicles you’re selling.
We’ve written a lot of articles about various brand fun facts, which you could use to impress your customers, especially if you’re in the B2C niche, in other words, if you’re selling to private customers.
- BMW Fun Facts
- Mazda Fun Facts
- Volkswagen Fun Facts
- Nissan Fun Facts
- Peugeot Fun Facts
- Audi Fun Facts
Isn’t that more engaging than learning a list of specifications by heart?
Also, if you’re dealing in parts, then you should know about compatibility with various car models. Those who sell cars for refurbishing should understand the potential for repair and restoration.
Whatever your dealership’s specialty is, you should be ready to confidently answer any questions and give helpful info so your customers can make smart choices.
► Build organic rapport with potential customers
Did you know that more than 30% of customers say that talking to a friendly agent is key to good service?
Well, now you do!
With that in mind, you should focus on building connections with your customers. While listening to their needs, you can find ways to make your sales pitch more personable.
And if you’re ever short of small-talk topics, you can always count on automotive fun facts. Whether you’re talking about Peugeot, Nissan, or Audi, sharing a fun fact is bound to open up a conversation, leading to a more friendly and relaxed atmosphere.
► Test different communication strategies
Every customer is unique, and so is their way of communication. As a car salesman, it’s your task to identify these preferences and adapt your approach.
Some customers may prefer quick text messages or emails, while others might value phone calls more.
An engaging email can turn potential buyers into paying customers
For example, you might find that younger buyers are more responsive to digital communication, while seasoned car fleet buyers might prefer visiting the lot.
With so many communication options available, it’s a good idea to keep a record of what methods lead to sales.
Next to each sale you close, note the communication style that has led to it. That way, you’ll gather data that you can use to refine your future sales.
► Overcome objections
No matter how well you connect with a customer or how knowledgeable you are, objections are a natural part of the sales process.
Since objections are likely to happen, it’s better to embrace them than to try avoiding them. For instance, if a customer worries about the cost, you could discuss financing options or highlight the long-term value of the vehicle in terms of resale value.
No matter what the objection is about, a successful car salesperson listens attentively, responds thoughtfully, and provides reassuring solutions.
The same goes for online channels!
If you receive negative reviews, you should remain polite and address the concerns professionally, because your responses are visible to other potential customers.
How to sell more cars at your dealership?
In addition to improving your sales strategies as an individual car salesperson, there are also ways that you can enhance your dealership’s operations to increase sales.
After all, individual salespeople can come and go, so it’s vital to implement steady business strategies that you can always rely on.
► Use data analytics for stocking decisions
Customer preferences, regional sales data, and economic factors all play a role in finding the right inventory for your dealership.
Luckily, all these elements are quantifiable. Once you have the figures in front of you, you can make data-driven decisions and stock your lot with the vehicles that are the most likely to sell.
For instance, if data shows more people in your area are buying electric vehicles, stocking more electric models could help you capture this growing market and boost your sales.
The best part about this strategy is that you don’t necessarily have to crunch numbers yourself. There are plenty of automotive software solutions, such as DealerSocket or Market EyeQ that can analyze the data for you.
Source: DealerSocket
If you’d like to stay in the loop with the current trends, check out our analysis of the European used car market in Q1 and Q2 2024.
► Educate your staff
This strategy often goes overlooked because it’s so fundamental.
However, a habit of educating each member of your staff about the latest automotive trends and sales techniques can make a huge difference in your dealership’s performance.
Instead of leaving each team member to figure things out on their own, you could organize regular training sessions, keeping the entire team up-to-date and prepared to confidently answer customer questions.
► Work on your online presence
Lastly, if you want to increase your dealership’s car sales, you have to be present online because customers will look you up, even if they’re planning to visit your physical location.
That’s why digital marketing for car dealerships always involves the following:
- Optimizing your website
- Keeping your social media profiles active
- Improving your local Google search results
You’ll agree that active pages like this one inspire more confidence than abandoned profiles or websites, right?
So, focus on these online channels, and you’ll attract more potential buyers and drive more traffic to both your online and physical locations.
Check our guides for dealerships
Advising a newly-established business to enhance their online presence is hardly innovative, and you’ll find many such guides online. But how many of them are relevant to car dealerships?
Not a lot, it turns out.
That’s why we’ve created several tailored guides, each of them addressing a different aspect of running a used car dealership.
Since you’re reading about increasing sales, we think you’ll find the following guides helpful. They’re listed by stage, so feel free to explore the ones that best match your current needs:
- Creating a dealership business plan
- Starting a used car dealership
- Automotive marketing software
- Writing successful automotive content
- After-sales strategies
Each of our guides offers actionable advice. Find the most suitable strategies for you, equip yourself with the right tools, and you’ll be a step closer to achieving your sales goals.
