New & Used Car Price Trends from Q3 2023
Understanding current new and used car price trends from Q3 2023 can help your dealership prepare for the next quarter as well as the new year. For advice on marketing and tracking your inventory, NCM Instructor and Consultant Bob Ringo Jr. shares his recommendations below.
Bob has experience instructing a variety of dealer-specific subjects, from financial statement training to variable operations, as well as consulting experience.
New & Used Car Price Trends: Supply & Demand
As proven throughout Q3 2023 and over the course of the past three years, car prices are dictated by supply and demand. New vehicles continue to remain in high demand, which allows dealerships more flexibility when it comes to price. Bob adds that the days of charging “over sticker” are coming to an end for most manufacturers, which can lead to more trusting, long-term relationships with consumers.
Supply and demand continue to drive used car prices, too. When a dealership dedicates a good amount of time to finding the right pre-owned vehicles, ensuring that they receive the right amount of reconditioning, and investing in effective marketing, the return on investment (ROI) will be higher.
Maximizing opportunities on used vehicles can benefit the dealership’s overall profits, so long as these vehicles are moving in a timely manner.
New & Used Car Price Trends: How to Market Your Inventory
For most drivers throughout Q3 of 2023, the car-buying journey started online. By the time they visit the dealership, a driver will likely know the make and model they want as well as how much they expect to pay for it.
On the subject of digital marketing, Bob says, “Traditional marketing has become branding while internet marketing has become selling of individual products.” This knowledge, along with the current price trends, dictates how you can market your new and used inventories:
New Vehicle Inventory
If most drivers spend the most amount of time in a virtual showroom, this provides an excellent opportunity for new vehicle marketing. Keep updated model pages through a user-friendly platform. This can help dealerships reach their target audience for new vehicles and ensure that the right message gets across.
Used Vehicle Inventory
Compared to new vehicles, used car marketing is much more competitive. It's imperative that used vehicle managers stay on top of all aspects of their business on a daily basis. This allows them to keep a manageable inventory at the right price, which will return a healthy ROI to the dealership.
A good used car manager also understands that there are certain trends that happen at certain times of the year and will prepare for them in advance.
New & Used Car Price Trends: Looking Toward Q4
As we look ahead at Q4 and the new year, it is crucial to stay on top of new and used car trends. Dealership managers can drive profits by monitoring their inventory and considering what drivers are looking for every day.
The automotive consulting and instructing experts at NCM Associates can help your dealership stay on top of the latest price trends. Contact us today!