Dealerships are continually improving services and processes for their customers by embracing advancements in finance and technology. By anticipating and responding to these changes, dealerships remain competitive.
Digital transformation, evolving buyer habits and data-driven decision-making affect how dealerships engage customers and provide services, resulting in better strategic planning for growth, profits and customer service.
Financing options to meet consumer demand
Bolstering financing strategies will be just one of the topics discussed at the AICPA® & CIMA® Dealership Conference in October. The conference provides a learning platform for anyone working in dealerships to keep up with the latest updates and consumer challenges in the industry.
According to defi Solutions’ “Auto Finance Industry Trends for 2023,” more consumers seek flexible financing options that accommodate their needs and offer more choices for paying back dealership loans, such as subscription services and leasing programs. These new choices are more adaptable and can better meet consumers' changing needs in a constantly shifting market.
Customers increasingly prefer to buy online instead of in person, leading dealerships to invest in online platforms and easy-to-use interfaces that let customers look at inventory, compare prices and buy online. With more lenders and borrowers embracing the technology, experts predict that the digital lending platform market will double from $10.7 billion in 2023 to about $20.5 billion in 2026.
By using customer data and predictive analytics, dealerships can learn more about potential buyers. Doing this positions your business to develop better strategies that meet the needs and wants of potential buyers, making them into happy, loyal customers.
Measuring prosperity and profitability to achieve goals
Dealerships can create sustainable business models that do well in today’s competitive industry by using benchmarking analysis, forecasting techniques and reporting standards to combine traditional profit-driven strategies with practices focusing on growth and prosperity.
For example, auto dealerships searching for ways to improve and set attainable goals for success can use benchmarking. Analyzing key metrics like gross profits, sales, customer numbers, operating costs and business performance allows you to determine how well your dealership performs compared to competitors.
Forecasting is an important tool for dealerships to improve their decision-making about business strategies, spot possible risks, find ways to stay ahead of the competition and assess the cost of being profitable versus the cost of company expansion.
Following international accounting standards when making financial statements and performance reports allows your dealership to give a full picture of its market position and performance, so investors, shareholders, employees and customers can assess the company’s overall worth and compare it to others.
Perspectives from industry experts on the industry’s future
Digital transformation, changing consumer behavior and data-driven decision-making will continue to shape the dealership industry.
Connect with peers and leaders in the field to share ideas, work together and learn from each other’s stories and successes, which can help you stay ahead of the game and do well. Hear insights on how measuring growth and profitability leads to strategic decision-making.
Join us at the AICPA & CIMA Dealership Conference, Oct. 23–24, Caesars Palace in Las Vegas and live online to learn about the future of the dealership industry and more.