The last two years have been challenging for dealerships across the globe. As great businesses do, many had to adapt with the times to minimize the impact Covid has had on their dealerships. As we begin 2024, many of the same challenges remain, but there are ways to combat these challenges. While January isn’t typically a busy month for car sales, there are some opportunities you should be able to capitalize on. In this article, we’re going to give you 4 things to do/prepare for so you can have a great 2024!

1. Prepare for Post Holiday Buyers

While it’s not in the financial cards for most Canadians to gift a car for Christmas, it does happen. Quite often this means promising to go shopping for a car after Christmas rather than surprising the person with an already purchased car. Because of this, you should expect to see some customers who are looking to buy a car as a promised Christmas gift. Despite this being a Christmas gift, expect the vehicle to still be a purchase made with practicality in mind above all, so don’t expect to sell a “flagship” or “halo” model. While you probably won’t sell the “flagship” model, you should have an easier time selling an upgraded trim-level vehicle. 

2. Prepare for Vehicle Collision Replacements

Unfortunately, many of your first quarter customers will be shopping for a vehicle replacement due to a collision that happened in the year prior. Vehicle insurance claims are 49% higher in December and January and vehicles that are considered a write-off are usually replaced immediately. Because these customers are looking for replacement vehicles, they are typically looking to make a quicker decision. Therefore, it’s important that you can streamline the process to make their experience as easy and stress-free as possible. 

3. Work on Increasing Your Used Inventory

As you probably know, the global chip shortage has caused the most significant impact on the automotive industry. Most dealerships have little to no new inventory, so despite having leads, they don’t have cars to sell. This means you need to work on increasing your used inventory so you can give your customers vehicle options. Our tool AVA Buy is the best tool on the market for dealers to increase their used inventory. It’s powered by Kelley Blue Book and it allows customers to send their used vehicle info to you, for you to make an offer in seconds. 

4. Focus on Your Sub-Prime Division

While credit is not an issue for all Canadian car buyers, it is an issue for some. As we mentioned, January is not usually a super busy month for car sales, so it’s a great time to work on improving your dealership strategy. It’s been reported that nearly 25% of Canadian car buyers struggle to get approved for a loan. If your dealership isn’t equipped to deal with sub-prime customers, you’re potentially losing out on 25% of your customers.