
How do you go about buying a product yourself? As a rule, the first step is to search the Internet. And that is
Whether retail or car dealership - the Corona virus has become one of the biggest health, social and economic challenges we have seen in Germany for a long time since March 2020. The Federal Statistical Office reports that because of Corona car dealerships had to report a drop in sales of 15.8 percent on average in the first half of 2020 compared to the previous year.
Dealers were not the only ones who had to deal with car dealerships being closed due to the Corona virus. Car suppliers and manufacturers also had to shut down their production facilities. Many consumers themselves had to fear for the loss of their jobs, expenses were reduced or postponed to a later date. So the question is: Are there alternatives for your car dealership in times of Corona?
In March 2020, what no one had expected became reality. Throughout Germany, the news was "car dealership closed due to Corona". Many locations had to record sales losses of more than 90 percent. In the course of the relaxation in May, car dealerships were also reopened. Nevertheless, it quickly became clear that Corona would continue to have a long-term effect on car dealerships and would lead to far-reaching changes.
Although Corona's car dealerships were able to recover somewhat over the summer, the next lockdown is now just around the corner as part of the second wave. On December 14, the Conference of Chief Ministers decided to close schools, retail and also car dealerships again, probably until January 10, 2021.
What does it mean for you specifically to keep your dealership closed because of Corona? Actually, the lockdown does not apply to systemically important businesses. What that means, specifically:
Lockdown until January, as far as the current status - however, even head of the Chancellor's Office Braun currently leaves open whether there will be extensive relaxations again in the short term after the deadline expires from the beginning of January. Meanwhile, away from the political stage, it is becoming increasingly clear that the effects of Corona go beyond the dealership closing.
These three consequences of the Corona pandemic are showing up at car dealerships:
1. disrupted supply chains lead to bottlenecks on the part of manufacturers - even if the customer wants to buy, not all new cars are available without restrictions.
In uncertain times, people tend to be cautious consumers. Fear for their own job and the future lead to large purchases not being made or being postponed.
3. the uncertain times and unfamiliar new rules in everyday life lead to uncertainty among consumers, which puts the brakes on the "desire to shop".
As a result of Corona, many car dealerships find themselves in a difficult situation as classic location-based companies and have to "rethink". We have summarized for you how you can deal with Corona at the dealership and better arm yourself digitally against the crisis.
The Corona crisis brought a boost to one industry in particular: online retailing! As a study by the German Association of Motor Trades and Repairs (ZDK) from 2019 showed, only seven percent of automotive businesses have a digitalization strategy. However, this contrasts with over half of car buyers who would be willing to buy a car online.
So the question is: How well are you digitally positioned to exploit this potential in your dealership despite Corona? Because with the help of a digital showroom, car dealerships remain open even when the branches have to be closed. This way, you can expand your online presence and effectively stand out from the competition:
This way you can reach your customers independently of the dealership opening during Corona hours and inform them about current developments such as the VAT reduction, new car discounts or the purchase premium for e-cars as purchase incentives.
Once your dealership is ready to reopen, it's important to ensure a trustworthy and Corona-safe shopping experience for your local customers. Software solutions can help you with this as well.
In addition to mandatory masks in the dealership and Corona hygiene concepts, you can digitally support the resumption of business operations in the dealerships:
The Corona pandemic has hit car dealerships across Germany hard. From disrupted supply chains to reluctant consumers to the closure of sales outlets in the wake of two lockdowns so far, Corona is a real crisis for the dealership, but one that also holds great opportunity.
The key word is: digitalization. While the automotive trade has relied on the point-of-sale business for decades, the current situation is clearly calling outdated business models into question.
However, with the help of digital tools, you can address consumers' increasing willingness to buy cars online and never let a potential lead go to waste - whether you have to close your dealership because of Corona.
Do you need support in developing a digital strategy for your car dealership? We will be happy to advise you without obligation in a strategy meeting with our development team. Simply contact us at +49-561-789845-0 or arrange an online appointment.
How do you go about buying a product yourself? As a rule, the first step is to search the Internet. And that is
It used to be: "Once a dealership, always a dealership." Today, the motto is: "Buy your dream car online at the click of a button".
The online used car market is booming! The importance of used car exchanges for the car market can also be seen in the figures: In 2023, over 6 million people in Germany will have
In today's fast and digital car trade, one thing is clear: data is the key to success. Every customer who enters your dealership, sees your online advertisements or
Social media platforms are leading the way: Our purchasing decisions are increasingly influenced by visual stimuli. Of course, this also applies to the car trade. Today's car buyers demand