With the New Year only weeks away, I like to take a bit of time to reflect on the past year, as well as the upcoming one. It’s no mystery that 2021 was a tough one for the automotive industry. Low inventory. Chip shortages. Supply chain issues. The list goes on. But the future looks bright, and I’m expecting big things for both Dealerslink and for the automotive industry in 2022.
If there’s one main takeaway from 2021, it’s the importance of the used car sector. The used car department is the most critical component of all car dealerships. There’s simply no other way to say it. As a car dealer, you typically can’t do a new car deal without a used car trade. So, without a strong used car department, your business isn’t going to be very successful. The same goes for your shop, which depends on used car inventory. Without used cars, your shop just wouldn’t have much business. But most of all, we learned this year that dealers can’t depend on their OEM to deliver competitive new vehicles all the time. With the supply chain issues and chip shortage plaguing the new car industry during 2021, dealers had to rely on used cars to make them money, be it trade-ins, sales, or flipping inventory. All things considered: the better your used car department was, the better your dealership did in 2021.
Although used cars are crucial for success currently, I have no doubt that electric cars will soon become just as essential, especially in 2022. Whether we like it or not, electric cars are here to stay, and eventually, they will replace gas-powered vehicles. Dealers that can realize this and make the proper accommodations will have a strong advantage. Those that can’t, will be left in the dust. By accommodations, I mean retrofitting your dealership for the incoming electric wave. Installing charging stations. Adding more electric vehicles to your inventory. Starting to market electric vehicles – you get the picture. Those who can get ahead of the curve on this will certainly be rewarded.
But don’t just take my word for it. Look at the new Ford-150 Lightning, for example, one of the first electric truck offerings on the market. Within merely a week of the release, it was already sold out, with over 200,000 preorders placed! 2022 is merely the tip of the iceberg, and every year, electric vehicles will grow more and more prevalent in our society.
What are your predictions for 2022? What are your thoughts on the “electric revolution?” Feel free to drop a comment and let me know what you think!