Americans are passionate about their hometowns. Folks in Dallas don’t usually spend their days overly concerned with what’s going on in Houston, so why should you? Local markets are naturally fed by local customers, right?
Not always, and not anymore. The world is more interconnected than ever, and with a more open market, even local businesses need to stay on top of the latest statistics to make sure they are competing at the top. With the impact of the pandemic, automotive selling statistics are changing at a rapid rate—not just monthly, but daily. Those changes can significantly impact a dealership both at the statewide and local levels.
Why is statewide auto data essential to your dealership? Here are five reasons paying attention to automotive insights over a wider region could positively impact your sales.
1. People can search digitally for a deal and travel to get it.
In the past, the process of purchasing a car was relatively straightforward. You woke up, went to your local dealership, found something in your budget, haggled a bit, and drove away. Nowadays, however, customers have the tools to find out if your deals are the most competitive.
Using comparative apps like Carvana, it’s simple for customers to search around; with a few clicks, they can determine where to get their preferred car for the lowest price. If a deal is good enough, they may even drive a few hours away to snag a car at a slashed rate, giving your local dealership a pass. It’s critical to expand your knowledge—and definition—of competition, so you can keep local customers local.
2. Parts of one state may see different trends than another.
Larger states can sometimes feel like different countries, but just because a trend isn’t happening locally doesn’t mean you can’t use it. Statewide auto data can steer your dealership towards insights you may not find when only looking at local trends.
The Q1 2021 reports for California show electric car sales at over 59,000 with 37,000 charging stations now scattered across the state. Most of these charging stations are located in the major cities in Northern and Southern California, but what if you’re a dealership in Central California?
The local statistics will lean away from electric cars, but with California aiming for a full overhaul of electric automobiles by 2035, the statewide statistics indicate a different trajectory. Keeping an eye on statewide trends like this will keep your dealership on the cutting edge.
3. Different states may have more or less competition between dealerships.
No two states are alike, and while in-state trends can certainly steer businesses in one direction, it’s important to note differences in population size, population proximity, and number of dealerships in a given area to understand how much competition you’re up against.
In Kansas, if you map all of the dealerships, over 65% are in the eastern half of the state, with a large cluster around Topeka. Population density says that more customers will buy their cars in and around Topeka because there are more options; however, that doesn’t necessarily bode well for competing dealerships in that area. More isolated dealerships on the western half of Kansas may not have the population density, but they benefit from limited options for customers who choose to shop there.
What does your selling radius offer? Can your dealership offer more than the competition? Do you need to offer anything new? Easily accessible automotive data will tell you.
4. Gain customer trust by providing a statewide breakdown.
Nothing makes a customer happier than knowing they got the best deal with the most accurate information. Many customers will take the time to do their own research, but at the end of the day, you’re the expert.
If a customer comes in and asks you what the top selling car is, you can always tell them that Lexus is the top brand in town. Or, you can make them feel more assured with your automotive selling knowledge and let them know that Lexus may rule the local streets, but Honda is the favorite of their entire home state.
They might still want the Lexus, but they now trust you know what you’re saying, and that’s what automotive sales and customer relationships are all about.
5. There can be large variants between local, statewide, and national trends.
Variety is both a blessing and curse of the U.S. market. Differences in personalities, cultures, finances, and spending habits make it easy to find a small market, but sometimes difficult to manage a large one. That’s where automotive sales statistics come in—not just at a local level, but at a statewide and national level as well.
Let’s look at South Dakota. In the first half of 2021, the top-selling model in the state was the Ford F-150 with a margin of nearly 2%, followed by the Chevrolet Silverado 1500. On a national level, though, while the Ford stayed in the lead, the second top seller shifted to the Toyota RAV4. Nationally, the Chevy doesn’t even make the top 20 list.
How big is your market? Should you reconsider your inventory? You won’t know without state-level automotive insights.
More data matters.
As a local dealership, you know your community inside and out. You pride yourself on your good deals and personalized customer service. At Cross-Sell, we share those values. We believe that a great customer experience is fueled by transparency and authority. You’ve simply got to have all the facts on hand.
Competitive automotive data is useful for any dealership, but with Cross-Sell, you’ll also get access to the statewide and national automotive statistics which will give your dealership the competitive edge you need to thrive. And with our digital platform, Cross-Sell Interactive®, these statistics are just a click away on all your devices.
Ready to access high-impact statewide auto data? Get a custom quote today, or call us at 800.369.5870.