You’ve likely already started to sense it – with increasing traffic to your website and showroom – and according to a recent Ernst & Young Capital Confidence Barometer of the automotive industry, auto executives are feeling it too. Thanks to an improving US economy, earnings numbers and the increasing availability of credit to consumers, more than half of auto industry executives believe the economy and industry is poised for growth.
Even in spite of the government shutdown, the automotive industry remains bullish, though September sales were a bit slower. In fact, sales in September marked the first time in over two years that the auto industry didn’t see a year-over-year gain in sales. However, the full 3rd quarter of this year was up about 9% against last year – to the tune of an extra 4 million vehicles sold.
With consumer confidence at its highest levels since the beginning of The Great Recession and the new model year upon us, there’s really never been a better time to reevaluate your automotive marketing and automotive direct mail efforts. Perhaps you scaled back your efforts a bit, or tailored your marketing materials to those with less than perfect credit (or no credit). Since the times are clearly changing – shouldn’t your marketing plan change too?
Consumers are still a bit more wary than they were before the recession about spending money – but they’re also more willing to shell out for some of the fun extras, if you make it worth their while. So, consider coupling marketing messages about fuel economy with quips about things like stellar pickup or futuristic design. Consumers who have been waiting to get a new car might just find that now is the perfect time to lease or buy – now that they can get credit. So, make sure your promotions and automotive direct mailers speak to the availability of credit directly.
Demand has been pent-up for a while and the average age of a vehicle on the road right now is about 12 years old. With low interest rates and one of the best lineups of automotives on the market right now, new auto sales have been raised to about 15 and a half million. It’s clear that consumers are interested – so make sure they take that interest to your lot with targeted promotions that spell out just how ready and wiling you are to make an unbeatable deal, and how exciting and reliable the autos are that you have to sell.