Dealerships are in a critical phase as discounts are being applied to aging car inventory. Len Short, the Chairman and CEO of Lotlinx, speaks with anchor Jim Fitzpatrick on the most recent episode of Inside Automotive about strategies dealers can use to capitalize on vehicles that are frequently more difficult to sell.
Key Takeaways:
1. Lotlinx conducted a beta test of a new lead product with some of the top operators in the country. The beta results showed that operators achieved 50 to 60% of appointment set rates from the lead. However, in October, the rate slowed down, but there was no change in the leads.
2. According to Short, the consumer’s approach changed, and they became highly sensitive to prices due to inflation. This has led dealers to carry over more inventory, leading to a highly competitive market. Therefore, Lotlinx advises dealers to develop a defensive strategy to defend the risk inventory they are carrying over.
3. Short suggests that dealerships should think of data as working with what they are selling rather than what they are carrying over. This approach will help them re-evaluate their marketing efforts and how they implement data in the store.
4. To help dealerships with their inventory risk, Lotlinx is introducing the Sentinel platform at the 2024 NADA show. The Sentinel platform is a machine that watches the lot, predicts the risk, and automatically executes strategies to mitigate it.
5. If your dealership is interested in adopting new data technology, you can visit Lotlinx.com to learn more and download their free material.
"There are no more resilient people on earth than car dealers." – Len Short.
