Running a Car Dealership During COVID-19: 8 Valuable Tips

With a substantial shift towards online sales and adapting to new social norms, Canada’s auto sales industry is still in operation as an essential business in most provinces. However, running a car dealership during COVID-19 has been challenging as dealers adjust their business models.

Running a Car Dealership During COVID-19

Whether your car dealership is open or adapting to a digital sales approach, you need to provide customers a great experience on your website as well as your showroom. This is a crucial time in the Canadian auto sales industry, so you have to follow the best practices to keep your dealership running smoothly. 

Here are 8 tips for successfully running a car dealership during COVID-19:

1. Communicate with Your Staff

You need to ensure that your staff is physically and mentally prepared to perform their duties in these uncertain conditions. Engage with your car salespeople and managers, and reassure them by empathizing and listening to their concerns. 

2. Communicate with Your Customers

Let your customers know that your business is open so they can interact with you and buy from you during the COVID-19 pandemic. You can give video tours, allow solo test drives, and offer better deals and options. 

3. Keep Marketing

Did you know that 59% of Canadians conduct online research before buying a car? Many car dealerships canceled their Google Ads spend, helping competitors who kept spending buy up all the keywords at lower prices and generating more website traffic. With the global digital surge, it’s time to spend more time on social media and build your presence, especially in areas close to your dealership. 

4. Answer Your Phones

Even if your business is closed, answer your phones. Update your customers regarding timings and available services. If you ghost customers, they might not call you again even when the situation improves. 

5. Optimize Communication Channels

There are many communication channels you can employ during COVID-19, such as email and text marketing, social media, live chat support, and video conferencing. By providing multiple options, you can engage different audiences according to their preferences. 

6. Digitalize Car Financing Services 

About 67% of Canadians applied for financing at a car dealership in 2019 to purchase a new or used car. This is why you should make car financing services and consultancy available on your website. 

7. Optimize Delivery Channels

If there are more lockdowns down the line, you need to work out who you can redeploy to deliver vehicles and keep the cash flowing. 

8. Turnover Is Vanity, Profit Is Sanity, and Cash Is Reality

Remember, car dealerships are franchises, so you’re not just selling cars, but also providing car financing, mechanical service, storage, and body repair facilities. So, even if you’re not selling many cars, make sure that your add-ons don’t drip during this period. 

Learn More

The Canadian auto sales industry is finally picking up pace after a decline due to the pandemic. With rapid business optimization and digitalization, operations and services are becoming smoother and more profitable. 

If you need more information about running a car dealership during COVID-19 and car financing, we recommend you visit MyAutoLenders today.