BY Kathy Crosett
As economic uncertainty continues in the U.S., automakers and their dealers are facing increasing competition. In addition, the pressure of tariffs is tightening profit margins. The best auto dealer marketing strategies can stop loyalty erosion and win new customers. Here’s what your dealers need to know.
What are the U.S. Auto Market Projections?
At the end of Q3, analysts say that passenger vehicle sales for this year are down 8.9% from last year while light truck sales have increased 10.5%. Total sales could be around 16.02 million units. This is a slight increase from the 15.9 million units in 2024.
Looking ahead, Wards reports that 2026 sales may bring in 15.6 million units. Manufacturers may continue to struggle with the impact of tariffs next year. To keep price increases in check and support dealers, automakers may reduce expensive features in the models they release.
What Challenges Are Your Auto Dealer Accounts Facing?
Dealers are facing the erosion of loyalty, one study claims. The buying experiences during the pandemic left some buyers feeling frustrated. Not only did many people have to buy a vehicle without a test drive, but they also now believe they overspent. The result of those experiences means up to 30% of vehicle owners are not recommending dealerships to friends and family.
This is a serious issue. Your auto dealer accounts can’t afford to lose customers. It requires a change in auto dealer marketing strategies.
NADA data shows that to conquest a new customer, a brand must spend $633. Meanwhile, proper engagement with current customers can lure them back “for less than $100,” suggests Alex Snyder, VehicleLyfe CEO.
Word of mouth has long been a leading influence on shoppers and auto dealer selection. And AudienceSCAN data shows that at least 50% of Ford shoppers, for example, have taken a purchase-related action based on personal recommendation.
What are New Vehicle Buyers Looking For?
Automakers can retain customers and attract new brand buyers by advertising the kinds of details that matter to buyers. For example, 23.7% of Ford shoppers will pay more for a vehicle with the latest technology. And 27% want to buy a vehicle that reflects their personality, reports AudienceSCAN.
But some of the challenge to attract buyers must be addressed by your local dealer accounts. AudienceSCAN data reveals what Ford shoppers are looking for:
- Good selection of available vehicles 46%
- Solid dealer reputation 45%
- No high-pressure sales tactics 43%
- Willingness to negotiate 42%
With dealership loyalty in question, your accounts should know that 28% of Ford buyers want to shop where salespeople are helpful and friendly.
If your accounts haven’t been emphasizing these details as part of their auto dealer marketing strategies, now is the time. Offer to help dealers that are struggling to come up with creative ideas. A quick review of the AI Idea Generator tool in AdMall can help you put together a pitch.
And if your dealers complain about the cost of the ad campaign, check out the co-op advertising plan details. This information is available in AdMall, ready to be shared with dealers.
What Kinds of Advertising Influences Auto Purchasers?
In the past month, 41% of Ford buyers have acted on ads they’ve seen on search pages. And 40% have done the same after seeing a TV ad.
As part of their auto dealer marketing strategies, your account should appeal to the purchase motivators of their target audience. AudienceSCAN contains this information for many auto brands.
Drilling into the details for Ford shoppers, around 30% buy products that make them feel successful, safe and fun/exciting. Dealers may also want to highlight favorite activities of their target audiences in advertising. For Ford shoppers, these activities include attending a music festival (35%) and visiting the state or county fair (27%).
Summary
As your accounts plan their auto dealer marketing strategies for the coming year, remind them of the need to emphasize how their dealership delivers for shoppers. Consumers will still need to buy vehicles. They may be incentivized by new legislation that allows them to deduct financing costs on their tax returns. They’ll be further incentivized to visit your accounts when the advertising promotes the features they are looking for.
