4 Min ReadNovember 6, 2023

The Boom(er) Times Are A-Changin’ for Dealerships

The Boom-er Times Are a Changing for Dealerships.

Baby boomers have dominated car buying and leasing for decades. Now, the oldest members of this generation, typically classified as those born between 1946 and 1964, are in their 70s. What does the aging of this huge cohort mean for your dealership?

Well, times are a-changin’. Your dealership will have to adapt its sales process to appeal to a wider range of customers as boomers age and younger generations step up.

The Flexible Path to Purchase

The good news is that if you’ve taken steps to offer a flexible online-to-in-store buying experience, you’re in good shape to shift with demographics. There are two reasons why. First, we know it’s safe to say that 100% of shoppers use the internet during the vehicle research process. Yes, boomers are as addicted to their screens as younger generations.

The concept of going online early in the buying process to gather vehicle information is here to stay. So, it’s important to make sure your website (your virtual showroom) is equipped with easy-to-find and -use research tools, including detailed vehicle display pages (VDPs) and digital retail tools.

In addition, the hybrid approach makes your dealership appealing to the widest range of shoppers. This is backed by data from our Ease of Purchase Survey, which tracked how people purchased from June 2022 to June 2023.

In June 2023, 67% of buyers completed the purchase process solely at the dealership, down from 73% in 2022. The drop most likely is due to inventory returning and fewer buyers placing vehicle orders. The point is that the in-store experience isn’t going anywhere anytime soon.

The survey also revealed that 29% of buyers completed at least one of the purchase steps online (such as applying for financing or securing a trade-in value) and finished the deal at the dealership. So, the hybrid approach is also alive and kicking.

The bottom line is that a hybrid approach where the buyer decides how to purchase will make your dealership appealing to all, from the boomer in his 60s to the millennial in her late 20s.

Shorten the Time Spent In-Store

Although most customers want to complete all or some of the purchase in-store, they have a low tolerance for idle time. The CDK Global 2023 Friction Points Study found that longer times spent at the dealership significantly and negatively impacted the shopper’s likelihood to recommend the store to others and slashed customer satisfaction. More specifically, 48% cited price negotiations and waiting on a salesperson as their top pain point.

But there was a big shift in how boomers saw themselves in terms of wanting to spend time at the dealership. From 2021 to 2022 boomers who identified themselves as a shopper who wanted to get the deal done quickly jumped from 45% to 71%.

A key step in adjusting your approach to match up with customer expectations is leveraging mobile technology in-store during the deal-making process. Sales associates can secure a distinct advantage when they use a tablet equipped with the same digital retail tools that customers use on a dealership’s website from home. They can sit side by side with a customer to:

• Review vehicles

• Choose options

• Compare financing plans

• Complete a first pencil

This is a more flexible and consultative experience that can move the process along faster without jeopardizing profit since dealership-specific deal guidelines are built into the tools.

Best of all, it works across generations. A boomer who hasn’t started a deal online can begin right away in the store with a sales rep who’ll stick by their side and walk them through the process. A millennial or Generation Zer who’s started the process online will see the work they’ve done at home pop up on the sales associate’s tablet so they can pick up exactly where they left off online.

Times are a-changin’ and your dealership can change right along with it. A hybrid sales approach enabled by technology will help your dealership appeal to the widest range of buyers. As boomers age and younger generations step up, you can step up right alongside them.

Share This

CDK Global
By CDK Global
Staff

Recent Insights

Community College Recruitment Strategies for Your Dealership.

Community College Recruitment Strategies for Your Dealership

Recruiting people to staff entry-level positions at your dealership can be a challenge. Rather than posting a “help wanted” ad...
3 Min ReadDec 6CDK Global
Dealers Deliver on Customer Experience in November

Dealers Deliver on Customer Experience in November

Inventories hit some of their highest levels in years last month and the ability to find the car they wanted...
3 Min ReadDec 2David Thomas
Energize E V Sales This Winter.

Energize EV Sales This Winter

Winter is a unique time to sell cars, especially in cold climates. This year promises to be an even more...
5 Min ReadNov 22CDK Global
The Need for Speed. How A I Is Transforming Auto Dealerships.

The Need for Speed: How AI Is Transforming Auto Dealerships

In today’s fast-paced world, time is one of the most precious commodities, and nowhere is that more evident than in...
3 Min ReadNov 20Jessie Hammonds
Dealership Recruiting and Retention in the Age of Social Media.

Dealership Recruiting and Retention in the Age of Social Media

With the U.S. unemployment rate hovering just over 4%, auto dealership recruiting and retention are daunting challenges facing dealers of...
4 Min ReadNov 19CDK Global
New Research Highlights Impact of AI in Automotive

New Research Highlights Impact of AI in Automotive

AI in the automotive industry is no longer a trend. Dealerships are experiencing gains across their operations thanks to technologies...
2 Min ReadNov 13CDK Global
Shoppers Have Harder Time Finding the Right Car in October

Shoppers Have Harder Time Finding the Right Car in October

Disruptions in inventory, whether it was due to stop sales, model year turnovers or even natural disasters, seem to have...
2 Min ReadNov 4David Thomas
Why the Design of License Plate Frames Matters.

Why the Design of License Plate Frames Matters

There’s nothing wrong if a dealership wants a little promotion after they’ve made a sale. However, car owners often have...
3 Min ReadNov 1CDK Global
Yes Your Service Department Waiting Room Really Matters .

Yes, Your Service Department Waiting Room Really Matters

Whether it’s at the dentist’s office, the airport or a car dealership’s Service department, nobody enjoys being sequestered in a...
3 Min ReadOct 21CDK Global
Service Shopper 4

Service Shopper 4.0: Dealerships Gain Ground

Fixed Operations continues to be a major profit center for car dealerships. And the competition from independent repair facilities and...
3 Min ReadOct 17CDK Global