How COVID-19 Strategies Can Help Dealers Pivot in 2025

If the word of the year in 2020 was unprecedented, the word of 2025 may very well be tariff. Tariffs have been top of mind across nearly every level of the automotive industry and for good reason. While the full impact of tariffs on the automotive industry is still unfolding, the uncertainty feels familiar. 

Much like the early months of 2020, when we knew COVID-19 would affect the industry but didn't yet know how much, the industry is once again bracing for impact. With early signs pointing to similar trends — tightened new vehicle supply and rising used car prices — it's a good time to revisit the strategies many found successful during the last major disruption. 

1. Use Targeted Marketing Tools To Acquire Inventory

Although vehicle inventory levels haven't yet reached the lows of 2021 to 2022, experts predict a similar trajectory as OEMs announce plant shutdowns and slowdowns in response to tariffs. During COVID-19, dealers who leaned into targeted marketing tools to drive traffic to their stores were more resilient. 

Equity mining through CRMs or service drives to offer premium trade-in offers helped build both used inventory and sales. These same strategies, especially using your CRM to target customers likely to be interested in a new vehicle or making offers while the vehicles are already in your service lane, could once again prove crucial to surviving the next supply crunch. 

2. Lean Into Data 

Dealers are surrounded by data, from CRMs to the DMS and the dashboards that support the two. However, the ones who thrive translate that data into actionable insights. Most dealerships are already tracking key metrics like inventory turnover rate, lead response time, conversion rates and aging inventory data to optimize operations. 

But the next step is to pair those insights with smart tools. Instead of relying on manual pricing research, tap AI-driven tools that constantly monitor the market and signal when to adjust prices and when to hold. Those who use data to stay ahead of the curve will be most successful. 

3. Double Down on CPO

The U.S. currently has nearly an 80-day supply of new vehicles, tracking below last year for the past few months. Should new vehicle inventory levels continue to fall, alongside anticipated price increases from some automakers, many buyers may start considering alternatives. 

Certified pre-owned vehicles offer an attractive alternative: They still come with a factory-backed warranty and often qualify for new car financing rates, which tend to be lower than typical rates for used car loans.

4. Solidify Efficient Processes

The data is as clear today as it was five years ago: Customers don’t want to spend more time in the dealership than they have to. CDK research shows that anything beyond the three-hour mark begins to directly impact NPS scores. Evaluate your dealership processes and identify efficiencies — either through new technologies or simply by cutting out unnecessary steps — to help ensure your customers leave excited instead of exhausted by the experience. 

5. Focus on the Customer Experience

Whether times are good or bad in the automotive industry, a customer-focused experience is the way to build loyalty and boost good reviews. Look at your online reviews and consider what parts of the customer experience warrant another look. 

CDK data shows that one in four customers who start their journey online have to reenter personal information upon arriving at the dealership. On the service side, hold times or unanswered phone calls caused significant pain points in customer experience and impacted NPS scores. Ensure your customer journey is seamless, whether they're digital first or prefer the old-fashioned approach, to help your dealership through challenging times.