What occurs to on-line gross sales momentum when a worldwide scarcity of stock crashes right into a pandemic?
In brief: It retains rising. That is what a few of the nation’s public auto retailers reported final month as a part of their fourth-quarter earnings outcomes, describing elevated gross sales on their very own branded digital platforms, growth into new markets and extra buyer capabilities.
Lithia Motors Inc., for example, shared that gross sales by means of its Driveway instrument in December topped its month-to-month objective by 32 p.c. Group 1 Automotive Inc. reported that gross sales on its AcceleRide platform grew 77 p.c in 2021 to just about 20,000 transactions.
Separate from the general public retailers, dealership leaders I’ve talked to in latest weeks have informed me they have not eased up on digital gross sales and are working to make the method simpler.
However many dealership heaps are nonetheless thinly stocked as automakers have not but been in a position to produce sufficient autos to meet up with demand. That has pushed shoppers into manufacturing and supply pipelines for brand spanking new autos and made it more durable for dealerships to supply used autos.
Digital gross sales instruments require a gentle stream of stock to ensure that shoppers to have a wide variety of autos to purchase by means of the instrument, so the collision of those two international occasions has created clear challenges.
