August 16, 2022 Dealership Marketing 0 Comment

The third quarter of 2021 is upon us. Car dealerships, like the general public, are eager to turn the page on the past year-plus of hardships and get back to a sense of normalcy.

Pandemic lockdowns, plant shutdowns, supply chain issues, and shifts in consumer demand and behavior have continued to create unique challenges for auto dealerships in 2021.

In this e-guide, our Q3 Automotive Playbook, we’ll cover some of the challenges and opportunities facing car dealers in the second half of 2021, along with actionable tips and solutions to help dealerships rise above these hurdles in Q3 and beyond.

What We Learned from Q2

The industry is bouncing back from unprecedented uncertainty, and in Q2 of 2021, we’ve witnessed several positive developments signaling brighter days ahead. However, we’re not out of the woods yet.

Appreciating where we’ve come from and the industry’s current state can help dealerships confidently face the challenges remaining in 2021.

Key takeaways from Q2

  • Increased vaccination rates have led to easing restrictions and more foot traffic at stores. Consumers are eager to get out and about again; they’re ready to buy, too.
  • The third round of stimulus payments helped many dealerships achieve record organic website traffic in March 2021. As a result, Q2 organic traffic is likely down from a record March, but buying season is definitely upon us.
  • Sales are up and businesses are opening to full capacity as more people are becoming vaccinated and restrictions continue to loosen.
  • Many automakers and dealers lost significant Q2 new car volume due to the ongoing semiconductor chip shortage.

We may have already experienced the greatest impact of the chip shortage to production during Q2, according to consulting firm AlixPartners and other industry experts. Supply constraints are forecasted to gradually diminish through the second half of the year and into 2022.

Look forward to next week where we cover How to Overcome Supply Chain Issues!