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Internet Destroys Profits – Auto Sales Strategies

Internet Destroys Profits - Auto Sales Strategies

The natural transparency that is delivered by the internet is having deep and long-lasting impact on auto prices in the US. So with the current slowdown in sales that have hit records since the 2009 Great Recession, auto makers are now being forced to hold onto sales targets and market share by adding extras such as new paint, stereos, and other systems to add to the value of the vehicle. 

Auto dealerships earned an average of 1.2% last year from sales, compared to 2.1% in 2014. So as profits are being squeezed, one can only imagine the different packages auto makers such as Toyota, GM, Ford and Nissan are offering in the competitive US market. 

The new strategy by auto makers is that they offer a new car or 4WD, and after placing pressure on their internal financing program, they then revert back to the sales force and give extras to entice the customer to choose the product. It goes without saying that this type of aggressive sales will only intensify as the auto industry is put under pressure in 2019 and 2020. 

Team Classiarius 

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