This is not about the recent election, of which the impact will be seen over time. These extremes are right now: average auto financing balances are at a 7 year high and factory-supported lease terms are approaching less than $100 per month.
TransUnion in the Q3 Industry Insights Report pegged the average balance per customer at $18,361, the highest balance since Q3 2009. Wantalease.com detailed the factory’s current offers with a new Sentra SV now at $109 a month.
While much of the country is pondering what will happen next on the political side, our job is to know what to do with Year End Sales already under way. The best advice, don’t get caught behind your competition.
The buyers about to come into the market may be aware of the $18,361 figure as an average finance balance but you need to make absolutely sure your in-stock inventory, especially used, gives them shopping leeway above and below that figure. The same with marketing aggressive lease offers – no doubt your market has seen $99 a month or below on new vehicles for some time.
A good rule of thumb about the quality of your offers and all traditional and digital marketing efforts between now and New Year’s: be at your best when all the rest decide to get in the game, and that includes competitors who have laid out all year.
John Paul Strong
John Paul Strong combines his two decades of automotive marketing experience with a team of more than 140 professionals as owner and CEO of Strong Automotive.