The auto industry is always changing and so are the people who keep it going. Car buyers' demands and preferences continue to change as new generations enter the market, and the needs of older generations change throughout their lifetimes.
Technological innovations continue to make older models obsolete. While some are excited about driving assistance and other features, others are worried about the security and privacy they might have to give up in order to get those convenient new features. The increased demand for up-to-date technology has made the percentage of total vehicle costs that come from the technology in each vehicle rise.
Lifestyle stage and generation have a big impact on vehicle buying patterns. Baby boomers are still some of the biggest purchasers of new cars while their children, the millennials, tend to be putting off car ownership in favor of car share programs, public transportation, or ride shares like Uber and Lyft. Because of these new programs, urbanization, and other factors, the demand for new vehicles is expected to decrease next year. Some dealerships are predicted to implement more discounts and rebates to counteract this.
People are increasingly mindful of the impact that their lives and consumption patterns have on the environment. Each state has different regulations for fuel efficiency and sustainability in the auto industry. Both factors lead to higher demand for vehicles with high gas mileage, electric vehicles, and hybrids. The research and development for electric vehicles has come a long way. You might want to consider having some in your inventory to satisfy the needs of any customers that come to your lot or visit it online.
The type of vehicles that car buyers want is always changing. Right now, SUV's and crossover are dominating the market. Consumers want a vehicle that can comfortably fit a family without giving up the style, handling, and fuel-efficiency of a sedan. In general, it's very difficult to predict car buyers' demands because they constantly transform as new technology and capabilities enter the market, but it's important for auto dealerships to stay up-to-date on trends so that sales stay strong.
Read this article to find out more about how the car buying process is changing:
"The advent of car sharing, ride-hailing and self-driving vehicles presages a radical transformation in consumer behavior. The future of personal transportation will be determined by technological advances, informed by the needs and desires of the people who use them. Our understanding of who those consumers are and what choices they are likely to make is changing in surprising ways."
Read this article to learn about trends in the auto industry that will impact your dealership:
"Indeed, what is particularly notable about the current wave of innovation in automobiles is not so much the speed with which it has emerged (though that is remarkable) as the breadth of the innovation - how much it is altering the basic contours and features of the traditional automobile and amplifying the difficulty and cost of manufacturing cars."