Tax season is here, stimulus checks are being issued, and people are itching for an excuse to leave their house as the weather warms up. If you’re like many dealers in America, you’re hoping to see the current circumstances result in a spike in sales. Though overall sales were down slightly in February compared to this time last year (15.7M compared to 16.6M last year), there’s still room for optimism.
A recent survey conducted by the National Retail Federation (NRF) backs this up. It found that 10% percent of Americans plan to put their refund toward a major purchase, such as a vehicle. Overall, more people are planning to put their refund into savings this year (54%), but it’s encouraging to note that the percentage of people who plan to spend it on a major purchase has held steady from last year.
But that doesn’t mean you can sit back and wait for shoppers to roll onto your lot (or through your virtual showroom). Here are three tips for bringing in more sales this season.
1. Target the right car shoppers
According to the NRF, men and people between the ages of 25 and 34 are most likely to spend their refund on a major purchase. Maximize your potential to make more sales by targeting those demographics with your ads on platforms like Facebook. With some well-timed, strategically-targeted ad campaigns, you’ll be on your way to swaying more shoppers toward your dealership.
2. Tailor your ad copy effectively
Now is the time to ramp up your digital marketing campaigns with messaging that promotes your online financing and pre-qualification options. Advertise the different options available at your dealership or consider messaging around how easy the process is for shoppers. Incorporating this type of messaging into your ads isn’t just beneficial at tax time: shoppers want access to more financing information earlier in the shopping journey, according to a recent CarGurus study. By promoting more transparency around pricing and financing, you’ll attract more low-funnel shoppers.
3. Don’t forget about your service department
Not everyone will have the desire to put their refund toward a new car, though. People ages 18-24 and with income less than $50K, in particular, plan to spend the money on everyday expenses. Target these shoppers with ads for your service deals instead. Advertising deals on necessary fixes and long-wanted upgrades are a great way to capture the attention of an additional group of consumers.
With the right approach, you can still capitalize on tax season
Finally, go the extra mile to provide a quick and simple purchase process. Even with money to burn, most customers don’t want to spend hours at the dealership sifting through paperwork—especially after having just gone through that with their taxes.