Heading into 2024, dealers need to be aware of the trends affecting the auto market. More specifically, it’s essential for dealerships to get their car merchandising right in order to stay competitive and be as successful as possible.
The seller’s market that dealers have enjoyed over the past few years is likely heading to a close in 2024. That means it’s more important than ever to stay apprised of automotive marketing trends to stand out from the pack and keep customers coming to your dealership. Here are some of the top trends to look out for in 2024.
3 Key Vehicle Merchandising Trends for 2024
1. Increasing Stock of Electric Vehicles
Starting January 1, 2024, car buyers can qualify for a federal tax credit of up to $7,500 when they purchase a qualified electric vehicle (EV)¹. This tax credit is also easier than ever for customers to take advantage of, thanks to a rule change. Buyers in 2024 will receive this EV tax credit at the point of sale in the form of a discount on the cost of the qualifying vehicle. They won’t have to wait until they file their taxes to benefit from this tax credit.
Given these strong incentives, vehicle customers may be more inclined to opt for electric vehicles when shopping in 2024. The electric vehicle market soared in 2022 but experienced somewhat declining growth in 2023. In 2024, expect the market to rebound. Dealers should stock a higher inventory of electric vehicles in anticipation of this growth. According to Kelley Blue Book, some of the most popular electric vehicles in 2023 included²:
- Tesla Model Y
- Tesla Model 3
- Chevrolet Bolt
- Ford Mustang Mach-E
- Audi e-tron
Stocking these models is a good place to start when you plan your 2024 electric vehicle inventory.
2. Investing in Video Content
It’s safe to say that video was king in 2023 and will continue to rule in 2024. Video content accounted for over 80% of internet traffic last year because it grips consumers’ attention like nothing else does³.
There are many ways dealerships can use video content to catch the attention of their target audience and turn them into customers. Dealerships can post short-form video content, such as Instagram Reels and TikTok videos, to quickly cover a vehicle topic of interest to their audience. These might be how-to videos that help viewers solve a car problem, car walkthroughs of your inventory, customer testimonials, or vehicle comparisons.
Any topic your target customers care about can become an engaging video that serves as effective marketing for your dealership. The return on investing in video marketing content for your dealership is often very strong compared to other forms of vehicle marketing: 92% of marketers who use video content say they are happy with their return on investment from video marketing⁴.
3. Strengthening Online Marketing Strategies
There was a time when dealerships could rely solely on local advertising and word of mouth to be successful, but that time has passed. In 2024, dealerships that don’t embrace online marketing strategies won’t stand a chance against competitors investing in this approach. Vehicle customers are increasingly searching online and even completing sales over the Internet. Pay attention to these key online marketing strategies and keep an eye out for other ways to leverage digital opportunities.
Digital Ads
As vehicle customers shop online, you can catch their attention and direct it to your business with digital display ads. You can ensure these ads show personalized information that connects with each customer and what they’re looking for. Some well-placed digital ads on websites that car buyers are already visiting can be a strong marketing strategy in 2024.
Email Marketing
Many auto dealers are surprised to learn how effective and affordable email marketing can be for their businesses. Emails allow you to easily connect with customers and potential customers at a very low cost. If you haven’t already, start building an email list and map out some email sequences that would engage segments of your audience.
Website Design
Your dealership website is the face you’re presenting to every potential customer who finds your dealership online. To make a strong impression and keep audiences on your site, your website design and function must be top-notch. Ensure your site is easy to navigate, visually appealing, and optimized for mobile devices.
Sources
1. Taylor, K. (19 December 2023). The EV Tax Credit Changes Again New Year’s Day: What to Know Now. Kiplinger. Retrieved December 21, 2023, from https://www.kiplinger.com/taxes/ev-tax-credit-changes-new-years-day
2. Stewart, B. (27 July 2023). 10 Most Popular Electric Cars. Kelley Blue Book. Retrieved December 21, 2023, from https://www.kbb.com/best-cars/most-popular-electric-cars/
3. VNI Complete Forecast Highlights. Cisco Systems. Retrieved December 21, 2023, from https://www.cisco.com/c/dam/m/en_us/solutions/service-provider/vni-forecast-highlights/pdf/Global_Device_Growth_Traffic_Profiles.pdf
4. Top 20 Video Marketing Statistics and Trends for 2023. Zight. Retrieved December 21, 2023, from https://zight.com/blog/video-marketing-statistics/
