According to a study conducted by Inilex, dealerships continue to face more challenges, despite their confidence in the overall auto industry.
The study conducted by the telemetry solutions provider, which surveyed 306 new and used car dealerships across the U.S., cited lot management and financing as some of the biggest issues plaguing dealers.
About one-third of the dealers surveyed said they have experienced trouble locating vehicles when preparing to take a customer for a test drive, and even more — 86 per cent — encountered a dead battery when getting ready for a test drive.
The survey also found 22 per cent of dealers had at least one vehicle stolen in the past year.
“Poor lot management and stolen cars are more than hassles for dealers — they cause missed sales opportunities and significant financial losses,” said Michael Maledon, CEO of Inilex, in a press release.
When asked to identify their single biggest F&I sales challenge, dealers reported a lack of financing and unwillingness by customers to purchase products that they thought were lacking in tangible benefits.
Despite the challenges dealers face, most of them remain optimistic about market conditions for aftermarket sales, with a little more than half believing the opportunity for aftermarket product sales is greater than it was five years ago.
