As dealerships across Canada adjust to new health and safety protocols while serving customers again, Robert Poëti, President and CEO of the CCAQ (La Corporation des concessionnaires automobiles du Québec) is advising caution.
In an interview with Canadian auto dealer Poëti said dealers, who are surfacing from months of closure, will need to exercise caution when it comes to analyzing sales figures and prudence in evaluating the first month of resuming operations in terms of sales.
Specific to dealers in Quebec, Poëti said there were no sales in March, April and May. “The people who had to change their vehicles because of a lease, or the people who had to change their vehicle because it was planned, couldn’t do it” during this period.
“That means that in June those consumers are not the people who are coming to shop for a vehicle,” said Poëti. “These are people who are coming to buy or lease a vehicle. The shopping part was done three months ago. So it’s a bit difficult to say June was a great month because, in fact, customers of the past two to three months are now showing up.”
Poëti said the real way to assess the situation will be in three months from now. Only when we complete the months of June, July and August (the “equivalent” months) will we know what if dealerships did well during the summer months, he said.
“That’s because this month, I have the customer from the previous month and the month before that who are coming in at the same time,” said Poëti, adding that we must be careful when looking at the recovery period, to-date, as a “good recovery” from COVID-19.
He said there is a recovery, but whether or not this is a good recovery period is yet to be seen in the coming months.
At the moment, there are programs from dealers and OEMs that can help boost the sentiment that it is a “good recovery,” as these programs offer attractive incentives to consumers. Things like 0 per cent interest for X amount of months, no payments for six months, 10-year guarantees — a range of options is available to Canadian consumers where new vehicles are concerned.
“These are beneficial incentives for consumers that may not have taken the decision to change their vehicle — but that’s something we will only know in the coming months,” said Poëti.
