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3 Telltale Signs You Need To Modernize Your Auto Dealership

Posted by James Patrick Kahler on December 4, 2015

Old_Cell_Phone.jpgHave you ever seen an old picture or video of yourself from back in the day? One where you’re wearing some ridiculous outfit and then try to justify it by saying something like, “well, it was the ‘80s!” Unless you’re still going for that look from several decades ago, then you know the importance of making changes.

Old habits die-hard, yet they do eventually go away and it’s usually for the best. When innovation flourishes, whether it’s through pop-culture or industrial progress, it’s good to know when to make a change for yourself, especially if you’re a business owner.

Retail automotive operations are changing and it’s time to take notice for the sake of your own auto dealership. If you haven’t took the initiative to bring your dealership into the modern era of business models, here are three key indicators that it might be time for you to do so:

3 Key Indicators

1.) Technology Is Coming To Automotive Retail

More and more companies are investing in technology businesses entering the auto industry. According to a recent TechCrunch article, “There have been 33 major equity transactions and investments worth $35 billion in automotive retail over the last 18 months.” The same article goes on to mention that “…the influx of outside capital is a big game changer for an industry that has been more akin to moving at a slow pace but must start gearing up for the inevitable havoc that mobile, social, and big data technologies inevitably bring to established business models.”

2.) Demographics Are Changing

This goes for both dealership customers and employees. TechCrunch says that “Millennials have spearheaded disruption in the automotive industry with a major focus on pricing transparency, a preference for the ease of digital transactions, and the fundamental expectation that their car should simply be an extension of their “always on” mobile lifestyles.”

Hireology has found that in 2014, 48% of all new hires were Gen Y employees. The millennials now make up 29% of the average dealership workforce—an increase of 6% compared to 2012.

3.) The Traditional Dealership Model Is Dying

Many dealerships are now recognizing the importance and need for updating their operations. TechCrunch predicts “…that by 2025 the dealership model as it exists today does not exist. It has instead morphed into positions within the Digital Marketplace and/or Mobility Service Providers roles.” The technology news source goes on to suggest that dealerships must “…position themselves for future success, dealerships need to understand hot technology disruptions are impacting their business environment, embrace the digital revolution in their customer relationship and back office data management processes, and hone their digital marketing chops to remain relevant.”

“They also need to think hard about the type of skill sets the dealership will need going forward that can provide, nurture, and retain the connected consumer for life across all of their automotive mobility needs.”

What To Do

For starters, get the right people on board at your location. High turnover is a well-known issue for the auto industry. Here’s what Hireology has identified as crucial problems facing dealerships and staff:

  • People are the number one cost for dealerships
  • 75% of dealers report having trouble with hiring
  • Hiring the wrong manager can put a dealership behind 6 months
  • The cost of replacing a bad hire is between 3 and 10x compensation

Not sure what else to do? Click on the link below to get some tips from automotive experts on how to build a better team at your dealership. 

Webinar Automotive News Hireology  

HR & HR Technology, Hiring Tips, Automotive Industry


James Patrick Kahler

About the Author

James Patrick Kahler is Hireology’s Copywriter & Content Specialist. He is a graduate of the E.W. Scripps School of Journalism at Ohio University and has over four years of professional experience writing for various industries. Outside of the office (and sometimes inside), he has a passion for comedy, advertising and his Cleveland sports teams…all of them.