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Automotive Market Analysis a Dealer Can Do in One Afternoon

An automotive market analysis does not need a consultant or a thick report. With your own sales records, a map and a few hours, you can see where your customers come from, where you are losing ground and which opportunities are closest.

Automotive Market Analysis a Dealer Can Do in One Afternoon

What you are trying to learn

Keep the goal narrow. You want answers to four questions. Where do my buyers live? What are they buying? Who else are they buying from? Where is the easiest growth? Everything below serves one of those.

Step one: map your own sales

Export the last twelve months of sold customers from your DMS with postal code, vehicle sold, new or used, and whether there was a trade. Count sales by postal code and sort from highest to lowest.

Do the same for service customers. Service usually draws from a tighter circle than sales, and comparing the two shows where you sell cars but lose the service business.

Step two: study what sells and what sits

Look at your used inventory by segment and price band. For each group, compare how many you sold with how many days they sat on average.

  1. List the segments that sell quickly. Stock more of these.
  2. List the segments that age. Buy fewer or price them sooner.
  3. Check which price bands move fastest. That tells you what local budgets look like.
  4. Note what customers asked for that you did not have. Ask your sales team to keep a running list.

This is market analysis in its most useful form, because it comes from real buyers in your real market.

Step three: look at the competition as a shopper would

Spend an hour shopping your competitors online. For each of the three or four stores you lose deals to most, note the following.

You are looking for a weakness you can beat. If a competitor is slow to reply or thin on a segment you stock well, that is an opening.

Step four: find the growth pockets

Put the map and the competitor notes side by side. Growth usually hides in one of three places.

Pick one pocket to go after first. Trying all three at once spreads the effort thin.

Step five: turn the analysis into a campaign

Analysis only pays when it changes what you do. Write a one-page plan: the target area or audience, the offer, the dates and the number you will measure.

Social advertising is well suited to acting on this kind of finding because you can aim at specific towns and audiences. A Facebook Sales Event can focus on the exact areas your map showed as gaps, start conversations in Messenger and book set appointments. Willowood Ventures runs these for 600+ dealer partners, and the market review before each event covers your area, your inventory and your set appointment target.

Step six: check back in ninety days

Rerun the sales-by-postal-code count after a quarter. Did the gap area improve? Did the fast segment stay fast? Market analysis is a habit, not a single project. A short quarterly review keeps your buying and advertising pointed at where the sales actually are.

Frequently asked questions about automotive market analysis

Do I need to buy outside data?

Not to start. Your own sold and service records answer most questions. Outside registration or market share data can add detail later.

Who should do this work?

The GM or GSM with the used car manager and the marketing lead. The value comes from discussing what the numbers show.

What is the most common surprise?

How many sales come from a small number of postal codes, and how little the store sells in a town just down the road.

Related reading for dealers

See what an event would look like for your store

Willowood Ventures runs Facebook Sales Events for 600+ dealer partners and manages $4 million per month in social advertising. Dealers see approximately 800% average ROI, and 90% of them rebook. Book a demo and we will walk through your market, your inventory and your set appointment target.

Book Your Demo Call Now: 843-310-4108

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