Since the beginning of the microchip shortage, as well as other import and distribution issues through the global supply chain during the pandemic, the arise of “Preorder Programs” or “Custom Order Programs” at dealerships has risen in popularity. With demand at an all-time high across the board, the scarcity of selection has made the idea of customizing a desired vehicle, instead of settling for what might be available at the dealership, has taken the pressure off both the consumer and the dealership, allowing for consistent sales over the course of 2020 and 2021.
At the end of 2021, U.S. inventory levels were at their lowest since the global financial crisis of the late 2000’s, according to the analytics firm HIS Markit. Production has now slowly begun to increase, but until the restoration of semiconductor manufacturing in Asia has been completed, the chip shortage will continue to impact supply. However, while this is forecasted to improve somewhat towards the end of 2022, a full return to the “old ways” of automotive sales is not predicted to occur, especially with younger generations.
During the pandemic, consumers also found themselves shifting in large part to online shopping for all their needs, from groceries to larger purchases such as automobiles. As a result, they have become accustomed to waiting for delivery of their purchases instead of the instant gratification of driving off the lot that same day. For many consumers the idea of now waiting a few months for their custom vehicle to be delivered to them is not only reasonable, but understandable.
Preorder Programs save the consumer both time and money. No more lengthy, stressful trips to the dealership since most of the selection process is done either online or on an iPad or phone, with the assistance of a salesperson. Never again does a consumer have to pay the extra expense for features which they may never use – their vehicle is tailored to their exact specifications, no more or less.
If your dealership is still considering implementing a Preorder / Custom Order Program but aren’t quite sure how to structure and promote it, the Cajas Digital Agency would love to speak with you. We have helped our existing clients build successful programs with engaging, eye-catching social media marketing promotions to increase their overall sales. And we can do the same for you. Give us a call or visit us online today!