Gas prices have reached record-highs the past few months, leaving consumers forced to make more money-conscious decisions when it comes to their spendings. With most locations in the United States seeing five-plus dollars a gallon in fuel, many Americans are paying $100 and up to fill their car tanks today- higher than the 2008 recession prices. So, how will this, along with rising inflation, affect the automotive industry and car sales today? Will hybrid and electric vehicle sales skyrocket? Will smaller, fuel-economic car sales increase? What exactly is to come for new and used car sales?
While the future is unknown, some instances can be evaluated for our market today. Some experts are expecting the sales of hybrid and electric vehicles to rise higher than ever before. Contrary to filling up a gas tank, many hybrid and electric vehicles can be fully-charged for less than $15-$20, leaving this option appealing to many. This may be the case for some consumers, but it will heavily depend on supply and the ability to manufacture these vehicles. With the chip shortage still leaving effects on our automotive market, many manufacturers are still running behind on keeping up with providing product.
So, will sales of smaller, more compact cars rise during this period of inflated prices? It can be hard to say, but based on events in 2008, sales of larger SUVs decreased while fuel-efficient vehicles rose. It is predicted that similar events may take place in 2022, with SUVs sounding less-appealing to many consumers. But, with rising inflation many consumers are not as intended or persuaded to buy any new vehicles, compared to the last few years.
As auto dealers, it is crucial to be prepared for the current and coming changes to the market. Sales may look different compared to what we have seen in the last few years, but auto dealers can still capitalize on what is doing well in today’s market. It is essential to be flexible and make sure your advertising efforts are top-notch and pushing what will compliment consumers today. Whether that means electric vehicles, gas-efficient cars, or your niche in the market, your advertising should communicate value to today’s consumer. For a free market analysis brought to you from the best in automotive advertising, Call DeAngelis Advertising at 800.318.5047.