Jesse Toprak Archives | Outsell
This is the last full business week before Christmas, and for many businesses it won’t even be a full week with Christmas Eve and Christmas Day falling on the weekend. Besides preparing for the holidays and their own family traditions, car dealers are gearing up for that magical week between Christmas and New Year’s that oftentimes brings in some of their best sales of the year. This has been an interesting year for the automotive world. Coming off of a year of recalls in 2010, dealers were prepared to hit 2011 strong, but unforeseen events like the devastating earthquake and tsunami in Japan hurt production and vehicle availability in ways no one could have predicted. Joel Weinberger, owner of Continental Mazda, Audi, and Acura of Naperville dealerships, said buyers should expect dealers “to be very aggressive once customers hit the sales floor the week after Christmas.”
“With our brands, there were some supply problems earlier in the year because of the tsunami in Japan and also some flooding in Thailand that effected supplies of electronic components. Manufacturers still have sales targets they want to hit, and they are throwing everything they’ve got to make those goals.” READ MORE
As with most years, it is expected that many people are waiting for the year end sales to make vehicle purchases. In an article from Forbes, however, while the week between Christmas and New Year’s Day is usually a strong time for deals on closeout models, Jesse Toprak, Vice-President of Industry Trends for TrueCar.com, cautions consumers that dealer inventory may be lacking if they wait too long. To counter this, dealers need to do their best to promote what models they do have in stock and carefully consider their competitive offers. 2011 year end sales need to be attacked even more aggressively than previous years to come out ahead. In Ward’s “2011 Year in Review” for North America, Mark Fields, Ford’s president (The Americas), said:
“We are seeing signs of growth in the U.S. market. It’s moderate growth, ramping up more slowly than any of us would like or, in fact, expected earlier this year, but it is growth, and it leads us to believe that the U.S. economy remains in recovery mode.” READ MORE
Good luck with your year end sales, and Happy Holidays from all of us at Outsell! Photo by: Chris Jupin

Go Further This Holiday Season

It is no secret that car sales have been steadily improving, most notably in the past few months. As we near the peak time for end of the year sales, many consumers are already anticipating the largest surge in specials thus far since dealerships will be looking to purge remaining previous year models, like 2009 and 2010, at prices buyers hope will be drastically lower than a new 2011.

 

“We have high expectations for December sales as year-end clearance events should drive the industry to its best unit sales total of the year,” said Jesse Toprak, vice president of Industry Insight for TrueCar.com.

-Car sales surging as year nears end

 

In the Outsell Live Chat Center, while Black Friday saw a surge of consumers, the week between Christmas and New Years is often the busiest time of the year. But there are still some hurdles ahead, according to the previous article.

 

“Even with a strong close to 2010, there remains a moderate level of risk with automotive sales in 2011. Thus, J.D. Power’s forecast for next year has been adjusted downward to 10.4 million units for retail sales and 12.8 million units for total sales.”

 

The other change in consumer habits is the tendency toward buying American, possibly due to the large amount of vehicle recalls in the past year that, while spanning most major car companies, began with Toyota’s high-profile accelerator recalls.

In this difficult economic time, consumers are also being much savvier as shoppers, researching online more vigorously than previous years.

SmartMoney posted an article in August for “7 Strategies for Model Year-End Car Shopping”. Dealerships can use SmartMoney’s tips for themselves to better tailor their specials:

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