While every brand is unique, there’s a chance your dealership has one thing in common with auto dealers across the country: a sharp increase in consumer demand. In U.S. showrooms, people are buying makes and models almost as quickly as they can be made.
Empowered by a strong economic recovery and low-interest rates, consumers are racing to snatch up new and used vehicles. The growing interest in car buying has even led some dealers to contact former customers to see if they can buy back their vehicles to meet consumer demand for used cars.
Of course, this increased need has some benefits, especially financially. The U.S. Bureau of Labor Statistics indicates that prices for used vehicles were 40.5 percent higher in January 2022 than in January 2021. Transaction prices for new vehicles also shot up by 12.2 percent within that same timeframe. And according to a report by Edmunds.com, 8 out of 10 car shoppers paid over the sticker price in January compared to 2.8 percent last year.
Maybe your car dealership is seeing similar sales. With consumer demand increasing, it’s possible you’re speaking with more customers than ever before. But how manageable is that workload if you’re understaffed like many other car dealerships in the U.S.?
Labor shortages in 2022 are impacting success
It’s no secret. The Great Resignation is impacting many markets, including the auto industry. Around 57 percent of car dealerships are understaffed, and 80 percent expect workforce challenges to get worse in the short term.
Some states are faring notably worse than others. For example, there are thousands of open jobs in the auto industry in Alabama. And car dealerships in Michigan are seeing few people apply for open positions while new hires quit by lunchtime. But this quick turnover aligns with industry research.
The employee turnover rate in auto dealerships is 46 percent, more than double the average U.S. rate of 19.6 percent. For sales employees, the stats are even higher. The auto industry’s annual turnover rate in sales departments is a whopping 80 percent.
With many open positions and a high turnover rate, it’s hard to keep up with consumer demand for new and used vehicles, and you may have noticed this at work. Trying to sell cars while handling all of the DMV paperwork for recent transactions isn’t easy. You could easily spend all day and night in the office just filling out and submitting the documents for car buyers’ titles, tags, license plates, and more.
Obviously, decreasing this burden is possible with strong and consistent recruiting efforts. If you can onboard the right employees who won’t quit during their lunch break, it’ll be easier to meet consumer demand and fulfill all of the other responsibilities that come with your job.
But hiring top talent takes a while, and you need an immediate solution to your problem to sustain your business and keep a level head. With that in mind, the best option is to work with a private DMV services company.
Why you should use a private DMV services company
First thing’s first. A DMV services company will not help sell the vehicles on your lot. These organizations do not provide sales associates. However, they fill in the gaps by handling all of the DMV paperwork you or a sales associate would have to do after a transaction. That means half the battle—and specifically, the last half—can be outsourced to a reputable company.
With a private DMV services brand, the labor shortages you’re experiencing in 2022 will feel less stressful. While you and your team handle a packed sales volume, the representatives at a private DMV services company will manage the other important aspects of completing each transaction. They’ll get your customers’ tags, license plates, vehicle registration, and titles. A credible brand will know which documents to fill out and submit to acquire these necessities and will have everything to car buyers in a short timeframe.
All you have to do is find a reputable private DMV services company to handle these responsibilities. Then, you can put more hours back into your day to focus on sales and consumer needs.
Barry Risk Management is here to help
Barry Risk Management is a private DMV services company you can rely on to handle the paperwork you don’t have time to touch. Everything we do happens online, so you don’t have to visit our office to drop off any information. We prioritize convenience, and we already know you’re strapped for time, so you can get what you need by interacting with us online.
Only the first step requires a quick phone call. That way, we can better understand your needs and walk you through our process. During the call, you’ll speak with one of our representatives—all of them have over 30 years of experience in the DMV industry, so you’ll be in good hands with anyone on our team.
Just give us a call to talk through the specifics. You don’t need to continue sinking under the weight of labor shortages if you can make the rest of 2022 an easier and less stressful year. Let a private DMV service company like us take some of the load off by managing the paperwork from your increased sales volume.
For a deeper look into how our team at Barry Risk Management can help, contact us at 1-888-995-TAGS(8247).
