The Future of the Automotive Industry in 2024

future of automotive industry

In 2023, the automotive industry saw increased car prices, reduced inventory, high interest rates, an ongoing chip shortage, and a bigger desire for used vehicles. But it’s the start of a new year. With it are new possibilities on the horizon.

There are many predictions about the future of the automotive industry in 2024. Some are based on opinions, while others are based on surveys. You may have already read a few ideas, but we’ve compiled some of the best predictions in case you haven’t seen the automotive forecast. For insight into what the future of the automotive industry will look like this year, check out the four predictions below. 

1. Vehicle Supply Will Increase, Helping Consumers

According to Cox Automotive, new-vehicle supply will rise, causing dealerships to offer discounts and more incentives. This prediction is good news for car buyers. The market may finally return to normal. In fact, Cox Automotive thinks there will be three times the number of vehicles available as there was during the chip shortage. 

But for auto dealers, this prediction means transaction prices for new cars will likely decline. If dealerships offer more incentives and discounts, transaction prices won’t be as high as they were in 2023. However, they won’t be significantly low since the incentives are unlikely to exceed 10% of transaction prices, which was prevalent in 2019. 

Also, auto dealers can expect sales to increase because car buyers will be attracted to the return to normalcy as well as the discounts and incentives. Admittedly, the sales increase will be small, but it’s better than nothing. The new-vehicle market will increase by less than 2%, reaching $15.7 million in sales. 

Used vehicles will also get more attention from consumers, but the growth will be minimal. Cox Automotive thinks this particular market will grow by less than 1%, with dealerships selling 36.2 million used vehicles in 2024. Around 19.2 million of those vehicles are predicted to sell through retail channels. 

2. Cybersecurity Will Become a Legal Requirement 

In today’s digital world, cybersecurity is a popular topic in every industry. In 2024, however, the automotive market will put more attention towards beefing up its cybersecurity. Out of 200 c-suite executives recently surveyed, 64% believe the industry’s supply chain is vulnerable to a cyberattack. Forbes predicts the market will try thwarting attacks by consolidating computer networks into “super-computers owned, monitored, and maintained by the car manufacturers.” But what’s sure to make a difference, according to Wards Auto, is the UN Regulation No. 155 on cybersecurity. 

In July 2024, the regulation will require the entire automotive value chain to have a cybersecurity management system if they want to participate in the EU’s car-buying market. That means everyone from sub-suppliers to suppliers to OEMs must implement a system that protects them in the digital landscape. This regulation will change the automotive industry significantly. 

Currently, the market uses another framework to build a secure product, but they’re not required to do so. The framework is simply a standard, not a legal demand. But Regulation No. 155 changes things; it’s a non-negotiable for automakers and applies to software, IP components, and any relevant system. Fortunately, the auto industry can prepare for the new regulation by conducting a threat analysis and risk assessment. 

3. Online Car Buying Will Include Amazon

Not only is Amazonification shifting the auto industry, but Amazon’s recent partnership with Hyundai is shifting the market, too. In 2023, the online retail giant and automaker became official partners to bring Hyundai vehicles to Amazon. Now, Hyundai dealerships can meet potential customers at the biggest online marketplace in the world. 

The partnership is the first of its kind. No other dealership offers its customers this convenient option, so it’s bound to attract some car shoppers. However, the program will start small. It’ll only include 18 Hyundai dealerships, but a more extensive rollout will likely happen in the second half of 2024. Customers who buy from a participating dealership can either have their vehicle delivered or pick it up on the lot. 

Auto dealers everywhere should pay attention to how this partnership and car sales unfold. With 163 million U.S. consumers subscribed to Amazon Prime and many product searches starting on Amazon, the online retailer could be an untapped market for other dealerships. As an article on CBT News puts it, “a third of all new car sales could originate on Amazon.com” in a few years. 

4. Convenience Will Reign Post-Transaction

One of the things consumers want from dealerships is convenience. This is why things like online car buying and partnerships between Amazon and Hyundai exist. S&P Global Mobility even suggests that 64% of U.S. car shoppers bought a vehicle online in 2020 because of convenience. The pandemic is likely a reason for the high percentage, but its effects have remained. 

People want an easy car-buying process every step of the way. From researching to test driving to financing, and finally, to legally owning a vehicle, consumers desire a straightforward route. However, the most difficult phase is the last one. Legally owning a vehicle is riddled with long wait times and paperwork because the post-transaction process has relied on outdated methods. Thankfully, in 2024, this will change. 

In an effort to improve the last step, dealerships will increasingly look to private DMV services companies. These businesses provide DMV services so that sales teams don’t have to go through the DMV, which suffers from long wait times. At Barry Risk Management, we’re one of the best private DMV services companies. We help dealers all across the U.S. get their customers’ tags, titles, license plates, and registration. We also do it quickly because our online platform makes it easy to communicate and gather the appropriate documents to move things along. 

More dealers will start to utilize private DMV services companies to increase their sales team’s productivity and offer the convenience car buyers seek. Those who start working with DMV services companies at the beginning of the year will also have a competitive advantage over dealers down the street and in their state. 

The Automotive Forecast Predicts Sunshine

In general, the future of the automotive industry in 2024 looks promising. The new and used car markets will likely grow, even if it’s slow. Automakers will also enhance their cybersecurity if they want to participate in the EU car market. Additionally, dealers may have the opportunity to sell their vehicles on the biggest online marketplace. And they’ll score brownie points as they offer convenience at every stage of the car-buying process, including the post-transaction phase. With all these positives, automakers and dealers should look at the future with optimism.  

To start 2024 off strong, call our team at 1-888-995-TAGS(8247) to learn how to offer your customers more convenience.

How Enhancing Your Online Car Buying Process Increases Your Auto Dealership Sales

auto dealership sales

Whether you believe it or not, your band’s success relies on you having a great online car-buying process. Without it, your auto dealership sales will decrease significantly, primarily because car buyers don’t just shop in person. They shop online as well. 

According to a recent report by Capital One, 82% of consumers prefer a hybrid car buying experience that mixes online and in-person elements. For example, before heading to a dealership, car buyers prefer to take multiple steps online—44% want to research vehicle information, 41% want to ensure a price is fair, and 40% want to choose their preferred make and model. Only after taking those steps do 47% of car buyers want to come in person to see and test drive a vehicle.

So, while you shouldn’t close your brick-and-mortar operations any time soon since they’ll still receive foot traffic, you should make sure your online car-buying process is up to par, especially since consumers want to use it, and it could impact your auto dealership sales. 

The Benefits of Enhancing Your Online Sales Process 

Enhancing your dealership’s online car buying process provides multiple ways to increase your sales and long-term success. For example, if you give consumers the online sales process they want, you’ll experience five specific advantages that all lead to more customers. 

1. More customer data 

When you provide car buyers with a way to shop digitally, you can easily track their behavior and online journey to gather more customer data. With additional insights about your target audience, you’ll gain a deeper understanding of the vehicles your target audience likes and the paths that led them to your website. Knowing those two things will allow you to refine your inventory and marketing tactics to generate more sales. 

2. An improved reputation 

One of the best things about having a great online car buying process is that it typically includes a way for people to leave reviews. Car buyers want to read others’ feedback when they’re researching dealerships, and when they have an opportunity to do so, it informs which dealership they’ll visit. If yours has positive reviews, you’ll have no problem attracting more customers. 

3. A wider pool of potential customers

Over five billion people are on the internet, which means you don’t have to rely on car buyers within a five-mile radius to generate sales. You can access a wide pool of potential customers if you’re open to enhancing your online sales process. Of course, that doesn’t mean every internet user looking for a car will be in your target audience. 

Your dealership will still appeal to people who live in the same state your business is in. But instead of relying on those in your business’s community to generate sales, you can reach car buyers in neighboring counties and cities if you have an online sales process that attracts and builds relationships with them. 

4. Increased credibility 

Since car buyers like to research online before visiting a dealership, you need to have content on your website that answers questions and provides education. With helpful website content, you’ll not only offer the insights consumers are looking for but also enhance your credibility in the process. 

One of the top three reasons for producing content is to establish credibility. People have a hard time trusting businesses—misinformation, scams, and greed have left consumers unsure of which companies deserve their hard-earned money. People only want to buy from brands they trust, and the high-quality content in your online sales process will pave the way to establishing that trust so that car buyers think you’re credible enough to purchase from. 

5. An efficient sales process 

Developing the online side of your sales machine will make the car buying process for consumers significantly more seamless. Instead of having to call your dealership or visit in person for every inquiry, potential customers can get some of the information they need online—and they will appreciate that convenience. Additionally, if you have digital tools to streamline transactions, car buyers will be even happier. By making the final steps of their journey easy and simple, consumers will drive off the lot content and willing to recommend your business. 

how to increase your auto dealership sales

The Road Boosting Auto Dealership Sales

If you want to experience the benefits of a great online car-buying process, you need to incorporate the right tools and strategies. Specifically, you must have three components to create a process that increases your auto dealership sales.

1. Content Marketing Strategy

This piece is critical. With almost half of car buyers researching vehicles online, you can’t afford to have a website or social media account void of content. You need blogs, buying guides, FAQs, images, and vehicle information on your site and social media platforms. That way, car buyers have the foundational insights they need and want to take the next step of visiting your dealership. 

2. Customer Relationship Management (CRM) System

You want to capture as many online leads as possible and know where they stand in your car-buying process—and a CRM will help you do both. By having a vault of leads, you’ll have more opportunities to follow up with potential customers and nurture relationships to the finish line. By knowing the stage potential car buyers are in, you’ll know how to nurture those relationships and which information to provide to help potential customers take the next step. 

3. An online DMV platform

After a transaction, you must ensure your customers get their titles, tags, and vehicle registration. This step usually takes a while because you have to work with the DMV. However, you can cut down the time by using an online DMV platform, which companies like ours offer. 

At Barry Risk Management, you don’t have to interact with a slow-paced DMV to get what your customers need. Instead, you can rely on our representatives to use a propriety online DMV platform to quickly and efficiently get the documents your car buyers require. We work with dealerships in every state and know the DMV rules across the U.S. We have the experience needed to get car buyers’ legal forms in no time. And when your customers get their titles, tags, and vehicle registration in a timely manner, you can guarantee they’ll end their buying process just as happy as they started it, leading to rave reviews about your dealership that attract more customers. 

Want to use an online DMV platform to enhance your online car buying process? Contact our team at 1-888-995-TAGS(8247)! 

5 Dealership Challenges & How to Overcome Them

dealership challenges

It’s an exciting time to be an auto dealer. Research suggests that the U.S. automotive dealership market is expected to hit $57.3 billion, resulting in a compound annual growth rate of more than 4% over the next five years. This prediction isn’t surprising. 

The industry has seen significant success, given the recent demand for new and used cars and shoppers’ excitement about new technologies like electric cars, connected cars, and autonomous vehicles. However, while the growth and advancements in the auto industry are compelling, dealerships still experience many hurdles to success.  

The top dealership challenges 

These days, running a dealership comes with unique problems. Even if your business is currently hitting or exceeding sales goals, it may not last long if you can’t overcome the top dealership challenges affecting the industry. To put your company in a position for long-term success, you need to take steps to mitigate five dealership issues. 

1. Increased competition

With online-only retailers challenging brick-and-mortar dealerships, competition is fiercer than ever. For your business to experience success, you have to find unique ways to engage car shoppers who are interested not only in the dealerships down the street but also in the ones dominating online. Consumers have options everywhere, and contending for their attention requires you to have a competitive edge. 

2. Reduced dealer loyalty 

Increased competition means decreased dealer loyalty. Over the last five years, dealer loyalty has decreased by 1.6%, even though brand and manufacturer loyalty only reduced by 0.2%. If you’re wondering whether reduced dealer loyalty genuinely impacts business, remember that loyal customers usually bring the highest ROI on sales and trades. 

3. Demand for digital communication

The days of visiting a physical dealership or picking up the phone solely to communicate with sales reps are gone. Car shoppers want the option to communicate digitally. They want a contactless experience that allows them to ask questions and receive updates. So if your dealership still requires customers to talk on the phone or sit at your desk to get information, your business may be in trouble. 

4. Changing shopping behavior

Another dealership challenge is today’s new shopping behavior, an issue primarily stemming from millennials. In 2021, millennials became car dealers’ biggest pool of potential customers, which was surprising to most in the industry. People thought millennials weren’t interested in driving and that they preferred walking, biking, or ride-sharing—but the reality was that millennials simply preferred to shop differently. 

Instead of immediately visiting dealerships to spend hours considering options and negotiating, millennials like to utilize online tools and research to determine which vehicle may be the best. Some millennials are open to even completing the entire car sales process online. 

5. Inefficient after-sale process

For consumers, buying a car is only half the battle. Unless you do it for them, they still have to take many steps to legitimize the transaction, which they must do at the Department of Motor Vehicles (DMV). Regardless of who takes the lead, finishing the after-sale process in a timely manner is often impossible. Even though we live in a digital age, phone calls, in-person visits, complex forms, and long wait times still characterize the after-sale process. 

Overcoming common dealership issues

If you want to set your dealership up for success, you need to have the ability to overcome the top five dealership challenges. Of course, many solutions can help you achieve that, but if you prefer to start with one, here’s an idea: work with a private DMV services company like our team at Barry Risk Management. 

As a private DMV services company, we directly streamline and quicken the after-sale process by getting your customers’ tags, titles, license plates, and vehicle registration all online. That means you don’t have to do any legwork—we’ll take care of that for you. All we’ll need is a little information about your customer and their purchase, which you can give us online. Then, we’ll take steps to get the documents your customers need to legitimize their transaction. 

Also, it doesn’t matter where your customers live or your dealership’s location. Our team has over 30 years of experience in the DMV industry and knows what each U.S. state requires for car buyers to retrieve their tags, titles, license plates, and vehicle registration. With our knowledge and online capabilities, your customers will have what they need quickly and with little to no hassle. 

The best part? Our DMV services can help your business overcome the other four dealership challenges. Our efficient process and digital platform will give your team the following: 

  • A competitive edge: Many dealerships still use a traditional approach to interacting with the DMV. If you transition into using a more modern approach, you’ll differentiate your dealership from competitors. 
  • Increased brand loyalty: When customers know you can make their car buying process easier, they’ll be more likely to keep coming to your dealership instead of considering other options. 
  • A digital tool for communication: Since our team does everything online, we don’t need to see you or your customers in person. We also don’t need to speak on the phone if that’s not preferred. Our team communicates digitally and uses an online platform to get DMV tasks done quickly, meeting the new need for digital communication. 
  • A better experience for car shoppers: With car shoppers preferring digital experiences, you’ll stand out by offering a way to get their tags, titles, license plates, and vehicle registration online. Consumers will think you understand their shopping behavior and be more inclined to buy from your dealership instead of one that hasn’t aligned with their preferences. 

By working with our team at Barry Risk Management, you’ll receive the advantage your company needs to start overcoming the dealership challenges impacting business owners. That advantage will set your brand up for long-term success so that your dealership continues to grow. So, don’t hesitate to reach out. Call us to help lay the foundation for your company’s victory. 

Contact one of our representatives at 1-888-995-TAGS(8247) to develop a streamlined after-sale process that also helps you overcome other dealership challenges!

5 Dealer Tech Tools to Have in 2023 to Boost Sales & Marketing

The dealerships you drove to in the early 2000s are not the same ones you approach today. As time has passed, dealerships have started operating differently, and the most successful ones have focused on shifting to the tune of consumers’ increasing reliance on technology. 

Today’s notable dealerships are transitioning their sales online, developing intuitive, well-designed websites, joining social media, creating digital content, and quickening their DMV processes. These changes primarily appeal to millennials, who are becoming the largest demographic of U.S. car buyers. Dealerships that want to attract this generation know that millennials don’t shop for everything in person. This demographic is not as likely to drive to a dealership lot, find a car, and haggle over price solely in face-to-face interactions. 

Millennials are tech-savvy, and the generations after them are well-acclimated to the digital world. So, if your business wants to succeed with these new types of car buyers, you must operate things differently. Instead of hinging all your success on an in-person model, it’s time to implement dealer tech. 

What is dealer tech?  

Dealer tech is short for dealership technology, which is software applications and online tools that dealerships can use for their retail operations. Many types of dealer tech tools exist and typically fall into three categories: 

  • Office and General Management: This dealer tech includes payment platforms, dealership intelligence applications, dealership management tools, and human capital management solutions. The staff members who’d benefit the most from these technologies include dealership owners, general management, CEOs, CFOs, office managers, and accounting and billing employees. 
  • Marketing and Sales: The dealer tech in this category focuses on helping dealerships enhance their sales and marketing initiatives. Some common tools are CRMs, advertising systems, social media, online content, and dealership engagement tools. The primary users of this tech include CMOs, CROs, general sales managers, sales reps, digital marketers, customer experience managers, and leasing consultants. 
  • Fixed Operations: In this category, the dealer tech ranges from mobile car care to tire management tools to service management suites. Some team members who’ll use these solutions include service directors, shop foremen, fleet managers, parts directors, logistics managers, collision center directors, service technicians, and body shop clerks.  

Having dealer tech in every category is wise, especially if you run a large operation. Ideally, you want every department to feel equipped and empowered to use technology to help your dealership grow. However, for the purposes of this article, you’ll learn about the marketing and sales tools you should incorporate into your dealership’s workflow.

Dealer tech tools for sales and marketing 

Various types of dealer tech can enhance your sales and marketing, and you’re welcome to try as many as you find beneficial. But keep in mind that biting off more than you can chew may be overwhelming, especially if your sales and marketing teams aren’t used to leaning on specific tools. 

So, below is a list of just five solutions you should implement throughout 2023 to stay relevant and appeal to most car buyers. To make things easier, adopt one to two tools per quarter to ease your team into the changes. That’ll also leave room for learning curves, which is especially important to give your employees. 

Keeping all that in mind, here are five sales and marketing dealer tech tools to start using. 

1. Social Media 

There are 4.7 billion active social media users, and guess what? That number could hit 5.8 billion in 2027. Why should that matter to you? It’s simple—if you’re not actively engaging with car buyers on social media, you’re missing a huge opportunity to attract and convert leads. 

You can find car shoppers on Facebook, Twitter, Instagram, TikTok, and Pinterest. And if you create content that’s visually appealing, engaging, and relevant to them, you’ll have no problem getting potential customers to browse your dealership’s inventory. 

2. An optimized, eye-catching website 

Google found that 92% of car buyers research online before making a purchasing decision. That means your website must be optimized for search engines to ensure it ranks and is easy to find in search results and Google Maps. Without an optimized website, people won’t organically discover your dealership and will simply click on your competitors’ sites on the first page of search engines. So, take time optimizing your website with target keywords. 

Additionally, make sure your site is intuitive and well-designed. That way, when people discover and visit it, they’ll browse instead of leaving after a few seconds. An eye-catching website should have high-quality photos, persuasive call-to-actions, incentives, updated pricing, and effective inventory filters. 

3. Website and Content Strategy 

Every brand needs great content to outperform competitors, and yours is no exception. With a majority of car buyers preferring to research online before purchasing, you need to have resources that aid in their decision-making process. 

Blog content, videos, email marketing, buying guides, testimonials, and in-depth vehicle information are valuable resources that car buyers will appreciate and utilize. Your ability to provide them will determine whether you get or miss a sale. 

4. Online DMV platform 

It’s no secret that most people don’t like the DMV. While going is a necessary evil, the DMV consistently has long lines, lengthy wait times, and many forms to find and fill out. If you want to get license plates, tags, or vehicle registration for your customers, it could take weeks as you try to gather all the necessary documents and go back and forth with DMV representatives. 

Thankfully, there’s a way to simplify things: you can use an online DMV platform to meet your customers’ DMV needs. The good news? You don’t have to build anything yourself. All you have to do is outsource your DMV-related tasks to a private DMV services company like Barry Risk Management. 

We have an online platform that allows us to help dealerships retrieve their customers’ license plates, tags, and vehicle registration. We work with dealerships all around the U.S. and gather and fill out the appropriate forms to ensure car buyers get what they need in a timely manner. That means no more long lines, wait times, or energy spent running in circles trying to get everything your customers need. When working with a private DMV services company like Barry Risk Management, you can rely on professionals who will use an online platform to make things easier and faster. 

5. A CRM System 

One of the most integral pieces of any successful sales and marketing initiative is an integrated CRM. With this dealer tech, you can capture all of your leads and track follow-up and lead engagement reports. This insight will let your sales team know which car buyers to circle back to and which resources your marketing team should create to help sales reps’ interactions go smoothly. 

However, make sure your sales team actually uses the CRM daily to log reports and customer interactions. The last thing you want to do is miss out on critical insights that could result in a sale. 

Innovate to stay keep up

Dealerships no longer have the luxury of solely relying on face-to-face interactions to close deals. With tech-savvy generations entering the car-buying market, your dealership must use sales and marketing tools to attract customers and compete with brands that are readily adopting new technology. Only then will your business be in a position to thrive long-term and consistently generate sales. 

Want to rely on an online platform for your DMV needs? Contact Barry Risk Management now at 1-888-995-TAGS(8247).

How Dealerships Can Move This Part of Their Car Sales Online

car sales online

What used to only happen in person is now occurring online at a fast pace. Over the past few years, car dealerships have experienced an increase in online transactions, with 30% of U.S. new car sales taking place digitally in 2020.

This shift towards online purchases correlates with consumers’ recent shopping habits. Studies suggest that 59% of car buyers spend time researching vehicles online, likely a reason automotive executives expect online car sales to reign in the near future.

According to a poll conducted by Automotive News, 46% of automotive executives predict a significant increase in direct-to-consumer sales by automakers, pushing typical franchised dealerships to the side. The poll also suggests that 78% of executives think most new car sales will occur online by 2030. 

If you’re like other dealers, you’re either prepared or preparing for this major shift towards online car shopping, especially if you want to maintain a successful business. Maybe you’re creating digital ads instead of traditional ones, sprucing up your website instead of buying a new lot, and hiring a social media manager instead of another salesperson. All these steps are great and necessary if you want to compete with other car dealers online, but there’s another step in your sales process that should be digital: your DMV strategy. 

Handle Your DMV Needs Digitally 

learn how to do your car sales online.

Once you complete a car sales transaction, what happens next? You have to do the paperwork for the DMV to ensure your buyers get their tags, license plates, registration, and more. Finding the applications for these materials and filling everything out is always a hassle, and failing to do so quickly can slow down your ability to finalize transactions. 

That’s why you need to consider moving your DMV process online. Instead of compiling all of the necessary paperwork, filling it out by hand, and submitting it in person, you should make this step entirely digital. Doing so will provide multiple benefits, including the following. 

1. Improves the customer experience 

There are many reasons consumers are shopping for vehicles online. One of the biggest is that it offers a better experience. Shopping for cars online means people don’t have to plan a trip to the dealership, experience long wait times, deal with pushy salespeople, or get flustered by large crowds. Searching for cars digitally also provides a quick and easy way to look at different options, find the best prices, and customize vehicles. 

But this excellent customer experience can come toppling down if buyers have to wait a while for their tags, license plates, and registration because you’re doing things the traditional way. Handling DMV needs online ensures buyers get what they need quickly to continue having a great customer experience. 

2. Provides convenience

Another benefit of doing DMV paperwork online is that it’s convenient for you. Taking the digital route means you no longer have to suffer through long lines at the DMV, experience constant back-and-forth with representatives, or try to stay organized as you manage tons of documents. An online DMV process is smooth and hassle-free if you approach it correctly. 

3. Boosts productivity   

Do you want to increase your productivity to have more time to close deals? If so, handling DMV paperwork online can help. You can significantly cut the time it takes to gather material for the DMV by doing everything digitally. What used to take weeks could now take days. And having more time on your calendar will allow you to focus on other important tasks like finding creative ways to increase sales online. 

How to handle DMV paperwork online

If addressing your DMV needs digitally is the next step you must take as car sales shift online, it’s not hard to make this happen. In fact, all you need to do is work with a private DMV services company like Barry Risk Management. 

We handle dealers’ DMV paperwork, so they don’t have to worry about this task. And we do everything digitally. From gathering the paperwork to filling it out, everything we do happens online to ensure dealerships give their customers what they need in a timely manner and maintain a high level of productivity. 

Tons of dealerships across the nation have outsourced their DMV tasks to our team. We have over 30 years of experience in the industry and understand the DMV rules in every state. Because of that, we have the knowledge to ensure any and every dealer provides the proper material to their customers. 

So if you want to join the league of dealers who trust us with their DMV needs, reach out to our team. One of our representatives will walk you through our online process and answer any questions you may have. Afterward, we’ll start taking care of your DMV paperwork digitally so that every step of your car sales process is online, leading to a better experience for you and your customers. 

Contact us at 1-888-995-TAGS(8247) to start shifting your DMV strategy online!

The Top Tasks to Outsource in The Car Dealership Sales Process

car dealership sales process

If you’re an auto dealer, there’s one thing you know for certain: the industry is experiencing unique challenges in the sales process. Most of these challenges aren’t easy to solve. Some even require significant shifts in how your dealership does business. However, if you want to be successful in today’s competitive environment, you need to be able to solve your organization’s most pressing sales concerns, and that can only happen if you have time to address them. 

But how can you get that time? The only way you typically can: you must outsource specific sales-related tasks to create an opportunity to handle others. This idea may sound scary initially, especially since sales are a pivotal part of your business, but don’t worry. The tasks we recommend outsourcing happen after you’ve completed a transaction, leaving the beginning of your car dealership sales process intact. 

If you’re wondering what tasks we’re referring to, we’ll get to them soon. But first, let’s dive deeper into the sales challenges you’re facing that make it necessary to outsource certain responsibilities.

Low inventory remains a top concern

The first problem your dealership may be experiencing is low inventory. With the ongoing shortage of semiconductor chips, manufacturers have had trouble producing new vehicles, and it’s left dealerships like yours in a bind. In fact, many dealers can barely get 1 million vehicles in stock when they’re typically used to having 3 million cars in inventory. 

Some dealerships are handling this problem by reducing sales incentives and increasing prices. You might even be doing the same things. However, while these responses are normal and understandable, they don’t prevent consumers from becoming frustrated during the car dealership sales process. 

Car shoppers are competing for fewer options while facing significantly higher prices. In December 2021, the average price for a new vehicle cost more than $47,000, which is $12,000 over the average price at the beginning of 2020. These high prices, along with increased competition, mean you have to educate consumers on why there’s low inventory while trying to ease their frustration to ensure you don’t permanently damage the relationship. 

Even if shoppers can’t buy a vehicle immediately, the last thing you want to do is let them walk away angry and unwilling to work with you once inventory increases and prices stabilize. So spending ample time managing consumer relationships is essential for long-term success. 

Navigating a different sales process 

navigating a new car dealership sales process

Outside of managing consumers’ emotions and low inventory, your team also has to learn a new sales process. Before the pandemic, your salespeople were primarily responsible for test-driving vehicles with walk-in customers and delivering compelling sales pitches face-to-face. But today, many customers are shopping for cars from the comfort of their homes, meaning your sales team has to shift their efforts to the digital world. 

If your dealership wants to make sales, your team has to focus on answering online requests quickly and delivering vehicles to buyers who bought their cars online. Doing this requires your salespeople to become more analytical and tech-adept than ever before. Additionally, they’ll have to navigate a new consumer journey and discern which digital touch points will allow them to make the most impact. 

The learning curve can be steep, so your sales team will need to spend sufficient time understanding it. Otherwise, your dealership could face more challenges than necessary.

Outsource tasks to address the big issues

With low inventory, consumer frustration, and a new sales process for your team to learn, you can’t afford to focus on tasks that can easily be outsourced. Instead, your full attention must be on the most significant obstacles affecting your business. So, to make time for what matters most, you should outsource the DMV responsibilities in your car dealership sales process.

These responsibilities include the paperwork you have to fill out to get a buyer’s tags, vehicle registration, license plates, and more. Tasks like these are easy for private DMV services companies. These types of organizations can gather the necessary paperwork to turn it in so that your customers get what they need in a timely manner. 

The only essential factor to consider is the DMV services company you work with—some of these organizations have minimal experience in the DMV industry. Additionally, many of them don’t know which forms to complete for certain DMV services. However, a reputable company will know all the ins and outs of getting tags, vehicle registration, license plates, and more, making it easier for you to trust outsourcing these tasks to them. 

A reputable company for your DMV Needs

If outsourcing your DMV tasks will free up your time and benefit your dealership, you don’t have to look far for a reputable company to help. In fact, our team at Barry Risk Management can step in to handle all of your DMV-related responsibilities. 

We have over 30 years of experience in the DMV industry and work with dealerships across the U.S. Even better, we do everything online, so you don’t have to visit our office to get the help you need. You can remain at your dealership to focus on increasing inventory, maintaining customer relationships, and conducting sales online. 

So, give us a call at your earliest convenience. One of our representatives will answer any questions you have and start completing the DMV paperwork for your most recent customer. 

Dial 1-888-995-TAGS(8247) to get in touch with one of our representatives at Barry Risk Management!

Where to Find Great Auto Dealership Insurance Quotes

learn how to find auto dealership insurance quotes

Running an auto dealership is hard. Not only do you handle everyday business tasks that come with owning a company, like managing people, hitting sales goals, and marketing your services, but you also have to fulfill a responsibility that some companies never worry about: protecting your inventory. 

Without working, undamaged vehicles on your lot, you can’t make sales. And if you can’t make sales, you can’t make money, which will quickly lead to a sign that says permanently closed on your door. That’s why protecting the vehicles on your lot should be your utmost priority, so getting dealership insurance must be a non-negotiable. 

But where can you find excellent auto dealership insurance quotes? 

After all, the last thing you want is to overspend on outrageously priced policies or wait a long time to even receive coverage. So how can you get what you need quickly and for a reasonable rate? This article will provide the answers you seek. 

What is auto dealership insurance? 

Before you start looking for auto dealership insurance quotes, you need to know what you’re paying for and why it matters. This insurance is all about protecting your company’s financial interests. Achieving that requires there to be multiple policies, which is why you’ll find coverage options that safeguard everything from expensive replacement parts to your employees and customers.

With so many available options, the most important thing is to find insurance that meets your dealership’s specific needs. While some policies are great for every auto dealer to have, you may find it beneficial to get additional coverage if your needs differ from a dealership in another city or state. 

Different types of auto dealership insurance

get the best auto dealership insurance quotes

As mentioned above, there are certain types of coverage that every auto dealer should consider. These policies create a firm foundation for your company to stand on, so having them in place will help guarantee your success. Keeping that in mind, here are five types of auto dealership insurance you may want to buy. 

1. General Liability Coverage 

This insurance offers diverse protection. It includes coverage for property damage, bodily injury, libel, misleading ads, copyright infringement, slander, and more. General liability insurance also covers any settlement expenditures, legal defense costs, and medical expenses from your business operation. 

2. Errors and Omissions Coverage

As an auto dealer, you’re providing a service. Whether you’re selling new or used vehicles, part of your job is to provide professional advice to potential customers, making it crucial to have errors and omissions insurance. It’ll cover any work your company didn’t provide correctly, including omissions that could hurt your customers and missed steps or errors you made while completing a service.  

3. Business Income Coverage

Depending on the location of your company, business income insurance may be essential for your auto dealership. It covers any lost income from a natural or man-made disaster. For example, maybe you need help covering payroll expenses because a hurricane hit your car lot. In that case, business income coverage will provide what you need. 

If you live in an area prone to natural disasters—like forest fires, tornadoes, or floods—make sure you have this insurance in place. And even if you don’t live somewhere that encounters frequent natural calamities, still consider getting this coverage because you never know when something may happen. 

4. Garage Keepers Liability 

If your dealership services people’s vehicles, you need to have garage keepers liability. This coverage will cover the costs associated with any damage that your customers’ vehicles obtain while in your possession, care, control, or custody. It’ll also include coverage for vandalism, theft, collision damages, or fire damage that may happen at your dealership and affect your customers’ motor vehicles.

5. Employment Practices Liability Insurance (EPLI)

Another essential insurance policy that you should have for your dealership is one that focuses on employees. With employment practices liability insurance, you’ll have protection for things like discrimination, wrongful termination, retaliation, harassment, and other employment-related issues. 

What determines your auto dealership insurance quotes?

Now, for the fun stuff. When you’re looking for auto dealership insurance quotes, several factors will go into the price you receive. For example, here’s what you can expect to influence your rate: 

  • The location of your dealership, specifically the state it’s in
  • The size of your dealership, including the square footage, number of vehicles for sale, and overall business value 
  • The number of insurance policies you get
  • The types of coverage you purchase 
  • The number of employees you have

Once an insurance provider knows this information, they’ll give you a quote. But keep in mind that some providers will take a while to give you a price because they have complex, outdated processes. Other times, providers will give you an auto dealership insurance quote that’s inaccurate and all over the place because they don’t have enough industry experience.  

Get great insurance quotes through Barry Risk Management

If you want a quote that’s clear, accurate, and 100% reliable before you even commit, you need to go through our team at Barry Risk Management. While we specialize in getting titles, tags, and DMV-related paperwork done for dealerships, we also provide fast auto dealership insurance quotes that are rock-solid and reasonably priced. 

All you have to do is speak with one of our representatives. Our team has over 30 years of experience in the industry, so you’ll be in good hands. And once you answer a few questions, you’ll have an insurance quote and policy that you can implement within minutes. Even better, if you have additional needs—like helping your customers get titles or tags—you can chat about that during the call as well.

Barry Risk Management is your one-stop shop for multiple tasks you need to complete but don’t have the time or know-how to do on your own. So, call us today to get started. 

Ready to get an auto dealership insurance quote and more? Contact Barry Risk Management for help by dialing 1-888-995-TAGS(8247). 

What is Dealership Insurance?

what is dealership insurance

Starting any type of business is challenging, but it’s especially difficult when your business requires you to look after employees and a large inventory. For example, perhaps you own a dealership. In this scenario, you have to consider multiple factors to set your company up for success, and one of those factors is dealership insurance.  

This piece of the puzzle is a crucial part of your business plan. Running a successful dealership doesn’t solely hinge on the sleek motor vehicles on your lot and the great salespeople on your team. If you want your dealership to thrive, you need insurance. 

But what exactly is this type of insurance, and how much does it cost? While it’s not easy to find these answers online, that doesn’t mean the answers aren’t important. In fact, you should know everything there is to know about dealership insurance before you try to get it. That way, you understand what you’re looking for and know what to expect as you search for it. 

Do you need dealership insurance? 

It’s a common misconception that buying insurance for your business is an added cost that comes with little to no benefits, but that thinking couldn’t be further from the truth. There are long-term advantages of having insurance for your dealership. With so many things out of your control, your company is always at risk and easily exposed to various financial obligations and liability costs. 

For example, what if someone breaks into your showroom and steals the most precious car in your collection? Or, what if your inventory burns because a fire happens in your stockroom? Even worse, what if you’re showing a customer around your dealership, and they slip and fall? 

All of these scenarios are ones that you can’t prevent. They can happen at any time and any point of the day, and all you can do is react appropriately. If you want to have a good reaction, you need dealership insurance. With it, you won’t get overwhelmed and discouraged because of bad events.

Which dealerships need insurance? 

Outside of the benefits of auto dealer insurance, you may be wondering if your specific dealership needs coverage. After all, there are many types of dealerships, so is insurance only applicable to a certain few? 

Honestly speaking, the answer is no. Auto dealer insurance applies to any garage-related business. For example, you can get dealership insurance if you have one of the following companies:

  • New and used car dealership
  • Motorcycle dealership
  • Motor vehicle dealership
  • Recreational vehicle dealership
  • Powersports dealership
  • Boat and heavy equipment dealership
  • Trailer dealership
  • Auto transmission repair and glass installation
  • General auto repair and service
  • Truck repair and body installation
  • Auto body shop and restoration
  • Auto detailing shops

Any of these businesses can benefit from having dealership insurance, so if you have one of these companies, don’t hesitate to get a policy. 

Types of dealership insurance 

types of dealership insurance

When you decide to get auto dealer insurance, you should seek coverage that’s personalized to your dealership. Luckily, there are many types of dealership insurance that you can choose from, and the one you move forward with should factor in the number of employees you have, the state your business is in, your dealership’s size, and your financial capability.  

1. General Liability 

This type of coverage is the foundation of all liability insurance. It offers diverse protection for auto dealers because it provides coverage for property damage, libel, copyright infringement, bodily injury, slander, misleading advertisements, and more. Additionally, general liability pays for medical expenses that rack up from business operations as well as settlement expenditures and legal costs. 

2. Workers Compensation

It should go without saying that workers’ compensation is necessary for any business. Most states in the U.S. require companies to have this type of policy because it protects you—as the employer—and your employees. 

With workers’ compensation, you’ll get coverage for lost wages and medical expenses that occur because of work-related illnesses or injuries. Additionally, you’ll receive protection if lawsuits regarding negligence ever come up. 

3. Employment Practices Liability Insurance (EPLI)

This insurance is crucial if you have employees, even if your dealership is small. Employment Practices Liability Insurance (EPLI) provides protection for employment-related incidents like wrongful termination, breach of contract, harassment, discrimination, and other work-related issues. 

4. Garage Keepers Liability 

While this policy is optional, it’s still just as important. Garage Keepers Liability helps you if your customer’s vehicle is damaged. It offers protection for theft, extreme weather, vandalism, fire damage, and collision damages that occur at your dealership. It also pays for claims while your customer’s car is in your custody, control, care, or possession. 

5. Garage Liability Insurance

This insurance is quite different than the one above, even though it’s easy to use them interchangeably. Unlike the policy mentioned above, Garage Liability Insurance provides coverage for property damage and bodily injury that happens because of an accident at your dealership. If you want to protect your business when accidents happen, then you need to get this coverage. 

6. Business income 

No business is immune to natural disasters. It doesn’t matter where your business is located—it can get caught in a bad storm. And if you want your dealership to continue operating after the natural disaster ends, you need business income insurance, which covers any lost income. 

For example, maybe you need help covering business expenses that add up during the restoration period or need assistance with payroll expenses. In these cases, business income insurance is great.

7. Errors and Omissions Insurance

At an auto dealership, you’re supposed to help customers look for new and used vehicles, which means you work in the service industry. Because you give professional advice to customers on a regular basis, errors and omissions insurance is critical. 

This type of coverage kicks in when your team doesn’t complete its work correctly. For example, if someone misses a critical step while providing a service or omits information that could harm customers, you want errors and omission insurance to protect you. 

How much does auto dealer insurance cost? 

Like most types of insurance, the cost of dealership insurance depends on a variety of factors. Consequently, it’s not easy to give you a specific rate in a blog post, but it is easy to tell you what insurance companies consider when determining your fee. 

For example, a few factors come into play, including the following: 

  • The size of your dealership (i.e., the number of vehicles for sales, the square footage, and total business value) 
  • What state your dealership is in 
  • The number of employees at your dealership 
  • The number of insurance policies you choose
  • The types of insurance policies that you purchase

If you want a specific quote for your auto dealer insurance, it’s essential to speak with an insurance company. But please keep in mind that it’s critical to contact the right business. 

Most companies will give you insurance quotes that change at any given moment. Typically, none of the quotes are reliable until you commit, and that’s why it’s important to speak with the right insurance company. 

Barry Risk Management is an excellent option if you want a rock-solid insurance quote that won’t change in the blink of an eye. Backed by a team with more than 30 years of experience, Barry Risk Management can find the right insurance policies for your dealership and give you a reasonable price that you can count on. 

Just call 1-888-995-TAGS(8247) to speak with a representative at Barry Risk Management. They’ll give you a fast and reliable quote for your dealership insurance. 

How to Get an Auto Dealer Bond In New York

how to get an auto dealer bond in NYC

If you’re an auto dealer in New York, there are a few things that you know you need. You need a car dealer license, motor vehicles to sell, a decent-sized lot, and a handful of salespeople if you’re just starting out. 

These are obvious necessities for your business. However, there’s something else that’s just as important to have and that states even require: an auto dealer bond. 

In states like New York, you must have an auto dealer bond if you want to operate as a car dealer. But, more often than not, most people know nothing about auto dealer bonds. 

They don’t know what they are, what they cover, how much they cost, or even how to get one. And that’s why this article will clear the smoke, pull back the curtain, and demystify one of the most essential things that every auto dealer in New York needs. 

What is an auto dealer bond?

how to get an auto dealer bond to protect customers

Some people call an auto dealer bond a car bond—and honestly, both terms are correct. They each mean the same thing. Regardless of the phrase you use, this type of bond is a legally binding contract that protects customers, including everyday consumers and state or local agencies.  

This protection allows customers to take recourse when they’re exposed to fraud or misrepresentation during a business transaction. For example, maybe you decide to sell a car that has invalid tags. Whether you knowingly or unknowingly do this, your customer has the right to file a claim on your bond. 

When your customer takes this step, the business that’s backing your bond will pay the costs for your mistake. But the company will only pay up to the amount of the required bond. Then, you’ll have to reimburse the business. You don’t get to walk away scotch free. 

This series of events will occur anytime you don’t follow the applicable regulations and laws that your state has for auto dealers. And the only time you can get away with avoiding a customer’s claim is if the claim on your bond is illegitimate, meaning it’s false.  

Another thing you should keep in mind is that there are different types of auto dealer bonds. The one you choose will depend on your state’s requirements and the types of vehicles you’d like to sell. Some of the most popular bonds include: 

  • Used auto dealer bonds
  • New auto dealer bonds
  • Mobile home dealer bonds
  • Motor vehicle bond
  • Wholesale dealer bond

Each of these bonds is tailored to the type of dealership that you’ll run, so make sure you get the right one for your business. 

What does an auto dealer bond cover? 

While it’s important to know what an auto dealer bond is, you also need to know the ins-and-outs of what it covers. As previously mentioned, an auto dealer bond will protect customers who are exposed to fraud or misrepresentation during a business transaction. But what that fraud or misrepresentation looks like can vary. 

Sometimes, it can look like a deliberate mistake you’ve made, or it can look like a simple error and misunderstanding. For better context, here’s a list of scenarios in which a customer can make a claim on your bond: 

  • Selling stolen motor vehicles
  • Forgetting or avoiding to pay sales tax and fees to the state
  • Not reporting a sale
  • Committing financial fraud
  • Fraudulently representing a motor vehicle during a transaction
  • Withholding vehicle titles
  • Failing to meet warranty obligations
  • Refusing to pay for a trade-in vehicle
  • Forgetting or avoiding to pay lenders
  • Giving a check that’s returned for insufficient funds

Clearly, the list of protections that customers get from an auto dealer bond is vast. And while it might seem like you have to walk a tightrope when you have an auto dealer bond, you don’t have to do that. You just have to follow the law and handle your business responsibly. 

How much does an auto dealer bond cost? 

the costs of an auto dealer bond

As with most things, the price of an auto dealer bond will vary. What you pay in New York will depend on the state’s requirements, especially since the state handles licensing. However, three other primary factors can also influence the cost of your auto dealer bond. 

1. The amount of the bond

If the amount of your bond is significant, your costs will be higher than bonds that cover a lower amount. 

For example, if you have a $200,000 auto dealer bond, then the costs you have to pay will be higher than if you had a $10,000 bond. 

2. Your credit history 

Like it or not, your credit score plays a critical role in determining how much you pay for your auto dealer bond. 

If you have a credit score that’s 700 or higher, you’ll likely pay 1-4% of the total bond amount. If your credit score is 650 or lower, you’ll likely pay 5-20% of the total bond amount. 

3. Your history of losses  

Unfortunately, there are some bonds that have a significant number of losses. And the company backing your bond will take this factor into consideration when determining the cost of your auto dealer bond. 

Bonds with minimal historic losses will come with lower costs than ones with higher historic losses, which will come with a premium price tag. 

How do you get an auto dealer bond? 

Regardless of the costs for your auto dealer bond, you need to get one. It protects your customers, provides necessary coverage, and it’s required. But how do you get an auto dealer bond in New York? 

Luckily, the answer is simple. Use Barry Risk Management, Inc. 

While typically known for their DMV expertise, Barry Risk Management, Inc. has a parent company named Barry Risk Management. This business specializes in helping people discover and buy the best coverage for their everyday needs, including auto dealer bonds. 

With the guidance of Barry Risk Management, you can trust Barry Risk Management, Inc. to get the auto dealer bond that you need in New York. The only thing you have to do is reach out to a representative, and that agent will have the insight and knowledge to ensure they meet your business needs. 

To get your auto dealer bond, contact an agent at Barry Risk Management, Inc. today!