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Data Shows Dealer Sales
ADESA LONG ISLAND
425 Patchogue Yaphank Rd.
Yaphank, NY 11980 Activity Healthier When They
631.205.5000
adesa.com/longIsland
ADESA SYRACUSE Keep Ad Budgets Intact
5930 State Rte. 31, Cicero, NY 13039
315.699.2792 By Lauren Donalson, Senior Director of National Accounts at PureCars
adesa.com/syracuse
Although the pandemic was still a major Reduced ad budgets equal larger sales
BUFFALO AUTO AUCTION force in the world, the automotive industry drop-off
5300 Lockport Road entered 2021 having rebounded from Unfortunately for those dealers who
Lockport, NY 14094
716.549.4800 the earliest days of the shutdowns. If pulled back on ad spending, they ended
deeregunner@hotmail.com anything, automotive brands and dealers up feeling more pain in overall sales
found themselves having to address a lack drop-off compared with dealers who
MANHEIM ALBANY of inventory, not a lack of demand from modified advertising messages and
459 Route 146, Clifton Park, NY 12065-0440 shoppers. strategies and increased budgets. For
518.371.7500 example, between the months of March
jay.waterman@manheim.com Automotive marketers all over the U.S. and August earlier this year, dealers who
manheim.com have continuously reevaluated strategies for decreased their advertising spending
MANHEIM NEW YORK AA 2021 ad budgets. Some retailers followed between 50% and 89% saw their sales
2000 Dealer Drive, Newburgh, NY 12550 the belief that they should pull back on volume drop by 28%. However, those
845.567.8400 / Fax: 845.567.8410 advertising since they weren’t worried dealers who actually increased their
Every Thursday 9:00 AM about promoting vehicles when there is a advertising spend by just 9% during the
Ford Factory Closed Sale lack of inventory. same time period saw a much lighter drop
Bi-Weekly 10:00 AM in sales at just 9%, according to PureCars
Heavy Truck & Equipment Sale However, this has proven to cause deeper dealership advertising spending data from
First Thursday of the Month 11:00 AM problems toward long-term customer September.
manheim.com relationships and loyalty.
MANHEIM ROCHESTER The main difference in philosophy is what
20 Cairn Street, Rochester, NY 14611 If anything, those dealers who limited the drop off in sales performance.
585.328.2277 wisely shifted their advertising Dealers who pulled back in advertising
sara.fico@coxautoinc.com looked at their showroom traffic in
manheim.com message have fared better relation to lower inventory levels and
than those who pulled their thought there was no need to promote
ROCHESTER- SYRACUSE AUTO deals on new cars and trucks.
AUCTION advertising altogether.
1826 State Route 414, P.O. Box 129 However, savvy dealers looked at this
Waterloo, NY 13165 What we’ve learned through the
315.539.5006 pandemic past summer as an opportunity to make
sprankie@rsautoauction.com It is true, hindsight is certainly 20/20. With varying levels of budget increases in their
rsautoauction.com months of inventory shortage history spending. What’s more, they realized
now in the rearview mirror, there is a lot promoting vehicles that may or may not
STATE LINE AUTO AUCTION be on the lot was not the right thing for
830 Talmadge Hill Rd. S. that can be gleaned from understanding their customers. Instead, they modified
Waverly, NY 14892 dealer ad spend patterns, especially when their advertising messages and instead
607.565.8151 / Fax: 607.565.8659 industry observers look at the trends of focused on promoting vehicle buy-back
GM Financial Open Sale –EVERY Friday, dealers who cut off ad spending compared opportunities to increase inventory, and
9:20 AM with those that did not. they also promoted service and repair
GM Financial Closed Sales as Scheduled options to boost revenue further.
Dealer Consignment Sale –EVERY Simply put, the data suggests dealers
Friday, 9:20 AM who continued to spend on ad strategies
statelineauto.com grew their market share, and those who When customers come in for service and
cut their ad spending lost sales. This repair it gives dealers and their staff an
WEST VIRGINIA data insight also includes ad spending excellent chance to discuss buy-back
MOUNTAIN STATE AUTO AUCTION options with customers who give strong
Route 2, Box 835, Shinnston, WV 26431 strategies this past summer that may have consideration to increased trade value
304.592.5300 / Fax: 304.592.3510 been altered as a result of the ongoing and a discussion on other inventory on
Monday 10:30 AM microchip shortage that saw fewer new cars the lot. n
Office: 9:00-5:00 and trucks hitting dealer lots.
mtstateaa.com
MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • MARCH 2022 | 19