The global chip shortage has lasted for more than two years; it has more far-reaching impacts than you might think. For example, automotive factories have reduced their manufacturing capacity due to the lack of chips. Directly impacting the average number of new vehicle inventory that car dealerships are obtaining. What can business owners do amid chip shortage, and if there are any solutions for car dealerships?
Central to the technology are the semiconductor chips responsible for the computations that make our electronics smarter. However, experts have warned us about a chip shortage due to demand growth surpassing supply capacity for some time.
How Are The Chip Shortage Affecting Car Dealership Prices?
Over the past year, especially in the COVID era, this shortage of semiconductor chips has led to high demand for vehicles for car dealerships. Many automakers have stopped production due to a lack of chips.
Due to a lack of inventory, new cars are not only challenging to find – but they are also selling at (or above) the manufacturer’s suggested retail price (MSRP). As a result, many car buyers turn to the used car market, where competition is tough and higher prices.
How Long Will The Chip Crisis Last for?
“The global semiconductor chip shortfall shows no signs of ending soon.”
According to some auto executives, production will not return to pre-pandemic until 2023. Furthermore, chipmakers have stated that chip production could take up to two more years to meet current demand.
Current Solutions To The Chip Shortage
“We have an insatiable demand for technology in all aspects of our lives. We need technology to improve the efficiency of our work, and also to make our lifestyles more comfortable.”
The tech sector is already taking significant steps to alleviate the shortage. For example, used car buyers have also spent more time shopping online compared to previous years. In 2019, people spent less than 9 hours searching cars online, whereas the new average online browsing time in 2021 was 10 hours and 25 minutes. In addition, the business world is shifting towards a more customer-focused strategy. So, each car dealership must develop client loyalty through excellent customer service to generate revenue.
Automate Online Chat To Do More Deals
Conversational AI chatbots are intelligent software systems programmed to perform specific duties. For example, car dealerships can utilize computerized automation power as a helpful online assistant. A well-composited chatbot such as DealerAI can accomplish various tasks, including immediate response, capture leads, book test drives, rescheduling service appointments, and delivering real-time inventory search.
Digital tool eases car buyers’ demand for dealerships amid chip shortage
At present, in the automobile industry, customers will not get converted to sales immediately; they go through a list of the process before buying. Then, they will compare all of the car’s features in the market at a comparable price.
With these, you can say the automotive industry has massive competition in the market. So, as a result, using innovative chatbots like DealerAI can help you do more deals faster with higher grosses by keeping visitors to your website closer to you.
With DealerAI automated chat solution, you can:
- Save 100% of the dealership’s agent hours on collecting info that visitors were initially planning to submit.
- Deliver prompt and consistent responses to customers
- Maintain consistency between various digital platforms such as SMS, websites, and social media.
- Customers enjoy the fun of a self-serve online experience and enhanced conversation engagements.
See How DealerAI Can Boost Sales and Revenue for Your Dealership