Dealership sales strategy

5 Challenges That Affect Car Dealerships in 2023 and How to Solve Them

December 23, 2022
5 Challenges That Affect Car Dealerships in 2023 and How to Solve Them

It seems the auto industry has more and more challenges to face each year and 2023 will not be an exception. The five main challenges the industry will have to overcome are the following:

  • Problems with new car supply
  • Increasing demand for used cars
  • Managing aftersales
  • Building and nurturing customer relations
  • New approach to sales and marketing

Luckily, there’s a way to tackle all of these challenges and we are going to give you just the solutions.

What is the industry in for?

You may have heard the saying, “the only constant is change.” Well, that’s definitely true when it comes to the car industry. Over the next few years, we’re going to see some major changes that will affect car dealerships in a big way.

For starters, we’re going to see an increased demand for used cars. At the same time, the new car supply bottleneck is going to cause problems for dealerships. And if that’s not enough, customers are going to start demanding even better customer service.

Aftersales has always been a critical part of the car dealership business, but it’s only going to become more important in the years ahead. Fear is still a factor for many customers, so marketing and sales teams need to find ways to overcome it.

customer relationship management software
CRM has important role in dealership success

In this article, we’ll take a look at five challenges that car dealerships will face in 2023 and how to solve them.

Customer Relationship Management Software

  • It’s no secret that customer relationship management (CRM) software is a crucial part of any car dealership’s success. But in 2023, car dealerships will face new challenges when it comes to customer relations.
  • There will be a higher demand for used cars. This means that dealerships will need to focus on aftersales in order to keep customers happy and coming back for more. Additionally, customers will be more likely to shop around for the best deal, which means dealerships will need to work harder to stand out from the competition.
  • Finally, dealers will need to be careful not to annoy prospects with irrelevant messages. The key here is to personalize each interaction and make sure that all communication is relevant to the customer’s needs.
  • If you can overcome these challenges, you’ll be well on your way to success in 2023!

The New Car Supply Bottlenecks

It’s no secret that the car market is changing. Electric and autonomous vehicles are on the rise, and this is having a major impact on the way dealerships do business.

One of the biggest challenges that dealerships are going to face in 2023 is an increased demand for used cars. Why? Well, as more and more people switch to electric and autonomous vehicles, the demand for new cars is going to drop. This is going to create a bottleneck in the supply chain, and dealerships are going to have to find ways to deal with it.

Luckily, there are a few things that they can do. They can, for example, focus on expanding their used car inventory or team up with other dealerships in order to consolidate orders. They can also invest in customer relationship management software, which will help them keep track of all their customers’ needs.

An Increased Demand for Used Cars

You might be wondering how the increased demand for used cars will affect car dealerships in 2023. Here’s the thing: as the cost of new cars continues to rise, more and more people are choosing to buy used cars instead. And that’s creating a lot of challenges for car dealerships.

For one thing, it’s becoming more and more difficult to find good quality used cars. That’s because the supply of used cars is starting to dry up. And when demand goes up and supply goes down, prices go up.

Another challenge for car dealerships is that customers are becoming more demanding. They want better deals and they want a wider selection of used cars to choose from.

Dealerships also need to be prepared for a shift in customer behavior. More and more people are buying cars online, which means dealerships need to find ways to make the online buying process easier and more user-friendly.

customers demand are changing
Customers are wanting wider selections of used cars

Finally, car dealerships need to be prepared for fear to continue being a factor in the buying process. People are still hesitant to buy cars sight unseen, especially if they’re spending a lot of money on them. So car dealerships will need to find ways to build trust with their customers and overcome their fears.

Aftersales Remains Critical

In the automotive industry, aftersales is critical for success. It’s what keeps customers coming back, and it’s what can make or break a dealership.

There are a few challenges that dealerships will face in 2023 when it comes to aftersales. Luckily, high-quality customer relationship management software, such as Modera’s, can help you keep track of your customers and keep them coming back. And our team of experts is always here to help you out with whatever you need. So don’t stress, just focus on providing excellent customer service and you’ll be just fine.

Annoying Prospects With Irrelevant Messages

It’s no secret that customers are getting more and more selective about the brands they do business with. They want to be sure that they’re spending their money with a company that values them as a customer and is invested in their success.

So when you send them irrelevant messages or try to hard-sell them, it just annoys them and makes them less likely to buy from you. In order to win over customers, you need to focus on providing value and building relationships.

The best way to do that is by using customer relationship management software to keep track of their needs and preferences. That way, you can send them relevant offers and information that helps them achieve their goals.

CRM software as solution in car dealership

You know that car dealerships are facing a lot of challenges in 2023. The market is changing, and customers are demanding more than ever before.

But don’t worry, there’s a solution. CRM software can help you manage your relationships with customers and keep them happy. With the right tools in place, you can overcome all sorts of challenges and thrive in the future.

dealership success
Investing in automotive CRM software is easiest way to increase dealership sales

So don’t wait any longer. Invest in a quality CRM software and start seeing results for your dealership. You won’t regret it!


The challenges car dealerships will face in 2023 are varied and numerous, but they can be overcome with the right planning and execution. CRM software is a critical tool that can help dealerships manage their customer relationships and increase sales. With the right strategy, car dealerships can thrive in spite of the many challenges they face.

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