How Small Car Dealerships Can Compete with their Larger Competitors

How Small Car Dealerships Can Compete with their Larger Competitors garage

How Small Car Dealerships Can Compete with their Larger Competitors

In the car dealership arena, it’s tough for the smaller businesses in their mission to compete with bigger brands. In most cases, they have far fewer resources, less staff, and often lack a great deal of crucial experience that can help them go toe to toe efficiently.

Consequently, here are a few steps that your smaller car dealership can take that will help you compete with your larger competitors.

Focus on Service

In terms of capital, stock, and sheer manpower, your small car dealership just can’t outmatch a large competitor on its own. However, subscribing to a culture of hopelessness isn’t ideal, or particularly enterprising either. There’s more to any business than the stuff it sells, or how often it sells it; what matters is if you can efficiently sell what little you have.

Therefore, you can compete by developing bulletproof customer service. If you have fewer customers, then you can spend more time with the ones you do have and take your time in addressing all their concerns. You can be more patient, friendly and perhaps even take the time to remember names and details of returning customers. This kind of personalised service really makes a business memorable and builds customer loyalty, so utilise it where you can.

How Small Car Dealerships Can Compete with their Larger Competitors office

Double Down on Integrity

For a small dealership desperate to compete, it can be easy to turn to shadier methods. Many of them have amassed a reputation for being pushy and dodgy in their dealings. Perhaps they’re selling cars that aren’t quite legitimate, or maybe some of them are overpricing run-down vehicles? Cutting corners and scamming customers becomes the order of the day to make a profit, but it’s the route no respectful dealership should ever even consider going down.

Your smaller car dealership can compete simply by building a solid reputation for authenticity and trustworthiness. You can sell vehicles that have undergone thorough history and specification checks, and explore an expansive database that has records of every car registered in the last twenty years. Just like you have more time to spend with customers, you also have more time to spend being thorough with what’s on your lot.

Preserving Your Identity

Some motor dealers follow an age old saying; if you can’t beat them, join them. For example, one of the better known motor dealers is perfectly poised to join one of the biggest dealerships in the country, and will be a part of that ever-growing empire of car trade. While they might be in a position of acquiring more resources, they’re also now working under a different corporate flag with a different vision and agenda.

That said, you’re out to compete, not throw in the towel. If you’re getting offers from big dealerships, it means you’re a potential threat and that you’re doing something right. You can only compete effectively by first being considered a competitor by others, so don’t lose your nerve when your dealership starts getting attention. Use this as fuel and motivation and continue your current trajectory. After all, who knows where it may lead?


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