The auto sales industry, like many others, is influenced by various factors throughout the year, including seasonality. From the highs of summer sales to the slow start of the new year, understanding these cycles can help both buyers and sellers navigate the market more effectively. Here’s a closer look at the typical seasonal trends that impact car sales and how to use them to your advantage.
❄️January and February – A Slow Start to the Year
The year kicks off with January and February being traditionally slow months for auto sales. These two months often see lower sales volumes due to several factors. Post-holiday budgets are tight for many, and consumer spending is typically low after the holiday season. Additionally, cold weather in many regions can deter buyers from visiting dealerships. However, used car sales tend to see an uptick during this period. Many consumers, especially those expecting tax refunds in the coming months, choose to purchase used vehicles as a more affordable alternative to new ones.
Marketing Tip: This is a great time to focus on cash cars or cheap payment vehicles, leveraging beacon based mail tends to work best during this tax season.
🌿March – Spring Awakening
As winter fades, the auto sales industry begins to pick up in March. With tax returns in hand, many buyers are ready to make significant purchases. The combination of tax refunds, better weather, and promotional deals makes March a key month in the auto sales season.
Marketing Tip: Don’t rest on your laurels! Don’t count on the seasonality of the industry to increase your sales. Ramp up your marketing and promotional efforts, by offering incentives like rebates and low financing rates on new models.
🌸April – A Small Dip
Following the initial rush of March, sales typically experience a slight dip in April. This slowdown is due to a variety of factors, including the end of tax season and the relatively quieter months before the summer rush. Car buyers may take a breather after making big purchases in the spring or delay decisions until the weather improves further, especially in colder climates.
Marketing Tip: This is not a time to cut back as you want to make sure your name is top of mind for the current customers and the future customers in the higher sales volume months to come. Email newsletters are a great way to keep your brand in front of your customers year-round.
🌞May to August – Peak Sales Months
May through August represents the peak of the auto sales season. With the summer months bringing pleasant weather, people are more likely to visit dealerships and test-drive vehicles. Additionally, many new car models are released in spring, sparking interest in fresh options. This period is also when incentives and promotions are in full swing, with dealerships offering special pricing, low financing, and trade-in bonuses to attract customers.
The summer months are especially popular for families looking for new cars ahead of back-to-school and vacation travel plans. July and August can see especially high volumes of sales, as people are ready to make purchases before the autumn months. Additionally, car dealerships often clear out inventory to make room for the next year’s models, offering deep discounts on last year’s vehicles.
Marketing Tip: Capitalize on the weather and customers’ willingness to come in store by holding special customer appreciation events. Partner with other local businesses or communities to spread the word.
🍂September to November – Sales Dip
As the summer sales surge wanes, car sales typically dip again in September, October, and November. This decrease in sales volume is often attributed to the transition into fall and the approach of winter. Many consumers are no longer focused on purchasing vehicles after the summer rush and may put off decisions until the new year. Additionally, dealerships tend to have fewer promotions during these months, as the focus shifts to preparing for the holiday season.
Marketing Tip: This period might be a good time to focus on end-of-year clearance events. Dealers can begin offering significant discounts to clear out older models to make room for the next year’s inventory. This is a great time to focus on offering large discounts available on last year’s models.
🎄December – A Mixed Month
December can be a bit unpredictable. For some dealerships, it’s a strong month as people use their year-end bonuses or holiday savings to make a purchase. Car buyers also look to secure their purchase before the end of the year for tax reasons, hoping to take advantage of deductions or to start the new year with a new vehicle.
However, December can also be slow in certain markets, especially when holiday shopping takes precedence over big-ticket purchases like cars. Weather conditions, such as snowstorms in colder regions, can also affect foot traffic to dealerships.
Marketing Tip: Boost business by holding a “year-end sales events”. Or if customers are unwilling to come in to the store due to the cold weather, offering exclusive online discounts and specials may change their minds.
📈The Bigger Picture
The seasonality of car sales can be influenced by a variety of factors, including economic conditions, fuel prices, consumer behavior, and even government policies like tax incentives or rebates. Understanding these trends helps both buyers and sellers anticipate what to expect throughout the year.
For dealerships, managing inventory and marketing strategies based on these seasonal trends is key to staying competitive. While the auto sales industry experiences fluctuations throughout the year having a clear and consistent marketing strategy is key to weathering the seasonality of the auto industry. Bedford Advertising can help with the consistency of your marketing campaigns. View our full suite traditional and digital marketing services.