Dealers are facing unprecedented uncertainty regarding tariffs and their impact on the retail auto sector.
Rather than waiting for the ax to fall before reacting to the next development, dealers should have a plan in place to clearly communicate with consumers about the rapidly changing retail auto environment.
A plan can allow them to turn the chaos to their advantage, says Alexi Venneri, co-founder and CEO of DAS Technology, a software-as-a-service consumer engagement company.
“It’s not all doom and gloom with the tariffs, and the dealers that get a playbook together that leverages technology will get a larger share of sales moving forward and find ways to offset any potential losses,” Venneri says.
The DAS Tariff Toolkit aims to help dealers create such a playbook. It addresses six strategic areas in which dealerships can make the best of tariff upheaval.
For example, dealers can source used inventory with hyper-targeted campaigns running trade-in and buy-back offers now, before used-car demand accelerates, Venneri says.
And because consumers may keep cars longer because of economic uncertainty, dealers can offer special service campaigns tied to customer history and re-engage past service customers before parts and service prices increase.
Dealers can also market extended warranties to customers with aging vehicles.
Education for the Win
Given the constantly changing state of play around tariffs, dealership employees and consumers find it hard to stay up to date about manufacturers’ special offers related to those tariffs.
“The (manufacturers) aren’t even clear on which models are being impacted,” Venneri says.
The Toolkit includes a free subscription for up to three months to DAS products such as an AI Chatbot that is continuously updated on manufacturer policies related to the tariffs.
That allows dealers to quickly communicate changing manufacturer incentives and programs, another key dealer strategy, DAS COO Jason Barrie tells WardsAuto.
That builds consumer trust and grows business, he says.
Dealers who clearly and correctly educate consumers about the changing market environment will win, Barrie says. “They will win the opportunity to sell a car. They will win the opportunity to buy back a car, to do a trade-in, and they will win the service repair order.”
Ducks in a Row
The Trump Admin.’s recent announcement giving automakers a partial reprieve from auto parts import tariffs is a good example of how quickly things change these days.
Manufacturer messaging can pivot just as quickly, and dealers need to be prepared.
“We want dealers right now to plan the actual content of what they might be able to communicate,” Venneri says. “How do you get all your ducks in a row now?”
The DAS Tariff Toolkit is free and available to any dealer.
“We’re trying to say, hey, download this toolkit, get strategies in place and templates and messaging ready to go. And guess what? It’s going to change again. That’s the one thing we know about this administration,” Venneri says.
