If you work for a car dealership and are responsible for growing your customer base, you will need to identify and define your ideal customers. This is essential to create marketing and advertising campaigns that will resonate with them, and ultimately persuade them to buy a car from you.

Remember that not everyone who needs a car will want to buy one from a dealership. And since there are many different ways to reach potential customers, you will need to tailor your marketing efforts in order for them to be effective.

So, who is the target market for car dealerships? And what do they look for in a dealership before buying a car from them?

In this article, we will analyze the different segments of the target market for car dealerships, so that you can begin the process of finding and marketing to your ideal customer.

Let’s get started!


Understanding the Target Market for Car Dealerships

To understand the target market for a car dealership, we need to look at the various reasons why someone will visit one. This gives us the following customer segments:

  1. People who need a new car
  2. People looking to upgrade their current vehicle
  3. People looking for a specific type of car
  4. People with a bad experience with another dealership
  5. People selling their current car
  6. Businesses purchasing or leasing company cars

As you can see, the target market for car dealerships is quite diverse. And while some customer segments might be more profitable than others, all of them present an opportunity for a dealership that knows how to appeal to them.

Now let’s look in detail at the needs and wants of each of these customer segments.

1. People who need a new car

People who need a new car are a classic target market for dealerships. They might be looking to replace an old car, or they might be buying their first car. In either case, they will need to find a dealership that meets their needs and budget.

New car owners are generally open to different options and brands, so it is important to have a wide selection of vehicles at your dealership. You should also offer financing options and trade-ins, as these can be major deciding factors for new car buyers.

2. People looking to upgrade their current vehicle

These customers are usually looking for a better car than the one they currently have. They might be looking for a bigger car, a more luxurious car, or a car with better features. Whatever the case, they will be looking for a dealership that can offer them what they want.

Unlike new car buyers, customers in this segment of the target market for car dealerships are not always in a hurry. They might take their time to research different options before making a decision. So it is important to have a patient and knowledgeable sales team that can help them find the perfect car.

3. People who are looking for a specific type of car

There are many reasons why someone might be looking for a specific type of car. They might need a work truck, a family SUV, a sports car, or an electric car.

These customers have already decided on the type of car they want. They might be looking for a specific make or model, or they might be looking for a car with specific features.

Whatever the case, they will need to find a dealership that has the type of car they are looking for.

Customers in this segment are usually very specific about what they want. So it is important to have a wide selection of vehicles at your dealership, as well as qualified sales staff who can help them find what they are looking for.

4. People with a bad experience with another dealership

These customers have been burned before, and they are not going to take any chances this time. They will be looking for a dealership that is trustworthy and has a good reputation.

You can expect this type of customer to be very skeptical and cautious, and they will likely need a lot of reassurance before they make a purchase.

They are also very likely to comparison shop, so it is important to be competitive on price and offer a great selection of vehicles. However, one of the reasons they will compare your car dealership with another is customer service, so make sure your team is up to the task.

5. People selling their current car

People who just want to sell their current car can easily find buyers by advertising online or in classifieds. After all, there already is a thriving market for used cars. So why would they come to a dealership?

Because these customers could be looking for convenience. They might be wanting to sell their car quickly and without any hassle.

Or they are looking for a trade. A car dealership can offer them this by giving them a trade-in value for their old car. Then they can sell the old car onto a secondary market or to a car rental company.

This type of customer is also likely to be interested in financing options because they will need to find a way to pay for the difference in the price of the old car and the new one.

6. Businesses purchasing or leasing company cars

Many companies offer company cars as part of employee benefits packages. These cars can be used for business and personal use.

The company will usually purchase or lease a certain number of vehicles from a dealership, and then employees will have the option to choose which car they want.

Some large companies also purchase luxury cars for their senior management.

Business customers look for dealerships that can provide them with a good selection of vehicles at competitive prices. They will also need sales teams that are knowledgeable about business vehicle purchasing and leasing options.


Conclusion

While the target market for car dealerships is vast, certain segments of the market are more likely to visit your dealership.

These include people who are looking for a new car, a better car, or a specific type of car. The market also includes people who have had a bad experience with another dealership and who are now looking for a new one with caution.

People who are selling their car or trading it in for a new one will also visit dealerships. And finally, businesses that are purchasing or leasing company cars will often make larger, longer-term deals with car dealers.

To be successful with any of these customers, it is important to have a wide selection of vehicles, as well as qualified sales staff who can understand the needs and wants of each segment of the target market.