Strategies to Manage Rising Costs, Inventory Shortages, and Shifting Buyer Behavior
Tariffs on imported vehicles and auto parts have made the road ahead more difficult for independent auto dealers. Rising acquisition costs, limited access to parts, slower inventory turnover, and cost-conscious buyers are just some of the issues dealerships are now navigating.
This article breaks down the key business impacts of tariffs and offers clear strategies for marketing, sales, and operational resilience. It also introduces how Get My Auto’s integrated platform, CRM, DMS, AI automation, marketing suite, and F&I tools, can support these strategies in a unified and affordable way.
The Real Cost of Tariffs on Independent Dealerships
Tariffs aren’t just policy, they’re pain points that show up in day-to-day operations. Unlike franchise dealerships, independent lots don’t benefit from direct manufacturer relationships, bulk purchasing power, or subsidized financing options. That makes them more vulnerable when tariffs raise the cost of imported vehicles and parts.
Some of the most immediate impacts include:
1. Increased Vehicle and Parts Costs
Tariffs make it more expensive to purchase imported vehicles, and even domestic models become costlier when they rely on foreign-made parts. This drives up the acquisition cost for both new and late-model used vehicles. It also increases the cost of reconditioning cars for sale.
2. Delays in Inventory and Repairs
Dealers are waiting longer for parts. Some vehicles sit on the lot unreconditioned, losing value by the day. At the same time, the supply of quality used vehicles is thinning out. With fewer lease returns and trade-ins after the pandemic, independents face more competition, and higher prices, at auctions.
3. Shrinking Margins
With rising costs and slower sales, many independents are forced to absorb expenses or cut prices. That’s a tough pill to swallow when your margins are already thin. Making things worse, more customers are sitting on the sidelines, holding off on buying altogether.
How the Best Dealerships Are Dealing with Tarrifs
Smart dealers are not sitting still. They’re rethinking how they acquire inventory, price vehicles, market to customers, and manage the sales process. Let’s explore how this looks in practice:
1. Smarter Inventory Sourcing
The dealers that are succeeding right now are the ones who diversify their inventory sources. Rather than relying solely on auctions, they’re building systems to attract more trade-ins, forming dealer-to-dealer wholesale partnerships, and leveraging private seller channels.
How Get My Auto Helps: With Get My Auto’s integrated dealer inventory management system (VIN), you can track sourcing performance across channels, flag high-margin units, and make better purchasing decisions with real-time visibility.
2. Real-Time Pricing and Market Alignment
Holding out for unrealistic prices no longer works. Successful dealers are using market data and software tools to adjust pricing in real time based on model demand, market trends, and inventory aging.
3. Stronger Customer Retention Tactics
Retaining customers is more cost-effective than acquiring new ones. Dealers are leaning into their service departments, upselling maintenance plans, and using digital follow-up tools to stay in touch with past buyers.
How Get My Auto Helps: Get My Auto’s dealer CRM enables automated email and text campaigns for maintenance reminders, loyalty incentives, and trade-in opportunities. It keeps you top-of-mind without burning out your sales team.
4. Improving Speed-to-Sale
Time on the lot equals risk. Dealers are working to reduce their average days-to-sale by tightening their reconditioning timelines, investing in better listings, and focusing their marketing on buyers who are ready to act.
How Get My Auto Helps: With Get My Auto’s Vehicle Marketing System (VMS), you can instantly promote vehicles to top-performing platforms like Craigslist, Facebook Marketplace, and your own website. Combined with AI insights, it helps you prioritize and advertise the right vehicles at the right time.
Sales and Marketing in the Tariff Era: The New Playbook
Navigating tariffs is not just about cost management, it’s about sales strategy. Here’s how independent dealers are evolving their approach:
Focus on Value, Not Just Price
As vehicle prices rise, buyers are becoming more selective. This means your team needs to be able to clearly explain what makes a specific vehicle a better choice, even if it’s priced higher. Emphasize maintenance history, low mileage, extended warranties, or recent reconditioning.
Tip: Train your sales team to lead with value, not price, and reinforce that messaging across your marketing channels.
Highlight Fewer, Better Vehicles
Don’t overwhelm buyers with too much. Instead, spotlight a curated selection of high-demand, high-margin vehicles that are ready to move. Tell a story with your inventory, create urgency around specific models with limited availability.
Lead with Financing and F&I
With vehicle prices rising, more customers are financing purchases. But instead of waiting until the end of the sales process, successful dealers are making financing part of the pitch. Present multiple monthly payment options early and bundle protection products into the deal.
How Get My Auto Helps: Get My Auto’s DMS F&I tools let your team desk deal faster, integrate with top lenders, and offer add-ons without slowing the process. It turns your desk into a profit center, not a bottleneck.
Prioritize Lower-Funnel Buyers
Dealers are allocating more of their marketing budget to target buyers who are ready to purchase now. Retargeting campaigns, lead scoring, and CRM workflows help focus your time and money on people who are closest to the decision point.
How Get My Auto Helps:The Get My Auto CRM segment leads by readiness, automates follow-ups, and integrates seamlessly with ad campaigns, so your team doesn’t waste time chasing cold prospects.
The Role of Dealer Technology in Thriving Through Tariffs
What sets apart thriving dealers from struggling ones today isn’t size, it’s systems. The old way of managing your dealership with disconnected spreadsheets, basic websites, and phone call follow-ups no longer works in a high-pressure market.
Dealers need a modern platform that brings everything together. Below are Get My Auto’s solutions for each.
- DMS+: A true cloud based dealer management software to handle inventory, deals, titles, and accounting
- Auto Dealer CRM: A CRM to manage leads, follow-ups, and customer retention
- Dealer Marketing Platform: Marketing tools such as SEO friendly dealer websites to showcase your inventory online in front of buyers fast
- Ava AI: Transform your dealership and future automotive sales using this A. This AI solution for auto dealers helps streamline outreach and appointment setting
- VIN: Integrated F&I tools to maximize deal profitability
Get My Auto brings all of that into one seamless solution, designed specifically for independent dealers.
It’s not about features. It’s about solving your real-world problems, helping you cut costs, move more vehicles, keep customers coming back, and ultimately make better business decisions based on real data.
Adaptation Is the Strategy
Independent dealerships are under pressure. Tariffs, inflation, and shifting consumer expectations are changing how business gets done.
But pressure creates opportunity, for those willing to adapt.
The dealers that embrace smarter sourcing, tech-driven sales operations, and data-backed marketing will emerge stronger, leaner, and more profitable on the other side.
If you’re ready to turn today’s headwinds into tomorrow’s growth, it starts with having the right platform.
Learn more about getting my auto products and or schedule a live demo with a product advisor who understands the daily realities of running an independent dealership.
Let’s rebuild a better, smarter dealership, one strategy at a time.