When vehicles are on order, communication is in order

A recent post from a frustrated would-be buyer on Kia-Forums.com speaks volumes.

“We got crazy news today … My PHEV EX+ ordered in October, that was supposed to arrive in February, that was first pushed back between May and July, is now pushed back again to October … [I will] probably cancel my order.”

The poster, who used the name Maxime Pare, did not respond to a request for an interview. But the message is clear: Buyer frustration poses a huge challenge to dealerships that can’t get vehicles as quickly as buyers want.

But proactive retailers are relying heavily on customer relationship management (CRM) and other tools to keep them up to date on their orders.

“We all have CRMs,” said Steve Chipman, CEO of Winnipeg-based Birchwood Automotive Group. Reaching into that CRM data, each of Birchwood’s stores conducts “follow-up Fridays,” during which every customer is updated by phone or text on the status of his or her order — even if there is no new development.

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Many customers realize that high-demand electric vehicles, such as the Hyundai Ioniq 5, are a year out, Chipman said.

“The customers have become aware [that certain models of] cars aren’t available,” he said. “The expectation of having an immediate vehicle is gone.”

‘BEST GUESS’ BEATS BAD PROMISE

Birchwood’s 22 dealerships, which sell 21 brands, have about 2,000 vehicles in total on back order, Chipman said. Some stores have just 10 cars on the lot. Chipman has been told that Manitoba will get just four of the new electric Ford F-150 Lightnings next year, so “we’re not even taking orders on them for now.”

The key, he said, is transparency and to not make promises that can’t be met. Instead, the dealerships provide “our best guess” on a delivery date.

Birchwood has also increased flexibility by not requiring a deposit on a vehicle with typical options. That’s because if the customer finds another vehicle elsewhere during the wait, the dealership will have little trouble finding a buyer for the one on order.

“Every car we get is sold,” Chipman said.

The company’s “Dibs” ad campaign is also adding a little levity to the waiting process: “If your dream vehicle is not available, a simple factory ordering process is now available,” reads a message on the Birchwood website. “See something you like? Reserve it while you decide so you don’t lose out.”

Of the 100 or so vehicles on order or on the ground at Jack Carter Chevrolet-Buick-GMC-Corvette in Calgary, 94 are sold, said managing partner Jay McKeen. While some vehicles from General Motors can arrive in 60 days, “we’re theoretically sold out for two or three years” of premium automobiles such as the Chevrolet Corvette and the Cadillac Escalade.

“Theoretically,” because some buyers will find a vehicle elsewhere and cancel their order. Jack Carter provides refunds on order deposits because the waiting list of would-be buyers is long.

“We know we can sell that car within minutes” of making it available, McKeen said.

GIVE THEM THE REAL DEAL

The key with customers is to set realistic expectations, he said. In the case of hard-to-get vehicles, the dealership will take the order, “but we’ll tell them it could be two or three years” before delivery, McKeen said.

One of the most challenging customers is the person who tells the dealership to call when it has the vehicle that the customer is looking for, he said.

“That point in time is not coming anytime soon,” McKeen said. “There are just so many people who are willing to purchase ahead of time.”

At Cadillac Canada, managing director Shane Peever said dealers are relying heavily on Cadillac Live, a digital showroom that allows customers to take video tours and ask questions to an agent in real time.

While the digital platform was launched in 2019 as a lead generator, it has helped dealers maintain their connection with consumers, educating them about EVs, such as the Lyriq SUV that goes into production in August, Peever said.

Customers can engage in a live interaction with one-way video to see a vehicle that is not physically in a dealership, he said. “[Agents] have car seats and golf bags, so they can show you the dimensions of the vehicle and take you on a virtual tour,” Peever said.

More than 3,300 Lyriqs have been pre-ordered in Canada, and the 2023 production run is sold out, he said, adding that Cadillac is taking orders for the 2024 models.

CUSTOMERS TRUSTING

In rural Saskatchewan, Jeff Siegfried, sales manager at Watrous Mainline Motor Products, a General Motors dealership, said he has about 200 vehicles on back order. Most customers trust the dealership in Watrous, about 175 kilometres northwest of Regina, to update them, he said.

Hurdles to delivery are numerous and ever-changing, Siegfried said.

“Something is produced and there it sits,” he said. It could be because the vehicle was built “shy” — missing components —  awaiting quality control or even because there is a shortage of rail cars to deliver it.

A growing number of customers want to order a new vehicle months before they need it, and he typically puts the order in right away.

“Customers are becoming more understanding,” he said. “[They become] frustrated if they’ve lost a vehicle [through accident or fire, for example] and need to have one right away.”

Siegfried tells those customers the automakers are doing everything they can to keep factories running.

“It’s not part of their business model to make [them] mad,” he said.

— With files from Petrina Gentile.