How Rising Gas Prices Could Affect Future Consumer Behavior
It’s no secret that gas prices have been top of mind across American drivers as of late–average prices in the U.S. recently hit $4.33, according to AAA. The question is, how will this affect used car dealerships?
Reviewing March’s Verified Dealer Profile data from OfferUp, the top 5 most-posted vehicles are:
Ford F-150
Honda Accord
Chevrolet Silverado
Honda Civic
Dodge Charger
While we may have expected to see a hybrid or EV model on the top posts list, this behavior falls in line with the inventory issues at hand–it’s not those customers aren’t willing to purchase an electric-based model, we’re simply strapped on the resources to offer one. The Wall Street Journal authors Nora Eckert and Christina Rogers chime in:
“Dealers say for now, it is too soon to tell how big an impact gasoline prices will have on buyers’ behavior, especially because for most car shoppers the lack of vehicle availability remains top of mind.”
The top five vehicles listed above may not come as a surprise to most readers; the average MPG (on the 2022 models) ranges from ~20-30 in the city which, for most buyers, is considered more of a “gas-sipper” than a “gas-guzzler.”
In short, the recent spike in gas prices certainly has car buyers concerned, but not swayed enough to change purchasing behavior just yet. However, it’s a good idea to look into the future when sourcing inventory. JP Miller, chief executive officer of Paul Miller Ford in Kentucky, said, “if anything, the higher fuel costs are helping to build awareness around EVs as car companies and regulators are trying to push greener options.” A hybrid or true EV vehicle may help a dealership stand out from competitors for forward-thinking buyers.
OfferUp Partners With Local Dealerships for Community Giveback Campaign
Earlier this year, the OfferUp Motors team at OfferUp invited our verified dealers to participate in our annual Community Giveback Campaign. At OfferUp, we strive to connect local communities through the power of our app. It was our mission to give dealerships an opportunity to nominate local 501c3 organizations that make a difference in the communities where they live and work. Four submissions from across the country were randomly selected for a $250 donation from OfferUp on behalf of the dealerships.
The American Cancer Society in Riverside California, submitted by Affordable Luxury Autos, was the first of our recipients. The general manager, Sosa Ala, expressed his excitement in being selected, stating about the Cancer Society in Riverside, he’s “really grateful for what they do'' for the people in his community.
The second donation was made to Toys for Tots in Philadelphia, on behalf of Grace Auto Group. The organization's primary goal is to provide gifts to children less fortunate in the area during the holidays. Our next recipient, nominated by CCS Auto Inc., was The Chicago Chesed Fund, an organization that has been providing a range of services from financial support to food distribution in the Chicago area for over 30 years.
Director of Marketing Ita Garsek expressed their gratitude,
"Chicago Chesed Fund thanks CCS Auto Inc. for the nomination. It is so meaningful to be nominated by a local community member who recognizes the importance of our work. Thanks to OfferUp for facilitating this as well."
Finally, Operation Phantom Support, which assists Soldiers, Veterans, 1st Responders, and their families in need, was chosen through a nomination by Action Motors Inc. in Killeen, Texas.
John N. Valentine, CEO & Founder of Operation Phantom Support explained the impact of receiving support from their community,
“Action Motor Inc. is an amazing civic partner, their awareness and commitment to central Texas is top-notch. Operation Phantom Support has received support from Action Motor Inc. and it will assist thousands of Military and Veteran Families! Action Motor Inc. epitomizes what our country needs in business partners going above and beyond.”
Please visit the links below if you are interested in learning more or supporting these organizations making a positive impact in their local communities.
American Cancer Society: https://www.countyoffice.org/american-cancer-society-riverside-ca-461/
Toys for Tots: https://philadelphia-pa.toysfortots.org/
Chicago Chesed Fund: https://chicagochesedfund.org/
Operation Phantom Support: https://www.phantomsupport.org/welcome
We’d also like to thank all the Verified Dealers who nominated organizations for the Giving Campaign. Our goal is to continue to find ways to contribute to the organizations and communities that are important to our partners. We look forward to running the Community Giveback Campaign again later this year.
NADA 2022 Recap and What's Coming in April
From March 11th to the 13th, OfferUp Motors attended the 2022 NADA Expo in Las Vegas. The NADA Expo is the auto industry’s premier marketplace, with hundreds of companies offering thousands of products, solutions, and services. The highlight of the event was of course meeting all of you. Some OfferUp Motors’ team members attended and hosted consultations and showed some demos of some pilot projects including a new program for Motorcycle dealers and car buy-back betas. The feedback was amazing from our dealers, and you can expect to see these in the upcoming months.
Next month, we will be hosting live webinars with Auto Remarketing and Auto News to share some of the latest user data and highlight some of our upcoming features. Stay tuned for updates and hope that you will be able to join us.
Last Change: Tax Season Special for Dealerships
As we close out tax season and look back on tax season, Verified Dealers on OfferUp have seen up to 60% more engagement on vehicle listings. Despite the season-ending, post-tax car shopping sees some of the highest numbers of car sales as car shoppers use their tax refund to shop and buy.
Not only does OfferUp make it easy to get your vehicles in front of buyers looking for inventory that you have, but we can help respond and qualify leads, so you get the best leads automatically. Contact OfferUp today to learn how.