As 2025 unfolds, the auto industry is facing new challenges and opportunities. Many of these obstacles are a result of changing consumer behavior. Using data-driven insights, auto dealerships can seamlessly adapt to these changes, seizing success in the new year.
Current trends in consumer behavior suggest that high-touch customer experiences can make a big difference. For example, 54% of consumers would buy from dealerships with a preferred experience, even if the dealership doesn’t have the lowest prices. Similarly, 72% of consumers would visit dealerships more if the buying process was improved.
Focusing on customer experiences is one tool; a second important tactic is fraud prevention measures. Due to increasing financial stress on consumers, fraud is also on the rise. In fact, synthetic identity, a common type of fraud, increased by 98% in 2023. This resulted in $7.9 billion in losses. Fraud is also problematic because it leads to increased delinquency, which lands an additional blow on auto dealerships.
Luckily, with proactive measures such as Digital Identity Trust, auto dealerships can stop fraud in its tracks. Equifax is an example of a company that provides further resources and support to auto dealerships looking to tackle fraud.
Despite challenges, there are several paths forward for the auto industry. Using a combination of high-touch consumer experiences and fraud prevention measures, auto dealerships can quickly address roadblocks and find success.
