Data says: get strategic!
Dealership Tightrope: Pricing Cars Right While Keeping Profits in Sight
Dealerships are facing a real balancing act, caught between offering cars at prices buyers can handle and maintaining essential profit margins.
Rising interest rates are stretching budgets, making the dream of a new car seem just out of reach for many people. Moreover, higher rates lead to heftier monthly payments, pinching household finances and making buyers think twice.
With the average US household earning around $70K annually, it becomes a stretch when over 20% of that goes just to car payments. It is not surprising that nearly 8% of auto loans ended in delinquency by the end of the fourth quarter of 2023, a peak not seen in 13 years.
Savvy car dealers know that it’s not just monthly payments that have customers worrying; it’s the total cost of ownership. This means, recognizing that affordability goes beyond the price tag – it's also about maintenance, repairs, trade-in value, fuel costs, and overall ownership expense.
?It's a clear sign: affordability isn't just a buzzword; it's the pulse of the market.
So, what's the next move?
For more information on how these solution can enhance your offerings, connect with your PRO Team.
This month's big question:
How are you adjusting your strategies in response to changing market dynamics?
Behind The Scenes
Riding the wave of this year's dynamic start, we're spotlighting our strategic support propelling one of our standout dealership partners forward this month.
?From the front lines of Sales to the strategic thinking in F&I, and the precision in Service, we're fully engaged, driving operations and profitability to new heights. Here’s a sneak peek at the successes we’re crafting for clients just like you!
?Grateful to journey alongside you. Your success is our mission, and witnessing your growth and achievements is our greatest reward. ??
Crafting A Dealership Experience For Every Generation (Both Buyers And Teams)
领英推荐
Can the diversity of ages in your dealership's workforce really cater to a broader spectrum of customer needs? From Boomers to Gen Z, see how each generation contributes uniquely to success and customer satisfaction. Discover how harnessing these differences can foster a culture of collaboration and drive success. Read more here.
Take Advantage of These Additional Resources
The Spirit of March Madness: A Parallel Play
The spirit of March Madness reaches beyond the hardwood floor, leading to fascinating parallels with the retail auto industry. It echoes the grueling training that happens off-camera and underpins success in both arenas. Here's a look at how the excitement of the tournament resonates with our automotive enthusiasm while highlighting our unique journey.
?? Adaptability, the key play: Much like a basketball team's skill in adapting its strategy on the court, our industry excels in evolving and adjusting, ensuring we're perfectly aligned with the market's changing demands.
?? Preparation Fuels Success: Just as teams intensely prepare to outperform on the court, dealerships focusing on training and strategy excel in customer service and sales.
?? Distinct lanes: While March Madness captures hearts with its month-long intensity, our dealership's journey is a year-round marathon, consistently evolving and thriving with each new challenge and opportunity.
Let's channel that March Madness spirit and keep crushing it! Here's to the game, the drive, and the victories ahead!
Bookmarked and Inspired: Our Top Picks and Recommendations
This book could be a valuable resource for dealership professionals aiming to supercharge efficiency and creativity and make deeper connections. It delves into redesigning our environments to reclaim our cognitive capabilities, and enable meaningful connections.
Got a book you just couldn't set down? Tell us all about it here.
Ask Us Anything
Do you have questions related to the F&I department, F&I products, sales strategies, your professional development, or dealership profitability? The best competitive advantage comes from the quality of your connections. We're here to connect with you and support your success. Write to us.