EFG Companies sees several market opportunities in the second half of 2022 for the retail automotive, powersports, and F&I industries but recommends caution due to market volatility, continued supply chain and product inventory issues, and challenges to consumer financial strength. Company leaders recommend that dealer principals, agents, and lenders approach the remainder of the year strategically focused on implementing customer-first sales methods, optimizing inventory with value-driven products, and implementing training to ensure employee effectiveness and regulatory compliance.
“While there are many factors at play, smart business owners will stay strategically focused on those tasks which align with the needs of consumers while advancing their businesses in post-COVID sales models,” said Eric Fifield, Chief Revenue Officer with EFG Companies. “The new normal is now, and consumers have clearly shown how they want to do business. Regardless of how economic factors play out, there remain numerous opportunities for revenue in the remainder of 2022.”
Fifield and other executives from EFG Companies emphasized that consumers continue to look for added value in their automotive and powersports purchases.
Embracing new approaches to drive revenue growth for retail automotive dealers
Post-COVID strong consumer financial positions, favorable credit terms and pent-up demand all spell revenue opportunities for dealer principals in the second half of 2022. Dealers who embrace new selling models, train and support their sales teams, and are mindful of regulatory scrutiny will capture the sale versus others who pine for the return of the old days.
Growth in off-road, personal watercraft sales equals opportunities for powersports dealers
Consumers are anxious for adventure, and dealers with off-road or personal watercraft units who have successfully implemented online sales models with supporting F&I products and suitable margins will fare better than businesses who focus solely on front-end gross.
Agents making vehicles more marketable can deliver win-win opportunities
Agents will need to flex different muscles to provide heavier engagement as dealers adjust their operations for continued growth. Those with the right focus and service offering to help tackle current dealership challenges will be better positioned to generate more dealership revenue, attract new clients, and boost service retention business across the board.
Lenders delivering greater protection should produce greater value
Customer-focused lenders can capture valuable auto loans through affordable protection products that retain vehicle value while differentiating themselves.