While EFG Companies sees some market strength and positive economic and consumer trends, slow inventory growth, price concerns and stubborn inflation have the potential to create revenue barriers in the second half of 2023 for the retail automotive and powersports industries.
Company leaders recommend that dealer principals, agents, and lenders approach the remainder of the year strategically focused on a return to customer-first sales methods that emphasize education and value, along with employee training to ensure effectiveness and retention.
Chief Revenue Officer
EFG Companies
“While we have seen strong growth in many retail markets, some persistent challenges remain that are preventing buyers from purchasing the vehicle of their choice. Savvy dealer principals, lenders and agents will ramp up customer engagement and employee education. Regardless of how market factors play out, numerous opportunities for revenue remain for the remainder of 2023.”
Eric Fifield
Fifield and other executives from EFG Companies emphasized that cash-strapped consumers need added value and protection for their bank account in their next automotive and powersports purchases.
Say goodbye to the seller’s market
To end the year at a sustainable level of profitability, dealers need to focus on returning to customer service best practices for both sales and the service drive. Gone are the days when sales teams can use the “take it or leave it” approach.
Agents find revenue through education
Agents armed with playbooks for electric vehicle education, debt protection products, and certified pre-owned warranty best practices will prove invaluable to dealers who need to ramp up their level of customer service in 2023.
Consumer demand is strong but economic pressures impact powersports dealers
Those dealers who continue to maximize online sales revenue opportunities, focus on localized financing, and bolster service capabilities for older models should offset potential revenue loss due to high interest rates.
Lenders bridging the gap between price and interest rates will benefit
Credit unions can give their members greater confidence to make that purchase with customer-focused education, more flexible loan terms, and valuable debt protection products.