Category: EFG Companies

Tired of Your Cookie-Cutter Warranty Administrator?

Post author By efgmarketing
Post date August 30, 2024

Beyond the Sales Pitch: The True Role of Your Warranty Administrator

In the fast-paced world of automotive sales, it’s easy to focus solely on numbers: how many warranties were sold, how much profit was made, and whether or not we can offer a cheaper price than the competition. However, if your view of a warranty administrator is limited to just selling products, you might be missing out on a crucial aspect of their role that could significantly impact your dealership’s success.

More Than Just a Salesperson

A warranty administrator should be more than just a conduit for selling warranty products. Their role is multi-faceted and vital to the overall health of your dealership. Here are several key areas where a proactive warranty administrator can make a difference:

EFG Companies

Adding a Spark to EV Sales

Post author By efgmarketing
Post date April 26, 2024

The latest Gallup report sheds light on the current state of the electric vehicle (EV) market. Currently, only 16 percent of Americans are engaged with the EV market, either as owners or potential buyers, a figure that has remained stable over the past two years. This small number has prompted some automakers to scale back their EV investments while dealers struggle with moving units off their lots.

There has been slight momentum in 2024. According to Kelley Blue Book, nearly 269,000 electric vehicles were sold in the U.S. in the first quarter, a 2.6 percent increase from the same period last year, but a 7.3 decrease from the final quarter of 2023.

What’s behind this lackluster adoption? Industry analysts agree on three specific roadblocks: price, infrastructure concerns, and range anxiety. According to the Kelley Blue Book Report, EV ownership is currently skewed towards upper-income Americans with 14 percent owning an EV and 61 percent of lower-income respondents expressing disinterest in EVs.

Tags electric vehicles, EV, EV new car sales, EV sales, EV used car sales, EVs

EFG Companies

Three-Pronged Focus Delivers Value

Post author By efgmarketing
Post date December 15, 2023

In October of this year, average new car transactions were about 21 percent higher than the same month three years ago when no end was in sight for the pandemic. Conversely, average transaction prices are also about 20 percent higher than in October 2020. Despite moving more metal, falling profits have dealers feeling particularly uncomfortable; hence, the automotive industry saw declines in the Q3 2023 Cox Automotive Dealer Sentiment Index, which declined for five consecutive quarters.

According to Cox Automotive economist Jonathan Smoke, “The latest index indicates that persistently high interest rates and lingering concerns about the economy and market conditions are dampening overall dealer sentiment. Franchised dealer optimism is on the rise, whereas independents are less hopeful due to affordability issues that more acutely affect the used-vehicle market and their businesses.”

With the UAW strike in the rearview mirror and inventory strong, there is room for optimism for dealers facing a hesitant buyer’s market. According to Kelley Blue Book data, new car average transaction prices (ATP) stayed flat month-over-month in October at $47,936. Cox Automotive reports that new vehicle transaction prices fell more than 3.5 percent year-to-date as downward price pressure continues to favor buyers in the market. Manufacturer incentives also increased to an average of $2,400 in October as OEMs lent support to move units off dealer lots.

Tags predictions