Category: Industry Trends

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Industry Trends

Diving Into Digital

Eric Fifield Chief Sales Officer EFG Companies
Contributing Author: Eric Fifield Chief Revenue Officer, EFG Companies

Did you take advantage of Amazon Prime Day? Spend a little time investigating the online deals promoted by Amazon or a dozen other major online retailers? Did you have an enjoyable digital experience, or form an opinion about a retailer thanks to your online shopping trip?

If you are like the majority of consumers, you relied on brand perception to point you to certain retailers. You researched your purchase against a couple of other online options. You vetted the product by checking reviews and ratings, and you hit the “Buy Now” button. You didn’t visit a store or consult an expert.

The importance of a digital presence is only continuing to grow in retail automotive. EFG Companies recently released a finding from its national consumer research study revealing the critical role of a dealership’s online presence in making a sale. According to the 1,500 respondents, today’s digital consumer begins their buying research process online. An Ernst & Young study showed that more than two-thirds of customers now spend less than 10 hours to research their vehicle purchase – down from 15 hours in 2016. This same study showed that consumers spend more time online researching a car than any other online purchase!

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Economy Industry Trends

Headwinds – or Smooth Sailing?

Eric Fifield Chief Sales Officer EFG Companies
Contributing Author: Eric Fifield Chief Revenue Officer, EFG Companies

Many toasted the end of 2017 with a collective “Whew – we made it!”  The year was one of contradictions. If you are feeling a bit whipsawed – you’re not alone. From political gains/losses to cultural uprisings, there was no shortage of news.

With 2017 in the rear-view mirror, here are a few data points that characterize the tumultuous year.

  • Sales of light trucks and SUVs finished strong while sedans bumped along the bottom of the market metrics.
  • While gas prices increased, and even spiked regionally during last year’s natural disasters, improvements to gas mileage efficiency and lighter body stylings helped buffer the impact.
  • Even though the major OEMs saw overall sales declines, the final numbers were still the fourth highest since the end of the Great Recession.
  • OEM incentives reached record highs, and the volume of lease returns spiked. But used car inventory continued to tighten as the year’s natural disasters prompted the need for replacement vehicles.
Source: Wall Street Journal
Source: Wall Street Journal
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Industry Trends

Your 2018 To Dos

Contributing Author: John Stephens Executive Vice President EFG Companies
Contributing Author:
John Stephens
Executive Vice President
EFG Companies

It’s that time of year again when everyone evaluates their yearly accomplishments, both personally and professionally, and begins making their 2018 resolutions. So, what were the automotive industry’s accomplishments?

Despite a string of severe natural disasters, unit sales volume is roughly on par with last year’s volume. Both 2017 and 2016 represent some of the strongest sales numbers in over a decade. That’s a win in my book.

The Consumer Financial Protection Bureau (CFPB) is beginning to be reined in by Congress. After years of lobbying for more oversight over the CFPB, dealer and auto lending initiatives are finally making headway on the Hill. Talk about another reason to celebrate!

Going into 2018, pre-owned inventories are finally right-sized for consumer demand. There’s no longer too much or too little inventory. We’re now at “just right”. Because of this, pre-owned vehicles are holding their value, and dealers have a better opportunity to increase profitability through CPO programs.

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