Good news! The retail automotive industry just notched the strongest March sales in 20 years! According to J.D. Power, first quarter retail sales climbed 26 percent, a 70.7 percent increase as compared to March 2020. A few other indicators climbed as well. The average price of a new vehicle rose to $37,314 in Q1, nearly $3,000 more than in 2020. Retail profits from new vehicles are also expected to reach record levels of $2,225 profit per unit, up $786 from 2020. Analysts at J.D. Power forecast that March will likely be the second most profitable month on record as total retail vehicle purchases trend towards a total of $48.0 billion.
These indicators clearly signal a positive trend for the first half of 2021. But there is a potential wrinkle. Will you have enough staff – and the right staff – to support those customers driving cars off the lot? People are a dealership’s greatest asset – and often its greatest challenge. In an EFG study conducted among retail dealers across the U.S., 65 percent of respondents said recruiting and hiring high-quality people was their number one challenge.
Every dealer and general manager has made a poor hiring decision in the past, and chalked it up to “we’ll do better next time.” But what did that decision cost you? Our research found that every Poor Hiring Decision® (P.H.D) cost the dealership $75,000!
To address this challenge, we developed a Top Performer Profile, a powerful tool based on extensive, proprietary research to match individuals whose personality characteristics and work style will make them successful in the retail automotive dealer space.
Coupled with EFG’s proprietary training, EFG’s trained placements can deliver $204,605 in additional F&I income per producer, per year, based on 80 turns per producer per month. The graphic below provides more details.
In normal years, it might be easier to gloss over the bad hires and the potential lost income. But with consumer demand high as our economy emerges from the pandemic, hiring the right person could mean the difference between a market leader or a struggling lot fighting to capture sales. Take the time to invest in your people – they are your best asset.
The team at EFG Companies brings a wealth of strategic business acumen and tools to drive value for our dealer clients. We’re not just your F&I provider – we are your business partner. Contact us today to learn more about our profitable solutions for your business.