It\u2019s only February, and 2025 has already brought a whipsaw of headlines and a host of actions that could have a significant impact on the retail automotive industry. From talk of tariffs against supply chain critical countries like Canada and Mexico to the cease-and-desist order levied toward the Consumer Financial Protection Bureau, 2025 has started with a bang.<\/p>\n
Clearly, you and your dealership have no control over these actions. Even the ability of the automotive industry and lobbying groups to impact administrative efforts seems questionable at times. But you\u2019ve got vehicles on your lots that need to be sold. My recommendation \u2013 just get back to basics with fundamentals that you can control.<\/p>\n
Selling a new or used vehicle in today\u2019s environment is very different from two to three years ago. Many dealers who ramped up staff after the pandemic operated with fewer units and a buyer who was forced to take what they could find. Interest rates hovered around 3 percent, and vehicle prices were roughly 47 percent higher. Turning a profit on units sold was much easier.<\/p>\n
Today, new-vehicle interest rates for prime customers are around 9 percent, and there is plenty of inventory for buyers to purchase the vehicle they want at the best price they can get. To complicate matters, continued economic uncertainty has many consumers pausing large purchases. Your staff no longer has an easy sell \u2013 and they may not know how to sell under these conditions.<\/p>\n
Dealers who are focused on training staff on a needs-based sales approach will be in a much better position to make the sale. It takes time \u2013 and specific skills \u2013 to really understand why a customer is shopping for a vehicle and to build the best deal for their unique situation. If you don\u2019t have customer-focused salespeople on your staff now \u2013 recruit them! Bring in the right people to meet the current environment. Your team members who performed well during the pandemic may not have what it takes to perform in today\u2019s environment.<\/p>\n
Once you have the right staff with the right skill sets and training, empower those people by differentiating your dealership from the competition. Work with your OEMs and captive lenders to maximize incentives. Add F&I products to those incentives that are truly good for the buyer and deliver optimal revenue for your dealership. For example, during these uncertain economic times, debt protection products such as WALKAWAY<\/a> could mean the difference between a confident customer willing to purchase and an unsure customer who decides to wait\u2026or buy from the competition down the street.<\/p>\n These basics \u2013 the right people, the right training, and the right differentiating protection products that truly meet the consumer\u2019s needs — will deliver more revenue. Remember, half of your profit should be captured at the back end of every sale.<\/p>\n