Auto News and Market Trends 24-07-2024

Is a New Era Dawning for Automotive Dealership Buy-Sell Activity? The automotive industry is on the brink of significant change. With potential rollbacks of EV mandates and a relaxation of other regulations, we could be witnessing a new era of dealership buy-sell activity. Why the Shift? Evolving Regulatory Landscape: A potential easing of regulations, particularly around electric vehicles, could open up new opportunities for dealerships. This could lead to increased demand for dealerships, especially those with a strong focus on traditional ICE vehicles. Economic Uncertainty: Economic factors, such as interest rates and inflation, can also influence dealership valuations and mergers. A stabilizing economy could create a more favorable environment for deal-making. Technological Advancements: Rapid technological advancements, including AI, autonomous driving, and connected cars, are reshaping the automotive industry. Dealerships that can adapt to these changes and invest in new technologies may become more attractive to buyers. What Does This Mean for Dealerships? Increased Valuation: Dealerships that are well-positioned to capitalize on these trends could see an increase in their valuation. Strategic Partnerships: Strategic partnerships and mergers can help dealerships expand their reach, improve their market position, and increase their profitability. Focus on Digital Transformation: Dealerships that embrace digital technologies, such as online sales and virtual showrooms, will be better equipped to compete in the future. What's Next? As the automotive industry continues to evolve, it's essential for dealerships to stay informed and adapt to changing market conditions. By understanding the potential impact of regulatory changes, economic factors, and technological advancements, dealerships can make informed decisions about their future. Let's Discuss: What are your thoughts on the potential impact of these factors on the automotive dealership industry? Share your insights and predictions in the comments below. #automotive, #dealership, #EV, #automotiveindustry, #futureofauto

Interesting story here from Matt Brogan in GoAutoMedia, quoting the inimitable Sean H. from Toyota Motor Corporation Australia. Toyota saw wait times for key models like RAV4 and LandCruiser spiral to 2+ years during the COVID-era shortages. While the company's remarkable ability to cultivate loyalty saw it come out the other side with reputation and customers intact, it has made some changes for the massively in-demand new Prado 4x4. Dealers will get a crystal clear indication of their rolling 12-month supply, and importantly will not be able to order any more vehicles beyond this allocation until more stock is added to the pipeline. Customers will either need to wait, or shop around at multiple dealers. "We learned a lot over the last five years … and we will not go back to the days of open-ended order-taking for such a popular model. It is not in our own interest, and certainly not in the interest of our customers,” Hanley said. The demand for the new Prado is stunning. The company will receive around 27,000 units next year, and claims to have pre-sold 17,000 already. This is for a vehicle that's priced between $72,500 and $99,990 before taxes and fees. Gee, who wouldn't kill for that sort of customer retention... John Mellor LINK: https://lnkd.in/gmvpDnwr

Navigating the Shift to Smaller Vehicles: Adapting to the Compact Car Surge: Is Your Dealership Ready? The automotive landscape is witnessing a significant shift as consumers gravitate towards smaller, more affordable vehicles. With the average new car price exceeding $47,000, many buyers are opting for compact and subcompact models, leading to a notable increase in sales for these segments. Consumer Behavior: High vehicle prices are driving consumers to seek economical alternatives, boosting demand for smaller cars. Market Impact: Manufacturers and dealerships with extensive inventories of larger vehicles may face challenges in this evolving market. AccuTrade equips dealerships with real-time market data and advanced appraisal tools, enabling them to: Accurately Appraise Trade-Ins: Quickly assess the value of smaller vehicles entering the market. Optimize Inventory Acquisition: Align purchasing strategies with current consumer preferences. Enhance Profit Margins: Make informed decisions that reflect the latest market trends. Is your dealership prepared to meet the rising demand for compact vehicles?

It's never too early to start looking ahead at an industry sector. My evolutionary SaaS company Vizen Analytics focuses primarily on assisting the consumer goods industry solve big supply chain challenges and out perform their competitors with visionary forecasting and optimal inventory management. Let's see what's coming ahead in #2025 starting with the #automotive sector: CarEdge brings some serious data to the conversation as they weave in data from Cox Automotive Inc. and FRED sales trends and statistics. And it's good news for #consumers and bad news for OEM #manufacturers who may take a hit in #profitability. CarEdge’s Ray Shefska says that automakers will be pressured to lower prices one way or another. “They don’t like to lower MSRPs, it’s almost seen as a sign of defeat. But what automakers are more than willing to do is increase incentives. That’s exactly what I expect to see in 2025.” https://lnkd.in/gCRdEwsk

The U.S. auto market is experiencing a standoff between consumers, dealers, automakers, and lenders, resulting in a flat sales rate of 15.1 million vehicles in August. Analysts cite affordability and uncertainties as possible reasons for the market's stagnation. Key takeaways: - Seven automakers reported sales increases in August, but the jumps were underwhelming compared to expectations. - GlobalData adjusted its 2024 sales projection downward by 200,000 vehicles due to challenges faced by consumers in managing affordable monthly payments. - Affordability remains a key issue, with average incentives rising nearly 60% and only 13% of vehicles selling above sticker price. #NNNPro #Dealership #Capital

Vehicle age is up and there are more cars on the road than ever. What does this spell for dealers? Let's dig in 👇 According to a recent S&P Global Mobility Report: 🗓️ The average age of vehicles is now 12.6 years, up two months from last year 🚦 Total vehicles on the road increased by 2 million from the previous year 🔧 110 million vehicles are in the prime range for aftermarket services (ages 6 to 14 years) What's this mean for dealers? 📈 As consumers hold onto their cars longer due to new vehicle high prices, the demand for reliable used vehicles is skyrocketing 💸 With fewer newer cars available, older vehicles are retaining their value longer. Dealers can capitalize by offering well-maintained, older models 🧰 Older vehicles will require more maintenance. Dealers with service departments can offer maintenance and repair packages, tapping into new revenue streams Here are the challenges we see: 🥊 The rising demand for used cars means more competition. Standout customer service, clear pricing, and having a robust and diverse inventory will be critical 🔎 With more people holding onto their vehicles, finding quality used inventory will become more challenging. Dealers need to be resourceful in sourcing and maintaining inventory to meet demand These trends present opportunities for growth, however, staying ahead of the curve will require strategy and a focus on both sales and service excellence If we've learned anything over the years, it's that our dealer partners are resilient to change and an evolving market. We're here to power and support their evolving inventory financing needs. Let's drive the future of the automotive together 🚙

🚗 The Automotive Industry’s Road Ahead: A 2024 Recap and 2025 Outlook The automotive retail industry is hitting its stride, with nearly 16 million new car sales in 2024—a swift recovery from the pandemic’s challenges. Dealerships are buzzing, with over 70% of car shoppers completing their purchases in-store this year. Key Highlights: • EVs vs. Hybrids: Despite the EV buzz, hybrid sales stole the show. Toyota alone sold nearly a million hybrids, while EVs accounted for just 10% of total sales. However, shopper interest in EVs is rising, with 31% of gas vehicle shoppers now considering an electric future. • Inventory Rebounds: New car inventory grew to over 3 million units, along with incentives, keeping sales teams busier than ever. Interestingly, more dealerships are focusing on acquiring inventory—up from 9% in 2023 to 16% in 2024. • AI Adoption: AI is making its way into dealerships, with 28% already using it and seeing positive results. Still, 62% of dealers remain cautious about its potential, though optimism for its future impact is growing. As we head into 2025, dealers have a lot to look forward to—but also much to prepare for. From staying ahead of shifting consumer trends to leveraging AI and training sales teams on pre-pandemic tactics, the opportunity to grow is immense. What’s your take on the road ahead for automotive retail? Let’s discuss! #AutomotiveIndustry #CarSales #EVs #Hybrids #DealershipTrends #AIInAutomotive #CustomerExperience #2024Recap #2025Outlook #InnovationInRetail

The U.S. auto industry is entering a "new normal" where automakers and dealers will labor harder to maintain profits," according to a Forbes article citing the Market Outlook Report created by Dave Cantin Group and Kaiser Associates.  The piece also highlights the report's prediction that 2024 "won't look quite as attractive as it did in 2023, but better than it did (for manufacturers and dealerships) in 2019." This makes 2024 the most important financial performance year for determining dealership values in a very long time. Read the full article here: https://bit.ly/3wE91Ys

Partnership Announcement Coverage in a Click and Village Cadillac Toyota Toyota: Village Toyota and Coverage in a Click Partner to Enhance Service and F&I Offerings. Village Cadillac Toyota Toyota, a leading automotive Dealership in Homosassa Florida, has partnered with Coverage in a Click, an automotive-first marketplace focused on Service and F&I, to provide customers with a seamless and convenient way to purchase service and F&I products. Through this partnership, Village Toyota will have a branded storefront on Coverage in a Click's platform, where customers can easily browse and purchase a wide range of products, including VSC - Vehicle Service Contracts, ancillaries like Tire & Wheel and Paint & Fabric, and Pre-Paid Maintenance Plans. The partnership between Village Toyota and Coverage in a Click is a testament to the growing demand for digital solutions in the automotive industry. By leveraging Coverage in a Click's platform, Village Toyota can provide customers with a convenient and transparent way to purchase service and F&I products, ultimately enhancing the overall customer experience.