Last week on David Long's All Things Used Cars, John Ellis provided the community with his weekly economic breakdown. As always, it was data-rich and insight-packed. We grabbed some insights! 🧐🧮
As we transition into Q3, automotive dealers can leverage the rise in consumer optimism and persistent spending trends. Opportunities abound in focusing marketing efforts and procurement strategies on younger, higher-income demographics. ☀️👍
New car prices. Despite a 4% year-over-year rise, growth has slowed recently. With wholesale depreciation increasing, dealers should price their older inventory competitively. 📈🐢
Of course, auctions are still promising inventory sources, but the additional expenses further complicate the situation. Simultaneously, a rise in repair order volume but a decline in repair dollars signals a chance for acquiring vehicles through collaborative in-house strategies. 🧑⚖️🛠️
Credit availability has tightened across most lenders, with auto-focused finance companies being an exception. Understanding high-demand and low-demand inventory aids in devising secure pricing strategies and mitigating risk. 🏦💰
With challenges in new car affordability set to continue, the spotlight falls on used car operations. Prioritizing total departmental profit over waiting for each vehicle to hit an average front-end minimum could circumvent significant losses. Dealerships must adopt efficient and profitable acquisition strategies to sustain growth in this dynamic landscape. 🚗👩🔬