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Let’s be real – sales isn’t always smooth sailing, especially these days. With rising inflation and interest rates affecting customer spending habits, even the most dedicated sales teams can find themselves facing unexpected challenges. One minute, you’re cruising along, hitting targets left and right; the next, you’re stuck in a sales slump that feels like rush hour traffic. But here’s the kicker: slumps don’t play favorites, and in this economic climate, they’re more common than ever. They can happen to anyone, regardless of experience or past success. The million-dollar question is: will you let it define you, or are you ready

In today’s automotive landscape, consumers and dealerships are caught in a complex web of economic pressures. With high interest rates, persistent inflation, and increase in price of inflation, the dream of owning a vehicle is becoming increasingly difficult for many individuals. Explore 2024 automotive market and leasing trends, with strategies for dealerships to navigate economic pressures and boost profitability. The Current Economic Climate Recent data shows a mixed picture of consumer spending. While May saw a slowdown, early June experienced a slight resurgence. However, overall growth remains soft, primarily due to affordability concerns. As we moved into July, there were signs

In today’s fiercely competitive auto sales environment, success hinges on more than just moving inventory. It requires a holistic approach to boost sales, enhance profitability, elevate customer satisfaction, and retain top talent. Innovative dealership training programs are at the forefront of this transformation, offering a strategic advantage that reshapes the entire dealership experience. Compelling data underscores the value of such transformative training approaches: 65% of employees report that the quality of training and learning opportunities significantly boosts their engagement at work. This engagement is crucial, directly correlating with their performance and motivation. A Salesforce report reveals that top-tier sales training can

“We finally have a decent supply of new cars on the lot, but my profits are taking a nosedive!” This sentiment is becoming common as the market shifts from a seller’s stronghold to a buyer’s market. While a well-stocked inventory is a welcome change, it also introduces fiercer competition. It leaves many dealers wondering: How can we grow profitability in this new landscape? The answer lies not just in experience but in strategic optimization. This is where dealer consulting partners come into the picture to serve as your strategic navigators, steering your dealership toward success amidst the competitive currents of the

As a Sales or F&I Manager, the journey toward excellence begins with a commitment to mastering essential skills. These aren’t just tools of the trade; they’re the building blocks of a thriving career and a stepping-stone to leadership roles. Imagine navigating every negotiation with finesse, turning every customer interaction into a relationship, and leading your team not just to meet goals but exceed them, positioning yourself perfectly for the next big leap to senior management. Ready to transform your approach and climb the ladder of success? Let’s explore the skills for sales and F&I that make greatness and leadership possible. 1.

In the ever-evolving landscape of auto dealerships, diversity isn’t limited to the range of cars in stores; it extends to the workforce as well, encompassing a wide variety of backgrounds and generations. From Baby Boomers to Gen Z, each generation brings its unique flair to the showroom floor. Does multi-generation workforce in dealerships play a role in forming a unified team and catering to a diverse range of customers? Let’s take a closer look, and you be the one to say! Workforce generational breakdown Source: Purdue via John Hopkins From Boomers to Zoomers: The varied talents each generation adds to the

The auto industry is steering through a terrain marked by increasing loan rates and delinquencies, facing the dual challenge of maintaining profitability while uncovering ways to assist consumers in purchasing the vehicles they desire and need. Dealerships dedicated to reducing financial stress for buyers, particularly auto loan delinquency, and enhancing customer service are adopting innovative financial strategies and prioritizing the customer’s needs. Let’s explore how beneficial financial solutions and a strong commitment to service play a vital role in fostering mutual benefit for both customers and dealers. Interest Rates Hit the Brakes on Affordability With inflation impacting every sector, the auto

As the final miles of 2023 unfold, dealerships find themselves at a critical juncture, headlights illuminating the road ahead into the promising expanse of 2024. The automotive industry has left imprints that demand attention — patterns that offer valuable insights for dealerships crafting their course forward, like road signs. Unveiling the changes and opportunities, we explore three defining trends shaping the course of automotive progress and influencing dealership success for the approaching journey in 2024. Source: Experian Automotive VIO as of September 30, 2023 (all motorized, road-registered vehicles) | Automotive Market Trends Q3 2023 Surging New Vehicle Registrations and Shifting Preferences

The automotive landscape is shifting due to affordability, increasing interest rates, and supply chain issues. The average age of cars and light vehicles in operation (VIO) in the United States has risen to a new record of 12.2 years. With a shift in the automotive landscape where buyers are holding onto their vehicles longer, dealerships are pivoting their focus to the service department to maintain profitability. But the critical question is how do you turn your dealership into your customers’ top choice, ensuring they stick around and never think of servicing elsewhere? Hence, implementing a well-crafted Dealership Loyalty Program, with its

In the ever-changing world of automotive sales, the road to success is full of twists and turns. As we navigate further into 2023, the automobile industry is once again witnessing shifts that demand our attention. The industry is in a state of flux, presenting both uncertainties and possibilities. We’ll explore these car industry trends and their implications on dealership profitability. As we navigate these trends and dissect their implications, one thing becomes clear: adaptability and innovation will be the keys to success in this evolving automotive landscape. Buckle up as we explore these trends in detail and uncover strategies to steer

In a challenging financial landscape, the impact of rising interest rates on F&I (Finance and Insurance) departments of dealerships cannot be overstated. Recent data from the first quarter of 2023 paints a mixed picture for publicly traded dealership groups. As per automotive news report, four of the six major groups experienced a year-over-year decrease in their average F&I gross profit per vehicle retailed. To emphasize, these fluctuations underscore the complex relationship between higher interest rates, vehicle affordability, and F&I sales. In the past year, there has been a noticeable increase in interest rates, affecting various sectors of the economy. For our

The automotive landscape has witnessed a remarkable growth in the number of sweet spot vehicles in operation. These vehicles, typically 6 to 12 years old, are in the optimum spot for aftermarket services such as brakes, suspension, and engine repair. Recent data reveals that nearly 35% of vehicles in operation fall within this sweet spot, representing a substantial increase of 19% over the past four years. This surge in potential customers calls for a strategic shift in focus within the F&I department. By aligning the right strategies and focusing on this growing segment, dealerships can unlock untapped potential and drive F&I

As we navigate through the phase of growth and opportunity in the retail auto sector, it’s essential to take a moment to reflect on our personal and professional goals for the year ahead. If you’re in the sales or finance and insurance (F&I) department, maximizing your potential and performance should be at the top of your list. But how do you achieve this balance of talent, proficiency, and preparedness? Let’s explore the importance of creating a development roadmap and preparedness to complement your professional goals and how it can make all the difference in your sales and F&I growth and success.

  The retail auto industry has undergone significant changes over the past few years, including shifts in consumer behavior, supply chain disruptions, and technological advancements impacting how dealerships operate. The current challenges of declining sales and affordability issues, along with the increasing number of older vehicles on the road, create an opportunity for dealerships to focus on areas like F&I, which can help maintain your dealership profitability. Analyzing the most significant trends shaping the retail auto industry could help manage their impact on dealership profitability. Therefore, it is critical to monitor the significant shifts in the industry, such as: 1. New

Inflation remains high despite prices cooling in July and August. In addition, rising interest rates indirectly increase the cost of borrowing, making it more expensive to buy a vehicle. As per Kelly Blue Book data, the average price of new vehicle prices increased by 12% from July last year, and used vehicle prices have gone up by 40%, as per data released by the U.S. Bureau of Labor Statistics. Inflation and high prices have caused issues of vehicle affordability for consumers and impacted dealers’ profitability. However, there is light at the end of the tunnel for both consumers and dealers. F&I

Hiring the right person is critical to optimizing success in every department of your dealership. We put a lot of time and resources into the process for a good reason. Recruiting the wrong fit for an important role can be a huge inconvenience. Not to mention, a potentially significant waste of time, money, and increase in employee turnover. Learning to search for qualified professionals and assessing their traits can enable you to hire, retain, and train the right talent for your dealership. Identifying the right person for the right role requires two essential factors. 1. Awareness of your dealership culture: Self-awareness

Great dealerships need great leaders Leadership is a word we often hear—simply put, it is an individual’s ability to influence, motivate, and enable others to contribute toward success. Though it is a role some tussle to uphold, it can be mastered. If you’re a current or aspiring manager, it’s crucial to focus on good leadership as it can be a huge asset to advancing your career. In addition, dealerships need great leaders as leaders help direct a dealership’s resources for improved productivity and achievement of goals allowing for mutual success. Effective leadership comes with life-long learning about oneself and the responsibilities

Employee turnover in dealerships is a long-standing challenge. A COX report states that 72% of franchised dealers say finding and hiring the right employee is challenging. The turnover eats into dealers’ profits, and impacts revenue in many ways, including wasted time, resources, and training costs. In addition, the improper fit delivers poor customer experience and impacts sales and upsell opportunities. Your dealership could combat high employee turnover and nurture a top-performing team for the success of your stores. It could be done in the following ways: Understand the prime reasons why they quit Build a positive environment and productive team Combating

Quality has no substitute: Don’t build a system in which mediocrity is rewarded Sales and F&I teamwork: In a meeting with one of our long-associated dealer clients, the discussion kicked around why it is critical to have a team where all players fit best together and not be separated like oil and water. Bringing the Sales team and F&I together and encouraging Sales and F&I teamwork takes effort, but this is what differentiates a thriving dealership from a mediocre one. On one hand, there is a Sales team chasing the number of vehicles sold, and on the other, there is an

Market conditions and affordability Understanding your consumers and their buying behavior is as important as keeping an eye on your vehicle tires. Tires have an enormous influence on the safety and performance of an automobile. Making sure you don’t drive on a flat tire is key to vehicle performance and so is keeping a close watch on market conditions to assure your continued sales success. Therefore, creating affordability for car buyers and planning for changing conditions is a sales professional best practice. Affordability is an issue looming over the automotive industry. It is not new that inflation is on the rise

Dealership life is certainly not monotonous. Dealership personnel comes across new opportunities, challenges, and prospects to close the deals and meet sales goals. Assisting customers find the desired vehicle, providing them with the necessary information, or managing objections is a significant part of one’s routine. In addition, dealership teams manage many low-key tasks essential to efficiently carry out their day-to-day duties. Those tasks sometimes convert to common dealership challenges. For example, locating the right vehicle from the large inventory lot, securing new leads, and protecting assets. In other words, oftentimes, even small tasks could be more challenging than one might imagine.

The F&I (Finance and Insurance) department is often the last phase of the vehicle buying process. Strategic interaction between the F&I Manager and the customer plays a critical role in overall F&I profitability. Well managed interactions allow F&I managers to properly assess their customers’ needs in relation to their driving behaviors to match them with the right F&I products. Highly successful F&I managers understand that the skills and attitude needed to excel in this role can be learned and developed over time. Therefore, we have created a list of F&I Manager tips and best practices to run a successful F&I department.

Why professional dealership training is critical for your success One of the core responsibilities of dealership leaders is to hire great people to ensure that their staff contributes to the store’s profitability and success. There is no single formula to achieving that. However, professional dealership training plays a crucial role in attaining mutual growth and success. Furthermore, in the era of microwave mentality, shoppers want a new kind of buying experience. They look for convenient options to buy vehicles and lightning-fast response time. The customers depend on your sales team to complete the purchase, and you depend on them to meet

Understanding the auto industry and trends in 2022-23 to increase dealership profitability Tracking the automotive market and key trends in 2022-23 could help you gain an edge over other players in the auto retail industry and influence your dealership profitability in a positive way. Before we dive deeper into the three key strategies to improve your dealership profitability, let us look at the consumer and automotive industry trends that may impact your dealership’s bottom line. To emphasize, it is critical to watch your consumers’ behavior and the auto industry’s inclination before planning a strategic move in anticipation of growing profits. Three

The inventory shortage took center stage in the automotive industry in 2021. As the chip supplies are loosening up, the worst of empty-lot situation is likely behind us. However, the vehicle supply might not improve before the year’s second half. The question is, how will the new year fare for the dealerships? Will there be a recovery in production and growth in new car sales? Let’s look at what might lie ahead of the automotive retail industry in 2022. 1. Growth in new car sales driven by pent up demand Consumer appetite for vehicles continues to grow, and the tremendous desire

How to find the right dealer reinsurance provider and profit-sharing program that works for the Dealer’s best interest to generate wealth and financial security. One of the most valuable assets a Dealer has is often neglected and misunderstood. Running an effectively managed reinsurance program with the right provider generates security and wealth, while allowing the Dealer to stay in control. Analyzing your current reinsurance program or shopping for a new one is no easy task. However, carrying on with no dealer reinsurance program or a poor reinsurance program can be costly to a Dealer’s long-term wealth. Many Dealers assume all reinsurance

You have worked hard all year to navigate inventory limitations and manage consumer demand. With Christmas around the corner, most of us are preparing for the final days of December in the dealership. In a year different from any other, what should you expect from customers this year? How can Salespeople and Finance Managers close more car deals during the end of year rush? Historically, the highest volume of sales at the dealership, occur in the final week of the year. Although we are seeing a decrease in manufacturer incentives this year, consumers are still very likely to car shop between

Tips for recruiting and retaining the right talent in your dealership, and manage labor shortage Hiring and retention in auto industry Economic data indicates that over the past month, job openings have been rising considerably. Hirings are also up, but the companies are not coming close to filling the number of vacant positions or dealing with labor shortage in the auto industry. The need for the workforce has been high, especially when the demand for cars and trucks is rising. The auto industry has been facing hiring challenges before the pandemic, and dealerships will continue to have one after the pandemic

The road to dealership success is constructed with proper hiring practices, employee development, and retention. Dealership employee development and proper hiring is an investment that will deliver tremendous benefits. Without a doubt, you have given it a thought and strived to raise employee efficiency and retain them for longer. However, what if you had a proven method to identify the right talent?  If you had an unswerving strategy to place your hire in the role where they would perform their best and positively impact your profitability? If we tell you there is a way to eliminate all the guessing work and

Market, car sales trend, and dealership profitability influenced by inventory shortage and high prices  New vehicle sales for September 2021 are expected to decline 25%, hurt by a shortage in inventory even as consumer spending remains strong, reported JD Power and LMC Automotive in a joint forecast. Thus, the dealership’s profitability in inventory shortage could be impacted. “September results show that there are simply not enough vehicles available to meet consumer demand,” JD Power said in a statement. The gap between supply and demand is rising and is causing a record high price of new vehicles. According to a new report

The average age of cars and light trucks in the US rises to 12.1 years. What does it mean for your dealership? Americans are keeping their vehicles longer The average age of cars in the US hit a little over 12 years. While the average age of the vehicles has risen steadily over the last 15 years, the trend has accelerated due to a steep decline in new vehicle availability and sales, according to IHS Markit, a leading data and information provider. Improved vehicles quality is another contributing factor. As a result, the consumers are comfortable keeping their cars and trucks

Implement these strategies now to boost dealership sales and thank us later. Every business wants to grow more, succeed, and increase profit. Dealerships are no different when it comes to profitability. Yet, there is no simple formula to boost dealership sales. Your profitability depends on multiple factors, and identifying such factors is not as simple as it may sound. As they say, the road to success and the road to failure are almost exactly the same. The only difference is the road to success is much longer. Boost dealership retail and f&I sales by following these 4 steps: 1. Level up

GAP claims are rising. What products are you offering? How are they going to impact you and your customers?. GAP claim are rising: The influencing factors GAP claims are designed to protect consumers by paying the difference or the gap between the value of a vehicle at the time it is totaled. That is, stolen or not recovered vehicle value and the balance owed to the loan. For dealers, the product helps customers who suffered from the total loss back to the market for a new car. To emphasize, the frequency of GAP claims is rising to new levels. This could

5 strategies to improve your dealership from being good to great Greatness is not a function of circumstance. Greatness, it turns out, is largely a matter of conscious choice and discipline— James C. Collins. Transform and improve your dealership from being good to great: Every dealership strives to grow profits, and they have their own set of approaches to attain growth. The definition of success and methods to obtain the perceived success varies from dealer to dealer. However, it is always a top challenge to find the key to being better than the rest and transitioning from being merely good to

Get deep insights into your potential customers through this marketing tool for dealerships. Have you heard of the saying, there are no traffic jams along the extra mile? This is exactly what this new gear could do for you. The digital, AI-powered tool gets insights into your customers like no one else does so that you could go an extra mile to learn about your customers. It can help you put your inventory in front of the right car shoppers first and not stop marketing to them until they buy. Additionally, this marketing tool for dealerships could provide you valuable information

The automotive industry is still under uncertainty. Chip shortage due to the use of silicon in COVID vaccines and an uptick in demand due to a rise in wages and stimulus checks is drastically impacting the industry. So much so that Production is not able to keep pace with demand and several OEM’s, including Ford and GM have idled shifts as a result. Consequently, it has been a challenge for the dealerships to find a reliable way to procure used vehicles. According to the Detroit Bureau publication, many companies decided to temporarily pause their production due to the semiconductor shortage. For

Affordability declined to a new low New car prices are at recorded high. As per the COX Automotive and Moody’s analytics, new vehicle affordability declined to a new low on the affordability index this June. In other words, weeks of income needed to buy a new light vehicle rose to 37 weeks compared to 35.5 in May.  Source: Cox Automotive In July, the average new car in the U.S. carried a sticker price of $41,263. As you may know, the reason is the worldwide shortage of microchips that slowed the production of cars. The average sticker price of non-luxury vehicles rose

What do top performing dealerships have in common? No two dealers are exactly the same in terms of their business and management style. Every dealership has its own culture, environment, set of traits, and mindsets that dealers and their employees bring in. All those factors greatly influence the success of the dealership. Some dealers focus on providing the best customer experience and go the extra mile to help customers, whereas other dealers have excellent synchronization among their departments. As a result, they reap high monetary benefits. Notably, the top performing dealerships have a lot in common.  While the approaches to being

Finding and hiring the right people for the job is a challenging task As the businesses return to normal and the Fed is pumping money to revive the economy, the retail auto sector is experiencing a sharp rise in demand. For example, Ford Motors Company sales increased by 65% during April 2021.  On the other hand, the chip shortage has disrupted the global supply and chain, which led to skyrocketing prices of the new and used inventory. Regardless, car shoppers are not expecting to delay their purchases. This means the dealerships need well-trained staff to efficiently assist potential customers. A person

Tips, Tools, and Strategies to Earn Customers’ Trust and Gain Positive Reviews The role of transparency, ethics and compliance in improving F&I and cars sales: Turning to used car inventory is the need of the hour during the inventory shortage. However, selling used cars could be a tricky proposition for dealers. Transparency, ethics, and compliance help grow your F&I and car sales, and take your profits to the next level.  During their time on the road, cars face several potential hazards ranging from damage to neglect, including accidents, overloading, and often a constant lack of maintenance. Therefore, it is critical to

Your weekly checklist to become an exceptional F&I manager or director and reap the rewards.  F&I managers weekly checklist to stay on track and profitable: A wise man once said success comes from curiosity, concentration, perseverance, and self-criticism. Yes, the wise man was none other than Albert Einstein. He could not speak until he was four and did not read until he was seven. However, his curiosity and diligence brought him success. If you never failed, you are yet to learn some crucial lessons in life. But if you did, you are smarter than before and know how to better manage

Balancing Professional and Personal Wellbeing at Dealership As they say, with great power comes great responsibilities. The job of dealership personnel is the one that demands the ability to work long hours and sometimes seven days a week. It requires a high level of patience, skills to sell more products to meet financial objectives, and negotiate and create leverage with as many lenders as possible. Additionally, the Sales and F&I teams are also responsible for safeguarding the auto dealership from compliance issues and liabilities. With this in mind, balancing the professional and personal wellbeing at dealership needs thoughtful consideration.  Meeting financial

A shift in the auto market The used-car market is booming, making it an opportune time to offer valuable F&I products to the consumers.  The global chip shortage has disrupted the global supply chains and impacted the delivery of new vehicles.  As the auto retail industry pivoted towards the used cars inventory to keep up with demand and used cars become the industry’s hottest commodity, there is a big opportunity for the F&I department. With the businesses reopening, stimulus checks, and tax refunds deposited in people’s bank account, the demand for used cars will increase significantly. Evidently, as every dealer focuses

Your guide to increasing customer satisfaction index (CSI) and revenue of your car dealership. Consistent customer experience and CSI score in the car dealership Your customer satisfaction index (CSI) scores directly influence your car dealership profitability. When it comes to customer satisfaction in a car dealership, often two departments, sales, and service, are considered accountable to elevate the satisfaction score. But it is essential to realize that providing consistent positive experience across all the departments, including the Finance and Insurance (F&I) department, makes the customers happy. In addition, your F&I department is where the customers spend a considerable amount of time

Hiring and retaining the right employee at your dealership Hiring and retaining the right employees is a challenging task. While the challenge is not a new one, it has become more critical than ever due to new generations- Young millennials and Gen Z, entering the workforce. Consequently, bringing with it a new set of values, beliefs, and expectations. The new generation is the true digital native and brings fresh ideas and skills to your workforce. Still, it could lead to problems if you do not manage employee satisfaction appropriately. Therefore, it demands critical considerations to hire, develop, and retain employees at

Transform your mindset to accelerate results. The relation between success and the right mindset When a person goes into a job to achieve some definition of success, s/he constantly focuses on refining their skills, widening their knowledge, and mining talent to further their experience. Many people succeed in developing unique mastery in their profession, and somewhere along the way, they pick up toxic habits and end up being the noxious team member. Consequently, your habits impede the development of the right mindset, which is critical for your success. On the other hand, the right mindset influences the ability to win more

The chronicles of a galaxy far, far away are filled with nuggets of worthy lessons for your F&I department. There are plenty of reasons why most of you like Star Wars. Laser guns, spaceships, secret organizations, alien races, cosmic battles make it so captivating. But Star Wars brings so much more to the table.  Notably, many plots and the unforgettable characters in the saga continue to teach lessons worth applying for the success of your finance and insurance department. Be it Luke, a farm boy who rose to become one of the greatest Jedi of the galaxy, or the feisty, capable leader Princess Leia, most of you will come to relate to a Star Wars character in some capacity. As you closely observe characters, you will find a lot to take away and apply in your F&I (finance

Get ready to discover practical techniques and tips to close more deals faster. You may or may not have heard about the paradox of choice, but, as a salesperson, you experience it every day. Barry Schwartz, a psychologist, argues that when you present someone with a plethora of choices, it leads to two main issues: Analysis paralysis: rather than making any choice, they (customers) choose to do nothing. Dissatisfaction: if the customer did choose, they are left wondering whether the other options might have been better. Imagine when you go to a grocery store and find 26 different varieties of chips,

The advantages of F&I training or Finance and Insurance professional training for dealerships staff Finance and Insurance (F&I) managers work directly with consumers, so their role is vitally important when it comes to understanding consumers’ needs, encouraging them to buy valuable products, and at the same time maximizing the dealership’s profit. Therefore, professional training for dealerships staff, is of utmost importance for dealer’s success. Mistakes in the F&I department can cost you more than a sale. It could potentially impact customer satisfaction, loyalty, increase acquisition cost, and severely affect the dealership’s reputation. Some of the advantages of professional training for dealership

The automotive industry is changing fast for many dealers and their bottom lines. Therefore, to grow your dealership profit, you need strategy for your finance and insurance products and department. Two factors are limiting dealership profits. First, as the dealerships face competition, which can squeeze profit margins per vehicle retailed. Secondly, transformation in the customers’ driving habits and behavior is influencing the purchasing decision now more than ever. The dealerships could face problems if they do not pro-actively adapt to the changing trends. Reevaluate the practices of your F&I department to determine if it is helping or hurting your dealership. Historically,

Understanding the auto industry and trends in 2021-22 to increase dealership profitability The auto industry is expected to witness double-digit growth in 2021, as per the Economist Intelligence Unit report. However, it will not be enough to make up for the plunge caused by the pandemic. A recovery in 2021 will not be straightforward. Therefore, to maximize dealership profitability, auto dealers will be forced to review their operations, processes, finance and insurance (F&I) products, and F&I training to capture every opportunity to increase car sales profit. Before we dive deeper into the three key strategies to improve your dealership’s profitability, let