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Picture this: it’s a sunny afternoon at your dealership. The showroom buzzes with potential buyers, your team is busy closing deals, and then—bam! —without warning your systems freeze, and your operations grind to a halt. Suddenly, you’re not just selling cars; you’re scrambling to figure out how to keep your business running. For thousands of car dealerships, this wasn’t just an unsettling thought—it became reality. Earlier this year, the CDK cyberattack disrupted operations at nearly 15,000 dealerships across the U.S. and Canada. From billing systems to customer records, the fallout left businesses unable to operate as usual. It was a stark reminder that no one is immune to cyber threats. Dealerships are prime targets for cybercriminals because they manage highly sensitive customer data and significant financial transactions—exactly the kind of information that attackers seek to exploit. Car Dealership Cyberattacks are no longer rare events—they’re a constant threat. But that doesn’t mean your dealership has to be caught off guard. By taking steps now, you can protect your operations, your data, and most importantly, the trust of your customers. Let’s look at how to prepare for what might come next. Preparing for the Storm: Cyber Safety Practices against Car Dealership Cyberattacks Every dealership has a choice—react to threats after they hit or prepare for them now. Those who choose the latter are investing in long-term stability. Here’s how they’re doing it: 1. Patch It Up (Literally) Software updates aren’t just those annoying pop-ups you keep delaying. They often act as a shield, protecting your dealership from hackers. Make it a non-negotiable habit to update your operating systems, software, and firmware as soon as the updates are released. 2. Boost Your Security with Multi-Factor Authentication A password is your first line of defense. Multi-factor authentication (MFA) adds another layer by requiring two steps to verify your identity, like a password plus a code or fingerprint. Dealerships can enhance security by opting for phishing-resistant methods like authentication apps or biometrics instead of SMS-based codes, which can be easier to hack. It’s a straightforward way to close off a major entry point for cyber threats. 3. Keep Your Data Close and Protected Real-time, cloud-based backups that are isolated from the internet are becoming a go-to strategy for savvy dealerships. These backups ensure that even if hackers breach your main system, your critical data remains safe and recoverable. It’s like keeping a spare tire that can’t be punctured—it’s there when you need it, no matter what. Other Important Recommendations Dealers May Consider 1. Customer Relations and Reputation Management Develop a clear communication plan to keep customers informed in the event of a breach. Offer resources like credit monitoring or identity theft protection to affected individuals. Proactively share the steps you’re taking to enhance security, reinforcing customer trust. 2. Reviewing Business Interruption Coverage or Insurance Evaluate your current cyber liability insurance to ensure it adequately covers potential risks. Work with your insurance provider to understand what is included in your coverage, including financial support for recovery efforts. Consider adding coverage for business interruption due to cyberattacks or data breaches. 3. Regulatory Investigations, Enforcement, and Litigation Risk Collaborate with legal counsel to document every step of the incident response process. Maintain records of all communications with vendors, customers, and regulatory bodies to demonstrate compliance and accountability. Stay informed about data protection and cybersecurity regulations to ensure ongoing compliance and mitigate legal risks. Other recommendations credit: ComplyAuto What Dealerships Are Doing Now to tackle Car Dealership Cyberattacks Forward-thinking dealerships are implementing steps such as: Investing in IT Talent: Hiring dedicated IT professionals to oversee systems, enforce protocols, and prepared to handle evolving cyber threats effectively. Simulating Threats: Hosting regular phishing drills and threat simulations to train employees and refine their response strategies. Closing Gaps: Moving data to secure backups and plugging vulnerabilities through consistent reviews of their digital footprint. Auditing Non-Digital Vulnerabilities: Conducting quarterly audits of physical information points in sales, F&I, and service departments to prevent potential data theft. Printing Essential Documents: Keeping printed and securely stored copies of contracts, warranties, and inventory lists to ensure business continuity during digital outages—it might be basic, but it’s effective. Be Ready for What’s Ahead Cyber threats might feel overwhelming, but taking even small, proactive steps can make a big difference in keeping your dealership secure and running smoothly. At PRO Consulting, we’re here to support your growth and profitability—not just through solutions, but by sharing insights that help you tackle challenges head-on. With the right tools and approach, your dealership can stay prepared for what comes next. Connect with your PRO Team for customized strategies tailored to your dealership’s success.

The role of an F&I (Finance and Insurance) team is pivotal in steering the dealership towards higher profitability, especially during the closing stages of vehicle purchases. Let’s dive deep into the best practices and strategies to transform the F&I department into a thriving profit center for your dealership. Understanding the Role of an F&I Manager At the heart of any dealership, the Finance and Insurance (F&I) department acts as a critical revenue stream. Once a salesperson closes the initial vehicle sale, the baton is passed to the F&I department to enhance the customer’s purchase with valuable add-ons such as vehicle service contracts, ancillary products, and GAP coverage. Not to mention, beyond product sales, F&I Managers are fundamental in navigating through financing options and managing essential legal documentation. Key Responsibilities of an F&I Manager Product Sales: F&I Managers must adeptly present aftermarket products and tailor financing solutions to match individual customer needs. Broadly, this requires a deep understanding of various insurance and service contract offerings. Compliance Mastery: Staying updated with the latest financial regulations and maintaining strict adherence to legal standards is non-negotiable for F&I Managers to safeguard the dealership’s integrity and customer trust. Financing Acumen: Successful F&I Managers keep a pulse on lender relationships and insurance partnerships, ensuring the dealership can offer the most competitive loan terms to its customers. Strategic Best Practices for F&I Managers 1. Cultivate Lender Relationships: Regular engagement with lending institutions and insurance vendors is crucial. Set aside time each week to foster these relationships, which can lead to better financing terms and enhanced customer satisfaction. 2. Partner with VSC Providers and Insurance Vendors: Regularly engaging with your providers ensure that your dealership offers the most comprehensive and competitive coverages and products. All things considered, these providers are often in touch with multiple dealerships. Thus, they possess a broader view of market trends and effective strategies, which can be invaluable. They can introduce you to new perspective, custom packages, and diverse products that are precisely tailored to meet various customer needs. This enhances your capacity to serve your clients effectively and boosts your dealership’s profitability. 3. Embrace Technology: Harness the power of digital tools, like CRM systems, to simplify the buying process and enrich customer interactions. Think of it as giving your dealership a tech-savvy makeover! Additionally, dive into refresher courses to keep your tech skills fresh and explore advanced marketing tools to spot new prospects and keep an eye on where your current customers might be peeking. Above all, the tool is designed to drive ready-to-buy customers straight to your doors. Connect with us to learn more about it. 4. Market Adaptability: Keep your F&I offerings aligned with market trends. Moreover, regular portfolio reviews are essential to anticipate customer needs and adjust your strategies accordingly. Furthermore, analyze your customers’ feedback and transactional data to identify products with high penetration rates. These are the offerings that customers consistently find valuable and say yes to. Use these insights to refine and expand your offerings, ensuring they meet the evolving demands of the market. 5. Collaborative Problem-Solving: Conduct weekly ‘save-a-deal’ meetings with your team to brainstorm solutions for complex sales scenarios. As a result, enhancing the dealership’s ability to close more deals effectively. 6. Ongoing Education and Training: Commit to continuous learning and skill enhancement through regular F&I training sessions. This not only boosts your team’s confidence but also keeps your department at the forefront of industry standards. 7. Advocate for Responsible Financing: This involves F&I Managers encouraging financing options that align with the customer’s financial capabilities. It’s about ensuring that the loan terms—such as the amount, interest rate, and repayment period—are sustainable for the customer over the life of the loan. Hence, the F&I Managers could help prevent financial strain and reduce the risk of missed payments or delinquencies. In addition, this approach builds trust with both customers and lenders, enhancing the dealership’s reputation for fairness and reliability in financial dealings. Pathway to Becoming a Successful F&I Manager Aspiring F&I managers benefit from comprehensive training to master deal structuring, compliance, and customer service. In addition, engaging with seasoned professionals and continuously updating your product knowledge are steps that pave the way towards career advancement. Remember, a customer-first approach not only helps in closing deals but also in building long-term relationships for repeat business. Your Partner in Growth PRO Consulting is dedicated to sharing F&I best practices and supporting your journey towards becoming a successful F&I Manager. Overall, our experts are here to provide tailored advice and strategies that can elevate the operational success of your dealership. Contact us today for a free consultation and explore how we can help you achieve your profitability goals.

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 to flip the script to break the sales slump? 1. Reset Your Mindset First things first – ditch the doom and gloom and start with a clear head. Recognizing areas where you can improve and being open to change are crucial first steps. Think of it as clearing out old files on your computer—this frees up space and improves performance, allowing you to tackle challenges with renewed vigor. 2. Reconnect with Your ‘Why’ to break the sales slump Take a moment to reflect on what drew you to this role. Was it the excitement of closing a deal or the satisfaction of helping customers find the perfect fit? Identifying your core motivation can reignite your passion and drive, propelling you forward even on tough days. 3. Spark Your Inspiration Reignite your passion by seeking out fresh perspectives. Dive into industry trends, listen to a killer sales podcast, or join a professional development program. The goal is to stimulate your mind and spark new ideas. Remember, continuous learning isn’t just about improving your skills—it’s about staying excited and engaged in your field. By expanding your knowledge and trying new approaches, you’re not just preparing for your next sale but investing in your long-term success and satisfaction in your career. 4. Tune Up Your Engine (AKA You) Your body and mind are a package deal. If you’re feeling sluggish, your performance will follow. Your body and mind are interconnected. If you’re feeling sluggish, your sales will be too. Challenge yourself with a tough workout. Sweat out the stress, pump up those endorphins, and watch your energy levels soar. A clear mind and a pumped-up body work wonders for your sales mojo. 5. Install New Power Habits It’s time to kick some old habits to the curb and add high-impact habits to your routine. Start small— Seek referrals – satisfied customers are your best advertisers. Follow through with potential buyers – persistence often seals the deal. Stay connected with industry insiders and consultants for fresh perspectives and strategies to keep your momentum going. 6. Map Out Your Route Craft a clear action plan for each day. Set specific, achievable goals and track your progress—what is your target and how will you get there? It’s like having a personal roadmap for your workday – you’ll always know where you’re heading. 7. Sync with Your Squad Remember, you are part of a team. Lean on your peers for support and motivation. Share strategies, celebrate victories (no matter how small), and challenge each other to excel. Success is contagious – spread it around. So, there you have it—your toolkit to turbocharge through those sales slumps. Remember that sales slumps are just temporary setbacks on your path to greatness. With the right mindset, smart strategies, and determination, you’ll be back in the fast lane before you know it. And remember, you don’t have to navigate these challenges alone. The PRO Team is here to be your partner in success. We understand the unique pressures of today’s market. Connect with us to discover how we can support your journey to sales excellence.

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 of recovery in the retail vehicle market. New sales surged 14% over the past week, while used sales saw an 8% increase, partially offsetting June’s downturn. Yet, beneath these positive indicators lies a deeper issue. The financial strain on consumers is evident in their rising payment commitments. According to Edmunds-Automotive News, consumers agreed to a record average monthly payment of $740 on a loan for a new vehicle during the second quarter. Furthermore, a near-record 17.8% of shoppers committed to monthly payments of $1,000 or more, just behind the 17.9% record set in Q4 2023. For many Americans, cars are not just conveniences but lifelines. However, after years of high inflation and a slowing economy, these necessities have become financial burdens. Some households allocate up to 30% of their monthly budget to vehicle-related expenses, including payments, insurance, fuel, and maintenance. Interest Rates and Their Impact: Automotive Market & Leasing Trends 2024 Borrowing costs are deterring many potential buyers, and the previously red-hot job market is beginning to cool. High interest rates are not only squeezing consumer wallets but also affecting dealerships. For dealerships, Higher inventories and rising floorplan costs are eating into profit margins, creating a challenging environment for automotive retailers. Solutions for Dealerships Many dealers ask how they can help customers while maintaining profitability. One promising approach is to focus on reducing monthly payments, which are crucial for many consumers. Leasing has re-emerged as a key strategy to achieve this goal. Unlike traditional loans, leases typically offer lower down payments and monthly costs. Automotive Market and Leasing Trends 2024 Stats Source: Experian Leasing rates grew in the first quarter of 2024, reaching 24% of new vehicle transactions, an increase compared to the same period last year. This trend is evident across all credit tiers, as consumers recognize the financial benefits of leasing. For example, consumers who chose to lease in Q4 2023 paid an average of $606 per month, $132 less than the average new-vehicle loan payment. The Honda CR-V was the most leased vehicle, demonstrating the appeal of leasing even for popular models. Strategies to Promote Leasing To capitalize on this trend, dealerships can consider innovative approaches: Flexible Loan Options: Offer programs for short-term commitments, allowing customers to lease for as little as a few months. This flexibility can make leasing more attractive to a broader range of consumers. Subscription-Based Leasing Models: Provide a comprehensive solution that includes the vehicle, maintenance, insurance, and roadside assistance, all integrated into one monthly payment. This model simplifies the process for consumers and can enhance dealership sales and profitability. Leveraging Digital Platforms: Utilize technology to streamline the leasing process, especially for generations that prefer managing their payments online. This approach offers added convenience and control, appealing to tech-savvy customers. The current market demands agility and the ability to adapt to changes. By focusing on strategies that reduce monthly payments and promote leasing, dealerships can navigate this rocky terrain more effectively. Leasing helps consumers manage their finances better and offers a viable solution for dealerships struggling with high inventory levels. By clearing out excess stock through leases, dealerships can lower their floorplan expenses. These approaches collectively support both customers and dealerships in today’s evolving market. Turning Challenges into Opportunities As the automotive market and leasing trends evolve in 2024, partnering with industry experts can be a game-changer for dealerships. Implementing effective leasing programs and educating customers about benefits often requires specialized knowledge and skills. Our team, with decades of experience navigating economic challenges in the automotive sector, stands ready to share our expertise and help your dealership not just survive but thrive in today’s complex market. We’ve successfully steered dealerships through past economic storms, and we’re equipped with the insights and strategies needed to tackle the current $740 Challenge. Whether it’s optimizing your leasing offerings, training your teams, or developing innovative customer retention programs, we’re here to support your growth and success. Let’s connect and explore how we can tailor our proven strategies to your dealership’s unique needs.

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 enhance an individual’s performance by an average of 20%. This improvement is not just a statistic; it translates into real-world sales outcomes and customer interactions. A study shows implementing consistent sales methodologies and coaching helps achieve a remarkable 27.9% improvement in quota attainment and a 32% increase in win rates. This is a testament to the effectiveness of structured training and professional development. Source: Miller Heiman Group Here’s how our dynamic Coachbuilder Program leverages these insights to bring about transformative changes in your dealership: Our Coachbuilder program is structured into two specialized pillars, each designed to address different needs within your dealership. By segmenting the services, we ensure that each group gets precisely the support and training that will most effectively boost their performance and satisfaction. Pillar 1: Strategic Leadership Enhancement Your Goals, Our Focus: At Coachbuilder, we align our strategies with your dealership’s objectives. Our training is not about imposing a one-size-fits-all solution but integrating it with your goals to create a cohesive and personalized path to success. Industry Insider Insights: Take benefit from the expertise of former GMs, Finance Directors, Managers, and NADA Academy Graduates. Our team’s extensive real-world experience translates into actionable insights directly applicable to your managerial challenges. Focused Strategy Sessions: Dive deep into customized solutions for your dealership with the guidance of a dedicated PRO Consultant. Our strategy sessions concentrate solely on your management team, providing undivided attention to crafting analytics-driven strategies that propel your dealership forward. Continuous Support: Beyond the initial training and workshops, we offer ongoing support to ensure sustained improvement. With regular updates and accessible expert advice, we keep your team on the path to achieving and surpassing your goals. Pillar 2: Team Performance Transformation Workshop for Your Team: Experience workshops that do more than teach—they transform. Tailored to your dealership’s needs, these sessions are designed to turn routine operations into consistent, exceptional results. Customized and Interactive: Recognizing each team’s diverse strengths and challenges, we deliver workshops that are not just educational but interactive and engaging. Led by a PRO Consultant, these sessions are specifically designed to empower your whole team. Consistent Excellence: We believe in building a solid foundation for enduring success. Our training approach revolves around imparting knowledge and establishing a culture of continuous development and excellence at your dealership. Routine to Results: Transforming daily routines into effective outcomes is at the heart of our methodology. We emphasize the importance of regular discipline and development, ensuring that best practices become second nature to your team. Coachbuilder provides a comprehensive suite of innovative dealership training solutions that cater to both the strategic needs of dealership leaders and the operational needs of the sales team. Coachbuilder has a tailored approach that is ready to help you achieve dealership excellence. Connect with us to enroll and boost your dealership team’s performance across all operational levels with strategic enhancements.

“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 market. They diligently analyze market trends, consumer behaviors, and the evolving regulatory landscape to equip you with a robust strategy. The Changing Market Today, the new-vehicle inventory index sits at a record high of 75 (Q1 2024), a stark contrast to the anemic 25 of just two years ago. While plentiful inventory offers some relief, it also presents a challenge: competition. Here’s the reality: a high inventory level shifts the advantage to buyers. Shoppers have options, and dealerships must find ways to stand out in a crowded marketplace. This is where the profitability paradox comes in. While low inventory helped dealerships command higher prices, high inventory shifted the balance of power back to the buyer. Although more cars on the lot typically mean more sales opportunities, this abundance also triggers increased competition and downward pressure on prices, ultimately challenging dealerships to maintain profitability. The result of these dynamics? A new low point of 37 for the overall profits index (excluding the pandemic shutdown of Q2 2020). The Value of Strategic Dealer Consulting: Your Competitive Edge Dealer Consultants go beyond experience, offering data-driven insights into market trends, consumer behavior, and the ever-changing regulatory environment. Think of them as tailored strategists. They work hand-in-hand with your dealership, identifying your unique strengths and areas for improvement. Whether optimizing marketing campaigns, streamlining sales processes, or maximizing used car profitability, dealer consultants could provide the solutions and expertise needed to thrive in a buyer’s market. Three Ways Dealer Consulting Partners Drive Dealership Success 1. Adapting to Market Dynamics and Consumer Behavior Dealer consultants help you understand the shifting sands of the market and consumer preferences. This allows you to adjust your approach, tailoring your offerings and messaging to resonate with today’s buyers. Dealer consulting partners are your gateway to a wealth of knowledge and resources beyond your individual experience. For example, the PRO Team supports dealers’ success by providing access to advanced tools like active shopper networks, which utilize sophisticated data analysis to link a shopper’s online activities with the real person behind the screen. This, in turn, translates into invaluable insights for your dealership, such as: Knowing exactly who’s in the market for a new car right now within your target area. Targeting potential customers by name and contact information, not just demographics. Gaining insights into the specific makes, models, and features shoppers are actively researching. Analyzing shopping behavior and intent, including days spent researching and online activity intensity, to determine how serious a potential customer. Discover what car the shopper currently owns and their service history, allowing you to tailor upgrade or service package offers. 2. Uncovering New Profit Centers and Plugging the Leaks Beyond the traditional focus on sales, dealer consultants can help you identify hidden revenue streams and capitalize on emerging trends. Let’s look closely at your Finance & Insurance (F&I) department. Think of your F&I department as a leaky bucket with missed opportunities. Customers who decline extended warranties, GAP insurance, or other coverage represent lost revenue. Dealer consultants can help you identify these “leaks” and implement strategies and tools to capture every potential revenue opportunity. Take, for instance, targeted follow-ups. Not every customer makes a final decision on the spot. Consultants can help develop targeted follow-up strategies, like personalized outreach- emails or texts, to re-engage customers who initially declined coverage and address any lingering concerns. What tools do you currently have in place to effectively capture these missed opportunities? 3. Build a “Why Buy Here” Advantage In a crowded market, differentiation is critical. Dealership consultants play a significant role in helping craft a compelling value proposition, highlighting unique offerings, and creating a customer experience that sets your dealership apart. They can help you explore extended warranties, loyalty programs, or other value-added services that make your dealership the clear choice for buyers. One such area is the development of a well-crafted loyalty program. Imagine transforming your dealership from a one-time transaction into a trusted partner. Dealer consultants can guide you in crafting a program that becomes a selling proposition, offering a tangible and appealing reason for customers to choose your services over the competition. Your Path to Success For more strategies to enhance your profitability, cultivate high-performing teams, and pin down holes in your revenue streams, connect with your PRO Team. We’re ready to work closely with you to understand your dealership’s unique challenges and opportunities and develop a tailored action plan for growth. Connect with us today to start your journey toward enhanced profitability and market leadership.