Margin compression is a widespread problem in the automotive industry, one that doesn't discriminate between new and used dealerships. But these shrinking margins don't mean your profitability has to suffer. By making a few adjustments you can not only remain profitable but also grow your business — even with these tighter margins.
According to CARFAX, the value of a vehicle can drop 20% in its first 12 months of ownership, and will continue to drop 10% annually afterwards. That means that the vehicle may lose 60% of it’s value in the first 5 years of its life!
Let’s start this year with a powerful article, featuring the auto industry trends expected for 2019, including New and Used car sales, embracing the consumer in the internet age and using technology to optimize your sales potential!
The National Automobile Dealer Convention is early this year and it should prove to be just as exciting and informative as always. Whether this is your first time attending or you're a convention veteran, here's what you need to know about this year's show.
If it sounds too good to be true, it probably is. That's a lesson that a number of investors from all over the country learned recently. According to an indictment published by The Baltimore Sun, three men have been arrested for running a $364 million Ponzi scheme. Kevin Merrill, Jay Ledford, and Cameron Jezierski were indicted on charges ranging from conspiracy to money laundering.
What is good leadership? It's not a simple question to answer, but it's vitally important when running any kind of business. One thing is certain: a good leader should be able to motivate their team in a positive, constructive way. Here are a few tips on how to motivate your team and get results the right way.
As a business, you have to be concerned about the future. No successful business has ever been the result of pure luck and throwing caution to the wind. You must evaluate the facts on the ground, look towards the future, and meticulously plan. When doing this planning, it's always good to focus in on a specific sector of the market and see what you can learn.
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Maintaining your profit margins as a car dealership isn't easy. You're often subject to shifts in the market that are out of your hands. One month people are buying fuel-efficient sedans, the next gas prices are low and SUVs are king. The same concept can be applied to recent trends with new and used vehicles. How you react to these shifts will determine whether you sink or swim.
The concept of cost-cutting is an age old mantra in the business world. Spend less money, make more money. In practice it's not so simple. How do you identify the areas that truly need a trim and how do you get the most out of your cost-cutting measures? We don't have all the answers here, but we do have a few ideas.
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