Car Dealership Guy

Dealers are adopting cloud services at a record pace: In fact, they’re spending nearly 5x more on Microsoft today than they did a year ago (!!), according to Ramp. But… why? Well some part inflation (clearly) but also increased usage as more work happens in the cloud. And while some remote-work-friendly apps like Zoom and Slack are becoming more scarce in the dealership tech stack, Microsoft and Google have been gaining market share where those apps have lost ground. Great for consumers (better all-around experience) and for the industry (more efficient workflows). Read the full car dealership spending report from Ramp here: https://bit.ly/4eCJpwb (Data via CDG partner: Ramp #ramppartner)

[NEWS] Lucid is betting big on its new Gravity SUV: And with a 440-mile range and 200 miles of charge in just 15 minutes — this model brings a lot to the table. But the stakes are high for this launch. While brand sales jumped 91% in Q3, Lucid’s stock has fallen 40% this year. And the company still relies on Saudi Arabia’s Public Investment Fund to keep cash flowing. Bottom line: Consumer appetite for the Gravity could define Lucid’s next chapter — or stall it. Read today’s top automotive stories, presented by Auto Hauler Exchange: https://lnkd.in/gQmZGi2A (Data source: Lucid Motors / CNBC)

New podcast segment on the way 🔥

[NEWS] New and used car prices have never been farther apart: The average used car now costs $20,000 less than a new vehicle — a new record. Basically — even though new car incentives rose meaningfully in Q3, new car prices have hit a rut — hovering around $47K for months. Meanwhile, used cars have been seeing slow but steady price declines. It’s an encouraging sign for used car demand… But for buyers entering the market after many years away, historically elevated prices across the board could be a rude awakening. Read today’s top automotive stories, presented by Auto Hauler Exchange: https://lnkd.in/gE_rwkSR (Data source: Edmunds)

Consumer confidence is bouncing back: The Conference Board's consumer confidence index soared to 108.7 in Oct., up from 99.2 in Sept. — the biggest jump since March 2021. Why? Consumers are more optimistic about the labor market and their income prospects -- stirring more plans to buy homes and new cars. And with the holidays ahead and a change of office around the corner, the momentum for bigger purchases is gaining speed. (Data source: The Conference Board)

[NEWS] Cyberattacks targeting dealerships are skyrocketing: After June’s CDK Global breach exposed the vulnerabilities of automotive retailers… Hackers and other bad actors started to take notice — Cyberattack volume against dealers jumped 232% MoM in July. And months later, we’re still seeing attack rates 155% greater than the yearly average. While most dealers have since taken extra steps to protect themselves — They should be prepared for this unwanted attention to last well into the future. Bottom line: The industry is in the middle of a cybercrime tidal wave and retailers can’t afford to let their guard down. Read today’s top automotive stories, presented by Auto Hauler Exchange: https://lnkd.in/eZZ2JGHa (Data source: Proton Dealership IT & Cybersecurity)

[NEWS] Captive auto lenders are tightening their grip on market share: In Q3, Ford Credit captured 55% of the company’s total U.S. financing, up 5% YoY. GM Financial also boosted loan and lease originations by 3.6% against 2023. The reason? Subsidized and (attractive) financing offers. Basically – captives have the flexibility to offer incentives — like 0% APR deals — that most traditional lenders can’t. And with new car inventory swelling, dealers need solutions that make cars sell faster. Looking ahead – as long as consumer demand stays fueled by incentives, captives will remain indispensable financing partners for dealerships. Read today’s top automotive stories, presented by Auto Hauler Exchange: https://lnkd.in/g-Hj4Bmx (Data source: Ford Credit / GM Financial)

McKinsey might charge $300,000 for these insights. But you get to have it for free. We're running a poll on X asking consumers, "How would you prefer to buy a New car?" The post has already garnered 225 comments and 3,761 poll responses (and we're only 34 minutes in.) The responses are intense and many consumers are livid. If you're in the Auto industry, I highly recommend you take 5 minutes to read some of the responses people are sharing. Link: https://lnkd.in/eDd5Gzd3 | Car Dealership Guy

40% customer retention and $400 saved per sale: How does dealer Kris Gaerlan pull it off? He lets his staff do whatever it takes to keep customers happy…no questions asked. Today, I sit down with Kris Gaerlan, President of Dallas Lease Returns, to find out how empowering your staff leads to happier buyers. I’m also joined by Sanjiv Yajnik, President of Financial Services at Capital One. Top lessons learned from Kris and Sanjiv: In-store vs online transactions — There used to be a lot of investment toward transitioning car sales online. — However, dealerships and in-store experiences remain a cornerstone of auto retail. — Shoppers are exhausted by digital retail. Today’s buyers want real (physical) experiences. Expectations for transparency. — Transparency no longer makes dealers unique. Being upfront and honest is expected. — Shoppers would rather spend more at a dealer they trust than shop with a dishonest dealer. — Implementing soft credit pulls and pre-approvals boosts perceptions of transparency by 50%. Elevating the in-store experience. — Kris stores vehicles inside so that customers can shop without worrying about the Texas heat. — All vehicles are left unlocked so guests can shop without having to talk to an agent. Empowering staff. — Kris allows staff to do whatever it takes to keep a customer happy after their purchase. — Even though this comes out of gross profit, customer retention has gone up 40%. — Since it costs $400 less to serve a returning customer than to acquire a new one, Kris has ultimately saved money. Making the online experience work. — Having a good online experience is crucial to having a good in-store experience. — Using third-party tools enhances customer trust. — Implementing a third-party credit approval process boosted credit applications by 1,000% at Kris’ dealership. The full episode is live! Stream it now — YouTube: https://lnkd.in/ePSixtnA Apple: https://lnkd.in/evsM3B2w Spotify: https://lnkd.in/evXq45Dr

[NEWS] Prime borrowers stumble as auto loan delinquencies rise: In Sept. 30-59 day delinquencies rose to 1.21%, and 60+ day delinquencies came in at 0.56% – both up year-over-year for prime borrowers (FICO: 660 – 719). The problem is — Inflation, high interest rates, and rising living costs are making it harder — even for prime borrowers, who typically manage debt well, to stay afloat. Many are scraping by, paying just enough to dodge repossession, but it’s clear the cracks are showing… Auto debt now makes up 9% of household credit, and with missed payments are starting to pile up — Consumer strength may be running out of road. Read today’s top automotive stories, presented by Auto Hauler Exchange: https://lnkd.in/dMBmrsM4 (Data source: KBRA / Financial Times)