Car Dealership Guy

These three car brands are raising the bar. Swickard Auto Group's Jeff Swickard shares which ones are nailing customer experience—and what he does when manufacturer relationships sour. Here's the 3 brands he's most excited about. ➤ Stream the Car Dealership Guy Podcast now on your favorite platform.

[NEWS] Hyundai and Kia just smashed their Oct. sales records: Hyundai saw an 18% YoY increase, selling over 71,000 vehicles. Meanwhile, Kia followed suit with 68,908 units sold, a 16% bump from last year’s Oct. record. A key driver of growth? Sales of EV (and mostly) hybrid models. Bottom line: 15+ years ago — a lot of consumers (and dealers) looked down on Hyundai/Kia. But today? They’re dominating with one of the sharpest turnarounds in the industry. Read today’s top automotive stories, presented by Auto Hauler Exchange: https://lnkd.in/enrBAWD9 (Data source: Hyundai / Kia)

Can dealerships outshine direct-to-consumer brands? Swickard Auto Group's Dealer Principal, Jeff Swickard believes buying a car is a ceremonial event that can't be replicated online. Here's where human touch makes a difference. ➤ Stream the Car Dealership Guy Podcast now on your favorite platform.

[NEWS] Auto brand loyalty has ticked up for 16 months in a row: The reason? New car inventory has swelled from 1M units in Jan. 2022 to nearly 3M by Aug. 2024 – and more options are making it easier for buyers to stay with their preferred brands. Leasing is also a major factor here — Now accounting for 25% of new transactions, leasing offers buyers — especially in the luxury market — a chance to drive brands they might not afford to purchase outright. And on top of that… shorter transaction cycles keep lessees more connected to their local dealerships. Bottom line: As new car supply continues to grow, pre-pandemic levels of brand loyalty are well within reach. Read today’s top automotive stories, presented by Auto Hauler Exchange: https://lnkd.in/eseftuYh (Data source: S&P Global Mobility)

Reality check — why some buyers prefer to skip the dealership: By now, you’ve heard — Volkswagen’s Scout Motors announced plans to sell its electric SUV and pickup directly to consumers (D2C) — bypassing dealerships entirely. It’s a frustrating move for VW dealers to be sure — And dealer associations are gearing up for a potential legal fight. But it begs a more important question… Are buyers really ready to leave the dealership experience behind? To get some answers, I ran a poll. In just 24 hours, over 20,000 people weighed in, with the majority saying they’d prefer D2C over a traditional dealership for their next car. Whether or not buyers even really know the differences between the two is a question for another day — For me — the real story was in the 730+ comments. Many buyers voiced their frustrations with the car buying process, describing it as confusing and time-consuming. Surprise fees, unclear pricing, and high-pressure tactics from (some) salespeople were top complaints. So — it’s not really surprising that the D2C model seems appealing. And then there’s Tesla… Tesla’s approach offers a set price, right on their website, with no haggling. Yet — even when Tesla raises prices, customers don’t push back as they tend to do with dealerships. Why? This type of fixed pricing — visible to everyone — removes the feeling of information asymmetry. And for many buyers, a transaction like that just feels more transparent. But D2C isn’t perfect. While it focuses on the initial sale, it often lacks after-sales support — an area where dealerships have a stronger upper hand. Local dealership service teams are accessible locally and provide a level of after-sale support that’s harder to match through a D2C model. And legacy automakers can’t just flip to D2C on a dime either., Ford teased a similar model for its EVs but quickly reversed course due to rigid state franchise laws, which are meant to protect dealerships from manufacturer monopolies. And yet, the push for D2C sales isn’t fading away… The reason? It’s a solution that provides consumers with consistent transparency, clear communication, and alignment of expectations throughout the car buying journey. The thing is — many dealers are already adopting these principles. For example, some are eliminating price negotiations, opting for up-front, transparent pricing — This strategy may mean lower short-term profits, but it’s winning customer trust and building long-term value. They’re also simplifying the finance process with a single point of contact for the entire purchase journey. For dealers who don’t embrace this shift, the outlook is dim. But if the industry rises to the occasion, D2C could be the “competitor” that sparks a transformation of change. Read the breakdown here, together with Auto Hauler Exchange: https://lnkd.in/gTf4UYY6

[NEWS] Volkswagen is launching new car subscriptions... will consumers bite? The auto industry may be divided over subscription models — But VW is betting on Flex — a month-to-month plan that includes insurance, maintenance, and roadside assistance. Here’s the catch — prices range from $599 to $799 a month — A big jump from traditional leasing costs and arguably the biggest barrier to wider adoption. You see — other automaker attempts at launching subscription services haven’t gone well… BMW’s Access shut down in 2021, while Volvo’s Care closed down this Sept. And subscription startups haven’t done much better. Yet — there could be a market for these services — 33% of current drivers say they’d be interested in ditching traditional ownership for a subscription. But the vast majority are happy with the status quo. And without an “affordable” option, that’s not likely to change. Read today’s top automotive stories, presented by Auto Hauler Exchange: https://lnkd.in/gbhrzvKy (Data source: Volkswagen / YouGov)

Good news for cash-strapped buyers: Used car prices are continuing their slow descent back down to Earth -- declining 6.2% YoY to $27,177 on average. Yes -- prices are still elevated from 2019 levels... But with auto loan rates predicted to fall slightly by next Spring as tax refunds roll around -- buyers might be able to snag significantly better deals than we've seen for a while. (Data source: Edmunds)

Balancing limited supply and oversupply is tough (!) But some car brands have nailed disciplined production, keeping profits strong even when inventory is tight. Jeff Swickard from Swickard Auto Group shares his experience with owning a Lexus dealership. ➤ Stream the Car Dealership Guy Podcast now on your favorite platform.

[NEWS] Stellantis’ Q3 revenue slumps as it cuts dealer inventories: What’s driving the drop? The usual suspects — shipment delays, pricing struggles, and a mismatch between vehicle supply and demand. But while revenue fell short of expectations — dealer inventories were slashed by 80,000 units. And with more cuts on the way… frustrated dealers might start feeling relief soon. Yet – every action has an equal and opposite reaction. Slashing inventories means cutting production, causing temporary (or permanent) layoffs. This doesn’t sit right with the United Auto Workers (UAW) union… Which argues these cuts destabilize job security and undermine previous contract agreements. Big picture: Stellantis has its hands full, and trying to solve one problem appears to be causing more. Read today’s top automotive stories, presented by Auto Hauler Exchange: https://lnkd.in/ead9HiNK (Data source: Stellantis)

700 calls a month — that’s the typical inbound call volume for many dealerships. But here’s the surprising twist: New data from Car Wars reveals that only about half of those calls result in collecting essential shopper info, meaning nearly 50% of these valuable opportunities are missed. (Think about the last time you called a dealership… Did you get what you wanted?) It’s even more eye-opening in certain regions, where capturing shopper details falls well below average: 1. Alabama – 64.66% 2. Georgia – 59.28% 3. North Carolina – 58.84% … 48. Oregon – 45.07% 49. New Jersey – 41.02% 50. Florida – 39.42% (!) As usual, nailing the fundamentals = tried and true key to success. Learn more about Car Wars’s latest research on 2024 phone strategies: https://lnkd.in/gWhxnvTS (Data via CDG partner: Car Wars #carwarspartner)