Brent Tally’s Post

New Car Deals: Reports Suggest Even More Discounts Ahead in 2024 ——————— Good Deals to Return to Car Dealerships Get ready for good deals to return to the car dealership: The new vehicle market will likely improve for car shoppers heading into the fall as rising inventory levels lead to lower prices. Experts' Forecast Experts at Cox Automotive expect “more discounting and better prices” as the year goes on because automakers will likely need to reduce their margins to avoid building up too much inventory, according to a forecast released this summer. New Vehic... Read Full Article: https://lnkd.in/eaGNpvCr #PersonalFinance #AutoLoanRates #CarShopping #CashBackRebate #Discounts #Economy #FederalReserve #GoodDeals #incentives #interestrates #MonthlyPayments #Negotiating #NewVehicleMarket #pandemic #SubsidizedFinancing #SummerCarBuyingGuide

I had a great conversation with Kaitlyn Luckoff at Automotive News about KPA's Dealership Trust Survey. KPA's survey found a gap between the perception and reality of car buying: few Americans experience dishonest selling at car dealerships, but most Americans still distrust them. KPA helps over 15,000 auto dealers across the country build a culture of trust and compliance to earn car buyers' dollars, and prepare for the upcoming CARS Rule. Read Kaitlyn's story to learn more about our survey and what it means for auto dealers & their customers. #autodealers https://lnkd.in/ez-CRuWD

Timing your car purchase can lead to significant savings, with the best deals often found at the end of the month, quarter, and year due to dealership sales quotas. #CarBuyingTips #BestTimeToBuy #CarDeals #AutoSavings #CarShopping https://lnkd.in/dExKDMRy

Dealership service visits have surged over the past 5 years: According to a recent service study from Cox Automotive, the average revenue per dealership service visit is up *30%* since 2019. And it's not all inflation... Consumers are holding onto their cars longer than ever — and these older cars are more expensive to repair (and require more of it). The bottom line: Service has always been the bread and butter of franchised dealerships… But with cooling new car sales (yes, I know Toyota is an exception) and a spotty used car market, I’d expect dealerships to double-down on Service in the coming years. More car industry insights here: https://lnkd.in/gDNRFPv8 (Data via CDG partner: Cox Automotive Inc. #coxautomotivepartner)

After the pandemic, it felt as though pre-registrations were something that we’d never see again – but they’re back, according to Cox Automotive. I guess that despite everything that has happened, the motor industry still has massive global production overcapacity. https://ow.ly/Cjlq50QafVQ #Startlinemotorfinance #motorfinance #dealers #dealership #autoretail #motorindustry

Margin compression affects every department of a dealership, notably used car reconditioning and used car appraisals. How do you manage margin compression here? With a focus on predictable outcomes. Learn More: https://lnkd.in/eXmJbwnV Dennis McGinn Rapid Recon

#AutoIndustryNews 2024 offers a glimmer of hope for auto dealers navigating the tricky terrain of used car sales, despite lingering market uncertainties and a notable vehicle shortage. https://lnkd.in/eCeZsAwg

Car dealerships have more vehicles than they want, with inventory rising from 74 to 76 days' worth, above the usual 60-day guideline. Unsold cars cost dealerships money due to financing fees, so dealers are likely to increase discounts to sell them. Before COVID-19, discounts were common but nearly vanished due to shortages. Now, incentives are coming back, but high interest rates still make buying tough. While some brands like Toyota and Honda manage their inventory well, others have too many vehicles, especially expensive ones. Dealers with numerous high-priced vehicles on their lot will likely need to lower prices to attract buyers, making this a good time to find better car deals.

Asbury Automotive is acquiring the Jim Koons automotive dealership group for $1.2 billion. The transaction is expected to close late this year or in early 2024. The deal includes $740 million in goodwill (Blue Sky) and another $417 million for real estate. The total enterprise value of the deal will go up once the new and used inventory and fixed assets are added in at a price to be determined at the transaction's closing. We wrote about the pending deal earlier this week and had pegged the price to be between $1.1 billion and $1.5 billion accounting for a wide spread due to the uncertainty of the real estate. Asbury is buying all of the assets including new-car 20 dealerships located in in Maryland, Delaware, and Virginia selling Buick, GMC, Chevrolet, Chrysler, Dodge, Jeep, Ram, Ford, Hyundai, Kia, Toyota, Lexus, Mercedes Benz, and Volvo brands. Asbury is also getting six collision centers and one of the highest volume Toyota and Stellantis dealerships in the US. Koons ranks 23rd on the 2022 Automotive News Top 150 Dealer Groups list — which is based on total new car volume — and generated $3.2 billion in total revenue last year. Based on total revenue, Koons is the 12 largest group in the country. Asbury, which generated $15.4 billion last year, ranks fifth on the Automotive News list — both in new car sales and total revenue. Kerrigan Advisors represented Koons in the transaction. https://lnkd.in/gkRc56Fe

Asbury Automotive is acquiring the Jim Koons automotive dealership group for $1.2 billion. The transaction is expected to close late this year or in early 2024. The deal includes $740 million in goodwill (Blue Sky) and another $417 million for real estate. The total enterprise value of the deal will go up once the new and used inventory and fixed assets are added in at a price to be determined at the transaction's closing. We wrote about the pending deal earlier this week and had pegged the price to be between $1.1 billion and $1.5 billion accounting for a wide spread due to the uncertainty of the real estate. Asbury is buying all of the assets including new-car 20 dealerships located in in Maryland, Delaware, and Virginia selling Buick, GMC, Chevrolet, Chrysler, Dodge, Jeep, Ram, Ford, Hyundai, Kia, Toyota, Lexus, Mercedes Benz, and Volvo brands. Asbury is also getting six collision centers and one of the highest volume Toyota and Stellantis dealerships in the US. Koons ranks 23rd on the 2022 Automotive News Top 150 Dealer Groups list — which is based on total new car volume — and generated $3.2 billion in total revenue last year. Based on total revenue, Koons is the 12 largest group in the country. Asbury, which generated $15.4 billion last year, ranks fifth on the Automotive News list — both in new car sales and total revenue. Kerrigan Advisors represented Koons in the transaction. https://lnkd.in/gkRc56Fe