Connected Dealer Services’ Post

Compressed margins and plummeting sales volumes coupled with a capital-intensive business model, led to the downfall of Vroom. #autofinance #autoindustry https://hubs.la/Q02hFtsp0

Burgeoning inventory and incentives, at their highest levels in three years, are driving down new-vehicle transaction prices, a buoy to sales despite elevated interest rates: https://loom.ly/k8uvwxo #Newvehiclepricedrop

JM&A Group's Q1 2024 Automotive Trends Report is here! (JM&A Group) 📈 Discover key insights on shifting markets, evolving consumer preferences, the rise in leasing, and more. Check out the report here: https://bit.ly/3QVlWwK

The last few years of supply chain challenges have resulted in a decline in new vehicle sales, not unlike the post-2008 financial market collapse and bailout. While the impact on the aftermarket took some years to materialize after the reduced sales of new cars, it was unmistakably felt. During that period, many experts predicted a shift in focus by new car dealers toward older vehicles. However, the outcome was very different— independent repair shops in the aftermarket improved their services, presenting even more challenging competition. Contrary to expectations, new car dealers failed to capture a significant portion of the older vehicle repair market, as consumers continued to favor independent shops due to their competitive pricing and more convenient service. While there may be predictions once again about new car dealers increasing their efforts to secure a larger share of the older vehicle repair business, it is noteworthy that the aftermarket is now even better equipped than it was in 2008. We have more work to do to level the field regarding vehicle data, but the aftermarket will keep market share for the same reasons we already have it.

Post covid 40% of car deals have a trade. Trades are the best way to grow your inventory AND protect margins. In a compression environment, it’s critical to put the right price on the right car at the right time, the margin for error has disappeared. More than ever we need to avoid the race to the bottom and get the offer right the first time. Accu-Trade can help.

How is inflation reshaping the Vehicle Dealership industry, and what does it mean for dealerships? With rising material, labor, and transportation costs, manufacturers are increasing prices, impacting dealer profit margins. As buyers become more price-sensitive, turnover rates slow, requiring dealers to offer innovative solutions. By understanding how rising costs affect your inventory, adapting your strategies to meet customer expectations, and optimizing pricing models, you can better weather the storm and maintain profitability. Book a call with us here to see how we can support you: https://lnkd.in/e8haJByg.

Exciting News in Velocity Trading: The New Game-Changing Automotive KPI! We are thrilled to share a groundbreaking development in the world of Velocity Trading – the introduction of a new Key Performance Indicator (KPI) that's set to redefine success in the automotive industry. New Automotive KPI: Margin ££ Achieved by Selling Quicker In our continuous pursuit of excellence for our Dealers, we have included a revolutionary KPI into Velocity Plus focusing on the margin ££ achieved by selling vehicles at an accelerated pace. The formula is simple yet powerful: Profit divided by the number of days it takes to sell, including the cost of the parking space at the dealer, equals the true profit. Including Parking Space Costs Recognising the comprehensive nature of profitability, we've incorporated the cost of the parking space at the dealer into our calculations. By doing so, we gain a more accurate reflection of the true expenses associated with holding inventory and how this impacts on overall profit margins. Why This KPI Matters Traditionally, success in automotive trading has been measured by sales volume alone. However, our new KPI provides a more nuanced and accurate assessment of profitability. By factoring in both the speed of sales and the cost of maintaining inventory, we gain insights into the efficiency and effectiveness of our trading strategies. Key Insights Unveiled Accelerated Sales: Faster vehicle turnover translates to increased liquidity and capital efficiency. Cost Efficiency: Minimise holding costs, including parking space expenses, to maximize overall profitability. Strategic Decision-Making: Identify optimal pricing and marketing strategies considering all associated costs. Implications for the Industry We believe that embracing this comprehensive approach to the new KPI will not only enhance our internal operations but will also contribute to shaping industry standards. By prioritising both speed and cost-effectiveness, we pave the way for a more dynamic and resilient automotive trading landscape. Join the Conversation We invite fellow professionals, industry experts, and enthusiasts to join the conversation. Share your thoughts on how this new KPI, including parking space costs, might impact the automotive trading sector and what opportunities it could unlock for your business. Let's drive innovation, and redefine success together! For more information get in touch iangodbold@igcdigital.co.uk #Automotive #VelocityTrading #KPI #Innovation #Profitability #IndustryInsights #CostEfficiency #automotiveexcellence #automotivemarketing

With economic inflation on the rise, the independent aftermarket stands out as a crucial player in spare parts distribution. Recent data highlights a notable 9% increase in its activity, emphasizing a remarkable and indispensable role in the automotive sector 🚗 Curious to learn more? Keep reading! ⚙️ #BCAR #aftermarket #spareparts

9 actions Luke Sheppard recommends for equipment dealers to raise their BAR heading into Q3 of 2024. Actions dealers can take to drive improvements with their Balance sheet, Absorption, and Retention. Learn more about Raising the Bar for your equipment dealership: https://lnkd.in/ehJH-zBF #equipmentdealerships #improvement #raisethebar

Estimates on new-vehicle sales in March varied but all pointed toward year-over-year growth as inventory rebuilds and consumer confidence holds steady. #autofinance #autoindustry https://hubs.la/Q02rbWSQ0