Automotive dealerships continue to battle for profits every day. With changing consumer buying habits, more options for buying and using cars, and a highly competitive market, dealers are still struggling with shrinking margins. Can dealers working in an industry that continues to become more and more complex find a simple solution? Or, will it take creativity, technology, and skill? Read more:
1 – The Most Effective Way to Reduce Margin Compression at Your Dealership – Dale Pollak, vAuto
CBT Automotive Network: In this interview with Dale Pollak, executive vice president at Cox Automotive and founder of vAuto, you’ll hear advice for reducing margin compression at your dealership in 2019.
2 – Supplier Consolidation= Higher Prices= More Profit Challenges
Digital Dealer: Dealer profits are constantly being challenged from all angles, and it’s up to dealers to get smart, savvy, and creative when it comes to supplier consolidation.
3 – If 100% fixed absorption is magic number, many dealers have work to do
Automotive News: According to the National Automotive dealers Association (NADA), the average fixed absorption rate for U.S. dealers is 57%, when their average profit margins are coming in lower at 47%. So where are dealers making up the money?
4 – Digital Retail: The Solution for F&I Profitability
Agent Entrepreneur: Customers have been telling us for years that financing is the most dreaded step in the auto-buying process. As more F&I options move beyond the dealership, what can Digital Retailing do to help your dealership build a more convenient solution for your buyers?
5 – The Dealer’s Only Move is to Customer-Centricity
Dealer Solutions: Many dealerships rely on fixed-operations to counter the growing gap of margin compression. But, according to Cox Automotive Service Industry Study, only 33% of all service visits in the US are taking place within the dealership. That’s a lot of missing opportunity just waiting to close the gap…
Check back next week for more Drive to Success.
