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Positive Outlook for Dealerships: Q1 2024 Sales Trends Show Industry Resilience The latest NADA (National Automobile Dealers Association) Market Beat report for Q1 2024 offers some encouraging signs for the automotive industry. Despite a slight dip in the March SAAR (Seasonally Adjusted Annual Rate) compared to February; the overall sales picture is positive: Increased Sales: The new light-vehicle sales SAAR for March 2024 hit 15.5 million units, a 3.8% increase year-over-year. First-quarter results are even stronger, with the SAAR at 15.4 million units, marking a 7% increase compared to Q1 2023. Improved Inventory: Crucially, shoppers now have significantly more vehicles to choose from. New light-vehicle stock on the ground and in-transit totaled 2.58 million units in March 2024, a substantial 40.2% jump compared to March 2023. Key Takeaways for Dealers These figures point towards a few key implications for dealerships: Affordability and Incentives: The combination of rising inventory and OEM incentives has led to a decrease in average transaction prices. While the average vehicle price in March 2024 came in at $44,186 (down 3.6% compared to last year), average incentive spending per unit reached $2,800, marking a significant 66.6% year-over-year increase. Dealerships should be prepared to leverage these incentives to attract buyers. Hybrids on the Rise: The alternative-fuel vehicle segment continues to grow, reaching an 18% share of total new vehicle sales in Q1 2024. Conventional hybrids are leading the charge with an 8.6% share and an increase of 2.4 percentage points year-over-year. This underscores the importance of adapting our inventory to meet growing demand for fuel-efficient options. Steady Growth Expected: While inventory might fluctuate over the next few quarters, the NADA anticipates that it will reach around 2.7 to 2.8 million units going into 2025. This, combined with rising sales figures, results in a positive outlook for the year, with a forecast of 15.9 million units for all of 2024. Adapting to the Market These NADA figures emphasize the importance of being malleable and nimble. By focusing on a diverse inventory that includes in-demand conventional hybrids, leveraging incentives, and anticipating a continued recovery in overall vehicle sales, dealerships can position themselves for success in the evolving automotive landscape. By: Delano Palmer Director of Training and Development Innovation Financial Services

Positive Outlook for Dealerships: Q1 2024 Sales Trends Show Industry Resilience The latest NADA (National Automobile Dealers Association) Market Beat report for Q1 2024 offers some encouraging signs for the automotive industry. Despite a slight dip in the March SAAR (Seasonally Adjusted Annual Rate) compared to February; the overall sales picture is positive: Increased Sales: The new light-vehicle sales SAAR for March 2024 hit 15.5 million units, a 3.8% increase year-over-year. First-quarter results are even stronger, with the SAAR at 15.4 million units, marking a 7% increase compared to Q1 2023. Improved Inventory: Crucially, shoppers now have significantly more vehicles to choose from. New light-vehicle stock on the ground and in-transit totaled 2.58 million units in March 2024, a substantial 40.2% jump compared to March 2023. Key Takeaways for Dealers These figures point towards a few key implications for dealerships: Affordability and Incentives: The combination of rising inventory and OEM incentives has led to a decrease in average transaction prices. While the average vehicle price in March 2024 came in at $44,186 (down 3.6% compared to last year), average incentive spending per unit reached $2,800, marking a significant 66.6% year-over-year increase. Dealerships should be prepared to leverage these incentives to attract buyers. Hybrids on the Rise: The alternative-fuel vehicle segment continues to grow, reaching an 18% share of total new vehicle sales in Q1 2024. Conventional hybrids are leading the charge with an 8.6% share and an increase of 2.4 percentage points year-over-year. This underscores the importance of adapting our inventory to meet growing demand for fuel-efficient options. Steady Growth Expected: While inventory might fluctuate over the next few quarters, the NADA anticipates that it will reach around 2.7 to 2.8 million units going into 2025. This, combined with rising sales figures, results in a positive outlook for the year, with a forecast of 15.9 million units for all of 2024. Adapting to the Market These NADA figures emphasize the importance of being malleable and nimble. By focusing on a diverse inventory that includes in-demand conventional hybrids, leveraging incentives, and anticipating a continued recovery in overall vehicle sales, dealerships can position themselves for success in the evolving automotive landscape. By: Delano Palmer Director of Training and Development Innovation Financial Services

Positive Outlook for Dealerships: Q1 2024 Sales Trends Show Industry Resilience The latest NADA (National Automobile Dealers Association) Market Beat report for Q1 2024 offers some encouraging signs for the automotive industry. Despite a slight dip in the March SAAR (Seasonally Adjusted Annual Rate) compared to February; the overall sales picture is positive: Increased Sales: The new light-vehicle sales SAAR for March 2024 hit 15.5 million units, a 3.8% increase year-over-year. First-quarter results are even stronger, with the SAAR at 15.4 million units, marking a 7% increase compared to Q1 2023. Improved Inventory: Crucially, shoppers now have significantly more vehicles to choose from. New light-vehicle stock on the ground and in-transit totaled 2.58 million units in March 2024, a substantial 40.2% jump compared to March 2023. Key Takeaways for Dealers These figures point towards a few key implications for dealerships: Affordability and Incentives: The combination of rising inventory and OEM incentives has led to a decrease in average transaction prices. While the average vehicle price in March 2024 came in at $44,186 (down 3.6% compared to last year), average incentive spending per unit reached $2,800, marking a significant 66.6% year-over-year increase. Dealerships should be prepared to leverage these incentives to attract buyers. Hybrids on the Rise: The alternative-fuel vehicle segment continues to grow, reaching an 18% share of total new vehicle sales in Q1 2024. Conventional hybrids are leading the charge with an 8.6% share and an increase of 2.4 percentage points year-over-year. This underscores the importance of adapting our inventory to meet growing demand for fuel-efficient options. Steady Growth Expected: While inventory might fluctuate over the next few quarters, the NADA anticipates that it will reach around 2.7 to 2.8 million units going into 2025. This, combined with rising sales figures, results in a positive outlook for the year, with a forecast of 15.9 million units for all of 2024. Adapting to the Market These NADA figures emphasize the importance of being malleable and nimble. By focusing on a diverse inventory that includes in-demand conventional hybrids, leveraging incentives, and anticipating a continued recovery in overall vehicle sales, dealerships can position themselves for success in the evolving automotive landscape. By: Delano Palmer Director of Training and Development Innovation Financial Services

Positive Outlook for Dealerships: Q1 2024 Sales Trends Show Industry Resilience The latest NADA (National Automobile Dealers Association) Market Beat report for Q1 2024 offers some encouraging signs for the automotive industry. Despite a slight dip in the March SAAR (Seasonally Adjusted Annual Rate) compared to February; the overall sales picture is positive: Increased Sales: The new light-vehicle sales SAAR for March 2024 hit 15.5 million units, a 3.8% increase year-over-year. First-quarter results are even stronger, with the SAAR at 15.4 million units, marking a 7% increase compared to Q1 2023. Improved Inventory: Crucially, shoppers now have significantly more vehicles to choose from. New light-vehicle stock on the ground and in-transit totaled 2.58 million units in March 2024, a substantial 40.2% jump compared to March 2023. Key Takeaways for Dealers These figures point towards a few key implications for dealerships: Affordability and Incentives: The combination of rising inventory and OEM incentives has led to a decrease in average transaction prices. While the average vehicle price in March 2024 came in at $44,186 (down 3.6% compared to last year), average incentive spending per unit reached $2,800, marking a significant 66.6% year-over-year increase. Dealerships should be prepared to leverage these incentives to attract buyers. Hybrids on the Rise: The alternative-fuel vehicle segment continues to grow, reaching an 18% share of total new vehicle sales in Q1 2024. Conventional hybrids are leading the charge with an 8.6% share and an increase of 2.4 percentage points year-over-year. This underscores the importance of adapting our inventory to meet growing demand for fuel-efficient options. Steady Growth Expected: While inventory might fluctuate over the next few quarters, the NADA anticipates that it will reach around 2.7 to 2.8 million units going into 2025. This, combined with rising sales figures, results in a positive outlook for the year, with a forecast of 15.9 million units for all of 2024. Adapting to the Market These NADA figures emphasize the importance of being malleable and nimble. By focusing on a diverse inventory that includes in-demand conventional hybrids, leveraging incentives, and anticipating a continued recovery in overall vehicle sales, dealerships can position themselves for success in the evolving automotive landscape. By: Delano Palmer Director of Training and Development Innovation Financial Services

Positive Outlook for Dealerships: Q1 2024 Sales Trends Show Industry Resilience The latest NADA (National Automobile Dealers Association) Market Beat report for Q1 2024 offers some encouraging signs for the automotive industry. Despite a slight dip in the March SAAR (Seasonally Adjusted Annual Rate) compared to February; the overall sales picture is positive: Increased Sales: The new light-vehicle sales SAAR for March 2024 hit 15.5 million units, a 3.8% increase year-over-year. First-quarter results are even stronger, with the SAAR at 15.4 million units, marking a 7% increase compared to Q1 2023. Improved Inventory: Crucially, shoppers now have significantly more vehicles to choose from. New light-vehicle stock on the ground and in-transit totaled 2.58 million units in March 2024, a substantial 40.2% jump compared to March 2023. Key Takeaways for Dealers These figures point towards a few key implications for dealerships: Affordability and Incentives: The combination of rising inventory and OEM incentives has led to a decrease in average transaction prices. While the average vehicle price in March 2024 came in at $44,186 (down 3.6% compared to last year), average incentive spending per unit reached $2,800, marking a significant 66.6% year-over-year increase. Dealerships should be prepared to leverage these incentives to attract buyers. Hybrids on the Rise: The alternative-fuel vehicle segment continues to grow, reaching an 18% share of total new vehicle sales in Q1 2024. Conventional hybrids are leading the charge with an 8.6% share and an increase of 2.4 percentage points year-over-year. This underscores the importance of adapting our inventory to meet growing demand for fuel-efficient options. Steady Growth Expected: While inventory might fluctuate over the next few quarters, the NADA anticipates that it will reach around 2.7 to 2.8 million units going into 2025. This, combined with rising sales figures, results in a positive outlook for the year, with a forecast of 15.9 million units for all of 2024. Adapting to the Market These NADA figures emphasize the importance of being malleable and nimble. By focusing on a diverse inventory that includes in-demand conventional hybrids, leveraging incentives, and anticipating a continued recovery in overall vehicle sales, dealerships can position themselves for success in the evolving automotive landscape. By: Delano Palmer Director of Training and Development Innovation Financial Services

Positive Outlook for Dealerships: Q1 2024 Sales Trends Show Industry Resilience The latest NADA (National Automobile Dealers Association) Market Beat report for Q1 2024 offers some encouraging signs for the automotive industry. Despite a slight dip in the March SAAR (Seasonally Adjusted Annual Rate) compared to February; the overall sales picture is positive: Increased Sales: The new light-vehicle sales SAAR for March 2024 hit 15.5 million units, a 3.8% increase year-over-year. First-quarter results are even stronger, with the SAAR at 15.4 million units, marking a 7% increase compared to Q1 2023. Improved Inventory: Crucially, shoppers now have significantly more vehicles to choose from. New light-vehicle stock on the ground and in-transit totaled 2.58 million units in March 2024, a substantial 40.2% jump compared to March 2023. Key Takeaways for Dealers These figures point towards a few key implications for dealerships: Affordability and Incentives: The combination of rising inventory and OEM incentives has led to a decrease in average transaction prices. While the average vehicle price in March 2024 came in at $44,186 (down 3.6% compared to last year), average incentive spending per unit reached $2,800, marking a significant 66.6% year-over-year increase. Dealerships should be prepared to leverage these incentives to attract buyers. Hybrids on the Rise: The alternative-fuel vehicle segment continues to grow, reaching an 18% share of total new vehicle sales in Q1 2024. Conventional hybrids are leading the charge with an 8.6% share and an increase of 2.4 percentage points year-over-year. This underscores the importance of adapting our inventory to meet growing demand for fuel-efficient options. Steady Growth Expected: While inventory might fluctuate over the next few quarters, the NADA anticipates that it will reach around 2.7 to 2.8 million units going into 2025. This, combined with rising sales figures, results in a positive outlook for the year, with a forecast of 15.9 million units for all of 2024. Adapting to the Market These NADA figures emphasize the importance of being malleable and nimble. By focusing on a diverse inventory that includes in-demand conventional hybrids, leveraging incentives, and anticipating a continued recovery in overall vehicle sales, dealerships can position themselves for success in the evolving automotive landscape. By: Delano Palmer Director of Training and Development Innovation Financial Services

The Costly Dilemma: Delays in Reconditioning and the Toll on Dealership Profits In the fast-paced world of automotive sales, time is an invaluable asset, and the reconditioning process plays a pivotal role in readying used vehicles for sale. However, the persistent challenge of delayed reconditioning has far-reaching financial repercussions that can outweigh the benefits. This article delves into the hidden costs of delayed reconditioning and questions whether the squeeze is truly worth the juice for dealerships. Reconditioning is a meticulous process encompassing mechanical repairs, cosmetic touch-ups, detailing, and inspections—all crucial for ensuring a vehicle's optimal condition and marketability. Yet, when this process is hindered by inefficiencies, bottlenecks, or delays, the consequences can be severe. Firstly, delayed reconditioning results in increased holding costs. Every day a vehicle sits awaiting reconditioning, the dealership incurs expenses such as storage fees, depreciation, and financing costs. This not only impedes cash flow but ties up capital that could be invested more strategically in other areas of the business. Prolonged reconditioning timelines also lead to missed sales opportunities and diminished profitability. In today's competitive market, consumers seek variety and immediate availability. A vehicle stuck in reconditioning risks losing its competitive edge as buyers turn to alternatives that are readily available, impacting sales momentum and customer satisfaction. Moreover, delayed reconditioning exacerbates the challenge of inventory aging. As vehicles linger on the lot awaiting reconditioning, additional costs such as advertising and floor plan interest accumulate. Aging inventory prompts price reductions and incentives, eroding the dealership's profitability and market position. Beyond financial consequences, delayed reconditioning strains operational efficiency and staff morale. Bottlenecks result in idle labor and underutilized resources, fostering frustration among dealership staff. The risk of oversights and quality control lapses increases, jeopardizing customer satisfaction and brand reputation. In conclusion, the importance of reconditioning is undeniable, but the costs of delays far exceed the benefits. Dealerships must prioritize streamlining the reconditioning process, identifying and addressing bottlenecks promptly. By expediting turnaround times and enhancing operational efficiency, dealerships can minimize holding costs, capitalize on sales opportunities, and safeguard profitability in a competitive market. The question remains: Is the squeeze truly worth the juice when it comes to delayed reconditioning in the automotive industry?

According to the China Automobile Dealers Association, data reveals that in May 2024, the inventory warning index for dealerships increased year-over-year, indicating a decline in car sales compared to last year, yet showing improvement on a month-to-month basis. The May Day holiday and the trade-in policy have boosted market demand, but issues of inventory pressure and tight funding remain. The vehicle market is expected to stabilize in June, with the mid-year assessment likely prompting dealerships to push volumes, potentially leading to a slight increase in sales. The association advises dealers to be cautious about controlling inventory risks. China Automobile Dealer Inventory Warning Index: - In May 2024, the inventory warning index was 58.2%, a year-over-year increase of 2.8 percentage points, signaling an increase in inventory pressure. Sales Trend: - Sales have declined compared to the same period last year, but there might be improvements compared to April. - It is estimated that passenger car terminal sales in May will be around 1.7 million units, roughly on par with the previous month. Holiday Effect: - The May Day holiday and various auto shows across regions have stimulated consumer interest in purchasing cars, with customer traffic increasing by 28% in the first week. Trade-In Policy: - With subsidy details implemented in many areas and additional incentives from car manufacturers, the automotive market is expected to develop steadily. June Market Outlook: - Enthusiasm for purchasing vehicles may slightly decrease due to off-season factors. - Mid-year assessments are anticipated to drive dealerships towards pushing sales volumes, with June sales expected to stabilize or experience a minor increase. Dealer Challenges: - Increasing inventory pressure and slow capital turnover have led to significant financial constraints. - Dealers need to control inventory reasonably to reduce operational risks.

Dealership Buy-Sells Set Record - More Dealerships Traded Hands in Q1 2024 Than Any Other Quarter in Auto Retail History! Highlights from the Q1 2024 Haig Report® include: --> The average publicly owned dealership made an estimated $5.0M in the 12-month period ended Q1 2024, a 26% drop from 2022. --> Despite the decline, average profits remain 2.5x higher than pre-pandemic levels. --> Q1 2024 was the most active first quarter on record for dealership M&A in auto retail history, with an estimated 151 dealerships bought or sold. --> Public company acquisition spending on domestic auto dealerships reached $1.3B, which was 14x higher than Q1 2023. --> Average estimated blue sky values remained at elevated levels in LTM Q1 2024, down just 18% from the market peak in 2022. The Q1 2024 release marks the 10th anniversary of The Haig Report®, which was first released in Q1 2014. Every quarter for the past decade, the team at Haig Partners has provided reliable, routine updates on trends within auto retail and their resulting impact on dealership values. The Haig Report® has gained a significant following since its inception in 2014, but its goal remains the same: to help buyers and sellers of dealerships make better, more informed decisions. https://lnkd.in/dC-eAjcN

Ticket volumes and dealer revenues declined in November, according to Xtime Metrics In response to Cox Automotive’s latest evaluation of Xtime metrics, service activity at U.S. franchised dealers declined in November after increasing in October. The repair order volume rate decreased in comparison with November 2022, while the repair order revenue rate remained higher yr over yr. “Ultimately, this variation primarily reflects seasonality, but there are also signs that dealers could see long-term declines in the event that they don’t take necessary steps to enhance the general customer experience,” said Skyler Chadwick, director of product consulting at Cox Automotive. Xtime’s monthly volume and revenue metrics are designed to represent average service department performance over time, with information indexed to January 2019. The 2 most vital metrics provide insight into service department performance at U.S. franchised dealers XtimeCox Automotive brand, provides software that helps automotive dealers conduct over 10 million service visits monthly. In November, the repair order volume index reached a six-year low of 82.1. This represents a decrease of 5.1% in comparison with October and three.2% in comparison with November last yr. Xtime repair order volume index for November The Repair Order Revenue Index for November was 133.7, reflecting a 1.5% decline from the revised October reading. This indicator shows a rise of three.5% year-on-year and a big increase of 36.4% since October 2019. The regular increase within the income indicator is, no less than partly, on account of general inflation, which has pushed the prices of products and services higher Xtime Repair Order Revenue Index for November Research reveals challenges and opportunities for the service department In light of the volatility of the pandemic and rising electric vehicle sales, the 2023 Cox Automotive Service Study is probably more necessary than ever. The most recent report, “Under the Hood: Opportunities and Challenges within the Service Industry,” revealed that vehicle owners’ trust in dealers is declining. For the primary time, dealers aren’t any longer the “most preferred” service provider amongst vehicle owners. Chadwick noted: “Consumer confidence within the dealership service department has declined by 8 percent over the past two years. This is vital, but it may well be mitigated. “Start by considering what increases trust – transparency. There are tools that help dealers show customers what services and repairs are really useful by sending text messages with videos and photos. Consumers do not have to ponder whether sellers are telling them the reality; they see it. “Moreover, dealers need to take a look at the experience holistically. Dealers can solve the trust issue with the service department. But true, higher levels of customer support will come when the experience is seamless from purchase to service to alternative – throughout the c...