Fall is here, which means the model-year changeover is upon us—and dealers will be looking to move current inventory off their lots to make room for next year’s models. In addition to the Fed’s just-announced big rate cut, dealers will continue to rely on aggressive incentives to get rid of those vehicles. Joining us on the latest episode of CBT Now is Derek Hansen, VP of Operations for Inventory Management Solutions at Cox Automotive, who will further discuss what this means for the industry.
Derek Hansen discusses Cox Automotive’s VAuto Conquest, an inventory management tool designed initially for used cars but now adapted for the new car market. Hansen elaborates that VAuto Conquest consolidates live market insights into a single platform, enabling dealers to manage incentives, set competitive prices, and enhance profitability.
With incentives now making up to 7.2% of the average transaction and increasingly complex rebate structures emerging, Conquest streamlines the process by automatically syncing data from OEMs. This allows desk managers to easily apply the correct incentives for each vehicle down to the VIN level, thereby preventing costly errors and helping dealerships remain competitive in a challenging market.
Affordability remains a critical challenge, Hansen notes, as the average new car price exceeds $47,000, with loan rates topping 9.5%, pushing monthly payments beyond $700. He emphasizes that while recent rate cuts won’t significantly impact auto loans immediately, dealers should prioritize using tools like Conquest to leverage increasing incentives, which are up 50% year-over-year. This focus on optimizing incentives and market alignment, Hansen says, will be essential for dealers to move metal and meet profitability goals.
“Conquest really takes all of the live market data, incentives, and rebates and puts it in one place for dealers. It allows them to see how their inventory is priced relative to the market and connect it seamlessly across platforms, ensuring they remain competitive and efficient.” – Derek Hansen.
