Inside Automotive
Dealers are increasingly worried that the franchise system is under attack from major OEM brands, who may stand to gain more from a direct-sales model instead. On this episode of Inside Automotive, Don Hall, president and CEO of the Virginia Automobile Dealers Association (VADA), and one of the most recognized leaders in auto retail, joins host Jim Fitzpatrick to discuss the latest on the conflict between franchisees and franchisors. Watch full segment here.
Top Stories
Toyota’s EVs see more trade-ins than any other brand, according to a new study posted by CarMax. Researchers found that the automaker’s products accounted for 12% of all electric car trade-ins between September 2022 and February 2023, followed by Ford, BMW and Honda. Prius owners were especially likely to turn in their used hybrids, with many choosing the all-electric Nissan Leaf as a replacement. At present, Toyota only has three EVs for sale, although it plans to launch ten more by 2026. Read More
For Dealers
After all the research, test drives and negotiations, when a customer chooses to purchase a car, they are putting their trust in the hands of the dealer. Beyond the large financial commitment, the customer will hand over more personal information than that customer likely shares with any other institution. Name. Address. Social Security Number. Driver’s license. Insurance policy. It is now the dealer’s responsibility to protect that information. But data security is not the primary business for auto dealers. Read More
Auto retailers have commonly averaged the last three years of earnings to estimate expected future profitability. This methodology proved to be an effective predictor of future earnings for the years leading up to the pandemic (see Chart 1). However, beginning in 2020, when earnings commenced their hockey stick progression, the calculus for projecting future earnings based on the last three years of profits started to miss the mark. Buyers and sellers have since struggled to assess future earnings given the seemingly unpredictable nature of the industry post-pandemic. Read More