CBT automotive newscast: November 29, 2021

Inside Automotive:

The best practices for car dealers to spotlight in preparation for 2022
The new year is approaching, yet many car dealers are still dealing with the effects of the COVID-19 pandemic. Today on Inside Automotive, we’re pleased to welcome back David Kain, President of Kain Automotive and host of CBT’s Kain & Co., to discuss what dealers need to focus on as the industry gears up for 2022. Watch the complete segment here.

Headlines:

Automaker Polestar has revealed that its Precept concept car, which was announced back in February, is now officially the Polestar 5, and production is set to begin in 2024. The Polestar 5 is a four-door hatchback sedan designed to compete with other luxury EVs made by Tesla, Mercedes-Benz, and Audi to name a few. While Polestar has yet to release details like price and range, the company is calling it, “an electric performance four-door grand touring car.”

Online vehicle marketplace TrueCar has released its industry sales forecast for November and total new vehicle sales are expected to reach 1,073,042 units, down 15% year-over-year. Additionally, the total SAAR is expected to be down 12% from this time last year, coming in at 13.7 million units. In a press release from TrueCar, lead industry analyst Nick Woolard said, “We continue to see small signs of new vehicle inventory levels rebuilding on dealer lots. However, demand remains strong and continues to push new transaction prices to record levels.”

Cox Automotive has published findings from its latest COVID-19 Consumer Impact Study which shows that 67% of franchised dealers have higher new vehicle prices than they did pre-pandemic. Just over half of the dealers surveyed also say that their customers are completing more of their transactions online. Furthermore, 66% of in-market shoppers believe they would wait up to 12 months to get the best deal on a new vehicle.

By now, most consumers are aware of the record high prices for new and used vehicles. In fact, this current surge in inflation for goods across sectors has not been seen since the end of World War ll, according to CNBC. Supply chain lags and labor shortages mean that high inflation might be around for many months to come and businesses have been forced to rethink the way they operate. Barclays Chief U.S. Economist told CNBC, “It’s like any economy in any situation would be in trouble if its citizens were requiring it to produce 20% more goods in one year’s time.”

News & Opinion:

How service departments can handle no fault found diagnosis
You want to increase profits and customer satisfaction in your service department, but a no fault found diagnosis, or NFF, is sure to derail your plans in a hurry. When a customer brings their vehicle in for repair, they expect the problem to be fixed when they drive away. Getting back in the vehicle with the same problem occurring only frustrates and aggravates the client. There are three steps to remember if you want to handle no fault found diagnosis properly. Read more

Automotive marketing tips to reach every generation of car buyer
How do you market to Boomers, Gen X, Millennials, and Gen Z while running a single dealership? You wouldn’t be far from the truth in thinking that you need multiple dealership brands of your dealership – we’re becoming that fractured in our society. And it’s not just marketing that is posing to be a challenge. There’s also a product mix challenge. Among the manufacturers who rush to produce SUVs and EVs for Boomers and Gen Zs, studies on Millennials’ habits show that you better have a mix of reasonably priced sedans. Read more