As the retail automotive industry reflects on a dynamic year, Dennis Gingrich, Sales and Finance Director at The Niello Company, joins us on today’s episode of Inside Automotive to share his perspective on how dealerships can navigate the ever-changing landscape. From a renewed emphasis on fundamentals to the challenges of affordability and the potential impacts of tariffs, Gingrich provides a candid look at what lies ahead for 2025.
According to Gingrich, he notes the importance of returning to the basics of the industry. He notes that after adapting to COVID-era challenges, dealerships, including The Niello Company’s 10 Sacramento locations, are refocusing on inventory management, lead response times, and delivering exceptional customer experiences. Gringrich asserts, “2024 was about getting back to sales and value-driven competition,” highlighting the diminishing profit margins in the post-pandemic market.
Discussing the challenges of negative equity, Gingrich points out that luxury customers often have resources like larger down payments or better credit to address these issues. However, they remain a significant obstacle across the industry. He underscores the importance of leveraging lender partnerships to find creative solutions and keep deals moving forward.
On the potential for tariffs under the new administration, Gingrich expresses cautious optimism. While recognizing the challenges tariffs could pose to affordability, he believes much of the rhetoric might be strategic posturing. “Our job is to focus on solutions we can control, ensuring customers can find payments they can afford,” he says.
Another critical focus is the role of technology, particularly AI. Gingrich stresses the need for adaptable AI tools that streamline operations and enhance employee satisfaction while aligning with The Niello Company’s commitment to personalized customer interactions. “This is the age of instant gratification,” he remarks, advocating for solutions that meet rising consumer expectations for speed and convenience.
“This is the age of instant gratification. Customers want answers immediately, and finding adaptable AI solutions that empower our employees and improve the customer experience is key to staying competitive in today’s market.” – Dennis Gingrich