Automotive Dealer's Weekly Update 6/9/23

The Automotive Advisor Team

It may be hard to believe if you listen to the news or economic forecast from industry insiders but the market is s giving us opportunities to make gross and increase volume. Allocation is still causing issues for some makes and used cars will carry the burden of profitability in those instances until sometime next year.

With that in mind, the market will stay strong for used cars throughout. Even in this so-called down economy. By peeling back the onion, with our clients, we are finding fertile areas for growth. Take a look at the sections below for some insight into that and reach out to the team for a deeper discussion.

Economic Outlook: SOURCE

• Looking below, these three graphs give stories for strategy building. The first graph shows us what credit tier is buying the most right now and what credit tier is pulling back. That allows us to think about acquisition price points and marketing strategies to take advantage of the market that IS growing.

• The second graph shows interest rates by loan terms and gives some insight into how you can close a deal by adjusting the term and by working for more deposit money or possibly finding a cosigner.

• Finally, the bottom chart shows the significant amount of interest paid in the current interest rate environment and how exposed the consumer really is when buying a car today. At The Automotive Advisor Team, we help our clients use this data to acquire more and close more deals. Reach out if you'd like to have a discreet strategic discussion.