Peter Welch recently walked through what previously was a lovely neighborhood in Louisiana’s state capital.
Someone recording video followed Welch, the president of the National Automobile Dealers Association, as he passed by shoulder-high piles of floodwater-soaked furniture, possessions, drywall and other debris in an effort to show the devastation and subsequent need for dealers to give toward NADA’s goal of generating $2 million for the National Automobile Dealers Charitable Foundation.
In front of a brick home with a lush green lawn partially covered in flood-ruined material, Welch described the scene in Baton Rouge, La., where as much as 22 inches of rain fell in a single weekend earlier this month as, “they’ve lost their homes or as you can see here, the homes are still standing but they’ve lost all of their possessions.
“Most of these areas are not in flood plains and therefore no one here has flood insurance, which exacerbates the problem,” he continued in the video that’s posted here.
On Thursday, officials announced a collective $15,000 donation to NADA’s efforts that are providing financial assistance to dealership families impacted by the flooding in southern Louisiana. The Ohio Automobile Dealers Association donated $10,000, and the Greater Cleveland Automobile Dealers Association donated $5,000.
“We're grateful for NADA spearheading this effort and are fortunate to be in a position to help,” OADA president Zach Doran said. “Our thoughts and prayers are with those employees in need at dealerships in the affected areas, and we hope that our contribution makes a difference in helping get people back on their feet.”
Dealership families displaced by the flooding can apply for financial assistance through the National Automobile Dealers Charitable Foundation's Emergency Relief Fund, which provides funds immediately after natural disasters.
“When others are in need, auto dealers are always there to lend a hand,” GCADA president Lou Vitantonio said. “We feel there is no better way to show support for dealership families affected by the flooding in Louisiana then by donating to the NADA Foundation’s Emergency Relief Fund.”
To apply for assistance or to contribute to the fund, visit www.nada.org/emergencyrelief or call (703) 821-7102.
Checks can be made payable to:
NADCF Emergency Fund
c/o NADCF
8400 Westpark Drive
MS 7
Tysons, Va. 22102
“We’re asking every dealership in the United States donate $1,000 to adopt a dealership family affected by the flooding. Our dealerships are one big family. When a member of our family hurts, we all hurt,” Welch said.
“We are extremely grateful for the generous donations from the dealer groups in Ohio, but we are a long way from reaching our $2 million goal. We are urging all dealer associations and dealers throughout the county to donate to the fund,” he went on to say.
Volkswagen Group of America previously made arrangements for restitution with owners of vehicles involved with “Dieselgate.” On Thursday, the automaker released its plans to rectify the situation with its franchised dealerships.
Volkswagen announced it has reached an agreement in principle to resolve the claims of VW-branded franchise dealers in the United States relating to TDI vehicles affected by the diesel matter and other matters asserted concerning the value of the franchise.
The company said it has agreed to make cash payments and provide additional benefits to the dealers to resolve alleged past, current and future claims of losses in franchise value. Volkswagen and the dealers’ counsel will now work to finalize details of the proposed settlement, including how to apportion payments to dealers in the appropriate manner.
OEM officials indicated details of the agreement in principle are still under discussion and are expected to be finalized at the end of September. They pointed out any proposed agreement will become effective only after approval by the court, and the parties have agreed to keep further terms confidential as they work to finalize the agreement.
Under the agreement, Volkswagen added that it will consent to the certification — for settlement purposes only — of a class of VW-branded franchise dealers in the United States as of an agreed-upon date.
“We believe this agreement in principle with Volkswagen dealers is a very important step in our commitment to making things right for all our stakeholders in the United States,” said Hinrich Woebcken, chief executive officer of the North American Region for Volkswagen.
“Our dealers are our partners and we value their ongoing loyalty and passion for the Volkswagen brand,” Woebcken continued. “This agreement, when finalized, will strengthen the foundation for our future together and further emphasize our commitment both to our partners and the U.S. market.”
Early indications are that VW dealers welcomed the OEM’s move.
“Our clients recognized the best solution would be one that not only allows them to recoup lost franchise value and continue to employ thousands of American workers, but one that also charts a strong course for the recovery of the Volkswagen brand in the United States,” said Steve Berman, managing partner of the dealers’ counsel Hagens Berman.
“Now that there is a path forward for dealers, they can continue to work proactively to take great care of their customers, who are also VW customers.” Berman added.
Analyst reaction to VW offer
Kelley Blue Book senior analyst Rebecca Lindland sympathized with VW dealers that have been caught in the conflict between the automaker and federal regulators.
“The dealers are VW's front line in this matter, so getting them compensated is critical,” Lindland said. “Not only do they represent the company to the owners, they're also impacted financially since they're hamstrung on what products they can sell.
“So this is a very important settlement, and hopefully it will be enough to keep dealers and their employees afloat until this entire matter is resolved,” she continued.
Kelley Blue Book analyst Akshay Anand elaborated about what could be another positive step to smoothing over the entire situation.
“Reaching an agreement with dealers is yet another step in fixing the ‘Dieselgate’ mess,” Anand said.
“As time passes, news and buzz about the scandal seems to be waning, which is great for VW,” Anand went on to say. “There is still much more to be done, but over time, it seems Volkswagen may be able to move on and get back to focusing on what truly matters — building cars.”
Matt DeLorenzo, managing editor of Kelley Blue Book’s KBB.com, chimed in about what the agreement means for consumers.
“This really has no direct impact on owners of VW diesels, since it’s a compensation plan for the dealers who have been unable to sell 2015 models on the ground,” DeLorenzo said. “Unless or until there is a fix, the cars that have not been certified by government can’t be sold.”
FTC’s warning about false claims to vehicle owners
And speaking of those potential customers, the Federal Trade Commission and the National Automobile Dealers Association are collaborating on a webinar for dealers “not to make false claims” about the involved units.
The FTC recently asked NADA to provide its members with material that cautions sellers of certain VW and Audi diesel vehicles (including dealers of other brands) not to make false claims regarding the recent proposed consent orders concerning those vehicles that the Volkswagen has entered into with the FTC, other governmental agencies, and owners and lessees of the vehicles.
The FTC spelled out several concerns through a post on its business blog. The regulator indicated other companies have been reaching out to owners with alternate offers, which have included:
—Falsely implying that the offer is part of the pending $10 billion settlement
—Falsely telling owners they have to spend compensation under the settlement on a new VW or Audi
—Using “Act now!” tactics to lock owners into a separate deal before owners have the full picture of what they stand to gain as part of the $10 billion settlement.
“It’s unwise for anyone — including independently owned VW dealers — to make separate offers,” the FTC said. “The ultimate choice is the owner’s, of course. Our advice to them is to investigate their options before making a decision.”
Details of the proposed settlements are available at VWCourtSettlement.com.
In order to enhance dealers’ understanding of both the VW buyback program that is part of the proposed settlement and the one set forth by the FTC, NADA has arranged for the FTC to present information on these topics in an NADA University Online webinar that will take place on Sept. 8 beginning at 1 p.m. EDT.
Dealers and their representatives can go here to register.
Along with an analysis about how ongoing macroeconomic trends are pointing toward positive fortunes for dealerships, the team at KeyBanc Capital Markets attributed an upbeat conversation with Cox Automotive chief economist Tom Webb coupled with the July findings of its monthly dealer survey for producing such a “bullish” outlook.
Before delving into the takeaways from the chat with Webb, 60 percent of dealers surveyed told KeyBanc they posted a year-over-year used-vehicle sales increase in July. And 40 percent of the participants indicated that climb was more than 10 percent.
KeyBanc reported dealers generated those increases “despite the near-term headwind of grounded inventory under recall, and growth should accelerate as recalled parts are expected to come into service departments in the back half of the year.”
Furthermore, financing to turn used metal is on sure footing, too, as all of KeyBanc’s July dealer survey participants mentioned intact or increasing subprime and overall auto financing availability.
Those upbeat survey findings arrived in tandem with KeyBanc’s one-hour teleconference with Webb where analysts and the wholesale expert who is coming back again to the National Remarketing Conference at Used Car Week discussed used-vehicle pricing and demand in detail.
Webb reiterated many points he’s mentioned in previous reports from Auto Remarketing, stating that used-vehicle pricing is strong even as the supply of off-lease vehicles has been growing at 20 percent for the past couple of years, which reflects strong consumer demand.
“He believes, and we share this view, that used vehicle pricing outlook remains solid even as the off-lease volume continues to come in at about 16 percent annual growth through 2018,” KeyBanc analysts said.
“Better equipped, safer cars cost more when new and therefore they cost more when used,” they continued. “Increasing supply is a headwind, but Tom believes in this environment of strong demand and financing availability, it is an immaterial headwind, perhaps a 2-percent decline in prices, which is insignificant to demand or profitability."
Both Webb and KeyBanc noted increasing off-lease supply is good for both the new and used sales outlook.
“It supports new vehicle demand as a majority of lessees (about 80 percent to 85 percent) who turn in expired leases will leave the lot with a new vehicle lease,” KeyBanc said. “It supports used vehicle demand as it improves inventory availability.”
Additionally, KeyBanc published a new analysis of historical U.S. GDP growth, unemployment and U.S. light vehicle seasonally adjusted annual rate (SAAR). The firm noted that its analysis confirmed positive outlook for vehicle demand and dealers based on belief that:
—There is an apparent disconnect between auto stocks and the S&P 500 as, year-to-date, the S&P 500 reflects a positive investor sentiment on the U.S. economic outlook, but the same is not being reflected in the auto stocks.
—The U.S. economic forecast remains positive, in the 1 percent to 2 percent compound annual growth rate range in 2016 and 2017, and is expected to accelerate from weaker first-half growth, largely driven by consumer spending and the high-single-digit growth outlook in the housing market.
—Initial unemployment claims remain on an improving trend and the outlook remains positive, driven by a positive economic growth outlook, as there is a strong reverse correlation between them.
“If good economic outlook equals good labor markets equals good automotive demand, then good economic outlook equals good automotive demand,” analysts said.
With Enterprise Holdings sending resources as well, National Automobile Dealers Association president Peter Welch and National Automobile Dealers Charitable Foundation chairman Annette Sykora arrived in the flood-ravaged areas of Louisiana’s capital city and announced they would seek to raise $2 million for franchised dealership families displaced by devastating flooding.
Welch and Sykora are meeting with dealers and dealership employees in Baton Rouge this week to assess the need for financial assistance. NADA reported that initial estimates indicate more than 1,200 dealership families from 60 dealerships in Baton Rouge and surrounding areas have been flooded out of their homes and desperately need financial assistance.
“At NADA, we view our dealerships as one big family. When a member of our family hurts, we all hurt,” Welch said. “That’s why it’s time to come together and help our dealership family members who are hurting in Louisiana by contributing to the NADA Foundation’s Emergency Relief Fund.
“We call on auto dealers across America to help raise funds to help families through the NADA Foundation’s Emergency Relief Fund,” he continued.
The Emergency Relief Fund provides dealership families with funds up to $1,500 affected by natural disasters. Dealership employees can apply for financial assistance through the NADA Foundation's Emergency Relief Fund.
To date, the fund has supported more than 8,700 dealership families affected by natural disasters. To apply for assistance or to contribute to the fund, call (703) 821-7102 or visit www.nada.org/emergencyrelief.
“The flooding in Louisiana has been described as the worst natural disaster since Hurricane Sandy,” said Sykora, who served as NADA chairman in 2008. “Now that the flood waters have receded, the real work of rebuilding begins.
“Thousands of dealership employees and their families have suffered devastating losses from the recent flooding,” Sykora added about the disaster where as much as much 22 inches of rain fell in a 48-hour span. “The need for financial assistance will be significant and will last for months to come.”
Automotive Compliance Consultants heard the call and quickly responded with a donation of $1,000 to aid dealership employees affected by recent floods in Louisiana.
The firm also called on other vendors marketing to dealerships to get behind this NADA initiative and donate
“We hear the call from Peter Welch, president of NADA, for dealerships to donate $1,000 each to the National Automobile Dealer Association’s Emergency Relief Fund to raise $2 million for employees of dealerships affected by these devastating floods,” said Terry Dortch, president of Automotive Compliance Consultants.
“Though not a dealer, we owe it to dealerships nationwide who trust our compliance services to help out like this when disaster strikes so many who feed their families, pay their bills, and live in great communities due to their employment in America’s automobile dealerships,” said Dortch, a former dealer.
President Obama traveled to Baton Rouge on Tuesday, as well, and he echoed some of the same sentiment as NADA's leadership.
"Sometimes when these kinds of things happen, it can seem a little bit too much to bear," Obama said on Tuesday. "But what I want the people of Louisiana to know is that you’re not alone on this.
"Even after the TV cameras leave, the whole country is going to continue to support you and help you until we get folks back in their homes and lives are rebuilt," the president went on to say.
Enterprise sending money & vehicles
In the wake of devastating flooding, Enterprise Holdings is working with the insurance industry and disaster relief agencies to help meet the transportation needs of Louisiana residents and first responders traveling to the region.
The Enterprise Rent-A-Car Foundation — the philanthropic arm of the Enterprise brand — also is donating $100,000 to the American Red Cross to provide shelter, food, water and supplies for residents in the affected areas.
“Communication and cooperation are key in overwhelming situations like these,” said Mike Edwards, general manager and vice president for Enterprise Holdings, which operates National Car Rental and Alamo Rent A Car as well as the Enterprise Rent-A-Car brand in southern Louisiana.
“After a catastrophic event, there's an urgent and immediate need to support disaster relief teams as they lead cleanup and repair efforts,” Edwards continued.
Enterprise highlighted that it already has deployed more than 3,500 vehicles into affected portions of Louisiana to aid in the recovery process.
“We are coordinating with operations in neighboring states and shipping rental vehicles into Southern Louisiana as quickly as possible,” Edwards said. “We work directly with our insurance industry partners to coordinate and process information for the benefit of our mutual customers.
“We also are in direct contact with relief agencies so vehicles are ready and waiting for them to fan out across the affected parishes,” he went on to say.
Recall Masters, a provider of automotive recall news, data, training and communications, finalized an integration on Tuesday with Auto Rental Systems (ARS), a cloud-based loaner vehicle management system, in an effort to help dealers manage their loaner and rental fleets.
The companies explained the ARS Recall module can perform a nightly scan of all fleet units in the system and alert dealers to any new and outstanding recalls. The new add-in module is designed to eliminate the need for dealers to manually check on recalls for their inventory of vehicles.
Here’s how the process is geared to operate:
When a new recall is found, the recall data is downloaded to the system and linked to the vehicle by VIN. The dealership is then alerted via a summary email report and the vehicle is flagged in the system. When the required recall work is completed, the repairs can be logged and the vehicle can be placed back in service.
Just as the system maintains the rental history of all vehicles, it also maintains the history of all recall and warranty work performed by the dealer.
“Our customers’ needs continually change and we know we have to listen and respond. Recalls are coming like a tidal wave and our dealers just do not have the time to address this increased volume efficiently,” said Laura Tierney, sales manager for ARS.
“We have partnered with Recall Masters, the best in the industry, and with the ARS Recall module we take on the recall management work for them which allow our dealers the freedom to do what they do best: service customers,” Tierney continued.
At every touch point from vehicle sales to loaner cars and inventory management, automotive repair scheduling and service lane visits to auto rental and corporate fleets, Recall Masters insisted it now places actionable information at the fingertips of automotive sales and service centers, as well as consumers, nationwide.
“We are continually evolving our systems and database to provide the most relevant information possible to consumers and their automotive service providers,” Recall Masters chief executive officer Christopher Miller said. “One big key to keeping customer satisfaction high while servicing a vehicle is the overall convenience factor.
“To address this, most manufacturers offer service loaner vehicles for customers to drive while they perform the required repairs,” Miller continued. “As these recall customers can arrive already upset about the state of their vehicle, and can be rather emotional, it is vital to ensure a great customer experience.
“Our integration with the leading loaner car management system is just one more step in the right direction to ensure consumer safety and to mitigate risk of automotive-related injuries,” he went on to say. “Greater recall awareness and proactive management helps automakers protect their brand and build trusting relationships between dealers, rental car agencies, auto auctions and consumers alike.”
To learn more about Recall Masters complete beginning-to-end solution, schedule a demo or receive a free trial call (888) 651-4480, email [email protected] or visit www.recallmasters.com.
To learn more about ARS’ cloud-based loaner vehicle management system, get additional information of get a free trail, call (513) 334-1040, email: [email protected] or visit www.ARSloaner.com/RM/
The Blue Sky Report from Kerrigan Advisors released on Monday highlighted that the number of large, multi-dealership transactions rose by 52 percent year-over-year during the first half of 2016.
Along with seven other key findings from its analysis of the first six months of the year, Kerrigan Advisors found there was a decline in overall transaction activity. However, the firm also noticed the average size of transactions rose significantly.
Laying out the high, average and low multiples for each franchise in the luxury and non-luxury segments for the quarter, the report mentioned seven other key findings, including:
• 32 multi-dealership transactions completed.
• 22-percent increase in average transaction size as average dealership group sold represented more than three franchises.
• 16 percent decline in overall transaction activity.
• Dealership group sellers spurred by retirement, estate planning, lack of a succession plan and rising real estate prices.
• Domestic buy/sell market share increases as buyers attracted to higher return on investment versus imports.
• Private buyers continue to drive the market as publicly traded dealerships’ market caps decline.
• Publicly traded dealerships, as a group, sold nearly as many dealerships as they acquired.
“Many owners of multi-franchise groups, particularly those at or near retirement, are capitalizing on their ability to sell their groups to a single buyer in today’s market,” said Erin Kerrigan, managing director of Kerrigan Advisors.
“Even with the exit of most of the public buyers, private buyers and new entrants remain active and are often attracted to the scale provided by larger group acquisitions,” Kerrigan continued.
“And, while the activity level in the first half of 2016 was lower than the first half of 2015, if annualized it would exceed the number of transactions completed in 2014,” she went on to say.
The report also identified three key trends for the second half of this year, including:
• Transaction sizes will continue to rise.
• Public valuation declines in the first half of the year portend potential private valuation declines.
• The quality of current and future sales may weaken.
“While buy/sell activity declined in the first half of 2016 for the first time since the recession, driven primarily by the exit of most public buyers, we expect the pace of acquisition activity to increase in the second half of 2016, as private buyers and new entrants continue seeking sizable acquisitions and sellers continue to capitalize on attractive valuations,” Kerrigan said.
“But it must be noted that the decline in the public dealership values as noted by The KAR Index may portend a decline in future private values and the quality of industry sales may be weakening, increasing industry risk and resulting in lower dealership earnings,” she added.
The Blue Sky Report is published four times a year and includes Kerrigan Advisors' signature blue sky charts, multiples and analysis for each franchise in the luxury and non-luxury segments. The multiples are based on Kerrigan Advisors’ view of franchise values in the current buy/sell market and can be applied to adjusted pre-tax dealership earnings to estimate blue sky value.
The complete report can be downloaded here.
Rapid Recon founder and chief executive officer Dennis McGinn pinpointed what he called five common mistakes that go undetected and unresolved in vehicle reconditioning that can cost dealers gross margin and erode their ability to be more competitive.
“As the industry tightens over the months ahead, fixing these five broken processes now will increase reconditioning’s productivity, resource utilization, and time to market or speed to retail,” McGinn said.
“Recon’s efficiency — or lack of — permeates the entire store, so fixing these mistakes, it isn’t just a ‘recon’ issue,” continued McGinn, whose software company manages reconditioning time-to-market workflow to transform dealership reconditioning operations into profit centers.
Here are the five frequent reconditioning mistakes that put used-vehicle profitability at risk, followed by McGinn’s recommendations for correcting them:
1. Us versus them
McGinn explained recon touches so many areas of the business that managers who understand this knock down siloed “us versus them” attitudes that erode recon’s value to the bottom line.
For example, what adjustments might be suggested to appraisers and buyers so vehicles that flow into recon will require less time and money to become frontline ready faster? McGinn insisted this strategy will improve used-vehicle grosses and inventory turn.
2. Shared resources
McGinn pointed out a dealership’s largest customer is its used-vehicle department, but that it shares its critical need for service department resources with customer needs. This situation keeps waiting either retail or internal needs, thus the common tension here.
“Separate retail and internal service, physically if possible, but certainly philosophically,” McGinn said. “Where done, dealers report improved recon output and quality, and retail advisors and technicians become better at inspection thoroughness and upsell results.”
3. Overconfidence
Without measuring and monitoring recon processes, McGinn stressed that it’s impossible to gain an “honest” grasp of how efficient or inefficient recon is.
When dealers ask their recon departments about their cycle times, McGinn indicated their best estimates will be about five days.
“Yet when the clock measures recon, the actual cycle is eight to 10 days or more,” he said. “You will not maximize gross where a vehicle spends half or more of its magical 30-day retail window in reconditioning.”
4. Not counting the cost
McGinn maintained that the money-meter runs from the day the dealership acquires a trade or buys at auction until that unit is sold. This is called holding cost. NCM Associates pegs this daily cost at $32 per vehicle, on average, though some brand costs can be upward of $50 and more.
At $32 per vehicle per day, McGinn calculated that shaving six recon days off 100 units saves the dealership more than $19,000 a month or more than $230,000 a year.
“These costs (and savings) go against (or toward) actual sold gross,” said McGinn, who computed a sold gross of $3,200 is “actually” $3,008 if the vehicle took six too many days to get to the front line.
“A focus on improving workflow and production through recon puts dollars directly to the bottom line,” he added.
5. Allowing poor communications
McGinn explained that repair approval delays, misplaced vehicles, untracked sublet work and other communication delays wreck recon’s speed to market, throw efficiency in the ditch and frustrate staff.
To rectify those scenarios, he suggested that dealers get all departments on the same track — internalizing a collaborative time-to-market culture. Specifically, McGinn recommended:
—Devise recon repair/parts preapproval buckets based on vehicle mileage to eliminate approval delays.
—Use mobile devices with VIN, bar code or QR code readers to track recon inventory.
—Use software tracking to alert everyone about vehicle status and whereabouts, so everyone takes ownership of faster and more productive recon results.
Rapid Recon is leading time-to-market reconditioning software for franchised and independent dealerships. Rapid Recon benchmarks and best practices can help general managers, used-car managers and service managers fine-tune their reconditioning practices to achieve faster time to market that helps retain vehicle gross.
More details can be found at www.rapidrecon.com.
The National Automobile Dealers Association said thousands of store employees have suffered devastating losses from the recent flooding in Louisiana where storms left more than 20 inches of rain in some places.
In light of NADA officials stressing that the need for financial assistance “is great and will last for many weeks to come,” the association is asking members to donate to the National Automobile Dealers Charitable Foundation, which orchestrates its Emergency Relief Fund. That segment helps dealership employees after natural disasters.
Dealers can help the cause by going online to give at www.nada.org/emergencyrelief.
Checks also can be made payable to NADCF Emergency Fund and then sent to:
NADCF
8400 Westpark Drive
MS 7
Tysons, VA 22102
Dealership employees affected by the flooding can apply for financial assistance through the NADA Foundation’s Emergency Relief Fund. Officials pointed out that lost wages or commissions are not eligible for reimbursement from the fund.
Established in 1992, the fund has provided more than $5 million to more than 8,700 families. To apply for assistance, dealership employees can call (703) 821-7102.
According to a recent study by the Sierra Club, electric vehicles are not widely available on most lots. The demand is there, but the study informs that dealerships are not keeping electric vehicles in inventory, salespeople are not prepared and educated to talk about them, or the vehicles are not charged or unavailable for a test drive.
The Sierra Club conducted a multi-state study called Rev Up EVs, which examined the EV shopping experience. Respondents visited 308 dealerships across 10 states.
Rev Up EVs also found that:
• Respondents were 2.5 times more likely to find no EV on the lot in the nine other states involved in the survey, compared to California.
• The average number of EVs on the lot in California was twice the average number on lots in the nine other states.
• Respondents who asked to test drive an EV were told at 14 percent of the dealerships that the car was not sufficiently charged.
• Of the visits to dealerships with at least one EV on the lot, respondents indicated that about 33 percent of the time, the salesperson did not discuss the federal and state tax credits and rebates available to lower the cost of an EV.
• Of the visits to dealerships with at least one EV on the lot, volunteers found that 42 percent of the time EVs were either “not prominently displayed,” or were only “somewhat prominently displayed.”
Competitive advantage
Your dealership has a competitive advantage if you have EVs in inventory, especially with National Drive Electric Week coming up Sept. 10-18. The week is a nationwide celebration to heighten awareness of today’s widespread availability of plug-in vehicles and highlight the benefits of all-electric and plug-in hybrid-electric cars, trucks, motorcycles and more.
If you have EVs, you may want to reconsider how you are marketing that inventory. The Rev UP EVs study found that 65 percent of California drivers surveyed wished there were more purchasing options.
You can also craft specific dealership social media posts around your EV inventory. Consumers are looking for these types of vehicles and it’s important you take advantage of it. A good place to start is by determining how to get your inventory in front of a national audience.
List your electric vehicle inventory nationally on eBay
eBay is a national marketplace that lets you market your inventory to customers all over the country. Your dealership can list inventory on eBay via a national auction or national classifieds.
—National classifieds: eBay has introduced a new option called national classifieds that is gaining traction with dealers. Think Craigslist-style listings, but with a much broader audience. This option is 100 percent hands free and by syndicating your pre-owned inventory to eBay, you can get national exposure for a set monthly fee.
—National auction: Most eBay listings are in an auction-style format. Bidding on items in this format is fun for consumers and gives them more control in the buying process. Dealers like national auctions because every bid is a lead.
Consumers are using eBay
eBay builds consumer confidence with a number of programs to put shoppers’ minds at ease. The site offers free vehicle history reports and financing options, and consumers can even schedule a third-party inspection via WeGoLook.
As you can see from the Sierra Club’s Rev Up EVs study, there is a demand for electric vehicles, but consumers are struggling to find them. Take advantage of this demand and promote your inventory nationally in a place where customers are looking for it.
Adam Goldberg is the marketing manager at LotVantage, a provider of digital marketing solutions for automotive, marine, powersports, RV, trailer and outdoor power equipment dealerships. He can be reached at [email protected]. You can also access more social media tips at LotVantage.com/blog.
Asbury Automotive Group said through social media accounts earlier this week that the head of its Q auto program, Casey Coffey, will also take on the role of national used-car director for the dealer group.
Coffey will continue to lead the Q auto program, which includes standalone used-car retail stores.
“Casey is a proven leader who is very knowledgeable about our business. We look forward to the new level of performance and excellence Casey will foster with Asbury’s Used Vehicle Department,” the Facebook post from Asbury said. “Please join us in congratulating Casey in his new role.”
Hendrick store relocates
In other news from dealer groups, Hendrick Automotive Group announced that its Hendrick Honda of Charleston has relocated from 1478 Savannah Highway in Charleston, S.C., to 1539 Savannah Highway.
The store is now adjacent to Hendrick Hyundai of Charleston.
“We’re grateful for the opportunities we’ve had in Charleston over the past 36 years,” Rick Hendrick, chairman of Hendrick Automotive Group, said in a news release.
“Not only is it a popular tourist destination, it’s also a terrific place for our customers and more than 800 of our team members to live and do business,” he added. “We are committed to the community, which includes our continued investment in the revitalization of the West Ashley area.”
Hendrick Honda of Charleston general manager Wendell Hairfield added: “We couldn’t grow into a new facility without a focus on our employees and customers. With the addition of 25 more team members, an expanded retail area, extended service drive and the latest interactive product technology, this dealership is a benchmark location for Honda in the Southeast. It will provide an incredible overall experience for our retail and service customers.”
