What’s happening with retail auto sales? Depending on which publication you read, July sales were tepid, mixed, or jumped to an eight-month high SAAR. All are true, depending on your point of view.
It is clear, however, that sales growth is slowing, perhaps even plateauing. At the same time, the very foundations of the retail vehicle sales business are being shaken by new technologies and new ownership models. It can be either a very scary or a very exciting time to be a car dealer.
Some dealers have tried to anticipate these changes. Red McCombs, the legendary dealer in San Antonio, is one such person. He and his daughter Marsha Shields were using the internet to promote sales before it became SOP for dealerships.
Always looking ahead, McCombs also a few years ago formed an investment firm to support companies with promising auto retail technology. The firm has just launched its second investment fund.
In this issue, Tony Rimas, a managing partner at Fraser McCombs Capital, talks with us about lessons learned in the first fund and how smaller dealership groups and even single point dealers can stay ahead of the fast-changing retail curve.
When I talk with dealers about acquisitions, they almost always discuss ways they figured they can improve a dealership’s operations. But what if a desired acquisition is already at the top of its game where sales are concerned? How to justify paying that high multiple?
Take a close look at the dealership’s back end, Ken Rosenfield tells us in this issue. There could be a lot of savings and improvements there, as well.
Another place you should look for savings? Fixed operations. This week, Jaimsyne Blakely, vice president of strategic solutions at our new contributor, Chris Collins Inc. discusses how the right system can draw additional profits out of a dealership’s fixed operations.
And of course we have Transaction News.
Enjoy!