The Fed cut interest rates by 25 basis points today, its third rate cut since July. But October’s interest rates were apparently still too high for consumers – that and rising new car prices should push October’s SAAR down slightly compared to the same month in 2018, according to Cox Auto.
Those lost sales were not likely due to customers choosing to take an Uber or Lyft instead of buying a car, however. A recent study found that people are buying more cars than ever. Turns out that when people get married and start having kids waiting for your Uber or Lyft ride when you need to pick up your kid’s prescription (or similar urgent matters, natch) makes jumping immediately into your own car too convenient and personal ownership has increased over the last 10 years.
Most of those cars were purchased from dealerships, and this week’s issue is focused on dealers. First, we bring you a profile of Mike Terry. He just acquired his first dealership and is raring to put into practice his ideas on dealership management. They include something he learned from the owner of the dealership he worked at previously: Transparency is the best policy. That helps dispel the image that dealers are all trying to scam the consumer, says Terry.
Our second piece this week stays on the theme of having a philosophy around which to center a dealership’s management style. We’re re-visiting our profile of Courtesy Auto Group in Arizona. It is focused on taking care of its employees and especially taking care of its customers, dealer principal Scott Gruwell told me. It seems having a clear mission – whether it be transparency or taking care of customers – is a key to succeeding in the retail car business.
Then there’s Transaction News.