The Federal Reserve today raised its benchmark interest rate by twenty five basis points. Those sweetheart zero percent loan deals were already hard to come by, now they are likely to all but disappear. Auto loan rates are already at a more than seven-year high, according to Cox Automotive chief economist Jonathan Smoke. Consumers are going to need to negotiate even harder for a good rate on their loan, the part of the buying process they least like, Smoke says in his blog.
On the sort of bright side, the Fed indicated fewer rate hikes in 2019 than it had previously signaled. But, says Smoke, any additional rate hikes mean the already shrinking new car buyer pool will get even smaller. For dealers, that means working even harder on the customer experience. How do you make price negotiations pleasant?
In today’s issue, I write about Tammy Darvish, a hero to many dealers for her work in Washington on the Automobile Dealer Economic Rights Restoration Act, which restored auto retailers’ rights after some auto manufacturers sought to close dealerships. She is now at Capital Automotive, a job she says appealed to her because it also allows her to help dealers.
How closely do you examine your balance sheet? Are you more focused on your income statement? Paying more attention to your balance sheet can help avoid ugly income statement surprises, says Eide Bailly. Read why in this issue.
We all know which section you click on first, however – Transaction News.