A “lease tsunami,” longer loan terms, lowering of SAAR forecasts. It can be a bit daunting to read the automotive industry news these days. Not so long ago the headlines were a lot cheerier. In January, the record-setting SAAR of 2016 was the big thing.
But, the retail auto industry is cyclical, we all know that. And a SAAR of 17.2 million isn’t so bad. Dealers are super-resourceful people and they will use that trait to keep their business buzzing, I predict. But, it won’t be easy. In the buy sell world, a growing number of older owners will decide it is time to sell. And more of the next generation will decide the car business isn’t for them.
The rate of buy sells may have slowed in the first quarter of this year, according to some of the reports that are out. But everyone I talk to is very busy, and the factors are in place for supply to remain robust. Negotiations will become more challenging as sellers see a cup half full and buyers insist the cup is half empty. I predict a busy year until the end for my readers and others.
Putting away my crystal ball, one nice aspect of being a very focused publication is that we can offer our readers some very specific information that may not make it into more general publications. This week, a new contributor, Vic Lance, discussed some of the issues surrounding licensing and surety bonds during a buy sell.
Also this week, we’re re-visiting a useful post by Ira Silver of MBAF. If you don’t have the people to manage a newly-acquired franchise, you might as well not acquire it, he cautions.
And then there’s Transaction News!
Enjoy!
