It has already been an interesting week in the auto world. Today the Fed, not unexpectedly, raised the interest rate. It was a tiny increase, but the Fed signaled it intends to continue to inch up rates over the next few years.
Also today, news came out that the State of California, which is usually a trendsetter in such matters, said it would require autonomous vehicles to be not quite so autonomous. A driver must be in such vehicles for the time being.
Last week I wrote about the possible impact of an interest rate rise. This increase will have little effect on sales or buy/sell activity. But, as NADA chief economist Steve Szkaly pointed out, dealers should not let themselves be like frogs in boiling water and slowly get cooked by incremental increases in interest rates.
I think the same analogy is useful where self-driving cars are concerned. Dealers can’t let themselves be lulled by legislative roadblocks that will slow the onset of such technology. It is coming so be ready.
Enough of that gloom and doom. This week, I talk with Eric Kahn, an investment banker turned successful car dealer in New York State. Kahn is growing his dealership group with the help of long-term relationships and persistence, both worth taking notice of.
Also in this issue, Don Ray returns with some advice on not being afraid of change. Dealers face it all the time, but these days the changes seem to be coming fast and furiously. Ray looks at the possible benefits of reinsurance to your bottom line.
We also have Transaction News, natch.
Enjoy!
