New car sales in October look to be coming in at 1.35 million units, according to Ward’s Auto, equating to a seasonally adjusted annual rate of 18.0 million. That’s good news for dealerships. On the other hand, the average transaction price was basically flat in October, says Kelley Blue Book, and the price — $34, 263 – was supported by generous incentives. “Flat transaction prices combined with ever-growing incentive spending signal headwinds for the new-vehicle market as 2017 nears its end,” says KBB analyst Tim Fleming.
If you are thinking of selling your dealership in this environment, the decision whether to engage a broker or financial advisor for the transaction carries even more weight. How to read a market that is good, but with caveats?
This week, Joe Aboyoun weighs the considerations for engaging a broker or advisor. He also discusses important considerations should you decide to make that move. Reading his column can save you some money.
It can be hard to discern how factors such as the SAAR will impact a dealership’s value. Not so difficult is discerning how the increasing digitalization of the retail auto experience is impacting the overall outlook for dealerships. For those that don’t adapt to this change, the outlook is grim.
You may think there is plenty of time to make changes in your operating methods to address digital disruption. Actually, the time is now. In this issue, I write about my discussion with Max Zanan about his new book on how to survive in a digital world. One of the most important changes he recommends is to move away from a commission-based payment structure. Read my story for more of his recommendations.
And then there’s Transaction News.