Car Dealership Guy

Most *smart* dealers invest heavily in merchandising photos, but is it enough? At The Niello Company, Dennis Gingrich uses advanced software to photograph every car as soon as it hits the lot. Twice a week, they track how many vehicles—new and used—are fully photographed. So, what does this mean for their bottom line? Dennis explains his strategy: #DealerImageProPartner

Which brands are set to dominate in the next two years? At Jim Coleman Automotive, Patrick Coleman is bullish on 7 brands with upcoming products that could shake up the market. Here’s why he’s excited:

[NEWS] The messy world of new car supply: New car inventory in the U.S. dipped slightly in August — staying below 3 million units. But there’s more to the data than meets the eye: With new car days' supply rising from 57 to 72 YoY, dealers (and automakers) feel the heat to move cars fast to maintain market share and meet sales targets. But the approaches brand by brand are widely different. Some brands like Nissan are hiking incentives above 10% of the avg. transaction price while others like Dodge are pulling back. Meanwhile, dealers are feeling the squeeze. High inventory levels drive up financing costs and compress margins. As the industry juggles inventory with incentives, there’s a bigger risk at play: a race to the bottom on pricing. Read today’s full car market analysis, presented by Edmunds: https://lnkd.in/eMdWbpEW (Data source: Cox Automotive / CarEdge)

Car recall chaos continues: It’s been 10 years since two major recalls shook the auto world— GM's faulty ignition switches and the Takata airbag fiasco saw recall numbers peak in 2014-2016. Fast-forward to 2024, and recalls (while not quite as bad) are still widespread due to more precise reporting and faster OEM reactions. Plus: 1. Many automakers lack clear supplier / supply chain oversight on how parts are made and inspected. 2. OEMs are rushing to catch up on production delays caused by COVID, and things are falling through the cracks. 3. Software-defined vehicles are more prone to bugs, and over-the-air updates can fail or be exploited. Regardless of the reason, dealers are under pressure to fix recalls fast — which often means putting aside higher-revenue jobs for time-consuming and less lucrative work. Recalls leave customers frustrated too. Often, they receive urgent notices telling them not to drive their vehicles, only to deal with long waits and parts shortages at the dealership. Yet, there are opportunities for dealers that can’t be overlooked— Recalls are a chance to reconnect with customers who haven’t been to the store in a while, give them positive experiences, and possibly create revenue streams from other services. But ultimately, the future of recalls will depend on who addresses the root causes, not just the symptoms. Read the breakdown here, together with Cars Commerce: https://lnkd.in/eV7XEttF

The BIGGEST pain point when buying a car? Time spent at the dealership. Still. But… There is some positive news. Time spent at dealerships is trending down, meaning transaction speed is improving and customers are happier. Here’s a big reason why (in addition to the obvious higher inventory levels): Many dealers are investing in integrated dealership systems, basically eliminating the need for redundant steps. Remember when you submitted a lead to a dealership and then found yourself having to resupply the SAME exact info once you got to the showroom? That’s going away (finally). More consumer trend data from CDK Global here: https://lnkd.in/gAqT8Z_E (Data via CDG partner: CDK Global #cdkglobalpartner)

[NEWS] Stellantis strikes back after dealer outcry: The automaker pushed back against dealers in response to a scathing open letter from its National Dealer Council. The letter’s biggest accusation? CEO Carlos Tavares is leading the company into “disaster.” Calling the letter a “public personal attack,” Stellantis said dealers should have these kinds of conversations behind closed doors. The automaker also defended its strategy — sales were up 20%+ MoM in Aug. Meanwhile, dealers claim these same policies have caused market share losses, layoffs, and a falling stock price. Bottom line: Tensions between dealers and OEMs are nothing new, but rarely are they so public. As dealers struggle to keep the faith — the automaker’s uphill battle just got steeper… Read today’s full car market analysis, presented by Edmunds: https://lnkd.in/gjJzwD6M (Data source: Reuters)

[NEWS] GM and Hyundai take a leap of faith: Together, the OEMs plan to cut costs and produce new tech through a memorandum of understanding. And everything is on the table, from hydrogen to ICEs to EV batteries. They’re not alone… automaker partnerships are popping up left and right this year. Most are shoring up defenses against Chinese competitors like BYD. Take Honda for instance. It joined forces with Mitsubishi and Nissan within months of Toyota announcing its own co-op with Mazda and Subaru. And as more alliances form— More pressure gets put on manufacturers to find new partners. Bottom line: The lines in the sand are getting redrawn — let’s see if they’ll last. Read today’s top automotive stories, presented by Edmunds: https://lnkd.in/ep7meA8P (Data source: Hyundai)

Return policies make some dealerships hesitant, but how many consumers *actually* return a car? Dennis Gingrich from The Niello Company has a 7-day, no-questions-asked return policy on pre-owned vehicles. It’s been great for building trust, but does it ever backfire? Here’s how the numbers stack up:

[NEWS] Stellantis shells out $406M for EVs: The massive investment will be divvied up between 3 different plants to produce electric Ram 1500s, Jeep Wagoneer EVs, additional battery infrastructure, and more. But the timing is a head-scratcher. Right now, Stellantis faces declining sales, quality issues, and tensions with the UAW. And dealer frustration is hitting a boiling point. In an open letter, dealer network leaders accuse CEO Carlos Tavares of focusing on short-term profits at the expense of brand health, market share, and growth. Bottom line: This is questionable optics from Stellantis, given all of their recent cost-cutting measures (i.e., layoffs). It’ll take a lot more than EV investments for the company to eventually right the ship. Read today’s top automotive stories, presented by Edmunds: https://lnkd.in/erY2tuRn (Data source: Stellantis / Insider tips)

Imagine selling $725M in luxury cars: That’s the reality for Dennis Gingrich, the Sales and Finance Director at The Niello Company. I spoke with Dennis to find out how he doubled profit per vehicle, what products are selling well, and which brands have the highest margins. Top lessons learned from Dennis: 1. Key differentiators. — Successful people know they can’t control everything. — Unsuccessful people think they know everything. — Taking accountability and staying humble is paramount in the car business. 2. A close look at luxury F&I. — Porsche and Jaguar Land Rover are the top performers for the Niello Company. — Training, recruitment, and employee incentives have helped drive profit per vehicle increases. 3. Strategizing F&I. — Introduce F&I products early on in the sale process—not the end. — Cosmetic and security products are top sellers for F&I. — Mitigate risks by helping customers protect their investments. 4. Merchandising is critical. — Consistent, high-quality photos boost clicks and leads. — Only sell vehicles you know fit the customer’s needs and budget. 5. Boosting overall performance. —Turn inventory as fast as possible to limit depreciation. — Factors reconditioning costs into the appraisal process. — Consider leveraging a seven-day, no-questions-asked return policy to build trust. The full episode is live! Stream it now - YouTube: https://lnkd.in/dsH5Avfd Apple: https://lnkd.in/dqkKfDPA Spotify: https://lnkd.in/dqbPAJG4