During the years following the COVID pandemic, many dealers, unable to remain disciplined during the challenging times, replaced good habits with bad ones. However, as Dale Pollak, Executive Vice President of Cox Automotive and Chairman and Founder of vAuto, argues, now is the time for storefronts to get back into shape, before the new market leaves them behind. CBT News anchor Jim Fitzpatrick got the chance to meet with Pollak to hear more of his insights at the 2023 NADA convention.
Key takeaways:
1. Although the market is showing signs of recovery, Pollak believes that 2023 may still have surprises in store for dealers.
2. Dealers who stay disciplined, whether the market is up or down, are the ones who survive when times get tough.
3. The most important discipline for car dealers to maintain is to never stock more cars than they can sell in a rolling 30 day period.
4. Although cars began to appreciate in value following the COVID pandemic, they are now not only depreciating, but doing so at an accelerated rate.
5. To address the constraints high prices and interest rates have placed on consumer finances, dealers will need to remain vigilant in keeping their inventories low enough to afford buyer incentives.