In today’s episode of CBT Now, Damon Lester, Chairman of the National Association of Minority Automobile Dealers (NAMAD), joins us to discuss the successful 2024 NAMAD Annual Conference. The event, held at the luxurious Fontainebleau in Miami, featured influential speakers, engaging discussions, and valuable takeaways for the automotive industry. Lester also joins us to provide insights into the current challenges facing minority dealers and offer strategies for dealerships to adapt and succeed in a changing market.
Key Takeaways
1. Over the past two decades, the NAMAD conference has expanded from 150 attendees to over 1,300. This growth demonstrates the increasing importance of minority dealers in the automotive industry and the organization’s sustained efforts to empower them.
2. A significant focus of the 2024 conference was fostering the next generation of dealers. NAMAD has launched a leadership academy in partnership with Ally, designed to train and accredit aspiring dealers, preparing them for successful careers as business owners.
3. Mark Bland from S&P Global presented critical data showcasing the increasing buying power of minorities, who now purchase over 40% of new cars and trucks. NAMAD emphasizes that dealers who fail to engage with this “future majority” risk stunting their growth.
4. Dealers, particularly minority-owned dealerships, face tightening market conditions due to high interest rates affecting both consumers and floorplan financing. Lester advises focusing on quality deals over quantity to ensure long-term survival in a difficult market.
5. As a Nissan dealer, Lester acknowledges the challenges Nissan faces but emphasizes the brand’s resilience and the strength of its product lineup. Despite tough times, dealers are focusing on certified pre-owned sales and fixed-ops to maintain profitability.
“Business owners are adapting to a tightening market, but it’s all about focusing on the quality of deals. In the long run, it’s not about volume but ensuring we provide excellent service and maintain profitability." – Damon Lester.
