With 2025 days away, it’s the perfect time to reflect on the big wins and challenges that defined the retail automotive industry in 2024. On today’s episode of CBT Now, we’re joined by Don Hall, the CEO and president of the Virginia Automobile Dealers Association (VADA), to share his perspective on the state of the industry and what lies ahead.
The past year was a pivotal one for the retail automotive industry. Manufacturers have continued to explore new strategies to prioritize their interests. Still, the success of these efforts hinges on the ability of dealership staff to deliver an exceptional buying experience for the consumer. Dealers are the cornerstone of the industry and bridge the gap between the manufacturers and the customers.
Looking ahead to 2025, Hall sees a bright future for the next generation of car dealers. This group has a firm grasp of what it takes to provide consumers with the best buying experience possible. Coupled with new technology, like artificial intelligence (AI) and digital retail platforms, it helps improve customer satisfaction.
Hall’s reassurance stems from his belief that adapting to consumer behaviors–particularly the increased reliance on online shopping and research–is the key to success. He encourages dealers not to fight the internet and instead embrace it. Customers spend seven to nine hours researching online before visiting a dealership. Dealers must understand that the consumers walking through the doors now are informed and educated. Providing these clients with transparent pricing and great payment options and facilitating an excellent buying experience is crucial, or they will take their business elsewhere.
In addition, Hall firmly believes that continuous education and growth are the keys to success. He’s enrolled in the NADA Academy to see first-hand what the newer generation is being taught. Among the takeaways that stood out to Hall were the newer methods for measuring dealership performance through advanced analytics and mathematical equations.
Moreover, a main topic of discussion in 2024 has been the controversy surrounding Volkswagen’s subsidiary company, Scout Motors, and its attempt to bypass franchise dealers and sell directly to customers. Hall defends the franchise model, emphasizing the critical role that dealers have played in building legacy brands like VW and Audi. He notes that dealers are the indispensable cornerstone of the industry, bridging the gap between the manufacturers and the consumers. He and the Virginia Automobile Dealers Association stand ready to fight alongside the NADA and other state associations to preserve the franchise laws.
As the industry prepares for 2025, Hall’s message is abundantly clear: embrace change, invest in education, and prioritize the customer experience. Dealers who do so will be able to effectively navigate the challenges ahead and thrive in the new year.
"Let's stop the manufacturers from trying to sell direct... We are the best source for taking care of customers. We are the best informed. We've got the people. We've put the money out there to do it. We're gonna sell cars best, and we're gonna take care of our customers." – Don Hall
