Despite a challenging start to the year, Jack Kain Ford is adapting to shifts in consumer demand, inventory levels, and the growing presence of electric vehicles. On today’s episode of Inside Automotive, General Manager and Dealer Principal Bob Kain shares insights on the Kentucky market, the role of EVs, and why he believes dealerships can still thrive.
Bob Kain reported that January sales at Jack Kian Ford were down approximately 10% in new vehicles compared to expectations, though February showed signs of improvement. While popular models like the F0150 and Bronco experienced slower sales, the dealership remains optimistic regarding Ford’s commitment to producing more affordable vehicles for younger buyers over the next 18 months.
However, on the EV front, Kain outlined challenges with Ford’s current sales model for the F-150 Lightning, which required dealers to sell from a centralized pool rather than stocking the vehicles on their lots. Despite this, he mentions that customer interest in EVs remains robust, with many shoppers willing to consider electric models if range and charging infrastructure improvements continue. However, he noted that EV charging accessibility remains inconsistent outside urban areas like Lexington, Kentucky.
Kain also discusses the evolving dynamics of used car sales, which points to the many consumers now facing negative equity when trading in vehicles purchased at peak prices. This has required dealerships to retrain sales teams on traditional selling techniques as the industry moves away from a pre-pandemic environment of easy sales. To avoid over-reliance on auctions, Jack Kain Ford acquires about 5% of its used inventory from trade-ins or direct purchases.
Despite the rise of large dealer groups, Kain remains confident in the viability of independent dealerships. He emphasized the flexibility and customer focus that smaller stores can provide, differentiating themselves from corporate-owned competitors. Having previously managed multiple dealerships, he believes focusing on a single store allows for better customer service and operational efficiency.
"We think that the EV market is here to stay. It’s like a train—the train has started motion, and I don’t think that train is going to be stopped very easily." – Bob Kain.
