CBT automotive newscast: August 3, 2021

Featured Interview:

5 ways to deliver at least one vehicle per day, each day of the month – Sean Gardner, Joe Verde Group
Just how much are you leaving on the table in terms of vehicle delivery? Joining us today is Sean Gardner, Instructor and Sales Trainer with the Joe Verde Group shares five ways salespeople can deliver a vehicle every single day including daily inventory walks, goal setting, and more. Watch the complete segment here.

Top Headlines:

According to Sonic Automotive President Jeff Dyke, the used car market is starting to show signs of slowing down. The average transaction price for a used car was $25,410 in Q2 of 2021, up from $22,977, in the first quarter and up 21% year-over-year. That figure marks the highest average price for used cars that Edmunds has ever tracked. Several automakers, including general motors, have cut new vehicle production, due to the chip shortage, creating a damper on inventory and driving up prices. However, as inventory for new cars increases, prices are decreasing as much as $2,000 for used vehicles.

When it comes to the car-buying process, many consumers want to stay clear of price-haggling, warranty-pushing, and simply enjoy their new vehicle. Modern retailing innovations and strong sales have thus created high-performing stocks in the automotive market. CarMax is priced at $136.04 up 38.68 year-over-year. AutoNation share prices are at $122.55, another increase of 18.77 since the end of Q2. Asbury Automotive Group saw a huge annual jump in stock price as well, going from $100.37 this time last year, to 210.14. The top three fastest-growing auto technology stocks are Xpeng, Nio, and Workhorse Group, all of which occupy the emerging electric vehicles space.

If you’re feeling the burn in your pockets at the pump, you are not alone. Although gas prices took a dip, they’re back on the rise, on both a national and state level. The national average is $3.18 per gallon, up 2¢ from last year. Less than a year ago, the national average was a dollar less. AAA expects the national average to remain above $3 per gallon throughout the summer. With students heading back to school, another month of summer travel including the labor day holiday, gas demand will likely remain high.

News & Opinion:

Rivian factory in UK possible as carmaker reportedly in talks with ministers
Rivian Automotive has been in discussions with UK ministers about building the first factory outside of the United States to produce their all-electric vehicles. The news broke on Saturday by Sky News whose source claims Rivian has been in “secret negotiations” with ministers from the British government regarding a potential factory site near Bristol. An investment by the start-up carmaker would likely be worth in excess of $1.3 billion US. Any deal to build a factory would be seen as a massive success for both Rivian and the UK’s automotive sector. Read more

5 areas where service managers can control costs
With the average car spending nearly 12 years on the road, your service department could be highly profitable if managed correctly. With service managers constantly being evaluated on performance, it only makes sense to look for areas where you can control costs. We evaluate the overlooked areas where your shop might be losing money. From tightening up the use of specialty tools to negotiating uniform contracts, there are plenty of ways to pinch pennies for a more profitable operation. Read more