Today’s Featured Interview:
COVID-19 certainly challenged dealers and their ability to operate. But how much ground was lost? How can it be made up? We caught up with auto acquisitions specialist and CEO of Dave Cantin Group, Dave Cantin, to ask him these very questions. Watch the full-length interview here.
Top Headlines:
The COVID-19 pandemic has impacted dealers in more ways than one. Online buying and at-home delivery have been tremendous assets for dealers to work around the virus. However, it’s much harder for dealers to work around a lack of inventory. Michelle Krebs, Senior Analyst for Autotrader, said that new vehicle inventory numbers are the lowest they’ve been in almost nine years. Consumers will turn to used cars during the new car shortage, as auto plants try to regain a foothold on restarting full production.
One thing consumers might notice when they hit the used car lot is a higher price tag. Used car values hit new highs in both June and the first few weeks of July. Rising values in pre-owned vehicles spell good news for auto stockholders as stocks such as AutoNation and CarMax are up 78 percent on average.
The era of SUV domination continues as more automakers shift their focus away from sedans. Mercedes-Benz is ending its C-Class production in Alabama as the plant will turn its focus to sport-utility vehicles. The plant will now only build three models – the GLE, GLE Coupe, and the GLS.
Construction of U.S. homes jumped 17.3 percent in June. Homebuilders are reaping the benefits of the lowest mortgage rates in 50 years. The spike in home building could also spell good fortune for heavy-duty and midsize trucks.
News Stories & Opinion:
Oil Prices Suppressed by Low Demand, How Auto Retail May React
American oil prices have rallied back from an all-time low of negative $37.63 per barrel for May futures on West Texas Intermediate (WTI) crude on April 20th. At that price, a seller would actually have to pay to have the buyer take their inventory – an unlikely scenario that would typically see sellers hold their product until the prices rebound. Last week, the WTI crude index was up to $41.40 per barrel before it began to regress once again. At the opening bell on July 20th, WTI Crude was down to $40.25 per barrel. Read More
Why Video Marketing Should Be In Your Dealership Marketing Strategy
For many dealerships, the challenge is to find new and creative ways to appeal to consumers, especially in a world where coronavirus is causing sales and consumer confidence to dip. Fortunately, there is a range of ways to still engage your audience affordably. Read More
Did you enjoy today’s automotive newscast? Please share your thoughts, comments, or questions regarding this topic with host Jim Fitzpatrick at jfitzpatrick@cbtnews.com.
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