Dealerships know that the market is changing, but many are still lacking clear guidance on how to prepare for the new automotive landscape. Rusty West is the President and CEO of Market Scan and has years of experience examining trends in the car business. CBT News anchor Jim Fitzpatrick had the opportunity to sit down with West at this year’s NADA convention in Dallas, Texas, where he offered his advice for dealers in 2023.
Key takeaways:
1. Supply is coming back to the dealership, but the following months are likely to be some of the most challenging for the auto industry since the COVID pandemic.
2. West encourages dealers to pursue leasing for the near future since it can improve customer retention and serve buyers who are too strapped for cash to afford a loan.
3. Since vehicle shortages have made the sales process comparatively easy, many employees have fallen out of practice. If they hope to face the new market, dealers will need to help them relearn their sales tactics.
4. Since 2020, repossession rates have doubled in the prime segment for the first time in history.
5. West believes that the increased duration of financing plans should be a major concern for the industry, and expects to see the fallout in the near future.
“Having a big disconnect between digital retail and what goes in your dealership…those days need to go away.” — Rusty West
Notable background:
— Market Scan was awarded a 2023 AWA award for its Automotive Payments as a Service™ solution in the “Automotive Payment Platform” category.
Click here for more 2023 NADA Show coverage on CBT News.
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