How used vehicles can provide stability when new vehicle inventory runs thin – James Boening

Today on CBT News, host Jim Fitzpatrick is joined by James Boening, President of Boening Enterprises. His company has formed many partnerships with many technology companies to stay in front of automotive professionals. Boening has used his experience as an automotive dealer to create a platform to help dealers tackle their biggest challenges.

Boening begins the conversation by discussing the necessity of acquiring new and used vehicles. New vehicles have been harder to find due to the ongoing chip shortage that is impacting automakers across the world. The lack of new vehicles has created a spike in used-vehicle demand, making pre-owned cars and trucks harder to come by. 

Boening then discusses a term he coined, called “supergross.” He is currently writing a book on the topic. Boening says that supergross is a mind shift of a widget. Dealers have to change their mindset on profit margin for used vehicles to see that they can make money on both the front-end and the back-end. 

Boening says that he believes digital retailing will play a major role in the future of the automotive industry. He says that many car shoppers are no longer interested in spending time in the dealership or negotiating. Boening says that the online model will usher in more one-price car shopping. 

Boening concludes the conversation by discussing what dealers should focus on in the second quarter of 2021. He says that all dealers should have a linear focus on pre-owned acquisitions. Dealers who don’t make used-car inventory a primary focus will be left behind as more franchise dealers enter the market.

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