CBT News anchor Jim Fitzpatrick had the opportunity to meet with Dale Pollak, Executive Vice President at Cox Automotive & Founder of vAuto, at the 2024 NADA Show.
Catch all of CBT News’ coverage of the 2024 NADA Show here.
Key Takeaways:
1. Tighter profit margins for Dealers: Pollak observes that dealers have experienced a good year, but are starting to feel margin compression. This has prompted dealers to seek competitive edges, indicating a shift towards more strategic operational tactics.
2. Challenges in inventory: The primary challenge for dealers in 2023 was not selling cars but acquiring them. Pollak emphasizes the importance of a new investment-minded approach to inventory management. He recommends vAuto’s ProfitTime GPS, which aids dealers in making data-driven decisions about pricing and selling cars to maximize ROI.
3. Different Strategies for Different Cars: The ProfitTime system categorizes cars into tiers (e.g., platinum, gold, silver, bronze) and recommends pricing strategies based on their potential to achieve the highest ROI within optimal time frames. This nuanced approach moves away from the traditional, calendar-based pricing strategies.
4. Forecast for 2024: Pollak is optimistic about 2024, citing improvements in vehicle affordability due to depreciating car prices and the anticipated reduction in the cost of capital. He suggests that as affordability improves, so will the business for dealers.
