The SAAR is once again at around 17 million, however, Trumps’s tariff and the sudden hike in interest rates may have a negative impact on the second half of the year with vehicle sales. To help us make sense of what the future may bring for dealers across the nation, we are joined by Jonathan Smoke, Chief Economist for Cox Automotive, in the CBT News studio where he helps us break down what all these changes mean to the automotive industry.
We have started 2018 off on a high note. From new car sales steadily staying above 17 million to used vehicle sales also growing in popularity, dealerships of all kinds have been benefiting from the consumer’s markets across the industry. But, as the saying goes, all good things come to an end and we can expect to see such happen throughout the automotive sector.
Jonathan Smoke speaks to CBT News’ Jim Fitzpatrick about the anticipated decline that is excepted and how it could be a wider spread than some may believe. Dealers and industry professions will likely see a gradual decline as the year continues and need to be aware of this downhill roll. Now more than ever, it is suggested to shift your dealership’s focus on other areas in your business that will help and support revenue growth, as relying predominately on transaction growth is no longer a safe practice.
During this 2 percent decline, the industry has noticed that used car trends have been, making up for the clear decline in new vehicle sales. Jonathan Smoke explains even though used cars are not coming in strong, they aren’t plunging either and its excepted to see sales hit a plateau. As this could be considered good news, it shouldn’t be forgotten that what has affected the new vehicle market has a very likely chance of crossing over into the used marketing as well.