Richfield, Ohio – Advanced Dealer Solutions is proud to welcome Bruce Osborne as General Manager.
Bruce has three decades of experience serving the F&I industry in a variety of roles since making his start in automotive retail. “Bruce’s roles as Chief Revenue Officer and National Sales Manager at the product administration level make him an ideal fit to help take the ADS team to the next level.”– says Bob Mancuso – President of Advanced Dealer Solutions.
“Advanced Dealer Solutions has a well-earned reputation for overall dealership development. I am excited to be joining such a professional organization. Working together, we will help our dealers achieve new heights.” – Bruce Osborne
“We are excited to have Bruce and his vast industry knowledge available to our team. I am confident he will add immediate value to our dealers and associates.” – says Ryan Nelson – EVP of Advanced Dealer Solutions.
Bruce is based in Springfield, OH and will be focused on current and future dealer relationships alongside the team of ADS F&I training representatives.
Advanced Dealer Solutions is a full service, dealer development agency focused on automotive, RV, and powersports dealers across the United States. Please contact 844-320-3722 or info@advdealer.com for any inquiries.
Richfield, Ohio – Advanced Dealer Solutions is proud to welcome Bruce Osborne as General Manager.
Bruce has three decades of experience serving the F&I industry in a variety of roles since making his start in automotive retail. “Bruce’s roles as Chief Revenue Officer and National Sales Manager at the product administration level make him an ideal fit to help take the ADS team to the next level.”– says Bob Mancuso – President of Advanced Dealer Solutions.
“Advanced Dealer Solutions has a well-earned reputation for overall dealership development. I am excited to be joining such a professional organization. Working together, we will help our dealers achieve new heights.” – Bruce Osborne
“We are excited to have Bruce and his vast industry knowledge available to our team. I am confident he will add immediate value to our dealers and associates.” – says Ryan Nelson – EVP of Advanced Dealer Solutions.
Bruce is based in Springfield, OH and will be focused on current and future dealer relationships alongside the team of ADS F&I training representatives.
Advanced Dealer Solutions is a full service, dealer development agency focused on automotive, RV, and powersports dealers across the United States. Please contact 844-320-3722 or info@advdealer.com for any inquiries.
The data for The 2023 Kerrigan Dealer Survey is based on over 650 responses from franchised auto dealers in Kerrigan Advisors’ proprietary dealer database. Survey responses were collected from June 2023 to October 2023.
2023 Kerrigan Dealer Survey Results Kerrigan Advisors’ fifth annual Dealer Survey was designed to gauge dealer sentiment on the future value of their business, growth plans, earnings expectations, as well as perspectives on franchise values and their trust levels in the OEMs.
The results of this year’s survey found a majority of dealers still have a positive outlook on valuation over the next 12 months with 52% projecting 2023’s strong valuations will sustain into 2024 and 21% expecting an increase next year. That said, more than a quarter of dealers (27%) expect valuations to decrease in the next 12 months, the highest level since the survey’s inception in 2019, and almost double 2019 and 2020’s levels.
The reduction in valuation expectations is consistent with dealers’ views on future profitability (see chart on following page). Only 15% of surveyed dealers project a rise in profits in the next 12 months, while 38% expect a decline. Interestingly, 47% project earnings will stay the same in 2024, a six-percentage point increase from last year and an indication that current earnings, which remain far above pre-pandemic levels, are starting to normalize according to more dealers.
With a rising number of dealers seeing a decline in earnings in the next 12 months, it is not surprising to see an increase in dealers seeking a sale, albeit still a slim minority. 6% of dealers surveyed plan to sell one or more dealerships in the next 12 months, three times 2022’s results. That said, nearly half of dealers still plan to grow their enterprise with 47% looking to add one or more dealerships.
Kerrigan Advisors attributes this growth bias to dealers’ significant capital accounts as a result of more than three years of record profits. Kerrigan Advisors estimates the industry has amassed over $200 billion in pre-tax profits since 2020. In addition to burgeoning capital accounts, the majority of dealers (62%) believe earnings will either stay at 2023’s high level or increase over the next twelve months. This indicates that most dealers do not believe earnings will revert to pre-Covid levels in the near future, if ever, which bodes well for the continuation of a growth bias amongst dealers.
2023 Kerrigan Dealer Survey Results by Franchise
Note: These results reflect the collective view of the 650+ dealers surveyed, regardless of a dealer’s specific franchise ownership.
While the majority of dealers surveyed believe individual franchises will either increase or remain the same in value over the next 12 months, every franchise saw a reduction in the percentage of dealers projecting an increase in value along with a rise in the percentage of dealers expecting a decline in value as compared to 2022. Kerrigan Advisors believes these results are a reflection of the rising discontent within the dealer body regarding OEMs’ electric vehicle (“EV”) strategies and the overabundance of EVs on many dealers’ lots.
Over 40% of surveyed dealers expect these franchises to decline in value in the next 12 months.
Notably, Lincoln and Infiniti’s results are more than double the industry average.
Kerrigan Advisors queried dealers again regarding the expected impact of OEM planned changes to the dealer model on future profitability. The majority of dealers are less concerned than they were in 2022 that OEM changes to retailing will impact their future profitability. Nearly every franchise saw a notable rise in the percentage of dealers who expect no impact on profitability from OEM retailing changes. Kerrigan Advisors believes this marked improvement from the 2022 Dealer Survey is a result of dealers’ skepticism regarding OEMs’ ability to execute on their proposed retailing changes, particularly given weak consumer demand for EVs.
For the first time since Kerrigan Advisors started querying dealers, our firm asked about dealers’ trust level in each franchise. The results were quite noteworthy and echoed the sentiment regarding changes to OEM retailing strategies. Toyota received the top results by far, with 72% of dealers indicating they had a high level of trust in the franchise, over three times higher than the survey average. By contrast, 46% of dealers reported they had no trust in Ford, consistent with the expectation of a decline in future Ford franchise profitability due to the OEM’s EV/future retailing strategy.
Notable Changes for Specific Franchises (2023 versus 2022)
CDJR – CDJR saw a notable increase in dealers expecting the franchise to decline in value, from 24% in 2022 to 53% in 2023 – a 29-percentage point increase. Kerrigan Advisors expects this negative dealer sentiment is a reflection of CDJR’s rising inventory levels and lack of incentive spending. Dealers are concerned Stellantis will continue to oversupply the market with new vehicles resulting in a return to pre-pandemic gross profits on new vehicles and a substantial decline in dealer profitability. Consistent with this change, CDJR ranked 2nd behind Ford as the franchise most expected to see a decline in earnings and value as a result of OEM retailing changes, up from 9th place in last year’s survey. Furthermore, 39% of dealers have no trust in CDJR, placing the OEM as the 4th least trusted franchise.
Ford –Ford remains the franchise most expected to see a decline in profits as a result of the OEM’s changes to its retailing model. Consistent with this negative sentiment, Ford is the non-luxury franchise least expected to see a rise in valuation in the next 12 months. These results reflect dealers’ lack of trust in the OEM with Ford ranking as the least trusted franchise – 48% of dealers surveyed reported that they had no trust in Ford, the highest percentage of any franchise. Kerrigan Advisors expects this negative sentiment to impact Ford’s future blue sky multiple and franchise valuation.
Kia – This franchise surpassed Toyota for the first time in 2022 to become the franchise most expected to increase in value over the next 12 months. Impressively, it sustained its improved results in 2023. Notably, Kia saw one of the largest increases in positive profit expectations as a result of expected changes to its retailing model and ranked as the 8th most trusted franchise. These positive results are consistent with Kerrigan Advisors’ upgrade of Kia’s franchise multiple in the second quarter of 2023 and positive outlook for 2024.
Toyota –Toyota continues to outperform on every level. Most notably, Toyota is the most trusted franchise by dealers, scoring 17 percentage points higher than its nearest non-luxury competitor Subaru. This monumental lead in the trust equation has resulted in the franchise having the highest expected increase in profits as a result of the OEM’s retailing changes with only 7% expecting a decline, the second to lowest level behind its sister franchise, Lexus. Most impressive, despite having the highest blue sky multiple of all non-luxury franchises, dealers expect the franchise’s value will continue to rise. These results are consistent with the buyer demand Kerrigan Advisors sees for Toyota franchises.
The 2023 Kerrigan Dealer Survey results demonstrate the changing auto retail environment and dealers’ perspectives of the OEMs. The majority of dealers project profits and valuations will remain at or rise above post-pandemic levels over the next 12 months, though an increasing minority have a more negative outlook. Nearly half of dealers are seeking to acquire dealerships in the next 12 months, despite higher interest rates, an indication of an overall positive industry outlook. That said, dealers have distinctly varying views on specific franchises, with certain OEMs eliciting a lack of trust and confidence, while others earn a high level of trust and strong profit expectations.
Based on these results, Kerrigan Advisors believes there is more risk to valuations and the buy/sell market going into 2024, though we expect transaction activity will remain elevated as dealers seek to add scale to their business and believe OEM retail changes will have minimal impact on future profits.
Methodology
The data for The Kerrigan Dealer Survey was gathered from Kerrigan Advisors’ annual survey of auto dealers in conjunction with the issuance of The Blue Sky Report. The Kerrigan Dealer Survey is based on 650+ anonymous responses from franchised auto dealers in Kerrigan Advisors’ proprietary dealer database. Responses were collected from June 2023 to October 2023.
Another month flies by at a seemingly record pace! It is shocking that we are down to our last two months of 2023. The good news is we all have 60 days to make the most of this year and head into 2024 with momentum on our side.
November brings us the Thanksgiving holiday which makes it a great month to stop, take stock and appreciate all that we have to be thankful for.
At ADS we are all thankful for the successful year we are having, the dealers we get to work with, and the incredible additions we have added to our team. Please take a moment and meet our newest team members to learn a little about them as well as the role they will play here at ADS.
In terms of other industry matters, it is good to know the strike has been settled and manufacturing can resume at the affected plants. Additionally, there is a lot of news coming out about the BEV market and how oversold the hype for electric really seemed to be. It will be interesting to see where the consumers and the industry end up taking the BEV offerings the many manufactures chose to race to market with. There are a few recent articles below which provide some good insight into some of the shift in enthusiasm.
Vehicles: 2019 Cadillac CTS-V Sedan – Satin Silver 2019 Cadillac CTS-V Sedan – White 2017 Cadillac CTS-V Sedan -Gray 2017 Cadillac CTS-V Sedan – Silver 2016 Cadillac CTS V Sedan Red 2019 Chevrolet Corvette Red 2022 Chevrolet Camaro Black/White
Activation: Pennsylvania State Police Selinsgrove, PA
Recoveries: Pennsylvania State Police Auto Theft Task Force (PSP-ATTF) Pennsylvania State Police Selinsgrove, PA Washington Metro DC Police Swedesboro Police, NJ
Dealership: Murry Motors Selinsgrove, PA
On October 2, 2023, at about 7 AM as employees from the car dealership came to work, they discovered that the dealership had been broken into and several vehicles were missing from the lot. Using the GEO-Fence option on the LoJack GPS App, they were able to determine immediately what vehicles had been stolen. The dealership notified the Pennsylvania State Police, Selinsgrove who took the initial report. The Pennsylvania State Police Auto Theft Task Force was notified and responded to the scene. Working with the General Manager from the dealership who has access to the LoJack GPS App, within minutes, they were able to determine the current locations of each of the seven stolen vehicles. The Pennsylvania State Police Auto Theft Task Force sent Troopers to locate and recover most of the stolen vehicles that were still in Pennsylvania. However, two of the stolen vehicles had already left the State of Pennsylvania. With information supplied by the Pennsylvania State Police Auto Theft Task Force, the 2022 Chevrolet Camaro was located and recovered by the Swedesboro Police Department in New Jersey. The 2017 Cadilac CTS-V (color Silver) was located and recovered by the Washington DC Metro Police, in Washington DC.
The value of the seven recovered stolen vehicles was estimated at a little over a half million dollars.
The Pennsylvania State Police Auto Theft Task Force said that the investigation is continuing. They have reached out to the LoJack Regional Law Enforcement Liaison Team to assist with their efforts.
Claims administrators face a variety of challenges, including new and evolving regulations, staffing needs and catastrophic events. But at the moment, our greatest challenge may be keeping abreast of rapidly evolving expectations.
Technology plays a pivotal role. A successful administrator must be keenly aware of what our agents, dealers and customers want and need and how to provide solutions that solve their problems.
Those at the forefront of claims administration have transitioned to app-based or mobile-friendly platforms to account for advances in technology and have created a model more akin to a self-service portal. Such platforms allow dealership personnel and customers to access information and file claims beyond typical service hours.
But consumers are increasingly demanding a phone-based experience — and not to make calls. They want to communicate and transact via text. Savvy claims administrators must embrace these challenges, embark on digital transformation initiatives and accommodate changing needs to stay one step ahead.
Originally posted by Portfolio https://www.linkedin.com/pulse/claims-administrators-latest-greatest-challenge%3FtrackingId=BjI%252BQUUhyCK%252FnpZgttAsAw%253D%253D/?trackingId=BjI%2BQUUhyCK%2FnpZgttAsAw%3D%3D
And poof, there goes the first half of the year! Not sure about anyone else, but we are amazed at how fast the calendar continues to turn.
There are so many different metrics to track in our industry (check out the comprehensive report from Colonnade Advisors below), both on the micro and macro levels, and certainly no shortage of prognosticators willing to opine on a wide variety of items.
In the last 3-years, we have heard about a ‘digital transformation’, industry ‘electrification’, and the thought of ‘brick and mortar’ dealerships going by the wayside. Having read countless blogs, watched numerous videos, and participated in several conversations about these topics, we can assure you of two things; our industry is evolving, and the more things change, the more they stay the same.
Yes, our industry is evolving, what industries aren’t? At the end of the day the retail transaction so many of us are fortunate to participate in remains largely unchanged. Sure, there is a digital component to it these days. ‘Fresh ups’ on the lot don’t happen as often as they once did, but the process of qualifying, selecting, demonstrating, negotiating, and delivering are largely still intact, and that makes us happy.
At ADS we have a saying, ‘the process is the shortcut’. Over the last several years, many in retail have forgotten to follow the process while presenting and selling a vehicle, offering protection products in the business office, or recommending maintenance in the service drive.
In collaboration with the Greater Cleveland Auto Dealers Association, we are putting on a Summer Tune-Up Series for F&I, Sales, and Service. A ‘back to the basics’ if you will. We hope to see many of you, as you look to sharpen your skills, as we head into prime selling season. Registration for the classes are below.
Data privacy and its impact on automotive marketing. It was positioned to be a headlining story of 2022 as dealers evaluated the impact on their advertising strategies. But, between the ongoing vehicle inventory shortages and Google’s announcement that they will delay deprecating 3rd party cookies until 2023, the story has largely faded from view. If your dealership has put data privacy and its impact on automotive on the back burner, it’s time to turn up the heat. Why? The next update from Apple – iOS 15 – will impact your email marketing.
Before we go any further, no need to panic. Email marketing remains one of the most effective ways to influence car shoppers. The evidence suggests Apple’s iOS 15 update will likely impact how you and your vendor partners measure effectiveness. And the first hint of that impact will come quickly.
So, what is it and what should you be thinking about?
iOS 15 will go public for iPhones, iPads, and desktops using OS Monterrey this month. The update includes two features that will impact email marketing and measurement, Mail Privacy Protection and Hide My Email. At a high level, Mail Privacy Protection gives the consumer the opportunity to protect their email and prevent the tracking that tells people like you and me if, when, and where the email was opened. There’s no need to get into the technical weeds, but this update means when a customer or prospect receives an email on their Apple device, and they have opted into Mail Privacy Protection, that email will automatically register as “opened” regardless of the person’s actual activity.
Now you might be asking, is this the reality for everyone using an Apple device, and will it be effective immediately? The short answer to the first question is no. However, when Apple Mail user downloads the new operating system to their device, they will be asked if they want to protect their email. What we learned when Apple introduced App Tracking Transparency with iOS 14 this spring, 96% of Apple users said “Yes! Don’t track me.” So, it is prudent to expect a majority of Apple users to do the same with Mail Privacy Protection.
The second answer is yes, but not fully. We know from experience that the adoption of new operating systems comes in waves. Some cutting-edge techies update as soon as new features are available and others follow suit in waves. Suffice it to say, expect at least 75% of users to be up and opted in on the new updates by the end of 2021.
Which leads us to why this matters. Google Chrome’s plans with 3rd party cookie tracking is front and center because they are the dominating web browser – accounting for 65% of internet activity. Similarly, Apple is the dominant player in email. For dealers using email marketing (which is practically everyone), this update has the potential to impact up to half of the customers and prospects you engage via email.
Again, no need to panic. This update does not render email marketing ineffective. But it should cause you to pause, evaluate and adjust a few things.
Let’s look at a few high-level actions you can take.
1. Look back at Opens: Establish a measurement standard
Because Mail Privacy Protection automatically triggers the “open” pixel, you can expect your open rates to grow. To track how much, take a look at your history. Open rates vary from send to send, but normalize within a given range over time. Start by taking a look back at the first six months of 2021 to set a measurement standard. This gives you a benchmark to see how open rates change month to month. When you see the normalized open rate start to increase, you will have a general idea of how many of your customers are Apple Mail users and inflating your measurement.
2. Look beyond Opens: Expand your portfolio of email metrics
Open rates are a key metric in marketing reports. Yet by itself, the open rate has long been a flimsy performance measurement. Open rates can be an indicator of awareness, but engagement is better measured by clicks and conversions. Open rates are typically higher and look better on a report, and iOS 15 will likely only inflate those numbers. Resist the urge to take credit for the higher open rates that everyone will see as more users download the new operating system.
Instead, pay MORE attention to click thru rates and conversion metrics. In order to understand email campaign effectiveness at a greater level, utilizing UTM tags and Google Analytics are another incredibly effective way to monitor email performance and conversion. At Client Command, we also measure effectiveness through match back reporting and give dealers visibility into the impressions, frequency and clicks that influence a sale. Your vendors are likely already measuring the effectiveness of email marketing with an equal or greater focus on clicks and conversions. It’s important that you make sure you extend this to internal email engagement efforts, such as email cadences from your CRM.
3. Assess your Automation “Triggers”: Disable cadences based on “Opens”
Marketing automation is built on trigger events. If X action happens, Y cadence is deployed. There is a high likelihood that at least one email cadence set up in your CRM are built around whether someone opens or does not open an email. Opens is far from the only trigger, but is common, especially within dealership operations.
Instead, tie triggers to a more reliable action; such as ownership milestones, service activities or important events. To go deeper, build trigger events inside those cadences, based on clicks — to the enclosed offer, digital retailing tool or form. At Client Command, our marketing automation is triggered by online shopping activity and clicks to lead forms.
4. Resist the urge to react: Entertain some level of the “wait and see” approach
Yes, we know enough to take some proactive action like the steps previously mentioned. But even the Email Service Providers (ESPs) who think only about email delivery all day every day, are taking some level of the “wait and see” approach versus an all-encompassing game plan. They are making necessary adjustments now (including but not limited to the ones mentioned prior), preparing to measure the full impact over a period of time and make optimizations and recommendations accordingly. We experienced this earlier this year when Apple released iOS 14 – partners positioned themselves for the change and continue to optimize as we learn more about the nuances of the impact. Adjustments from ESPs could further impact OR improve email marketing measurements. So, if the ESPs are waiting, there is wisdom in following their lead.
Net-net. Email marketing remains a highly effective way to stay in front of car shoppers and a critical component of your omni-channel marketing strategy. As iOS 15 rolls out and users begin to sign on, start adjusting what you can control – how you measure effectiveness and how you trigger your email cadences – and be ready to adjust to residual impacts. The key is working with partners you trust — committed to staying up to speed, working to keep you ahead of the curve and ready to navigate these and future changes with you.
Article originally published here https://clientcommand.com/ios-15-and-dealership-email-marketing/.
Wholesale prices of used vehicles reached their lowest level in more than a year last month, as retail sales decline amid interest rate hikes, rising new vehicle availability and recessionary fears.
The Manheim Used Vehicle Value Index, which tracks prices of used vehicles sold at its U.S. wholesale auctions, has declined about 16% from record levels in January.
The decline is good news for potential car buyers, however not great for companies such as Carvana that purchased vehicles at record highs and are now trying to sell them at a profit.
DETROIT – Wholesale prices of used vehicles reached their lowest level in more than a year last month, as retail sales decline amid interest rate hikes, rising new vehicle availability, and recessionary fears.
Cox Automotive said Wednesday that its Manheim Used Vehicle Value Index, which tracks prices of used vehicles sold at its U.S. wholesale auctions, has declined 15.6% from record levels in January through November. The index dropped to 199.4 last month, below 200 for the first time since August 2021, and is down 14.2% from the same month a year ago. It marks the sixth-consecutive month of declines.
The falling prices come as the availability of new vehicles steadily rises from historic lows, providing additional options for consumers and potentially better loan options from automaker’s financing arms.
“New inventory is finally starting to build, and that’s producing momentum in new retail sales, but that momentum appears to be at the expense of used retail. Especially it’s the traditional used car buyer that’s most impacted by payment affordability,” Cox chief economist Jonathan Smoke said Tuesday during an industry update.
Retail prices for consumers traditionally follow changes in wholesale prices. That’s good news for potential car buyers, however not great for companies such as embattled retailer Carvana that purchased vehicles at record highs and are now trying to sell them at a profit.
Retail pricing thus far has not declined as quickly as wholesale prices, as dealers attempt to hold steady on record-high pricing. According to the most recent data, Cox reports the average listing price of a used vehicle was $27,564 in October, down less than a half percent from the beginning of the year.
“They’re not wanting to sell at trough prices,” said Chris Frey, senior industry insights manager at Cox Automotive, told CNBC last month. “That’s why we’re not seeing the prices decline so much at retail.”
Cox estimates that used retail sales declined 1% in November from October and were down 10% from a year earlier.
Automakers for several years now have been battling through a semiconductor chip shortage that has sporadically halted production of new vehicles, causing record-low inventories of vehicles and higher prices. The circumstances pushed many new-vehicle buyers into the used-car market.
Cox last month estimated the total used market was on pace to finish the year down more than 12% from 40.6 million in 2021.
