2016 Predictions

  1. Average gross per unit will come down. (Doesn’t mean it has to be that way at your store.)
  2. Use of personal devices by consumers to shop vehicles and prices will increase.
  3. Nice used cars will be scarce.
  4. You will struggle to make ANY gross on aged units. (Well, duh, you’re not using my Life Cycle Management process)
  5. Finding sales people who want to work the hours and be paid on gross will become even more difficult.
  6. Maximizing the use of software and technology in your dealership will challenge you.
  7. The franchises you represent will put more expenses on your side of the table.
  8. The manufacturers will increase the pressure on you to hit market share.
  9. You will accept aged units as a necessary evil of the automobile business.
  10. Your average cost per unit in stock will go up.
  11. You will become more dependent on your used car department to save your new car department.
  12. The amount of water in your used car inventory will increase.
  13. Your dealership will be sued because someone didn’t “just handle it.”
  14. Your CPA and legal fees will go up.
  15. You will waste 50% of your advertising dollars and you won’t be able to figure out which 50%.
  16. F&I income will feel stress from the regulators.
  17. Improving recon time for used going through your shop will be a high priority. (You will talk about but not fix it.)
  18. You’ll hire managers from the outside because you haven’t developed your own people.
  19. You will wholesale some used cars that you should have retailed.
  20. You’ll think about hiring me, but you’ll talk yourself out of it…again.

Well duh. Most of these are always true. Some things change. Many don’t.

Happy New Year to you too. That’s all I’m gonna say, Tommy Gibbs