The Pros and Cons of Buying Lower CR Grade Inventory

Today, Steven Szakaly, Chief Economist of NADA, and Mark Scarpelli, NADA Chairman, conducted a briefing based on the first six months of U.S. auto sales in 2017. They re-affirmed NADA’s positive prediction for 17.1MM in new vehicle sales in 2017 and 16.8MM next year. They pointed out that while sales are a bit softer than the previous two years, those years were back-to-back record years and the “softening” is still clearly within a favorable trendline.
NADA also ardently disagrees with the doom and gloom predictions that some are making. The briefing included the following points of emphasis:
It should also be noted that last month, GM lowered its forecast for sales from 17.55MM to the low 17MM range for 2017, keeping in line with NADA’s forecast.
Given the state of the industry, dealer principals need to be asking themselves, “Am I positioned properly?” Expect competition to be fierce. Be prepared.
Do all your employees bring their A-game every day? Do you have the right mix of new and used vehicles on your lot? Are you properly staffed? Are your people properly trained? Assume that you will be operating in one of the most competitive stretches in consumer buying history.
Be proactive. Get ready. Beat the competition and boost your bottom line. Lean on your technology—especially your dealer management system—to save time and increase profits.
Definitely see the increase in SUV sales vs car sales here at our Honda/Nissan dealership... also seeing a lot of 0% up to 72 months which is crazy!! Very competitive world we live in!!