Bart Wilson

Company: DrivingSales

Bart Wilson

DrivingSales

Oct 10, 2018

How to win the BIG Pot of Money in Today’s New Car Game

This is a guest post from Brian Finkelmeyer, Senior Director of Business Development of vAuto.  He'll be speaking at the 2018 DrivingSales Executive Summit on Winning the Zero Sum Game in New Cars.

Today’s retail new car business is beginning to look more like a game of poker than the actual car business.

In 2016, Automotive News reported that the collective annual sales objectives for every manufacture in the US was 21M, but the actual SAAR was only 17.5M.  I once heard the annual sales objective-setting process referred to as “smoking the drapes” inside the corporate office.

I don’t entirely blame the car companies; their job is to impress shareholders by growing market share. They accomplish this by enticing their Dealer body to stretch for higher and higher sales volumes.

The problem is, often these objectives are calculated in a financial fantasy world and not based on the realities of the marketplace.

Over the last five years, New Car Dealers have become increasingly reliant upon manufactures for their financial success.  According to NADA this year, 90 percent of the income captured in the Net Adds account on a Dealer’s financial statement is factory bonus money.  To win this pot of gold, Dealers have no choice but to literally “go for broke” to achieve their aggressive monthly sales targets.

Polk data highlights that on average, approximately 40 percent of a Dealer’s monthly sales comes from their owner base, which means the other 60 percent is generated with conquest sales. 

In my workshop at the DrivingSales Executive Summit, Dealers will learn key conquesting tactics for attracting customers from outside their local market area.  A Dealer’s ability to effectively conquest will have a very strong correlation to the number of “Pots and Size of the Pots” they win.  This will remain true, as long as the new car game is being played out like the World Series of Poker.

 

Bart Wilson

DrivingSales

Director of Operations

1239

No Comments

Recommended Posts

Audi Queens

Audi Queens is your trusted Audi dealer in Queens, NY, offering new Audi vehicles, Audi used cars, Audi SUV lease options, and Audi Q3 certified pre-owned models. Explore our full inventory and experience premium performance and service. More …

Audi Queens

Audi Queens

28
Last Week

Frank Leta Honda

Frank Leta Honda, a leading Honda dealership in St. Louis, MO, offers a wide array of new and used Honda cars, crossovers, SUVs, vans, and trucks, all with Lifetime Warranties. Our selection includes the latest Honda models and quality pre-owned …

Frank Leta Honda

Frank Leta Honda

27
Last Week

INFINITI of Smithtown

INFINITI of Smithtown is your trusted Infiniti dealer in Smithtown, NY, offering a wide selection of new Infiniti for sale and quality used Infiniti for sale. Visit our Infiniti service center for expert maintenance and repairs, and explore the l…

INFINITI of Smithtown

INFINITI of Smithtown

50
May 27th

Function + Form

Function + Form builds coilover kits that blend aggressive looks with smooth, responsive ride quality. Since 2005, our team has engineered performance coilovers that handle daily driving without sacrificing comfort or control. Whether you're afte…

Functionand Form

Function + Form

71
May 27th

Bass Mazda

Visit Bass Mazda for a wide selection of vehicles, including the new 2024 Mazda and the Mazda SUV 2024 models. Explore our certified pre-owned Mazda options for quality assurance, or take advantage of our Mazda military discount. As a new and use…

Bass Mazda

Bass Mazda

82
May 16th