Did we learn anything from 08 & 09?

Ron Henson

Do you think dealers are ready for a downturn?

"A newly released report from AlixPartners forecasts U.S. light-vehicle sales of 17.5 million in 2017 -- down slightly from this year’s 17.8 million forecast.

The New York City-based consulting firm expects U.S. sales to bottom out at 15.2 million vehicles in 2019, followed by a gradual upturn to 16.8 million in 2022.

A downturn in 2017, following 17.8 million sales this year, would cap the industry’s winning streak at seven consecutive years of growth."

Automotive News

June 30, 2016 @ 12:01 am

David Sedgwick

Chris K Leslie

Kristy Elliott

Ron,

In one word, no.  I think people in general have short memories when it comes to downturns, and car dealers are no different.  We also have the opinion that as soon as the dealer starts saying that a downturn has arrived, the sales staff has an excused not to sell cars.

There are things that can be done to prepare for a downturn without "being on the lookout for one".  When it comes to our dealerships, we are planning for another record year in 2017, BUT are have also been routinely looking at areas to cut expenses and have been building cash. 

There is no doubt that at some point, car sales will decline.  HOWEVER, in every community, people will need to buy new or used vehicles and/or get their vehicle serviced.  We have used the past 3 - 4 years to build the case for customers to choose us versus our competitors. 

Just my two cents!

Kristy Elliott

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