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Ferrari Dino

The Buried Ferrari Dino 246 GTS, Part One

Today’s blog tells the unusual story of how a stolen 1974 Ferrari Dino 246 GTS was found, quite by accident. Much of the information in this article comes from the Los Angeles Times, which covered the story in the late 1970s. Note: Time would tell that this story is mostly factual, but not entirely true. […]

High Gas Prices

Are High Gas Prices Actually Benefiting the Auto Industry?

Are high gas prices actually good for the automotive industry? According to some, that’s the case – just in sort of a roundabout way. In a recent Wall Street Journal article, one powerful CEO made a compelling argument this is so. According to Mike Jackson, the Chairman and CEO of AutoNation, the high gas prices […]

NHTSA Chief Administrator

New NHTSA Chief Administrator to be Named Soon

A new NHTSA Chief Administrator will be named very soon. The National Highway Traffic Safety Administration has been operating with Deputy Administrator David Friedman at the helm since January, when David Strickland resigned to take a position with a Washington-based law firm. Anthony Foxx is the U.S. Transportation Secretary, and he is in charge of […]

Kia Soul EV

Initial Kia Soul EV Price Set at $33,700

The all-new 2015 Kia Soul EV price is about what you might expect. It will begin with a sticker price of $33,700, plus an $875 destination fee. However, there is a $7,500 federal tax credit that drops the final price to under $30,000. Debuting in October, the Kia Soul EV will primarily be available in […]

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Take Advantage of Tax Season
January 21, 2025

Tax season presents a unique opportunity for dealerships to boost sales and attract new customers. With many individuals receiving tax refunds, it’s a prime time for car buyers to invest in a new or used vehicle. Consider this: Research indicates that 10% of people expecting income tax refunds allocate them for vehicle-related purchases!

Automobile dealers who strategically market their stores during this period can significantly benefit from increased foot traffic and higher sales volumes.

1. Increased Consumer Budget
For many prospective buyers, a tax refund represents a financial windfall. In many cases, the average tax refund is often substantial enough to cover a down payment on a vehicle. This provides car dealers with an opportunity to tap into a motivated customer base looking to make large purchases. By offering attractive financing options and promotions, dealerships can convert these potential buyers into satisfied customers.

2. Leverage Marketing Opportunities
To get more than your fair share of these shoppers, you must advertise enough to make a positive impression. By doing this, you make sure your dealership is top-of-mind with everyone in your community who may be in the market for a car. When you are No. 1 in the hearts and minds of those in your market, you will reap the rewards.

3. Clear Incentives for Trade-Ins
Another powerful incentive during tax season is offering increased trade-in values. Many customers are eager to trade in their old vehicles for a newer model, and tax refunds can make this transition more feasible. By highlighting competitive trade-in offers and demonstrating how they can lower monthly payments, dealerships can build rapport with customers and close deals faster. Some dealers offer a “we’ll double your tax return for your down payment” special; others will even go as far as preparing customers’ tax returns at the dealership for extra motivation.

The Takeaway
Tax season offers car dealerships a chance to tap into a motivated market. By offering promotions and targeting the right audience with the proper reach and frequency in their advertising efforts, dealerships can make the most of this lucrative time of year.

JKR Automotive Advertising: We Move Cars.

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Post-Pandemic Dealer Gross Profits are Down – But They Don’t Have to Stay There!
March 13, 2024
It is no secret that dealer gross profits per vehicle are down sharply in the post-COVID automotive world. According to a recent article in Automotive News, gross profits of the six largest publicly traded dealership groups plunged significantly from Q4 2022 to Q4 2023. One of them was actually down 35% per vehicle!

The article explains: High interest rates, more expensive vehicles and a steadier post-pandemic supply chain continue to soften demand and bring it closer to pre-pandemic levels. Still, new-car buying has remained strong overall …

This means that, while sales volume is similar, overall bottom lines are lower for many dealers due to the reduced gross profits. What about your dealership?

Being Realistic
It’s time to turn the page! The time for dealers to simply be order takers for people willing to pay MSRP for a vehicle (and in some cases more) has passed and dealers have to work hard once again to achieve acceptable gross profits.

Selling a high volume of cars doesn’t control gross profits, no matter how much you wish this was the case. Correct processes and menu pricing – and strict adherence to them – do!

What kind of processes?
∙ Slow down the transaction! Your sales staff has to once again sell the customer on the features and benefits of every new and pre-owned vehicle on your lot.

∙ Your salespeople and managers should devalue the customers’ trade-in value (politely, of course) as much as possible. After all, if the customer expects you to lower your price, shouldn’t you be able to do the same on their trade? Remember, you’ll have to fix it up, put your name on it and resell it to someone else with all the tenacity you would a brand-new car. So make sure you buy it right … because the profit is made when you buy it, not when you sell it!

∙ To that end, management should be ready and willing to leave the desk and do thorough walk-arounds on each trade to ensure the best outcome for the dealership.

The Cure for Low Gross Profits
If you are like a lot of dealers these days, you could use some good news. Here it is: while you may not have the capability to achieve profit margins similar to those you enjoyed during the pandemic, they could likely be improved. JKR’s clients enjoy the benefit of attracting not only more customers, but better ones, too!

If meeting and exceeding your sales goals (and increasing gross profits at the same time) sounds great to you, you need to call us. Don’t settle for reduced gross profits when help is out there to get you closer to where you’d like to be.

Want to know how we do it? Reach out to Senior Partner Richard Brauns (407) 701-4233 or Partner/Vice President Jon Albert (407) 718-2494 today.

JKR Automotive Advertising: We Move Cars.

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