NADA Market Beat Report: Dealerships Resilience

Positive Outlook for Dealerships: Q1 2024 Sales Trends Show Industry Resilience The latest NADA (National Automobile Dealers Association) Market Beat report for Q1 2024 offers some encouraging signs for the automotive industry. Despite a slight dip in the March SAAR (Seasonally Adjusted Annual Rate) compared to February; the overall sales picture is positive: Increased Sales: The new light-vehicle sales SAAR for March 2024 hit 15.5 million units, a 3.8% increase year-over-year. First-quarter results are even stronger, with the SAAR at 15.4 million units, marking a 7% increase compared to Q1 2023. Improved Inventory: Crucially, shoppers now have significantly more vehicles to choose from. New light-vehicle stock on the ground and in-transit totaled 2.58 million units in March 2024, a substantial 40.2% jump compared to March 2023. Key Takeaways for Dealers These figures point towards a few key implications for dealerships: Affordability and Incentives: The combination of rising inventory and OEM incentives has led to a decrease in average transaction prices. While the average vehicle price in March 2024 came in at $44,186 (down 3.6% compared to last year), average incentive spending per unit reached $2,800, marking a significant 66.6% year-over-year increase. Dealerships should be prepared to leverage these incentives to attract buyers. Hybrids on the Rise: The alternative-fuel vehicle segment continues to grow, reaching an 18% share of total new vehicle sales in Q1 2024. Conventional hybrids are leading the charge with an 8.6% share and an increase of 2.4 percentage points year-over-year. This underscores the importance of adapting our inventory to meet growing demand for fuel-efficient options. Steady Growth Expected: While inventory might fluctuate over the next few quarters, the NADA anticipates that it will reach around 2.7 to 2.8 million units going into 2025. This, combined with rising sales figures, results in a positive outlook for the year, with a forecast of 15.9 million units for all of 2024. Adapting to the Market These NADA figures emphasize the importance of being malleable and nimble. By focusing on a diverse inventory that includes in-demand conventional hybrids, leveraging incentives, and anticipating a continued recovery in overall vehicle sales, dealerships can position themselves for success in the evolving automotive landscape. By: Delano Palmer Director of Training and Development Innovation Financial Services

Positive Outlook for Dealerships: Q1 2024 Sales Trends Show Industry Resilience The latest NADA (National Automobile Dealers Association) Market Beat report for Q1 2024 offers some encouraging signs for the automotive industry. Despite a slight dip in the March SAAR (Seasonally Adjusted Annual Rate) compared to February; the overall sales picture is positive: Increased Sales: The new light-vehicle sales SAAR for March 2024 hit 15.5 million units, a 3.8% increase year-over-year. First-quarter results are even stronger, with the SAAR at 15.4 million units, marking a 7% increase compared to Q1 2023. Improved Inventory: Crucially, shoppers now have significantly more vehicles to choose from. New light-vehicle stock on the ground and in-transit totaled 2.58 million units in March 2024, a substantial 40.2% jump compared to March 2023. Key Takeaways for Dealers These figures point towards a few key implications for dealerships: Affordability and Incentives: The combination of rising inventory and OEM incentives has led to a decrease in average transaction prices. While the average vehicle price in March 2024 came in at $44,186 (down 3.6% compared to last year), average incentive spending per unit reached $2,800, marking a significant 66.6% year-over-year increase. Dealerships should be prepared to leverage these incentives to attract buyers. Hybrids on the Rise: The alternative-fuel vehicle segment continues to grow, reaching an 18% share of total new vehicle sales in Q1 2024. Conventional hybrids are leading the charge with an 8.6% share and an increase of 2.4 percentage points year-over-year. This underscores the importance of adapting our inventory to meet growing demand for fuel-efficient options. Steady Growth Expected: While inventory might fluctuate over the next few quarters, the NADA anticipates that it will reach around 2.7 to 2.8 million units going into 2025. This, combined with rising sales figures, results in a positive outlook for the year, with a forecast of 15.9 million units for all of 2024. Adapting to the Market These NADA figures emphasize the importance of being malleable and nimble. By focusing on a diverse inventory that includes in-demand conventional hybrids, leveraging incentives, and anticipating a continued recovery in overall vehicle sales, dealerships can position themselves for success in the evolving automotive landscape. By: Delano Palmer Director of Training and Development Innovation Financial Services

Positive Outlook for Dealerships: Q1 2024 Sales Trends Show Industry Resilience The latest NADA (National Automobile Dealers Association) Market Beat report for Q1 2024 offers some encouraging signs for the automotive industry. Despite a slight dip in the March SAAR (Seasonally Adjusted Annual Rate) compared to February; the overall sales picture is positive: Increased Sales: The new light-vehicle sales SAAR for March 2024 hit 15.5 million units, a 3.8% increase year-over-year. First-quarter results are even stronger, with the SAAR at 15.4 million units, marking a 7% increase compared to Q1 2023. Improved Inventory: Crucially, shoppers now have significantly more vehicles to choose from. New light-vehicle stock on the ground and in-transit totaled 2.58 million units in March 2024, a substantial 40.2% jump compared to March 2023. Key Takeaways for Dealers These figures point towards a few key implications for dealerships: Affordability and Incentives: The combination of rising inventory and OEM incentives has led to a decrease in average transaction prices. While the average vehicle price in March 2024 came in at $44,186 (down 3.6% compared to last year), average incentive spending per unit reached $2,800, marking a significant 66.6% year-over-year increase. Dealerships should be prepared to leverage these incentives to attract buyers. Hybrids on the Rise: The alternative-fuel vehicle segment continues to grow, reaching an 18% share of total new vehicle sales in Q1 2024. Conventional hybrids are leading the charge with an 8.6% share and an increase of 2.4 percentage points year-over-year. This underscores the importance of adapting our inventory to meet growing demand for fuel-efficient options. Steady Growth Expected: While inventory might fluctuate over the next few quarters, the NADA anticipates that it will reach around 2.7 to 2.8 million units going into 2025. This, combined with rising sales figures, results in a positive outlook for the year, with a forecast of 15.9 million units for all of 2024. Adapting to the Market These NADA figures emphasize the importance of being malleable and nimble. By focusing on a diverse inventory that includes in-demand conventional hybrids, leveraging incentives, and anticipating a continued recovery in overall vehicle sales, dealerships can position themselves for success in the evolving automotive landscape. By: Delano Palmer Director of Training and Development Innovation Financial Services

Positive Outlook for Dealerships: Q1 2024 Sales Trends Show Industry Resilience The latest NADA (National Automobile Dealers Association) Market Beat report for Q1 2024 offers some encouraging signs for the automotive industry. Despite a slight dip in the March SAAR (Seasonally Adjusted Annual Rate) compared to February; the overall sales picture is positive: Increased Sales: The new light-vehicle sales SAAR for March 2024 hit 15.5 million units, a 3.8% increase year-over-year. First-quarter results are even stronger, with the SAAR at 15.4 million units, marking a 7% increase compared to Q1 2023. Improved Inventory: Crucially, shoppers now have significantly more vehicles to choose from. New light-vehicle stock on the ground and in-transit totaled 2.58 million units in March 2024, a substantial 40.2% jump compared to March 2023. Key Takeaways for Dealers These figures point towards a few key implications for dealerships: Affordability and Incentives: The combination of rising inventory and OEM incentives has led to a decrease in average transaction prices. While the average vehicle price in March 2024 came in at $44,186 (down 3.6% compared to last year), average incentive spending per unit reached $2,800, marking a significant 66.6% year-over-year increase. Dealerships should be prepared to leverage these incentives to attract buyers. Hybrids on the Rise: The alternative-fuel vehicle segment continues to grow, reaching an 18% share of total new vehicle sales in Q1 2024. Conventional hybrids are leading the charge with an 8.6% share and an increase of 2.4 percentage points year-over-year. This underscores the importance of adapting our inventory to meet growing demand for fuel-efficient options. Steady Growth Expected: While inventory might fluctuate over the next few quarters, the NADA anticipates that it will reach around 2.7 to 2.8 million units going into 2025. This, combined with rising sales figures, results in a positive outlook for the year, with a forecast of 15.9 million units for all of 2024. Adapting to the Market These NADA figures emphasize the importance of being malleable and nimble. By focusing on a diverse inventory that includes in-demand conventional hybrids, leveraging incentives, and anticipating a continued recovery in overall vehicle sales, dealerships can position themselves for success in the evolving automotive landscape. By: Delano Palmer Director of Training and Development Innovation Financial Services

Positive Outlook for Dealerships: Q1 2024 Sales Trends Show Industry Resilience The latest NADA (National Automobile Dealers Association) Market Beat report for Q1 2024 offers some encouraging signs for the automotive industry. Despite a slight dip in the March SAAR (Seasonally Adjusted Annual Rate) compared to February; the overall sales picture is positive: Increased Sales: The new light-vehicle sales SAAR for March 2024 hit 15.5 million units, a 3.8% increase year-over-year. First-quarter results are even stronger, with the SAAR at 15.4 million units, marking a 7% increase compared to Q1 2023. Improved Inventory: Crucially, shoppers now have significantly more vehicles to choose from. New light-vehicle stock on the ground and in-transit totaled 2.58 million units in March 2024, a substantial 40.2% jump compared to March 2023. Key Takeaways for Dealers These figures point towards a few key implications for dealerships: Affordability and Incentives: The combination of rising inventory and OEM incentives has led to a decrease in average transaction prices. While the average vehicle price in March 2024 came in at $44,186 (down 3.6% compared to last year), average incentive spending per unit reached $2,800, marking a significant 66.6% year-over-year increase. Dealerships should be prepared to leverage these incentives to attract buyers. Hybrids on the Rise: The alternative-fuel vehicle segment continues to grow, reaching an 18% share of total new vehicle sales in Q1 2024. Conventional hybrids are leading the charge with an 8.6% share and an increase of 2.4 percentage points year-over-year. This underscores the importance of adapting our inventory to meet growing demand for fuel-efficient options. Steady Growth Expected: While inventory might fluctuate over the next few quarters, the NADA anticipates that it will reach around 2.7 to 2.8 million units going into 2025. This, combined with rising sales figures, results in a positive outlook for the year, with a forecast of 15.9 million units for all of 2024. Adapting to the Market These NADA figures emphasize the importance of being malleable and nimble. By focusing on a diverse inventory that includes in-demand conventional hybrids, leveraging incentives, and anticipating a continued recovery in overall vehicle sales, dealerships can position themselves for success in the evolving automotive landscape. By: Delano Palmer Director of Training and Development Innovation Financial Services

Positive Outlook for Dealerships: Q1 2024 Sales Trends Show Industry Resilience The latest NADA (National Automobile Dealers Association) Market Beat report for Q1 2024 offers some encouraging signs for the automotive industry. Despite a slight dip in the March SAAR (Seasonally Adjusted Annual Rate) compared to February; the overall sales picture is positive: Increased Sales: The new light-vehicle sales SAAR for March 2024 hit 15.5 million units, a 3.8% increase year-over-year. First-quarter results are even stronger, with the SAAR at 15.4 million units, marking a 7% increase compared to Q1 2023. Improved Inventory: Crucially, shoppers now have significantly more vehicles to choose from. New light-vehicle stock on the ground and in-transit totaled 2.58 million units in March 2024, a substantial 40.2% jump compared to March 2023. Key Takeaways for Dealers These figures point towards a few key implications for dealerships: Affordability and Incentives: The combination of rising inventory and OEM incentives has led to a decrease in average transaction prices. While the average vehicle price in March 2024 came in at $44,186 (down 3.6% compared to last year), average incentive spending per unit reached $2,800, marking a significant 66.6% year-over-year increase. Dealerships should be prepared to leverage these incentives to attract buyers. Hybrids on the Rise: The alternative-fuel vehicle segment continues to grow, reaching an 18% share of total new vehicle sales in Q1 2024. Conventional hybrids are leading the charge with an 8.6% share and an increase of 2.4 percentage points year-over-year. This underscores the importance of adapting our inventory to meet growing demand for fuel-efficient options. Steady Growth Expected: While inventory might fluctuate over the next few quarters, the NADA anticipates that it will reach around 2.7 to 2.8 million units going into 2025. This, combined with rising sales figures, results in a positive outlook for the year, with a forecast of 15.9 million units for all of 2024. Adapting to the Market These NADA figures emphasize the importance of being malleable and nimble. By focusing on a diverse inventory that includes in-demand conventional hybrids, leveraging incentives, and anticipating a continued recovery in overall vehicle sales, dealerships can position themselves for success in the evolving automotive landscape. By: Delano Palmer Director of Training and Development Innovation Financial Services

Dealership Buy-Sells Set Record - More Dealerships Traded Hands in Q1 2024 Than Any Other Quarter in Auto Retail History! Highlights from the Q1 2024 Haig Report® include: --> The average publicly owned dealership made an estimated $5.0M in the 12-month period ended Q1 2024, a 26% drop from 2022. --> Despite the decline, average profits remain 2.5x higher than pre-pandemic levels. --> Q1 2024 was the most active first quarter on record for dealership M&A in auto retail history, with an estimated 151 dealerships bought or sold. --> Public company acquisition spending on domestic auto dealerships reached $1.3B, which was 14x higher than Q1 2023. --> Average estimated blue sky values remained at elevated levels in LTM Q1 2024, down just 18% from the market peak in 2022. The Q1 2024 release marks the 10th anniversary of The Haig Report®, which was first released in Q1 2014. Every quarter for the past decade, the team at Haig Partners has provided reliable, routine updates on trends within auto retail and their resulting impact on dealership values. The Haig Report® has gained a significant following since its inception in 2014, but its goal remains the same: to help buyers and sellers of dealerships make better, more informed decisions. https://lnkd.in/dC-eAjcN

According to the China Automobile Dealers Association, data reveals that in May 2024, the inventory warning index for dealerships increased year-over-year, indicating a decline in car sales compared to last year, yet showing improvement on a month-to-month basis. The May Day holiday and the trade-in policy have boosted market demand, but issues of inventory pressure and tight funding remain. The vehicle market is expected to stabilize in June, with the mid-year assessment likely prompting dealerships to push volumes, potentially leading to a slight increase in sales. The association advises dealers to be cautious about controlling inventory risks. China Automobile Dealer Inventory Warning Index: - In May 2024, the inventory warning index was 58.2%, a year-over-year increase of 2.8 percentage points, signaling an increase in inventory pressure. Sales Trend: - Sales have declined compared to the same period last year, but there might be improvements compared to April. - It is estimated that passenger car terminal sales in May will be around 1.7 million units, roughly on par with the previous month. Holiday Effect: - The May Day holiday and various auto shows across regions have stimulated consumer interest in purchasing cars, with customer traffic increasing by 28% in the first week. Trade-In Policy: - With subsidy details implemented in many areas and additional incentives from car manufacturers, the automotive market is expected to develop steadily. June Market Outlook: - Enthusiasm for purchasing vehicles may slightly decrease due to off-season factors. - Mid-year assessments are anticipated to drive dealerships towards pushing sales volumes, with June sales expected to stabilize or experience a minor increase. Dealer Challenges: - Increasing inventory pressure and slow capital turnover have led to significant financial constraints. - Dealers need to control inventory reasonably to reduce operational risks.

In the ever-evolving automotive industry, the traditional methods of vehicle sales often leave much to be desired. At Sell2Dealers, we revolutionise the experience by empowering private sellers and car dealerships through a seamless, digital platform. Our recent case studies illuminate the remarkable successes that our innovative approach has yielded, solidifying our role as a catalyst for transformative change. Consider the success story of a private seller in Sydney who, after struggling with the typical frustrations of listing their vehicle online, turned to Sell2Dealers. By leveraging our extensive network of registered dealers, they received competitive offers that exceeded their expectations. This seller not only completed the transaction quickly but also benefited from a streamlined process that avoided the customary pitfalls of private selling—namely, the dreaded low-ball offers and no-show buyers. The outcome? A satisfied seller who walked away with more money in their pocket and a renewed sense of trust in the vehicle sales process. On the other side of the equation, dealerships are also reaping the benefits of our platform. One Melbourne dealer, facing challenges in acquiring diverse inventory, strategically utilised Sell2Dealers to expand their offerings swiftly. By tapping into our network, the dealer accessed a plethora of listings that helped enhance their stock without the usual legwork. Their enhanced inventory not only attracted new customers but also strengthened their competitive positioning in a crowded market. These case studies exemplify our commitment to fostering mutually beneficial relationships between private sellers and dealers. By bridging the gap, Sell2Dealers not only simplifies the vehicle sales process but also ensures competitive pricing, allowing sellers to maximise their returns. As we look to the future, our goal is to continue transforming the Australian automotive landscape by providing value-driven solutions. We invite you to explore how Sell2Dealers can redefine your experience, whether you're a seller seeking greater returns or a dealer yearning for quality inventory. Join us on this journey, and be part of a community that values simplicity, efficiency, and customer satisfaction. Your next successful transaction starts with Sell2Dealers—where selling your vehicle is just a click away. Let’s transform how cars change hands in Australia. sell your car now https://lnkd.in/gHbbTCTc

What Is a Good Car & Van Stock Turnover Ratio? A good dealership stock turnover ratio can depend on specific circumstances, including its size, location, market conditions & the types of vehicles it sells. However, these industry benchmarks can be a useful guide. What Is the Stock Turnover Ratio? It is how many times a dealership's stock of vehicles is sold & replaced over a specific period, usually a year, it is calculated using the following formula: Turnover Ratio = Cost of Goods Sold (COGS) / Average Total Stock Value Industry Benchmarks For both car & van dealerships, a typical inventory turnover ratio ranges between 8 to 12 a year or selling & replenishing your entire stock every 30 to 45 days. What is considered a "good" turnover ratio? This depends on a few factors, typically: Type of Units Sold High-demand vehicles or popular models, have a higher turnover ratio as they sell quickly. Niche or specialized car & vans have a lower turnover ratio due to slower sales but may be more profitable. Market Conditions A strong economy with high demand for vehicles can drive up turnover ratios, but economic downturns or market saturation lead to lower turnover ratios. Efficient stock Management Aligning procurement closely with sales patterns helps in achieving higher turnover ratios & holding excess stock lowers the ratio & ties up cash unnecessarily. Size & Scale of the Dealership Larger dealerships with broader stock might have slightly lower turnover ratios than smaller specialist ones, who can react more quickly to changes in demand. Targeting an Optimal Turnover Ratio You should be aiming for a turnover ratio within the 8 to 12 range, higher turnover ratios suggest: Efficient Sales: The dealership is selling units quickly, minimising the time they stay in stock. Effective Inventory Management: Not overstocking, which helps in reducing holding costs & freeing up cash for other uses. Strong Market Position: You’re meeting market demand, which is a sign of good sales practices & customer demand alignment. How to Improve Strategies that can help: Enhanced Marketing Efforts: Targeted marketing campaigns to boost sales of specific models can help increase turnover. Optimising Stock: Regularly reviewing sales data to adjust the mix based on what is selling to avoid holding slow-moving units. Flexible Pricing Strategies: Promotions or adjusting prices to move stock more quickly. Efficient Supply Chain Management: Strengthening relationships with suppliers to ensure a steady flow of high-demand vehicles. Customer Engagement: Building strong relationships with fleet buyers & commercial customers can help you get repeat business can speed up stock turnover. Conclusion A turnover ratio within the range of 8 to 12 a year, is 2/3rds to 1 a month is solid benchmark. Regularly monitoring this number & reacting to changes in the market will help you maintain optimal stock levels & sales activity. For help, PM me.