Yesterday's Everything is NOT Today's Anything: What's New for the Automotive Industry IS20G14 - Philadelphia, PA LIVE! Casino & Hotel January 11-13, 2022

1. Yesterday’s Everything is
NOT Today’s Anything
L.A. Williams, Vice President
Malik Bronner, Performance Coach
LAW3@DealerSynergy.com
Malik@DealerSynergy.com

2. Who Doesn’t Like Change?

3. P.R.A.C.T.I.C.E.S
Yesterday vs. Today

4. ★ Average Price of a Car in 2016 vs 2021
★ 2016 = $33,000
★ 2021 = $44,000
★ That is a 33% increase!
★ 20% increase from 2020 to 2021
★ 25% preowned 16% new
★ “Yesterday's price is not today's price, not including the markup.”
PRICE.

5. Research.
★ Pre Covid the average buying cycle was 45-90 days. NAMAD says
that may increase to up to 120 days moving forward.
★ We as the dealership should be the main source of information
but we are not.

6. Availability.
★ Average dealership Availability
★ 2018 = 204 new cars - 191 used
★ 2022 = 58 used - new?
★ The New York Times says that the most desirable cars are being
sold before they even hit the dealership.
★ We have to get good at selling inventory that has not hit our lot
yet = pre-selling.

7. Convenience.
★ For years it has become inconvenient to buy a car.
★ Uber and Lyft have emerged as disruptors because of taxis
★ Remember Blockbuster, Yellowcab, Sears
★ The last challenge dealerships are facing today is the growing
industry of ride-sharing apps. Every year, the ride-sharing
industry is growing and this is both affecting the taxi industry and
the automotive industry. The growth of this industry is showing
no signs of slowing down and it’s estimated it will be a $285
billion industry by 2030.

8. Trade-In.
★ Dealers would low ball on trades now where are you getting
your used cars from?
★ If you don't have a VBC that's like not having an F&I
department.

10. I Hate Car Salesman.
★ How many more angry customers
did we create in 2021?
National Independent Automobile Dealers Association - NIADA
October 13, 2021
Mr. Johnson’s characterization of the ethical and hard-working men and women of the used auto industry, and
ESPN’S promotion of that negative stereotype, is irresponsible, inaccurate and inexcusable. The National
Independent Automobile Dealers Association (NIADA), and its members, wish to inform Keyshawn Johnson and
ESPN that negative stereotypes are harmful. NIADA members conduct business with integrity and by a strict code
of ethics.
Find out more: niada.com
#niadaloud #niada #usedcardealer #usedautodealer #independentdealer

11. Credit.
★ Since dealers are raising the prices of new cars, the banks are
valuing those cars at 110% or 120% over their actual retail
value.
★ 800 to 850 = Exceptional
★ 740 to 799 = Very good
★ 670 to 739 = Good
★ 580 to 669 = Fair
★ 300 to 579 = Poor

12. Credit cont.
★ According to the web the avg score in 2021 is 711.
★ Anyone under 711 is technically “sub-prime”.
★ A prime credit score falls within the range of 660 to 719, according to data
from the federal Consumer Financial Protection Bureau (CFPB) Consumer
Credit Panel. ... For example, Experian defines prime borrowers as those with
credit scores of 670 or above.
★ A low credit score signals to lenders that you're more likely to default on your
debts. The share of Americans with credit scores below 600 was 15.5% in April
2021, according to data from credit scoring company FICO. Those scores were
for the FICO 8, the most commonly used credit score.

13. Experience.
★ Middle Class vs. World Class.
★ Sending photos to customers.
★ Less than 13% of our staff is ever professionally phone trained, but 92% of all
customer interactions happen over the phone.
★ 40% of calls to average dealerships go unanswered, that reflects millions of missed
opportunities. (CallReVu)
★ All calls go into internet department but that hinders them from making more phone
calls.
★ According to a study done by Cox Automotive, 85% of customers are more likely to
buy a car from a dealership that offers a digital retail step.

14. Safety.
★ What are we doing to increase safety?
★ Are we taking advantage of more remote options?
★ Appts via Zoom
★ Test Drives through zoom
★ Test Drives through IntellaCar and or The Metaverse

15. Human Resources

16. Human Resources.
★ If we want to prospect, hire, train, and retain people we must
know what's important to them. Lets focus on something other
than the pay.
★ What is our Hiring Process? (Prospecting)
★ What is our Onboarding process?
★ What motivates our people today?

17. H.R. cont.
★ Today’s internet coordinator needs to become more of a
salesperson and today’s salesperson needs to become more of a
coordinator.
★ New age reps are all over Social Media
★ The goal should be to LEVERAGE your Social Media
★ There are STILL dealers today who Social Media sites blocked
★ New age reps are willing to work deals over zoom.

18. Training

19. Training.
★ C.R.A.P. Training
★ If we don't teach the customers, the customers will teach themselves
anyway.
★ Don’t wait for your customers to make changes, be the change.
★ If you're being dictated by the market that's a problem. As industry
leaders, we need to be able to see around the corner.
★ Instead of the news teaching our customers we should have been going
to get on the news to talk about what was happening with one of the
largest industries in the country.

20. What is the old stuff?
★ “Before you buy the car you gotta try it. Come in to test drive the vehicle”.
★ Not understanding how to answer “is it on the lot?”
★ Not understanding “do you have a markup”?
★ We must learn how to use our digital retailing tools.
Training cont.

21. Training cont.
Every professional should learn some level
of video editing/graphic design.
★ Animotica
★ Bomb-Bomb
★ Canva
★ Instagram Reels
★ iMovie
★ TikTok
★ Video Ninja

22. EnterTRAINment

23. Kahoot!

24. What is the
new NOW?

25. The New Now.
★ VBCs should be standard.
★ Imagine NO F&I Department.
★ New and Improved Outbound and Inbound Processes.
★ Inbound and Outbound VBC Processes.
★ Can you tell the difference between these calls?
★ Call 1 Call 2
★ Must sell from Allocation not the lot.
★ Teaching Customers How to Shop.
★ How To Buy A Car

26. Any Questions?

27. Yesterday’s Everything is
NOT Today’s Anything
L.A. Williams, Vice President
Malik Bronner, Performance Coach
LAW3@DealerSynergy.com
Malik@DealerSynergy.com
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