Car Dealers and the Need to Increase Share

ESA Car Keys | Automotive Market Intel
In 2016, automotive sales volume growth will taper off, resulting in a needed focus on profits. This multi-year run of volume increases have been met with a squeeze in per-unit profits. Profits averaged 6.2% in 2008, and are at 3.5% today, according to Manheim Consulting.

AdamAuto-BlogGraphicRecord automotive volume masks the real problem: profit margins. What will happen when demand doesn’t meet supply — i.e. when buyers aren’t as plentiful as units on the lots of overstocked dealers? This is not 2009 again, but expect dealers to refocus.

Leading dealers are using strategies to shift gears in 2016, including dealer exclusives, better use (and merchandising) of CPO inventory, innovation on the retail and sales floor, and more precision in the advertising department.

To get a hot read on the dealer’s “red zone” for 2016, read Three Odd Reasons for Car Dealers to Increase Market Share by ESA’s Adam Armbruster on Wards Auto’s IdeaXchange.

Want more great automotive retail and growth ideas? Follow ESA Car Keys, or Adam Armbruster on Wards Auto’s ideaXchange.


Adam Armbruster, ESA & Company | Real. Local. ResultsAdam Armbruster is a Senior Partner in the retail and media strategy firm ESA & Company. He can be reached at 941-928-7192.

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