There is no mystery behind the limited vehicle supply we are experiencing right now in the auto industry. And with record low borrowing costs driving down car payments, consumers are less sensitive to today’s soaring vehicle prices, particularly as vehicle scarcity instigates a buying frenzy, especially for high demand models.
As a result, dealers have been experiencing generally unprecedented profits. In the first half of 2021, the average dealership earned a jaw-dropping $1.96 million, 164% more than the industry’s average between 2015 and 2019 according to reports. Even with the removal of PPP funds received in 2021, most dealerships are achieving profitability levels several times higher than historical averages.
Everyone is hungry for more of these profitable deals, and the need for vehicle acquisition software is at an all-time high. However the expanded gap between wholesale and retail means there's more incentive than ever for consumers to try out their sales skills on the FSBO marketplace, which makes acquiring FSBO a challenge.
That said, however, this "new normal" of high margins won't last forever. Everybody knows this, which is why there is a huge opportunity for retailers that are willing to be aggressive to gain market share during this time.
While some sit back, waiting for the high gross front end acquisitions, others will be scooping up inventory left and right, and more importantly, gaining customers. When the market and profitability begins to contract, these progressive retailers will thrive as others struggle. When times get tough, customers you have a relationship with are the ones who carry you through.
The Acquisition Council
Aired Live in September 2021
Guests & Panelists
To help put all this into perspective, we welcome industry veteran Christy Roman from Now Digital to join us on the stage of this month’s show for our discussion of the opportunities at hand for dealers, and potential consequences.
Prior to the discussion we have Acquisition Specialist Tara Lloyd from Fields Auto slated to join us for a brief interview about her role at the retail level in sourcing second hand vehicles from the public.
Following the interview we have VAN Performance Manager Push Singh slated for a conversation on vehicle acquisition best practices with co-host Ben.
The Acquisition Council - Live Stream for Used Car Managers and Buyers
The Acquisition Council is a live show we just began facilitating this month. It is streamed live on YouTube and open to the public for viewing, typically on the last Wednesday of every month.
For more information about the show, see, Introducing the Acquisition Council by VAN and VehicleHero.com.
Sign Up Free in the Learning Center
The live show is an extension of our Learning Center where our commitment to provide the “best communication tools and methods available to assist our Dealer Partners in acquiring pre-owned inventory direct from private sellers” begins.
In the Learning Center you have access to all the great tips, strategies, and best practices, mostly in video and blog form that we have assembled over the years to help make your job easier and more productive.
To get involved with the Acquisition Council, head over to the Learning Center and sign up. Whether you just want to tune in once in a while and watch, or come onto the virtual stage and be part of the live event, get yourself signed up in the Learning Center to get started.
Alternatively you can subscribe to our YouTube channel and be notified of when we schedule new live events, and upload new videos, too, of course.