The AA Team Article Library

“All Things Used Cars” Auto Market Update 5-17-2024

“All Things Used Cars” Auto Market Update     Economic Automotive Outlook: Source   Inflation numbers are out today and from this chart it is hard to avoid the conclusion that inflation is accelerating, driven by services. As we discussed last week, it looks to be a condition that will eventually cause a rapid deceleration…

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Navigating the Fast-Paced World of Auto Auctions

Navigating the Fast-Paced World of Auto Auctions In the world of competitive sports, an Olympian may train for hundreds of hours for an event that lasts mere seconds. Similarly, auto dealers face moments of high stakes when vehicles roll across the auction block — moments where months of preparation converge on split-second decisions that can…

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The Automotive Advisor Team

Automotive Market Update 4-25-2024: Strong Sales Remain

Economic Automotive Outlook: Source The S&P Global Mobility US auto outlook for 2024 reflects sustained, but more moderate growth levels for light vehicle sales. Production levels are expected to continue to develop, especially early in the year as some automakers look to continue to restock in the wake of production shutdowns late in 2023 and…

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Unlocking the Kobe Bryant Method in Auto Sales

Do the numbers 27%, 39%, 29%, 47% mean anything to you? Probably not. Yet, if you knew these were the percentages of sub-$20K inventory stocked by CarMax, Carvana, AutoNation, and HGreg respectively, you might view them differently. How does your inventory stack up in comparison? Analyzing data daily, much like the late great Kobe Bryant…

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The Automotive Advisor Team

Automotive Market Update 4-17-2024: Market Share Time

Economic Outlook: Source The current automotive tax season is about 3/4 of the way through and we’re finally catching up to our 2023 refund distribution averages. We’re currently 3% behind 2023 and 12% behind 2020 fours reef fund volume at this time in those years. 62% of refunds have been processed leaving 38% still pending…

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Leveraging Automotive Economic Conditions for Growth

Managing Economic Conditions for Growth: In the dynamic landscape of the automotive industry, dealerships are continually faced with the challenge of aligning their operations with market trends and consumer behaviors. As we edge closer to the tax deadline, recent data reveals an intriguing trend: the Internal Revenue Service (IRS) reported receiving 90.3 million returns by…

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Tax Season: The Strategic Play in a Dynamic Market

We are two years removed from the height of the pandemic and the automotive market has never been more volatile than it is now. Certainly, there are dealers still making record profits and new car sales have been strong in the second half of 2023 to support used car day supply on dealers’ lots, but…

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The Automotive Advisor Team

Automotive Market Update 2-15-24: Off and Running

Economic Outlook: Source We could be in for a nice tax season. According to the Bureau of Labor Statistics, the median worker experienced a 5.5% increase in earnings during 2023. However, this growth falls short of the 7.1% inflation adjustment implemented by the Internal Revenue Service (IRS) for various tax provisions last year. The IRS…

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Unleash the Power of AAuto & VINCUE at NADA 2024!

Unlock the power of  AAuto and VINCUE at NADA 2024!   Are you ready to take Market Share in 2024?   Are you leveraged to meet your sales goal and not risk being overexposed in this volatile post-Covid market? Do you know your inventory desirability by channel, segment, price band, and trim for optimal turn…

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The Truth about EVs and Cold Weather

EVs love the cold weather climates and for good reason. If you’ve noticed there’s been a fair share of negative publicity about electric vehicles this winter season. We’re in one of the coldest winters in recent memory and it’s starting to affect all of our lifestyles not just our mobility. I wanted to write an…

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Getting Back to Automotive Fundementals by Todd Caputo

The car business is slowing down a bit for many. Are your automotive fundamental ready?   Here are some automotive fundamentals to consider as an owner/operator when times are slow to shore up the ship and get ready for 2023!   1. Mystery shop your dealership sales and service departments. Identify who and where you…

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The Automotive Advisor Team

The Automotive Advisor Team Auto Market Update 11-10-2023

Economic Update:  Source Consumer sentiment dropped again last week. Morning Consult’s report shows that interest rates and higher gasoline prices are driving that trend. Below we show the crop job quotes are slowing but we still have a tighter job market than we’ve seen historically. With wage growth outpacing inflation since April of this year,…

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DO YOU HAVE WHAT IT TAKES TO BE A “Closing Junkie”?

Back when I was one of the top three Cadillac salespeople in America, I discovered the most potent “high” there is. It was as addictive as opioids, but fortunately good for your health, well-being, and bank account. It’s the “closing high” you get every time you close a deal by getting a prospect to become…

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EVs and Artificial Intelligence

AI, or Artificial Intelligence, refers to the simulation of human intelligence in machines or computer systems. It involves the development of algorithms, software, and hardware that enable computers to perform tasks that typically require human intelligence. These tasks include things like learning, reasoning, problem-solving, understanding natural language, and even perceiving and interacting with the environment.…

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How Big is the New Car Supply Deficit Really????

How big is the new car deficit left behind by the pandemic? Sales were impacted by approximately 8.2 million lost over the pandemic. The extent of the new car supply deficit varied depending on the region, the severity of lockdown measures, and the level of reliance on international supply chains. The best estimates are 3…

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The Automotive Advisor Team

Buying and Selling Used Cars: A Deeper Dive

This title looks elementary and any seasoned Used Car Manager might dismiss reading through the article by just glancing at the top points below. While they may seem like common knowledge, we suggest deeper thinking with each because today’s used car market demands just that. The market itself has not been stable enough to decide…

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The Automotive Advisor Team

“All Things Fixed Ops” Market Recap

Economy   The U.S. government on Thursday is expected to report the economy grew at a 1.8% annual pace in the second quarter, according to economists polled by Reuters. Despite that, the Federal Reserve raised interest rates by a quarter of a percentage point on Wednesday, citing still elevated inflation as a rationale for what…

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“All Things Used Cars” Market Recap

 Economy   The U.S. government on Thursday is expected to report the economy grew at a 1.8% annual pace in the second quarter, according to economists polled by Reuters. Despite that, the Federal Reserve raised interest rates by a quarter of a percentage point on Wednesday, citing still elevated inflation as a rationale for what…

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The Automotive Advisor Team

Sales and Service: The Most Important Dealer Relationship for Growth

Building a strong relationship between the used car department and the service department is essential for a dealership’s success. A cooperative and harmonious relationship can lead to better customer service, increased sales, and improved overall efficiency. With inventory turn highly dependent on getting used vehicles front-line ready, it is a must these two departments work…

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The Truth about EV Range and Extreme Climate Conditions

This week I saw another article by a major automotive publication that intentionally or unintentionally has the potential of pushing EV curious shoppers away from EV exploration and possible ownership. The article’s title presented an extreme loss of range in hot weather that even a mildly interested EV intended would take as a reason not…

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The Automotive Advisor Team

All Things Fixed Ops Recap 7-24-2023

Economy  SOURCE Americans should see some relief soon with inflation reaching its lowest point since early 2023 to 3% in June. This has come from the slowing of gasoline prices, airline fares, used cars, and groceries. The better news is this inflation tapering has not caused a spike in unemployment or signs of a deep recession.…

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How to Appraise and Retail Electric Vehicles.

Appraising an electric vehicle is similar to appraising a traditional gasoline-powered vehicle in some ways, but there are key differences to consider. Here are some factors that can affect the appraisal value of an electric vehicle:   Battery Condition: The battery is a critical component of an electric vehicle, and its condition can greatly impact…

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AI’s Impact on Automotive Retail. Good or Bad??

There is little doubt that AI has the potential to transform various aspects of automotive retail operations, including sales, marketing, and customer service. Many seem nervous and even frightened by the impact it can have. Like anything new, the fear is for the unknown. The Automotive Advisor Team can bring clarity to the chaos and…

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Finding Quality Used Cars

There are several ways to find used cars to buy for your dealership and each one of them has advantages and disadvantages with different consideration sets regarding a volume or profit strategy. Let’s discuss a few of them here. 1.  Auctions: Attend local auctions that specialize in used cars. This is a great way to get…

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Courage or Fear in a Volatile Auto Market?

I wrote this article last year but it still holds true today in mindset and perspective. It’s worth a read today or a re-read. May 24, 2022 We always have a choice. I was reading about the life of Roger Crawford, a tennis player, and a motivational speaker. He was the first Division I college…

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Will EV Grow or Slow in the coming years?

Many agree that EV adoption will continue to grow as the industry, and the OEMs, are predictive forecasting and investing heavily to that end. However, if there is still any doubt, let me try and evidence that for you with a cost analysis example and a recent consumer survey. What comes next will be a…

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Quick to Front Line: Turn Inventory for Profit

Getting acquired inventory accurately appraised and efficiently reconditioned to become front-line ready can be daunting. Especially with the age of our current used car inventory set. With margins eroding selling vehicles within the first 30 days is one way to combat gross deterioration. In this article, we will look at a few ways dealers can…

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AI’s Impact on Automotive Retail?

There is little doubt that AI has the potential to transform various aspects of automotive retail operations, including sales, marketing, and customer service. Many seem nervous and even frightened by the impact it can have. Like anything new, the fear is for the unknown. The Automotive Advisor Team can bring clarity to the chaos and…

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Growing in a Supply Constrained Market

Everything we hear is that the new car supply is back up again with volumes up 50% over last year and counting. What we often forget is we shut the country down in 2020, 2021, and part of 2022 which also shut down vehicle production. That inventory is our 2 to 4-year-old sweet spot used…

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Can AI Help Dealers With Inventory?

As we begin exploring AI and its impact on automotive retail operations, we will do our best, to begin with high-level discussions in an attempt to keep the industry aware of the technology. Our goal is to stir up interest more and encourage our readers to reach out for a deeper personalized discussion. In this…

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