Latest Online Edition Read Here

The Used Car News Report: Carvana and Optimism Grow

Independent Dealers Feel More Optimistic

Independent Dealers Feel More Optimistic Featured

The economic and retail sales growth expectations of independent auto dealers have improved substantially, according to the National Independent Automobile Dealers Association's business confidence survey for the fourth quarter of 2017.   The survey of NIADA members is conducted each quarter in partnership with Equifax to gauge their mood regarding general economic and business conditions.   Fifty percent of the dealers surveyed said they expected economic conditions to improve in the first quarter, up from 36 percent in the third quarter survey. Retail sales growth expectations improved to 67 percent from 55, and the number of dealers who expected to increase their inventory investment this quarter rose.   The big drivers of that renewed dealers’ optimism include expectations of tax relief, positive consumer sentiment due to the lowest unemployment rate in more than 30 years and confidence in the current administration's pro-growth, anti-regulation policies. That inflationary inventory situation continues to put pressure on the business expense side of the ledger, which is one reason 57 percent of dealers expected their cost of doing business to increase, up from 45 percent in the third quarter. That jump also reflects the significant investment independent auto dealers continue to make in their digital showroom – as reflected in the survey, which shows 56 percent planned to increase their digital marketing spend.  The expectation of rising expenses also showed up in dealers' perception of the single most important problem facing their business – 25 percent said it was the increased cost of doing business, by far the most popular choice. It was followed by heightened competition from franchise dealers (17 percent) lack of customer prospect traffic/leads and lack of quality retail inventory (12 percent).   Government regulations/red tape, usually one of the most popular responses, was near the bottom of the list at 6 percent.   The overall picture shows NIADA members expected business to improve heading into the new year, optimism bolstered by strong 3.9 percent holiday retail sales growth – well above the 10-year average of 2.6 percent – as well as rising wages, stock market strength, increasing employment and a generally positive economic outlook.  
Rate this item
(0 votes)
Independent Dealer Travels Famous Route For Birthday

Independent Dealer Travels Famous Route For Birthday

Some people celebrate their 60th birthday with a cake and a family party. But independent dealer Guy Strohmeier instead went on a month-long hike from...

Audi Recalls Cars for Incorrect Tire Labelling

Audi Recalls Cars for Incorrect Tire Labelling

Volkswagen Group of America Inc. is recalling 3,543 2014-2015 Audi S7 and 2016-2018 RS7 vehicles. The tire information label on these vehicles incorrectly lists the combined maximum weight as 1146...

  • CarMax CEO Retires
    CarMax CEO Retires CarMax Inc. announced that Tom Folliard retired as chief executive officer of CarMax, effective Aug. 31. As part of this previously reported management succession plan, CarMax’s Board of Directors elected…
    Written on Friday, 02 September 2016 14:35
  • Autotrader Spotlights Best CPO Deals
    Autotrader Spotlights Best CPO Deals Autotrader announced its Top Picks for Certified Pre-Owned Deals for September. In September, Acura is offering a new car financing rate for used vehicles: 0.9 percent interest for up to…
    Written on Friday, 09 September 2016 19:35
  • EFG Names Judges for Northwood Contest
    EFG Names Judges for Northwood Contest EFG Companies announced the judging panel in the 2016 F&I Innovator of the Year competition. The judges will select a winning F&I product idea from one of six teams currently…
    Written on Wednesday, 02 November 2016 18:39
  • Firm Offers Inventory Solution
    Firm Offers Inventory Solution Drivin now offers DealerSelect, an exclusive program that offers custom vehicle recommendations for dealerships based on customer purchase behavior, dealer demographics and local market demand.The program gives dealers access to…
    Written on Tuesday, 06 September 2016 14:48
  • FTC Hosts Disclosure Workshop
    FTC Hosts Disclosure Workshop The Federal Trade Commission has announced the agenda for its Sept. 15 workshop, Putting Disclosures to The Test, which will include 22 presentations covering a wide variety of topics on…
    Written on Tuesday, 23 August 2016 14:09
  • AG Sues Dealer for Missing Titles
    AG Sues Dealer for Missing Titles The Ohio attorney general announced a lawsuit against a Dayton used-car dealer accused of failing to deliver motor vehicle titles to consumers. The lawsuit seeks reimbursement from Ashley Alexander, doing…
    Written on Wednesday, 21 September 2016 19:11
  • Families Find Cars Too Small
    Families Find Cars Too Small A recent survey found that moms and dads shuttling multiple children around in sedans are less satisfied with their cars than those driving larger capacity minivans and SUVs. The CarGurus.com…
    Written on Tuesday, 20 September 2016 15:20
  • Santander Delays Filing
    Santander Delays Filing Santander Consumer USA Holdings Inc. is delaying the filing of its quarterly report on Form 10-Q for the second quarter beyond the Aug. 15 extended filing date.As previously disclosed by…
    Written on Tuesday, 06 September 2016 14:48
  • Book Details Government’s War on Dealers
    Book Details Government’s War on Dealers CounselorLibrary.com LLC, announced the publication of its latest book, Tom Hudson’s “Carlaw IV: The Federal Government’s War on Car Dealers.” Tracing actions over the last five years by the Consumer…
    Written on Thursday, 09 February 2017 18:04
  • Manheim Expands Image Offerings
    Manheim Expands Image Offerings Manheim has nearly tripled the availability of Enhanced Vehicle Imaging (EVI), expanding from 25 to 74 auction locations throughout North America. EVI provides a consistent set of quality high-resolution images…
    Written on Tuesday, 27 September 2016 14:19