What happens when auto manufacturers, car dealers and everyone invested in the auto industry comes together? This week all the major car brands come to Las Vegas for their annual meeting. Dealership teams descend on the NADA showroom to see the latest and greatest technology while car companies host events catering to the dealer principals. New cars are often unveiled, classes on sales techniques are offered and bell-weather indicators point to the future.
What will NADA portell for 2018 and beyond?
AUTONOMOUS FEATURES: The conversation will most certainly address the intersection of autonomous vehicles and the consumer. Where safety features include automatic braking, lane departure, blind spot warning and road hazards today, will navigation to destination assisted driving (brake optional) be the next iteration? SALES EFFICIENCIES: Dealers are finding the ability to staff key positions in sales and service trying at best. With the latest slew of software applications and mobile tools available, expect to see more clients purchasing through the online portal with the most transparency and ease of transaction. While CARVANA delivers and picks up the trade with a 7 day return policy, the company continues to lose money. Will Roadster, Drive Motors, or FastLane find a better road to the dealer-client relationship? ONE PRICE ROLLS AGAIN: From the days of Saturn to CARMAX and now AUTONATION, the no haggle story has evolved into its fourth incarnation with CADILLAC forcing dealers to hold pricing to MSRP on new. Gone is holdback and volume discounts which allowed the dealers to sell under each other. Now the game is level, tied to customer satisfaction and inventory. Will more brands try this going forward? DEALER REVIEWS: Customer online reviews were the talk of the NADA, DIgital Dealer and other dealer gabfests back in 2014. Today the systems are readily inplace to keep clients happy, making bad reviews less frequent. SERVICE NIGHTMARES: The focus on RECALLS won’t be going away anytime soon. Started back in the heyday of TAKATA, companies like AUTOAPP make it easy for dealers to remain compliant, even make a profit on RECALL notifications while reducing liability. The days of trusting CARFAX and SAFERCAR should be over as we watch the administration reduce the functionality of NHTSA to stay on top of the inflow. BODY SHOPS: Will the trend of insurance companies and national chains force dealers out of the body shop game? More than likely it is the lack of talent to maintain a well-run and profitable body shop in the future. Look for conversation around buy-sell agreements in this chatter. USED CARS: The abundance of off-lease vehicles and middle age trades will be another hot topic as dealers try to find a way to move more used cars as their cost is high and consumer budgets are strained. Recent technology changes have also depressed the residual values causing remarketing executives heartburn as they try to promote certification as a value to help used cars move through the system. Look for lots of buzz around USED CAR LEASING by GET A LEASE, ALLY, US BANK and some of the car makers promoting their certified models. P.S. on USED CARS: Used cars have already suffered the effects of a price race to the bottom, where dealers try to showcase their vehicles while holding a competitive price displayed online. The lowest price may have some disclaimers buried in the back page, but consumers have responded sharply to such tricks with negative reviews on YELP, Google and DealerRater.com CAR-SHARING: Once a popular subject in 2016, mobile app FAIR has taken the conversation in a different direction. Look for more conversation directed at the cost of non-car ownership among young and experienced drivers. Uber and LIFT are not just alternative income streams but also replace significant beginning and end of life vehicle ownership strategies.NADA 2018 LAS VEGAS
Las Vegas is sure to share its bounty of scenic routes with those interested in a drive, but most of the open road excitement will be on the show floor come Thursday, as we look to the future of car selling and servicing.Sarah Lee Marks is an experienced automotive professional advocating on all things consumer and industry auto-related. As a certified specialist in DMV services, SafeKids Worldwide, and automotive safety with AARP, she is also recognized by WBENC and NDOT. For questions regarding this content or other car issues you can reach her at sarahlee at my car lady dot com. ]]>