Page 17 - GIADA-Feb-2018-Final

“We feel like our new- and used-car

DEALER TIPS business will improve in 2018 from
a pretty darn good 2017. All of the
economic indicators substantiate
dealership group based in Monrovia, CA.
that theory and..."
The first delivery traditionally includes
salespeople congratulating customers on
the purchase of their shiny new vehicle,
handing over the keys with a handshake 3 Anecdotes from
and a smile and sending them merrily on
their way. Auction Lanes on

The second delivery involves customers
later returning to the dealership “and How 2018 Could Unfold
learning about the advanced technologies
on the vehicle,” Hoffman says. Tech-
savvy staffers can help out there. So can By Auto Remarketing Staff
demonstration videos.
Along with a trio of perspectives from the worse than the average weekly decrease of
Kolodge and Hoffman at a J.D. Power/ auction and dealer worlds, the Black Book 0.62 percent in values reported during the
National Automobile Dealers Assn. Market Insights report looking at the first previous four weeks.
automotive conference here discuss full week of activity in 2018 showed truck
the need and benefits of familiarizing segments with larger depreciation than The opening stanza of 2018 allowed Black
customers of today’s vehicle-safety systems, cars. Book’s representatives in the lanes to gather
from lane-keeping assistance to adaptive expectations from a wide array of industry
cruise control to emergency stopping. Editors also determined only one vehicle professionals. The rundown began with an
group — subcompact luxury crossovers auction owner in South Carolina.
“People look to dealers to inform them,” — maintained its value from the previous
Hoffman says. week. Black Book also noticed compact “Auto auctions can always use more cars
vans saw the heaviest depreciation, and that supply need will continue in 2018,”
Kolodge adds, “Make sure their first dropping in value by 1.70 percent. the owner said. “The new tax plan should be
experience with these technologies is a a boost. The industry could use that surge
positive one, in that when they drive off the “The first week of the year saw used- since the ‘tax season’ has become shorter.”
dealer lot and hear that first chime or beep, vehicle values continuing to decline at a
they’ll know what it means.” pace not much different from the average Next, Black Book collected the thoughts
weekly decline in the month of December,” from an executive at one of the auction
She calls adaptive cruise control a said Anil Goyal, senior vice president of chains.
marketplace hit. The system uses radar automotive valuation and analytics at Black
to automatically adjust vehicle speeds to Book. “I believe the supply side of the auction
maintain a safe distance from the vehicle business will grow due to more off-lease
ahead. Volume-weighted, editors reported that and repo units becoming available to
overall car segment values decreased by remarketers. I also feel that the overall
“We’re seeing more use of ACC because it 0.57 percent last week, slightly improved dynamics of the industry will be similar to
is not just cruise control,” she says. “It has from the average weekly decrease of 0.62 2017, which is good.”
been accepted and it is being used.” percent in values spotted during the
previous four weeks. Finally, Black Book relayed the outlook of a
Hoffman describes driving an ACC- franchised dealer from Georgia.
equipped vehicle when another driver cut Black Book indicated the luxury car
him off, “leaving about a foot between us.” segment decreased in value at the highest “We feel like our new- and used-car business
The system worked by dutifully slowing rate among all the car segments. will improve in 2018 from a pretty darn
down Hoffman’s vehicle “but it took longer good 2017. All of the economic indicators
than I was comfortable with.” Again looking at volume-weighted data, substantiate that theory and the recently
editors found that overall truck segment passed tax laws should provide a boost both
Some modern-day automotive equipment values (including pickups, SUVs, and vans) short- and long-term,” the dealer said. n
“takes time to get used to,” he says. n decreased by 0.66 percent last week, slightly

GIADA Independent Auto Dealer FEBRUARY 2018 | 15