Our annual webinar, Dealer Industry Predictions for the Upcoming Year, was a success again.
We added a twist and brought in two guest speakers to join Dealer Profit Pros Founder, Kenny Atcheson.
For your convenience, we’ve provided a link at the end of the article to gain access to a recording of the webinar.
We also reached out to several experts within the dealer industry who have creative niches; we asked for a prediction or trend to watch. You will find their responses listed below.
Although a few of the experts appeal primarily to a segment of the dealer industry, others have something to offer all dealers.
These are predictions, which means they can be totally incorrect. In some cases they may be for entertainment purposes only. Others are educated guesses. If you decide to act on any of this information, it is entirely your own responsibility.
Chris Macheca, Chief Operating officer, www.PassTime.com – “I anticipate that there will be several changes impacting the GPS device industry for auto dealers and lenders in 2017. First, providers should begin transitioning to newer cellular networks like LTE. This will allow for greater longevity and expanded features. Additionally, look for providers to expand the analytics related to GPS data to highlight trends and potential issues. Lastly, there will almost certainly be more regulations relating to the use of GPS devices in the subprime industry. Make sure you have documented best practices and consistent policies relating to the use of GPS.”
Scott Carlson, “The Lot Rat,” www.AutoZoom.com – “Used car financing dealerships which have expanded their wholesale range footprint over the last decade will trend toward keeping their core BHPH receivables, but aging and packaging lower credit and highest credit deals then selling them to bulk purchasers. This will enable them to maximize sales without having to ever increase their credit facility or strain their administrative and employee infrastructure.”
Kenny Atcheson, www.DealerProfitPros.com – “I predict an expansion of a trend that affects all dealers (BHPH, Independent, & Franchise). TiVo launched, making it more difficult for TV commercials to succeed, then the ‘Do Not Call’ list, then the Yellow Pages opt-out website. People will make an effort and even pay money to avoid advertising. Now there is Adblocking software for PCs and cell phones that allows users to block digital advertising. It grew this year and is expected to grow next year. With more and more online traffic going to mobile devices it may get easier for consumers to block advertising. The good news is that there are solutions provided during the Predictions Webinar.”
Tom Hudson, Hudson Cook, LLP, www.Hudco.com – “The year 2017 will be a year of regulatory cliff-hangers. Will Trump fire Richard Cordray, the current head of the CFPB? Will Republicans stand by while the Bureau issues industry-punitive rules on arbitration and small-dollar lending? Will Elizabeth Warren and her allies make a ‘grand bargain’ to turn the CFPB into a five-member commission subject to congressional control in order to head off a Trump appointment of a pro-business CFPB director when Cordray’s term expires? Will the 2016 court decision that the CFPB’s structure is unconstitutional hold up on appeal? It would be hard to imagine a more interesting upcoming year.
Happy (and interesting) New Year!”
Nick Zulovich, Senior Editor, SubPrime Auto Finance News and BHPH Report – “The data is obvious. It’s been a rough time for BHPH dealers for the past few years as their market share has diminished from more than 15 percent of all used-vehicle financing back in 2011 to 11.5 percent in Q3 of 2016. But maybe brighter days are ahead.
Delinquencies — stemming from finance companies of all shapes and sizes buying deeper down the credit spectrum — are on the rise, projecting to reach levels not seen since 2009. There are rumblings of these companies easing up on their underwriting aggression in 2017, meaning those consumers will need to return to BHPH to secure transportation.
This year might not be a banner one for BHPH, but perhaps the tide is turning.”
Joe Lescota, Director of Dealer Development, www.NIADA.com – “2017 will be another great year for used vehicle sales. We came off 2016 with a record breaking number of units sold attributing to approximately 3% increase in units retailed by independent dealers. The final quarter of 2016 revealed a slow down in new vehicle sales as pent up demand was satisfied. With a great many off-lease vehicles entering the market independent dealers will most likely see a softening in wholesale prices, especially in the two- to four-year-old categories. Pressure on independents will most likely continue from franchised dealers as they once again fully embrace the used car sector if new car sales continue to soften. ”
Ready to boost your profits, eliminate waste, and avoid the frustration of not being totally sure what is working now? The majority of our clients start with a consultation with Kenny Atcheson and you can too. Click on the image below to learn more.
