TOGETHER WITH
Howdy, Fam!
Today’s stories point in a clear direction: Affordability is squeezing the front end, so the stores that hold margin are the ones that turn “price” into “understood value,” then prove it after delivery.
But first, did you know our Chief of Staff is multi-talented? Of course you did, but now you have photographic proof.
Check out more of his talent on the Dealer Playbook here!
Keep Pushing Back,
-Paul, Kyle, Chris & Kristi
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Reading time: 4 min and 32 sec
Courtesy That Feels Like Luxury
Waiting for a shuttle is so 2013.
Uber for Business lets you offer customers a premium-feeling ride without running a fleet or babysitting a schedule.
One click, and they’re headed home, to work, or wherever they need to go—without awkward waits in the service lounge or hoping the shuttle route loops back soon. It’s an easy way to make service feel like service, not a DMV.
Track it, tie it to the RO, and turn what used to be a stress point into a high-five moment.
THE NEWS
Dealers are still calling conditions “favorable,” but the mood slipped in Q4 as affordability and pricing pressure keep leaning on the front end.
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Per Automotive News’ Q4 Confidence Index, dealers scored current performance at 62.3, down 5 points from Q3 and the lowest of any segment, even while the overall industry index rose to 58.
The drag is familiar: payment-driven shoppers, more price transparency, and less room in new-vehicle gross. Looking ahead, 31% of dealers expect new-vehicle margins to worsen over the next six months.
Fixed ops and F&I are still stabilizers, and used remains tricky with “quality, not quantity” showing up more often.
“Where is margin compression hitting us most, and what is our one desk message to stay aligned?”
Front-end pressure turns into customer doubt fast, and doubt usually comes from process gaps.
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So the next move is value clarity: affordability is not just the payment, it is whether customers understand what they bought and what to expect after delivery.
When customers feel stretched, confusion around the menu, coverage explanations, payment expectations, and delivery promises turns into unwinds, product cancellations, reworks, and lost service retention.
From the ASOTU CON margin-compression panel: sell the car today, but more importantly, sell the car tomorrow. Earlier F&I touchpoints, cleaner handoffs, and one consistent explanation protect retention and margin.
What do customers misunderstand most, and what exact words are we using to explain it every time?
If affordability is tight, residual strength becomes a clean signal for perceived value.
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Per J.D. Power’s 2026 U.S. ALG Residual Value Awards, residuals matter because they shape total cost of ownership and lease costs, and Toyota and Tesla led their brand categories on brand value and discipline. When buyers are stretched, value that holds helps the payment math and reduces regret later.
Therefore, the dealer takeaway is simple: sell the value story clearly, then deliver it consistently enough that customers keep it.
“Can every rep give a 30-second ‘value proof’ talk track beyond the monthly payment?”
Per Cox Automotive, the backdrop is mixed.
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Credit is easing: Dealertrack Credit Availability hit 99.6, best in over two years, with approval rates 73.7% and yield spreads 6.6%.
Affordability is still tight: the typical payment was $767 and 36.2 weeks of income. It held steady mainly because wages were up 3.5%. Incentives were 5% lower year over year, pushing prices up.
Inflation and housing still matter: CPI 2.7% YOY, shelter 3.2%, builder sentiment 37, and mortgage rates around 6.06% mid-month.
So yes, the strain is real. But credit conditions are giving dealers a usable tool. Put it together: front-end margins are tighter, value clarity protects retention, residuals reflect perceived value, and easier credit can keep deals moving. Dealers still make their own economy when they control the process and earn the service lane after the sale.
“Which metric best shows our value story is landing, cancellations, reworks, or first-service shows, and what is our one fix this week?”
AROUND THE ASOTU-VERSE
Turn Lost Sales Into Actionable Insights
Every defection has a why. Now it’s time to discover the whole story.
Urban Science’s new defection survey gives you real insights from buyers who walked—so you can stop assuming and start improving.
Today at 2:00pm EST, Elisabeth Marietti walks us through exactly how it works and why dealers are already using it to solve those pesky sales mysteries.
Automotive Quick Hits:
Renault grew 2025 volume 3.2% to 2.34M, led by Clio and Sandero. International markets (+11.7%) offset Europe softness, while hybrids and EVs accelerated.
Stellantis shares are down roughly 43% since the merger. CEO Antonio Filosa is pivoting to an execution-focused turnaround, prioritizing Jeep and Ram share and dealer relationships.
Porsche deliveries fell 10% to 279,449 in 2025, citing supply gaps, China weakness, and softer EV demand. Leadership is doubling down on “value over volume.”
Today in History: January 21
1862: Opel is founded.
1954: The first nuclear-powered submarine, the USS Nautilus, is launched in Groton, Connecticut by Mamie Eisenhower, the First Lady of the United States.
1981: First DeLorean DMC-12 is complete.
Thanks for reading, Friend! See you same time tomorrow!
