Let's master acquisitions together!

TOGETHER WITH

We are wheels up today to Baltimore, the home of ASOTU CON 2023. We will be on our second site visit of Live! Casino Hotel Maryland to prep for all of you to join us September 25-27. We will be announcing tickets and room blocks very soon, but until then, make sure you free up that calendar.

Follow the ASOTU Events Instagram to keep up to date with all things around our tour and CON!

Keep Pushing Back-Paul, Kyle, & Chris

DEALERS

ATUC: Mastering Acquisitions Part 3

Friday’s episode of All Things Used Cars, Mastering Acquisitions Part 3, gave us a packed discussion full of real-world considerations and takeaways.

As far as the used car market is concerned, we learned from Jon Ellis that:🚗 New car activity remains steady (supply is at 58 days, 68% above last year).🚗 Demand is high, but we have to watch the affordability.🚗 Used car activity remains strong and consistent (days supply down 21%). David Long gave us some important questions to consider:🤔 Do you have an acquisition culture at your dealership? 🤔 How do you measure that acquisition strategy daily by source, store, and person?🤔 Do you understand all of your channels (private-party acquisition, auctions, rental companies, etc), and how do you approach each?Among many helpful voices, Todd Caputo contributed some excellent suggestions:💡 Find ways to empower (and even incentivize) team-members to reach out to people in their personal networks about your dealership’s trade-in/buy-out process.💡 Build a network with the wholesalers in your market.💡 Auctions are super important. If possible, someone should be dedicated to the process of acquiring cars through this channel alone.💡 Consider a referral program for customers who send someone else in with their used vehicle.

Telling it like it is - Demand is high for used cars, but supply is still struggling to keep up. Dealers have the greatest opportunity for successful acquisitions by involving the entire team and a specific acquisitions crew.

AUTOMOTIVE

New Car National Average Price Up 9%

Data from last month shows the average price paid for new vehicles is up. 

• 31% of new cars sold for over MSRP.

• The average price paid was over $45K, while the average MSRP for the vehicles would be closer to $42K. 

A report by iSeeCars shared the vehicles with the ten highest premiums. 

• Genesis GV70                        +28%

• Jeep Wrangler                        +24%

• Mercedes-Benz GLB          +23%

• Porsche Taycan                    +23%

• Jeep Wrangler Unlimited +22%

• Cadillac CT4-V                    +21%

• Genesis GV80                       +21%

• Porsche Macan                    +21%

• Cadillac CT5                       +20%

• Lexus RX 350h                       +20%

Of course, many other much smaller premiums bring the total difference to the earlier mentioned 9%. 

Telling it like it is - Averages are weird, as long as one car sells for over MSRP the average price will be higher than the sticker. Maybe not 28% higher (looking at you, Genesis), but higher anyway.

TOGETHER WITH AUTO GENIUS

Every Marketer Needs Other Marketers

Whether on a team or beating the drum out somewhere in a forest, the marketing world can be a lonely one. That feeling that there are others that see the world the way you do is one every retail automotive marketer gets. One full of co-op guideline novels, website review drama, and the 🔥 logo you just dropped getting the ole thumbs down.

That is where the community at Auto Genius comes in. Auto Genius is a 24/7 Slack community of the top automotive marketers in the country pushing back against the common trends in the industry and solving problems together. If you are a marketer in retail automotive, join the community today!

AUTOMOTIVE

Mitsubishi’s 2030s, VinFast’s Optimistic Delay, and Another Nail In AM Radio’s Coffin?

Mitsubishi Motors announced plans to sell only hybrid and battery EVs by 2035(ish), and nobody even had the courtesy of faking a surprised gasp. The junior member of the Nissan-Renault-Mitsubishi alliance says it will release 16 new models in the next five years and is on track to reach 50% electric sales by 2030 from 7% as of 2021. 

100% Hybrids and BEV by 2035 seems like a more reasonable goal than 100% battery electric by 2030. So, that's nice.

VinFast wants everybody to get two things straight: 1. They are pushing back US production to 2025.2. They have no regrets. The $4B factory in North Carolina will need more time to complete administrative procedures and target commissioning in July 2024. 

CEO Le Thi Thu Thuy says the company is still well-prepared to meet consumers transitioning from ICE to EV despite software, tax credit, and softening demand. 

Let's take a lesson from this: If your idea isn't working at home, moving to North Carolina to build a factory won't help.

Ford is the latest automaker to give up on the wonderful things you can find on AM radio in the dead of night. 

Joining a parade of similar decisions by OEMs, the 2024 Mustang will forego the AM options in favor of equipping vehicles with digital options like satellite, Bluetooth, or internet connectivity. 

Over and out? Lawmakers are concerned abandoning AM radios will make it more difficult to broadcast emergency messages to drivers. OEMs have been made aware of this concern and seem to trust the multitude of other options will ensure FEMA messages or other critical alerts will find a way to advance along with vehicle design. 

Who could have guessed AM radio would sunset before fax machines?

TL; DR - Mitsubishi is going electric but not giving up on gas, VinFast isn’t Giving Up On America, and is America ready to give up on AM radios?

CULTURE

Shoe Game Strong

ASOTU is here to keep you up-to-date with the freshest news and the newest freshness. Here’s the latest in the sneaker game:

Louis Vuitton's chunky new LV Trainer Maxi Sneakers are attracting attention with their exaggerated proportions and cartoonish vibe. While they may look cute with oversized pants, we do not recommend pairing them with skinny jeans.

Luxury jewelry maker Tiffany & Co. and Nike have joined forces to create a limited edition Air Force 1 sneaker, featuring silver accents and Tiffany's signature blue color. They even made an extra fancy shoe box to promote to collab.

If you just love styling your hair every day, this may be the perfect shoe for you! And, like, no one else. This coifed creation by Canyaon, a 22-year-old Russian designer, combines the Nike M2K Tekno with liberty spikes (a sentence we never thought we’d write). Buyer beware: hair gel is not included with purchase.

If you’re a plumber, a crime-fighting robot boy, or just prefer boots, these might be more your style.

Telling it like it is - Shoes are a lot like cars — sometimes they’re weird and sometimes they’re cool, but they always take us where we want to go.

Quick Hits

• Avicar’s new league allows participants to control a real race car via a virtual headset.

• Record sales top CDs for the first time in 30 years. 

• Highly incentivized and ambitious chip production plans in the US are missing something… oh yeah, workers. 

• HBO MAX is updating its name to just MAX, and upgrading its list of shows with thousands of titles.

We don't know everything, but we do know podcasting. Spotify your game? Check out the daily 15-minute show that rolls around retail and auto news to keep you up to date with a bit of jam and energy daily!

History

• 1781: The planet Uranus was discovered by William Herschel.

• 1930: The discovery of the planet Pluto is announced by Lowell Observatory.

• 1969: Apollo 9 returned safely to Earth after testing the Lunar Module.