The Impact of Interest Rate Hikes on the Auto Industry

As the labor market strengthens and economy activity rises, the Federal Reserve has raised the Federal Funds Rate a quarter percentage point in order to continue to sustain conditions where businesses and individuals can thrive. Currently, short-term rates are between 1.75% and 2%—up a full percentage from 2017—affecting all market sectors including the automotive industry. […]

Enhancing the Customer Experience with F&I Education

With the amount of competition in the modern market and the rise of online sales, it seems like every industry, especially automotive, is focused on enhancing the customer experience in order to drive sales. For dealerships, this consumer behavior means that fewer customers are coming to them to figure out what they want, because they’ve […]

10 Ways to Help Your Dealership Go Green

Going green is a trend that is not going anywhere as more and more companies work to reduce their footprint and more consumers are considering environmental responsibility as a buying incentive. In the automotive industry today, OEMs are challenged to meet strict regulations that work to reduce emissions and drive energy efficiency in their designs. […]

Trends to Watch in the VSC Industry in 2018

The vehicle service contract (VSC) industry is a $33 billion industry that continues to grow. In 2016, the purchase of VSCs post-OEM warranty hit approximately 85 million vehicles, and sales are projected to peak in 2024 at 180 million vehicles. VSCs represent a significant component of automotive sales and profitability, and dealerships, administrators, F&I agencies, […]

How Predictive Analytics Helps Auto OEMs, Dealerships and Consumers

The automotive industry is rapidly transforming with new technology, and predictive analytics is being utilized to find trends and make predictions about future events using techniques like data mining, data modeling, machine learning and artificial intelligence (AI). As our vehicles become more and more connected and advanced, the way we build, sell and use cars […]

Increasing F&I Gross Profit Per Vehicle

Five of the six publicly-traded new-vehicle dealership groups increased F&I gross profit per vehicle at the beginning of this year. This is a trend the groups attribute to acquisition, product sales, and enhanced collaboration between sales teams and the F&I office. Among those groups, Lithia Motors Inc. reached an all-time record by growing same-store F&I […]

Reducing Delinquencies on Auto Loans

Auto loan delinquencies are rising faster than any other category, and last year, outstanding auto loans in the U.S. reached over $1 trillion. This increase delinquencies is so high that the New York Federal Reserve Bank reports that auto loans have reached levels not seen in eight years and the 2016 auto loan totals were […]