CIADA Master Dealer Course 

The used vehicle industry has enjoyed almost 3 great years of higher sales volumes and most certainly higher than usual gross profits. These unusual market conditions permitted many, retail used vehicle dealers throughout the U.S. to enjoy the benefits of this upward spiraling market without necessarily having to or improving their overall business management and operational skills to guide their business when the market returns to “normal”.

During these past few years dealers purchased inventory at above expected market pricing, but sold those vehicles at above expected retail pricing. Lenders were also quick to approve loans because “Covid funds” were available to consumers for healthy down payments, interest rates were low and the market protected loans with vehicles that were valued high in the market and showed no signs of slowing.

As always and as predicted the current market now reflects a slower retail used vehicle market. The Fed continues to raise interest rates making loan payments the number one deterrent to purchasing for middle to lower income families. Wholesale prices are dropping and “crazy” retail pricing is no longer sustainable in this market.

Salespeople who once enjoyed bountiful and profitable gross profits are now questioning their ability to live the life-style they had accustomed themselves to these past 2 years. Selling skills, prospecting and marketing skills once again must be employed A market that previously sold 44 million used vehicles now is anticipated to sell 35.6 million (Cox Automotive).

Wholesale inventory is on the rise and the real concern are dealers who ignored the importance of inventory turn being left with over inflated inventories crushing their cash flow and stuck with a tremendous amount of negative equity.

Dealers often times underestimate the fact higher gross profits per unit do not necessarily translate to great net profits (before taxes) on the bottom line.

Dealers are already making negative comments regarding their ability to meet their floor plan obligations to lenders.

The urgency to educate independent retail dealers of fiscal responsibility is essential as dealers now begin to face higher operating expenses and lower sales demand in the coming year.

The independent dealer has many opportunities for profitability from such areas as but not limited to :

1. Improved business planning

2. Expense control

3. Inventory control

4. CPO sales

5. Finance and Insurance Income

The CIADA offering of a Carolinas CMD course for independent retail dealers is an opportunity to prepare existing dealers as well as new dealers for a much-needed understanding of fiscal responsibility, the cornerstone of a successful business. 

Carolina Master Dealer 

Contact us for more information

Office:  (704) 455-2117

Fax: (704) 455-5567

5643 Harrisburg Industrial Park Dr.

Harrisburg, North Carolina 28075