Lotlinx insights:
Bonnell Ford doubles sales with a new approach to marketing aged inventory
Bonnell Ford has faced a host of challenges since Covid, including inventory shortages, payroll and price increases, and rising interest rates, all of which have made running the business more difficult. To address these issues, Bonnell Ford has partnered with Lotlinx to revolutionize its vehicle marketing strategy.
By leveraging Lotlinx’s proprietary AI and machine learning technology, they have adopted a VIN-specific marketing approach that effectively targets potential buyers. This innovative strategy enhances the dealership’s ability to connect with customers and navigate the complex automotive market.
Industry roundup:
FROM AUTOMOTIVE NEWS: Honda, Hyundai, Subaru, Mazda post July gains while Ford, Toyota, Volvo, Kia slip
The light-vehicle market rose 0.5% in July, less than the predicted 1-3% gain due to high interest rates and elevated prices. Despite a 52% increase in incentive spending YoY, a lack of demand kept cars on lots longer, 47 days compared to 29 in 2023. The SAAR forecast is now anywhere between 16 million to 16.7 million units for the year.
FROM CNBC: Ford, GM, Stellantis face a daunting second half of 2024
In recent days, stocks for all three U.S. automakers have fallen in or near the double digit range, signifying the official shift toward a declining automotive market. After years of high prices and low inventories, the pendulum is swinging in the opposite direction and automakers will have to fight to meet their second half goals.
FROM CBT NEWS: How the global stock market meltdown could impact auto dealerships
The effects of recent financial instability could last anywhere from a few months to a few years, but there are steps dealers can take to protect their businesses against the impacts. Adopting strong marketing and inventory management strategies, diversifying revenue streams, and focusing on customer retention are all cost-effective solutions to improve business regardless of the market.
FROM WARDSAUTO: Dealers see lease recovery
After a significant decrease in leasing rates in 2022 and 2023, the number of new cars being financed via lease is on the rebound. In the current market, leasing is a great way for dealers to combat high vehicle prices, ensure a steady flow of used inventory, and maintain a long term relationship with consumers.
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About Lotlinx:
Lotlinx empowers automobile dealers with data and technology to give the best possible market advantage on every vehicle transaction. Lotlinx offers a suite of features such as real-time market analysis, inventory management, and precision targeted vehicle advertising. Dealers leverage the platform to identify potential inventory risks and execute VIN-specific strategies enabling them to move inventory faster and more efficiently.
To start leveraging Lotlinx technology at your dealership, request a free, individualized Inventory Risk Analysis.