Over the past 3 years, MAX Digital has taken the initiative to understand key issues facing dealers, such as reducing salesperson turnover and building customer trust. This year, we focused on profitability. The latest industry research indicates new car profits are not improving, with 60% of dealers reporting profits are down the past two years. Meanwhile, dealers are reporting higher profits on used vehicles. Where are the profits going? More importantly, how can we get them back? MAX Digital, in conjunction with Erickson Research, surveyed 400+ automotive dealers across the United States to learn more.
Our study revealed key opportunities for dealers to boost gross profits:
- Trade-ins are currently an untapped profit source.
- New car profits are shrinking while used cars are more profitable.
- Dealers are discounting their profits away.
- Dealers are ready for sales process change.
- Sales training will help profits.