The proverbial winds of change are blowing like never before. Some of us seek shelter, not knowing what to expect and some of us are cornering our sails to accelerate in a new direction and seize the opportunities that will undoubtedly present themselves. We are all heading for unexplored territory.
I’ve been in this crazy business since 1970 and I’ve been through a lot of different things over the years. Never before in our history has it been like now. I clearly remember the Vietnam protest marches, the shooting of students in Kent State, Oil Embargo’s, long gas lines, prolonged manufacturer strikes, President Reagan breaking up the PATCO union, the first refunds, the 19% prime interest rates , and so on.
It’s no secret that used vehicles have always played an integral part in building our bottom line. It is also no secret that the financial statement is simply ink on paper until we charge for operations and subsequent operations on those operations. Do you remember the wash sheets?
History is being made now and sadly for many dealers who were identified and revealed on May 14, 2009 (Chrysler, Dodge, Jeep) and many more who received their “Dear John” letters on May 15, (GM) , his story (and all of ours) is written every day. It is clear that the winds of change are howling at each of our doors. We are all faced with hitherto unheard of policies and are forced to make decisions that will very quickly affect the lives of countless thousands of people. Our future is being created now. No one has a crystal ball, but you can bet your bottom dollar (and some of us do) that dramatic events are unfolding before our eyes.
The “limited use” facilities operated by dealers are severely diminished in value without a franchise. The only way these stores can survive is to grow their used car sales operations and service departments.
As many of you know, I have always been a strong advocate for using an intelligent vehicle inventory management system on a daily basis. There has never been a more crucial time in our industry for distributors to implement a workable system and process in their stores. You must take advantage of available technology and be proactive in implementing a change in your operations. If you don’t, you won’t be able to grow. New vehicle swaps are going to disappear for a couple thousand stores. The effect on the used vehicle market remains to be seen, but you can bet there will be some violent swings. There will be shortages in many different segments and other vehicle inventories are unpredictable.
There is no doubt that some of these events will create opportunities. If you are not actively involved in the inventory management arena, you will definitely miss out on lost opportunities and sales. These “lost sale” opportunities must be addressed immediately. There is no way back. You are committed to this business. There will be survivors and there will be casualties. From my point of view, you still have time to choose which category you will enter. If you sit back and wait, the winds of change will pass you by.
If you would like to discuss implementing a growth plan in conjunction with a proven vehicle inventory management system for your store, please feel free to contact me at any time.
By Scott Dreisbach