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Expert Guest: Bill Zadeits, President of Cherokee Media Group and host of the hit AutoRemarketing Podcast, joins Jade Terreberry at the AIS NRC Conference to discuss the current state of the automotive industry amidst the recent tariff announcements, sharing his insights on the unpredictable nature of the situtation, the potential impact on new and used car markets, and the need for cautious steps and strategic responses to navigate these times.
Guest:
Bill Zadeitz
President of Cherokee Media Group
Host of the AutoRemarketing Podcast
Key Takeaways:
Unpredictable Information: Understand the challenges posed by the constantly changing information regarding tariffs and their impact on the automotive industry.
Impact on New and Used Car Markets: Learn about the potential tightness in new car supply and the opportunities in the used car market due to increased repossessed car supply.
Real-Time Data Utilization: Discover the importance of using real-time data to make strategic decisions and capitalize on current market dynamics.
Cautious and Strategic Responses: Explore the need for cautious steps and strategic responses to navigate the unpredictable economic landscape.
Business Intelligence: Gain insights into the role of business intelligence in understanding market trends and making informed decisions.
Timestamp:
0:00 – 0:31 Introduction
Jade Terreberry introduces the podcast and the guest, Bill Zadeits, President of Cherokee Media Group.
0:31 – 1:16 Guest Introduction
Bill Zadeits is welcomed to the podcast, and Jade highlights his expertise and the timely relevance of the topic.
1:16 – 3:12 Significance of Tariff Announcements
Bill explains the recent tariff announcements and their broader scope than initially expected.
3:12 – 4:32 Immediate Market Impact
Discussion on the immediate effects of tariffs on sales pace and wholesale pricing.
4:32 – 6:09 Recession Risks
A discussion on the potential for a recession and the varying impacts on different stakeholders.
6:09 – 8:33 Data-Driven Decision Making
Emphasizing the importance of using real-time data to navigate the uncertain economic landscape.
8:33 – 10:06 Diversifying Revenue Streams
Discussion on strategies for dealers to diversify their revenue streams and mitigate risks.
10:06 – 11:11 Local Market Variations
Highlighting the importance of understanding local market variations and tailoring strategies accordingly.
11:11 – 12:34 Closing Remarks
Jade wraps up the episode, thanking Bill for his insights and encouraging listeners to subscribe for future episodes.
The automotive retail landscape is changing. The industry is feeling the impact of evolving technology, shifting priorities among consumers, and market volatility due to tariffs.
Fluctuating markets mean revenue instability, putting added pressure on fixed ops departments, which have already seen prices steadily increase over the last five years. Used together, the solutions and strategies outlined in this article can help dealerships service departments improve revenue, efficiency, and customer retention in any market.
Convert service opportunities. Don’t overlook the power of sending personalized marketing service reminders and offers to customers who previously declined services. In addition, high-quality images, audio and video can help customers see and hear why additional service repairs are not only necessary, but beneficial.
Maximize shop capacity. Ensure the shop is always operating at full capacity with solutions that can optimize appointments based on work to be performed. Dashboards and performance scoreboards provide real-time insights and performance tracking into shop output, to help service advisors identify and address inefficiencies before bottlenecks occur.
Enhance the customer experience for retention. Digital tools like tablet reception and self check-in streamline the service process to create a consistent, positive driveway experience. Improve overall customer satisfaction and loyalty with real-time status updates and personalized interactions.
Provide price transparency. Be as transparent as possible while giving consumers cost certainty when you can—and explain all the variables when you can’t. Enhanced pricing tools can maintain uniformity and reduce discrepancies to ensure the pricing of services is consistent across different platforms and dealerships. Meanwhile, transparent pricing models allow customers to see detailed breakdowns of the cost of services.
In the end, it’s all about creating great customer experiences: Earning their trust, providing fast ways to check in and check out, and truly knowing who your customers are and what they need. When you tie all of it together with reporting and insights that improve team performance, you unlock the lifetime value of your customers.
Expert Guest: Jonathan Smoke, SVP Chief Economist at Cox Automotive, joins Jade Terreberry at the AIS NRC Conference where he was presented an award, to discuss the current trending economic shifts and situations as well as providing insights into the recent tariff announcements, the potential for a recession, and strategies for dealers and OEMs to navigate these uncertain times using real-time data and diversified revenue streams.
Guest:
Jonathan Smoke
SVP Chief Economic Advisor
Cox Automotive
Key Takeaways:
Impact of Tariffs: Understand the recent tariff announcements and their immediate effects on the automotive market, including changes in sales pace and wholesale pricing.
Recession Risks: Learn about the potential for a recession and how it could affect different stakeholders in the automotive industry.
Data-Driven Decision Making: Discover the importance of using real-time data to make informed decisions and adapt to rapidly changing market conditions.
Diversifying Revenue Streams: Explore strategies for dealers to diversify their revenue streams and mitigate risks associated with economic fluctuations.
Local Market Variations: Gain insights into how different local markets may be impacted differently by economic changes and the importance of tailored strategies.
Timestamp:
0:00 – 0:31 Introduction
Jade Terreberry introduces the podcast and the guest, Jonathan Smoke, Chief Economist at Cox Automotive.
0:31 – 1:16 Guest Introduction
Jonathan Smoke is welcomed to the podcast, and Jade highlights the relevance of the topic.
1:16 – 3:12 Significance of Tariff Announcements
Jonathan explains the recent tariff announcements and their broader scope than initially expected.
3:12 – 4:32 Immediate Market Impact
Discussion on the immediate effects of tariffs on sales pace and wholesale pricing.
4:32 – 6:09 Recession Risks
Jonathan discusses the potential for a recession and the varying impacts on different stakeholders.
6:09 – 8:33 Data-Driven Decision Making
Jonathan emphasizes the importance of using real-time data to navigate the uncertain economic landscape.
8:33 – 10:06 Diversifying Revenue Streams
Discussion on strategies for dealers to diversify their revenue streams and mitigate risks.
10:06 – 11:11 Local Market Variations
Jonathan highlights the importance of understanding local market variations and tailoring strategies accordingly.
11:11 – 12:34 Closing Remarks
Jade wraps up the episode, thanking Jonathan for his insights and encouraging listeners to subscribe for future episodes.
Guest Expert: Isabelle Helms, VP of Research and Market Intelligence at Cox Automotive, joins Jade Terreberry to discuss the transformative changes in the automotive industry over the past 15 years. Isabelle shares insights and a look back at her team’s 15 years of work tracking buyer behaviors, highlighting key trends, missed predictions, and future opportunities for dealers to enhance the consumer experience and leverage emerging patterns.
Key Takeaways:
Timestamp:
0:00 – 0:33 Introduction
Jade Terreberry introduces the podcast and the guest, Isabelle Helms, VP of Research and Market Intelligence at Cox Automotive and sets the stage for today’s episode.
0:33 – 1:47 Guest Introduction
Isabelle Helms is welcomed to the podcast, and Jade highlights her impressive career and contributions to Cox Automotive.
1:47 – 3:31 Significance of the 15-Year Milestone
Isabelle discusses the evolution of the Car Buyer Journey Study and its importance in understanding consumer behavior and preferences.
3:31 – 5:11 Key Findings Overview
Jade and Isabelle highlight the transformative changes in consumer behavior and the proactive steps dealers are taking to meet consumer demands.
5:11 – 8:13 First Key Finding: Shopping and Dealership Experience
Isabelle shares insights on the increased use of smartphones for car shopping and the significant drop in unannounced dealership visits.
8:13 – 8:37 Impact on Dealers and Manufacturers
Jade emphasizes the positive impact of increased buyer satisfaction on dealers and manufacturers and maps out opportunities.
8:37 – 11:37 Second Key Finding: Increased Shopping Time Isabelle discusses how buyers are spending more time shopping due to increased inventory and the empowerment of consumers to make informed decisions.
11:37 – 13:09 Third Key Finding: Omni-Channel Experience Isabelle explains the alignment between new and used buyers in terms of conducting more of their transactions online and the importance of a seamless omni-channel experience.
13:09 – 14:28 Fourth Key Finding: Service Retention
Isabelle shares that 82% of new buyers are likely to return to the dealership for vehicle servicing, emphasizing the importance of introducing consumers to the service department during the sales process.
14:28 – 15:31 Continuous Improvement in Dealership Experience
Isabelle advises dealers to focus on continuously improving the dealership experience by reducing wait times, lowering sales pressure, and providing the right tools for consumers to complete steps online.
15:31 – 16:12 Sneak Peek of Upcoming Research
Isabelle gives a sneak peek into upcoming consumer research, highlighting positive emotions associated with the dealership experience and areas for improvement.
16:12 – 18:18 Future Opportunities for Dealers
Isabelle discusses the importance of embracing AI, integrating data sources, and refining the online purchase process to prepare for future opportunities.
18:18 – 19:58 Common Theme Across Studies
Isabelle reflects on the constant change in the automotive industry and the importance of staying ahead by taking action based on research insights.
19:58 – 21:37 Closing Remarks
Jade wraps up the episode, thanking Isabelle for her insights and encouraging listeners to subscribe for future episodes and exclusive content.
New automotive tariffs are no longer just a proposal; they are a reality, leaving both dealers and consumers wondering about the impact on new car prices. This uncertainty has led to a spike in car shopping as consumers explore their options before the tariffs take effect on April 2nd. While there is immediate opportunity to capitalize on this surge of behavior, dealers also need to look ahead and take proactive steps to stay ahead of the curve. Read on to gain insight into the impact of tariffs on dealership operations, how this will impact consumer behavior, and actionable steps your dealership can employ to effectively navigate the shift from new to used car sales due to pending tariffs.
According to estimates from the Anderson Economic Group, the average cost of a new car could increase anywhere from $3,500 to $10,000 once the tariffs take effect1. As tariffs drive up new vehicle prices, the demand for used cars will surge increasing competition and prices for quality used vehicles in an already constrained market.
The pandemic production gap is already impacting used vehicle inventory, tightening availability and increasing prices. The off-lease cliff resulted in 2 million fewer vehicles, making it more competitive than ever to fill used inventory2. Not only that, but vehicle prices are also currently still 39% higher than pre-COVID levels3. What does all this mean for dealership operations? Dealers must focus on acquiring high-quality used vehicles through trade-ins and consumer purchases to meet this growing demand and maintain profitability by sourcing inventory from the most cost-efficient channels.
Last year, the majority of car purchases included a trade-in, and this trend is expected to increase as consumers rely on trade-in value to offset higher prices4. Affordability remains a significant concern for consumers, with an increasing number of car owners finding themselves in a negative equity position on their current vehicle. In fact, 25 percent of trade-ins put toward a new vehicle during the fourth quarter had negative equity5. As a result, consumers are doing more research than ever to understand the value of their trade, with the average consumer having 2.6 cash offers at the time of sale6. Dealers need to be prepared to meet consumers where they are—both in the research process and in helping them understand their options if they are upside-down on their current loan.
While the impact of tariffs is significant, there are actionable steps that dealers can take to capitalize on the surge of consumers shopping with a trade-in today and solidify their used car acquisition stream for future success:
Jonathan Smoke, Chief Economist at Cox Automotive, emphasizes the broader impact of the new tariffs: “The announcement that all imported vehicles will see 25% tariffs will have a broader impact on the auto market. However, since the tariffs do not at least immediately apply to parts, it may not be as disruptive to U.S. vehicle production as we had feared.” This insight highlights the importance of strategic planning and proactive measures for dealers to navigate the changing landscape.
By leveraging Kelley Blue Book® Instant Cash Offer, building trust with customers, and maintaining transparent valuation practices, your dealership can thrive in this new landscape. Stay proactive, stock up, and ensure you meet the needs of your customers when it comes to trade-ins. The road ahead may be turbulent, but with the right approach, your dealership can steer through successfully.
Micah Tindor leads the Kelley Blue Book® Instant Cash Offer business within Cox Automotive, focused on providing the best trade-in solution for Dealers, Consumers, OEMs, and Partners. Micah guides KBB ICO’s strategy and its role in Valuations, Appraisals, Pricing, and Disposal.
Micah has 15 years in the automotive industry. Prior to his current role, Micah co-founded and served as COO of vAuto’s used car reconditioning software, iRecon. He held multiple Mobility leadership positions for Goodyear Tire & Rubber Company. Micah earned a bachelor’s degree at The Ohio State University and holds an MBA in Strategy from the Fisher School of Business.
Guest Expert: Trent Thacker, Senior Director of Research and Market Intelligence with Cox Automotive is featured in our Special Report episode, where he shares
About our Guest:
Trent Thacker
Senior Director of Research and Market Intelligence
Cox Automotive
Key Takeaways:
Timestamp:
0:00 – 0:31 Introduction
Host Jade Terreberry introduces the podcast and the guest, Trent Thacker, Senior Director of Research and Market Intelligence at Cox Automotive and why this episode is so important.
0:31 – 1:16 Guest Introduction Trent Thacker is welcomed to the podcast, and Jade highlights the relevance of the topic.
1:16 – 1:57 Significance of Tax Refund Research
Trent explains the importance of conducting tax refund research and its impact on the automotive industry.
1:57 – 3:12 Research Methodology
Trent describes how the tax refund research was conducted using Cox Automotive’s consumer community and why its data presents opportunities for dealers and service centers.
3:12 – 3:36 Average Tax Refund Increase
Trent shares that the average tax refund amount has increased by a pretty significant percentage year-over-year.
3:36 – 4:32 Consumer Filing Trends
Discussion on the timing of tax return filings and the demographic differences in filing behavior.
4:32 – 6:09 Impact of Tariffs on Consumer Behavior
Trent discusses how the announcement of tariffs is influencing consumer behavior and expediting vehicle purchases.
6:09 – 6:53 Consumer Spending Plans
Trent shares insights on what consumers plan to spend their tax refunds on, including vehicle purchases.
6:53 – 8:33 Vehicle Purchase Intentions
Discussion on the timing and amount consumers plan to spend on vehicle purchases.
8:33 – 10:06 Vehicle Segments in Demand
Trent highlights the most sought-after vehicle segments among consumers.
10:06 – 11:11 Service and Maintenance Spending
Trent discusses the potential for increased service and maintenance revenue from tax refunds.
11:11 – 12:34 Opportunities for Dealers
Jade and Trent emphasize the importance of leveraging tax refunds for both vehicle sales and service opportunities.
12:34 – 13:47 Key Recommendation for Dealers
Trent advises dealers to focus on both vehicle sales and service opportunities to maximize revenue and to market to the increased return numbers.
13:47 – 14:23 Closing Remarks
Jade wraps up the episode, thanking Trent for his insights and encouraging listeners to view the full research results.
14:23 – 15:10 Bonus Resource Items
Jade announces the tax return infographic and Care Buyer Journey study will be available in show resources.
15:10 – 16:04 Final Thoughts
Jade thanks the audience for tuning in and encourages them to subscribe for future episodes.
On Wednesday, March 26, a significant announcement was made: new tariffs, more extensive than anticipated and set at a 25% rate, will be implemented starting April 2.
Last year, about 44% of new vehicles sold in the U.S. were imported from North America, Europe, and Asia. The automotive industry, which relies on a global supply chain, is already grappling with high costs. These new tariffs will further complicate the situation, leading to higher expenses. This increase in costs means fewer affordable options for consumers and could potentially result in lower sales for your dealership.
Cox Automotive is actively monitoring this evolving scenario and will provide updated insights as new information becomes available.
In the meantime, here’s how you can stay informed about these rapid changes and prepare for the upcoming challenges.
The North American automotive market has enjoyed 30 years of free trade, so new tariffs in place for any significant length of time will be disruptive. Tariffs of 25% across North America will upend the auto market in the United States and the larger economy.
What does this mean for you as a dealer? Now is the time to market and list your vehicles to capture this ready-to-buy audience. Shoppers who have been on the fence and waiting for affordability to change will now act.
All OEMs will be impacted by tariffs because of the cost of parts, so the entire market will increase. Knowing that prices will go up, we expect shoppers to be in the market as early as this weekend looking for cars to buy.
This means INCREASED SHOPPER ACTIVITY.
Optimize Your Website: Your website experience needs to be seamless and easy for shoppers. Any confusion or lack of personalization will have shoppers leaving your website and going to the next dealership.
Show Relevant Vehicles on SRP and VDP: Ensure your SRP and VDP have updated inventory and displays the most relevant vehicles for these shoppers.
Invest in Advertising: Market the vehicles on your lot and use the data in your CRM to see what your shoppers want. Now is the time to increase your advertising spend to reach these customers who are actively shopping and BUYING over the next few weeks. Since customers are ready-to-buy, you want your vehicles in front of them so they can CLICK on the vehicles on YOUR lot.
This is a dynamic situation, and we expect changes to come over the next few weeks. But we are committed to ensuring our dealers can be the most successful under these changing conditions by:
Just turn on the news, and you will hear that the U.S. automotive industry is on the brink of significant change. With the imminent implementation of a 25% tariff on imported vehicles and parts, dealers must proactively adjust their strategies to navigate the evolving market landscape.
Effective April 3, 2025, the U.S. government will impose a 25% tariff on all imported cars, light-duty trucks and auto parts. This policy aims to bolster domestic manufacturing but is projected to have immediate repercussions on vehicle pricing and sales dynamics
Cox Automotive Industry analyses indicate that these tariffs could add approximately $3,000 to the cost of U.S.-made vehicles and up to $6,000 for those manufactured in Canada or Mexico. Such price increases are expected to disproportionately affect affordable vehicle models, potentially pricing out a significant segment of consumers.
In light of these impending price hikes, a surge in consumer activity is anticipated as buyers seek to purchase vehicles before the tariffs take effect. This urgency-driven demand presents a unique, time-sensitive opportunity for dealerships to enhance sales and strengthen customer relationships.
To effectively capitalize on this window of increased consumer interest, dealers should consider the following strategies:
The forthcoming tariffs present both challenges and opportunities for the automotive industry. By proactively adjusting advertising strategies and allocating additional resources to targeted campaigns, dealerships can effectively navigate this period of change. Acting swiftly to address these market dynamics will position dealerships to maximize sales and reinforce their commitment to customer service during this critical time.
Car-buyers are telling you what they want and how to win their business. They’re leaving a trail of data online with every move they make. And nearly seven out of ten of them are even willing to complete some or all their purchases online.1 But the game is constantly changing and, frankly, more complex than just offering an online storefront. More and more data can be a problem, not a solution. So, how do you win in this constant game of ‘keep up’? Cox Automotive is delivering big this year. When it comes to Artificial Intelligence (AI) and automation, both dealers and consumers are playing by a new set of rules. Find out how to win with AI and better Automation with the steps below.
Your customers are definitely online, doing things like shopping, researching, and selling cars. But automotive retailers need to work on creating a smooth experience that combines online, in-store, and intermediary interactions. Again, the game has changed, and it’s going to take intelligent solutions powered by smart data to keep up. To be a successful seller, a profitable dealership, you must consider multiple scenarios. Recent market intelligence from Cox Automotive’s Evolving Consumer Study identified up to five macrotrends shaping consumer trends and, this is key, up to 80% of consumers predict that each macrotrend will affect the way they shop and buy vehicles over the next ten years.1 This means that there is no single car-buying model that stands out as the preferred method of shopping. Rather, you have to be prepared to deliver any and all options, seamlessly, for buyers who shift between online and in-store and everywhere in between.
Creating a mutually beneficial car buying experience for both sales staff and shoppers hinges on the integration of intelligent technology that leverages AI-powered data. By utilizing advanced AI solutions, you can drive incremental deals and achieve faster close rates, ultimately enhancing profitability. This technology bridges the gap between the salesperson and the shopper, ensuring a seamless and efficient transaction process. It provides sales staff with real-time insights and data, enabling them to tailor their approach to each customer’s unique needs and preferences. For shoppers, this means a more transparent and streamlined experience, where they feel understood and valued. The result is a win-win scenario where both parties benefit from a more intelligent and effective car buying process.
Cox Automotive leverages advanced AI technology and powerful first-party data insights to create highly relevant experiences for car buyers. By utilizing deep consumer insights, Cox Automotive can predict customers’ next moves and deliver personalized marketing messages and special-order parts notifications at the right time. In fact, since it’s all based on your shoppers’ online activity and exclusive data to them, they may even think it’s sheer coincidence. This approach ensures that car buyers receive tailored recommendations and information that align with their preferences and needs, enhancing their overall shopping experience and helping dealerships close deals more efficiently.
Hear what Chase Abbott, Vice President of Sales at Cox Automotive has to share about the latest innovation from Cox Automotive. Deal Central can facilitate the most important changes by helping dealers to be ready for every type of buyer, create a seamless process, use AI to build a better sales process, and automate the F&I process.
The automotive industry is changing fast, and dealerships need to keep up to stay successful. By using smart AI technology and understanding what customers want, dealerships can make car buying easier and more personalized. This means happier customers and more sales. As customers’ preferences shift, it’s important to have the right tools to meet their needs. Cox Automotive’s new solutions can help your dealership thrive in this ever-evolving market and ensure your customers have a great buying experience.
Learn more about Deal Central by Cox Automotive with a personal demo by visiting https://www.coxautoinc.com/retail/deal-central/
1 2024 Cox Automotive Evolving Consumer Study
