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Preparing for Tariffs: Essential Tips for Automotive Dealers 

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Tariffs are here, and they are affecting the automotive industry.  

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. 

Why It Matters 

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. 

The Dealer Opportunity 

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.  

  • Surge in Market Activity: Expect a significant increase in market activity in April as shoppers rush to buy before prices rise.
  • Consumers Acting Now: Those who have been hesitant will act quickly to avoid higher costs, especially with tax return season peaking. 

It’s crucial to market and list your inventory now to capture this ready-to-buy audience. 

What You Can Do for Your Website 

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. 

What We Are Doing 

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:  

  • Providing more resources in next month to help you capture these shoppers who are ready-to-buy and drive more leads for your dealership.  
  • Creating editorial content to help educate shoppers about tariff impacts and best-priced cars. This education will help shoppers make informed decisions. 
  • Increasing our spending to ensure our connected solutions are front and center. 

Get Ready for the Shift: Why Dealers Must Rethink Ad Budgets Ahead of the 25% Auto Tariff 

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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.  

Understanding the Tariff’s Impact 

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.

Anticipated Consumer Behavior Shifts 

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: 

  1. Allocate Additional Budget to Lower-Funnel Campaigns: Investing in targeted advertising efforts aimed at consumers nearing the purchase decision can significantly boost conversion rates. By increasing budgets for these campaigns, and adding relevant keywords regarding the tariffs, dealerships can effectively capture the heightened demand.  
  1. Enhance Retargeting Efforts: Implement robust retargeting strategies to re-engage potential buyers who have shown interest but have not yet committed to a purchase. Personalized follow-ups can encourage these consumers to finalize their decisions before prices rise.  
  1. Optimize Inventory Visibility: Ensure that online inventories are up-to-date and prominently feature vehicles most likely to be affected by the tariffs. Highlighting these models can create a sense of urgency and drive quicker decision-making among consumers.  
  1. Communicate Transparently with Customers: I know it’s going to be hard but do your best to educate your customer base about the upcoming tariffs and their potential impact on vehicle pricing. Transparent communication fosters trust and can motivate consumers to expedite their purchasing timelines.

Bottom Line  

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. 

The Car-Buying Game Has Changed. Here’s How to Win with AI and Better Automation.

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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. 

Meet Every Type of Buyers’ Demands—Everywhere

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. 

Build A Mutually Beneficial Sales Experience 

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. 

Create Relevancy Beyond Sheer Coincidence  

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  

TOP 4 TAKEAWAYS FROM THE 2024 CAR BUYER JOURNEY STUDY 

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Last year, car buyers encountered high prices, high rates, and low inventory. In 2024, there was more inventory and increased cross-brand shopping. The future remains uncertain, particularly in a post-election context. Based on the research from the 2024 Cox Automotive Car Buyer Journey Study, now in its 15th year, we offer insights and recommendations for you and your dealership to stay competitive, maintain consistency for your consumers, and remain successful. 

CLICK HERE to read our top 4 takeaways from the study and actions you can take to enhance your digital marketing strategy in 2025. 

Myth Buster: Addressing Blind Spots in Your CRM

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Guest Expert: Elizabeth Stegall, Senior Director of Retention for Autotrader and Kelley Blue Book is featured as our first guest in the Myth Busters series, where she shares her thoughts on gaps in your CRM, debunks myths around them and shares actionable new ways to leverage data to make better marketing decisions with the accurate and complete information to improve dealership performance.

About Our Guest:

Elizabeth Stegall

Senior Director of Retention
Autotrader and Kelley Blue Book

Key Takeaways:

CRM Misuse and Myths: Understand why using CRM solely as an advertising management tool is ineffective, with only 11% of leads leading to a sale.

Effective Advertising Strategies: Learn how to use third-party attribution companies and click trail data to optimize advertising spend and improve ROI.

Consumer Journey Insights: Gain insights into the non-linear and multi-source nature of the consumer journey to purchase.

Importance of Marketplaces: Understand the true value of third-party marketplaces like Autotrader and Kelley Blue Book in driving low-funnel transactions.

Improving Dealer Engagement: Hear new strategies to increase consumer engagement and address blind spots in dealership operations.

Timestamps:

0:00 – 0:29 Introduction
Host Jade Terreberry introduces the episode and the importance of Myth Busters

0:29 – 2:32 Guest Introduction and Series Overview
Jade introduces Elizabeth Stegall and discusses the new Myth Busters series.

2:32 – 3:07 Myth Introduction
Elizabeth introduces the myth about using CRM as an advertising management tool.

3:07 – 3:54 Better Advertising Management
Elizabeth explains better ways to manage advertising beyond CRM.

3:54 – 7:09 Sales Funnel and Consumer Journey
Discussion on understanding the sales funnel and consumer journey.

7:09 – 8:03 Data Insights from Clairvoy
Insights from Clairvoy’s data on transactions and lead attribution.

8:03 – 9:02 Lead Attribution
Statistics Percentage of transactions with proper lead attribution.

9:02 – 11:12 Dealership Performance Comparison
Comparison of dealership performance and the impact on advertising effectiveness.

11:12 – 11:39 Final Thoughts and Advice
Elizabeth provides final thoughts and advice on improving advertising effectiveness.

11:39 – 12:56 Conclusion and Wrap-Up
Jade wraps up the episode and thanks Elizabeth and the listeners.

Pointers To Determine the “Right Money” With Every Appraisal

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Micah Tindor, Sr. Director of Strategic Planning, Kelley Blue Book® Instant Cash Offer, teamed up with Patrick Janes, Associate Vice President, vAuto, on this latest podcast to dive deep into the appraisal process. They uncovered common variances and customer disconnects that can lead to missed opportunities in vehicle acquisition or mispricing. Their discussion is packed with valuable insights to help you pinpoint the steps in the appraisal process where the “right” money often goes astray and gain a clearer understanding of the specific expectations customers bring to each appraisal.

Check out the podcast and see how you can build customer trust with this new appraisal process.

Unlocking Consumer Insights: Key Findings from the 15th Annual Car Buyer Journey Study

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In this exclusive webinar Vanessa Ton, Senior Manager of Research and Market Intelligence at Cox Automotive, reveals the key findings from the 15th Annual Car Buyer Journey Study. Discover the latest trends in consumer behaviors and learn how to leverage these insights to boost satisfaction and drive growth.  Watch now to gain actionable steps to help you implement effective strategies and stay ahead in the car-buying journey!

What Can a DMS Do for Your Dealership? 

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Streamlined operations and enhanced efficiencies will put your dealership ahead of the competition. One of the most effective ways to achieve this is by implementing a power packed Dealer Management System (DMS) built to enable flexible operational effectiveness. But what exactly does a DMS do for your dealership? Let’s highlight five ways your DMS can make your dealership run more efficiently. 

What is a Dealer Management System? 

A Dealer Management System is a centralized and comprehensive software suite that helps dealerships manage various aspects of their day-to-day operations — including sales, service, parts inventory management, finance and insurance (F&I), and customer relationship management. 

What Can a DMS Do for Your Dealership? 

A Dealership Management System, or DMS, can help your dealership by providing a centralized platform that integrates with other dealership systems. It enables you to track performance, make data-driven decisions, and generate insightful reports to improve efficiency and profitability. By centralizing all aspects of operations, including sales, inventory, financing, fixed operations, and customer management, a DMS allows for streamlined processes, improved efficiency, and better data analysis. This leads to increased profitability through better decision-making, enhanced customer service, and significant cost savings. Often considered the “brain” of your dealership, successful owners and managers leverage this technology to enhance their business and thrive in the following ways: 

1. Optimize Your Sales Process 

The data from your DMS can significantly enhance your sales process by providing valuable insights into sales performance, vehicle pricing, and customer targeting. When your sales team can quickly access performance metrics, generate accurate quotes, and analyze pricing strategies, they can make informed decisions that drive sales. Additionally, by targeting the right customers with tailored offers, your dealership can improve conversion rates and overall profitability. Streamlining these tasks ensures a more efficient sales workflow and a better experience for consumers. 

2. Reduce Compliance Risk and Improve F&I  

Managing finance and insurance (F&I) processes can be complex, but a DMS simplifies these tasks by automating paperwork, calculating loan and lease options, and ensuring compliance with regulations. It also provides tools for tracking F&I performance and generating detailed reports. This not only saves time but also reduces errors and enhances customer satisfaction. 

3. Manage Parts & Inventory Management 

A well-run parts and inventory department can be a goldmine for your bottom line and your DMS can reduce both the time spent and headaches accumulated from managing such a complex part of your business. Your DMS can provide real-time visibility into stock levels, automate reordering processes, and track parts usage. It ensures that the right parts are always available when needed, reducing downtime and improving service efficiency. Additionally, it helps prevent overstocking and understocking, optimizing inventory costs. 

4. Fixed Operations  Management 

Fixed Operations management is a critical aspect of any dealership, and your DMS should work with your scheduling technology to streamline this process by managing appointments and work orders and tracking service history. It provides technicians with the information they need to perform repairs efficiently and ensures that customers receive timely updates on the status of their vehicles. By improving fixed operations management, a DMS enhances customer satisfaction and loyalty. 

5. Increase Profitability with the Right DMS 

The right DMS contributes to increased profitability by providing insights into dealership performance, identifying areas for improvement, and enabling data-driven decision-making. It helps dealerships optimize their operations, reduce costs, and maximize revenue. By leveraging the comprehensive tools and reports offered by a DMS, dealerships can achieve greater efficiency and profitability. 

6. Integrate Your Solutions to Streamline Your Dealership 

A DMS often integrates seamlessly with other dealership systems to create a centralized platform for managing all dealership activities. This integration allows for enhanced connectivity, enabling different departments to share information effortlessly and work in unison. By linking tools for customer relationship management, finance, inventory, and service management, a DMS helps dealerships track performance, make data-driven decisions, and generate insightful reports. The result is a more cohesive operation where each department benefits from real-time data and improved communication, ultimately leading to greater efficiency and profitability. 

Conclusion 

A Dealer Management System is designed to enhance efficiency and streamline operations. By optimizing the sales process, managing finance and insurance, handling parts and inventory, and improving service management, a DMS aims to ensure smooth dealership operations. Implementing a DMS can result in improvements in performance and customer satisfaction. 

Maximize Your Dealership’s Potential with the Right DMS   

Investing in the best dealer management system for your automotive business is a decision that will transform how your dealership operates. From increased efficiency to better customer satisfaction, taking the time to carefully select the right DMS will pay off in dividends.   

Remember, the right technology doesn’t just help your dealership run—it helps it thrive. The right DMS technology will help your dealership stand out from the competition while maximizing your profit potential—now and in your immediate future.   

Learn how to stand out and maximize profitability now and in the future when you download our latest eBook, “Find Opportunities in the Top 5 Challenges Dealerships Face Today.” Download the eBook today!   

Boosting Dealer Success: It’s Time to Do More with Real-Time Data Insights

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Guest Expert: Jeff Flak, Director of Sales Effectiveness at Autotrader and Kelley Blue Book, shares insights and the advantages you can gain when leverage real-time data analytics to drive smarter business decisions such as enhanced customer satisfaction, boosted profitability. You’ll hear the new ways working to effectively manage dealership operations using nVision and other dashboards that help you make smarter spend decisions.

About Our Guest:

Jeff Flak

Director of Sales Effectiveness
Autotrader and Kelley Blue Book

Key Takeaways:

Real-Time Data Utilization: Hear how dashboards and tools like nVision provide real-time analytics to help dealers make quicker, more strategic decisions and the advantages when you use them to drive actions.

Market Share Analysis: Learn the importance of analyzing market share and how it can reveal opportunities to improve performance.

Enhanced Customer Experience: Understand how using data can create a seamless and transparent buying process, leading to higher customer satisfaction and better close rates, and the ways to do this successfully.

Operational Efficiency: Explore how different roles within a dealership can leverage nVision data to manage inventory, leads, and overall dealership operations more effectively.

Accountability and Adoption: Gain insights into how to drive adoption of real-time data tools within your organization and measure success through key performance indicators.

Timestamps
0:00 – 1:00
Introduction
Jade Terreberry and Jeff Flak discuss the main topic of the podcast.

1:00 – 2:29
Guest Introduction
Jade introduces Jeff Flak, Director of Sales Effectiveness at Autotrader and Kelley Blue Book, and highlights his previous appearance on the podcast.

2:29 – 3:16
Purpose of nVision
Jeff explains the purpose of nVision and its importance in providing real-time analytics to help dealers make informed decisions.

3:16 – 4:51
Connecting the Dots with Data
Jeff discusses how looking at your real-time data and dashboards like nVision help dealers connect the dots with data and make strategic decisions.

4:51 – 7:03
Benefits of Real-Time Data
Jade and Jeff talk about the benefits of using real-time data and its impact on dealership performance.

7:03 – 8:24
Cultural Shift in Dealerships
Discussion on the cultural shift needed in dealerships to adopt real-time data tools and what actions to take.

8:24 – 11:05
Effective Use Examples of nVision Data
Jeff provides examples of how different roles in a dealership can use reporting, data and the actions it tells you to take

11:05 – 12:44
Alignment and Common Goals
Discussion on the alignment and common goals achieved through a smarter spend strategy

12:44 – 13:57
Virtual Lot Performance
Jade and Jeff discuss the importance of virtual lot performance and its impact on physical lot sales – it’s your best indicator of what will happen.

13:57 – 16:13
Enhancing Customer Experience
Jeff explains the importance of enhancing the customer experience and ways to improve close rates.

16:13 – 18:49
Driving Adoption and Measuring Success
Final discussion on driving adoption of real-time data tools and measuring success within dealerships.

The 15th Annual Car Buyer Journey Study: Key Takeaways and Ways to Drive More Success

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Guest Expert: Vanessa Ton, Senior Manager of Research and Market Intelligence gives listeners and viewers a behind-the-scenes look at the 15th annual Car Buyer Journey Study results, highlighting key consumer trends and shifted behaviors, the growing importance of a seamless omni-channel experience, and actionable strategies for dealers to improve customer satisfaction and drive more business.

About Our Guest:

Vanessa Ton

Senior Manager of Research and Market Intelligence

Cox Automotive

Key Takeaways:

High Satisfaction with Dealership Experience: New car buyers’ satisfaction with the dealership experience has reached an all-time high of 81%, driven by improved inventory levels and smoother transitions from online to in-person interactions. But there are still things you can do to gain more market share which Jade and Vanessa discuss and map out.

Increased Shopping Time: Buyers are spending more time shopping due to increased inventory, with new buyers spending almost two hours more and used buyers spending about 30 minutes more. Despite the longer shopping time, satisfaction remains high as consumers feel empowered to research and make informed decisions. Find out the reasons why.

Omni-Channel Experience Alignment: Both new and used car buyers are increasingly conducting more of their transactions online. The key is to providing a connected omni-channel experience that allows consumers to do as much or as little online as they prefer is crucial for meeting their expectations, and this episodes outlines why and how to do this for increased sales and satisfaction.

Service Retention Opportunities: Results indicated 82% of new car buyers are likely to return to the dealership for vehicle servicing, both Jade and Vanessa map out ways to highlight your service department with a focus on building long-term relationships to drive more fixed operations revenue.

Continuous Improvement in Dealership Experience: Discussions around the practical ways Dealers can focus on continuously improving the dealership experience and providing the right tools for consumers to complete steps online before visiting the dealership to capture enhanced leads which are more likely to close.

Timestamps:
0:00 – 0:39
Introduction
Jade Terreberry introduces the podcast and the guest, Vanessa Ton, Senior Manager of Research and Market Intelligence at Cox Automotive.

0:39 – 1:45
Guest Introduction
Vanessa Ton is welcomed back to the podcast, and Jade congratulates her on the 15th anniversary of the annual Car Buyer Journey Study.

1:45 – 3:41
Significance of the 15-Year Milestone
Vanessa explains the evolution of the Car Buyer Journey Study and its importance in understanding consumer behavior and preferences in the automotive industry.

3:41 – 4:35
Key Findings Overview
Jade and Vanessa discuss the significance of the study’s findings, highlighting the stabilization in consumer behavior and the proactive steps dealers are taking to meet consumer demands.

4:35 – 7:38
First Key Finding: Shopping and Dealership Experience
Vanessa shares that the shopping experience for new car buyers is at an all-time high, with 81% satisfaction. She explains the reasons behind this, including improved inventory levels and smoother transitions from online to in-person experiences.

7:38 – 8:14
Impact on Dealers and Manufacturers
Jade emphasizes the positive impact of increased buyer satisfaction on dealers and manufacturers, highlighting the importance of meeting and exceeding consumer expectations.

8:14 – 10:31
Second Key Finding: Increased Shopping Time
Vanessa discusses how buyers are spending more time shopping due to increased inventory, with new buyers spending almost two hours more and used buyers spending about 30 minutes more. Despite the longer shopping time, satisfaction remains high due to the empowerment of consumers to research and make informed decisions.

10:31 – 14:17
Third Key Finding: Omni-Channel Experience
Vanessa explains the alignment between new and used buyers in terms of conducting more of their transactions online. She highlights the importance of providing a connected omni-channel experience that allows consumers to do as much or as little online as they prefer.

14:17 – 15:47
Fourth Key Finding: Service Retention
Vanessa shares that 82% of new buyers are likely to return to the dealership for vehicle servicing. She emphasizes the importance of introducing consumers to the service department during the sales process to build long-term relationships and drive fixed operations revenue.

15:47 – 18:15
Continuous Improvement in Dealership Experience
Vanessa 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 before visiting the dealership.

18:15 – 20:35
Closing Remarks and Webinar Announcement
Jade wraps up the episode, thanking Vanessa for her insights and encouraging listeners to register for an upcoming webinar hosted by Vanessa on Automotive News.