AUTOMOTIVE ADVERTISING & MARKETING

Tax Season

Finish Tax Season in Fine Fashion

JKRAdvertising / Automotive Advertising Advice /

March 14, 2016

Tax season is almost over, so be sure you finish strong. The opportunities are certainly there for you. To illustrate our point, we give you two eye-opening statistics. First, research done by the Internal Revenue Service indicates that 40% of people expecting an income tax refund allocate these funds for either housing or transportation – and about half of those will spend their entire refund within a week! Second, a 2015 study done by eBay Motors showed that, out of 2,200 individuals surveyed, more than a third of those expecting a refund plan to spend at least some of it on something transportation-related. They could use if for a down payment on a new car; a down payment for a used car; a down payment for a lease; or even coming to the dealership for parts, service or maintenance on their current vehicles. Additionally, during the period between February and April, potential customers have the ability to make larger down payments on vehicles than at any other time during the years.

Tax Season Isn’t Over Yet

Because we’re already in mid-March, the time is running out – but it hasn’t passed you by just yet. The chance is still there to make the most of tax season! In order to do that, you need to make sure your dealership is top-of-mind with everyone in your community who may be in the market for a car; and also keep your current customers so happy they wouldn’t consider going anyplace else. The second part of that is entirely up to you, but JKR Automotive Advertising can be a huge help when it comes to establishing your store as #1 in the hearts and minds of those in your market.

FREE Advertising Review

To find out specifics on what JKR Automotive Advertising can do for your dealership, call Eric Tigner at (321) 397-0777 to get the wheels in motion. For your efforts, JKR will send you a FREE, no-strings-attached report on your current advertising and marketing efforts – and those of your competitors. Whatever happens after that, you will certainly agree that taking a few minutes to request this report was time well-spent.

JKR Automotive Advertising: We Move Cars.

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Post-Pandemic Dealer Gross Profits are Down – But They Don’t Have to Stay There!
March 13, 2024
It is no secret that dealer gross profits per vehicle are down sharply in the post-COVID automotive world. According to a recent article in Automotive News, gross profits of the six largest publicly traded dealership groups plunged significantly from Q4 2022 to Q4 2023. One of them was actually down 35% per vehicle!

The article explains: High interest rates, more expensive vehicles and a steadier post-pandemic supply chain continue to soften demand and bring it closer to pre-pandemic levels. Still, new-car buying has remained strong overall …

This means that, while sales volume is similar, overall bottom lines are lower for many dealers due to the reduced gross profits. What about your dealership?

Being Realistic
It’s time to turn the page! The time for dealers to simply be order takers for people willing to pay MSRP for a vehicle (and in some cases more) has passed and dealers have to work hard once again to achieve acceptable gross profits.

Selling a high volume of cars doesn’t control gross profits, no matter how much you wish this was the case. Correct processes and menu pricing – and strict adherence to them – do!

What kind of processes?
∙ Slow down the transaction! Your sales staff has to once again sell the customer on the features and benefits of every new and pre-owned vehicle on your lot.

∙ Your salespeople and managers should devalue the customers’ trade-in value (politely, of course) as much as possible. After all, if the customer expects you to lower your price, shouldn’t you be able to do the same on their trade? Remember, you’ll have to fix it up, put your name on it and resell it to someone else with all the tenacity you would a brand-new car. So make sure you buy it right … because the profit is made when you buy it, not when you sell it!

∙ To that end, management should be ready and willing to leave the desk and do thorough walk-arounds on each trade to ensure the best outcome for the dealership.

The Cure for Low Gross Profits
If you are like a lot of dealers these days, you could use some good news. Here it is: while you may not have the capability to achieve profit margins similar to those you enjoyed during the pandemic, they could likely be improved. JKR’s clients enjoy the benefit of attracting not only more customers, but better ones, too!

If meeting and exceeding your sales goals (and increasing gross profits at the same time) sounds great to you, you need to call us. Don’t settle for reduced gross profits when help is out there to get you closer to where you’d like to be.

Want to know how we do it? Reach out to Senior Partner Richard Brauns (407) 701-4233 or Partner/Vice President Jon Albert (407) 718-2494 today.

JKR Automotive Advertising: We Move Cars.

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