The car dealership industry has been known to ebb and flow with the economy. These days, when it comes to the economic environment, we’re seeing higher interest rates, lower gross profit per car sold, a slowdown in active buyers, and the potential for a recession.
According to Cox Automotive, "U.S. automobile dealer sentiment in the fourth quarter of 2022 dropped to the lowest level since the start of the COVID-19 pandemic, according to the Cox Automotive Dealer Sentiment Index (CADSI). At 43, the current market index is below the threshold of 50, indicating that more dealers view the current auto market as weak than strong. The index is down 6 points quarter over quarter, down 17 points year over year, and well below the pre-pandemic average of 48."
As a car dealership owner or leader, you may be feeling overwhelmed or uncertain about what steps to take next. Here we break down how to prepare your car dealership for any downturn that may come.