15 min
Store Count Down-Throughput Up, AI Credit Misquotes, Cybertruck Sale Rebellion The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier
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- Business
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Welcome to Tuesday as we talk about franchise dealership count going down while throughput goes up on the other side of the seesaw. We also talk about Dealer complaints about the use of AI in credit leading to misquotes on payments, as well as a follow up on the dealer-purchased Cybertruck from last week.
In 2023, the U.S. saw a slight decrease in new-car dealerships but a notable rise in sales per franchise underscoring the balance between efficiency and high demand. Note: The count excludes excludes BrightDrop, Fisker, Karma, Lucid, Rivian, Tesla and VinFast
The U.S. new-car dealership count dropped to 18,133 in 2023, while average sales per franchise surged 14% to 483 vehicles, up from 425General Motors and Ford led the charge in reducing franchise counts, contributing to an overall 3.6% decrease in franchises.Notably, Buick dealerships nearly halved from 1958 to 1052, but doubled their throughput to 111 Lincoln cut 100 of its US franchises bringing the total count to 535 and has plans to cut 100 more this yearHyundai and Genesis are expanding their standalone presence, signaling a shift towards more brand-exclusive dealerships."We are well on our way to 75 percent-plus of our network upgrading their facilities by 2025," says Hyundai spokesperson, highlighting a focus on modernization and brand distinction.A staggering 90% of dealers and lenders report frustrations with AI in digital lending solutions, claiming it often results in inaccurate online payment quotes, a poll by eLEND Solutions reveals.
The majority feel that AI's approach to evaluating consumer creditworthiness doesn't align with the reality of customer negotiations, leading to mismatched payment terms."Lenders aren't even pricing to those [rate sheet] tiers any longer," eLEND CEO Pete MacInnis told Automotive News. "Some are, but most of your major ones have this dynamic pricing model" tied to the unique customer and their vehicle choice.Despite AI's sophistication, 76% of initial digital retail quotes reportedly fail to match final lender decisions, highlighting a disconnect between technology and practical application.The Porsche dealer that turned heads last week by acquiring a Cybertruck for $244,000, at a Manheim auction now has it listed for $289,999
Porsche South Orlando acquires a Cybertruck for $244,000 from seller “givemethevin” and, now has it listed for $289,999, defying Tesla's resale restrictions which threaten a $50,000 penalty for early resales, the truck has traveled through multiple owners, each turning a profit.The Cybertruck, with under 100 miles on the odometer"Tesla’s threat...may have actually helped to inflate the price of the trucks," suggests John Clay Wolfe, CEO of givemethevin.com, pointing to a temporary market anomaly.Hosts: Paul J Daly and Kyle Mountsier
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JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/
Read our most recent email at: https://www.asotu.com/media/push-back-email
Shoot us a Text.
Welcome to Tuesday as we talk about franchise dealership count going down while throughput goes up on the other side of the seesaw. We also talk about Dealer complaints about the use of AI in credit leading to misquotes on payments, as well as a follow up on the dealer-purchased Cybertruck from last week.
In 2023, the U.S. saw a slight decrease in new-car dealerships but a notable rise in sales per franchise underscoring the balance between efficiency and high demand. Note: The count excludes excludes BrightDrop, Fisker, Karma, Lucid, Rivian, Tesla and VinFast
The U.S. new-car dealership count dropped to 18,133 in 2023, while average sales per franchise surged 14% to 483 vehicles, up from 425General Motors and Ford led the charge in reducing franchise counts, contributing to an overall 3.6% decrease in franchises.Notably, Buick dealerships nearly halved from 1958 to 1052, but doubled their throughput to 111 Lincoln cut 100 of its US franchises bringing the total count to 535 and has plans to cut 100 more this yearHyundai and Genesis are expanding their standalone presence, signaling a shift towards more brand-exclusive dealerships."We are well on our way to 75 percent-plus of our network upgrading their facilities by 2025," says Hyundai spokesperson, highlighting a focus on modernization and brand distinction.A staggering 90% of dealers and lenders report frustrations with AI in digital lending solutions, claiming it often results in inaccurate online payment quotes, a poll by eLEND Solutions reveals.
The majority feel that AI's approach to evaluating consumer creditworthiness doesn't align with the reality of customer negotiations, leading to mismatched payment terms."Lenders aren't even pricing to those [rate sheet] tiers any longer," eLEND CEO Pete MacInnis told Automotive News. "Some are, but most of your major ones have this dynamic pricing model" tied to the unique customer and their vehicle choice.Despite AI's sophistication, 76% of initial digital retail quotes reportedly fail to match final lender decisions, highlighting a disconnect between technology and practical application.The Porsche dealer that turned heads last week by acquiring a Cybertruck for $244,000, at a Manheim auction now has it listed for $289,999
Porsche South Orlando acquires a Cybertruck for $244,000 from seller “givemethevin” and, now has it listed for $289,999, defying Tesla's resale restrictions which threaten a $50,000 penalty for early resales, the truck has traveled through multiple owners, each turning a profit.The Cybertruck, with under 100 miles on the odometer"Tesla’s threat...may have actually helped to inflate the price of the trucks," suggests John Clay Wolfe, CEO of givemethevin.com, pointing to a temporary market anomaly.Hosts: Paul J Daly and Kyle Mountsier
Get the Daily Push Back email at https://www.asotu.com/
JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/
Read our most recent email at: https://www.asotu.com/media/push-back-email
15 min