Select Page

Prepare now for the next era of automotive retailing – Automotive News

by Oct 20, 2022Blog0 comments

For the past two years, the auto retailing business has enjoyed exceptional performance. Those with the good fortune to be part of the industry have seen record profits driven by supply chain disruptions and an active M&A market with the capital to support growth plans and owner exit strategies alike.
How long can the good times roll? It’s hard to say just how long, but we can be assured that at some point, things will change. Given that reality, the plans that dealers put in place now and investments made over the coming year will position dealers to continue their success, no matter what lies ahead.
To understand potential changes and their impact, it’s essential to first look under the hood and see what’s been working well for dealers in the past couple of years:
More than anything else, auto retailing strength has been supported by an industry-wide vehicle supply shortage and robust consumer liquidity from several rounds of economic stimulus. The result has been the Golden Age of automotive retailing where the power of these positive forces has overwhelmed the industry’s intense competitiveness that usually keeps margins in check.
Days of new vehicle sales on hand
inventories plummet.
Most predictions suggest it may take from one to three years for new vehicle inventories to return to historic levels, if they ever do. While conditions can shift quickly—who could have predicted the stellar industry performance of the past two years in April/May of 2020? —dealers should have enough time to put in place strategies that can help extend recent successes into the next era of auto retailing.
Everyone participating in the automotive retailing business is asking “what’s next,” and there’s plenty of conjecture about where the industry will go. From our conversations with dealers and industry leaders, there are seven trends to watch:
Weeks of income needed to purchase a new light vehicle.
New vehicle prices
At some point, today’s Golden Era will give way to the next era of automotive retailing. While there’s much we can’t predict, we can be sure that competition in our industry will remain fierce, with players with disruptive distribution models, retail consolidators pursuing greater scale, and new technology-driven competitors all seeking their piece of the auto retailing pie.
Local dealers have long relied on their unique ability to build relationships with their customers and pursue a more intimate customer journey to buying and owning a vehicle. The most successful ones will leverage that ability to connect with and engage customers with a state-of-the-art digital approach to buying and owning a car capable to winning with today’s customers. Coupling a relationship focus with technology excellence will sharpen the way dealers communicate with prospects, demonstrate their value during the buying journey, and earn that customer’s ongoing loyalty as an asset for the business.
For the many dealers across the country dedicated to serving their customers, their employees, and communities, there’s no higher reward.
Learn more about Dealer Services at Truist.
©2022 Truist Financial Corporation. TRUIST and TRUIST SECURITIES are trademarks of Truist Financial Corporation. Truist Securities is a trade name for the corporate and investment banking services of Truist Financial Corporation and its subsidiaries. All rights reserved. Securities and strategic advisory services are provided by Truist Securities, Inc., member FINRA and SIPC. Lending, deposit services, foreign exchange, risk management products and services and agency services including derivatives products are provided by Truist Bank, member FDIC and Equal Housing Lender.
1, Cox Automotive, VAuto, VMA Data, March 2022.
2, Cox Automotive/Moody’s Analytics Vehicle Affordability Index, February 2022.
Truist Bank, Member FDIC. © 2022 Truist Financial Corporation. Truist, the Truist logo and Truist Purple are service marks of Truist Financial Corporation.
Equal Housing Lender
Investment and Insurance Products:
Services provided by the following affiliates of Truist Financial Corporation (Truist): Banking products and services, including loans and deposit accounts, are provided by Truist Bank, Member FDIC. Trust and investment management services are provided by Truist Bank, and Truist Delaware Trust Company. Securities, brokerage accounts and /or insurance (including annuities) are offered by Truist Investment Services, Inc., and P.J. Robb Variable Corp., which are SEC registered broker-dealers, members FINRA SIPC and a licensed insurance agency where applicable. Investment advisory services are offered by Truist Advisory Services, Inc., GFO Advisory Services, LLC, Sterling Capital Management, LLC, and Precept Advisory Group, LLC, each SEC registered investment advisers. Sterling Capital Funds are advised by Sterling Capital Management, LLC. Insurance products and services are offered through McGriff Insurance Services, Inc. Life insurance products are offered through Truist Life Insurance Services, a division of Crump Life Insurance Services, Inc., AR license #100103477. Both McGriff and Crump are wholly owned subsidiaries of Truist Insurance Holdings, Inc.
Mortgage products and services are offered through Truist Bank. All Truist mortgage professionals are registered on the Nationwide Mortgage Licensing System & Registry (NMLS), which promotes uniformity and transparency throughout the residential real estate industry. Search the NMLS Registry.
Comments regarding tax implications are informational only. Truist and its representatives do not provide tax or legal advice. You should consult your individual tax or legal professional before taking any action that may have tax or legal consequences.
“Truist Advisors” may be officers and/or associated persons of the following affiliates of Truist, Truist Investment Services, Inc., and/or Truist Advisory Services, Inc. Truist Wealth, International Wealth, Center for Family Legacy, Business Owner Specialty Group, Sports and Entertainment Group, and Legal and Medical Specialty Groups are trade names used by Truist Bank, Truist Investment Services, Inc., and Truist Advisory Services, Inc.
Truist Securities is a trademark of Truist Financial Corporation. Truist Securities is a trade name for the corporate and investment banking services of Truist Financial Corporation and its subsidiaries. All rights reserved. Securities and strategic advisory services are provided by Truist Securities, Inc., member FINRA and SIPC. Lending, financial risk management, and treasury management and payment services are offered by Truist Bank. Deposit products are offered by Truist Bank.
Limited English Proficiency Support: Applications, agreements, disclosures, and other servicing communications provided by Truist Bank and its subsidiary businesses will be provided in English. As a result, it will be necessary for customers to speak, read and understand English or to have an appropriate translator assisting them. Truist offers the following resources for consumers that have Limited English Proficiency:
New York City residents: Translation or other language access services may be available. When calling our office regarding collection activity, if you speak a language other than English and need verbal translation services, be sure to inform the representative. A description and translation of commonly-used debt collection terms is available in multiple languages at
Borrowers with Limited English Proficiency (LEP) needing information can use the following resources:
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.
Please enter a valid email address.
Please enter your email address.
Please verify captcha.
Please select at least one newsletter to subscribe.
See more newsletter options at

You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.
Sign up and get the best of Automotive News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.
Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.
Our mission
The Automotive News mission is to be the primary source of industry news, data and understanding for the industry’s decision-makers interested in North America.
1155 Gratiot Avenue
Detroit, Michigan
(877) 812-1584
Email us
Automotive News
ISSN 0005-1551 (print)
ISSN 1557-7686 (online)
Fixed Ops Journal
ISSN 2576-1064 (print)
ISSN 2576-1072 (online)