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03-10-2008, 02:57 PM | #1 |
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The "Perfect Storm" of Bad News...
For the record, I'm a "Glass Half-Full" kind of person. I'm almost always optimistic and positive.
That said, I'm really getting worn down with the non-stop bad news that seems to be hitting the U.S. Economy lately:
To the extent that you can change the market, how do you adapt? Sell more used cars? Cut back on expenses? Focus on Fixed Operations and F&I? I'd be curious to learn how dealer's are adapting to the Economy. |
03-11-2008, 06:00 AM | #2 |
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Although I am not part of the operations team at Lithia, I do have the fortune of listening in to our operation teams conference calls. Our focus is back on the "basics", parts & service.
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03-11-2008, 08:57 AM | #3 | |
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Quote:
I've worked with some dealers that have managed to grow their Fixed Operations to the point their Absorption was over 100%. The dealers used to brag that they didn't even need to sell a car to be profitable - the Sales Department was the frosting on the cake. |
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03-13-2008, 08:47 PM | #4 |
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Not surprised at all that fixed ops carried the place, outside of highline Imports, who's making big NET money from new car sales? Anyone who claims they are is fudging their statements.
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03-14-2008, 09:36 AM | #5 | |
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Quote:
I saw an ad on Ebay a few weeks ago for a $40,000 Dodge Ram. The dealer was willing to sell at Invoice and give up 100% of Holdback - is that what the business is coming to? Selling cars at cost just to pick up a few scraps of Factory to Dealer money? |
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