TimTalks: Navigating the Changing Auto Dealership Landscape with Daniel Govaer

On a recent episode of TimTalks, CarNow hosts Tim Cox and Bob Lanham connected with Daniel Govaer, the general manager of Mercedes-Benz of Easton, about the ever-evolving world of auto dealerships. Read on for an overview of the conversation.

1. Inventory Challenges: Daniel highlighted the shifting dynamics of car inventory. While cars were available, not all models were selling as quickly as before. High-end vehicles remained in demand and were often pre-ordered, while mid-range models faced longer selling times.
2. Buying from Consumers: Buying cars directly from consumers, once a popular strategy, has evolved. Sellers’ motivations have changed, leading to increased negative equity and complexity. Financial institutions are now seen as more reliable sources for car purchases.
3. OEMs and Inventory: Daniel questioned whether OEMs were producing the right inventory. Brands with a narrower product range appeared better equipped to weather supply chain disruptions, while those with extensive lineups faced challenges.
4. Interest Rates and F&I Impact: Rising interest rates affected financing but not leasing. Leasing made a comeback due to improved product offerings and a focus on value.
5. Analyzing Price Trends: Despite appearances, consumer-facing prices decreased. However, this wasn’t necessarily a sign of anti-inflation success. Factors like model popularity and brand dynamics played a significant role.

As the industry evolves, dealerships must navigate changing consumer behaviors, supply chain disruptions, and brand strategies to stay successful. Be sure to listen to the full episode to catch all of the insights and perspectives covering today’s dynamic automotive landscape.