Titling can be a complex and time-intensive part of the car purchase process. With strong sales volumes expected in the back half of the year and car buyers wanting to spend less time at the dealership, the time is now for managers to devise more efficient strategies. On this episode of Driving Solutions, host Jim Fitzpatrick is joined by Kaitlin Gavin, vice president of operations for dealer solutions at Cox Automotive, John Devlin, the CEO and president of the Pennsylvania Automotive Association and Steve Hoffman, senior vice president of the Virginia Automobile Dealers Association to discuss tried-and-true methods for improving the titling process.

The automotive industry has changed significantly in recent years as it has adapted to new tools and online platforms. Although the market is beginning to return to normal, titling is one of many aspects of the car business which have been permanently transformed by technology. This year, in particular, has been marked by the proliferation of digital titling, driven by the acceleration of online used vehicle shopping. With inventory and demand for certified pre-owned vehicles starting to rise even more, dealers who have yet to switch to a digital titling platform should prepare to do so in the coming months.

Cox Automotive’s Dealertrack is one tool that has been helping retailers make the transition to online titling. The service has seen users more than double since 2019 due to its ability to expedite the traditionally weeks-long process into a matter of days. Gavin notes that Dealertrack also provides ancillary products, such as RegUSA, to help storefronts ensure speed and compliance even when fulfilling out-of-state purchases.

With digital titling, Cox Automotive has helped stores in multiple states improve the car buying experience and speed up their operations. In Pennsylvania, Devlin notes that Dealertrack has put more control into the hands of retailers. “It has been a fantastic thing; most of our dealers are on the system,” he comments. Hoffman has seen similar results in Virginia and notes the platform has shown “a real willingness…to work with our dealers and our lender stakeholders to advance future electronic title initiatives.”

While Gavin, Devlin and Hoffman urge dealers to consider switching to a digital titling service, other strategies can help make the process faster and better protected from bad actors. Fraud is prevalent in the used-car sector, which is why prevention and security have become basic requirements for ensuring customers have an excellent experience. Gavin notes that dealers can obtain a copy of a vehicle’s title before the trade-in is accepted, allowing them to validate that the person authorizing the trade-in has the legal right to do so. “This will help dealers avoid any payoff surprises such as undisclosed co-owners or incorrect addresses,” she adds.

Gavin also notes that the number of cars deemed unsalvageable by insurance companies has recently increased by 3%, which means dealers are seeing an influx of buyers who urgently need a new car. While in the past, customers have been held back by the traditional, weeks-long titling process, retailers can now better service clients in need with digital tools. Gavin also explains that the dealer who can handle the entire titling process in a reasonable amount of time has the chance to earn better CSI scores and loyalty than one who does not.

Whatever dealers do, preparing for higher CPO demand will be essential for keeping buyers satisfied in the latter half of this year. To learn more about Cox Automotive’s Dealertrack and how it can make the titling process more efficient, visit their website here.

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Training plays a critical role in the success of dealership staff and, in turn, the customer experience. Yet far too often dealers struggle to ensure their teams are taught in a way that ensures clients are treated consistently across all departments. On this episode of Inside Automotive, host Jim Fitzpatrick is joined by Sarah Vantine, vice president of sales at Quantum5, to discuss why dealers are turning to new methods of training and focusing on the customer experience.

Through conversations with dealership staff and managers, Quantum5 realized that standard training practices are becoming less effective. While car dealers are used to teaching BDC, F&I, service and sales teams differently, the industry is beginning to realize that without a unified, cohesive approach the customer experience becomes fragmented and inconsistent. “What we’ve heard from all our clients,” explains Vantine, “is it’s really time to have a holistic approach to dealership learning.” This is why the company’s program covers the entire sales and service process, with an emphasis on increasing synergy between different teams.

The reason car dealers are beginning to understand that existing training frameworks may no longer work is partly because of the pandemic and partly because of changes in consumer behavior. COVID led to a massive transformation in the retail automotive workforce due to an influx of new hires and a surge in retirements among industry veterans. In most storefronts today, the dealership staff is comprised of individuals who never worked in the car sector before 2020 and who bring new perspectives and skillsets to the table. To accommodate these workers, car dealers must consider new education models and best practices that ensure all employees are on the same page and know how to provide the best customer experience possible.

On the other hand, buyers are now accustomed to high levels of convenience, efficiency and customization when it comes to purchasing products. Since each of these elements require cohesion between dealership staff, the less communicative and unified departments are, the worse the customer experience will be. “We have to be able and ready for where the customer ultimately is taking our business, so training is critical no matter what the department is,” Vantine comments. “If you think about what happens when a customer comes in to buy a car…in a typical dealership [they have] a very, very specific way that that car gets sold…Well, then it comes time to service the vehicle and now this customer is getting this whole different treatment [based on] however that service advisor has been trained to communicate.”

Quantum5 helps car dealers fix these issues with a performance suite of education tools that keep employees across operations focused on the same core principles. Based on feedback from managers and leaders across the automotive industry, the platform provides a unified and cost-effective training program that covers all departments in the dealership, including service, leadership, sales and BDC. The platform also provides KPIs and other data that allow store owners to track the progress of their dealership staff and ensure that the customer experience remains consistent. The retail automotive sector has gone through immense changes over the years in order to survive. By updating the guidebook on training dealership staff to sell and service cars, the industry can continue looking forward to a successful future. To learn more about how Quantum5 can help teams grow in unison, visit their website here.

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Electric Vehicles (EVs) are the future, and we’ve arrived there. The industry brings with it environmental benefits, economic opportunities, and infrastructure development. EVs even have the potential to promote equity and improve community mobility options.

Let’s look closer at those benefits. EVs help reduce greenhouse gas emissions and air pollution, which has positive environmental impacts and contributes to combating climate change. An expanding EV industry brings job growth, innovation, and economic development in areas related to EV manufacturing, infrastructure, and technology, and drives investments in charging infrastructure like public charging stations. EVs can help reduce transportation-related emissions in historically disadvantaged areas and provide cleaner mobility options for those who may not have access to private vehicles.

Benefits notwithstanding, convincing people to buy electric cars is key to the industry’s success, and EV credits – tax rebates provided by the Federal Government – make that possible for more people. According to IRS.gov, “If you bought a new, qualified plug-in electric vehicle (EV) in 2022 or before, you may be eligible for a clean vehicle tax credit up to $7,500 under Internal Revenue Code Section 30D.”

Critics argue that EV credits benefit higher-income individuals, exacerbating existing socio-economic disparities, and may lead to a loss in tax revenue, potentially burdening taxpayers who don’t benefit from the credits. They claim that the cost of implementing and maintaining these credits could outweigh the economic benefits and that focusing on charging infrastructure may divert resources from other sustainable transportation alternatives, such as public transit or cycling infrastructure. 

So, are EV credits the way to go? Or do we buy ten limes when we only need two? 

Rome wasn’t built in a day. Early adoption of technology is almost always led by those to whom it is most accessible, and credits can open that umbrella wider. EV credits drive adoption, which drives benefits, which drives more adoption. Credits make more EVs more affordable for more consumers by reducing the upfront cost. The greater the adoption, the faster the price drops. And greater adoption leads to increased overall fuel efficiency and decreased reliance on fossil fuels. Before you know it, it’s the year 2030 and, according to the Bureau of Labor Statistics, more than half of us are driving an EV.

Rather than expand the divide, EV credits have the ability to promote equity by making electric vehicles more affordable for lower-income individuals and communities. And expanded charging infrastructure can help address range anxiety and enhance convenience for EV owners, facilitating the transition to cleaner transportation, including public transit.

As for cycling infrastructure, we can bike and EV at the same time. It’s the penny-perfect solution.

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Are they worth it? appeared first on CBT News.

The retail automotive industry has been tasked with meeting today’s rising consumer expectations and demands. As dealers adapt successfully, CDK Global has launched a new platform to assist with the transformation and how dealers sell and service cars. That platform, known as the CDK Dealership Xperience, is said to unify workflows at the dealership into a single experience. On today’s Inside Automotive, we’re joined by CDK Global Chief Marketing Officer, Barb Edson, to tell us what it’s all about.

Background

The CDK Dealership Xperience was created to deeply listen to dealers and the customers in which they serve. Edson says, “In today’s industry, consumers are more flustered than ever during the car buying process.” Therefore, dealers continue to see their satisfaction scores drop, and recruiting employees and nuance remains increasingly tricky. Furthermore, dealer operations are depreciating in efficiency. CDK notes, “We are at a fluctuating point in the industry.” Dealers are bolting on solutions around its dealer management system, DMS, but these solutions don’t talk to each other. As a result, there are inefficient workflows throughout the dealership, leading to low customer satisfaction. 

Solutions

The Xperience brings the consumer and the dealership experience together to change and simplify dealership operations. Edson implies that dealers need to have a new category of software, one that will bridge functionality and connection. Moreover, CDK believes they are the solution to deliver those optimal experiences.

At the heart of Xperience is its foundations suite, which enables dealers to run their entire business on one platform. That platform includes CDK’s DMS engine, which is paired with advanced digital retailing, e-signing, and simplified desking solutions. Additionally, Xpereince’s modern retail suite integrates a seamless workflow from the online and in-store process all the way to contracting. Edson asserts, “Research shows that only 3% of consumers want an online-only solution.” Most consumers want a hybrid solution, saving the overall time spent in the dealership by over an hour.

On the other hand, Edson debunks the myth that the digital retail experience will whip out the industry entirely by saying, “That simply is untrue.” She further explains, “The traditional DMS is no longer enough and creates inefficiencies, costing dealers thousands. As a result, Xperience reduces friction while also providing new technologically advanced solutions for dealers, such as modern service scheduling.

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As consumers hold onto their vehicles for longer periods of time, used car dealers are looking for alternatives to trade-ins and auctions to keep their inventories stocked. One such alternative is Vettx, a platform that aggregates private party listings from a variety of sources, including Facebook, AutoTrader, Craigslist and CarGurus. On this episode of Inside Automotive, host Jim Fitzpatrick is joined by Jennifer Torres, spokesperson for Vettx, to discuss how the company’s software speeds up the acquisition process and helps retailers stay up-to-date on the constantly changing market.

Vettx provides used car dealers with a single, centralized location where they can access and manage listings. By simplifying the process of acquiring vehicles from private sellers, the platform makes tracking third-party sellers easy and greatly increases both efficiency and accountability. “Our focus on private party stems from the fact that these accounts often offer high-quality vehicles at more reasonable prices compared to auctions,” explains Torres.

To ensure that used car dealers get access to the best listings, Vettx collects a variety of data regarding each vehicle. “We gather all the information, contact info, history report, and we use industry-standard tools to book the vehicle out and obtain market-specific evaluations,” Torres comments. The platform also uses artificial intelligence to flag potential issues such as suspicious listings, scams or unrealistic deals, allowing users to make informed decisions. Other AI-powered tools included in Vettx allow used car dealers to track make, model, price, location, season, availability and average churn in real time. Additionally, the platform leverages image recognition software to identify vehicles, further accelerating the acquisition process.

Used car dealers looking to integrate Vettx into their operations can also take advantage of the platform’s training services. “Even if you have never bought private party, our experts can help,” notes Torres. “Our training team assists dealerships in setting up the platform, understanding the various features and best practices for managing and following up on leads in private party buying.” The company also prioritizes data security. Users can expect to see thier information protected by stringent security measures, encryption, secure data handling protocols, and major DMS and email integrations.

With its unique features, Vettx creates a bridge between used car dealers and private sellers. “We believe in empowering our clients with the necessary skills and knowledge to make the most of Vettx,” explains Torres. As technology continues to transform the way used car dealers conduct business, the platform will continue to grow and add new features. “We’re committed to continual improvement and are excited to bring more features and advancements to our customers in the near future,” concludes Torres. “Are you going to be on the cutting edge or left behind?”

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As new car inventory across the country expands, so too has the number of calls placed to dealerships. The increase in volume has made it challenging for employees to keep up, resulting in cut corners and low conversion rates. With the number of unanswered or mishandled voicemails growing by the day, managers must ask themselves how much money they can afford to leave on the table. On this episode of Inside Automotive, host Jim Fitzpatrick is joined by Mike Hoyser, vice president of training at Phone Ninjas, to discuss how his team of coaches and assistants help maximize dealership profits and strengthen skillsets in sales and BDC teams.

One of the biggest challenges facing dealers in the new automotive marketplace is the uneven authority shared between clients and representatives. During a phone conversation, the customer’s objective is to gather information about the vehicle, such as pricing, availability and driving history. Salespersons feel obligated to let the caller control the discussion, which ultimately leaves them little time to pitch an in-person meeting. Hoyser explains that this dynamic is disastrous for businesses trying to maximize the efficiency of their sales operations. “What happens is we stay on [the client’s] agenda and they control what happens on the phone call,” he remarks.

Phone Ninjas gives power back to dealers and their BDC or sales teams through in-depth training and quality support. “I think what makes us different,” states Hoyser, “is a lot of times…phone-training companies out there are using transcription, alerting methods, all these types of things…what Phone Ninjas does is we bring back the human side.” When dealers join the program, sales representatives gain access to coaches who teach proven tactics that create more leads and convert more callers into customers. This helps dealers realize more profits from their business development initiatives and keeps them from leaving money on the table due to missed or poorly-handled calls.

Working with Phone Ninjas has other benefits. Dealers who choose to join the program typically do so with a 20% appointment-setting rate. “Our average customers are right about 60%,” reports Hoyser, “within 90 days you’re gonna see that.” Long-term partners, on the other hand, see rates as high as 80%. By working with the company’s coaches, sales teams not only improve their effectiveness but also learn to abandon bad habits. For Hoyser, this is the most rewarding part of the job. “When I do go out to a store that has a lot of tenured salespeople, and they come up to me afterward and say, ‘You what, I’ve been doing this a long time, and I did pick up a lot of different things, and you know what I need to polish up on this’…I kind of really like that.”

Another crucial advantage that comes from Phone Ninjas is consistency. Hoyser notes that he has spoken with many successful dealers during his career. “One of the things that does come up is they’re very disciplined…because disciplined people are very good about not cutting corners,” he states. “If they have a process, they cover the full process…” Since the company works so closely with the BDC or sales team, representatives have more accountability and oversight to make sure they stay in control of the conversation and handle each call with the same level of care.

The last benefit to be gained from a Phone Ninjas partnership is the speed with which dealerships can get their operations up and running. Hoyser notes that it only takes a week for most sales or BDC teams to gain certification and learn how to use Phone Ninja’s tools. This means that representatives can start improving their skills as fast as possible. “Let’s get back to selling and not just telling,” remarks Hoyser.

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What is the difference between Level 1, Level 2, and Direct Current Fast Charging (DCFC) stations?

Every electric vehicle has an on-board charger built into the vehicle. Level 1 and Level 2 charging stations supply the vehicle with alternating current (AC) electricity, which the on-board charger converts into direct current (DC) electricity to charge the battery. It’s important to note that the on-board charger is not the same as an external EV charging station, also known as EV Supply Equipment or EVSE. Generally, the term “charger” refers to the charging station or cable that provides power to the vehicle.

Level 1 chargers

Most electric vehicles come with these charging cables that can be plugged into a regular 120-volt connection using any standard household outlet. They are compact enough to carry in a truck and easily plugged into a regular wall outlet. They are primarily designed for slow overnight charging, and it takes more than 12 hours to fully charge an EV from 0% to 100%.

Level 2 chargers

Level 2 chargers are the next step up in charging equipment. Drivers wanting a faster home charging experience can purchase Level 2 chargers, such as the Blink HQ 200, and charge up to 6 times faster than Level 1 charging. In addition, most commercial public, multi-unit, and workplace charging stations will be Level 2 chargers.

Depending on the vehicle, Level 2 charging stations provide up to 80 amps allowing a vehicle to fully charge in 4-8 hours, though some vehicles may take longer. Level 2 chargers can plug into a 240-volt NEMA electrical outlet or be directly wired into a home or building’s existing electrical system. Commercial public chargers will virtually always be hardwired into an electrical system.

As the graphic above shows, AC Level 1 and Level 2 charging stations send AC power to the on-board charger, which then converts to DC power to charge the battery. The spend of Level 2 charging is dependent upon the on-board charger within the vehicle.

DC fast chargers (DCFC)

Unlike Level 1 and Level 2 chargers, DC fast chargers can charge a vehicle in under an hour. That’s because DC fast charging does not need to convert AC power to DC power and can go directly into the vehicle’s battery, bypassing the onboard charger. DC fast chargers provide 100 to 500 amps of power to battery electric vehicles and can charge a vehicle up to 80% in 20-40 minutes.

DC fast chargers require 480-volt power and pull large amounts of electricity in a very short timeframe. Therefore, most DCFC are installed for commercial fleets, near highways, and at other public parking facilities.

How long will it take to charge my EV?

Elements that affect the amount of time it takes to charge a vehicle include:

• The type of charging station (L1, L2, DCFC);
• the size of the vehicle’s battery, and;
• how much power the vehicle’s on-board charger is capable of receiving.

To estimate your vehicle’s charge time, divide your EVs battery size by whichever number is lower, acceptance rate or charger output. This formula will give you the total hours to charge from 0% to just over 80%. It’s important to note that when referring to charging, it is universally accepted to estimate charge times from 0% to 80%. After a vehicle reaches 80% charge the vehicle’s software begins to slow down the battery’s acceptance rate to protect the battery. In fact, according to JD Power, your EV’s battery will last longer if you prevent it from charging 100 % or running it down to zero. To extend your EV battery’s life, remember the 80/20 rule, which means not charging past 80 percent and not letting it drop below 20 percent.

How do I find a charger?

Finding a charger is relatively easy with more chargers concentrated in urban areas. TO find a charger, drivers can use a service such as:

• Google Maps
• Apple Maps
• Their vehicle’s navigation system (if available)
• The Blink app for iOS and the Blink Android app
•  The PlugShare website or the PlugShare app for iOS or the PlugShare Android app

Can my Tesla use non-Tesla charging stations?

Yes, Tesla drivers use non-Tesla Combined Charging System (CCS) charging stations with an adapter at Level 2 charging stations. Most Tesla’s even have the adapter standard in the trunk. There is also a DCFC adapter for Tesla vehicles however, it’s size, expense, and widely available Tesla charging network typically discourages widespread use of the DCFC adapter. Many EVSE companies are also bringing to market the Tesla, or North American Charging Standard (NACS) connector in their upcoming products to make EV charging even more accessible. 

Can Hybrids use a DCFC?

No, if you have a plug-in hybrid electric vehicle (PHEV) your vehicle typically doesn’t allow for DC fast charging. 

To use a DCFC, you must have a matching charging port. While there is a standard plug for Level 1 and Level 2 charging, there are multiple charging standards for DCFC including the CHAdeMO, CCS, and NACS adapters – international plugs have even more options.

How much does it cost to charge an EV?

Now this one is trickier. Many factors make-up the cost of charging your EV. Not only does the size of your battery factor into the equation but so does the owner of the EV charging station. 

In most states, you pay per kilowatt when charging your vehicle however, a few states do not allow kilowatt pricing so charging stations charge by duration of the session – in other words, you’re paying for the time you’re connected to the station. In these states, the pricing is establishing to the highest amount of energy that flow through the charger at any given time, even if your vehicle cannot accept energy at that rate. This makes time-based charging more expensive for most EV drivers.

In addition, most EV charging stations are owned by the location that hosts the charger (site hosts). This means that your neighborhood restaurant may choose to establish their own pricing rates. Generally, site hosts base their charging rate on the cost of commercial electricity they are paying for the energy and factor in the cost of installing and owning the equipment. 

Pricing can also depend on local utility sourcing, time of day, availability of specialty pricing for certain groups (such as employees or residents), and how many other chargers are located nearby. 

For many EV drivers, this inconsistent pricing is frustrating, but drivers can quickly find the best priced charger near them using EV driver applications such as Plugshare.  

Conclusion

There are bound to be many questions about EVs for your dealers’ sales team from new-to-EV customers and potential EV buyers. With a little preparedness, your sales team will be able to help these new customers get into the perfect EV to suit their needs. With the Federal EV tax credits now eligible for residents’ 2023 taxes, even those who want to buy a used vehicle can purchase their first EV! Now is the time for dealer team to familiarize themselves with EV terminology and get comfortable answering all the questions bound to come their way. For additional information and training, contact the experts at Blink Charging.

These materials and information contained herein are provided for informational purposes only. Blink Charging does not guarantee the accuracy or completeness of these materials.

The post How to answer top EV FAQs this season at your dealership appeared first on CBT News.

It is important to partner with the right vendors, especially when it comes to entrusting your dealership’s fixed operations to a business development company or BDC. On this episode of Inside Automotive, host Jim Fitzpatrick is joined by Ujj Nath, the chief executive officer for myKaarma, an industry-leading communication and payments operating system, to discuss the efficiency-boosting effects of technology on BDCs.

BDCs are nothing new in the automotive industry and have been used for years to increase profits and efficiency in the service department. However, what sets myKaarma apart from other firms is its modernized format. “In the old days,” explains Nath, “what would happen is, if you call the BDC…it will ring multiple phones like a hotline, and the first agent that picks up will answer it and that’s it.” Now, however, companies communicate with their clients through a variety of channels, including texts, website chats and emails.

This shift has helped businesses connect with more consumers. Unfortunately, it has also made it more difficult for business development companies to manage communications since the number of messages has drastically increased, an issue compounded by the fact that many are only equipped to take phone calls. Considering that today’s customers prioritize speed and convenience when scheduling service appointments, the problem becomes clear. The last thing dealers want is to lose prospective service clients because their scheduling system was too confusing or because the BDC agent took too long to answer the phone. One of the best solutions for this issue is myKaarma’s BDC Inbox.

The inbox seamlessly condenses all forms of communication, including text, email and voice calls, into a single conversation type. The message is then transmitted to the BDC agent, who can simply read the information and route the customer to the necessary dealership department without having to accommodate for different conversation channels. “Our BDC Inbox; think of it as the body and the suspension on top of our communications platform,” explains Nath. Dealers and their fixed operations departments are also able to see myKaarma work in real-time, keeping up to date with how customers are interacting with technicians or BDC agents.

This system drastically improves the efficiency of both fixed operations and BDC teams since agents are spending less time on the phone. Nath notes that dealers who work with myKaarma see the number of service department appointments rise by 10%, with call volumes often cut by half. Phone conversations made through myKaarma’s platform are also recorded, allowing dealers and customer representatives to know exactly what was discussed with clients should issues arise. The BDC Inbox also allows for channel switching, giving retailers control over how they respond to consumers.

The myKaarma platform is a powerful software suite with a proven track record of boosting BDC efficiency and fixed operations revenue. Nath notes that even more tools are planned for the platform, including an artificial intelligence plugin that will further speed up client communications. To learn more about how myKaarma can boost service results, visit the company’s website here.

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Closing is a critical step in the sales process, and having a technique that works almost every time can make things much easier on the floor. On this episode of Inside Automotive, host Jim Fitzpatrick is joined by Sean Gardner, instructor and sales trainer at the Joe Verde Group, to discuss the best methods for winning over hesitant customers.

To understand how to close, sales employees must first understand what closing means in terms of the sales process. “You and I, we grew up in the car business,” explains Gardner, ” and we always thought closing was: you get to step A in the selling process, you hold your breath, you blurt out a closing question.” The issue with this tactic is that the majority of the factors influencing a customer’s decision do not appear during the conversation but rather before. First impressions are made in the first seven seconds of engagement, Gardner notes. This means that from the moment a client lays eyes on a salesperson, their mind is already drawing conclusions. This means that in order to successfully close, sales representatives must win the customer over as soon as possible.

Another important aspect to understand about the sales process is that a close can be successful even if a client does not immediately decide to purchase the vehicle. This is because closes also serve a secondary purpose: to flush out objections. In other words, salespeople can use closing statements to identify problems impacting the consumer, allowing them to move the conversation forward by recommending solutions. Objections, as Gardner notes, are not roadblocks but rather stepping stones on the path to successfully closing a sale.

One of the worst things a sales representative can do is to assume the conversation is over simply because they encounter one obstacle. The vast majority of sales are closed after the fifth attempt, explains Gardner, but 75% of salespeople only ask for the sale one time, and many never even ask. This is why it is important to approach the sales process with confidence and the understanding that a successful close is not the finale but the main course.

The post Understanding the sales process: how to close more deals — Sean Gardner | Joe Verde Group appeared first on CBT News.

So, let’s go through this question together: why now?

No surprises

According to Maxime Théorêt, Managing Partner at DSMA, assessing your business regularly is a lot like having your car serviced: no one wants unpleasant (and costly) surprises. A dealership evaluation is a preventive exercise that allows you to analyze the areas of improvement and the good practices of your dealership. It’s an exercise that highlights performance, but also areas where your business can do better. This in-depth analysis of your dealership’s activities also allows you to detect business trends that you may want to pursue or improve, especially if you feel short-changed by your fiscal year (we know you’re thinking of your tax return as you read this). In short, this one to two-week exercise will allow you to take stock of your business from every angle.

Be better equipped for short, medium, and long-term planning

Are you thinking or expanding your portfolio, or maybe retiring? No matter what stage of your professional life you are in, an annual business valuation is an indispensable tool for clear and precise planning of your business activities. Anthony Codispoti, our Manager of Valuations, notes that among the thousands of appraisals, DSMA has performed over the past decade, there have indeed been several instances in which our results showed a 20-30% difference in value from what a dealer thought their dealership was worth. Such a difference, whether higher or lower than expected, can paint a clearer picture of what your fiscal future will look like.

Don’t underestimate the power of a balance sheet

Thanks to the rising inflation rates, a clear and precise balance-sheet of your business is crucial when negotiating. Indeed, dealership transactions can be quite complex, and the current economic climate (inflation, brink of recession, etc.) unfortunately further complicates negotiations. This is why a dealer in expansion-mode should know their business inside and out. A balance sheet is your best asset when approaching investors and financial institutions in order to accomplish your next acquisition goal. In the same breath, a dealer wishing to sell will equally be much better equipped to deal with potential buyers when knowing the exact net worth of their business.

Proactive + prepared = peace of mind

You don’t need to wait for a crash in the industry to act. By conducting a regular valuation of your dealership, you are being proactive. Such preparedness shows that you are ahead of the curve. According to Étienne Demeules, our Director of Finance, proper knowledge of your dealership’s accurate value will help you deal with various industry crises…or better yet, prevent them. And you know who loves to see that? Financial partners.

Prepare for the unexpected

Although grim topics, they are important to cover as well: when faced with a separation, a divorce, or even death, dealers or their teams often find themselves completely rushed and in no state to evaluate their business. These unexpected events can occur at any time on a personal level and can greatly affect the day-to-day operations of your dealership. If this happens, having an accurate assessment of your business can help you maneuver these challenging times and protect your estate in the event of your death.

Maximizing your dealership’s value

Lastly, you can’t grow your dealership without knowing its true value. At DSMA, we have the certified staff and sophisticated tools to accurately value all vehicle dealerships, regardless of their market or location. We use QUOTUS, a confidential and secure digital platform we’ve developed internally over the past few years, which allows us to evaluate a dealership in every respect – with the most precise data on the market. It is the most reliable automotive market intelligence in North America which allows you to maximize the value of your dealership. This tool benefits not only automotive dealers, but everyone in the motorcycle, heavy truck, agriculture, marine, and heavy vehicle industries.

At DSMA, our team of financial experts can appraise your dealership in just a few business days, giving you an accurate representation of your business’s value on the market. So we ask you again: what are you waiting for?

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