Thanks Sy...

I regularly read industry blogs, publications, and all sorts of media

about this industry - as do many of my customers, I suspect. As Sy Syms

said, “an educated consumer is my best customer”.

Today’s car market and all the services associated with it are either

being taken over by AI, or “leave a message, I’ll get back to you”.

Neither are acceptable in the world of Steve Goldberg @ Automotive

Solutions, who agrees with Sy Syms. So let me begin this email blast by

educating my customers with a few lessons. By the way, it’s the opinion

of me and of my mentor, Mr. Kendall, that this business is, and will

always be, about the ability to have not only good-news but also not-

so-good-news conversations with customers.

So, let’s begin lesson #1, Used car loans and interest rates. If you

haven’t heard, the industry is beginning to write loans for up to 100

months. That’s right, buy a car and have a loan for 100 months. Not on

my watch, for obvious reasons.

Lesson # 2, Pricing. It is doing nothing but rising. My crystal ball says this

trend will continue for the foreseeable future. Why, even with the

reduction in interest rates, are vehicles (new and used) still so

expensive? As with most other sectors of our economy, expenses for

both the manufacturers and dealerships continue to rise. With no one

absorbing those costs, the increased expenses are being passed along

to the consumer and discounting and incentives to stimulate sales have

all but disappeared.

Lesson #3, Where have all the inexpensive vehicles gone?

Manufacturers don’t make cars anymore. Look around. SUV’s and

trucks, traditionally the more costly vehicle options, rule the road.

More than one industry publication compares vehicle pricing below the

30K price point to that of dinosaurs.

For my final lesson of today, #4, the return of the buy or lease question.

The answer becomes clearer with each and every passing day. Drum

rolls please… more… more... It’s lease. Remember being told that a

vehicle depreciates about $10,000 when driven off the lot – even

before the ink dries on the loan papers? That number has close to

doubled. Used car values have plummeted, and unless you’re prepared

to hold that car for 10 years, don’t pour money into that depreciating

asset. Hold your money, pay for a lease, drive the newest and greatest,

and when your tired of all the recalls, software updates, and technology

advances, lease another car.

No, AI involved, there never will be... I spoke with my client, Bill, this

week for 20 minutes. He may want to buy a car. I have sold him and

his family a few cars back in the day at Infiniti. We caught up a little,

and he is once again an educated consumer. Thanks, Sy.