DiscoverCar Dealership Guy Podcast#88 CDG Market Update: Why the car business looks like 2008, Selling cars on TikTok Live, Payment shock hits car buyers | Jessica Caldwell, Head of Insights at Edmunds and Zac Kinch, General Manager of Rohrman Toyota
#88 CDG Market Update: Why the car business looks like 2008, Selling cars on TikTok Live, Payment shock hits car buyers | Jessica Caldwell, Head of Insights at Edmunds and Zac Kinch, General Manager of Rohrman Toyota

#88 CDG Market Update: Why the car business looks like 2008, Selling cars on TikTok Live, Payment shock hits car buyers | Jessica Caldwell, Head of Insights at Edmunds and Zac Kinch, General Manager of Rohrman Toyota

Update: 2024-05-30
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This episode of the Car Dealership Guy Market Update podcast features a conversation with Jessica Caldwell, Head of Insights at Edmunds, and Zach Kinch, General Manager of Bob Roman Toyota. They discuss the current state of the car market, focusing on affordability, consumer trends, and the rise of hybrid vehicles. The episode begins with a discussion about the impact of social media on car buying decisions, with Zach highlighting his own experience using social media to connect with customers and build brand awareness. Jessica shares insights from a recent Edmunds survey that confirms the growing influence of social media on car buying decisions. The conversation then shifts to the current market landscape, with Jessica noting the return of incentives on new vehicles and the downward pressure on used car prices. Zach shares his firsthand experience with the challenges of managing customer expectations in a market where lease payments are rising significantly. The episode also explores the growing popularity of hybrid vehicles, with both Jessica and Zach noting the strong demand for hybrid models and the challenges of keeping up with supply. They discuss the reasons behind the continued popularity of hybrids, including consumer comfort with the technology and the perception that hybrids are a more environmentally friendly option than traditional gasoline-powered vehicles. The episode concludes with a discussion about the future of the car market, with both Jessica and Zach expressing optimism about the industry's ability to adapt to changing consumer preferences and technological advancements.

Outlines

00:00:00
Introduction

This Chapter introduces the Car Dealership Guy Market Update podcast and its hosts, Jessica Caldwell from Edmunds and Zach Kinch from Bob Roman Toyota. They discuss the current state of the car market and the growing influence of social media on car buying decisions.

00:01:41
Zach Kinch's Social Media and Podcast Journey

This Chapter delves into Zach Kinch's journey into the world of social media and podcasting. He explains his motivations for using these platforms to connect with customers and build brand awareness. He also discusses the challenges and opportunities of using social media in the automotive industry.

00:06:55
Market Update and Affordability

This Chapter focuses on the current state of the car market, with Jessica Caldwell providing a market update. She discusses the return of incentives on new vehicles, the downward pressure on used car prices, and the challenges of affordability for consumers. Zach shares his firsthand experience with the impact of rising lease payments on customer expectations.

00:12:14
Consumer Trends and Purchase Regret

This Chapter explores consumer trends in the car market, with Jessica discussing the phenomenon of purchase regret after the recession. She explains how this trend manifests in data and how it impacts consumer behavior. Zach shares his own experience with customers returning leases and facing higher payments.

00:24:07
Edmunds Survey on Car Shoppers

This Chapter focuses on a recent Edmunds survey that explores consumer sentiment and shopping behavior. Jessica discusses the key findings of the survey, including the growing influence of social media on car buying decisions and the importance of safety and fuel economy to consumers.

00:49:47
Social Media's Impact on Car Buying

This Chapter delves deeper into the findings of the Edmunds survey, focusing on the impact of social media on car buying decisions. Jessica and Zach discuss the role of YouTube, Instagram, TikTok, and Reddit in influencing consumer choices. They also explore the implications of these findings for dealerships and the automotive industry as a whole.

01:02:04
The Future of the Car Market

This Chapter concludes the episode with a discussion about the future of the car market. Jessica and Zach share their thoughts on the industry's ability to adapt to changing consumer preferences and technological advancements. They also discuss the growing importance of transparency and speed in the car buying process.

Keywords

Car Dealership Guy Market Update
A monthly podcast that discusses the current state of the car market with automotive industry experts and dealers. The podcast provides insights on consumer trends, pricing, inventory, and other relevant topics.

Edmunds
A leading automotive website that provides car reviews, pricing information, and consumer advice. Edmunds also offers a variety of tools and resources for car buyers and sellers.

Bob Roman Toyota
A Toyota dealership located in the Chicago area. The dealership is known for its commitment to customer service and its innovative approach to marketing and sales.

Social Media
A collection of online platforms that allow users to create and share content, connect with others, and build communities. Social media has become increasingly important in the automotive industry, as dealerships use these platforms to reach potential customers, build brand awareness, and generate leads.

Hybrid Vehicles
Vehicles that combine a gasoline engine with an electric motor to improve fuel efficiency and reduce emissions. Hybrid vehicles have become increasingly popular in recent years, as consumers seek more fuel-efficient and environmentally friendly options.

Affordability
The ability of consumers to purchase goods and services, including cars, at a price that they can afford. Affordability has become a major concern in the car market, as rising interest rates and inflation have made it more difficult for consumers to finance vehicle purchases.

Interest Rates
The cost of borrowing money, expressed as a percentage of the principal amount. Interest rates have been rising in recent years, making it more expensive for consumers to finance car purchases. This has led to a decline in lease penetration and an increase in the demand for used vehicles.

Consumer Trends
The patterns of behavior and preferences of consumers in the car market. Consumer trends are constantly evolving, influenced by factors such as economic conditions, technological advancements, and social attitudes. Dealerships need to stay informed about consumer trends to effectively market their products and services.

Inventory
The amount of cars that a dealership has available for sale. Inventory management is a critical aspect of dealership operations, as dealerships need to balance the need to have enough cars on hand to meet customer demand with the cost of holding inventory.

TikTok
A social media platform that allows users to create and share short videos. TikTok has become increasingly popular in the automotive industry, as dealerships use the platform to reach younger audiences, build brand awareness, and generate leads.

Q&A

  • How has social media impacted car buying decisions?

    Social media has become a significant influencer in car buying decisions, with platforms like YouTube, Instagram, TikTok, and Reddit playing a crucial role in shaping consumer preferences and influencing their purchase choices.

  • What are the current trends in the car market regarding affordability?

    Affordability is a major concern in the car market, with rising interest rates and inflation making it more difficult for consumers to finance vehicle purchases. This has led to a decline in lease penetration and an increase in the demand for used vehicles.

  • What are the challenges and opportunities of using social media in the automotive industry?

    Social media presents both challenges and opportunities for dealerships. While it can be a powerful tool for reaching potential customers, building brand awareness, and generating leads, it also requires a significant investment of time and resources to manage effectively.

  • Why are hybrid vehicles becoming increasingly popular?

    Hybrid vehicles are gaining popularity due to their fuel efficiency, environmental friendliness, and consumer comfort with the technology. They offer a middle ground between traditional gasoline-powered vehicles and fully electric vehicles.

  • How are dealerships adapting to the changing consumer landscape?

    Dealerships are adapting to the changing consumer landscape by embracing new technologies, focusing on transparency, and prioritizing speed in the car buying process. They are also using social media to connect with customers and build brand awareness.

  • What are the key factors that consumers consider when buying a car?

    Consumers prioritize safety, fuel economy, performance, comfort, design, technology, and driver assistance features when buying a car. These factors reflect a pragmatic approach to car buying, with safety and fuel economy being the most important considerations.

  • How are dealerships managing their inventory in the current market?

    Dealerships are using data analytics to manage their inventory, focusing on turn times, price points, and marketing strategies. They are also using social media platforms like TikTok to connect with customers and showcase their inventory.

  • What are the challenges and opportunities of selling used EVs?

    The used EV market presents both challenges and opportunities for dealerships. While there are great deals to be had, the market is volatile and subject to price fluctuations, making it difficult for dealerships to predict profitability.

  • What is the future of the car market?

    The future of the car market is likely to be shaped by technological advancements, changing consumer preferences, and the growing importance of transparency and speed in the car buying process. Hybrid and electric vehicles are expected to play a larger role in the market, and dealerships will need to adapt to these changes to remain competitive.

  • How are dealerships using social media to connect with customers?

    Dealerships are using social media platforms like TikTok to connect with customers, showcase their inventory, and build brand awareness. They are also using these platforms to engage with customers, answer questions, and provide valuable information.

Show Notes

Welcome to the third episode of The Car Dealership Guy Market Update—Brought to you by Edmunds.


This segment is a monthly discussion with automotive industry experts and dealers about where our car market is today -- and where it may headed.


From insider-only dealership insights to macroeconomic trends, my goal is to make you smarter and more informed about the state of our car market in less than an hour.

 

Let's get into it!


This episode of the Car Dealership Guy Podcast is brought to you by:


Edmunds - Don't miss out on this opportunity to elevate your dealership's visibility and sales performance. You can sign up for Premier today - https://edmu.in/4bXcEIr


Car Dealership Guy News - The #1 source for concise and unbiased car industry news. Stay informed with the most relevant and interesting stories by visiting https://cdg.news


Interested in advertising with Car Dealership Guy? Drop us a line here


Interested in being considered as a guest on the podcast? Add your name here


Topics:

(00:00:00 ) - Intro

(00:02:28 ) - Why is a GM at a Toyota dealership getting into the content game?

(00:07:27 ) - Market updates & and dealership reports

(00:22:24 ) - Toyota’s day's supply incentives

(00:24:16 ) - Car buyers are coming back to the market

(00:28:49 ) - The state of hybrid market share 

(00:34:26 ) - What are you seeing in the used EV market?

(00:37:51 ) - Do you see a staunch anti-EV customer base?

(00:39:23 ) - The state of consumer health and interest rates

(00:45:32 ) - Zac’s inventory strategy

(00:47:23 ) - TikTok Live

(00:49:46 ) - Edmund’s online shopping survey

(01:02:00 ) - What trends are you excited about for the rest of 2024?


Check out Edmunds here - https://edmu.in/4bXcEIr


Checkout Rohrman Toyota here - https://www.rohrmantoyota.com/


Check out the website for more (https://dealershipguy.com) and follow me on X @GuyDealership! (https://x.com/guydealership)


This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

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#88 CDG Market Update: Why the car business looks like 2008, Selling cars on TikTok Live, Payment shock hits car buyers | Jessica Caldwell, Head of Insights at Edmunds and Zac Kinch, General Manager of Rohrman Toyota

#88 CDG Market Update: Why the car business looks like 2008, Selling cars on TikTok Live, Payment shock hits car buyers | Jessica Caldwell, Head of Insights at Edmunds and Zac Kinch, General Manager of Rohrman Toyota

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