Digest

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

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