Digital Dealer - May 2019 - 9
CHART 1
Total Number of Completed Auto
Retail Transactions, 2014-2018
Source: The Banks Report and Kerrigan Advisors Analysis
Note: A transaction is defined as a single seller and single buyer and may include multiple franchises and dealerships.
CHART 2
Buy/Sell Market Share of Toyota, Honda,
and Subaru Franchises, 2016-2018
Source: The Banks Report and Kerrigan Advisors Analysis
ability to improve performance in the face of industry
headwinds. Therefore, they
are less comfortable projecting improved performance or
paying a multiple on pro forma earnings. Rather, buyers
value franchises based on a
seller's current performance,
giving little credit to upside
potential or prior year's
higher earnings. As such, in
today's market, it can prove
very difficult to receive value
for turn-arounds and underperforming dealerships.
Likewise, franchises
representing OEMs that
rely heavily on stair-step
programs are also becoming
increasingly difficult to monetize in today's marketplace.
While never preferred by
buyers, these volume-based
business models are even
more challenged when
month-to-month new vehicle
sales volumes are more
volatile or declining. The
dealership model is complex
enough without the challenges of fluctuating stair-step
programs. Trying to meld
pricing, marketing, and
ad spend with fluctuating
monthly stair-step programs
is often a step too far for
most buyers in a slowing
sales environment. Thus,
we are seeing noticeable
falloff in buyers' willingness
to purchase these more
challenging franchises.
Given buyers' flight to
quality, we point specifically
to the strength of the franchise business model and
a dealership's geographic
market as being the two major drivers of value in today's
buy/sell marketplace.
Continued on pg. 10
D I G I TA L D E A L E R . C O M
M AY 2 0 1 9
9
http://www.DIGITALDEALER.COM
Digital Dealer - May 2019
Table of Contents for the Digital Edition of Digital Dealer - May 2019
Digital Dealer - May 2019
Contents
A Message from the Show Director
Data Doesn’t Lie: Improve Your Fixed Ops Department and Yield Higher ROI for Your Dealership
Buyers Pickier in Today’s Buy/Sell Market
The Greatest Threat for Survival Could Be You
The Tales of a Parts Pro...
Developing a Revenue Center
Top 5 Reasons Dealers Need to Engage Their State Dealer Association
Interview with Doug Wilson
Broadcast Advertising Back to the Future!
Demystifying Digital Marketing: Using Metrics to Assess Effectiveness
10 Traits of an Extraordinary Social Media Manager
The Whole-Dealership Data Layer: The Time Has Come to Unify Your Data and Measure ROI
Digital Dealer 26 Rewind
Inspire Your Guest to Invest
The 4 Laws of Influential Conversations –Part 2
Million-Dollar Question: Can You Sell Cars?
Digital Dealer - May 2019 - Digital Dealer - May 2019
Digital Dealer - May 2019 - Cover2
Digital Dealer - May 2019 - 1
Digital Dealer - May 2019 - Contents
Digital Dealer - May 2019 - 3
Digital Dealer - May 2019 - A Message from the Show Director
Digital Dealer - May 2019 - 5
Digital Dealer - May 2019 - Data Doesn’t Lie: Improve Your Fixed Ops Department and Yield Higher ROI for Your Dealership
Digital Dealer - May 2019 - 7
Digital Dealer - May 2019 - Buyers Pickier in Today’s Buy/Sell Market
Digital Dealer - May 2019 - 9
Digital Dealer - May 2019 - 10
Digital Dealer - May 2019 - 11
Digital Dealer - May 2019 - The Greatest Threat for Survival Could Be You
Digital Dealer - May 2019 - 13
Digital Dealer - May 2019 - 14
Digital Dealer - May 2019 - 15
Digital Dealer - May 2019 - The Tales of a Parts Pro...
Digital Dealer - May 2019 - 17
Digital Dealer - May 2019 - Developing a Revenue Center
Digital Dealer - May 2019 - 19
Digital Dealer - May 2019 - Top 5 Reasons Dealers Need to Engage Their State Dealer Association
Digital Dealer - May 2019 - 21
Digital Dealer - May 2019 - Interview with Doug Wilson
Digital Dealer - May 2019 - 23
Digital Dealer - May 2019 - 24
Digital Dealer - May 2019 - 25
Digital Dealer - May 2019 - 26
Digital Dealer - May 2019 - 27
Digital Dealer - May 2019 - Broadcast Advertising Back to the Future!
Digital Dealer - May 2019 - 29
Digital Dealer - May 2019 - Demystifying Digital Marketing: Using Metrics to Assess Effectiveness
Digital Dealer - May 2019 - 31
Digital Dealer - May 2019 - 32
Digital Dealer - May 2019 - 10 Traits of an Extraordinary Social Media Manager
Digital Dealer - May 2019 - 34
Digital Dealer - May 2019 - 35
Digital Dealer - May 2019 - The Whole-Dealership Data Layer: The Time Has Come to Unify Your Data and Measure ROI
Digital Dealer - May 2019 - 37
Digital Dealer - May 2019 - Digital Dealer 26 Rewind
Digital Dealer - May 2019 - 39
Digital Dealer - May 2019 - 40
Digital Dealer - May 2019 - 41
Digital Dealer - May 2019 - Inspire Your Guest to Invest
Digital Dealer - May 2019 - 43
Digital Dealer - May 2019 - The 4 Laws of Influential Conversations –Part 2
Digital Dealer - May 2019 - 45
Digital Dealer - May 2019 - Million-Dollar Question: Can You Sell Cars?
Digital Dealer - May 2019 - 47
Digital Dealer - May 2019 - 48
Digital Dealer - May 2019 - Cover3
Digital Dealer - May 2019 - Cover4
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