With interest rates at their highest points in more than decade and continuing inflation, questions about the economy and a possible recession continue.
After the Federal Reserve issued its 10th straight rate hike in May of 25 basis points, interest rates hit their highest point since 2007. Even with the efforts of the Federal Reserve, inflation remained around 5 percent in April, down just slightly from March. The target rate for inflation remains at 2 percent.
In the used vehicle market, affordability continues to plague consumers and dealers. Wholesale values started the year increasing sharply, but are starting to slide. Inventory remains limited between 40 and 50 days, according to vAuto and BlackBook.
Used vehicle sales lagged in April, down 1.7 percent from April 2022, according to Cox Automotive.
How to successfully get through the current economic conditions will be the focus of the education session “Maximize Your Entry into the Economic Recovery” during the NIADA Accelerate 2023 Convention and Expo at the Wynn in Las Vegas June 19-22. The session led by Will Chandler of Kinetic Advantage is 2:45 p.m. Thursday, June 22.
“In this session, we’ll talk about the current economic environment, what a recession looks like and the impacts it might have on your business, and ultimately how to position your business for success as the market shifts and changes in the months ahead,” Chandler said.
Chandler pointed out this market has been more complicated that previous pre-recession periods. Even economists and Federal Reserve Chairman Jerome Powell have struggled to get a full grasp on the fate of the economy, with labor markets remaining tight in spite of the challenges of high interest rates and inflation. Unemployment remains at 3.5 percent.
“Normally the used car market is pretty forgiving for independent car dealers. Over the last six to eight months what you found is this market has not been as forgiving,” Chandler said.
He hopes to leave dealers encouraged and with tips to thrive during this time of uncertainty.
“Not only do we want to help you focus on survival but also maximizing your profitability,” Chandler said. “We’ll focus on ways to evaluate the health of your business in this session. From there we’ll talk about ways you can create strategies to improve your health and ultimately how to measure the success of the strategies and plans that your put in place.”
The session will be one of 77 education breakout sessions during the largest convention for the independent dealer.
Registration for the NIADA Accelerate 2023 Convention and Expo continues at niada.com/convention/.