Burned out?

You might be shocked to find how discomfort is affecting dealerships in a variety of ways as the business deals with the fallout from being fed up with the federal government.


Despite the generally shared belief that inflation is undesirable and should be reduced, many people are now reaching—or have already reached—a point of dissatisfaction with the Fed’s ongoing rate increases and the purposeful harm they are causing to some economic sectors.


JEREMIAH SHELTON, vice president of training and development at APCO Holdings and a guest commentator for Automotive News, issues the following warning and urges dealerships to put it at the top of their list of priorities when trying to absorb all the Fed is cramming into the buying process.



Rank your objections


Sales, finance, and insurance employees are having to respond to inquiries concerning interest rates for the first time in a very long time. For clients who have called banks in advance of the sale and negotiated rates with them, salespeople need to be properly trained to respond to these inquiries.

To ensure they are secure on payment quotes, the desk will need to update their “desk rate” more frequently when penciling deals. Finance needs to be ready to manage cash and conversions at banks and credit unions and to defend interest rates.


Value selling.” Each dealer must decide if they will compete on price or value, to put it simply. Despite consumers’ need for the lowest price in a down economy, the value will prevail. Until you realize that “value” also includes prepaid maintenance, cosmetic coverage, and warranty terms, it seems contradictory.

And frighteningly, Shelton discovers that they are only the first two of the nine courses being offered to dealers today. He views the additional factors that must be taken into account as consisting of the following, but not exclusively.


F&I remuneration now as opposed to later.

Front-end gross is rapidly and deeply decreasing.

The fast decline in inflated profit per car.

Customers closely monitor their spending.

Prices for used cars are fluctuating wildly.

a sales strategy and value proposition to entice wary buyers.

Effects on fixed operations of fewer automobiles sold in 2020 and 2021 (e.g., reduced warranty work).

It is painfully evident that dealers will need all of the assistance they can get to prevent getting fed up with all of this stuff piling up on their plates.


Hopefully, the ebb of this tide will closely follow the flow, but in the interim, dealers must step up their efforts to assist customers in better-digesting everything that is being forced down their throats. Economic factors are starting to show the signs of slowing that the Fed presumably needs to see in order to curtail their efforts to slow the economy through rate hikes.


We at SimpSocial have a daily close touch with thousands of consumers, giving us a unique understanding of their mentality and the capacity to assist them overcome their anxieties and creating trust.


Let SimpSocial assist you in more successfully communicating to your leads that your dealership is equipped to help them get the most value for their car-buying dollar, regardless of the current economic circumstances, so that you don’t have to endure the discomfort of having your clients over Fed.

No leads were lost. reduced overhead.
Swipe to setup a demo
Swipe to learn more