Revealed: The Missing Metrics Needed To Fight Margin Compression

by Dealertrack on November 20, 2019

Sell more, make more. The formula for dealership profits used to be pretty straightforward. Managers that focused on increasing sales volumes could logically expect to see higher profits. Times have changed. According to a recent report from the National Automobile Dealers Association (NADA), for the first time in a decade dealerships on average...

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Maximizing Titling Efficiency to Boost Inventory Turn

by Dealertrack on June 13, 2019

Economic trends indicate that plateauing SAAR for new vehicles is likely to continue, which means that used vehicle sales will be particularly important. This isn’t surprising news, but it reinforces the importance for dealers of focusing on areas to improve efficiency. One improvement dealerships can make is in back office technology...

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Drive to Success: The Growing Gap of Margin Compression

by Lindsay Lauck on October 1, 2018

Have a leaky faucet? There’s an easy fix for that. Fighting margin compression? Well, that’s another story. The problem of combating margin compression at your auto dealership is more like closing an ever-present gap that continues to grow. Selling more cars, having the best sales team on the block, and beating the competition might be within y...

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Solving the Mystery of Margin Compression

by Dealertrack on August 22, 2018

Margin compression is a known problem in the auto sales industry. It has been for years. And yet, there’s a mystery surrounding the problem that most dealerships can’t crack. Too often the knee-jerk reaction is to work harder and sell more cars. But as sales go up, profits go down. And the mystery deepens. So, what can be done to reverse the tr...

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Drive to Success: Challenge Margin Compression

by Dealertrack on July 16, 2018

Margin compression in auto sales is a problem that’s been building for years. And, unfortunately, it’s not going away anytime soon. But there are several things dealerships can do to mitigate the negative effects of margin compression, including being smarter about used vehicle sales, focusing on alternative sour...

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Fight Back Against Margin Compression

by Dealertrack on June 20, 2018

Margin compression is taking a toll on the auto retail industry. Dealerships across the country are reporting slimming margins, with some even experiencing negative overall gross profits. And the problem isn’t going away anytime soon. Yet no matter the cause, dealerships can either choose to ignore margin compressi...

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