Through our Dealers Do Good campaign, AIADA is recognizing dealers for the positive impact they have in the communities they serve. If you’re a dealer doing good, let us know here, tag us on Facebook, LinkedIn, or X, or join the conversation with the #DealersDoGood hashtag.
Hanania Automotive Group made a large donation Hubbard House, a local organization dedicated to providing critical services to survivors of domestic violence in our community. Throughout the holiday season, they collected toys for children, non-perishable foods, and personal hygiene products to support the families and individuals who need them most. Click here to view a social media post.
Dealership Construction Projects Booming in Automotive Retail World
Rotating dealership projects like musical chairs help keep business flowing for Jim Ellis Automotive Group stores during new-build and renovation projects, which have cost the group an estimated $200 million since 2018. The family-owned auto retailer in Georgia expects about two more years of construction for its builds, upgrades and remodels. Manufacturer requirements drove some of the projects and others were by choice, said Wes Ellis, CEO. “It’s all just part of maintaining that reputation, representing the manufacturers as best as we can,” Ellis told Automotive News. Dealership construction projects for public and private auto retailers seem to pop up weekly across the country, as industry experts say the increased renovation and new builds for luxury, import and domestic stores stem from a few simple triggers: buy-sells, manufacturer requirements and business needs. Erin Kerrigan, managing director of dealership sell-side advisory firm Kerrigan Advisors, said the pricey dealership construction trend also may help fuel more consolidation as dealers choose to sell instead of completing the projects. “Especially for many that are at a retirement age, they are instead deciding to sell their business rather than spend millions of dollars conforming their facilities to the latest and greatest image,” Kerrigan said. Click here for the full story.
Competition for Supply in 2025 Leaves Little Room to Shirk on Used-Car Acquisitions, Dealers Say
Used-vehicle sales efficiency in 2025 hinges on the dealership service drive and searching for optimal inventory in not one but across an array of channels, U.S. franchised dealers told Automotive News. James Mason, used-car manager at Steven Toyota of Harrisonburg, Va., said his dealership widened its search to supplement used-vehicle inventory after realizing vehicles traded in by customers were no longer enough.Part of the issue is Toyota’s new-vehicle allocations remain anemic, Mason said. As a result, the dealership sells fewer new vehicles for which a consumer can trade in a used vehicle, he said.“We’re not in a position right now where we can rely on new-car trades, particularly for our [certified pre-owned],” Mason told Automotive News at Used Car Week in November. “We’ve had to expand … the way we think about vehicle acquisitions.”Franchised dealership managers who spoke with Automotive News just ahead of the new year said they expect used-vehicle demand to be relatively stable in 2025. Wholesale vehicle prices should be less prone to sudden month-over-month changes compared with the last few years as well, according to a forecast Cox Automotive released in January.Click here for the full story.
What to Know About the E.V. Tax Credit That Trump Might Repeal
Sales of electric vehicles have been rising steadily over the past few years, in part because of a federal tax credit of up to $7,500 that makes buying such cars and trucks more affordable. But understanding which cars it applies to and under what circumstances can be confusing. And all of those rules could change drastically under the incoming Trump administration; President-elect Donald J. Trump and Republicans have promised to repeal or scale back the incentives. According to The New York Times, the tax credit was designed to bring the cost of buying or leasing electric vehicles closer to the cost of comparable gasoline models, helping to address climate change. The rules governing the credit are also meant to push automakers to produce those vehicles and their batteries in the United States and reduce the industry’s reliance on China for critical components.The policy has had an effect. Several automakers have increased domestic manufacturing, and sales are up 7.3 percent from 2023 — to 1.3 million vehicles, according to Cox Automotive. Click here to learn about how the credits work, and how they might change.
New-Vehicle Prices Hit Near-Record Highs as Luxury And EV Sales Surge
According to the latest data from Cox Automotive’s Kelley Blue Book, the average new-vehicle prices continued to climb for the fourth consecutive month, with the average almost reaching a historical all-time high from December 2022. Typically, the average transaction price (ATP) for a new vehicle peaks in December, when higher-priced models from luxury brands tend to sell well. However, the new-vehicle ATP in December was unexpected, landing at $49,740, an increase of 1.3 percent year-over-year and 1.5 percent compared to November 2024, reports CBT News.Cox Automotive Executive Analyst Erin Keating highlighted that December saw an unprecedented surge in sales volume and prices. A combination of post-election relief, lower interest rates, and increased consumer confidence played a prominent role in dictating consumer behavior.The average incentive package for new vehicles remained essentially unchanged from November, landing at an average of $3,958 or 8 percent of ATP. However, it was 44 percent higher compared to December 2023, primarily driven by the recovery from inventory shortages. Volkswagen, Ram, and Nissan offered the most significant incentives among all automakers, offering discounts of over 13 percent of ATP. Click here for the full story.
AIADA Affinity Partner Happenings at 2025 NADA Convention
AIADA’s Member Benefits Program is one of the most valuable services AIADA provides to its members. AIADA partners with best-in-class companies to provide members with exclusive values on the goods and services they need to succeed in a competitive business environment. While you’re in New Orleans, make sure to check out AIADA’s Affinity Partners. Click here for a quick reference guide on where to find them at NADA 2025!
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