Benstock on Online Parts, Steenbergh on Affordability, Steinberg on Dropped Data | Daily Dealer Live
About this episode
The episode features a lively discussion from the pre-NADA conference, highlighting key industry trends such as AI adoption in dealerships and the shifting dynamics in the new car market, where higher-income buyers dominate. Guests include Brian Benstock, who shares insights on the 'Year of the Horse' as a time for growth and strategic alignment in the automotive sector. The episode also touches on dealership profitability, the impact of tariffs, and the challenges of affordability for middle-income buyers. Excitement builds for the upcoming NADA show with various events and discussions planned.
Honda
"...those like Honda that have invested in the United States..."
Honda is a car company that makes many different types of vehicles. They are popular in the U.S. because their cars are known to be dependable and save on gas.
Honda is a well-known automotive manufacturer that produces a variety of vehicles, including cars, motorcycles, and power equipment. The company has a significant presence in the United States and is known for its reliable and fuel-efficient vehicles.
Japanese automakers
"...the Japanese automakers had a pretty good monopoly there. And then the Koreans came in and took a piece of that."
Japanese automakers are car companies from Japan, like Toyota and Honda. They are famous for making reliable and well-built cars.
Japanese automakers refer to car manufacturers based in Japan, known for their reliability, innovation, and quality. Brands like Toyota, Honda, and Nissan have dominated global markets for decades.
Korean automakers
"...And then the Koreans came in and took a piece of that. Now, a very short period of time..."
Korean automakers are car companies from South Korea, like Hyundai and Kia. They are known for making affordable cars with good features.
Korean automakers refer to car manufacturers based in South Korea, such as Hyundai and Kia. They have gained popularity for offering affordable vehicles with good features and warranties.
Chinese automakers
"...the Chinese have come in and taken a significant portion of that market by driving low-priced, excellent vehicles."
Chinese automakers are car companies from China. They are becoming popular for making low-priced cars that are often good quality.
Chinese automakers are car manufacturers based in China, which have rapidly expanded their presence in global markets by producing low-cost vehicles with competitive features. Brands like Geely and BYD are examples.
BYD
"And so if the inevitable happens and companies like BYD come into the United States, I'm wildly impressed with the quality of those vehicles."
BYD is a car company from China that makes electric cars. They are known for their advanced technology and eco-friendly approach.
BYD is a Chinese automotive manufacturer known for producing electric vehicles and batteries. The company has gained recognition for its innovative technology and commitment to sustainability.
BMW
"And genuine competitors, I saw the BMW equivalents that I thought were nicer than the BMW."
BMW is a well-known car brand from Germany that makes luxury vehicles. They are famous for their high-quality and performance cars.
BMW is a German luxury vehicle manufacturer known for its performance-oriented cars and motorcycles. The brand is recognized for its engineering excellence and sporty driving dynamics.
Ford
"Mr. Farley over at Ford talked about some of the Asian vehicles that he purchased, the Chinese vehicles specifically, and that he thought those were some of the best cars he's ever driven."
Ford is a well-known car company from the United States that makes different types of vehicles, including trucks and cars.
Ford is an American automotive manufacturer known for producing a wide range of vehicles, including trucks, SUVs, and cars. It has a long history in the automotive industry and is recognized for models like the Ford F-150 and Ford Mustang.
residuals
"...and that Ford's residuals just couldn't justify that trade cycle management."
Residuals are the expected value of a car after a few years. It's how much the car is thought to be worth when you want to sell or trade it in later.
Residuals refer to the estimated value of a vehicle at the end of a lease or after a certain period of ownership. This value is important for determining lease payments and resale value.
OEMs
"What's your call for OEMs?"
OEMs are the original companies that make cars. They create the vehicles and the parts that go into them.
OEM stands for Original Equipment Manufacturer, which refers to companies that produce parts and equipment that may be marketed by another manufacturer. In the automotive context, OEMs are the car manufacturers themselves.
trade cycle management
"...to take a serious look at trade cycle management. I think it's been an NDAB recommendation every year."
Trade cycle management is about how car companies manage the buying and selling of cars over time. It helps keep customers coming back to buy new cars from the same brand.
Trade cycle management refers to the strategies manufacturers use to manage the lifecycle of their vehicles, including how they handle trade-ins and the resale of used cars. This helps maintain customer loyalty and keeps them within the brand.
Acura
"...more specifically, Honda and Acura, take a good look at a comprehensive trade cycle management program."
Acura is Honda's luxury brand, making fancier cars that often have more features and better performance than regular Honda models.
Acura is the luxury vehicle division of Honda, known for its premium cars that offer advanced technology and performance.
Ferrari
"Ford to Ferrari, everybody."
Ferrari is a luxury car brand from Italy that makes very fast and expensive sports cars.
Ferrari is an Italian luxury sports car manufacturer famous for its high-performance vehicles and success in motorsport, particularly Formula 1.
NADA
"Are we going to see you at NADA at some point?"
NADA is a group that represents car dealers in the U.S. and holds a big meeting every year for people in the car business.
NADA stands for the National Automobile Dealers Association, which represents the interests of automobile dealers in the United States and hosts an annual convention for industry professionals.
extended service contract
"...you'd better have an extended service contract. I think an interesting conversation we have this week at NADA as we all get together is,..."
An extended service contract is like an extra warranty for your car that helps pay for repairs after the original warranty runs out. It's useful if you plan to keep your car for a long time.
An extended service contract is a type of warranty that covers certain repairs and services for a vehicle beyond the manufacturer's warranty period. It can provide peace of mind for car owners, especially for long-term loans.
lease
"...when Brian was talking about the affordability of leases,..."
Leasing a car means you pay to use it for a few years instead of buying it. At the end, you can either buy the car or give it back.
A lease is a financing option that allows individuals to use a vehicle for a specified period while making monthly payments. At the end of the lease term, the individual usually has the option to purchase the vehicle or return it.
Honda Accord
"...when your standard Accord lease across the country, you were that, what, $175 a month?"
The Honda Accord is a well-known car that many people like because it's reliable and comfortable. It's a good choice for families and commuters.
The Honda Accord is a popular midsize sedan known for its reliability, spacious interior, and good fuel efficiency. It has been a best-seller in the United States for many years, often praised for its value and comfort.
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