Stop Being Dealers: How Dealers Can Survive Coronavirus Threat and Thrive

Many auto dealerships are about to go out of business. Auto sales are down. Dealer staffs are fearful of going back to work. Car Buyers can’t or are afraid to go to a dealership. Dealership show rooms are closed. Online sales are some salvation. So called deals are available, being offered, and accepted even a loss for the dealer.

People are car shopping from home online. Dealers offer and claim deals with prices below 3% to 5% below invoice. Long term loan periods are being offered. Dealer cash flow is critical for survival. The sale, merger, or acquisition of dealership are forthcoming. Most dealers think they can make it for up to 3 months.

Abandon the current automotive dealership business model. Transition from being a dealer to become a Total Transportation Management Center. Take emphasis off selling cars to helping managing every aspect of the ownership and usage of a car (vehicle). Dealers should not be known as dealers anymore even though the necessity of making deals will be central for most dealerships during this crisis. This new business model will make “dealers” the Asset Manager of the 2 to as many as 10 vehicles owned, leased, and operated by many consumers and small businesses.

1,400 dealers in California alone– 16,700 total in U.S. AutoNation laid off 7,000 employees.

Dealers are desperate to generate revenue” — Consultant Sheldon Sandler
“We are trying to master online auto sales”—-Allen Moznett, GM, Toyota of Orange


“Virus puts car buyers in driver’s seat of deals” – LA Times article, April 16, 2020

Total Transportation Management Strategy for Existing Auto Dealers ( See Link for How & Why)


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