Biggest threat in auto retail, according to Sandy Schwartz
Dealers battle pressure on used margins
Saturday March 24, 2018
Article Highlights
- Dealers consider margin compression the biggest threat in auto retail, said Sandy Schwartz, president of Cox Automotive.
- The used-vehicle department is where many dealers feel margin compression the most, he said. Dealers depend on used-vehicle profits to offset thinner new-vehicle margins, but now used-vehicle margins are under pressure, too, Schwartz said.
- "We always recognized the used-car department as a last bastion" of profitability, but that's no longer a safe assumption, he said Friday at the Cox Automotive press conference.
Dealers consider margin compression the biggest threat in auto retail, said Sandy Schwartz, president of Cox Automotive.
The used-vehicle department is where many dealers feel margin compression the most, he said. Dealers depend on used-vehicle profits to offset thinner new-vehicle margins, but now used-vehicle margins are under pressure, too, Schwartz said.
“We always recognized the used-car department as a last bastion” of profitability, but that’s no longer a safe assumption, he said Friday at the Cox Automotive press conference.