Dealer News – December 2024

As trillions of dollars shift from one generation to the next, younger generations are redefining wealth by prioritizing experiences over possessions. This trend, known as the "YOLO economy," challenges traditional financial values, sparking fresh perspectives on how we balance security with enjoyment.

The holiday season can be financially tough for buy here, pay here (BHPH) customers, making it essential for dealership staff to balance empathy with accountability. By understanding customers' challenges and offering support, dealerships can strengthen trust and build lasting relationships that benefit both the business and the lives of their clients.

Following a recent cybersecurity breach, most auto dealerships are now less willing to rely on their Dealer Management Systems (DMS) for handling sales and finance processes, citing concerns over cybersecurity vulnerabilities. Although dealerships are more focused on protecting customer data, many still lack comprehensive vendor security assessments and feel only moderately prepared for future breaches.

Here’s our monthly article on selected legal developments we think might interest the auto sales, finance, and leasing world. This month, the developments involve the Consumer Financial Protection Bureau (CFPB), Federal Reserve Board, and Federal Trade Commission. As usual, our article features the “Case(s) of the Month” and our “Compliance Tip.”

Disaster planning is essential for business continuity, especially in scenarios like cyber attacks or provider outages, where normal operations are disrupted while life continues as usual. This article highlights the importance of preparing tailored response strategies for specific threats, enabling businesses to stay resilient when faced with unexpected challenges.

Dealership owners and managers often struggle with turnover and performance issues due to a lack of structured, consistent training and oversight, leading to a need for daily coaching and clear metrics to reinforce goals and build habits.