EFG Companies sees numerous consumer-focused revenue opportunities for retail automotive and powersports dealers, lenders, and agents in 2025. Despite economic challenges including vehicle affordability, inflation, and interest rates, a strong focus on a value-driven, needs-based approach, supported by training and strategic differentiation, will deliver positive returns. For more information, visit https://bit.ly/4aehDVw
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EFG Companies sees numerous consumer-focused revenue opportunities for retail automotive and powersports dealers, lenders, and agents in 2025. Despite economic challenges including vehicle affordability, inflation, and interest rates, a strong focus on a value-driven, needs-based approach, supported by training and strategic differentiation, will deliver positive returns. (Graphic: Business Wire)
The most recent Cox Automotive Auto Market Report, provides some hopeful key indicators for the year. Consumer sentiment has reached a 3.5-year high, attributed to stronger economic conditions and positive post-election outlooks. Retail vehicle sales for both new and used cars have risen significantly in the quarter, up 11 percent versus 2023. Finally, auto loan rates continue their downward trend as lenders have become more aggressive, offering low-interest financing deals.
“We have seen a notable shift to a buyer-focused market, with increased dealer inventory driving consumer purchasing power,” said Jennifer Rappaport, President and Chief Executive Officer of EFG Companies. “As a result, operating in the 2024 status quo will not yield a profitable outcome. Dealers, lenders, and agents must adopt a consumer-focused mindset while differentiating themselves throughout the buying process to make more in 2025. Training to hone buyer-first skill sets and a continued focus on compliance will become critical. We can prove this model works!”
More fundamentals plus more differentiation
To achieve 2025 revenue goals, EFG recommends that retail automotive dealer principals invest in fundamental customer-focused training and differentiate themselves across all digital platforms with creative incentives that ease economic concerns.
“We are in a buyer’s market now, and dealers must adopt a consultative selling approach if they want to close the deal,” said Eric Fifield, Chief Revenue Officer with EFG Companies. “Invest in training and processes that drive traffic, clearly communicate value, and make the buying decision easier. Your competition is not just down the street; it’s across the country. Don’t just sell a unit - build a relationship that begins with the first encounter, continues throughout the sale and to the service drive, and includes the right products that deliver a guaranteed net increase in your PRU.”
Visit https://bit.ly/4gHAmv1for more 2025 guidance from Mr. Fifield.
Value of selling more
As with retail automotive, the powersports and marine industries are beginning to see inventory improvement coupled with improved consumer confidence. While sales and service revenue continues to be down across the board, a recent J.D. Power Q3 Market Insight report revealed that sales of sports bikes ticked up in the quarter and are tracking 5.4 percent higher year-over-year. Well-stocked dealers who train their teams to adopt a consumer-first approach will see revenue-generating opportunities in 2025. EFG recommends that powersports dealers focus on making more out of every transaction, embracing the changing digital sales environment, and easing the path to purchase with value-oriented products that support the life and use of the vehicle.
Visit https://bit.ly/3PsGiw5 for a detailed forecast from Adam Ouart, Senior Vice President, Agency Services and Powersports.
More upside for auto lenders
While auto lending in the credit union space continued to decline in 2024 according to the Experian State of the Automotive Finance Market report, many in the financial industry see tremendous upside for 2025. Stabilized dealer inventory combined with easing economic challenges and improving consumer sentiment provide opportunities for credit union leaders to increase loan portfolios. Emphasizing a loan that offers more member value through favorable interest rates and affordable protection products can be an attractive motivator.
EFG encourages credit unions to adopt the same member-focused perspective, leaning into the already strong member-oriented principles that set these lending institutions apart from other lending institutions.
Visit https://bit.ly/422QJOl for a detailed forecast from Brien Joyce, Executive Vice President, Specialty Services.
About EFG Companies
For nearly 50 years, EFG Companies has provided consumer protection programs for vehicles and residences across seven market channels. The company’s strategic intent is to build sustainable market differentiation and profitability for its clients and partners, including dealers, lenders, manufacturers, independent marketers, and agents. EFG’s award-winning engagement model is built upon the belief that the company serves as an extension of its clients’ management teams, providing ongoing F&I development, training, product development, compliance, and nationally recognized product administration with an ASE-certified claims team. Learn more about EFG at: www.efgcompanies.com
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