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- 😱 Inventory Overload, FTC Rulings, and Cybersecurity Nightmares
😱 Inventory Overload, FTC Rulings, and Cybersecurity Nightmares
The Dealer's Edge is the unfair advantage newsletter of high performing dealerships - consumed in 15 minutes or less, delivered monthly and powered by Autocorp.ai
Welcome back to The Dealer's Edge! February brought major shifts in the automotive landscape that you need to know about. From overflowing inventory lots to new cybersecurity threats targeting dealerships, we've packed this edition with insights to keep you ahead of the competition.
Fun fact: the average car salesperson walks about 8 miles per day on the lot—you're basically getting paid to stay fit! So grab your coffee, take a quick break from the showroom floor, and dive into February's biggest stories that will help you drive results this month.
The Dealers Edge is now available in Audio format - Listen to the new audio experience below for faster and easier consumption
Rising Inventory Levels: The Return of the Buyer's Market
In a significant shift from recent years, vehicle inventory levels have rebounded dramatically heading into February. After years of tight supply and seller advantage, the pendulum is swinging back toward a buyer's market, creating both challenges and opportunities for dealerships nationwide.
Key Points:
Inventory Surge: U.S. new vehicle inventory has jumped to approximately 2.92 million units, a 14.2% increase year-over-year.
Extended Supply Timeline: Days' supply of new cars has ballooned to roughly 96 days on average, well above the traditional 60-day benchmark.
Brand Disparities: While Stellantis (Jeep at 128 days, Dodge 133 days) and Ford struggle with overstocked lots, Japanese automakers like Toyota and Lexus maintain lean inventories (22-40 days' supply).
Price Pressure: The buildup of unsold cars is beginning to push prices down – January's average new listing was about $48,637, down 2.5% from December.
Implications for Dealerships:
Aging Inventory Management: Prioritize moving 2024 models through targeted promotions and President's Day sales before spring demand picks up.
Strategic Pricing: With used prices leveling off, now's the time to advertise aggressive pricing on used inventory to attract bargain hunters.
Negotiation Leverage: Identify models with above-average days' supply and be more flexible in negotiations – these units can tolerate bigger discounts.
Allocation Planning: Align your incoming inventory mix with local demand trends to prevent another glut if market conditions change.
⚖️ FTC’s Dealer Rule on HoldThe controversial FTC CARS Rule (which would have required upfront “full price” disclosures) was blocked by a court ruling—but expect more transparency regulations ahead. | 📢 EV Growth Continues—SlowlyWhile EV sales grew 20% YoY, they’re below market projections. Automakers are adjusting production to balance demand vs. inventory levels. |
💻 Cybersecurity Alert: Dealers Under Attack
Auto retailers have become prime targets for cybercriminals looking to steal customer data or hold dealership operations hostage. The statistics are alarming:
Average ransomware downtime: 16 days
Average ransom payment: $228,000
Customer loyalty impact: 84% of customers would consider taking their business elsewhere after a data breach at a dealership
Most common entry point: Phishing emails targeting dealership employees (36% of breaches)
Urgent Security Action Items:
Implement multi-factor authentication for all systems
Conduct regular phishing training for all staff
Create an incident response plan for cyber emergencies
Review your cyber insurance coverage
🚀 Sales Hack: Leverage Inventory Overload
Turn your overstocked position into a competitive advantage. Create an "Inventory Blowout" campaign highlighting the vast selection available to customers. Use messaging like "Find exactly what you want – no compromises, no waiting!"
📢 Marketing Hack: Video Sells Cars
Over 75% of auto shoppers say online videos directly influenced their purchase decision. Equip your sales team to record quick walk around videos of new arrivals and send personalized video messages to leads.
🔧 Tech Hack: Cybersecurity Essentials
Implement a password manager across your dealership to eliminate weak or repeated passwords, and enable automatic security updates on all devices. These simple steps dramatically reduce your vulnerability to common attacks.
Did You Know?
The average new car now contains more than 100 million lines of code. That's more programming than a fighter jet or the first spacecraft that landed on the moon!
Meme of the Month:
That feeling when a customer says they're 'just looking' but you've already seen them on your lot three weekends in a row.
The Ultimate Car Sales Playbook
Ready to crush your sales goals in 2025? Our Ultimate Car Sales Playbook gives you battle-tested strategies for converting more leads, closing more deals, and boosting your bottom line—even in a challenging market. From handling common objections to mastering the art of the follow-up, this comprehensive guide has everything your team needs to outsell the competition.
EV Charging Summit & Expo 2025
Date: March 25–27, 2025
Location: Westgate Las Vegas Resort & Casino – Las Vegas, Nevada, USA
A charging infrastructure-focused conference and expo, billed as the only event strictly dedicated to EV charging technology and infrastructure . It offers 65+ sessions covering topics like financing, installation, fleet electrification, grid integration, and ROI for EV charging projects . The expansive expo hall hosts around 240 exhibitors showcasing real-world charging solutions and innovations.
SAE WCX 2025 (World Congress Experience)
Date: April 8–10, 2025
Location: Huntington Place (Cobo Center) – Detroit, Michigan, USA
An engineering-focused automotive conference and trade show hosted by SAE International. WCX is a premier gathering for the mobility industry, where automotive engineers, OEMs, suppliers, and researchers convene to share the latest innovations . The 2025 program features 200+ technical sessions covering cutting-edge topics such as electric vehicle technology, autonomous driving, hydrogen fuel, advanced materials, emissions and safety standards.
DealerPoint 2025
Date: April 9–11, 2025
Location: Hyatt Regency Grand Cypress Resort – Orlando, Florida, USA
A dealership-focused networking event organized by Digital Dealer . DealerPoint is a VIP, invite-only experience curated for automotive dealership executives and auto retail solution providers. It centers on private 1:1 meetings and boardroom presentations designed to foster long-term partnerships between dealers and vendors.
New York International Auto Show 2025
Date: April 18–27, 2025
Location: Jacob K. Javits Convention Center – New York City, New York, USA
One of the most significant annual auto shows in North America, showcasing new model debuts and concept cars from major automakers. The NY Auto Show has media preview days where manufacturers unveil new production and concept vehicles to the press . During the public days, attendees can see hundreds of latest cars, trucks, SUVs, and EVs from around the world.
ASOTU CON 2025
Date: May 13–16, 2025
Location: Baltimore, Maryland, USA
A dynamic automotive retail conference presented by ASOTU (Automotive State of the Union). This event brings together forward-thinking dealership leaders, vendors, and industry innovators for three days of high-energy collaboration and learning . ASOTU CON features impactful keynotes, interactive workshops, and panels that delve into the future of automotive retail – from emerging dealership technologies and sales processes to improving customer experience and culture in the dealership .
March is Fraud Prevention Month – Could Your Dealership Be Next?
Meet Shawn Cyr of G&M Auto Sales—a dealership owner who learned firsthand how fraudsters use fake IDs, stolen keys, and deception to drive off with vehicles before anyone realizes what happened. One moment, the deal seemed legit. The next, the car was gone.
Fraudsters Are Getting Smarter – So Should Your Dealership
Dealership fraud isn’t just a risk—it’s an industry-wide epidemic. Identity theft, fake financing applications, and title scams are more advanced than ever, costing businesses millions in losses every year.
That’s why we built AVA™ ID—a real-time fraud prevention tool that instantly verifies identities, flags suspicious transactions, and stops fraud before it happens.
✅ Instant ID Verification – No more fake IDs slipping through the cracks
✅ AI-Powered Fraud Detection – Identify high-risk buyers in seconds
✅ Seamless Integration – Works within your dealership workflow
From the blog
Automotive Fraud Prevention: Best Practices for Dealerships
Automotive fraud is a serious concern for car dealerships, posing significant financial risks and potentially damaging their reputation. From stolen identities to false vehicle information, fraudsters employ a range of tactics to exploit vulnerabilities in dealership operations. For dealerships, safeguarding against these threats isn’t just about protecting their bottom line—it's about building and preserving customer trust. With fraud cases on the rise, adopting effective strategies to prevent fraud is more critical than ever.
🏁 Final Lap: Your February Wrap-Up
Thanks for cruising through this month’s newsletter! If you’ve got questions, feedback, or just want to share your favourite meme, just hit the button below—we’d love to hear from you.
Until next time,
The Dealers Edge and Autocorp.ai Team
P.S. Share this with your team—insights are better when shared! 🚗✨