February 27, 2024
With the NADA 2024 convention now in the rearview mirror, it’s time to digest this year’s show. First, I want to thank NADA for putting on such a great show this year. It really felt like the energy was back post-COVID; everyone was excited to be in Vegas, and we at Polly made some great connections across the automotive industry. A lot of work can certainly be done virtually, but there’s just nothing like the energy you feel from engaging with everyone face-to-face.
And engage we did! We met with a lot of dealers at the show, and we asked them what they felt like were the major themes not just for the show, but for the year.
Here’s What We Heard:
- AI. Not surprisingly, this was a big theme for dealers at this year’s conference. There were lots of vendors at NADA with AI solutions for dealers and several workshops to help dealers better understand how to capitalize on the technology. 2024 will be an exciting year as companies across all industries learn how to use AI to capture more customers, increase efficiencies, and boost sales.
- EVs. A bit of a fraught topic for dealers, and an important one to address. OEMs are making them. Dealers will have to sell them. This year’s NADA, we saw a lot of conversations around how to make these appealing to customers and move them off the lot quicker. 2024 looks like it will be a year of making the best of what’s being produced.
- Customer Affordability and Dealer Profitability. These two are inextricably tied. With new car inventory expected to reach pre-pandemic levels this year, dealers know that the high profit margins of a low supply era are a thing of the past. And layered on to that are concerns around inflation and high interest rates. Customers are paying more than ever before when they finance a vehicle, leaving less budget for add-ons and F&I products. A lot of dealers we spoke with mentioned getting back to the basics, tightening up processes, looking for efficiencies, and perhaps most importantly, seeking out new profit centers to offset these lower margins.
Perhaps one of the reasons Polly’s conversations were so productive this year was because we help solve for #3. An embedded auto insurance solution has the potential to increase customer budgets, while also providing the dealership with a recurring income opportunity. It was gratifying to see that the majority of dealers we spoke with had heard of embedded auto insurance and were ready to discuss how it could fit into their process. They recognized that it was a win for them and for their customers. And, even better, it costs nothing (we joked with a lot of dealers that we were likely the only vendor at NADA who was not asking for their money, but who intended to pay them!).
At Polly, we’re looking to 2024 with a great deal of optimism and enthusiasm. We know that the solution we offer is one that has benefits for all, and the timing is right for dealers to get onboard. If you’re ready to start earning on insurance, sign up for your free consultation today and we’ll show you how easy it is. If you sign up for a demo before March 1st, we’ll even send you a $50 gift card (after all, why wait to start receiving payments from Polly, right?).