Page 19 - BusinessWest April 1, 2024

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Drive Time
Area Auto Dealers Optimistic About Year Ahead
BY JOSEPH BEDNAR
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“We’re still doing all right. There still seems to be plenty of traffic and activity out there,” said Rob Pion, general manager of Bob Pion Buick GMC in Chicopee. “I would say there was a period last year where people really started to get rate-con- scious, but that has passed to some extent. We’ve seen rates start to come down as well as people just kind of accepting it. I mean, it’s not our rate; the Fed sets the rate.”
Despite those concerns, Pion added, “2023 was a great
year for us. GMC’s got a couple new products and redesigns coming out, and Buick’s got a number of redesigns coming out. We’re going to have almost a completely new set of mod- els by this time next year. So there’s a lot happening. The used-car market has somewhat stabilized, too, and think that’s going to continue to stabilize throughout ’24. But right now, the public still seems to be out there buying and looking for vehicles.”
Especially on the new-car side, “everything’s kind of back to where things were,” said Mike Filomeno, general manager of Marcotte Ford. “The inventories are really good; products are coming in quickly. Prices are still up there, though, based on supply and demand.”
Manufacturers recognize the dual crunch of rising costs and rising interest rates, however, said Mike Marcotte, presi- dent of the dealership. “When interest rates rose last year, Ford started putting programs on the new vehicles again, like the 1.9% or lower interest rates that help with the financial changes going on. The market is definitely starting to react to that.”
Pion has seen similar moves. “Throughout the year — and it’s still continuing — GM has had some aggressive financing rates out there. We’re not seeing the big rebates of years past, but depending on credit approvals, we’ve seen 3.9%, 2.9%, they even went down to 0.9% for a little bit for 36 months. So there has been some help from the factory on that side of
“We’re not seeing the big rebates
of years past, but depending on credit approvals, we’ve seen 3.9%, 2.9%, they even went down to 0.9% for a little bit for 36 months.”
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uto dealers have seen it all over the past few years, from soaring costs for vehicles, parts, and labor to inventory shortages to a rapid rise in interest rates.
But they’ve adjusted and adapted, they say — and so have consumers.
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Rob Pion says the customer experience has become more important in a competitive marketplace for dealers.