CHAIRMAN'S REPORT
Navigating the Windy Road Ahead
- Joe Chastang, HADA Chairman, Chastang Ford
As we find ourselves midway through 2023, it's time to take stock of where we stand in the ever-evolving automotive industry landscape. After a thunderous first quarter, the vehicle market in Houston appears to be finding its equilibrium, albeit with a few twists and turns along the way.
Total sales have continued to sizzle in the second quarter, driven by robust fleet sales. This positive momentum speaks to the resilience and adaptability of our industry. Our business remains strong despite facing challenges such as high-interest rates and the UAW strike. As the saying goes, "Tough times don't last; tough people do." Domestic brands may be feeling some unease, but strikes, like storms, eventually pass.
Change is a constant in our industry. Whether it's technological innovations, fluctuations in interest rates, inventory challenges, strikes, or economic downturns, we have weathered it all and emerged victorious. Dealership owners have an innate aptitude for adaptability, and we thrive in the face of adversity.
Having recently convened with dealers from across the state at a TADA board meeting, I was prepared for a sense of apprehension about the current state of the industry. However, the bigger picture reveals a mostly positive outlook among our peers. Change, after all, often breeds opportunity. Moreover, we've witnessed numerous dealerships changing hands at high prices, reaffirming that the dealership model remains profitable.
We, as dealers, are known for our optimism, but it's an optimism anchored in caution. The Lone Star State's population continues to surge, promising a new customer base for our businesses. This growth keeps our spirits high and our aspirations even higher.
In other encouraging news, it's heartening to see that young students are increasingly showing interest in the automotive industry. Enrollment in mechanic and repair trade programs surged by 11.5 percent from spring 2021 to 2022, according to the National Student Clearinghouse. This statistic only amplifies my enthusiasm for our upcoming student technician competition on October 13 at San Jacinto College. These ten local Houston high schools competing are the future employees of our dealerships, and their passion and dedication inspire confidence in our industry's future.
As we progress, I encourage you to explore the rest of our newsletter for information on upcoming scholarship applications, a remarkable milestone achieved by the Motorist Assistance Program, and exciting developments at the Houston Auto Show.
In conclusion, I remain passionate about the future of dealerships and the outstanding products each of us offers. In the words of the great Zig Ziglar, "You don't have to be great to start, but you have to start to be great." Let's continue to drive forward, embracing change and challenges with the same tenacity that has defined our industry for generations.
Thank you for your unwavering commitment and dedication to the Houston Automobile Dealers Association. Together, we will continue to thrive and shape the future of the automotive world..
Connect With Auto Buyers Through The Power Of Sports
Effectv has your ticket to reach sports enthusiasts who will be tuning in to all of the action all year long. Sports viewing is unmatched in its ability to offer you both broad and targeted reach.
In a 2022 Sports advertising campaign analysis by Effectv, The Sports Replay highlights that more than 82% of Comcast households watched sports on live TV.1 Additionally, streamed sports delivered more than 500 million impressions in 2022.2 The analysis also shows that the percentage of households reached by sports in each quarter was at least 82%, with Q1 and Q4 being the highest at 89%.3
This Fall, you can connect to Houston audiences through MLB (including the defending World Champion Houston Astros), NFL (with the Texans first-round draft pick, CJ Stroud), NCAA Football (including matchups with the Houston Cougars, Texas, Texas A&M, TCU and more), the NBA, and more!3
Did you know that audiences in the market for a new or used vehicle in Houston spent 81% of their time watching sports through cable?4 Sports on cable networks are viewed 4x more than sports on broadcast networks.4 And in Q4 2022, Houston auto intenders typically spent more than 26% of their time overall watching news and sports.5
Make the right play for your dealership with Effectv’s advertising offerings, which unite the prestige of TV with cutting-edge technology delivered across all screens. Our branding platform helps you score big by efficiently and effectively putting your message in front of in-market vehicle intenders across the entire Houston market or your primary market.
HADA Scholarship Application Opening November 17, 2023
The Houston Automobile Dealers Association (HADA) has awarded $148,000 in scholarships to 74 individuals who are pursuing secondary education. The scholarships, valued at $2,000 each, are awarded to dealership employees, their dependents, and students enrolled in the ASE program.
We are pleased to announce that the HADA Scholarship application process for 2024 will open on November 17, 2023, and will continue through February 16, 2024. These scholarships are available to dealership employees, their dependents, and ASE technician students entering secondary education.
ASSOCIATE MEMBER SPOTLIGHT
Drive Revenue Growth: Transform Your Dealership into a Finance Powerhouse!
Are you looking to supercharge your dealership’s revenue without any additional hassle? It’s time to explore adding a lucrative revenue stream without changing a thing about your dealership’s daily operations. It’s not only possible but also easily attainable by becoming your own finance company.
Generate a New Revenue Stream
It’s time to open up a new opportunity that could transform your business. By building a non-prime auto portfolio and taking control of financing, franchise car dealers can increase revenue significantly. Here’s the secret: becoming your own finance company. This innovative and strategic approach empowers you to finance more non-prime customers, sell more cars, and drive higher profits. And you keep your customer in your dealership’s ecosystem for life.
Learn from Industry Leaders
You may have heard about a recent acquisition where a large auto retailer purchased a finance company. What’s the buzz about? This savvy retailer is strategically merging their sales and financing efforts to keep the cash flow from customer payments in-house. The best part? You can also achieve the same success without the hefty price tag. No need to spend millions on acquisitions or build an expensive infrastructure.
Swiftly Establish Your Captive Finance Company
Believe it or not, in just a matter of days, you too can establish and develop your very own captive finance company. This game-changing move doesn’t disrupt day-to-day operations but rather complements your existing strengths of running a great dealership.
Benefits of becoming your own finance company:
- Diversified Revenue: Expand beyond car sales and servicing. Start profiting from financing deals.
- Expand Your Customer Reach: Connect to non-prime customers and optimize an untapped market. Additionally, nurture existing customer relationships to keep them engaged within your dealership’s ecosystem.
- Double Profitability: Earn sales and loan interest revenue, boosting your dealership’s bottom line.
- Cash Flow Control: Keep the cash flow from customer payments in-house, enhancing financial strength and stability.
- Seamless Integration: Integrate sales and financing efforts, without costly acquisitions and infrastructure development.
- Turnkey: Resources are available, providing the technology, guidance, tools, servicing, and capital to help you establish and manage your own finance company.
The time is now to take control of your dealership’s financial destiny. Be your own finance company and open new opportunities that will help you thrive in today’s competitive and challenging automotive market.
Since 2017, Agora Data has been helping car dealers access resources to help build a non-prime auto portfolio. We’re available to provide turnkey support for you to become your own captive finance company and a finance powerhouse. For more information, contact Patrick Hansen at Patrick.Hansen@agoradata.com, 201-310-1312.
Houston Auto Market News
Q2-2023 Total Sales Were Up Compared to Q1-2023 & Q2 2022
After a roaring first quarter in 2023, the vehicle market in Houston looks to be settling...somewhat. Total sales are still red hot for Q2, buoyed by strong fleet sales. Average Retail Price has cooled a bit after unprecedented price increases, which is good for consumers. While we make our way through more 90-degree days, vehicle sales show no sign of cooling!
InfoNation provides this quarterly report to HADA members, however their capabilities surpass this report and can be customized to any information you need. Contact Ted or Dan to learn more about what InfoNation can provide you. Call 281-937-9187.
Review the full report here.
UPCOMING HADA EVENTS
STUDENT TECHNICIAN COMPETITION
Oct 13, 2023 - San Jacinto College
We are thrilled to announce the upcoming Student Technician Competition in partnership with the ASE Foundation and eight local dealerships. The competition at San Jacinto College on October 13, 2023, features ten high school teams vying to advance to the state-level round in Dallas.
The competition is a platform for young and talented automotive technicians to showcase their skills and knowledge. It's an opportunity to inspire and nurture the next generation of automotive professionals.
Schools and their dealership sponsors are:
- Pasadena CTE High / Monument Chevrolet
- Westbury HS / Classic Chevrolet
- Marshall Center for Advanced Careers / Sterling Mccall Nissan
- James Reese Career & Technical Center / Sterling Mccall Nissan
- Fort Bend / Mike Calvert Toyota
- Clear Springs / McRee Ford
- North Shore High School / Community Toyota
- Klein Collins HS / Planet Ford
- Klein Oak / Planet Ford
- Hensler Career Center / Keating Toyota
Stay tuned for updates on the competition and mark your calendars for this exciting event that celebrates the future of the automotive industry. If you'd like information on participating in the event next year, email RoShelle Salinas; rsalinas@houstoncardealers.com.
Houston Motorist Assistance Program Achieves Milestone
The Houston Motorist Assistance Program has reached a significant milestone by completing over 1 million rescues! This program, designed to assist motorists in times of need, has made a remarkable impact on our community.
MAP originated in 1986 thanks to the collaboration of HADA, Walter Wainwright, and Sheriff Johnny Klevenhagen, who were eager to offer free roadside assistance to Houston motorists. The program has grown to a fulltime service with more than 20 specially equipped vehicles, run by the Harris County Sheriff's Department, METRO, the Texas Department of Transportation, the City of Houston, Houston TranStar and HADA.
We will host a special media event in November to commemorate this achievement. Stay tuned for more details on this event, and join us in celebrating the success of the Houston Motorist Assistance Program. It's a testament to our commitment to the safety and well-being of motorists in our city.
Have a story idea or news to share? Let us know about it: info@houstoncardealers.com.
HADA Fall Luncheon
OCTOBER 5TH AT VIC & ANTHONY'S WITH PRESENTATION FROM SENATOR JOHN WHITMIRE
Houston Auto Show 2024 and the Houston Buyer's Guide
The Houston Auto Show is now producing our own Buyer’s Guide Magazine, previously produced by the Houston Chronicle, featured prominently at the event in January 2024.
By advertising in this Buyer's Guide, you can expect:
- To Reach an Eager Audience: Our magazine will reach 65,000 auto enthusiasts and potential car buyers attending the Houston AutoBoative Show. These attendees come to the event with a genuine interest in purchasing a vehicle. About 15,000 copies of the magazine will be distributed at the event and copies can be provided to your for your dealerships.
- Audience has a High Purchase Intent: Over 60% of the attendees at the Houston AutoBoative Show have expressed their intent to purchase a car within the next 6 months. Your advertisement will be in front of a captive audience actively seeking information on their next vehicle purchase.
- Engaging Editorial: When you advertise with us, you're not just buying ad space but investing in comprehensive editorial coverage about your brand and vehicles. Our professional writers will craft compelling articles highlighting your vehicles' unique features and benefits, providing attendees with valuable insights about your brand.
- Dealership Visibility: Your ad will not only be seen within the pages of our magazine but also strategically placed the Auto Show website and social media pages. This multi-channel approach guarantees that a wide range will see your message of attendees.
If you're interested in hearing more about the Houston Buyer's Guide, contact RoShelle Salinas, rsalinas@houstoncardealers.com or call 281-980-3434.
TADA Chairman's Workshops
Please join TADA Chairman Charlie Gilchrist and members of the TADA staff, including, Darren Whitehurst, Karen Phillips, Rob Braziel and Kate McGrath for the 2023 edition of the TADA Workshops
TADA leadership will discuss with you current legal, legislative and regulatory issues.
Click Here for the Registration Form.
Thank you to our directory advertisers. If you haven't received your HADA Member Directory contact Tibby Teykl: tteykl@houstoncardealers.com.