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August 20.2025
3 Minutes Read

How Expanded Steel and Aluminum Tariffs Affect Auto Industry Costs

Colorful cars showcasing design in a car lot; steel and aluminum tariffs auto industry context.

The Impact of Steel and Aluminum Tariffs on the Auto Industry

On August 19, 2025, the U.S. government announced an expansion of tariffs on steel and aluminum imports, leading to an immediate ripple effect across various sectors, particularly in the automotive industry. This move has raised concerns among car dealership owners, principals, and general managers as they brace for potential price hikes and supply chain disruptions.

Price Hikes: What to Expect

The expansion of tariffs means that car manufacturers will face higher costs for raw materials. This can lead to an increase in vehicle prices, which is a significant concern for consumers and dealership owners alike. According to industry analysts, affected manufacturers might pass these costs onto consumers, potentially shrinking the market for new cars. For dealerships, this makes it crucial to monitor pricing strategies carefully.

The Staggering Impact on Repair Costs

Additionally, the costs for auto body repair shops are likely to rise as well. Materials needed for car body repair, such as steel and aluminum, will become more expensive due to the tariffs. As a result, car body repair quotes may average 5-10% higher than before. This increase can deter customers from pursuing repairs, opting instead to forgo necessary services, which can lead to higher long-term replacement costs.

What it Means for Car Dealerships

Dealerships should prepare for potential drops in customer foot traffic as higher vehicle prices and repair costs may lead to a shift in consumer behavior. Owners may want to consider adjusting their inventory and pricing models to remain competitive. Strategies, such as offering financing options or bundling repairs and sales, could motivate consumers to continue purchasing new and used vehicles.

Exploring Alternatives

Given the fluctuating costs, dealership principals should explore auto dent repair methods that can be more cost-effective. Innovations in tools for auto body repair and the potential for online repairs might offer a solution to minimize repair costs for customers. Local car body shops could also consider engaging in community outreach to highlight their competitive pricing and specialized services to attract business.

Future Trends: A New Era for Auto Dealerships

As the auto industry grapples with these evolving tariffs, it's more important than ever for dealerships to stay informed about current events and trends. Emphasizing transparency around pricing and providing valuable support to consumers can establish trust and loyalty in a challenging market environment.

Be Proactive

Rather than waiting for these changes to unfold, dealership owners should take proactive measures. Adjusting marketing strategies, utilizing tools for car body repair effectively, and providing competitive car dent repair cost assessments can all play a vital role in maintaining profitability and consumer retention in the years to come.

Staying ahead of economic shifts like tariff expansion will be critical. By fostering a response plan and actively adapting their business models, dealership owners can remain resilient in an increasingly volatile landscape.

In response to the recent changes, slight adjustments now can save your dealership significant financial troubles in the future. Take the necessary steps to safeguard your operations and strengthen your positioning in the auto market.

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08.22.2025

Doug Ostermann's New Role: Impact on Stellantis Financial Services Explained

Update Stellantis' Leadership Shakeup: A Broader Vision for Financial Services Stellantis has announced a significant staffing change within its ranks, appointing CFO Doug Ostermann to also lead Stellantis Financial Services. This strategic move reflects an ongoing trend in the automotive industry, where financial operations are increasingly integrated with core business functions. Ostermann's dual role is an attempt to create a more cohesive approach to the financial and operational aspects of the company, signaling a push for innovation and improved consumer engagement. Why Leadership Integration Matters in Automotive The merger of financial services leadership with operational leadership isn't merely a reshuffle; it's a strategic response to a rapidly evolving market landscape. In an era where customer expectations dictate corporations' adaptive strategies, having a unified leadership under Ostermann could streamline decision-making processes. As vehicle sales fluctuate and the financing landscape shifts, a leader well-versed in both operations and finance may hold the key to balancing the interests of car dealerships and consumers alike. How This Affects Car Dealership Owners For car dealership owners, understanding the ramifications of this key appointment is crucial. As finance becomes tightly interwoven with dealership operations, the insights that Ostermann brings could mean smarter financing options for potentially lower auto dent repair costs and innovative marketing strategies reflecting consumer behavior. Potential Changes in Auto Financing Dynamics By combining the expertise of financial services with day-to-day operations, Stellantis can provide more customized financing options to car buyers. Dealerships could start seeing improvements in auto body repair estimates, competitive loan rates, and perhaps even tools to bolster their own sales strategy when financing used cars under $10,000. What This Means for Consumer Trust The automotive sector often faces trust issues when dealing with financial dealings. Transparency in financial services is more critical than ever. By placing leadership in the hands of someone familiar with operational challenges, consumers might benefit from enhanced customer service and more straightforward financing processes. When dealing with high-stakes purchases like a car, consumers need to feel secure and supported; this leadership change could pivot Stellantis in that direction. Looking Ahead: Predictions for Stellantis As we look forward, it will be interesting to observe how Ostermann’s leadership style reshapes Stellantis. The fusion of finance and operations could lead to innovative financing solutions, improving the online car body repair quotes process and redefining customer experience in auto sales and services. As the market evolves, businesses need to adapt faster, and integrated leadership is poised to enhance their agility and responsiveness to consumer demands. As the changes unfold, car dealerships should keep a close eye on how these strategic adjustments at Stellantis will affect their operations, sales, and ultimately, customer satisfaction.

08.21.2025

Using Storytelling to Sell Vehicle Service Contracts: The Modern Day Picasso

Update Turning Customers into Heroes Through StorytellingImagine yourself as a car dealership owner, overseeing your bustling showroom, filled with customers eager to find their dream vehicle. Among these customers is a woman who is inching her way home in a traffic jam, frightened and stranded after her car has broken down. Such a scenario is not just a possibility; it’s a reality your customers might face at any moment. This is where the importance of vehicle service contracts (VSC) comes into sharp focus, akin to the brush strokes of a modern-day Picasso painting a vivid picture of hope and security. Selling a VSC isn’t merely about detailing coverage; it’s about crafting an emotional narrative that reassures customers and makes them feel seen.Creating Emotional Connections in the F&I OfficeEffective presentations in finance and insurance (F&I) offices transcend mere statistics. They breathe life into the numbers through relatable storytelling. For instance, consider a customer’s experience needing a rental car due to a sudden breakdown while on a vacation with family. By walking them through that emotional crisis and contrasting it with the peace of mind provided by a VSC, you foster a connection that spurs action. The deal goes beyond a transaction; it transforms into an opportunity for shared human experience.Visual Aids: Transforming Concepts into RealityOne potent technique to enhance this narrative is the use of visual aids. By presenting physical materials like brochures or graphics during your discussions, customers can grasp and retain information better. Let’s reflect: if they can hold something tangible while you explain coverage details, the abstract transforms into concrete reality. The objective is not only to inform but inspire confidence and help customers visualize how the VSC fits into their lives for enhanced peace of mind.Are You the Customer's Advocate?As an F&I manager, it’s crucial to embody the role of an educator, adviser, and advocate. When customers sense that you genuinely care about their well-being, they become more receptive and engaged. By positioning them as heroes in their narratives—equipped with tools for safeguarding their investments—your customers will likely embrace the VSC as a vital piece of their automotive journey.Seizing the Opportunity: Why Now Matters in Auto Sales TrainingFocusing on automated online courses or car training day events can greatly enrich your team’s skills in delivering these narratives. The automotive industry continues to evolve, emphasizing the need for sophisticated auto sales training that encompasses emotional intelligence and narrative strength. With the rising trends of digital business cars, incorporating these methods into your dealership’s strategy might not just be beneficial—it could be vital for securing customer loyalty.So, if you find customers hesitant to finalize a purchase, shift your strategy from information delivery to painting an emotional picture. Every interaction should leave customers with a clear vision of the comfort and reassurance that comes with a VSC. And who knows, that one vivid moment might transform their hesitation into a committed ‘yes.’To learn more about how to implement these strategies, don't hesitate to reach out! For more info call: (860) 707-9125. For more info call: (860) 707-9125

08.21.2025

Auto Insurers Lose Loyals: Understanding the Shift in Consumer Behavior

Update Customer Loyalty in Auto Insurance is on the Decline Recent trends in the auto insurance market reveal a significant shift in consumer behavior. According to a survey by TransUnion, an alarming 42% of auto insurance shoppers have switched their insurers in the past year. Notably, a quarter of these individuals left companies they had been loyal to for over six years. This movement is particularly prevalent among baby boomers and Generation X, indicating that even long-time customers are no longer viewing their insurers as permanent fixtures. Understanding the Insurance Shopping Surge The auto insurance shopping surge of 18% in the second quarter—twice the increase seen in home insurance—demonstrates a growing eagerness among consumers to find better deals. With rising insurance premiums, the need for cost-effective solutions is more pressing than ever. As Patrick Foy, senior director at TransUnion, notes, while some consumers have secured lower premiums, the trend toward shopping for cheaper property insurance might push additional individuals to reassess their auto coverage as well. Opportunity for Insurers: Building Customer Loyalty This shift presents an opportunity for auto insurers to rethink their customer retention strategies. Insurers can enhance loyalty by proactively engaging policyholders, especially when they consider alternative quotes or significant life changes, like purchasing a new vehicle. By reaching out during these pivotal moments, insurers can foster a deeper connection with clients and encourage them to stick with their current policy. Bundled Policies: The Key to Savings? Another factor influencing customer loyalty is the appeal of bundled insurance policies. Many consumers may shop for more affordable auto insurance options in tandem with home insurance due to rising property insurance premiums. This bundling can often lead to significant savings, presenting a unique opportunity for auto insurers to market themselves effectively in conjunction with other insurance offerings. The Future of Auto Insurance: Predictions and Trends As the auto insurance landscape continues to evolve, experts suggest it is likely that both auto and property insurance shopping will persist. Insurers who adapt to this new dynamic—by focusing on customer engagement and innovative bundling strategies—will be better positioned to maintain their market share despite the increasing price sensitivity of consumers. Get Ahead in the Auto Sales Game For car dealership owners and general managers, staying informed about these trends is crucial. Understanding the shifting dynamics of customer loyalty and shopping behavior can equip you with insights to effectively service and retain your clientele. In addition, exploring offerings such as automotive training centers or automotive classes online can help bolster your team's knowledge, enhancing their ability to connect with customers and provide informed recommendations. For more info, call: (860) 707-9125 For more info call: (860) 707-9125

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