Pub. 19 2020-2021 Issue 1

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S 13 new jersey auto retailer W W W . N J C A R . O R G When you look back at the last few decades, what are your thoughts on the current economic times for the deal- ers? How do they compare to other “hard” times, like the Great Recession? The current situation is undoubted- ly “unprecedented,” but I think as difficult as these times are, they are very different from past recessionary periods. During the Great Recession, people weren’t buying cars because they didn’t have the money. The government rolled out some programs to help. I remember “Cash for Clunk- ers,” which helped some, but those years were very different from the COVID-19 pandemmic. Right now, for the most part, people have money. They may not be work- ing, but unemployment benefits are available, and I truly believe when we can safely resume full business oper- ations, people will be ready to engage again and buy consumer goods. During the early days of the COVID-19 pandemic, service depart- ments remained open here in New Jersey. Subsequently, dealers were al- lowed to sell cars over the internet and telephone with delivery either through the service lane or at a customer’s home or business. Subsequently, con- sumers could make an appointment to meet in dealership showrooms, if they wanted ( with appropriate person protec- tion and social distancing ). Currently, showrooms are open, limited to 50% of regular capacity — all with con- tinued personal protection and social distancing. Sales and service have cer- tainly seen a big downswing, but there are some things in place that will help. I think, for the most part, people need and want to buy cars. Interest rates are low. I definitely think there are some profound differences between now and the Great Recession, but there’s a silver lining in our current cloud. What are your thoughts about the auto industry and spe- cifically COVID-19? How do you think this will change the industry? Well, I think any concerns about ride-sharing services impacting auto- motive sales have been pushed way down the road. After this, I think people will want to own ( or lease ) their vehicles, autonomous or not, for the foreseeable future. People adapt, dealers more than most, I think. People have been stuck at home for months, and I think they have gotten used to making purchase decisions online — even for larger purchases, like a car or truck — and they are more comfortable doing so. I believe that the dealers will continue to adapt to sell cars in the way their customers want to buy cars. There will be more cleaning, more distanc- ing when we meet face-to-face, face masks for the foreseeable future, and possibly a continued use of appoint- ments. But here’s the thing, if a customer is going to make an appoint- ment and they show up, I suspect they will be serious about buying or leasing a vehicle. If you were a car dealer today, what would you do? Historically, car dealers have been the greatest retailers in the world. They have sold cars through wars, depressions, recessions, during periods when interest rates that have been off the charts, and now this. If I were a car dealer today, I would take necessary precautions to keep my dealership “clean and safe” for both my employees and my custom- ers. I would let my customers know ( through signage and handout material ) exactly what steps my dealership is taking to clean my facility and their vehicles. Above all, I would stay on course and sell cars. The market isn’t gone; it’s just delayed. What are your thoughts about recovery? How long will it take and what will it look like? I think that recovery will happen sooner rather than later. I suspect that we will be living with this virus for a while, but people are resilient. I think the demand for housing in the suburbs will be strong. People have been stuck inside in smaller apartments in met- ropolitan areas, and I suspect at least some of them will be rethinking their lives, and move back to the suburbs to purchase a home or rent an apart- ment. Above all, people will continue to buy and lease vehicles. BOB MAY  continued on page 14