Four top leaders at EFG Companies acknowledged economic challenges, including vehicle affordability, inflation, and interest rates, made for some rough sledding for automotive financing and retailing in 2024.

But the quartet thinks this year is going to be much different, especially for stores and financing providers that have a value-driven, needs-based approach, supported by training and strategic differentiation, to deliver positive returns.

“We have seen a notable shift to a buyer-focused market, with increased dealer inventory driving consumer purchasing power,” said Jennifer Rappaport, EFG’s president and CEO.

“As a result, operating in the 2024 status quo will not yield a profitable outcome. Dealers, lenders, and agents must adopt a consumer-focused mindset while differentiating themselves throughout the buying process to make more in 2025. Training to hone buyer-first skill sets and a continued focus on compliance will become critical.  We can prove this model works,” Rappaport continued in a news release that highlighted a variety of predictions and recommendations shared on Tuesday.

To achieve 2025 revenue goals, EFG suggested that retail automotive dealer principals invest in fundamental customer-focused training and differentiate themselves across all digital platforms with creative incentives that ease economic concerns.

“We are in a buyer’s market now, and dealers must adopt a consultative selling approach if they want to close the deal,” EFG chief revenue officer Eric Fifield said. “Invest in training and processes that drive traffic, clearly communicate value, and make the buying decision easier.

“Your competition is not just down the street; it’s across the country. Don’t just sell a unit — build a relationship that begins with the first encounter, continues throughout the sale and to the service drive, and includes the right products that deliver a guaranteed net increase in your PRU.”

Adam Ouart, senior vice president, agency services and powersports at EFG, elaborated about those points, emphasizing the “value of selling more.” Ouart made his assertions by reminding dealers and finance companies that their potential customers often are connected to the industry via something like a smartphone.

“Face it — we live in a digital world and almost all our customers initiate their buying process online,” Ouart said. “In 2025, develop a strategic plan to market your dealership and your products online. That means more than boosting your website. It’s a strategic initiative to distinguish your dealership from the competition across the web, in email, and any other digital marketing tools at your disposal.

“Again, training is key here,” Ouart added. “Selling online is very different than on the shop floor. Make sure everyone at your dealership is technically savvy and that your sales and service team engage correctly with current and prospective customers. Don’t forget to double check that your digital communications are compliant with federal and state regulations.”

Which part of the automotive retailing and financing industries might be flourishing most this year? Brien Joyce, executive vice president of specialty services at EFG, offered this assessment.

“For credit unions, there is a tremendous amount of upside for 2025 in the auto lending segment. As dealer inventory stabilizes and OEMs offer more incentives, the path to purchasing a vehicle will continue to ease.  Penetration for credit unions has dropped to nearly 15%, so simply bolstering the percentage of automotive loans you close will generate more revenue for the credit union,” Joyce said.

“Credit unions that emphasize direct loans are able to offer more value to their members and more revenue for all involved. If you have better interest rates than banks or captive lenders, highlight the potential savings to members to generate more interest and opportunity in 2025,” Joyce went on to say.

More thoughts from Fifield can be found here, while additional thoughts about powersports and more from Ouart is available here. And Joyce has more insight about financing via this page.