Cox Automotive acknowledged that by nearly every measure, 2022 was a difficult year for independent dealers, who were challenged by historically low vehicle inventories, high prices and the ongoing risk of an economic recession.

With predicting the year ahead will be one of transition, as both consumers and the industry move past the remains of a global pandemic and set a new course for growth, the NextGear Capital field team compiled 10 tips to help independent dealers thrive in 2023.

The recommendations include:

1. Aged inventory is not your friend. Holding costs will hurt your profits.

2. Money is made at the buy. Use tools to expand your reach to find the desired inventory at the best price. Look for tools that allow you to wholesale and retail at the same time.

3. Know where your inventory is at all times. Use tools such as Account Portal to make your audits and reconciliations more efficient and profitable.

4. It is important to be lean in 2023. Watch expenses closely such as reducing unnecessary costs, ensuring your marketing spend generates returns, and investing carefully to stay competitive.

5. Change your pricing strategy regularly to match market conditions.

6. Leverage the resources of your vendor partners. They have the ability to provide access to unique data which is key to driving stronger profits. Also, choose partners that work together to improve your efficiency and strategy.

7. Focus on the client experience. Consider time on the lot, pricing transparency, and the overall process. Give your clients an experience to remember and they will spread the word to others.

8. Build long-term relationships. Become involved in your community, learn from your competitors, and stay close with your vendors to keep abreast of new products, offerings and opportunities.

9. Knowledge is power. Pay attention to industry news and stay on top of trends.

10. Satisfied clients are a gold mine. Invest in a strong CRM to stay connected to them and remain top of mind.

“NextGear Capital is steadfast in our commitment to the success of independent dealers and delivering solutions to help them thrive in any environment,” NextGear Capital president Scott Maybee said in a news release.

“Our team members are in the trenches with independent dealers day in and day out, providing insights to help them make more informed decisions, streamline their operations, and create efficiencies. These tips are a reflection of the expertise they bring to every client relationship,” Maybee added.