Digital Dealer - September 2019 - 14

D E A L E R OP S & M AN AG EM E NT: B uy/ Se ll Continued from pg. 13

CHART 3

Average Dealership Gross Profit Breakdown
2012-2019 LTM

Source: NADA

seven months of the year,
as previously noted, adding
over $8.1 billion in value
in that period of time (see
Chart 5). During the same
period, the S&P 500 Index
is up a strong 19%, but six
of the seven component
stocks of The Kerrigan Index are tracking well ahead
of the S&P's gains. Sonic
is up a stunning 102%,
followed by Lithia (+70%),
and Group 1 (59%), while
AutoNation, Asbury, and
CarMax all up over 30% in
the first seven months of
2019 (see Chart 6).
It is worth repeating that
stock prices reflect the consensus on future earnings
of a given company. The
strong gains in the stock
market show the consensus
that the earnings outlook
for auto retail has improved
14

SEPTEMBER 2019

CHART 4

Source: SEC Filings

considerably, despite
several economic analysts'
predictions that we are
overdue for a macro-economic correction.
This seeming contradiction between booming auto
retail stock prices and the
anticipation of a cyclical
correction is a testament to
the diversified and countercyclical nature of the
auto retail business model.

D I G I TA L D E A L E R . C O M

While the economy flows
through cycles, the flexible
cost structure of auto retail
allows dealers to shift,
adapt, and stay profitable.
For example, during the
most recent recession,
dealers decreased expenses and saw their net
to sales improve 220% in
2009 as compared to 2008.
(see Chart 7). Profitability,
both current and future, is

what is driving these stocks
upward.
AND WHAT ABOUT
DISRUPTION?

Anyone in auto retail
cannot help but notice the
regular flow of articles and
dire predictions about the
tumultuous change just
around the corner for auto
retail. There are regular
predictions on how autono-

Continued on pg. 16



http://www.DIGITALDEALER.COM

Digital Dealer - September 2019

Table of Contents for the Digital Edition of Digital Dealer - September 2019

Digital Dealer - September 2019
A Message from the Show Director
Rally Around Common Ground
Want to Build a Dealership Where People Want to Work?
Leading With Purpose
Auto Retail Comes Roaring Back in 2019
Off the Sidelines & in the Game
Is Improved Profitability
Interview with Danny Zaslavsky of Country Hill Motors
12 Content Tactics to Strengthen Your Digital Reputation
Digital Retailing: Part 1: What is Digital Retailing?
Marketing to Your “Personas” and Not Your Target Audience
Mastering Facebook’s New Ad Relevance Diagnostics
Keeping Techs AND Consumers Happy, While Remaining Profitable
Forecasting Fixed Ops Performance – It’s the Little Things
Profiles of Success
Are You Reaching the Older Consumer?
DD27 Recap
Digital Dealer - September 2019 - CT1
Digital Dealer - September 2019 - CT2
Digital Dealer - September 2019 - Digital Dealer - September 2019
Digital Dealer - September 2019 - Cover2
Digital Dealer - September 2019 - 1
Digital Dealer - September 2019 - A Message from the Show Director
Digital Dealer - September 2019 - 3
Digital Dealer - September 2019 - Rally Around Common Ground
Digital Dealer - September 2019 - 5
Digital Dealer - September 2019 - Want to Build a Dealership Where People Want to Work?
Digital Dealer - September 2019 - 7
Digital Dealer - September 2019 - 8
Digital Dealer - September 2019 - 9
Digital Dealer - September 2019 - Leading With Purpose
Digital Dealer - September 2019 - 11
Digital Dealer - September 2019 - Auto Retail Comes Roaring Back in 2019
Digital Dealer - September 2019 - 13
Digital Dealer - September 2019 - 14
Digital Dealer - September 2019 - 15
Digital Dealer - September 2019 - 16
Digital Dealer - September 2019 - 17
Digital Dealer - September 2019 - Off the Sidelines & in the Game
Digital Dealer - September 2019 - 19
Digital Dealer - September 2019 - Is Improved Profitability
Digital Dealer - September 2019 - 21
Digital Dealer - September 2019 - 22
Digital Dealer - September 2019 - 23
Digital Dealer - September 2019 - Interview with Danny Zaslavsky of Country Hill Motors
Digital Dealer - September 2019 - 25
Digital Dealer - September 2019 - 26
Digital Dealer - September 2019 - 27
Digital Dealer - September 2019 - 28
Digital Dealer - September 2019 - 29
Digital Dealer - September 2019 - DD27 Recap
Digital Dealer - September 2019 - 31
Digital Dealer - September 2019 - 32
Digital Dealer - September 2019 - 33
Digital Dealer - September 2019 - 12 Content Tactics to Strengthen Your Digital Reputation
Digital Dealer - September 2019 - 35
Digital Dealer - September 2019 - 36
Digital Dealer - September 2019 - 37
Digital Dealer - September 2019 - Digital Retailing: Part 1: What is Digital Retailing?
Digital Dealer - September 2019 - Marketing to Your “Personas” and Not Your Target Audience
Digital Dealer - September 2019 - 40
Digital Dealer - September 2019 - Mastering Facebook’s New Ad Relevance Diagnostics
Digital Dealer - September 2019 - 42
Digital Dealer - September 2019 - Keeping Techs AND Consumers Happy, While Remaining Profitable
Digital Dealer - September 2019 - 44
Digital Dealer - September 2019 - Forecasting Fixed Ops Performance – It’s the Little Things
Digital Dealer - September 2019 - 46
Digital Dealer - September 2019 - Profiles of Success
Digital Dealer - September 2019 - Are You Reaching the Older Consumer?
Digital Dealer - September 2019 - Cover3
Digital Dealer - September 2019 - Cover4
https://www.nxtbook.com/nxtbooks/digitaldealer/202004
https://www.nxtbook.com/nxtbooks/digitaldealer/202003
https://www.nxtbook.com/nxtbooks/digitaldealer/202002
https://www.nxtbook.com/nxtbooks/digitaldealer/202001
https://www.nxtbook.com/nxtbooks/digitaldealer/201912
https://www.nxtbook.com/nxtbooks/digitaldealer/201911
https://www.nxtbook.com/nxtbooks/digitaldealer/201910
https://www.nxtbook.com/nxtbooks/digitaldealer/201909
https://www.nxtbook.com/nxtbooks/digitaldealer/201908
https://www.nxtbook.com/nxtbooks/digitaldealer/201907
https://www.nxtbook.com/nxtbooks/digitaldealer/201906
https://www.nxtbook.com/nxtbooks/digitaldealer/201905
https://www.nxtbook.com/nxtbooks/digitaldealer/dd26showdirectory_042019
https://www.nxtbook.com/nxtbooks/digitaldealer/201904
https://www.nxtbook.com/nxtbooks/digitaldealer/201903
https://www.nxtbook.com/nxtbooks/digitaldealer/201902
https://www.nxtbook.com/nxtbooks/digitaldealer/201901
https://www.nxtbook.com/nxtbooks/digitaldealer/201812
https://www.nxtbook.com/nxtbooks/digitaldealer/201811
https://www.nxtbook.com/nxtbooks/digitaldealer/201810
https://www.nxtbook.com/nxtbooks/digitaldealer/201809
https://www.nxtbook.com/nxtbooks/digitaldealer/201808
https://www.nxtbook.com/nxtbooks/digitaldealer/201807
https://www.nxtbook.com/nxtbooks/digitaldealer/201806
https://www.nxtbook.com/nxtbooks/digitaldealer/201805
https://www.nxtbook.com/nxtbooks/digitaldealer/201804
https://www.nxtbook.com/nxtbooks/digitaldealer/201803
https://www.nxtbook.com/nxtbooks/digitaldealer/201802
https://www.nxtbook.com/nxtbooks/digitaldealer/201801
https://www.nxtbook.com/nxtbooks/digitaldealer/201712
https://www.nxtbook.com/nxtbooks/digitaldealer/201711
https://www.nxtbook.com/nxtbooks/digitaldealer/201710
https://www.nxtbook.com/nxtbooks/digitaldealer/201709
https://www.nxtbook.com/nxtbooks/digitaldealer/201708
https://www.nxtbookmedia.com