New vehicle showrooms are heading into the thinnest run of fresh product on record. On today’s edition of CBT Live, John Murphy, Founder and Managing Partner of Murphy Automotive Partners, broke down the fallout for dealers.
According to the Murphy Automotive Product Pipeline, the vehicle redesign rate has fallen to its lowest level ever. With the average product age reaching 4.8 years next year, customers returning to the showroom will see a vehicle close to the one they bought three to five years ago. Additionally, the price point is 30% to 40% higher, and rates have gone up. Murphy said dealers should push those customers into parts and service over the next couple of years, since the opportunity is to bring them back once new products launch.