Dealerships should remain hyper-focused on bottom-line fundamentals amidst uncertainties over the next six to 12 months, according to Senator Bernie Moreno (R-OH), who was formerly a car dealer of over 30 years.
Driving the news: In a sweeping conversation with Daily Dealer Live hosts Sam D’Arc and Yossi Levi on Monday, Moreno spoke about tariffs, market demand for different powertrains, and the Chinese automotive industry, among other things.
As for how he would advise dealers to manage the many shifting factors in today’s economic environment, Moreno doubled down on a few important fundamentals.
“First of all, the fundamentals always matter,” Moreno said. “There's fundamentals that stick with you no matter what you got.”
Key fundamentals for dealers should include a few important basics, the Senator explains:
Focus on velocity in used cars.
Ensure that you order your new car inventory the right way, in part by stocking the right cars.
Take incredible care of your clients, and do that by taking incredible care of your team.
Make sure you hire really great, competent people, and don't be afraid to fire someone when they aren’t a good fit.
In the near term: Moreno stressed urgency around the September 30 EV tax credit deadline. Customers with a signed purchase and sale agreement plus a deposit by that date will still qualify for the $7,500 credit even if delivery happens later.
“If you have an electric vehicle in your inventory, get rid of that thing,” he said.
Without subsidies, Moreno expects EV demand to collapse to just 5–7% of sales.
“Ninety-five percent of consumers are saying [EVs are] not for me,” he argued, while calling hybrids a “much better alternative.” In his view, the Biden administration’s EV push is “playing China’s game” rather than letting customer demand guide the market.
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Speaking of China, Moreno’s stance is absolute.
“We’ll never let Chinese cars into the American marketplace,” he said.
Instead, the administration is focused on harmonizing safety standards with allies.
What’s next: Additionally, Moreno suggests that dealers find ways to use AI to streamline their processes whenever possible—and especially as the industry shifts even further toward these tools as standard.
“AI is gonna change the dealer landscape quite a bit,” he adds. “Not just on acquisition, but on communicating with customers and, whether it's service appointments, I see it as a tool to help assist, especially BDCs. Make sure you're not on the bleeding edge of that, but make sure you don't get left behind.”
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