Actions auto dealerships can take to “economy-proof” their PVR

Auto dealerships have had a lot to contend with recently, grappling with a range of issues directly affecting their business. These challenges include, but are not limited to:

• Uncertainty surrounding international trade and potential impacts of tariffs on pricing and supply chains
• Evolving cybersecurity threats that loom larger than ever
• Navigating an EV (electric vehicle) market showing encouraging 2025 sales figures so far,¹ but with a contested halt on some federal funding for charging station expansion² potentially eroding buyer confidence
• Higher costs for labor, materials and other increased operating expenses
• A trend of younger consumers less inclined to buy cars as they embrace rideshare services, biking for shorter commutes, and public transportation³

While auto dealerships have proven to be very resilient throughout the industry’s history, concern over those issues and others might keep some dealer principals awake at night.

That doesn’t have to be the case, though. There are several actions that can help keep the ship steady in today’s stormy economic waters.

Act now to help protect your dealership against economic volatility

Taking steps now to “economy-proof” your PVR (per vehicle retail) can help you protect what you’ve built and insulate your dealership from factors affecting the profitability of both new and used auto sales.

• Offer protection products that provide true consumer value
  By offering a select array of financial services and vehicle protection products to your customers, you can help them manage the unexpected during life’s turbulent times so they can better maintain a budget.
• Develop a process-driven mindset within the dealership
  A process used inconsistently is not a process. The F&I process has a direct impact on the customer experience. “Economy-proofing” your PVR requires checks and balances that ensure team accountability to dealership procedures. This creates a customer-centric culture that consumers expect.
• Collaborate with companies committed to protecting your profits and identifying new opportunities
  The right company should possess financial strength, subject matter expertise, proven systems and processes, and a robust local and national presence of highly trained team members capable of supporting your specific vision.
• Invest in your team through in-store training and development
  Equipping your managers with the resources and expertise to coach and train for higher performance is essential to increasing profits within the dealership. For example:
  
  • Take advantage of trusted, professional training services and resources for different dealership roles.
  • Schedule routine one-on-one coaching sessions between managers and sales consultants. Plan recurring training sessions in areas such as establishing a great first impression, qualifying a customer for a proper vehicle selection, executing a compelling vehicle presentation and demonstration, and conducting a professional turn-over, just to name a few.
  • Additionally, encourage your F&I team members to fully engage at each step of the process. This includes sales support in meetings, and customizing F&I menus so they offer all applicable financial services products to every client regardless of transaction type to improve F&I profits.

“Economy-proofing” your PVR requires the right products, mindset, partners, training and personnel growth. Zurich can help you protect what you’ve built. 

1.  “U.S. Electric Vehicle Sales Increase More Than 10% Year Over Year in Q1: GM Drives EV Growth While Tesla Declines.” Cox Automotive. 10 April 2025.
2. Goldstein-Street, Jake. “Seattle judge considers reversing Trump’s EV charger funding freeze.” Washington State Standard. 17 June 2025.
3. Glon, Ronan. “Nearly Half of Young Americans Don’t Want To Own a Car: Survey.” The Drive. 14 January 2025.