NADA Franchise Report Breakdown, Abandoning Adessa, Manufactures in the Metaverse

The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier

It’s a beautiful Monday to make some trouble as we give our quick takes from the recently released Annual NADA Franchise report. We also talk about what Toyota and Nissan are up to in the metaverse as well as the impending closing of Carvana’s acquisition of Adessa and what that might mean for the popularity of the country's second largest auction house.

• Annual NADA Retail Franchise Report

  • Street purchases up 2x
  • Cost/sale on the rise
  • New vehicle supply under 25 days
  • Over 271M Repair Orders written
  • 1,055,400 Dealership Employees (avg 63) (pg 17)
  • $8.9B ad spend (63.6 internet, 12.4 tv, 9.8 radio, 8.2 direct mail, 4.5 newspaper (pg 16)
    • 2019 $9.25B , 2020 $7.48B, 2021 $8.19B (pg 15)
    • Avg per unit: 2019 $640, 2020 $582, 2021 $602

• Toyota and Nissan create virtual experiences in the Metaverse

  • Toyota is leaning toward virtual workspace environments, catering to younger employees

  • Nissan is focusing on virtual vehicle launches and consumer experiences

• Some Buyers and Sellers Abandoning Adessa after Carvana Acquisition

  • Lithia CEO Bryan DeBoer, during last week's first-quarter earnings call, believes seven manufacturers recently pulled vehicles from ADESA. Automotive News confirmed that Toyota Financial Services chose to end its relationship with ADESA effective April 1, a spokesman said.
  • Erine Garcia acknowledged "small handful of both buyers and sellers" have chosen to leave
  • Adding the ADESA sites would nearly double the volume of vehicles Carvana can process to as many as 2 million vehicles a year, the company said
  • Deal is scheduled to close in May

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Hosts: Paul J Daly and Kyle Mountsier
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