Pub. 3 2024-2025 Issue 2

In the fast-evolving automotive industry, dealership valuations have never been more crucial. For automotive dealer principals looking to make informed decisions, whether buying, selling or securing financing, understanding how valuations work can dramatically influence outcomes.

In the past couple of years, the auto retail business has shown remarkable adaptability, changing to meet new demands during the global pandemic. Not only have dealers addressed an array of challenges — inventory depletion, supply chain disruptions and a skilled labor shortage — while still having some of the most profitable years, but they’ve also responded to evolving consumer buying preferences. Today, 40% of Americans say they’re prepared to configure and purchase a car online, only visiting the dealership for a test drive.

Heat-related injury and illness have been consistently among the top five issues that the Occupational Safety and Health Administration (OSHA) has cited businesses for nationwide. With such a vast number of requirements of heat illness and injury prevention laws, it is never too early to understand the processes you need to have in place to ensure that you are providing a safe working environment for your employees as well as protecting your business from any inspection by state or federal agencies.

The U.S. Chamber of Commerce reports that small businesses account for 99.9% of all U.S. businesses and employ 46% of the private sector workforce. According to the SBA’s “small business” definition, the majority of local franchised auto dealerships are part of the 33.2 million small businesses that form the foundation of our nation’s economy.

For the first time in history, we have five generations in the workplace, which also means dealerships are juggling the interests, needs and communication styles of members whose ages span over a half-century. Each of these groups has been influenced by the socio-cultural events that took place during the formative years of their lifetimes, including how each generation views its financial needs, goals and communication preferences. A generation is defined as “a group of people born around the same time and raised around the same place. People in this birth cohort exhibit similar characteristics, preferences and values over their lifetimes.”

As your dealership adapts to the latest automotive trends, be prepared — employment law is also getting a full system upgrade. Recent legal detours and regulatory U-turns are rewriting how employment rules are created, enforced and challenged. So, before you change lanes or slam the brakes, here’s what’s happening in D.C., and what it means for Georgia dealerships.

At the time the GADA’s Workers’ Compensation Fund (WCF) was created, the U.S. economy was marred by high unemployment and a severe economic downturn that was triggered by high inflation and rising interest rates. Then GADA President, William “Bill” Morie, with the help of GADA board members, was not deterred as they went from bank to bank to get the monies for the WCF covered by the then $100k FDIC rule. That was in 1982.

By educating your employees in certain aspects of health care, they can become better consumers and advocates.