If there was a wild card this year, it would be the three-row Range Rover, a layout never before seen in the line-up. How is it going?
The 3rd one is doing very well. There is a lot of demand for that car. And you know, we’re doing our best to make that happen. Much more than supply, and this is a good question.
Have you heard of any interesting trade-ins with the Range Rover now at a higher price point?
Oh, absolutely. This isn’t just the new Range Rover, we’ve seen it too. Now, with the prices of some of the higher trims continuing to rise, it’s certainly not uncommon to see exotics traded.
Are dealers optimistic about Jaguar’s future, as sales of electric vehicles, especially luxury models, are growing rapidly?
I think everyone is interested in the future of Jaguar. Dealers haven’t gone into too many details yet. But I hope it will be the new best way for the brand.
what‘is the biggest unmet need facing JLR dealers in 2023?
It’s been in limited supply for some time. Thankfully, demand hasn’t waned. In 2023, I hope JLR can solve some of the constraints that everyone in the industry has struggled with to some degree. That’s the biggest Achilles heel at the moment. Need more products. The factory knows it, owns it, and is confident it will help them continue to grow their numbers.
The Land Rover brand in particular is in a unique situation where new models are constantly being introduced and demand is not slowing down. I got a Range Rover Sport. Got a Defender 130. New models have arrived and new customers are waiting for us. This is great. This puts you in a very fortunate position as a retailer.
Has JLR Helped Dealers Through Times of Low Inventory?
We have quite a few customers who have extended their leases. JLR has been flexible with us and is trying to do what they can to keep customers within the brand, and JLR’s financial group has worked with us on that as well. As you know there is still a fair amount out of their control regarding some production issues, timing and arrivals. I think I did my best.
Does JLR require customers to order through the manufacturer’s order bank or website?
JLR doesn’t need it.
How are JLR dealers handling new car prices? Does JLR warn dealers about price increases and vehicle sales above sticker prices?
JLR encourages all retailers to do what is right for their customers and sell their vehicles at suggested retail prices. As you know, there are certainly things that can bring in accessory sales and higher numbers, but market adjustments and things like that are certainly discouraged.
but,‘Is it up to the dealer to make that choice?
absolutely. But it’s a difficult situation for JLR retailers. So there is a very large secondary market from clients who take the vehicle and sell it to someone else on the same day. But ultimately we want to do the right thing for our clients as well. And, hopefully, the people who buy cars are the ones who maintain and enjoy them.
Are affordability becoming more of a concern due to fears of inflation and recession?
At the moment, demand still far outstrips supply, so it doesn’t seem like a big factor.
Did JLR’s low incentives affect sales?
No, I don’t think so. Over time, there are certain models that I think might be considered. But as we’ve experienced with everything else, it’s the amount of inventory that we have.
With the new electric Jaguar lineup still about two years away, is JLR properly advising and providing resources to dealers on how to prepare for the EV rollout, including installing chargers at each store?
We are certainly in discussions with JLR on how best to future proof the facility.In the near future when we have more information about Jaguar’s future JLR has best practices in place to ensure that all facilities I’m sure you can see what needs to be done to build or renovate the facility to accommodate. future needs.
What is missing from your product line?
I think everyone is looking forward to what the future holds when they talk about Jaguar. As you know, we haven’t seen what will happen yet. My understanding is that the vehicle should be like nothing you’ve seen before, not a copy of anything. increase. I don’t know what will happen on Land Rover’s side, but I think they have a well-balanced line-up and I think JLR will continue to strengthen the brand.
Due to the limited availability of chips, JLR has used them in its most sought after and most profitable vehicle, the Land Rover. This resulted in a significant reduction in Jaguar production and sales. Is it a frustrating dealer?
I think increased chip availability will definitely improve Jaguar’s sales volume. You know, there are certain vehicles that we don’t see very often and that limits the opportunities, but his JLR effort to put chips in vehicles with the highest profit margins makes sense. increase.
Is the shortage of new vehicles making the certified pre-owned program more important than ever? Is JLR helping dealers drive CPO sales?
JLR has an excellent CPO program. Fortunately, vehicles are highly desirable. So it’s great for us as retailers that there’s a fair amount of demand to buy these his CPO cars on the used car side. JLR has always supported that program and understands its importance.
Does JLR have brand-specific tools for digital retail, or can dealers choose one or the other?
There is a wide variety of approved tools available, and in my opinion they cover the most common digital retail tools used by dealers.
how about the lease?
We saw a reduction in lease volumes, mainly due to the very high value of the vehicles. Customers can purchase a vehicle with peace of mind as opposed to leasing and move out quickly without worrying about residual risk. Luckily, Land Rover products as a brand hold their value well and the level of comfort makes it as safe for consumers to buy a car as if they were leasing it. I’m sure you’re thinking about it.
But in the long term, could declining leasing put pressure on the supply of CPO vehicles?
I haven’t given it much thought, but I know what you mean. There are other sources available, such as rental fleets. Thankfully we have great loyalty as a brand, we get a fair amount of branded deals, but certainly less lease volume, so future inventory of pre-owned is more You may find yourself in a difficult situation.