As the automotive industry evolves, it is important to keep track of the latest trends and innovations to stay ahead of the curve. That is why I was honored to be able to attend the recent National Automobile Dealer’s Association (NADA) 2024 show in Las Vegas that provided insights into the state of the industry and what we can expect in the near future.

At the conference I had the opportunity to engage with automotive industry experts Scott Fletcher, co-founder and partner at Tier10, an award-winning advertising agency specializing in automotive and Aleks Bogoeski, SVP of product management strategy and partnerships at Origence, a trusted partner in automotive retail solutions and fraud protection, on the latest challenges and updates we are seeing in the automotive space. Below are their answers. 

Currently, what are the biggest challenges in the automotive space?  

Scott Fletcher: Right now, the auto industry has a noticeable disconnect between what consumers want and the production mix of Original Equipment Manufacturers (OEMs). Dealers are getting a lot more electric vehicles (EVs) on their lots, thanks to the US government nudging OEMs with incentives and tax credits to make more EVs. This puts dealers in a bit of a spot because, at the end of the day, consumers still strongly prefer cars with traditional engines. If that's what the market wants, dealers are saying they need more of those to meet demand and keep their businesses thriving.

According to Equifax data:

• Electric vehicle interest rates are 20-25% lower than non-EV rates for both new and used vehicles, making them an attractive option for consumers.1

Aleks Bogoeski : One challenge that I am seeing on the lending side is with the folks who want to refinance their cars. That is continually a challenge as we digitize the automotive buying process. Fraud is also a big topic that a lot of our dealers keep bringing to our attention. We're looking for more solutions on how to prevent it. I had several deep conversations with our dealers and fraud unfortunately is going to continue. We're working closely with them and our partners at Equifax to combat fraud.

What hot topics are you seeing in the automotive space? 

Scott Fletcher: One of the hot topics among dealers is the emphasis on customer experience, especially as OEMs impose more restrictions, raising concerns about a shift towards a direct-to-consumer sales model similar to Tesla's. Despite these challenges, dealers recognize that customer experience remains an area under their full control, offering a unique opportunity to distinguish themselves from competitors.

How can dealers capitalize on industry trends in 2024?

Scott Fletcher: Improving customer experience with a strategic partner hinges on adopting a data-driven approach. It’s about honing in on a smaller, well-defined audience to communicate in a way that is both personal and relevant, which in turn elevates the overall experience due to the tailored nature of the messaging. It's crucial to establish this foundation and then follow through with it once customers arrive at the dealership.

What are some things your company is excited about in 2024?

Scott Fletcher: We expect a shift from a seller’s to a buyer’s market, primarily due to the rebound from inventory shortages. As inventory levels bounce back, we're likely to see falling interest rates alongside OEMs rolling out new incentives. This combination will compel dealers to adopt more competitive pricing and enhance their advertising strategies. This change bodes well for both consumers, who will benefit from better pricing, and for proactive dealers focused on growth. It's also advantageous for us, as we have a lot of tools to support these dealers in expanding their business.

Aleks Bogoeski​​​​​​​: There are a lot of things in store and 2024 is going to be a great year for our clients. I'm excited for it being a more of a normal year. We went through a lot of ups and downs in 2020 and 2021 with supply shortages and COVID-19. I'm really looking forward to just incremental growth. I'm looking for rates to go down. That would be exciting for us and for all of our clients.

How are you partnering with Equifax? Why Equifax? How has the partnership impacted your business?

Scott Fletcher: We partnered with Equifax for their extensive data capabilities and their commitment to genuinely supporting our strategic initiatives. We leveraged Equifax's consumer data to develop audience models, helping us identify and target both conquest customers and same-brand off-lease consumers. We really focused on off-lease customers because they are 100% guaranteed to be in the market for a new purchase or lease, making them a high-value target. This approach benefits every department.

Aleks Bogoeski:  We are looking to partner with Equifax and our other partners to continue to bring innovation to our 20,000 dealers and credit unions in the market for fraud solutions. I know Equifax acquired Kount from the fraud delivery channel and so we're looking to innovate and continue to bring new things to the market. 

We partner with Equifax to bring innovative solutions to our clients like Insta-Touch®. With credit unions, together we try to bring reliable products at the best possible price. We are always looking for new ideas and new innovations and enjoy collaborating with the folks at Equifax to research and learn new things to market.

Overall, the NADA 2024 show was filled with optimism and excitement for the industry as a whole. Auto personnel are relying more on the right data to power their businesses into the future and create a deeper, longer-lasting relationship with their customers. With the insights gained from the show, the industry can continue to stay ahead of the curve and provide consumers with the best possible experience. Learn more. 

1 Equifax TradeSight® & ACRO Data