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Auto dealers need good counsel now more than ever

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  4.  » Auto dealers need good counsel now more than ever

The automobile dealership business is going through some tough times. According to some analysts, it may be going through the toughest period since the Great Recession more than 10 years ago.

Prices for new cars have gone up, driven by consumers’ preferences for SUVs and technological features. Some of these high-tech offerings are mandated by government regulations, while others are just desirable features. Whatever the explanation, the average sale price of a new car in 2018 was $36,000, about $5,000 more than it was in 2012. Automakers and auto dealers have cut into their profit margins in order to keep prices from scaring off potential customers.

Complicating this is the issue of dealer incentives. Many auto dealers rely on these incentives for income, but they come with strings attached. Often, dealers must spend a lot of money getting their operations into compliance with the automakers’ requirements, further cutting into their profit margins.

The result can be a tough and tense situation for auto dealers. It is more important than ever for dealerships to have help from attorneys who have experience in the unique legal issues of the auto dealership business.

At Kurkin Forehand Brandes LLP, our experienced attorneys can help dealers with many aspects of the auto dealership business, including franchise disputes, state licensing issues, contracts and the buying and selling of dealerships. We have worked closely with clients with these issues, drafting and reviewing documents, overseeing regulatory compliance, negotiating agreements and offering sound advice. See our automobile dealership law page for more information.