Overview
Rita Case of Rick Case Automotive Group and CDK Global CEO Brian MacDonald say the industry’s current hurdles—tariffs, affordability, and interest rates—are manageable for an auto retail sector that’s built on adaptation. Case expects tariff rates to stabilize rather than derail demand, while both leaders point to technology as the key driver of dealership efficiency and customer satisfaction.
Tariffs and Pricing
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Case is “not worried” about tariffs and anticipates they will settle in the 12%–15% range.
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Tariff exposure is currently greater for imported components than for finished vehicles assembled in the U.S.
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MacDonald expects automakers to “do a bit of de-contenting” to constrain sticker prices while tariffs persist.
Affordability Pressures
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Average transaction prices climbed from about $37,000 to a record ~$50,000 (Cox Automotive), pushing some shoppers out of the new-vehicle market and extending loan terms.
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Higher prices and tariff-related costs could lift residual values, potentially helping trade-ins and monthly payments for some buyers.
Technology’s Role in Retail
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Dealers are leveraging inventory tools, CRM systems that track omnichannel journeys, and digital retailing to give customers more control and streamline deals.
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Efficiency gains now touch fixed ops and the showroom, improving transaction speed and satisfaction.
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MacDonald says software and data platforms help manage complexity as product mixes and consumer expectations evolve.
Industry Resilience and Context
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Case cites the rebound after the financial crisis (sales fell to 10.6 million from nearly 17 million) as evidence of cyclical resilience.
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Tariffs are not new; measures in the early 1980s didn’t prevent Japanese brands from establishing lasting U.S. operations.
Rick Case Automotive Group Notes
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Case’s background spans a lifetime in retail auto; she leads the multistate group following Rick Case’s passing in 2020.
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The company describes Rick Case Automotive as the largest female-owned and operated U.S. dealer group (company claim).
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The group reports multiple top-volume store distinctions, including Rick Case Honda named the nation’s top Honda dealer in 2024, and No. 1 sales rankings for its Hyundai and Kia stores in Florida, plus the top-volume Volkswagen store for seven consecutive years (company claims).
Outlook
Case expects tariff rates to stabilize in the low-to-mid teens. In the meantime, dealers will focus on controllables: streamlining processes, deploying digital tools, managing expenses, and aligning inventory to local demand and budgets. As MacDonald notes, “There will be change in the industry but it’s always changing anyway. We’ll be fine.”
