Calif. BHPH Bill Heads to Governor’s Desk; Two Others Inch Closer

Calif. BHPH Bill Heads to Governor’s Desk; Two Others Inch Closer
Three bills aimed at buy-here, pay-here dealers move closer to becoming law. Assembly Bill 1447 gains approval from both houses and awaits the Gov. Jerry Brown’s signature, while AB 1534 and SB 956 head back to their respective houses for concurrence votes. Read Full Story

We Turn Auto Notes Into Cash!

Polk: Commercial Registrations Decline in 1Q; New Sales VP Named

A shortage of used commercial vehicles could be impacting the industry according to the latest analysis by Polk, with registrations down across all used gross vehicle weight sectors.

On Wednesday, Polk reported that used commercial vehicle registrations (GVW 3-8) declined by 26.7 percent to 164,024 units in the U.S. during the first quarter of 2012, compared to the same period in 2011.

“While used-vehicle registrations remain strong, the long awaited decline in used commercial vehicle registrations as seen in the past two quarters may indicate that a shortage of good, clean available units could finally be upon us,” said Gary Meteer, account director for commercial vehicle solutions at Polk.

During the 2012 calendar year, a record 791,288 used commercial vehicle registrations were reported, representing a 17.7 percent increase from the number reported during the 2011 calendar year.

“With the first quarter complete, it is hard to believe that the total number of used registrations during 2012 will meet or beat the record levels seen in 2011,” Meteer added.

The numbers do not indicate a lack of confidence in the used commercial truck market, he noted, but do indicate that the continued growth experienced since the 2008 calendar year will likely not continue through 2012.

Used commercial vehicles represented 55.9 percent of total commercial vehicle transactions in the market during the first quarter, down from 70 percent during first quarter 2011.

Combined with 129,755 new registrations of GVW 3-8 vehicles over the same time period, overall commercial vehicle transactions in first quarter 2012 were down 10 percent from the same quarter last year.

The decreases were larger in some other GVW sectors year-over-year, with declines ranging from 46.4 percent for GVW 7 vehicles to a decline of 18.6 percent for GVW 3 vehicles.

As for GVW 8 vehicles, Meteer said, “One of the most frequently watched and analyzed activities in the commercial vehicle market is the number of used registrations for GVW 8 vehicles. The used registrations of GVW 8 vehicles were down 27.6 percent from the level achieved during the first quarter of the 2011 calendar year.”

GVW 8 used-vehicle registrations during the first quarter this year accounted for 39.8 percent of total used transactions compared to 38.6 percent last year, 47.6 percent in 2010 and 41.2 percent in 2009.

Criteria for the Polk analysis summary require that both the business name and the business address on the vehicle registration must have changed from the previous owner. Information supplied by each state’s Department of Motor Vehicles is also utilized.

New VP Named

In other news from Polk, the company has promoted Brad Korner to the role of vice president of sales and client services for Automotive Retail Solutions and Media.

“We are excited to welcome Brad to this role,” said Kendra Rawls, senior vice president of global sales and marketing at Polk. “His proven track record and extensive industry experience, combined with his strong focus on customer relationships, will serve as a great asset to Polk customers and prospects.”

Korner has been with Polk since 2004, and is a 30-plus-year customer relationship management veteran. He previously served as director of sales and client services for the ARS group.

Prior to joining Polk, Korner spent nearly 24 years with Reynolds and Reynolds.

View the original article here

sell auto notes

NCM Celebrates First Graduating Class of General Management Executive Program

The auto industry has a new group of leaders celebrating their success as the first-ever graduates of a new management training program.

Students of NCM Associates’ General Management Executive Program for franchised dealers celebrated their graduation on Wednesday.

“I am very proud of each one of today’s graduates; they have worked diligently to balance the rigors of professional study with their day-to-day dealership duties through the 11 months of this program,” said Garry House, director of the NCM Institute Center for Automotive Retail Excellence.

“I am certain they will all find great success in their retail automotive careers, and I applaud their dealership principals for the investment they’ve made in their students’ success.”

Student Tarik Shapli from Audi Wynnewood is among the inaugural class.

“This course provides a great overview of a general manager’s area of responsibility, and then backs it up with a lot of detail regarding the measurement, performance and improvement of each department,” Shapli said.

The General Management Executive Program curriculum is designed to give students the knowledge and skills necessary to successfully manage a dealership, including balancing the industry’s volatility and the many operational decisions that drive dealership profitability.

The program consists of a series of sessions conducted over the span of 11 months, held at NCM Institute training headquarters and led by NCM’s faculty of industry veterans.

“It’s vital these students have a faculty comprised of industry experts and veteran automotive retail executives to guide them,” stated House. “Our instructors are highly experienced retail managers who, as well as their positions on the NCM Institute faculty, are also actively working in dealerships with their clients. They bring deep, real-world retail automotive management experience to the classroom.”

Paul Faletti, Jr., NCM's president and chief executive officer, congratulated the graduates via a special video announcement, encouraging them to put the principles learned to good use in their respective dealerships, and to be open to innovative approaches and technologies without abandoning fundamental best practices.

The next class of the General Management Executive Program is set to kick off in August. For more information, visit www.ncm20.com.

View the original article here

sell auto notes

Beige Book: Used Market Consistently Strong

The overall retail sales market for dealers examined by the Federal Reserve in its most recent reporting period appeared fairly positive, and for the districts sharing insight on used-vehicle sales, the environment is a solid one.

In its latest Beige Book report, Fed pointed out rather stable used-vehicle sales, as well as a robust new-car market.

“New-vehicle sales remained strong and inventories of some popular models were tight. Sales of used automobiles held steady,” officials noted in the report.

Expanding upon this, the Fed added: “Automobile sales generally remained strong, although the pace of growth moderated in a few districts.

“Sales of used vehicles held steady, and a slight decline in prices was reported. Inventories of popular vehicles were tight,” it continued. “Outlooks were positive, and contacts across several districts expect steady growth in sales in coming months.”

While not all 12 Fed districts offered insight on their respective area’s used-vehicle market, the ones that did noticed dealers reporting good signs for their business.

In the Second District (New York), for example, dealers talked of a healthy used market.

“The used-car market continues to be strong and prices remain elevated, although dealers in the Buffalo area note some recent softening in prices at auction,” the Fed said of the Second District. “Wholesale and retail credit conditions remain favorable and continue to improve.”

Moving over to Cleveland, the Fed observed a similar trend in the Fourth District.

“Purchases of used vehicles were fairly steady year-over-year — inventories are building and prices declined slightly,” officials noted.

Sharing more auto-related insight, they added: “On the financing side, we heard two reports that banks are more willing to work with dealers. Leasing activity picked up. Dealers are investing in manufacturer-mandated facility upgrades and imaging programs. Hiring for sales and service positions continued, but at a very slow pace.”

In the Eighth District (St. Louis), the Fed gave a more concrete numbers breakdown of how both the new and used markets are faring. Among its data points, the Fed illustrated that a fifth dealers in the region saw used sales climb relative to new sales, and another fifth saw the reverse.

Lastly, the Fed shared some of its used-vehicle insight from the Twelfth District (San Francisco). It found that consumers here are still going after used vehicles, and with low inventory, this led to high prices.

“Demand remained strong for used vehicles and combined with tight inventories to keep prices elevated,” the Fed explained.

View the original article here

sell auto notes

Better Used-Car Buys Found in the Big City, New Study Finds

According to a new study, used-car deals get better — hundreds of dollars better — as ya shopper heads toward the big city.

In all but two states studied in CarGurus’ latest survey, dealers within a 50-mile radius of a major city center offer better deals on their used-car inventory than those located farther outside that metropolitan center.

How much better? Some of the best city savings were found in New Orleans, at $770, Las Vegas at $641 and Atlanta at $606.

In California, New York and Texas — the states in the study with the highest populations — CarGurus reports finding prices at city dealerships at more than $500 less than at suburban dealerships.

Overall, CarGurus analysts reported an average price difference of $345 between used-car listing in cities and suburban/rural used-car listings within the same state.

“If you are looking for the best deal on a used car, head for the city,” said Langley Steinert, founder and chief executive officer of CarGurus. “Our data shows that dealers located in populated metro areas tend to price their inventory more competitively than dealers located farther outside the city. For suburban car shoppers looking for savings, it’s worth expanding your search to include city dealerships.”

Only two states studied bucked the city savings trend, CarGurus noted: In Indiana and Arkansas, suburban/rural dealerships offered consumers, on average, better deals on used cars than dealerships within those states’ major metro areas.

For this study, CarGurus applied its car valuation models to compare prices on millions of used-car listings offered at dealerships in and outside the top 50 U.S. metro areas.

“City dealerships” were defined as those located within a 50-mile radius of a major city center.

“Suburban/rural dealerships” were defined as those in the same state that were located beyond the 50-mile radius of the major city centers.

View the original article here

sell auto notes

New York Chevy Dealer Scoops Up GM Remarketing's Milestone Ride

Todd Caputo wasn’t sure what exact model would roll down the lane Wednesday morning at Southern Auto Auction, but he knew he wanted it.

And fortunately for the Chittenango, N.Y., dealer, his bid for the 14 millionth vehicle ever remarketed by General Motors — a 2011 Chevrolet Equinox — was the winner.

“I was excited to buy the car. I wanted to be a part of history,” Caputo told Auto Remarketing by phone Wednesday afternoon on his way back from the East Windsor, Conn., auction.

“I kind of stood outside the overhead door, so I couldn’t really tell exactly how many people were bidding on it. I could just see hands, but I couldn’t see faces,” the owner of Sun Chevrolet, Inc. added, noting that the bidding was “pretty active.”

As Caputo, GM and Southern AA celebrated this landmark sale, Dan Kennedy — manager of GM Remarketing — also shared his perspective with Auto Remarketing on Wednesday afternoon, not long after the vehicle was sold.

“When you start thinking about the number of vehicles that have gone before us … this really demonstrates the commitment we’ve got to our dealers, to be able to provide them with good quality used vehicles,” Kennedy said.

“One of the biggest (profit centers) is used cars,” he added. “Plus, this is also a feeder, if you would, for our certified pre-owned programs. It’s a great for our dealers to stay in the used-car business and get the quality of products they need in order to service the customers.”

There was not any specific numbers available as to how many of these 14 million remarketed vehicles have made their way into the GM Certified program, as these figures tend to fluctuate year to year, Kennedy explained.

However, it certainly has served as CPO supply stream.

“I think you can safely say that a fairly significant percentage of our vehicles that we sell at the auctions find their way into the certified program,” he noted.

Adding some more perspective from the certified side, Larry Pryg — national manager of Certified Pre-Owned Vehicles at GM — said:  “This GM Remarketing milestone speaks to the quality of our products and the success of our auction partners and Certified Pre-Owned dealers. Our Certified Pre-Owned dealers acquire a portion of their inventory from these auctions, and because of their success, our customers have a more robust vehicle selection.”

More Details on Landmark Sale

Sharing more about the sale, Caputo said he bought the vehicle around 10 a.m. EST.  The auction had a sign on top of the vehicle and an announcement was made about it being the landmark vehicle.

"They had the car wrapped up, so I didn't know what it was going to be prior to coming in," he noted.

Caputo learned this milestone vehicle — which had been a company car — would be at the sale after being contacted by the auction and invited to the sale. Having been an SAA customer for roughly 20 years, Caputo said this was a sale he attends anyway.

View the original article here

sell auto notes

Preferred Warranties Marks 20th Anniversary by Revealing Continued Sales Revenue Jump

Wayne Herring Jr., Preferred Warranties

Extended service contract provider Preferred Warranties began its 20th anniversary celebration this week by highlighting a 29-percent increase in sales revenues last year, coming on the heels of a 16-percent jump during 2010.

PWI national sales manager Wayne Herring Jr. declared, “2010 was strong, 2011 was even stronger.

“The new plans and dealer programs that we introduced last year have been extremely well received,” Herring continued. “We’re opening up new territories, and we have built the best customer service and sales team in the business. The long and short of it is that we have a lot to celebrate.”

Last year, the company introduced a new high-end protection plan, an online contract entry tool for dealers, new Spanish sales literature and expanded dealer rebate incentives.

PWI also introduced its Premier Plan, offering coverage on a wider range of parts and service needs including many new high-tech systems and components.  

“The coverage is so extensive that we’ve gone to an exclusionary contract,” Herring pointed out. “It lists the few items not covered by the Premier Plan. If a component or problem is not on that list, this plan covers it.”

The company also invested heavily in support and technology for dealerships that carry Preferred Warranties.

In June, PWI introduced eContract, an online program that can allow dealers to instantly compare, present and submit service contracts on virtually any vehicle.
“The speed and simplicity of Preferred’s online contract program are amazing,” stated Mike Bowers, of John’s Great Cars in Reading, Pa.

“In less than a minute I can enter the information on any vehicle, calculate all of the service contract options, and have it presentable for the customer on a single page,” Bowers added.

Last summer, the company also introduced new Spanish versions of marketing and sales materials.

“To my knowledge, Preferred Warranties was the first provider of aftermarket vehicle protection plans to make a focused effort on hiring bilingual claims reps,” noted Greg Reyes, one of PWI’s full-time bilingual customer service reps.

“The management team is committed to recruiting, training and maintaining the best bilingual staff in the business,” Reyes emphasized.

Celebrating aside, Preferred Warranties stressed it won’t be resting on its laurels. The company’s plans for 2012 include a new e-tablet app that can enable dealers to instantly customize and compare finance and insurance products for customers.

Herring insisted the company’s solid record of growth has come since its founding in 1992.

In 1998, Preferred Warranties was ranked No. 179 on the Inc. 500 list of fastest growing U.S. companies and earned a Torch Award for Marketplace Ethics from the Better Business Bureau. Today Preferred Warranties protection plans are insured by an A.M. Best “A-” underwriter, and offered through dealerships in 17 states. The company is rated “A” by the Better Business Bureau.

Preferred Warranties extended service contracts are available through dealerships in 17 states, including Alabama, Delaware, Georgia, Indiana, Kentucky, Maryland, Michigan, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia and West Virginia.

View the original article here

sell auto notes

Benefits of Factoring Receivables

If you sell goods or services to commercial or government accounts you are very familiar with the fact that you have to offer your clients 30 to 60 days to pay their invoices. However, offering 30 day payment terms can be very challenging for business owners who must cover all the business's expenses while they wait to get paid. This quickly eats up any cash reserves and puts the business in a challenging position. Unfortunately, when it comes to getting paid, hurry up and wait seems to be the name of the game.

But there is a solution to this problem that you won't find at your local bank. It's called accounts receivable factoring. It has the following benefits:

1. It gets your invoices paid in 24 hours, eliminating long payment waits

2. Factoring is easy to obtain

3. Setting up an account takes just a couple of days

Although factoring provides your business with working capital, it is not a business loan. It is an advance on your outstanding invoices. Because of this, factoring invoices is easy to obtain provided that you do business with reliable customers. Furthermore, invoice factoring easily integrates into your company. It works as follows:

1. You deliver the goods or services and invoice your client

2. You send the invoice to the factoring company, who advances you up to 85% of your invoice as a first installment

3. You get to use the funds to pay business expenses, while the factoring company waits to get paid by your client

4. Once the factoring company gets paid, it rebates the remaining 15% as a second installment, less a small service fee

Factoring service fees vary based on a number of variables, such as monthly factored volume and how long it takes for an invoice to get paid. Based on these, fees can range from 1.5% to 6%. Generally speaking, factoring is very affordable if your clients pay their in 45 days or less.

Factoring invoices is a great alternative for startups and established companies that have exhausted their bank resources. It's a flexible product that is tied to your sales performance, this means that you will not get a fixed line. If your sales increase, so does your financing. This makes receivables factoring, an ideal product for growing companies.

Why bankrupt consumers make good prospects

Jim Henry
Automotive News -- March 7, 2012 - 12:01 am ET

It may sound counterintuitive, but customers fresh from bankruptcy or whose cars are being repossessed can be highly desirable customers for lenders and dealers, say two companies that cater to what's politely known as the BK market, short for bankrupt.

That's because close to 40 percent of the customers who can be identified from publicly available U.S. Bankruptcy Court records buy a car within 30 days after their cases are discharged, according to OnlineBKmanager.com of Chandler, Ariz.

"Our focus is to work directly with franchised new-car dealers," said Robert Davies, company president, in a phone interview earlier this year.

The company mines court records to identify people who are approaching the point where they can buy a car again. Dealers and lenders can buy those leads and the company sends direct-mail pieces to the customers. OnlineBKmanager.com has about 800 dealers signed up and a growing number of lenders, Davies said.

For instance, the company announced in February that it had signed up with Prestige Financial Services, a subprime auto lender owned by Utah-based Larry H. Miller Group of Companies.

Tim Condon, CEO of Leap Financial, said in a recent interview that many of the customers who are in repossession or who go bankrupt have had a good credit history in the past.

"Probably half our portfolio are consumers who were prime customers prior to the recession and just hit a bad patch," he said.

Leap Financial buys cars from lenders that are in the process of repossessing them. The company leases them back to the same owners for a lower monthly payment. The lender gets more than it would if it auctioned off the car. The customer gets the car back -- with a GPS-based starter-interrupter that disables the car if the customer misses a payment.

Said Condon: "We get shockingly good results."

You can reach Jim Henry at autonews@crain.com. Readers are solely responsible for the content of the comments they post here. Comments are subject to the site's terms and conditions of use and do not necessarily reflect the opinion or approval of Automotive News. Readers whose comments violate the terms of use may have their comments removed or all of their content blocked from viewing by other users without notification.

View the original article here

We Turn
Auto Notes Into Cash!


Autobulk.com

Ally CEO: We have only 1 business -- auto

Jim Henry
Automotive News -- May 23, 2012 - 8:14 am ET
Ally Financial CEO Michael Carpenter: "We will reduce our cost of funds over time. We will free up capital. This will result in an even stronger auto franchise."

Ally Financial Inc. has one focus now, CEO Michael Carpenter says: U.S. auto lending.

That auto emphasis, in fact, is one of the reasons Ally's ailing mortgage unit, ResCap, filed for bankruptcy protection last week, he says.

As of the first quarter, Ally had relationships with nearly 14,000 U.S. dealerships, an increase of about 1,000 from a year earlier. Ally's biggest customers are General Motors and Chrysler Group. Ally is the preferred lender for both manufacturers.

Carpenter spoke about Ally's auto lending business last week with Automotive News Special Correspondent Jim Henry.

You've compared Ally to "category killers" in other industries. Your categories are auto lending and online banking. So ResCap was in the way?

We only have one business. It's a big business, and that's the auto franchise. Ally Bank is a very important part of how we finance it.

What makes Ally different from other banks?

Most banks, if you want subprime, they might say, "On Mondays, Wednesdays and Fridays, we do subprime; on Tuesdays and Thursdays, we do prime" or whatever. That is, when the market is good. But we're there every day.

But you're keeping your U.S. insurance operation, which includes extended-service contracts and other insurance-like F&I products.

Yes, we are. We believe in offering our dealer customers every financial product they need. We finance the entire credit spectrum. We offer leases and loans. We run auctions. We insure vehicles on the lot. We offer insurance products they can sell to their customers.

What's in it for dealers? Is it that if you can lower your cost of funds, you'll be able to offer lower rates?

It really is just about that straightforward. ... We will reduce our cost of funds over time. We will free up capital. This will result in an even stronger auto franchise. ... The reason ResCap went bankrupt, the reason we're selling the international operations, is to make the U.S. business even stronger.

You can reach Jim Henry at autonews@crain.com. Related LinksReaders are solely responsible for the content of the comments they post here. Comments are subject to the site's terms and conditions of use and do not necessarily reflect the opinion or approval of Automotive News. Readers whose comments violate the terms of use may have their comments removed or all of their content blocked from viewing by other users without notification.

View the original article here

We Turn
Auto Notes Into Cash!


Autobulk.com

Auto-loan delinquency rates plunge

Auto-loan delinquency rates in the United States have fallen to their lowest point in at least a dozen years, according to risk management firm TransUnion.

The percentage of borrowers who are at least 60 days past due on their vehicle payments fell to 0.36 percent in the first quarter of 2012, TransUnion says. That's the lowest rate since the firm started reporting the data in 1999.

Compared with the first quarter of last year, delinquency rates dropped almost 27 percent from 0.49 percent . From the fourth quarter of 2011, rates fell nearly 22 percent from 0.46 percent.

"Auto loan delinquencies continue to perform exceptionally," said Peter Turek, automotive vice president of TransUnion's financial services unit, in a statement.

Turek said he expects auto-loan delinquencies to remain low for the rest of 2012 because rising U.S. demand for new and used vehicles has spurred an increase in lending and leasing.

Still, Turek cautioned that "a slight increase from this record-low level would not be surprising and should not be construed as a negative event, as lenders continue to originate more loans to consumers across all credit risk levels."

Auto delinquency rates dropped in 43 states from the fourth quarter of 2011 to the first quarter of 2012, TransUnion reported. Last quarter, Montana had the lowest loan delinquency rate in the country at 0.15 percent. Mississippi, with a 0.77 percent delinquency rate, was the highest in the nation.

You can reach Joseph Lichterman at jlichterman@crain.com. Related LinksReaders are solely responsible for the content of the comments they post here. Comments are subject to the site's terms and conditions of use and do not necessarily reflect the opinion or approval of Automotive News. Readers whose comments violate the terms of use may have their comments removed or all of their content blocked from viewing by other users without notification.

View the original article here

We Turn
Auto Notes Into Cash!


Autobulk.com

Subprime tarnish fades, finally

Jim Henry is a special correspondent for Automotive News

Dealers have complained for a couple of years now about how long it's taking for subprime auto lending to bounce back.

Sure, the U.S. economy isn't growing as fast as we'd all like. But really, what's taking so long?

How about tarnish by association?

Part of the problem is that ever since the subprime-mortgage collapse, some investors can't bring themselves to buy anything with the word "subprime" in it, said John Di Paolo, principal of structured finance research at Prudential Investments. Di Paolo spoke last week at a conference sponsored by Standard & Poor's Ratings Services.

"Some investors, I don't think, will ever come back to subprime," he said. That's despite the fact that subprime auto loans performed pretty well through the recession and performed a much better than mortgages.

"People don't differentiate," he said.

While some investors have been turned off forever, the good news for dealerships is that many investors are now pouring money into subprime lenders, which the lenders are using to make new loans and grow again. Subprime accounted for 41.5 percent of U.S. loan and lease originations in the fourth quarter last year, up from 38.4 percent the year before, Experian Automotive says.

All indications are that the first quarter this year followed the same pattern, with an increase in subprime share.

Finally, subprime loans are starting to catch up.

You can reach Jim Henry at autonews@crain.com.

Related LinksReaders are solely responsible for the content of the comments they post here. Comments are subject to the site's terms and conditions of use and do not necessarily reflect the opinion or approval of Automotive News. Readers whose comments violate the terms of use may have their comments removed or all of their content blocked from viewing by other users without notification.

View the original article here

We Turn
Auto Notes Into Cash!


Autobulk.com

Chief consumer watchdog takes stage, stays mum on auto lending

Jim Henry is a special correspondent for Automotive News

It's too bad that the head of the Consumer Financial Protection Bureau, which prides itself on enforcing transparency in the finance industry, is opaque about its plans for the auto-lending segment.

Apparently, auto lenders and the franchised, new-car dealers they do business with are just going to have to wait and see, even though that's not the answer anybody wants.

At last week's Consumer Bankers Association convention in Texas, Richard Cordray, CFPB director, stuck to his prepared remarks. He didn't even mention the word "auto," although he did mention mortgages, credit cards, student loans and checking accounts.

The Consumer Financial Protection Bureau hasn't gotten around yet to any specific public statements on auto lending. That has done nothing to calm high anxiety among auto lenders and dealers about whether the bureau or other government regulators, such as the Federal Trade Commission, will review the common practice of dealer reserve on indirect auto loans.That's where dealers in effect mark up the customer's interest rate and share in the profits.

As Cordray headed for the exit at the convention, I asked him whether he could talk about the auto sector in general or specifically about dealer reserve. "I respect your right to ask," he said, "but I don't have any news to make on that today."

To be fair, the bureau is still new, and Cordray is newer still, having been appointed in January. Moreover, when the bureau was created in 2010, dealerships were specifically carved out of its jurisdiction. That potentially complicates any rules the bureau might contemplate regarding dealer reserve. Technically, any rules would be for lenders, not dealers.

Still, it was a disappointing appearance for anybody hoping for more details.

You can reach Jim Henry at autonews@crain.com.

Readers are solely responsible for the content of the comments they post here. Comments are subject to the site's terms and conditions of use and do not necessarily reflect the opinion or approval of Automotive News. Readers whose comments violate the terms of use may have their comments removed or all of their content blocked from viewing by other users without notification.

View the original article here

We Turn
Auto Notes Into Cash!


Autobulk.com

Bundling, dealer reserve may draw whistles on regulatory gridiron

Jim Henry
Automotive News -- March 28, 2012 - 12:01 am ET

Some items related to auto lending could come under scrutiny by government regulators, speakers at the Consumer Bankers Association convention in Texas said last week. And that could be cause for worry, they said.

1. Bundling: More F&I vendors and dealerships are packaging aftermarket products instead of pricing them individually.

Doug Ekizian, senior manager of the Consumer Finance Group at PricewaterhouseCoopers, said in a presentation on "enterprise risk management" that regulators might not like that.

"Aftermarket products should not be bundled in such a way as to obscure relative costs. ... The total cost of a product, including interest, points and fees, should be easy for a customer to understand," he said.

2. Customer complaints: The Consumer Financial Protection Bureau has launched a Web site, consumerfinance.gov/complaint/, for gathering consumer complaints about financing, including auto. But lenders say the auto finance complaint platform is overly broad. The CFPB has begun to exercise its jurisdiction over depositary institutions -- those offering checking and savings accounts -- but not nondepositary ones, such as captives and independent finance companies. Yet the site is open to complaints about all auto lenders. Lenders worry the site will attract complaints about companies the bureau isn't yet monitoring and can't do anything about. When those complaints aren't addressed, lenders fear consumers will blame them, not the bureau.

The CFPB hasn't said just how it will forward a consumer complaint to a lender that was the subject of that complaint.

"The list of complaints is building," Ekizian said. For example, he said, consumers have read about mortgage "modifications" to keep borrowers in their homes even when they're behind on payments. Some consumers are disappointed to learn auto lenders don't work the same way, he said.

Separately, the American Financial Services Association sent CFPB Director Richard Cordray a written complaint on March 13.

"When they created a credit card [complaint] platform, there was a lot of dialogue back and forth. We didn't see that" for autos, said Bill Himpler, AFSA executive vice president.

3. Dealer compensation: At roundtable discussions last year, the Federal Trade Commission heard repeated complaints about dealership scams such as "packing" cars with unwanted options and so-called yo-yo financing, in which the original deal falls through and the customer has to come back and sign a new and potentially more expensive contract.

Dealer reserve, in which the dealer arranges the financing and marks up the customer's interest rate to share in the profits, also came in for criticism.

Andy Koblenz, chief counsel for the National Automobile Dealers Association, said the industry has three good arguments why there's no need to create new regulations for some common complaints cited at the FTC roundtables:

• They're already illegal. This would apply, for example, to "packing" cars with unwanted options.

• They occur only rarely. For example, yo-yo financing. Consumer-advocate groups see this as a sneaky tactic to get more money. The industry sees it as a mistake most dealers probably prefer to avoid.

• They're based on old information. Overcharging for rustproofing was once a common complaint. Even though it's virtually unheard-of today, it still comes up as an example of shady dealer business practices.

None of those arguments applies to dealer reserve, though, Koblenz said. And that could make it a regulatory target.

"It happens all the time. Is it happening today? It is. Is it currently illegal? No," Koblenz said.

He said one legal argument in favor of today's dealer compensation is that it does no harm. If anything, he said interest rates on indirect loans negotiated by dealers are often lower than direct loans with no middleman.

You can reach Jim Henry at autonews@crain.com. Readers are solely responsible for the content of the comments they post here. Comments are subject to the site's terms and conditions of use and do not necessarily reflect the opinion or approval of Automotive News. Readers whose comments violate the terms of use may have their comments removed or all of their content blocked from viewing by other users without notification.

View the original article here

We Turn
Auto Notes Into Cash!


Autobulk.com

Learn how new U.S. rules will affect you

Automotive News -- May 23, 2012 - 12:01 am ET
Reynolds: Points out trouble spots

Auto dealers who have been watching regulatory developments will get some answers next month during Automotive News F&I Week -- a free online conference.

Carole Reynolds, a lawyer in the Federal Trade Commission's Financial Practices Division, will give examples of trouble spots in auto finance and leasing and explore topics from the FTC's roundtable last year on auto lending and related activities.

She will help dealers determine whether they're driving toward danger or steering clear of deceptive practices.

And Michael Benoit, a partner with the Hudson Cook law firm, will spell out what dealers need to know about the Consumer Financial Protection Bureau.

Although auto dealers do not fall under the bureau's direct jurisdiction, there are several ways the bureau can impact dealer behavior. Benoit will explore these issues and help dealers prepare for what may lie ahead.

Benoit: Preps dealers for future

Reynolds and Benoit will be part of a session called "Playing by the Rules -- Federal Regulation and Enforcement Workshop" on Wednesday, June 20, at 3 p.m. EDT.

The moderator will be Dave Robertson, executive director of the Association of Finance & Insurance Professionals, an Automotive News partner in the event.

Six F&I Week Webinars will be held, at 1 p.m and 3 p.m. on June 19, 20, and 21.

The event is designed for F&I managers and staff, dealer principals, general managers, sales managers and business development center personnel.

The sessions can be viewed live on attendees' computer screens or played back later on demand. To find out more about F&I Week or to register, go to fandiweek.com.

What: A free, online conference
When: June 19-21
Main events: Webinars at 1 p.m and 3 p.m. EDT daily
Sign up: fandiweek.com

Contact Automotive News

Related LinksReaders are solely responsible for the content of the comments they post here. Comments are subject to the site's terms and conditions of use and do not necessarily reflect the opinion or approval of Automotive News. Readers whose comments violate the terms of use may have their comments removed or all of their content blocked from viewing by other users without notification.

View the original article here

We Turn
Auto Notes Into Cash!


Autobulk.com

Lexus Explains How Two New Store Positions Are Targeting Better Customer Service

Lexus contends it is “raising the bar again” in regard to customer service by partnering with its franchised dealers to create two new certified store positions.

Announced Thursday, Lexus explained the vehicle delivery specialist (VDS) will introduce customers to their new units and review the features of each model.

Meanwhile, the brand highlighted the vehicle technology specialist (VTS) will serve as a resource for customers who have any questions about how to use the advanced functions of their vehicle, including the new Lexus Enform telematics system. 

Lexus group vice president Mark Templin reiterated that when the nameplate was established 23 years ago, it was dedicated to providing the best customer service experience in the industry. Templin stressed Lexus’ commitment to that goal is reflected in its top position in the J.D. Power and Associates Customer Satisfaction Index for 15 years, including the past four in a row.

The Lexus boss thinks these new dealership staff members can keep Lexus at its current customer service perch.

“With the advent of more technology in luxury cars, customers often have questions about their navigation system, establishing a Bluetooth connection for their phone or managing other telematics systems,” Templin explained.

“While we’re happy to answer their calls, we think it will be much more beneficial to have experts at our dealerships who can establish and maintain relationships with customers to answer any questions about their cars,” he continued.

With the launch of the new 2013 GS, brand executives said training for the VDS and VTS positions is now taking place across the country.

To emphasize the importance of these customer-facing positions, Lexus noted it is applying the philosophy of “takumi,” or master craftsman, to their jobs. Dealership associates are trained to treat customer service as a craft and are given advanced tools to help them go the extra mile with customers.

Lexus pointed out much of the training for the dealership associates is accessed through interactive iPad apps. The product information apps, including one specifically for the GS and also for Lexus Enform, include training exercises and are available for customers to download. Or, if a customer prefers, the individual can use iPad features like Facetime to contact their dealership and receive a remote personal tutorial in their vehicle. 

“Lexus customers are becoming more and more technologically savvy, and we want our dealership associates to be able to communicate effectively with them throughout the sales, delivery and ownership process,” shared Vince Salisbury, Lexus College dealer training manager.

“Customers can access the information on their own, come in to the dealership or contact their dealership via phone, e-mail or iPad to get the answers they need,” Salisbury added. “The idea is to give them what they want, when they want it and how they want it.” 

In addition to providing technical training, Lexus mentioned it is training dealership associates to recognize verbal and nonverbal feedback to customize each customer’s experience.

View the original article here

sell auto notes

Costco Auto Program & Subaru Team Up to Launch Shopper Promotion

Auto Remarketing | Costco Auto Program & Subaru Team Up to Launch Shopper Promotion

Search this site:

HOMEWHOLESALERETAILFINANCIAL SERVICESTECHNOLOGYTRENDSPROFILESAUCTION DIRECTORY Skip to Navigation Costco Auto Program & Subaru Team Up to Launch Shopper Promotion

March 29, 2012 | SAN DIEGO By Auto Remarketing Staff Subaru Legacy

In a partnership that could potentially help bring shoppers out to the lots, the Costco Auto Program — which provides members with savings on vehicles at more than 2,500 participating dealerships throughout the country — has teamed up with Subaru of America for a promotion that rewards Subaru buyers with a Costco Cash Card.

The Subaru Limited-Time Offer provides customers with a $500 Costco Cash Card for completing a member satisfaction survey after the purchase of an eligible Subaru through the program, officials explained.

The offer includes all new Subaru models, except for all BRZ, Impreza WRX and WRX STI models and is available through June 15. 

Perhaps made evident by the promotion, Subaru is one of the top 10 most-requested brands by Costco members, officials shared.

“Subaru is an iconic brand that stands for value, style and reliability,” said John Gleason, Costco services manager.

“Its steadily increasing popularity in terms of Costco member requests in recent years and the introduction of newly redesigned models, make the timing of this promotion perfect,” he added.

And this isn’t the first time Costco has teamed up with an OEM; they have had success in the past with this sort of promotion, as well.

Similar partnerships have developed with brands such as General Motors and Volvo Cars North America.

“Costco Auto Program expects this partnership to be beneficial for both Subaru in conquest sales and Costco members in the value offer on the vehicles,” the company noted.

And the two companies are expecting big results.

“As with the most recent Costco Auto Program promotion with Chevrolet and GMC, the company is expecting a more than 400 percent increase in the number of Costco members using the program to purchase a Subaru,” officials stressed.

Commenting on the news, Alan Bethke, director of marketing at Subaru, noted, “We are very pleased to partner with Costco Auto Program — a brand known for excellent value and customer service.

“And we’re excited at the opportunity to increase the visibility of our vehicles through this special promotion to Costco members,” he continued.

Offering some details on the promotion, Costco members can do the following to qualify for the promotion:
   
—Visit www.CostcoAuto.com/Subaru or call 877-746-7422 to register with the Costco Auto Program and locate a dealership participating in this promotion.

—Purchase or complete a factory order of an eligible vehicle between now and June 15.

—Submit a Redemption Form after purchase and complete a Costco Auto Program Member Satisfaction Survey to receive the Costco Cash Card by mail for use at their favorite warehouse.

In addition, all manufacturer rebates and dealer incentives publicly available at the time of purchase also apply.

For  more details, see www.CostcoAuto.com/Subaru.

 

Printer-friendly version Comments Post new comment Your name: * E-mail: * The content of this field is kept private and will not be shown publicly. Homepage: Comment: * CAPTCHAThis question is for testing whether you are a human visitor and to prevent automated spam submissions. What code is in the image?: * Enter the characters shown in the image. Most Popular

Ford Recalls More than 125,000 Sedans

ADESA Canada: Wholesale Decline Widespread

TrueCar.com Stirs Industry Debate

Other Links Contact UsSitemapAdvertising Info

View the Mobile Site

View the original article here

sell auto notes

CarGurus Highlights 10 Top Values for Used ‘Gas-Sippers’

CarGurus identified what the site believes are 10 of the best values for used-vehicle shoppers looking for optimal gas mileage at economical price points.

To pinpoint the top values on fuel-efficient used models, CarGurus editors focused their search on 2008 models which they thought are generally available with less than 60,000 miles and offer some of the best gas mileage ratings at prices less than $15,000.

CarGurus emphasized the importance of buyers moving quickly to benefit from the most attractive deals. The website’s in-house analysts noted that with increasing gas costs, average prices on small, fuel-efficient used cars are on the rise and expected to peak in August at levels 15 percent higher than in January. 

Despite this trend, the site’s data indicate there are values to be found in the used marketplace. 

“CarGurus was built to empower shoppers to find value and arm them with detailed knowledge about the used-car models that are right for them,” explained Langley Steinert, founder and chief executive officer of CarGurus.

“With costs of fuel-efficient models set to rise in price over the next four months, being able to identify the best deals in this segment gives buyers an important and very timely advantage,” Steinert continued.

The following is the list of 10 models with trim level, estimated overall, city and highway gas mileage and the CarGurus Instant Market Value:

CarGurus Top Values for Fuel-Efficient Used Models 2008 Chevrolet Aveo (Aveo5 LS)

View the original article here

sell auto notes

U.S. suggests Ally breakup, wants GM to buy captive finance unit

NEW YORK (Bloomberg) -- The U.S. Treasury, which put $17.2 billion into a bailout of Ally Financial Inc., has indicated it would prefer a breakup and sale of the lender -- including selling the company's captive finance auto business back to General Motors, its original owner.

People familiar with the matter told Bloomberg the Treasury wants to make such moves because it no longer believes an initial public offering of Ally stock would succeed.

General Motors previously owned Ally when it was known as GMAC. GM spokesman Jim Cain declined to comment on the report.

Treasury officials are telling Ally executives, directors and financial advisers that an IPO is unlikely soon because of the company's high cost of capital relative to other banks, the potential bankruptcy of a mortgage unit, and its recent performance in Federal Reserve stress tests, said the people, who asked not to be identified because the talks are private.

The Treasury instead is pushing for Ally to split into at least two pieces, the people said. One part would be Ally's auto-finance unit, one of the largest in the U.S., and the other would be its online banking business, which had almost $28 billion in retail deposits at year-end. Ally shareholder Elliott Management Corp. also recommends a sale, according to a letter sent to the board by Elliott and obtained by Bloomberg News.

Ally CEO Michael Carpenter and its board have resisted the Treasury's call for a split, the people said, adding that the department is reluctant to press Carpenter too hard for a sale out of concern about appearing as a heavy-handed owner. The Treasury owns 74 percent of Ally.

"We're supportive of management and continue to work closely with them," the Treasury said in an e-mailed statement. Matt Anderson, a department spokesman, declined to comment on Treasury's view of the IPO or the success of any potential sale.

'Fulfill our mission'

"Every action the company has taken and contemplated has been with the objective to fulfill our mission to support the auto recovery and fully repay the taxpayer's investment," Gina Proia, an Ally spokeswoman, said in an e-mailed statement. "This is what will guide our decisions going forward."

While no official Ally sales process has begun, the Treasury's views have been shared with Ally senior executives, directors and a number of the financial and legal advisers brought on to help pursue an IPO, the people said.

Ally was found to have some of the lowest capital ratios among 19 lenders in Fed banking stress tests released March 13.

Ally is likely to put Residential Capital mortgage unit into bankruptcy in the next few weeks and sell some assets in a court-supervised sale, people familiar with the matter said last month. The firm also may lose its preferred auto-lender agreement with automaker Chrysler Group, which is seeking out banks like Wells Fargo & Co. and Santander Holdings USA Inc. to potentially replace Ally, people with knowledge of the matter said last month.

GM as buyer

The Treasury has suggested Ally consider selling its captive-finance business to GM, said two of these people, with the rest sold to a traditional bank. GM and other companies aren't interested in buying any of Ally until it resolves ResCap's status, said another person familiar with the matter.

The U.S. determined that Ally was crucial to the survival of the auto industry during the financial crisis in 2008 and 2009 and provided multiple bailouts in return for a 74 percent stake.

Last year, when Ally was close to a public offering, it considered a joint bid from GM and Toronto-Dominion Bank, Canada's second-largest lender, until those discussions fizzled, a person familiar with the matter said last month.

Ally has financed about 6.7 million GM or Chrysler vehicles for dealers since 2009 and another 2.4 million for consumers, Proia said. Ally has so far paid $5.4 billion to the Treasury.

Ally executives depart

Many of the bankers Ally brought on to prepare for an IPO have been told an offering is unlikely, said two people familiar with the matter. Some of Ally's top people working on the IPO have said they'll leave.

Corey Pinkston, head of corporate debt and equity for Ally since January 2009, has announced his intentions to depart, Proia said in a separate telephone interview. Laura Hall, who works with Pinkston, will also be leaving.

Both executives still work at the company and have no specific departure date, Proia said. Jeff Brown, the senior executive vice president in charge of finance and corporate planning, will add Pinkston's duties to his current role.

Elliott Management, which owns 2.3 percent of Ally, is also pressing Carpenter, the board and their advisers to explore a sale. Its letter, and an accompanying plan, also urged Carpenter not to put ResCap into bankruptcy, saying the process will mean "radical value destruction," drag out for 12 to 18 months, and trigger billions of dollars in so-called put-back claims, where holders of mortgage-backed securities issued by ResCap try to force the company to buy back soured loans backing the bonds.

Elliott's alternative

The litigation would push up Ally's cost of funding and hurt its competitive position, the letter said.

The plan urges Carpenter to sell Ally Bank to another lender and says it could fetch $13.1 billion to $16.3 billion. The origination and loan portfolio, which provides loan and insurance to more than 18,000 car dealers, could then be sold for $10 billion to $12.5 billion, according to the document.

A transaction "in which ResCap is restructured out of court and Ally is sold to a strategic financial institution is the best option," the letter said. "This will create significant value for all constituents at a dramatically lower all-in cost with considerably less uncertainty and execution risk."

The plan suggests Ally should instead exchange ResCap debt for Ally debt and pay off the smaller number of put-back claims through monthly cash flow. A number of the put-back claims would go away in 2013 or 2014 due to a statute of limitations on such claims, according to the plan.

Carpenter, the Ally board and his advisers haven't responded to the proposal from Elliott, according to a person familiar with the matter.

"The fact remains that addressing the risks in the mortgage business is the key to successfully pursing any and all future strategies," Proia said in the e-mailed statement. She declined to comment on whether the company has seen the plan.

Contact Automotive News Readers are solely responsible for the content of the comments they post here. Comments are subject to the site's terms and conditions of use and do not necessarily reflect the opinion or approval of Automotive News. Readers whose comments violate the terms of use may have their comments removed or all of their content blocked from viewing by other users without notification.

View the original article here

We Turn
Auto Notes Into Cash!


Autobulk.com

NADA UCG: Wholesale Prices Remain Solid, Effects of Rising Gas Prices Evident

In the first installment of exclusive AuctionNet Wholesale Price and Forecast Data provided by NADA Used Car Guide to Auto Remarketing, wholesale prices remain consistent, but the effect of rising gas prices is “undeniably evident,” the organization stressed.

And some segments, though not normally thought of as gas sippers, are also benefiting from the spring season.

Mid-size vans continue to “benefit not only from lift normally associated with the spring selling season, but also from an ongoing reduction in supply and the versatility (capacity and relative fuel economy) the segment has to offer,” NADA Used Car Guide explained.

The two-week average rate of growth in wholesale prices for this segment led all other segments by 3.8 percent, according to the organization’s AuctionNet data.

And NADA UCG expects wholesale prices for this segment to rise by 3 percent, or $475, over the course of this week.

Following closely behind, the rate of growth for compact car and mid-size car segments has made significant jumps, as well, perhaps reflecting the recent climb in gas prices.

The compact car segment wholesale prices jumped 3.7 percent, and the mid-size car segment saw a rise of 3.2 percent.

“Price growth for the current week is  expected to slow somewhat to 2.5 percent for the compact car segment and 1.6 percent for the mid-size car segment,” NADA Used Car Guide further explained.

On the other hand, indicative of the season change and fuel-price trend, large pickup, large SUV and luxury utility prices have fallen behind other segments.

And NADA UCG analysts expect prices for large pickups and luxury utilities to stay relatively flat.

But large SUVs are expected to see more of a change, falling by 2.3 percent, or an average of $600, the organization concluded.

4- and 2-week AuctionNet wholesale average prices are created by collecting all AuctionNet records for vehicles up to five years of age for a specified period of time.  Prices are then adjusted for changes in mileage and mix.

Current week prices are forecasted based on NADA's proprietary used vehicle value model which includes assumptions for new vehicle prices, used vehicle supply, gasoline prices and other economic factors.

Average AuctionNet® Wholesale Price

Editors Note: Auto Remarketing will be receiving these AuctionNet data updates weekly. Keep an eye out for the next installment in your Auto Remarketing Today e-newsletter.

View the original article here

sell auto notes

Edmunds.com: Loosening Credit and Rising Gas Prices Bring Shoppers Back to Lots

As credit loosens, confidence in the economy improves and gas prices climb, consumers are heading back to the lots, according to the sales forecast from Edmunds.com. 

As these factors drive rising auto sales, analysts contend that after “delaying purchases” over the last couple of years, shoppers will “march” back to the lots, contributing to what Edmunds.com has predicted will be 1,451,956 new-car sales this month.

This translates into a SAAR of 14.9 million units and would mark a 26.4-percent increase from February and a 16.5-percent increase year-over-year.

And an estimated 3.64 million used cars will be sold in March, for a SAAR of 38.3 million units (compared to 3.55 million – or a SAAR of 39.2 million – used-car sales in February), according to the company's data.

“After delaying purchases over the last couple of years, consumers are eager to jump into the new car market,” said Jessica Caldwell, senior analyst at Edmunds.com.

“Vehicle trade-in rates have achieved sustained highs in recent months, which suggests that consumers have decided that they’ve held on to their cars for too long. And with the average credit score for new car buyers at its lowest level since the first half of 2008, the market is clearly becoming a friendlier place for all buyers,” she continued.

Breaking the data down further, Edmunds.com estimates that retail SAAR will come in at 11.8 million vehicles in March, with fleet transactions accounting for 20.6 percent of total sales.

And as fuel prices climb, shoppers are turning to gas sippers, analysts noted.

“The market share of subcompact and compact vehicles is expected to climb 11.0 percent and 5.8 percent, respectively, from February to March,” Edmunds.com predicted.

“Midsize market share is also projected to climb 2.3 percent over the same period,” analysts added.

And as for market share by automaker, Chrysler continues its upward momentum, with its year-over-year sales and market share set to rise more than any other major auto manufacturer, the company explained.

Chrysler is expected to sell 164,000 vehicles in March, marking a 34.9 percent rise from last year.

Moreover, the OEM’s anticipated market share of 11.3 percent this month is a 1.5-percentage point  rise year-over-year.

And as for the Japanese manufacturers, Toyota is set to be the big player, which Edmunds.com contributed in part to “healthier inventory and favorable pricing.”

Edmunds.com expects Toyota sales to increase 22.1 percent year over year, with a 0.7 percentage point boost in market share, officials concluded.

Edmunds.com also offered the following charts to illustrate its findings:

 

View the original article here

sell auto notes

MAX Systems: Is the Internet Pressuring Gross Profits?

            



   MAX Systems: Is the Internet Pressuring Gross Profits?       
February 21, 2012 | CHICAGO By Jacob Solotaroff                    
In a pre-NADA convention survey of dealers nationally, more than two thirds indicated that they are concerned about the Internet pressuring their Gross Profits. Are you one of them?
According to the survey, 67 percent of dealers are concerned about the Internet putting pressure on their gross profits.
Many in the industry feel that the explosion of online car listings and research tools — and the strong adoption of them by car consumers — is commoditizing their inventory.
But there are ways to make the Internet work in your favor, and in order to maintain volume and gross profit, dealers have to get with the program.
To succeed in an online-driven world, dealers must differentiate their inventory; not only to drive traffic to their lot, but to prove the value they add and therefore justify the price.
Online listings must not only answer consumers’ most pressing questions, but also prove that claims about a car and dealership are true, with awards, expert reviews and ratings, book data, and dealership accolades.
This builds trust, which in turn has the power to increase profit margin. Despite these ongoing challenges, the future looks bright, and dealers are excited about the year ahead: 89 percent of respondents are optimistic, very optimistic or extremely optimistic about the impending performance of their dealership in 2012.
To see this column and others from the "Get Relevant or Die" blog from MAX Systems, visit here.


Printer-friendly version Comments Submitted by Anonymous (not verified) on February 22, 2012.
The Internet has essentially made consumers feel that they actually know what vehicle values are in the used market. It gives them information and a false sense of transparency. They are not looking at hundreds of vehicles per week, seeing the decrease in quality supply, spending 300% more in recon costs to maintain a quality used inventory in order to statnd behind that inventory for the maintenance of a 23 year reputation for honesty, quality and integrity. In my experience, some consumers are only beginning to realize that there is a shortage of low mile desirable units to chose from, particularly among small independent dealers servicing the middle class. Most consumers, not believe that they have valid knowledge about the value of the kind of vehicle that I sell. 23 years of repeat customers still trust us bu outsiders, now coming from greater distances, haven't seen the reviews or our website. They go directly to the third party sites like AutoTrader, Cars.com and Craig's list and then pick up the phone or come in and often tell us the car is over priced because they got their values from Kelly Blue Book rather than the NADA guide or they have no clue about what the wholesale market is doing. It's amazing how many people walk up to a frontline ready, 100% green light unit that's valued at $10,000, balk at the price and then say they were looking to spend three thousand. They then assume we have thoussands of dollars in the margin to negotiate, when in fact we have perhaps a few hundred if we take the free service contract off. Your article is spot on correct. We must adapt but the small independent is spending more time than ever trying to find and put out a unit that he is proud to put his name on plus, he's spendiing more time than ever trying secure financing for the credit challenged consumers, who are rapidly becoming the majority rather than the minority they once were. Two years ago, a dayspent shopping for inventory could yield 8-10 of our kind of inventory. It now takes four days to do the same thing and we have to go further to get them. The problem is that that the consumer thinks that they know more than the dealer. Not knowing the truth about the market and having a lack of experience in the market, while being armed with too much information that they cannot possible assimilate accurately, is making an already difficult business even harder. Those with deep enough pockets will survive but the future of the industry in my estimation, is one where the franchise dealer will control the consumer's future. They will be the used car dealer, with access to the best trades. The rest will be Buy-here-pay-here dealers to service the credit challenged population. I read that there are about 22,000 franchise dealers nationwide and 33,000 buy-here-pay-here dealers recently. I the end.....the consumer will have plenty of tools but fewer options. We are trying to adapt in all the ways you mention and the reasons you mention in other articles regarding our challenges are correct but yet there is so much more to adapt toward. Thanks, former senate aide, global circumnavigator, legal analyst, journalist, MPA turned independent car dealer.
reply Post new comment Your name: * E-mail: * The content of this field is kept private and will not be shown publicly. Homepage: Comment: * CAPTCHAThis question is for testing whether you are a human visitor and to prevent automated spam submissions. What code is in the image?: * Enter the characters shown in the image. Most Popular
TrueCar.com Stirs Industry Debate
Sparkling City San Antonio Sees Record Anniversary Sale
Ford Recalls More than 125,000 Sedans

Other Links Contact UsSitemapAdvertising Info


View the original article here


sell auto notes

Mazda Partners With Latest Dr. Seuss Film

While some automakers kicked off advertising campaigns employing the help of comedians turned TV stars, 1980s rock legends and a cinematic icon known for his cowboy-like grittiness, Mazda has taken a different route.

It is turning to Dr. Seuss.

Mazda North American Operations has struck a deal with “Dr. Seuss’ The Lorax," which is the film adaption from Universal Pictures and Illumination Entertainment of Seuss’ famous book.

The automaker rolled out a co-branded spot Friday featuring the 2013 Mazda CX-5 that highlights the SKYACTIV TECHNOLOGY designed to boost fuel economy while maintaining performance. There is a 30- and 45-second version of the commercial.

In the ad, the small crossover explores the film’s “Truffula Valley” and encounters some of the film’s animals, including The Lorax himself.

As part of the partnership, on Monday, Mazda is donating $25 to the National Education Association for every test drive taken (up to $1 million) during a six-week span that began Monday. This will benefit NEA’s Read Across America Program.

Explaining more, NEA will tour the country during the “Read Across America Tour – Driven by Mazda” talking to students about the book. Mazda is providing SKYACTIV-equipped CX-5 and Mazda3 units that feature the program’s graphics.

“We’re proud to be working with so many talented individuals to bring to life this wonderful partnership with Universal Pictures and Illumination Entertainment's 'Dr. Seuss’ The Lorax' movie," said Don Romano, chief marketing officer at MNAO.

“We take a strategic approach when it comes to partnering with other companies and with the launch of our all-new, fuel-efficient, performance driven SKYACTIV TECHNOLOGY, this seemed to be a natural fit. The collaboration and integration that went into creating these custom-animated spots featuring the Mazda CX-5 with SKYACTIV TECHNOLOGY driving through 'Truffula Valley' is unprecedented,” he continued.

Illumination Entertainment founder and chief executive officer Chris Meledandri added: “The Lorax character's view of the environment fits in exactly with Mazda and SKYACTIV TECHNOLOGY, so the two were a perfect match for a commercial. By staying true to who the Lorax and other 'Truffula Valley' animals are we were able to create a fun and engaging spot.”

And when the film launches on March 2, theaters carrying PG movies will run the 30-second ad.

Additionally, there will be digital elements and social-media applications getting the word out about the film partnership, as well as the Read Across America Program.

View the original article here

sell auto notes

Manheim to Purchase Dealer Services Corp.

Auto Remarketing | Manheim to Purchase Dealer Services Corp.

Search this site:

HOMEAUCTIONWHOLESALERETAILFINANCIAL SERVICESTECHNOLOGYTRENDSAUCTION DIRECTORY Skip to Navigation Manheim to Purchase Dealer Services Corp.

January 27, 2012 | ATLANTA By Auto Remarketing Staff Sandy Schwartz, Manheim

On Thursday afternoon, Manheim revealed it is purchasing Dealer Services Corp. of Indiana in an effort to “reinforce its commitment to provide inventory financing to independent dealers.”

The deal is designed to complement the lending Manheim already offers via its financial services arm — Manheim Financial Services.

“Manheim is always looking for ways to enhance its service offering to customers,” explained Sandy Schwartz, Manheim president. “The purchase of DSC presents a great opportunity for us to broaden our lending scope and customer base. In addition, we gain access to state-of-the-art technology and digital tools that will enhance our customers’ experience and improve the company’s efficiencies and opportunities for lending.

“We also gain a group of employees at DSC that have a strong culture of customer focus and service, adding to the high level of personalized service our MAFS employees deliver,” he continued.

Also chiming in was Brian Geitner, chief executive officer of DSC, “Our mission of empowering our customers with strategic products and services is only more enhanced by joining the Manheim group of companies. It’s easy to see how MAFS and DSC’s service platforms will complement each other and broaden Manheim’s ‘service reach’ across the country.

“We are proud to add the DSC brand to Manheim’s strong lineup of products, services and companies,” he continued.

Management explained that adding the DSC line to MAFS’ existing products will give dealers access to a broader offering of products and additional staff to help with their needs.

Moreover, technology will be garnered by Manheim as a part of this deal, making it easier for customers to get information via smartphones and desktops regarding their company lines of credit, officials said.

Barclays Capital acted as the financial adviser to Manheim, while William Blair & Co. acted as the financial adviser to DSC.

Pending regulatory approval, the transaction is slated to close within the first quarter.

Editor's Note: Stay tuned to Auto Remarketing for more insights into how this deal will impact dealers and the market.

Printer-friendly version Comments Submitted by rob (not verified) on January 27, 2012.

Manheim buys DSC

reply Submitted by Anonymous (not verified) on January 27, 2012.

If you are an independent dealer and are looking for Capital, go to www.carfinancial.com and let the professionals at CAR Financial help you work out a plan. They have both wholesale and retail options, from floorplans to BULK purchases and streams of payments to point of sale financing. WWW.CARFINANCIAL.COM

reply Submitted by Anonymous (not verified) on January 27, 2012.

What this means is that the independent used car dealers have ONE LESS floor plan company to go to. From the already limited number of available options that exist today, there will be one less choice for them when this deal closes which consequently may impact some independent used car dealers to the point of shutting their doors.

reply Post new comment Your name: * E-mail: * The content of this field is kept private and will not be shown publicly. Homepage: Comment: * CAPTCHAThis question is for testing whether you are a human visitor and to prevent automated spam submissions. What code is in the image?: * Enter the characters shown in the image. Most Popular

AutoNation & Company Founder to Help Fund Scholarships for Disadvantaged Students

Recovery Compliance Solutions to Verify Windsor Equity Group’s Recovery Agents

Nissan and Microsoft Partner to Build New DMS

Other Links Contact UsSitemapAdvertising Info

View the original article here

sell auto notes