Archive for August, 2011

10
Aug
11

What’s Affecting Used Car Supply & Values. . .

According to Kelley Blue Book the increase in used car prices will not only continue to rise but inventories will get even tighter. Kelley Blue Book sees auctions as a vital predictor of what’s to come in the used car market. They are where supply and demand meet for used vehicle market and what they’re seeing in auctions is less used vehicles to choose from and higher wholesale prices.  The reason for that is due to the 2008 slow down in new car sales which is now resulting in shortage of used car inventory. If companies and dealers are able to look at auctions as indicators of what is to come, they can plan on how to prepare and also how to take advantage of the current used vehicle market and their inventories. The effects of the 2008 new car sales slowdown which caused wholesale used car prices to go up is expected to continue to drive these prices higher since inventory will get even tighter.

To read the full article in Auto Remarketing, please click here.

04
Aug
11

High Wholesale Prices Effecting BHPH

High wholesale prices on used-vehicles has effected all in the used car market especially the buy-here, pay-here market. The combo of finding reliable used vehicles that can actually be financed at an affordable monthly rate can be tricky. According to Manheim’s annual Used Car Market Report, BHPH dealers are often paying $2,000 more for a car than a couple of years ago. This leaves BHPH dealers with the choice of  (if they can afford the higher priced vehicle) buying it in hopes they can sell it at the higher price or adjusting the financing to lengthen the loan terms which would place them at higher risk. 

Overall the annual report found that regardless of the collections or underwriting that the BHPH dealer had or has, what separated a successful BHPH dealer from one that isn’t doing so well is the vehicles that they have in inventory. When the cars are in good condition and affordable it means less time and money the BHPH dealer has to absorb due to mechanical breakdown and issues.

To read full article in SubPrime Auto Finance News, please click here.

02
Aug
11

Developing Your People

Dealer management involves much more than just customer management, there are the people who work for you and with you that can account for the majority of the success you can have. Having the right people on your team can make all the difference and much of the success can be developed internally by both management and the sales team. There are many examples of what successful organizations do and how they succeed, here are a few examples of things they have focused on:

  • Recruitment
  • Training
  • Promote from Within

These are all simple things that are probably not given enough focus on a daily basis in many businesses, how about yours?

To read full article in Dealer Business Journal, please click here.




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