Posts Tagged ‘auto industry news

10
May
11

Costs of owning & operating a vehicle have gone up

It probably isn’t a surprise to most of us that the cost of owning and operating a vehicle in the U.S. has gone up this year according to AAA’s 2011 “Your Driving Costs” study. What might be a surprise is that gas wasn’t the cost leader. Even though it seems like gas prices are constantly on the rise the biggest cost culprit this year: tire costs with an increase of 15.7%. Gas prices came in second with an increase of 8.6%. Although we have many more cars in the market and on the road that aim for fuel efficiency, it’s still not enough to truly offset what seems to the be the ever-increasing price of gas. The one factor that had the highest cost this year that many consumers often forget about is depreciation. Every year sedans depreciate by approximately $3,728 and that is up by 4.9% from last year. There is a bright side to all of these rising costs;  maintenance and insurance costs are both down for this year. And as you probably could have guessed; if you own a small car it costs less to own and operate, $8,776 per year versus a SUV that can cost up to $11,239 for the year.

AAA does this study every year. To read the entire article in AAA Newsroom, please click here.

25
Apr
11

used car sales & prices on the rise

Looks like the cost of used cars, particularly compact used cars is anticipated to continue to rise. According to NADA, since January the trade-in value for compact cars has gone up by 10% compared to only a 4% rise in 2010. Factors that are contributing to this rise are not only gas prices and the want for more fuel efficient vehicles but also the auto production slow down caused by the Japan earthquake and tsuami. It’s expected that the cost of compact and or fuel efficient vehicles will continue to rise until the production problems are solved in Japan. The shortage of new car availability is making consumers look to the used car market for both fuel efficient vehicles and more selection. This can either be a great time to trade-in your vehicle or a time to hold on to it.

To read the full article in the Dayton Daily News, please click here.

14
Apr
11

Nowcom Assists with Regulatory Compliance

Is your Dealership Red Flags Rule Compliant? Does it have to be? YES!

As of Jan. 1, 2011, it was official. All dealerships that do indirect lending have to be Red Flags Rule compliant according to the Federal Trade Commission (FTC), so the time to make your dealership compliant is now. You don’t want to be caught without a system in place and even more importantly you don’t want to leave your dealership open to identity theft or possible fraud. The question is, where to start?

Let’s begin with the basics. A Red Flag is any identity theft warning sign. Implementing a program to be Red Flags Rule compliant can be manageable and helpful for your dealership to prevent fraud, identity theft and, of course, be compliant. To identify and detect Red Flags and maintain Red Flags Rule compliance, Experian has designed a comprehensive and market leading fraud management platform, Precise ID.

To read the full Nowcom article at Dealer Business Journal, please click here.

13
Apr
11

Dealer-Assisted financing – a great thing according to NADA

During an all-day roundtable that the Federal Trade Commission (FTC) had this week in Detroit, NADA noted the importance that dealer-assisted financing has on the financing process for consumers, saying it has extraordinary value. The NADA rep outlined in detail how just having it there gives more options to consumers, creates a more competitive environment, had possibility of offering consumers competitive rates and gives “unbanked” consumers that otherwise wouldn’t be able to secure financing a means to get transportation. In many cases, even if consumers don’t choose the dealer-assisted financed option, it still provides a huge benefit.

The all-day roundtables are targeted at examining consumer protection issues related to 5 areas of vehicle leasing and sales. This roundtable and a few others are created to help the FTC figure out how they should exercise the power they’ll be assuming to issue rules prohibiting unfair and deceptive acts or practices (UDAP) by auto dealers under the Dodd-Frank Wall Street Reform and Consumer Protection Act.

To read the full article on NADA Regulatory Affairs, please click here.

12
Apr
11

automaker inventories affected

 

This month U.S. dealers will probably begin to see an effect on their car inventories, particularly small cars, due to the overall halt in production in Japan. It’s now been a month since the major earthquake and tsunami hit Japan, effecting global production and forcing the shutdown of assembly plants. Among the many, many obvious problems these natural disasters have caused, they have also had a dramatic effect on global auto production.  Some of the consequences of these shut downs; days in inventory numbers are down from last month and depending on the automaker down to as low as 22-day supply  (Kia cars) and 23-day supply (Ford Focus). Many other automakers, such as Toyota Motor Sales, American Honda and Ford Motors, are at less than 60-day supply which is considered ideal. As days in inventory numbers decline automakers such as Toyota are being proactive and prioritizing distribution by  managing inventories in hopes of ensuring that high-demand vehicles such as the Toyota Prius remain available.

Even with all the effects that the Japan earthquake and tsunami have had on global production most see the production disruption as short-term and not having a major effect in the long run. Both GM and AutoNation have kept their forecasts for the remainder of the year the same. On the other hand the consulting firm of IHS Automotive sees an American auto production shut down like the one seen in Japan auto production just weeks away. They see that non-Japanese automakers will have their own product shortages by summer. Overall it looks like automakers, both Japanese and non-Japanese will continue to see effects but for how long and how dramatic remains to be seen.

To read the entire article in Automotive News, please click here.

04
Apr
11

used car prices still moving up

Looks like they expect used car prices to continue to go up. Due to the impact that the Japan earthquake is having on auto production, it’s anticipated that used car prices will continue to rise, particularly on small used cars. Over the last couple of weeks there’s been an 11% increase in the wholesale prices of used compact cars, and midsize cars went up by 8.5%. NADA pricing service said that the price increase for small to medium cars will most likely continue to rise since they’re the closest substitutes for the Japanese new cars. As expected, gas prices have also played a role in the trade-in value of smaller cars, so combine that with the effect that the earthquake in Japan has had on auto production and we will most likely continue to see an increase. Toyota and Nissan said that they don’t anticipate being back up to full production in Japan until April 11.

To read the full article in USA Today, please click here.

01
Apr
11

NADA University Launches “Dealer Pain Points”

Last week NADA University launched a new website “Dealer Pain Points”. This new site features video training series aimed at helping dealers by showcasing different scenarios that they may encounter that can affect their business, performance and profitability. These tips and strategies come from NADA University experts to assist dealers in their daily operations to be better prepared and more importantly better perform. Some of the featured videos include:

Each “Pain Point”  also has an interactive PDF recap. 

To read full article on F&I Magazine please click here. For more about NADA University please click here.

31
Mar
11

Industry experts optimistic

The outlook was optimistic at the Conference of Automotive Remarketing that was held in Las Vegas earlier this month. Overall the panelist see the industry in a growth mode and even with the increase in gas prices, the current and  anticipated growth is projected to have a positive impact. Some of the factors feeding the optimism include: the three automakers in Detroit are all showing an increase in profits, more competitiveness in the market, lending has loosened up allowing consumers to get loans and more knowledgeable consumers. Ricky Beggs, managing editor of Black Book sees many positive signs including the fact that dealers today are planning where the market is going instead of reacting, stating that tools like inventory management systems are also helping dealers.

To read the full article on Used Car News, please click here.

Do you see this optimism lasting? How much of an effect will gas prices have?

10
Jun
10

The 5 Best New Crossover Vehicles

The crossover has become America’s new popular vehicle because of its versatility.  Crossovers are mix of SUV and a station wagon.  Although crossovers do not have much off road capability they are great for families due to their spacious frames. The first crossover vehicle that was released in 1996 is the Toyota Rav 4 soon after that many other crossover vehicles emerged.  The new crossover category was established based on the wide popularity of this vehicle sector. 

The below list was composed by MSN, of the best crossover model released since the 2007 model year.  These vehicles are not necessarily known for their off road capabilities, but are best used for activities like family vacations. 

5 Best New Crossovers

2010 Audi Q5- The Audi Q5 is one of the best handling crossovers on the market today.  The Q5 is a spacious vehicle that seats 5 passengers.  The vehicle is powerful with a 270 hp 3.2 liter V6 engine making the car accelerate from 0 to 60 mph in a mere 6.7 seconds.  For the luxurious brand $37,000 is a pretty good deal for a car of its class. 

2010 GMC Acadia- This 8 passenger vehicle offers a very sophisticated handling for a vehicle of its size.  The interior is very classy and spacious with 117 cubic feet.  The crossover is able to tow up to 5,200 pounds.  This vehicle is a pleasant ride for transporting a family around town.  

2010 Ford Flex- The Ford Flex is a very unique with its boxy shaped exterior.  The vehicle is able to seat up to 7 passengers with 83.2 cubic feet of space.  The car is powered by a 262 hp 3.5 liter V6 engine.  The crossover has the ability to tow up to 4,500 pounds which is pretty impressive for a car of its size. 

2010 Hyundai Santa Fe- The Hyundai Santa Fe is a very attractive crossover with is curvy body shape and sharp lines.  The 2010 is the last generation of the midsize model platform.  The vehicle is ideal with its 4 cylinder V6 engine and spacious seating for up to 7 passengers.  Although this vehicle is almost as big as many midsize SUV the price tag isn’t nearly as big. The crossover is not short on soft surfaces and detail providing a sophisticated interior. 

2010 Volvo XC60- The Volvo XC60 model has been around since 2003.  When you are driving in this car you know that you are in a safe vehicle.  It was the first car to offer Roll Over Stability Control which helps with rollovers by giving electric stability. The crossover offers City Safety which is a feature that can detect accidents at speed of 19 mph or less and automatically puts on the brakes to help prevent a crash.  The car has a $37,000 price tag and is powered by a turbocharged 281 hp 3.0 liter inline six engine. 

Do you agree with this list?

To read more about this on MSN please click here.

28
Oct
09

Auto Dealer Social Networking Website

I just joined this social networking website for people in the auto industry at autodealerpeople.com.  I really was notauto dealer sure what to expect from it, but I have grown to really enjoy this website because it has an array of interesting discussions, news, and industry events.  In the discussions people will bring up various industry topics and you have the ability to comment on them.  You can also live chat with people that are members, allowing you to get instant responses.  It is a lot like Facebook, but with only industry people making it more tailored to your needs and interests.  I really suggest you become a member and if you do ask me to be your friend!




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