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.




Calendar

July 2019
M T W T F S S
« Nov    
1234567
891011121314
15161718192021
22232425262728
293031  

Subscribe to get Email Notices

@DealerCenter on Twitter