Posts Tagged ‘used car dealer news

02
Jun
11

Demand for used cars continues. . .Dealers urge consumers to trade-in now

The effects of the Japan earthquake and tsunami continue to be felt, especially in the automotive industry worldwide. Supply of used vehicles is getting so tight that dealers are now reaching out to customers and urging them to take advantage of great trade-in values on their used vehicle. Prices of used vehicles are now up almost 30% since last year says NADA analyst, so this is one of the best times in history to trade in a car or truck. Right now it truly seems to be a win-win situation; the dealers (need) get the inventory, and the customer get’s the most money for their car, so both parties win.

To read full article on NADAFrontPage.com and watch the TV interview program “AutoFocus”, please click here.

17
May
11

Auction prices up but retail demand not there yet

As more time passes we see more and more of the effects of the expected decline in new car inventories. At auctions, prices for used vehicles rise as more dealers attempt to prepare for a shortage of new vehicles in the market. The anticipated shortage is of course a result of the devastating earthquake and tsunami that hit Japan in March, that has had a major effect on vehicle production. So far, retail demand for all the used vehicles that have been purchased at the auctions, hasn’t caught up. The dealerships anticipate demand months out while consumers won’t see this as an issue for a few months to come. This combo may have used vehicle auction prices dropping and causing a used car bubble. Although there is fear and anticipation of a used-car bubble, wholesale used vehicle price continues to rise. For the month of June, NADA Used Car Guide raised its suggested price of small vehicles by about 10% from May prices.

To read full article on 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
Sep
10

Used Car Prices on the Rise

Edmunds.com has reported that the used car prices over a large area have increased dramatically.  They believe that this could have to do with supply and consumer confidence.  Consumers are hesitant in buying new cars because of their high cost which is not good for the new car market, but is leading to more sales in the used.

Depending on the analysis the used car price is either staying the same or rising.  A three year old car may cost a lot more than it did last year, although, a two year old car in 2009 currently costs more than a three year old car in 2010 due to the supply.  What is going to happen 2 years from now when the results of last year’s 11 million of new cars are felt?

Do you agree with this?  Let me know by leaving me a comment.

To read more on Keith’s Used Car Blog, please click here.

18
Aug
10

Auto Dealers are Dealing with Shortages on the Trendiest Car Models

A few years ago automakers started to give dealers much more cars than the dealers felt they were able to sell.  The only way they could sell these vehicles was by offering extreme discounts.  Nowadays dealers are saying that they have a completely different problem:  they are not able to get enough or the trendiest models.

Vice President of Galpin Ford in Los Angeles, Beau Boeckmann, said that they asked for 100 Fusion vehicles, but only received seven.

“I am begging for inventory across the board,” Boeckmann said. According to Bloomberg news reports his dealership is Ford’s top seller. He said that he couldn’t sleep a year ago because they thought they had that year’s supply of cars.  And these days he is worried about the opposite because now he doesn’t feel they have enough vehicles.

There are many different cars that are hot right now for various reasons.  The hot cars are really the ones that the buyers are very eager to get.  The Chevrolet Equinox has been in very short supply for many months probably because it is a crossover and that is a good size for many people and has great features.  This new problem of not enough supply is quite a new phenomenon from the prior years.

Buyers are not able to have the car choices they use to have.  About five years ago the automakers were not shutting down the plants they kept them running even though the demand wasn’t necessarily there for the cars produced.  Detroit’s Big 3 has shut down a bunch of plants and thousands of jobs have been lost to make their production fit with the demand.

Automakers are very aware of the dealer’s requests for the hot vehicles.  They have increased shifts to the plants that have the trendiest model cars.  Although these changes seem to not be enough to fill the depleted inventories the dealers are facing.

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

05
Aug
10

This Year over 2 Million Vehicles Are Going to be Sold on Social Network Sites

No matter what your thoughts are on social networking, it is here to stay.  It is a very effective tool in the sale of a car and dealers should really use it to their advantage.

It is very hard to obtain hard numbers to contribute to the sale of a vehicle due to a social media outlet such as Facebook and/or Twitter.  According to Forbes the US is on the track to sell more than 2 million vehicles, the majority of them being used through sites such as Craigslist. 

Social networking sites are based on connections or friendships that people have with each other, which implies an essence of trust.  When a person sees a Facebook post or a tweet, even if they are not it the market to buy a vehicle, they are likely to remember the post and it will help with branding of the dealership and a possible sale of a car.  For most people it is very important to trust the dealership and sales personnel when buying such an expensive purchase and social media will help in establishing that trust.

Past the whole trust aspect there is the rise in digital media over print.  Most people go to the computer when looking for a car than classified ads.  Print media is somewhat a thing of the past when trying to sell a used vehicle.  Twitter and Facebook give you the ability to get your message out to thousands of people and it is free!  The tweets and posts are instantaneous and can be updated regularly as well. 

To read the full article on The Car Connection site, please click here.

26
Mar
10

Black Book Finds that the Car Segment is Going in a Positive Direction

The managing editor of Black Book, Ricky Beggs, stated that the overall car segment finally showed an increase.   With a positive performance percentage wise for the upward value this week.  This is the fourth straight week that there were positive adjustments.  Beggs stated that, “the end-of-the-week adjustment reports indicated a significant number of daily, and thus total weekly, adjustments — almost 11,200 for the week.”  The car segments that didn’t show a positive increase are the luxury and prestigious level of vehicles.   Beggs explained that, “as a whole, the combined car segments finally broke into positive territory this week.  With a steady climb towards actual appreciation for eight of the last nine weeks, this week finally showed an increase of $13.01, with eight of the 10 car segments finishing in positive territory.” The truck segment showed a slight climb as opposed to the full-size crossover which went down. 

Have you noticed a positive change in performance at your dealership?

To read the full article on Auto Remarketing please click here.




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