Posts Tagged ‘used car news

12
May
11

Getting a Good Deal on a Used Car

Many consumers that are in the market for a used car will find that they really are going to have to shop smarter and do even more homework before buying. With factors such as the recession and parts shortages caused by earthquake and tsunami in Japan the used car market is getting squeezed and supplies are, and will continue to be affected. In the past 6 years this is the highest that used car prices have been and it looks like supplies will continue to be limited for another two years.

Kiplinger offers advice on how to get the best deal on a used car. They recommend the following strategies to find the values and negotiate a good deal. First, you must know what is important to you: is it fuel economy or space? Do you want a small car or need a truck? Mark Scott from AutoTrader.com recommends looking at cars that have recently updated their design. If the latest model has a new look than previous models are likely to be priced lower. Secondly, shop smart and start your search and research online. AutoTrader.com and Cars.com are two of the biggest sites and great place to start. And finally before you sign make sure you check out the vehicle’s history report and of course get the vehicle inspected.

To read the full Kiplinger’s article, please click here.

28
Apr
11

NABD conference & academy

This year, the National Alliance of Buy-Here, Pay-Here Dealers will hold the Buy-Here, Pay-Here Dealer Academy, May 16 & 17 before their annual conference which begins May 18. Both the academy and the conference will be held at the Venetian/Palazzo in Las Vegas. The Academy will focus on the key things needed to run successful in-house financing, both operationally and financially.  The combo of the academy followed by the conference should offer a great deal of important educational information to help dealers further sharpen their skills in the area of in-house financing. Ken Shilson, NABD president and founder said that they have assembled a group of the nations leading operators and experts who will share their knowledge. So whether you are new and looking to move into the Buy-Here, Pay-Here market or a seasoned professional you should come away with some useful and helpful information for your buy-here, pay-here dealership.

The overall focus of this year’s conference will be on the image of the buy-here, pay-here industry with a total of 30 speakers planned.

To read the full article in Used Car News, 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.

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.

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?

27
Aug
10

The 5 Best Ways to Increase your Sales

Below are 5 selling tips that will help increase your sales and in turn increase your profit margin.  These tactics work for online and traditional marketing.  And did I mention they won’t cost you anything to start!

  1. Promote with a yes or no– When you promote only 1 product or service it is more effective. The potential buyer can either say “yes” or “no” to the product or service.  When the immediate answer is yes it generates a very quick sale.  Avoiding promotions that make the potential buyer have many choices is the best way to go.  Most people are not able to make a clear choice when they have many options so they just resort to “No”.  All in all make the prospective buyer have a simple “yes” or “no” choice.
  2. 2. Lead in with your biggest benefit- What is the biggest benefit that your store gives to its customers.  This is your selling point.  Use this benefit to reel in your customers in.  In your marketing items I would always state your company’s biggest benefit.  By putting your biggest benefit first in all of your advertisements and website you will immediately get the customers attention.
  3. Personalize your approach-When you customize a message to a particular person it makes it feel more personal.  By customizing your marketing to a certain person or area it will improve customer’s vision of your company.  One way to personalize your store is to personalize your website.  By creating special web pages for each area with different content tailored to that particular area can make your website appear friendlier.
  4. Give your customers specifics- When you use broad words it is less effective, like fast or easy.  Try to give your customers more specifics by describing why it’s fast and why it’s easy.  It is more motivating to customers to see the facts about the company then just general statements or words.
  5. Zone in on feelings- Customers tend to buy things on impulse, not really on logic. They base their buying off of how they feel.  The more excited you get your customers on your product the better.  You should tailor your marketing to reflect the emotional rewards they will get after they purchase your product.

To read the full article on Business Know How, please click here.

Do you agree with these 5 business selling tactics?  Let me know by leaving a comment.

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.

27
Jul
10

Start a Used Car Dealership

Car enthusiasts often dream about opening a car dealership.  Wanting to buy and sell vehicles is a passion that they have that they would like to make a living off of.  For these types of people opening up a used car dealership might provide the best opportunity to make their dreams a reality.  Many people wonder what it takes to open a used auto dealership.  Throughout this article we will go over the steps that one will need to take to make the dream of owning a car dealership a reality. 

In the beginning most of the work in opening a used auto dealership will involve the city, landlords and DMV.  These will be the first set of obstacles when you’re setting up your business. Then you will need to learn the basics of the auto business, such as, managing inventory, getting financing, marketing, and customer service. 

If you run your business right, there is a lot of potential to make a lot of money in the auto industry.  Owning a used car dealership you have the ability to become a millionaire or if you do exceptionally well a billionaire!  The most successfully run auto business is on the Forbes 500 which means that there is potential to make a lot of money in this industry.

Used Car Dealership- Business Model

In the used car industry there are 3 different ways of generating money. Below are the three methods and the amount of money you would generate from the sale of a vehicle.

  1. Selling Used Cars Retail: $500-$2,000
  2. Selling Used Cars Wholesale: $300-$700
  3. Broker New or Used Cars: $250-$500

Selling Used Car Retail

The retail sale of a car happens at a car dealership or on a car lot.  A normal transaction for a retail used car dealership happens when a customer visits the dealership, talks with a salesperson, views the inventory to find a car they like and then purchase it. 

Besides the typical retail auto dealership there are other ways that allow a person to sell used cars in a retail setting. For example, you can sell used cars at a small office if you pass the legal criteria like a body shop selling cars they fix. 

When you sell a used car in a retail environment the average you can make is $1,000 per used car. That should be the amount that a used car dealer should aim for.  There are many reasons that the profit of a used car can fluctuate from the average $1,000.  Below are some of their reasons why the profit margin would fluctuate higher or lower than the average $1,000.

Factors for Higher Profit Margins

  • The car maybe in high demand
  • The car may have been purchased below the wholesale price
  • The car may have needed only a small amount of repairs
  • The customer may not hassle too much with the retail price
  • The car may be a luxury car that allows you to charge a premium
  • The dealership may have great service allowing it to charge a premium
  • The dealership may have subprime financing allowing you to charge a premium
  • The economy maybe booming so people are able to spend more

Factors for Lower Profit Margins

  • The car maybe in low demand
  • The car may have been bought above wholesale price
  • The dealership may have to do a lot of repairs on the vehicle
  • The customer maybe very good at negotiating
  • The dealership may need to compete with other dealerships on pricing
  • The customer may not be able to secure financing
  • The economy maybe in recession causing people not to want to spend too much

The factors in the list above and this simple formula below will help in determining the profit margin of each vehicle sale.

Retail Sale Price of Car – Purchase Price of Vehicle – Costs to Fix the Car = Profit Margin

By increasing the sales price or decreasing the purchase price or reducing the costs of repairs you are able to have a greater profit margin.  It is not unheard of for a dealership to make $2,000 to $2,500 off a used car.

Selling Used Car Wholesale

When you sell a car wholesale you basically buy the car at an auto auction or through a customer and sell it back to a dealer or an auction.  When you sell a car wholesale the average profit margin is $500.  In this field there is a lot less work and hassle so there is definitely an upside in being a used car wholesale dealer.

Broker New or Used Car

One way to make money in the auto industry is to broker either new or used cars. There are a lot of people that do not want to deal with taking the time to purchase a vehicle so they hire a broker.  The dealer will work with other dealers to purchase a vehicle for the customer and get a broker fee.  The broker fee can be taken from the customer or the dealer and the average broker fee is between $300 through $500. 

Be prepared

When starting up a used car business it is very important that you are prepared.  Most used car dealers have dealer management software or online used car software.  This helps the dealer with inventory management, working deals, credit reports, customized business reporting, financing, Buy Here Pay Here, web marketing and fraud solutions.

To read the full article on HubPages, please click here.

30
Jun
10

What is the best used hybrid to buy?

For hybrid vehicles, the Toyota Prius has topped many car categories in its class, for example, most fuel efficient, most sales and the list goes on.  It now has another “best” to add to the list. 

Edmunds states that the Toyota Prius is the best used hybrid car based on its safety, reliability, value and availability for the vehicle car years of 2003-2008.  Edmunds reveals that the perfect time to purchase a used car is when it is anywhere between 2 to 3 years old, but never over 7 years old.

Do you agree that the Prius is the best used car?  Let me know by leaving a comment.

To read the full article on favstocks.com, please click here.




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