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| Video News & Views
PEOPLE & IDEAS TO WATCH | Instantly Engaging Facebook Shoppers | | Now you can reap the benefits of instantly engaging shoppers on your dealership's Facebook page with an integrated chat capability. |
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| Table of Contents |
June 23, 2010 |
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Video News You Need
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Video News for Now: The Automotive Digest editorial and video team is always out filming timely video interviews with the leaders in the dealership and automotive industries. You can find these videos each day in Dealer Digest Daily and AutomotiveDigest.com - and each week in this publication (Dealer Management Weekly), Fleet Management Weekly, and Automotive Digest Weekly - Green Edition. ----------------------------------------------------------------------- Used Vehicle Reports You Need: Keep up with what's going on in the used vehicle market with two industry-leading used vehicle reports in each issue of Dealer Management Weekly - from companies like NADA Used Car Guide, Kelley Blue Book, OPENLANE, Manheim, ADESA, CentralDispatch and more. You can also find a full repository of these reports in the Studies & Reports section of AutomotiveDigest.com.
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Todd Smith
ActivEngage
President and Co-Founder
Engage Facebook Shoppers Instantly
Now you can reap the benefits of instantly engaging shoppers on your dealership's Facebook page with an integrated chat capability.
- [Read More] |
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Brian Pasch
PCG Digital Marketing
CEO and Founder
Moving More Advertising Dollars to Digital
I think one of the biggest trends right now is that dealers are trying to understand how to move more of their traditional advertising budget to more digital strategies.
- [Read More] |
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Bridget Townsend
DealerTrack Inventory Solutions
Sr. Director and General Manager
Challenges Sourcing Used Vehicles
Dealers are beginning to employ more aggressive used vehicle sourcing strategies as the marketplace gets trickier.
- [Read More] |
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Stats and Smart Charts
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Wholesale Used Vehicle Price Trends - May 2010
[Click to enlarge graphic]
 Significance of the Data
- Wholesale used vehicle prices continued to stabilize at high levels in May
- Falling modestly from all-time high in April and registering 3rd month in row at average above $10,500
- Previous all-time highs were around $10,400 registered in July and August 2001 before wholesale prices crashed on 9/11
- Current high wholesale price levels have translated into retail prices for used vehicles that approach or exceed 60% of price of new vehicle
- Comes from ADESA Analytical Services' May 2010 market report
Source: Kontos Kommentary - June 2010
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Industry Conferences
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Dallas, TX June 29, 2010
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Houston, TX June 30, 2010
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Chicago, IL July 22-24, 2010
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Traverse City, MI August 2-5, 2010
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Monterey, CA August 15, 2010
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New York, NY September 7-10, 2010
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Juan Flores
Kelley Blue Book
Director of Vehicle Valuation
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Kelley Blue Book Market Report
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Strength that prevailed in used-car market for 1st part of year subsided in May; Values increased modest 0.9% from previous month; Values continuing to stabilize with modest uptick this month relative to 1.7% increase reported last month.
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Jonathan Banks
National Automobile Dealers Association
Senior Director of Editorial and Data Services
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NADA Used Car Guide Industry Update
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Auction prices through May experienced minor declines relative to April; Several key segments continued to experience subtle appreciation; Overall prices for 1-to-5 year old vehicles declined about half a percent which is less than expected seasonal drop.
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Supply and Demand Keep Market Lukewarm:
Limited supply and increased demand from budget conscious consumers.
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Used Vehicle Prices Stable 2nd Half of Year:
Strong new vehicle market and slight uptick in returning used supply.
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Unstable Economy:
Played major role in valuations and continues as we move into recovery.
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Several Segments Outperform Expectations:
Mid-size van segment, large SUVs, and large pickups did well.
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Increased Incentives:
Helped major automakers earn double-digit sales gains with exception of Toyota.
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Luxury Segment Auction Prices:
Continued deprecation, lagging all other segments over course of year.
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State of Economy Driving Cost-Effective Buys:
Less expensive vehicles offering best value proposition driving market interest.
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Overall Auction Prices:
Continue to follow expected course of stability and reflect strong market.
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Consumer Demand for Used Vehicles:
Remains strong as seen in 3.5% year-over-year increase in values.
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June Prices:
Expected to follow suit with no major price fluctuations foreseen at this time.
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Car Values:
Up 1.1% for month, with most segments performing in line with overall average.
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Daily Rental Fleet Sales:
For some brands, real rate of recovery masked by disproportionate sales.
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Full-Size SUVs and Pickups Among Best Performers:
As price of gas remains affordable, not pulling demand from trucks and SUVs.
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Commercial Truck Guide:
Most vehicles in guide either stayed flat or appreciated for June edition.
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People Going Places
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Rick Gibbs
Dealer.com
President
Dealer.com has named Rick Gibbs as its new President. Gibbs co-founded the company in 1998 and has since held the position of CTO, shaping and directing Dealer.com's technological vision, while spearheading its emergence as the global leader in online marketing solutions for the automotive industry. As President, Gibbs will help guide the company as it significantly increases employee headcount and accelerates product development and delivery volume over the years ahead.
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Chris Brady
Dealer Services Corporation
Chief Information Officer
Dealer Services Corporation announced today that Chief Information Officer Chris Brady has been named as the recipient of four Information Technology industry awards in 2010. In the last 18 months, Dealer Services garnered much industry attention by completing an ERP consolidation to develop and deploy predictive analytic technology to help in forecasting revenue and make real-time adjustments to their business. One of the biggest benefits of implementing the new system is the competitive edge it gave DSC in the face of the economic downturn, enabling the company to anticipate and adjust financial reserves, minimize risk, and to assist customers in inventory management.
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| The Next Big Thing |
Detroit Surges Past Imports in Quality Study
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The solid performance of new models like the 2010 Mustang and Focus helped Ford earn the rank of top mainstream brand in the 2010 J.D. Power IQS. For the first time in its history, the influential J.D. Power Initial Quality Study shows that domestic auto brands have, overall, pushed past their import rivals.
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Growing Acceptance by U.S. Consumers to In-Vehicle Voice Reminders
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Telematics vendor ATX Group study finds growing acceptance of in-vehicle, interactive voice recognition (IVR) system-delivered messages about scheduled maintenance and safety issues like recall notices. They are making the case for this technology coupling the new findings with previous findings that U.S. consumers want real-time, location-specific alerts about traffic and weather.
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| Internet Sales & Marketing |
Research Shows Importance of Social Media, Internet in Car Buying
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Data from Foresight Research shows the astonishing impact the Internet and social media have on car-buying decisions. Most new-vehicle buyers use the Internet to compare vehicles and check for incentives. Nearly 13% use some form of social media to share information on their purchase.
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Tips for Improving Online Showroom
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Amanda Savage of Manheim's The Wholesale Institute makes 10 suggestions for boosting a dealer's online showroom. Tips include hiring summer help with online skills, use latest online tools, describe vehicles properly, use condition reports and take advantage of free training opportunities.
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| The Green Dealership |
No Obvious Winner Yet in Plug-in Car Race
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As automotive marketers and car buyers anxiously await the launch of well- publicized green cars like the Chevy Volt and Nissan Leaf, there's no clear path yet for major OEMs on which types of plug-in vehicles will have the most advantages. Panelists at last week's Automotive News Green Car Conference expressed competitive perspectives.
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Ford Intros New CNG/LPG Prep Packages for Super Duty Pickups
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Ford is the industry leader in commercial and government fleet sales and the only manufacturer offering fuel-efficient powertrains and other sustainable technologies with all fleet vehicles this year. These include battery-electric, hybrid, natural gas, propane, E85, biodiesel and EcoBoost(TM), making Ford the greenest full-line fleet provider. Ford has now expanded its CNG/LPG prep package lineup.
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| F&I Administration |
Prime Borrowers Repaying Loans, Problems Remain for Subprime
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Experian Automotive reviewed first-quarter data regarding open auto loans and found the better the credit standing, the more growth there has been as compared to the first quarter of 2009. In fact, Experian indicated the only growth came within the super prime and prime categories at 2.69 percent and 2.34 percent, respectively.
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Individual Credit Scores Improving, but Trouble Still Lies Ahead
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According to Fitch Ratings delinquencies and losses on prime auto loan asset-backed securities hit their lowest levels in May since the summer of 2007. However, officials cautioned that this trend was "mainly due to seasonal factors." In fact, Fitch does not see this strong performance continuing.
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| Used Vehicle Sales and Remarketing |
Manheim's Mobile MMR Launched as Dealers Want More
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Manheim recently added an enhancement to its relatively new Mobile Manheim Market Report to help dealers source and manage their pre-owned inventory anywhere. The company highlighted how the capabilities of Mobile Search associated with its Mobile MMR incorporate a trio of dealer-oriented functions.
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ADESA's Dealer Preferred Program Helps Boost Market Confidence
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ADESA says its new Dealer Preferred program can help both buying and selling dealers gain confidence in the wholesale market. Participating dealers get top lane placement at auctions, and when buying they enjoy a 60-day buyback guarantee.
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| Aftermarket Trends & Issues |
Most Auto Repair Shops See Increased Business Ahead
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As cautious car owners hold on to their vehicles longer, auto repair shop owners are predicting steady or increasing business in the next twelve months. While consumers are watching their spending, many see the value in properly maintaining their vehicles.
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Chrysler Develops Smartphone App to Deliver Vehicle Info
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Chrysler is releasing a smartphone application so customers can download vehicle information. The 2011 Jeep Grand Cherokee is the first to utilize this app. Customers can download operating instructions, contact customer care and call for roadside assistance.
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