| |
| Video News & Views
PEOPLE & IDEAS TO WATCH | Streamline Business by Consolidating Databases | | Running multiple databases? You can save enormous amounts of time and money by consolidating. |
| | | | |
|
|
|
 |
| Table of Contents |
July 28, 2010 |
|
|
|
| |
|
|
|
Video News You Need
 |
|
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.
|
|
|
 |
Heather Lewis
Fletcher Jones Motorcars
Business Development Director
Streamline Business by Consolidating Databases
Running multiple databases? You can save enormous amounts of time and money by consolidating.
- [Read More] |
|
Mike Martinez
izmocars
Chief Marketing Officer
Selling Accessories Visually
Selling accessories at the time of purchase can translate into an additional $600 per vehicle.
- [Read More] |
|
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] |
|
Stats and Smart Charts
|
Used Car Shipping Volumes & Prices - June 2009 To June 2010
[Click to enlarge graphic]
 Significance of the Data
- Vehicle shipments decreased dramatically between May and June 2010, but were up since June 2009
- Increase in shipments from June 2009 to June 2010 was 27.7%
- The 15.5% drop from May to June puts shipments at similar level as February 2010
- Drop reverses increases from February through May
- Chart comes from CentralDispatch June 2010 Used Car Shipping Report
Source: Used Car Shipping Report - July 2010
|
|
Industry Conferences
 |
|
|
 |
Chicago, IL July 22-24, 2010
|
 |
|
Monterey, CA August 15, 2010
|
|
|
New York, NY September 7-10, 2010
|
|
|
Detroit, MI October 12-15, 2010
|
|
|
Chicago, IL September 22-23, 2010
|
|
|
Las Vegas, NV November 2-5, 2010
|
|
|
 |
|
|
 |
 |
|
|
|
|
|
|
|
Jonathan Banks
National Automobile Dealers Association
Senior Director of Editorial and Data Services
|
NADA Used Car Guide Industry Update
|
July should see 0% to 2% value depreciation in most sub-segments, w/ greatest depreciation coming on 2009MY and 2010MY vehicles; Much of loss due to pricing and financing pressure from new vehicles forcing down value of near-new counterparts.
|
|
|
Juan Flores
Kelley Blue Book
Director of Vehicle Valuation
|
Blue Book Market Report
|
Since beginning of year used-car values have remained strong; While increases are still apparent, slowing as we hit mid-summer. Exception will be convertibles and sports cars as they typically perform well during summer months.
|
|
Depreciation Tracking Lower than Seasonal Expectations:
Constricted supply helped values remain relatively strong compared to norms.
|
Lack of Available Inventory Driving Force:
Dealers struggle to find adequate supply of good condition late-models at auction.
|
Large Van Segment:
One notable exception bucking value depreciation trend.
|
Many Factors Influence Supply Concerns:
Includes significant reduction in trade-ins and reduced fleet sales by OEMs.
|
Model Year Value Depreciation:
Almost all experienced little if any, will help solidify year-to-date appreciation.
|
Used Vehicle Values in 2010:
Consistently strengthened, values are up 6.2% year-over-year.
|
Commercial Buyer Demand Increases Cargo Van Strength:
Look to replace aging fleets w/ relatively inexpensive used vehicles.
|
Slowing Pace of Appreciation:
May be an indication that market has reached a point of equilibrium.
|
Many large SUVs Will See Minor Changes in July:
As segment supply remains tight in both new and used markets.
|
KBB Value Forecast for Q3 and Q4:
Trucks and SUVs to soften, compact and mid-size cars continue to strengthen.
|
Auction Prices Suggesting May Have Begun to Return:
Actual price depreciation in many sub-segments across majority of model years.
|
Gas Prices Steadily Increasing:
Yet they have not risen to level sufficient to influence consumer behavior.
|
Class 8 Truck Prices Have Further Increases in April and May:
NADA responded by substantially increasing valuations for July nearly across board.
|
Hybrid and Luxury Crossovers:
Depreciated 1.5% and 0.6%, can be attributed to typical seasonal depreciation.
|
|
|
|
 |
|
|
|
People Going Places
 |
Christine DePasquale
CallSource
Regional Sales Manager for Ohio/Kentucky
CallSource, the leader in call tracking and recording, performance analytics, sales and management training has announced the addition of Christine DePasquale to their expanding Automotive Division - as Regional Sales Manager for Ohio/Kentucky. DePasquale joins CallSource after being a National Outside Sales Representative for AutoTrader.com for 14 years. She was the only sales representative in company history to earn the coveted status of "Rainmaker" twice. In addition, DePasquale was one of only 15% of sales representatives nationwide who were retained after AutoTrader.com acquired AutoMart Magazine and AutoMart.com.
|
|
Gerard DeVito
Eaton Corporation
Director - Engineering, Hybrid Power Systems Division
Diversified industrial manufacturer Eaton Corporation today announced that Gerard DeVito has been named Director - Engineering, for the Vehicle Group's Hybrid Power Systems Division. In this new role, DeVito will be responsible for directing all aspects of Eaton's Hybrid global engineering initiatives including design, development and leading worldwide engineering activities. DeVito joined Eaton in 1986 and has held positions of increasing responsibility within the engineering, product planning, and sales and marketing organizations. Most recently, he was Director - Global Engineering Centers of Excellence, for the Vehicle Group.
|
|
|
| The Next Big Thing |
GM to Expand Number of Chinese Brands
|
|
General Motors may be struggling to make a comeback in North America, but in China the automaker and its joint venture partners are setting records. GM will launch a new brand to be called Baojun or "treasured horse." The lineup of small sedans will be designed for and marketed to consumers outside the major cities. The automaker and its partners are on track to sell more than two million vehicles this year.
|
|
|
Ford To Ask Buyers To Pay More for Fuel Efficiency
|
|
Re-engineered Ford Explorer will have a smaller engine, 3.5-liter V-6 with 290 hp, but it will cost more (Ford won't say how much much), but company hopes buyers will accept the 30 percent fuel savings as a reason for spending more upfront.
|
|
|
 |
| Internet Sales & Marketing |
Kelley Blue Book Offers Abilty to Sell Cars on Facebook
|
|
Kelley Blue Book announced the official launch of its Seller's Toolkit, featuring the all-new LiveValue system, helping consumers sell their car online and in social networks. The first of its kind, Seller's Toolkit is a fully-integrated sales method with the latest online technologies to help consumers sell their vehicles on high-traffic websites, social networks, via e-mail or even a personal blog.
|
|
|
Ford to Offer Hybrid, Gas Model at Same Price
|
|
Ford will be the first automaker to offer a model in both hybrid and gas versions at the same price. The Lincoln MKZ goes on sale this fall and the hybrid will start at $35,180. There are no plans to make the same offer on Ford brand hybrids.
|
|
|
 |
| The Green Dealership |
An Epoch Battle, Volt vs. Leaf
|
|
The two electric cars set to hit the market later this year are based on radically different approaches for reducing oil consumption and emissions. The best seller between the two could well determine the source taken by the auto industry in the 21st Century.
|
|
|
U.S., European Governments Embracing Electric Vehicle Benefits
|
|
Initiatives being discussed in Washington and Europe by legislators and ministers are part of the forward movement of hybrid and electric vehicles happening this year. The U.S. Senate Energy Committee approved a $3.6 billion bill to promote electric vehicles substantially in the next 20 years, while ministers from UK, Germany, and France take action on greenhouse gas emissions.
|
|
|
 |
| F&I Administration |
Subprime Rejection Rate Over 90%
|
|
Historically, about 60% of subprime auto loans were approved. Today during the credit crunch that number has dropped to 9%. That opens up a growth market for GM and Chrysler who are targeting subprime buyers with new initiatives.
|
|
|
GM Plans Leasing Return with AmeriCredit Move
|
|
Since the near collapse of GMAC during the financial crisis, GM has seen its lease penetration drastically cut, and sub-prime buyers have had a difficult time obtaining an auto loan to purchase a GM vehicle. The Detroit automaker hopes the acquisition of AmeriCredit for $3.5 billion in cash will help solve these problems. The sale, that came together quickly, is set to close in the fourth quarter.
|
|
|
 |
| Used Vehicle Sales and Remarketing |
KBB Says More Buyers Opting for Used Vehicles, Paying Cash
|
|
Research from Kelley Blue Book shows more consumers are opting for used vehicles and paying cash. Basically, shoppers are looking at spending smaller amounts of money, and they may not be influenced by incentives.
|
|
|
Residual Losses Still Mounting
|
|
A CNW Market Research analysis, based on 36 and 42-month leases, indicates residual value losses between 2005 and 2010 will be greater than $10.4 billion. Lessors began pulling out of the lease market as early as 2000, knowing the meltdown was coming.
|
|
|
 |
| Aftermarket Trends & Issues |
Women More Involved in Auto Repairs
|
|
With more and more women tackling aftermarket-oriented tasks that had previously been the nearly exclusive domain of men, suppliers, retailers and repairers are increasingly gearing their sales efforts toward female motorists.
|
|
|
Carfax: Manufacturers Should Alert Used Car Buyers of Recalls
|
|
A recent Carfax study indicates 1.4 million used units were up for sale in 2009 that were part of manufacturers' recalls but were never repaired. California, Virginia and Texas had most vehicles, each at 100,000+. Carfax offers a free recall check.
|
|
|
 |
|
 |
 |
|
