Subaru to switch to quarterly U.S. sales reports

Subaru to switch to quarterly U.S. sales reports https://ift.tt/2VBDEbU

Subaru of America follows Porsche, Nissan, Mitsubishi and BMW this year in making the change.

In pursuit of wholesale inventory, from far or near

In pursuit of wholesale inventory, from far or near https://ift.tt/31tdnQI

Inventory shortages have left many dealers eager to snap up used vehicles wherever and however they can. Unfortunately for those dealers, the desire for inventory has also led to higher wholesale prices.

Ford Promise debt relief program launches

Ford Promise debt relief program launches https://ift.tt/3gaiIRa

Ford Promise allows Ford Credit to buy back a vehicle at its average trade-in value plus up to $15,000. If the amount owed is more than the program limit, the customer is responsible for the difference along with the cost of late or deferred payments and vehicle damage.

Ford Promise debt relief program launch

Ford Promise debt relief program launch https://ift.tt/31uhRqa

Ford Promise allows Ford Credit to buy back vehicles at its average trade-in value up to $15,000. If the amount owed is more than the program limit, the customer is responsible for the difference along with the cost of late or deferred payments and vehicle damage.

Mercedes' conclusion about its subscription trial? In a word: Meh

Mercedes' conclusion about its subscription trial? In a word: Meh https://ift.tt/2Ze2EH4

Mercedes-Benz USA this summer will halt its two-year vehicle subscription pilot, which it described as a learning exercise to determine whether the model could attract new and younger customers.

VW CPO sales set May record

VW CPO sales set May record https://ift.tt/2VvESFA

Volkswagen's 650 U.S. dealers sold a record 11,087 certified pre-owned vehicles in May, thanks to an aggressive financing offer from Volkswagen Credit to help dealers and consumers during the COVID-19 pandemic.

Rosenberg fails to block store sales again

Rosenberg fails to block store sales again https://ift.tt/388XdgE

A Massachusetts judge has denied David Rosenberg's injunction seeking to block the sale of certain Prime Automotive Group dealerships and restore him as dealer principal of them.

Dealer anniversaries

Dealer anniversaries https://ift.tt/387mVSP

40 with BMW

John Antonino, right, president of Antonino Auto Group, receives a 40-year award for BMW of New London in Connecticut, from Tom Shanley, regional vice president for BMW of North America.

In retail, jobs may be gone for good

In retail, jobs may be gone for good https://ift.tt/31plT3d

Even as retail sales came roaring back in May and June, there is reason to believe the rush might be temporary. The trends might trigger permanent changes to dealership staffing models.

Digital auctions may not be permanent shift

Digital auctions may not be permanent shift https://ift.tt/2CRosAT

As more buyers return to auction lanes, the appetite for both physical and digital sales is obvious.

Resurgent virus may slow sales recovery

Resurgent virus may slow sales recovery https://ift.tt/3fWHZ0S

Demand bounced back quickly after big drops in March and April, but record numbers of cases in California, Florida and Texas could hamper the upward trend.

Failed Calif. law would have strained auto finance market, group says

Failed Calif. law would have strained auto finance market, group says https://ift.tt/3i26qfs

During the coronavirus pandemic, federal, state and local governments have introduced measures designed to prevent the spread of the deadly virus, preserve economic stability and provide for Americans hardest hit by the crisis. Measures at every level have been criticized as being too harsh, too lax, overreaching and incomplete, depending on regional variances.

A failed consumer protection law in California exemplifies contentious legislation in the time of the coronavirus. The American Financial Services Association believed the rule, AB 2501, which the California Assembly declined to approve before it adjourned last week, would have caused more harm to auto lenders and borrowers in the long run.

The COVID-19 Homeowner, Tenant and Consumer Relief Law of 2020 — first introduced in February — would have required creditors to provide up to nine months of vehicle payment relief, suspend repossessions for two years with some exceptions and offer one year of mortgage payment relief in one of the nation's largest automotive markets. The law also would have capped the rate of interest that could be applied to the consumer's auto loan account at 7 percent a year.

The legislation was meant to aid consumers in a sweeping gesture, though the American Financial Services Association and its members saw the potential for the opposite to occur. The organization argued that if banks can't repossess a vehicle or take payment for an auto loan, it would effectively turn the auto loan — a secured credit obligation — into an unsecured loan. This, according to the group's recent blog post, may have resulted in ratings organizations downgrading vehicle asset-backed securities and "certainly would have led to a collapse in confidence in the marketplace."

"The legislation, while well-intentioned, would have created greater economic hardship for consumers and businesses alike by limiting consumers' access to credit and undercutting confidence in some forms of asset-backed securities in the capital markets," Senior Vice President Danielle Fagre Arlowe said in a statement.

Capping interest rates on auto loans prevents lenders from working with lower-credit customers at risk of default. High interest rates on these loans are considered a viable method of offsetting potential losses from riskier originations.

In this unprecedented time, legislative bodies must work together with industry leaders and citizens to develop workable solutions in the crisis. And lenders should continue working out forbearance strategies with their customers based on individual needs.

COVID-19 top concern for N.Y. dealership association's new head of compliance

COVID-19 top concern for N.Y. dealership association's new head of compliance https://ift.tt/3dwBh06

Thomas Higgins, the incoming director of compliance at the Greater New York Automobile Dealers Association, spoke with Staff Reporter Jackie Charniga about his priorities in his new role, the state's regulatory environment and his experience working with automotive dealerships.

In dealer ads, to wear a mask or not to wear a mask?

In dealer ads, to wear a mask or not to wear a mask? https://ift.tt/3fMaOgt

Showing masks is a key piece in dealerships' efforts to convey a dedication to safety and cleanliness. But some consumers see it as a political statement.

OBITUARY: William Proctor Jr.

OBITUARY: William Proctor Jr. https://ift.tt/3dl9NdF

Dealer William Proctor Jr. died June 15 at age 88. In 1957, he joined the family business started by his father and uncle.

Ditch silos to improve digital selling

Ditch silos to improve digital selling https://ift.tt/37RtQz7

As dealers simplify operations, it's smart to take a closer look at how digital resources can seamlessly link different steps of the sales process through a single point.

2021 NADA Show in New Orleans to go on

2021 NADA Show in New Orleans to go on https://ift.tt/2NhzXUf

The 1.1 million-square-foot Morial Convention Center is big enough to give January’s show a variety of spacing options amid the uncertainty stemming from the coronavirus pandemic, Chairman Rhett Ricart said.

Buy-sells drop off, but outlook is positive

Buy-sells drop off, but outlook is positive https://ift.tt/2AV8Knu

Dealership buy-sell experts say transactions in the first quarter slowed as the pandemic took hold. Some expect more activity in the second half of the year.

CarMax sales, profits drop in pandemic-hit quarter, but outlook improves

CarMax sales, profits drop in pandemic-hit quarter, but outlook improves https://ift.tt/2NeBUAH

More than 80 percent of the used-vehicle retailer's days in the quarter were negatively impacted by store closures and limited operations but the company said business has been recovering.

New Rogue barrels forth, sans hybrid

New Rogue barrels forth, sans hybrid https://ift.tt/2NedpDI

When the 2021 Nissan Rogue arrives in U.S. stores this fall, it will not offer a hybrid powertrain. Nissan isn't worried.

Walmart’s self-driving partner is changing e-commerce economics

Walmart’s self-driving partner is changing e-commerce economics https://ift.tt/3hNpOg6

In a world of moon-shot technology, billion-dollar capital rounds and promises to disrupt transportation as we know it, Gatik’s ambition is humble. Its slow-lane approach has proved to be pragmatic and lucrative. Walmart signed on as one of its first customers last year.

 

CarMax sales and profits drop in pandemic-hit quarter, but outlook improves

CarMax sales and profits drop in pandemic-hit quarter, but outlook improves https://ift.tt/37U2poJ

More than 80 percent of the used-vehicle retailer's days in the quarter were negatively impacted by store closures and limited operations but the company said business has been recovering.

Cox cuts about 275 jobs amid pandemic woes

Cox cuts about 275 jobs amid pandemic woes https://ift.tt/3fE8Y1i

The cuts are the first permanent job reductions stemming from the pandemic at the dealership technology company , which is facing a sharp decline in 2020 revenue.

F&I product provider launches flexible mileage service contract

F&I product provider launches flexible mileage service contract https://ift.tt/2UUbOHh

EFG Cos.' Motorist Assistance Plan vehicle service contract can be customized in 2,500-mile increments, allowing finance-and-insurance managers to pitch the contract much closer to a customer's driving habits.

Unchanged Fed rate signals pessimism for 2020's second half

Unchanged Fed rate signals pessimism for 2020's second half https://ift.tt/3hBSbNU

The Federal Reserve stayed the course on the benchmark interest rate last week, highlighting expectations for a rough road ahead for the U.S. economy. Until the coronavirus crisis ends, the lending environment will likely remain under duress.

Opportunities remain in the new-car market — but one economist says inventory challenges, a tighter credit environment and high unemployment rates will hinder sales.

The benchmark rate, which directly impacts auto lending, is a litmus test for the health of the lending market. The nation's central bank cut rates to zero in mid-March to ease the flow of credit as the coronavirus ravaged key U.S. auto markets. Auto loan rates have largely benefited from the drop, though Cox Automotive's chief economist, Jonathan Smoke, noted in his blog that subprime buyers remain challenged in credit access.

"Lower rates are helping to drive down average loan payments, but the consumers getting those lower payments are much more likely to have the best credit scores," Smoke said.

Automakers continue to pull back on the incentives that drove down interest rates charged on new-vehicle loans in April and May.

There has also been substantial tightening in the credit market, Smoke noted, as lenders attempt to shield themselves from losses down the line by restricting access to consumers with riskier credit.

Another concern is that the pent-up demand retailers are banking on may be less of a flood and more of a trickle. The aggressive automaker incentives may have moved metal in March and April, but it also could have cannibalized consumer demand as it pulled ahead buyers. For the rest, Cox Automotive cites 36 percent of potential customers are delaying their automotive purchases, citing market uncertainty and fear of unemployment.

Dealerships should brace themselves for a rough second half to 2020.

As new-car demand returns, leasing levels refuse to rally

As new-car demand returns, leasing levels refuse to rally https://ift.tt/2Yb8YQr

Leasing, which comprises nearly one-third of new-vehicle sales, dropped in April to the lowest levels since 2015 as the coronavirus pandemic collapsed the top two leasing markets in the country and automakers saturated the market with loan incentives. Rising customer demand prompted automakers to pull back on many of those programs, but leasing levels remain well below normal.

Leasing levels fell to 24 percent in April, Experian said, down from 30 percent in April 2019. The last time the levels were below 25 percent was in the fourth quarter 2014.

Discounting auto loans is cheaper for automakers than leasing, said Melinda Zabritski, Experian's senior director of automotive financial solutions, so pulling back on leasing for the near-term makes sense. She said it is "hard to tell" when normal levels will return. "I have a hard time speculating because this is so unprecedented," Zabritski said.

As leasing levels dropped, shares of 0 percent-interest, 84-month loans as part of total auto originations rose sharply in March, peaking at 22 percent in the week of March 29, J.D. Power said. Steeply incentivized auto loans have been steadily falling each week since, comprising only 12 percent of originations in the first week of June.

Leasing levels rose gradually during this time but hit a plateau at 25 percent of auto originations for three consecutive weeks.

With new inventory on the decline, now is CPO's time to shine

With new inventory on the decline, now is CPO's time to shine https://ift.tt/3ftkFHK

During the Great Recession in 2009, more than 8 in 10 vehicles sold in the U.S. were used. Online car-shopping behavior indicates this trend is picking up again. Used-vehicle traffic to Edmunds has skyrocketed.

Sonic updates Q2 outlook amid improving used-vehicle sales

Sonic updates Q2 outlook amid improving used-vehicle sales https://ift.tt/3d93yJY

The rise in used-vehicle sales is part of a steady increase in overall operations since the onset of the coronavirus pandemic in March.

CDK Global finance chief to take new COO position

CDK Global finance chief to take new COO position https://ift.tt/2UNYNPx

Joe Tautges, 44, will move into the newly created role once a new CFO has been hired.

Dealer Anniversary

Dealer Anniversary https://ift.tt/3d6DL4R

The dealer featured this week is Dennis Lin, dealer principal of Century West BMW in North Hollywood, Calif.

Used wholesale prices up ? now what?

Used wholesale prices up ? now what? https://ift.tt/3fBn97l

Dealers are seeing strong demand for used vehicles — and high prices to acquire them.

Inventory drops off as buyers return

Inventory drops off as buyers return https://ift.tt/2XZyxDY

Automaker and dealer inventories were estimated to have dropped to around 2.65 million vehicles as buyers returned to dealerships before production had a chance to fully ramp back up.

Reynolds CEO allegations exposed in Bermuda case

Reynolds CEO allegations exposed in Bermuda case https://ift.tt/3foL75l

A former employee alleges in a civil case that Bob Brockman, head of the largest private dealership management system company in the U.S., is under criminal investigation on suspicion of tax evasion and money laundering.

Meeting new challenges ? and still growing

Meeting new challenges ? and still growing https://ift.tt/2Nb5APj

Principle Auto CEO Abigail Kampmann discusses the lessons her Texas dealership group is learning from the pandemic.

Vroom stock finds an appetite for disruption

Vroom stock finds an appetite for disruption https://ift.tt/30GhjwX

The company is looking to take a share of the massive and fragmented used-vehicle market from bricks-and-mortar dealers and the peer-to-peer market.

Germ-free cars are nice, but nothing tops low price

Germ-free cars are nice, but nothing tops low price https://ift.tt/3hshySe

Now that many states are slowly reopening, will service customers begin booking appointments at their dealerships?

Dealerships will need technicians as pandemic subsides, business returns

Dealerships will need technicians as pandemic subsides, business returns https://ift.tt/30JakTV

Concerns over the auto retail industry's chronic shortage of service technicians have taken a back seat during the coronavirus shutdowns. But the issue isn't going away.

Collision repairs have tanked, but that doesn't mean it's time to sell

Collision repairs have tanked, but that doesn't mean it's time to sell https://ift.tt/2AE8NE2

Dealers who are pondering an exit from the collision business because of the pandemic-induced reduction in accidents should first weigh the advantages they have.

Mobile recall fixes help keep dealership rolling

Mobile recall fixes help keep dealership rolling https://ift.tt/3e2xJDR

Ed Roberts added his second mobile service van on March 11. It has become an $80,000 tool for picking up recall work at Bozard Ford-Lincoln in St. Augustine, Fla.

Facebook ads help dealership's sales

Facebook ads help dealership's sales https://ift.tt/2BZzMdA

A recent shift in advertising strategy to focus on the social networking platform turned Power Ford into a major player in its market and is helping to prop up sales when many consumers are spending more time at home.

COVID-19 moves pickup and delivery into mainstream brands

COVID-19 moves pickup and delivery into mainstream brands https://ift.tt/2Y4gAUR

Pickup and delivery of customers' vehicles has emerged as one of the most effective ways fixed ops directors can keep their service bays busy while reducing the risk of exposing service advisers, techs and cashiers to the virus.

How dealership collision shops can position themselves for a rebound once roads are busy again

How dealership collision shops can position themselves for a rebound once roads are busy again https://ift.tt/37sZW4a

How collision shops can position themselves for a rebound once roads are busy again

How dealership collision shops can position themselves for a rebound once roads are busy again

Dealership collision shops are dealing with a sharp decline in business as Americans cut down on travel during the coronavirus pandemic. Experts say now's the time to make sure the shop is ready for a rebound.

Automakers, dealerships see mobile service as investment in customer loyalty

Automakers, dealerships see mobile service as investment in customer loyalty https://ift.tt/2MX1pX1

Some dealers are convinced he's found a way for his service department to broaden its reach.

Hospitality industry ripe for fixed ops recruiting

Hospitality industry ripe for fixed ops recruiting https://ift.tt/2C8Eztp

Service departments looking to replace talent lost in the coronavirus pandemic might find the best prospects outside the auto industry.

This could be a great time to hire women in service ? here's how

This could be a great time to hire women in service ? here's how https://ift.tt/2Y2zwTM

The coronavirus pandemic just might offer a make-lemonade-from-lemons moment, especially if many furloughed employees don't return.

Ohio State coaches were his focus group

Ohio State coaches were his focus group https://ift.tt/37sUKgR Ricart, president of Ricart Automotive Group based in Columbus, Ohio, uses his own staff to pick up and drop off cars.

Service customer denied award

Service customer denied award https://ift.tt/2Y4avrv

The Texas Court of Appeals has refused to reinstate a $25,236 jury verdict in favor of a service customer whose 2006 Chevrolet Equinox was hit by another vehicle backing out of a service bay.

Fixed in time

Fixed in time https://ift.tt/2Y2zwDg

In 1937, service and sales were a lot closer than today.

Service counter

Service counter https://ift.tt/37wGCmt

Total parts and service sales in U.S. dealerships reached $120.73 billion last year, up 3.6% from 2018, thanks to 311.6 million repair orders. Here are some other fixed ops figures for 2019 from the annual NADA Data financial profile.

Employees will find new processes and mindsets are required post-COVID

Employees will find new processes and mindsets are required post-COVID https://ift.tt/37rwED8

Furloughed fixed ops employees who return will likely find their jobs are quite different from the ones they left. Furthermore, the work will demand new skills and mindsets, including more technical proficiency and an ability to adapt to change.