F&I tip: Meet the customer early in the transaction

F&I tip: Meet the customer early in the transaction https://ift.tt/87gGyud

Finance and insurance managers should meet car shoppers "before the consumer becomes a customer" who has officially agreed to a vehicle transaction at the auto dealership, Ascent Dealer Services CEO Adam Marburger said during the 2024 NADA Show.

VC investment is sparking again for retail tech, F&I and more

VC investment is sparking again for retail tech, F&I and more https://ift.tt/bkh5cax

Stella Automotive AI, Botdoc, AutoComplete, Detect Auto and QoreAI are among the companies seeking or winning new funding.

Chase exec for captive finance companies expects subvention to grow

Chase exec for captive finance companies expects subvention to grow https://ift.tt/SfUqe4u

Leslie Morris said some automakers were considering alternatives to incentive spending during inventory shortage, but sweeteners on cars are now back to 'very, very significant levels.'

Guest commentary: Five action items to hasten Safeguards Rule compliance

Guest commentary: Five action items to hasten Safeguards Rule compliance https://ift.tt/ncW8ADV

The FTC has amended the Safeguards Rule to better protect people across the country from breaches and cyberattacks that lead to identity theft and financial loss. It's crucial that all businesses become compliant.

Toyota, Hyundai, Kia post robust U.S. sales gains in May as EVs gain momentum

Toyota, Hyundai, Kia post robust U.S. sales gains in May as EVs gain momentum https://ift.tt/YbXdmNu

Toyota, Hyundai and Kia reported strong sales gains in May, bolstered by hybrids and electric vehicles.

Toyota Motor North America saw its sales climb 16 percent in May to 216,611, powered by a 15 percent boost in Toyota brand sales, while Lexus brand sales rose 17 percent.

Among the automaker's top-selling models, sales of the Toyota RAV4 rose 27 percent, Camry sales were down 7.7 percent, Corolla up 23 percent and Tacoma down 17 percent. Interestingly, the Toyota brand's gain came despite a mid-April recall and resulting international stop-sale on the Prius because of faulty rear-door latches.

The Japanese automaker also said that a record 39 percent of its sales in May were of either hybrid, plug-in hybrid, hydrogen-powered or electric vehicles.

Meanwhile, Hyundai Motor Co. posted a robust 12 percent gain in May light-vehicle sales in the U.S., with eight of its 11 marques rising over the same month last year.

The Korean automaker said it sold 78,485 new vehicles during the past month, noting strong gains by its electric vehicles and hybrids.

"We continue seeing great success in our eco-friendly line-up with an overall 50 percent increase year over year," Randy Parker, CEO of Hyundai Motor America, said in a statement. "Both EVs and hybrids continue to gain popularity."

The gains in EVs and hybrids helped overcome drops in deliveries in two of its leading sellers. The Elantra sedan slipped 15 percent to 13,311 deliveries while the Tucson compact crossover dropped 4 percent to 17,371.

Hyundai's sibling automaker Kia America said May deliveries rose 5 percent to 75,156. The Kia Sportage crossover paced the gains with a 21 percent improvement to 15,512 deliveries. Forte sedan deliveries increased 31 percent to 13,132.

Kia's new electric vehicle, the EV9, posted 2,187 deliveries, a 39 percent gain over April 2024.

Subaru of America reported a 7 percent increase in sales to 58,356, driven by the Crosstrek, up 32 percent to 13,836, and the Forester, up 45 percent to 15,345. It’s top-selling Outback, however, fell 3.7 percent to 16,506. Sales of the electric Solterra were up 255 percent to 1,546.

U.S. new-vehicle sales are projected to rise in May from a year earlier, helped by demand for crossovers and pickups, according to a joint report by industry consultants J.D. Power and GlobalData last week.

Total new-vehicle sales for May 2024, including retail and nonretail transactions, are expected to reach 1,446,800 units, a 2.9 percent jump from a year ago.

Average transaction prices in the month are expected to be about $45,033, down $1,045 from a year ago. Average incentive spend per vehicle has grown 48 percent from a year ago and is on track to reach $2,640.

Reuters contributed to this report

Franchised dealerships play critical role in U.S.

Franchised dealerships play critical role in U.S. https://ift.tt/bH5OI0L

TO THE EDITOR:

Regarding “Ohio Sen. Sherrod Brown attacks Bernie Moreno’s history as car dealer,” autonews.com, May 22: In light of Ohio Sen. Sherrod Brown’s recent attack on senatorial candidate Bernie Moreno’s former car dealership business, it is crucial to underscore the often overlooked and misunderstood role that dealerships play in their communities and the broader economy.

Franchised new-car dealerships are the lifeblood of the Texas economy, playing a pivotal role in employment, economic growth and tax contributions at every level — local, regional and statewide. 

Texas is home to 1,340 franchised dealerships. They collectively employ over 150,000 people, making the automotive retail sector one of the largest employers in the state. The sheer volume of economic activity generated is immense, with $106 billion in sales each year. This translates into an extraordinary $6.8 billion in sales tax revenue. These funds are critical for supporting education, health care, transportation and other essential services.

Now, imagine these contributions replicated across all 50 states. Dealerships nationwide provide millions of jobs, contribute billions in sales and generate substantial tax revenues that are crucial for the economic health and development of the entire country. These dealerships are not just places to buy cars, they are pillars of local economies and indispensable components of the national economic framework.

Dealerships are vital economic engines that drive prosperity and development. Their contributions to employment and tax revenue are unmatched. Let’s recognize the indispensable role they play across the U.S.

In light of the recent political discourse, I urge automobile dealers and their employees all over the U.S. to support Bernie Moreno’s candidacy for Senate and his future advocacy of our business. 

TOM McCOLLUM, CEO, Forbes Todd Automotive Group, Dallas