October 8, 2013
Need to Know
INDUSTRY NEWS IN THE LAST 24

gm_app_online22 Will GM Dealers Begin Selling Cars Online?

Gen­eral Motors’ soft­ware, avail­able to its 4,300 deal­ers, will pro­vide a high-profile test of whether the auto maker can bet­ter cater to the needs of online-savvy con­sumers – online.

Find out more about the pos­si­bil­ity and what could stand in the way. [More]


Wall Street Journal
self_driving_cars22 Insight into the Quest for Driverless Cars

A fully autonomous vehi­cle is at least more than a decade away, but there is no doubt that computer-controlled vehi­cles will some­day become a reality.

Writer Dan Neil takes a look at the fron­tier of mak­ing cars drive them­selves. [More]


Wall Street Journal
government_shutdown22 Extended Government Shutdown Could Affect Automakers

The week-old fed­eral gov­ern­ment shut­down could force automak­ers to delay the launch of some of their new model vehi­cles for next year, as gov­ern­ment plays a role in launch approvals.

Learn more how the issue as it affects 2014 vehi­cle launches for automak­ers. [More]


NBC News
TODAY: How to Get the Most Floor Planning Dollars; Smart Tech to Sell Used Cars; Turn Salespeople into Consultants; More 
Video news that moves people and ideas
ODell_Shane_NextGear Capital

Driving Faster Turn Time and More Revenue

NextGear Capital’s Shane O’Dell says…..

1. Deal­ers are suc­cess­fully turn­ing inven­tory in 30–45 days or less, and they’re using a lot of data.
2. They’re get­ting bet­ter rev­enue on each trans­ac­tion.
3. Deal­ers turn­ing inven­tory at the right time are sell­ing a lot of vol­ume, using data, and are mak­ing more revenue.

See video on what this floor plan­ning expert advises about turn­ing inven­tory the right way….

ODell_Shane_NextGear Capital Driving Faster Turn Time and More Revenue
SHANE O’DELL Chief Operating Officer, NextGear Capital
coats-jeff-aug2013 What is a Valid Lead?
JEFF COATS President and CEO, Autobytel
leavitt-howard-niada-2013 Cost Per Up and Good Money Bets
HOWARD LEAVITT President, AutoRaptor CRM
VIDEO: Successful Holiday Sales
misty-cole-onecommand
  Holiday Greeting Cards Drive Winter Traffic
 

Hol­i­day cards strengthen cus­tomer affin­ity with your deal­er­ship. They also demon­strate your appre­ci­a­tion for cus­tomer loy­alty, and cre­ate top-of-mind aware­ness that dri­ves addi­tional traffic…


Click here to watch video
VIDEO: Sourcing and Inventory Today
dohse-randy
  Know Your Turn Times to Borrow Wisely
 

Find out what sourc­ing and inven­tory look like today, and how know­ing your turn times helps you to bor­row wisely.


Click here to watch video




Dealer Pain Points
BY NADA UNIVERSITY

Parts The Survivalist Parts Manager

Unless you’re a sur­vival­ist, you don’t have a year’s sup­ply of food in your house. Why tie up the money and some of the food inven­tory could spoil.

But does your parts man­ager have sur­vival­ist ten­den­cies? Is your parts depart­ment over­stocked with parts that are on the costly road to obsolescence?

Click here to learn more.

Cash Is Your Cash Stuck in “Park”?

Run­ning a deal­er­ship would be a lot eas­ier if only your cash moved as fast as the vehi­cles you sell. Some of your cash is going nowhere fast. Where is it?

Stuck in “park,” sit­ting on your used-car lot. It only takes a few wrong turns for your used-vehicle inven­tory to put a sig­nif­i­cant dent in your cash flow.

Click here to learn more.

salessuccess_1_6_2009-4_35_pm.jpg Boosting Be-Backs and Closing Ratios

Deal­ers have lived the adage, “If at first you don’t suc­ceed, try, try again.” But is your sales depart­ment giv­ing up after the first try? Some­times prac­tices and pro­ce­dures, or the lack of them, pro­duce the same result.

Man­agers and employ­ees need to know that the store’s success—and their jobs—depend on get­ting a sec­ond chance with peo­ple who didn’t buy on their first visit.

Click here to learn more.

Doing It Right  
HOW-TOs BY INDUSTRY EXPERTS

The auto­mo­tive indus­try is very unique in that it is one of the few indus­tries where com­mer­cial loans are abun­dant and rel­a­tively easy to qual­ify for.

Whether you are just start­ing, out or you are look­ing to shift your busi­ness into the next gear, it is likely you will be able to find the cap­i­tal you need to stock your deal­er­ship. Although there is a good chance you will be able to acquire a floor plan line of credit, the size of that line of credit will vary depend­ing on your busi­ness needs and your over­all port­fo­lio snapshot.

Floor Plan 101: The Basics

First and fore­most, to qual­ify for a floor plan you need to have credit. Specif­i­cally, you should have a his­tory of uti­liz­ing and repay­ing debt. Bad credit and hic­cups on your credit his­tory aren’t always deal-breakers, but they will likely reduce the amount you qual­ify for. Addi­tion­ally, there is a good chance that credit issues will have a neg­a­tive impact on your pric­ing struc­ture. The good news is that over time, with good per­for­mance cou­pled with adher­ence to the terms and con­di­tions, you can even­tu­ally over­come these setbacks.

It is also impor­tant that you are not over-extended. If your credit cards are all maxed out, that is a poten­tial red flag even if you have not paid late. Han­dling your avail­able credit respon­si­bly is essen­tial, so be sure to main­tain a sub­stan­tial amount of avail­able credit.

Keep read­ing to get started!

 
Behind the Numbers  
GASOLINE PRICES

Now is a good time to be sell­ing fuel effi­cient vehi­cles – ethanol cred­its could push increased gaso­line prices – and car shop­pers would be look­ing for a solution.

It’s com­ing from ethanol cred­its that are shoot­ing up in price this year – and have become a very attrac­tive Wall Street investor mar­ket for JP Mor­gan and other finan­cial insti­tu­tions mak­ing big prof­its from the credits.

For oil com­pa­nies and refin­ers, those prices have hit hard and they say the cost has to be passed on to con­sumers through gaso­line sta­tion pump prices.

Lately it’s become a bat­tle ground for oil pro­duc­ers and automak­ers ver­sus the US Envi­ron­men­tal Pro­tec­tion Agency and ethanol pro­duc­ers over whether gaso­line should go up from 10% ethanol blend (E10) to E15.

Read more about the bat­tle going and what it could mean for gaso­line prices……




Build a Better Dealership
SMART INSIGHTS FOR SMART DEALERS

salesMaking Sales People Consultants in a Demanding Workplace

What’s it like to ser­vice cus­tomers who walk into the show­room and want to pur­chase a car?

There’s a lot more that goes behind it these days – pair­ing the customer’s mobile device to the car’s info­tain­ment sys­tem; offer­ing extended ser­vice con­tracts and after­mar­ket prod­ucts; explain­ing why the CPO unit is more costly than the com­pa­ra­ble late-model used car; and answer­ing sophis­ti­cated ques­tions about dealer invoice and trade-in values.

It can be over­whelm­ing for sales rep­re­sen­ta­tives and dealer man­age­ment. Mar­cus Hands, a sale per­son at Jeff Gor­don Chevro­let in Wilm­ing­ton, NC, said it well: “Some­times I’m even afraid I’ll stum­ble over my words when I’m explain­ing things.”

Read all about the demand­ing issues that are required for new and late-model used cars and what’s needed in staff training.

vehicle-inventoryAbility of Dealers to Process & Manage Inventory Images Expanded

Authen­ti­com has pur­chased the “Auto­mo­tive Tech­nol­ogy Port­fo­lio”, namely Car­pod, DMSi and VIN Explo­sion, from Utah-based Ryan­Tech, Inc. 

With the inte­gra­tion of RyanTech’s Tech­nol­ogy into Authenticom’s ser­vice offer­ings, Authen­ti­com now has the abil­ity to process inven­tory images and enhance the inven­tory man­age­ment expe­ri­ence for auto dealers. 

“We are excited about the inte­gra­tion of RyanTech’s Tech­nol­ogy into Authenticom’s ser­vice offer­ings and look for­ward to the syn­er­gies that we can cre­ate and lever­age together,” com­mented Steve Cot­trell, Founder and Pres­i­dent / CEO of Authen­ti­com. “The addi­tion of this tech­nol­ogy will pro­vide greater oppor­tu­ni­ties to grow our foot­print and, most impor­tantly, sup­port our clients,” adds Cottrell.

Read more …

Smart Thinking - Pass It On  
BRIAN GEITNER SUMMARIZES THE POST-RECESSION MARKETPLACE
Used Car Dealers: Take Advantage of Technology
Brian Geitner summarizes the post-recession marketplace

At Issue:

While a dif­fi­cult mar­ket forced out many used car deal­ers over the last five years, a new crop of deal­ers has recently emerged. These deal­ers are turn­ing to tech­nol­ogy to drive their busi­nesses and main­tain a com­pet­i­tive edge.

Tech­nol­ogy solu­tions can enhance a dealer’s suc­cess­ful busi­ness prac­tices by pro­vid­ing a con­sis­tent means for obtain­ing mar­ket data.

Brian Geit­ner, pres­i­dent of NextGear Cap­i­tal, shares his thoughts on greater oppor­tu­ni­ties for used car deal­ers. Drill down fur­ther for insight in the role of tech­nol­ogy in the used-car dealer mar­ket­place.

 
Learning More About Big Data  
SIR TERRY LEAHY EXPOUNDS ON DATA INVESTMENT MANAGEMENT

The Sit­u­a­tion:

What IT peo­ple nowa­days call “Big Data” is what CEOs and lead­ers – includ­ing Dealer Man­agers – describe as Data Invest­ment Man­age­ment, and Britisher Sir Terry Leahy is con­sid­ered the God­fa­ther of Big Data. Why? Because he made it work in favor of his com­pany to increase prof­its by at least 25 percent.

What does this mean for Auto Dealerships?

With the acqui­si­tion of sophis­ti­cated soft­ware that deal­er­ships use today, an enor­mous amount of cus­tomer data is being accu­mu­lated – but it is hardly being put to use.

Sir Terry Leahy, for­mer CEO of British retail com­pany Tesco, says busi­nesses change slowly, but cus­tomers change quickly. As they change, you change. Drill down to get valu­able tips on how to uti­lize the cus­tomer data you already have to retain cus­tomers and acquire new ones.










Dealer Resources 
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AutoTrader.com
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Fiserv
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Thrifty Car Sales
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AutoUSA
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vAuto
vAuto's Provision™ suite of inventory management tools is the auto industry's leading solution to help dealers increase used vehicle sales, profitability and return on investment.
Dealer.com
Turn-key automotive Internet marketing on one platform.
NADA University
One Source, Endless Possibilities, 24/7.






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