January 27, 2014
Quick Reads: Six in 60

used-cars 1. Stay Creative & Find More Used Cars

Used car man­agers are com­ing up with cre­ative ways to find and buy more and bet­ter used cars beyond auc­tions and trade-ins.

Faced with faster inven­tory turnover and tight sup­ply, dealer used vehi­cle man­age­ment is doing all sorts of new sourc­ing chan­nels includ­ing leas­ing, rental, and cus­tomer cars.


Automotive News
loan-approved 2. NADA Pushes Back on $945B Dealer Loans

Respond­ing to pres­sure from increas­ing scrutiny from the CFPB, NADA has finally responded with a 20 Guide­lines on how to ward off the Fed’s intervention.

Rec­om­mended deal­ers set a stan­dard inter­est rate to be mod­i­fied only for spe­cific rea­sons, includ­ing competition.


Wall Street Journal
toyota_logo_NCDs.gif 3. Toyota Knocks Off GM & VW

Toy­ota retained 2013 global sales title with nearly 10M sales. GM is clos­ing the gap and VW is remain­ing ambitious.

China is where all of them will focus in 2014—Sold 22M total last year.  


Automotive News

VIDEO: Setting Up for NADA

Before the show began: Ed Garsten, Head of Chrysler Dig­i­tal Media, gives a sneak peek to the Chrysler stand at the 2014 NADA.

VIDEO: Outgoing Chairman's Words of Warning
  At NADA: Sounding the Alarm on the CFPB

Out­go­ing NADA Chair­man David West­cott warned of harm to con­sumers and deal­ers — includ­ing more lim­ited choices — if the CFPB gets its way. From AutoNews Now.

VIDEO: NADA Foundation in New Orleans
  NADA Donates to Second Harvest in New Orleans

NADA and Ally Finan­cial pro­vided a grant of $50,000 to Sec­ond Har­vest Food Bank in New Orleans. The dona­tion was part of the week-long activ­i­ties lead­ing up to the 2014 NADA Con­ven­tion & Expo.

More Six in 60

GM 4. Barra Presses GM Profit Accelerator

GM is really step­ping up with an accel­er­ated sales and profit drive.  Mary Barra has spelled out how they intend to exploit man­age­ment exper­tise & inno­va­tion. There’s an ongo­ing push to expand profit.  


auto-dealership 5. Your Store Could Disappear by 2020

OEMs are plan­ning on con­sol­i­dat­ing the num­ber of fran­chise deal­ers, and deal­ers who own one or two stores are most at risk.

Study says 3,800 stores to go in next 6 years, that’s one out of every five.


sales 6. Want a 25% Lead-to-Sale Conversion Rate?

Impres­sively, Dealertrack’s Dig­i­tal Retail­ing Solu­tion exceeded 17 Mil­lion Web­site Pay­ment Views in Decem­ber, and achieved a higher Lead to Sales performance.

From this sig­nif­i­cant num­ber, Deal­er­track deal­ers achieved higher level of lead-to closed sales con­ver­sion rate of 25%.  


Doing It Right  

Call­Source has launched the RADAR Report to mea­sure dealer phone man­age­ment suc­cess and to track the Call-to-Appointment for auto retail­ers. The RADAR Report mea­sures call per­for­mance for deal­ers across the coun­try and pro­vides bench­marks for how deal­er­ships are doing against their com­pe­ti­tion. 

As more retail­ers are shift­ing their focus to var­i­ous forms of online mar­ket­ing, they are often over­look­ing one fun­da­men­tal fact – more than 80 per­cent of cus­tomers use the phone to con­tact a deal­er­ship when they are ready to buy. If retail­ers could turn just a few more calls per week into appoint­ments, they can improve annual prof­its by hun­dreds of thou­sands of dollars.

The report will high­light the top 10 per­form­ing deal­er­ships for over­all call-to-appointment ratios. Cur­rently, the indus­try aver­age is 7.8 per­cent, though sev­eral Call­Source clients are approach­ing 30 percent.

To see a sam­ple report, visit Call­Source Auto­mo­tive at booth #5009 at the National Auto­mo­bile Deal­ers Asso­ci­a­tion con­ven­tion in New Orleans, Jan. 25–28.

To find out more about why this track­ing report will enable your deal­er­ship to see how well you are man­ag­ing your phone sys­tems, please check out the new Call­Source press release.


Build a Better Dealership

Used vehicle inventoryManaging the Right Inventory at the Right Price

Tools and resources are get­ting bet­ter for deal­ers grow­ing their used vehi­cle busi­ness, but it can also be over­whelm­ing at times.

It’s a real bal­anc­ing act, accord­ing to Alan Lang from NextGear Cap­i­tal.

Deal­ers have to stay on it – cre­at­ing the right inven­tory at the right price and con­nect­ing that real­is­ti­cally with what cus­tomers want and are will­ing to pay for, Lang said.

To address this man­age­ment chal­lenge, the new car ‘eco-system’ own­er­ship and pur­chase cycle has now become pop­u­lar in used car inven­tory acqui­si­tion and man­age­ment,” says Randy Barone, Pres­i­dent of RedBumper.

Check out these three tips on improv­ing ROI in man­ag­ing inven­tory the right way for you market.

Smart Thinking - Pass It On  

It’s get­ting trick­ier to pre­dict the price per bar­rel of oil and its direct cor­re­la­tion to gaso­line and diesel prices – much more so than in the 1970s when OPEC could instantly throw a wrench in the gears.

As for this year, three lead­ing energy agen­cies have reported that pro­duc­tion out­side of OPEC should be increas­ing this year – with much of that com­ing from US shale fields.

Black Book’s Ricky Beggs expects the pat­tern to be sim­i­lar to the past two years for gas prices and its effect on small cars, hybrids, and elec­tric vehicles.

New and used truck sales should con­tinue to be strong this year, but they are affected by fed­eral fuel econ­omy stan­dards. Automak­ers are rolling out more fuel effi­cient trucks such as the new Ford F150 with a lot more light­weight aluminum.

Find out more about what these trends could mean for new and used vehi­cle prices this year.

Dealer Resources 
Looking for the Best Leads in the business?
Helping dealers manage their reputation.
OneCommand deploys leading-edge communications technology proven to increase response rates, drive traffic, and lower marketing costs.
Partnering with AutoTrader.com alone gives your inventory unparalleled online exposure.
Fiserv offerings address every step of the automotive lending process.
Thrifty Car Sales
Find out what Thrifty Car Sales Franchise Opportunities can do for you.
AutoUSA Internet Sales Solutions brings the best-in-class tools to increase Internet sales and lower costs for automotive dealerships.
IMN is the digital marketing company that delivers branded newsletters and content for more than 3,000 organizations worldwide, combining custom, vertically-oriented content with advanced publishing technology and services.
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.
Turn-key automotive Internet marketing on one platform.
NADA University
One Source, Endless Possibilities, 24/7.

If you find that you received this newsletter by mistake or wish to unsubscribe to this publication, please click here to unsubscribe from the mailing list.

ADVERTISE WITH US - Contact AIN Media Publisher Chuck Parker at cparker@automotivedigest.com or (310) 265-2225 to learn more.