January 24, 2014
The Week's Top News
QUICK READ: WEEK'S TOP AUTO NEWS

leasing 1. OEMs & Dealers Using Pull-Ahead Programs to Renew Leases Early

  • Lease pull-ahead pro­grams are now being used by man­u­fac­tur­ers & dealers
  • Pro­grams seek to get lease dri­vers to turn leases early & “re-lease” another vehicle
  • Being offered to lessees with less than 5 months remaining

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Swapalease
customer communication 2. Customers Do Not Think Contact During Ownership is Nuisance

  • Meth­ods and fre­quency of cus­tomer com­mu­ni­ca­tions to increase
  • Maritz sur­vey revealed that 18% of cus­tomers sought more contact
  • Sur­vey said that con­ver­sa­tion can­not stop with the sale of car

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AutoRemarketing
New-Car-Buyer 3. Auto Lending Has Strongest Origination Volume in Eight Years

  • Auto delin­quen­cies have declined to lev­els last seen in mid-2006
  • More credit is widely avail­able to those with higher-risk credit  sub­prime borrowers
  • Con­sumer choices and vehi­cle demand for new cars is rising

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Equifax
banks-jonathan

VIDEO: NADA Preview: New and Used Forecast

New Chief Econ­o­mist Steven Sza­kaly will explain NADA’s new vehi­cle fore­cast, and Senior Direc­tor Jonathan Banks will dis­cuss expected used vehi­cle trends on day two of the NADA convention.

VIDEO: Good Lighting Sells Cars
rodau-ryan
  Lighting Up Your Dealership
 

The lights and light­ing in your deal­er­ship can make a big dif­fer­ence in how your deal­er­ship is per­ceived, what peo­ple think when dri­ving by, and ulti­mately how you present your vehi­cles, the deal­er­ship, and your loca­tion in general.

Start with a light­ing audit and learn about color ren­der­ing, light­ing opti­miza­tion, and blan­ket­ing can opti­mize vehi­cle selec­tion and profitability.

VIDEO: The Power of Good Lighting
lindstrom-andrew
  LED Technology is a No-Brainer
 

More and more deal­er­ships are switch­ing to LED light­ing tech­nol­ogy every day. The rea­sons are that LED light­ing saves money and energy, low­ers main­te­nance costs, sells more cars, and pro­vides a pay­back in 36 months or less. Sim­ple as that.





The Week's Top News
CONTINUED

connected-car 4. Consumers Wary of Connected Car Technology & Tech Group Push

  • OEMs spend­ing bun­dles on research and innovation
  • Tech groups like Google, IBM, Microsoft putting pres­sure on OEMs
  • Self-driving cars, smart phones, and con­nected cars are the focus

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dollar-car 5. California Group Proposing Ban on Dealers Marking Up Auto Loan Interest Rates

  • Work­ing to gather 800,000 sig­na­tures to get on CA Bal­lot in November
  • Calls dealer loan inter­est add-on a “hid­den extra charge”
  • Seeks to get deal­ers away from any kind of markup that cov­ers costs

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zero-apr 6. $1,000 Cash Incentives Driving Down Used Car Values by More Than $500

  • Deal­ers pay­ing cash incen­tives are severely impact­ing used car val­ues later on
  • Cash incen­tives have 3x the impact on resid­ual val­ues as finance incentives
  • Actu­ally “loss of value” for cash incen­tives was $563 for one-year-old model

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Live at NADA 2014  
WHAT TO CHECK OUT AT NADA

MAX Dig­i­tal Founder Pat Ryan Jr.—whose last NADA ses­sion uncov­ered game-changing facts about Gen X and Gen Y car shoppers—will present the results of fur­ther research again at this year’s show. Ryan’s 2014 NADA work­shop will reveal even more eye-opening results on this topic from the con­tin­u­a­tion of the Dig­i­tal Deci­sion Jour­ney research project.

With Gen Y alone account­ing for 40 per­cent of the car-buying pop­u­la­tion, deal­ers have no choice but to adapt to these chang­ing behaviors. 

“We’re thrilled to present this research—which, while shock­ing, is also encour­ag­ing,” says Ryan. “More impor­tantly, this ses­sion will pro­vide a roadmap—full of win-win opportunities—to help sat­isfy these new con­sumer behav­iors, improve clos­ing rates, and grow prof­its for deal­ers and car man­u­fac­tur­ers alike.”

What: Speak­ing ses­sion: 
Online Strate­gies for Win­ning Gen X and Gen Y Buyers

Where and When: 
NADA 2014 Fea­tured Workshop

Fri­day, Jan­u­ary 24; 12:15 – 1:30 p.m.
Sat­ur­day, Jan­u­ary 25; 10:30 – 11:45 a.m.
Mon­day, Jan­u­ary 27; 2:30 – 3:45 p.m.

Who: Pat Ryan Jr., Founder of MAX Digital

Atten­dees may also stop by the MAX Dig­i­tal booth (3525) to learn more.

Keep read­ing to learn more about the Dig­i­tal Deci­sion Jour­ney research project. 

 
 



Build a Better Dealership
SMART INSIGHTS FOR SMART DEALERS

Toyota leasingWhat Could Off-Leasing Boom Mean in 2014?

Leas­ing turned things around for vehi­cle sales three years ago – fueled by low inter­est rates, ris­ing resid­ual val­ues, and sweet deals from automak­ers with lower monthly payments.

Now, more off-lease cus­tomers are start­ing to return to the mar­ket. Automak­ers, deal­ers, and lenders are start­ing to pon­der a few questions.

What does it mean for brand loy­alty and cus­tomer reten­tion? Off-lease cus­tomers tend to be good for reten­tion, but the com­pet­i­tive land­scape is get­ting intense with incen­tives and low-priced monthly pay­ments being promoted.

Gen­eral Motors entered the leas­ing race last month after being away for a long time.

Auto lenders have been soft­en­ing their under­writ­ing stan­dards this year. Leas­ing has been grow­ing in this envi­ron­ment. What if lenders have gone too far?

Click here to read about other issues being con­sid­ered includ­ing early buy­outs and the resid­ual value environment…….

Smart Thinking - Pass It On  
IMPROVING SALES

The Sit­u­a­tion: Deal­ers cur­rently have the sys­tems & the power of real-time mar­ket data to trans­form their used vehi­cle oper­a­tions and per­for­mance. What they have needed is a sim­i­lar sys­tem to man­age new car inven­to­ries and pricing.

A Solu­tion: Dale Pol­lak and the vAuto team have launched an Inven­tory and Pric­ing Sys­tem for new cars called “Con­quest.” Deal­ers will have com­pre­hen­sive, com­pet­i­tive mar­ket intel­li­gence to make new vehi­cle pric­ing and stock­ing deci­sions that reflect con­sumer demand and desire. In short, Con­quest gives deal­ers a new way to win in new vehicles—one that pro­vides more clar­ity and less con­fu­sion for con­sumers, and improved sales and prof­itabil­ity for dealers.

What Dale Pol­lak says: “Con­quest will change the game in new vehi­cles, just as our Pro­vi­sion sys­tem has changed the game in used vehicles.”

Bot­tom Line for New Car Sales Man­age­ment: Improved sales, prof­itabil­ity and trans­parency in their new vehi­cle departments.

READ MORE to get details on how this can work in your dealership.






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