Car Dealer Daily

General Motors has been faced with plenty of negative press and criticism lately. With the stalled bailout to add to falling new car sales and the fact that they continue to bleed cash, many wonder why the mammoth automaker doesn’t change its ways before it’s too late. But GM affirms that change is already underway, and that pundits and politicians simply have failed to talk with customers and dealers and see the newest wave of vehicles they’re producing for themselves.

Among the news that has helped confirm GM’s changing ways is a new Sales Satisfaction Index Study from J.D. Power that shows that GM dealers like Detroit Chevrolet dealers or Lubbock Chevrolet dealers are providing some of the best customer service in the auto industry, rivaling that of foreign brands. While GM strives to make additional improvements to its model lineup and dealer network, the automakers contends that change is already in place and is not just wishful thinking.

Quality is another area where General Motors continues to uphold. GM reduced warranty repairs by about 40 percent between 2002 and 2006, and cut such repairs down by 14 percent between 2006 and 2007. Quality is important to car buyers these days, especially when imports have exuded much higher quality than domestic vehicles for quite some time, which has certainly helped fuel sales among Toyota dealers Olympia. As such, GM claims that quality has already improved dramatically and they appear to be on track for continuing to improve quality and manufacturing efficiency.

GM can reference plenty of studies and products that have received kudos recently, but have largely gone unnoticed by the mainstream media in recent weeks. For example, the award-winning Chevrolet Malibu was the segment leader in the J.D. Power and Associates Initial Quality Study and remains a strong seller at Lewis Automotive and overall within Chevy’s lineup. Additionally, brands such as Chevrolet, Pontiac, Cadillac, and Buick, all ranked well in J.D. Power’s Initial Quality Study, which was no surprise to Chevrolet Tuscaloosa dealers who have seen commendable improvements in quality in recent years. Other GM brands that also ranked above average in the study included Cadillac, Hummer, Saab, and Saturn.

So for many car shoppers looking for a new car, GM is not folding up and calling it quits. Although the talk of the bailout is far from over, the automaker plans on making progress in the future and continuing the progress it has made so far. Continue reading ‘Don’t Ignore Progress from General Motors’

Over the years, car dealers have become synonymous with less than honest sales tactics. Consequently, the information that dealers provide during a sales deal is usually not taken at face value. With the seemingly sly nature that car dealers have been associated with, consumers think that the dealers profit much more than they actually do.

Recently, the National Automobile Dealer Association (NADA) conducted a survey examining the profits of car dealers around the country. The survey found that only one and a half percent of car sales yielded a profit, while more than 20% of dealers reportedly lost money. Another finding in the survey was that foreign auto dealers are faring somewhat better in the current market place than dealers of domestic cars.

Needless to say, car dealers have many new challenges. Consumers have more choices than ever, and the economy and price of fuel has contributed to an abrupt shift in buying habits and demands. For example, among dealers selling domestic makes such as Detroit Chevrolet Dealers, inventory of full-size trucks and SUVs like the F-150 and Expedition generally had no trouble selling in recent years, but in recent months have been increasingly difficult to move off the lot, even with attractive incentives. Instead of new car buyers gravitating towards large vehicles and sport utility vehicles, consumers are now looking to small, efficient cars and crossovers. Those dealers that sell brands with a full lineup of economical and even “green” offerings are therefore reaping more of the benefits.

But even dealers with plenty of hybrids or high MPG models are not on stable ground as nationwide car sales are down overall, with June marking the lowest point in auto sales in over a decade, and each subsequent month not being much better.

In such an adverse environment, car dealers such as our Saint Louis Mitsubishi are changing their ways in order to stay profitable. Dealers are reducing the amount of new hires, reducing customer perks and the availability of loaner cars, and streamlining operations to help save money.

In addition to generating less money than what’s perceived by consumers, much of the money auto dealers do make on a vehicle goes back into the dealership according to Los Angeles Toyota dealers. Like most businesses, income needs to be reinvesting back into the business to help it grow, whether it means new facilities, employee benefits, or increasing inventory. Revenue from an entire sale is not simply pocketed by the sales person involved.

The dramatic changes in the automotive industry have caused car dealers to have vastly different operating strategies. Rather than new cars being the main profit center, dealers are now promoting service centers more and more as they now provide a more steady flow of income. In addition, Texarkana Used Car dealers and other dealers are focusing on their used car inventory more so than their new vehicle inventory.

This is not intended to defend all dealerships and their practices. The important thing to remember is that consumers should do their homework and utilize resources such as Edmunds.com or Kelley Blue Book to understand what a vehicle really costs and try to get within reason of that price point. Make sure you focus on your deal and feel good about, and don’t worry what the dealer potentially is or isn’t getting on his end. Continue reading ‘Car Dealerships May Not Be As Profitable As Consumers Think’

Service centers are quickly becoming hot profit centers for car dealers around the country. As the economy continues to creep along, and gas prices keeping new car sales prices down, many dealers are focusing their efforts on their service centers to make up for low vehicle sales.

Many dealers are spending money on revamping their parts and service departments to keep profitable and to keep customers coming onto the lot. Dealers such as Patrick Pontiac have recently invested money in new waiting areas and lounges to help keep customers happy and comfortable when servicing their vehicles. Customers at Used Cars Rochester can even sip gourmet coffee while waiting for service thanks to the Starbucks they have inside their dealership!

Car dealers are finding that they’re selling more parts and maintenance than ever before thanks to their efforts, which helps to offset the lack of demand for new cars. Dealers that have maintained large truck and SUV inventories have been especially hurt. For example, while new Sequoias sit idle at one dealer in Texas, another dealer is more successful promoting Toyota replacement parts and accessories along with routine maintenance.

Websites and other forms of advertising are being increasingly utilized to promote dealers’ parts and service offerings. Many are struggling to educate customers and potential customers that they can offer much more than just new and used cars and that all their parts and service needs such as for those customers looking for an Oil Change Shreveport LA can also be satisfied.

Parts and service typically account for a large part of dealer profits. These profits usually account for half of the dealer’s total profits, with the other half coming from new and used car sales. With significantly reduced new car sales across the country, accounting for the lowest new car sales in more than a decade, the service and parts centers are becoming the focal point of many dealerships.

In recent years, improvements in new car quality have reduced the number of warranty repairs at dealers. This has significantly lengthened the times between service appointments by customers. To keep the flow of customers coming in, many dealers such as Auffenberg Nissan have invested significantly in their auto facilities.

With fewer new car sales, and fewer warranty repairs, service is becoming the one factor that dealers can use to get people to come back to the dealership. But competition plays a huge role in the success of a service department. Competing against dozens of other dealers as well as dozens of other independent mechanics and repair shops, dealers like Toyota Service Burnsville are finding that they’re in dire need to differentiating themselves and improving quality of service to keep people coming back. Online Toyota parts stores have even seen an increase in customers who want to invest in their aging vehicles, rather than buying something new.

Lower prices, larger waiting areas, and more complimentary services are all being added, not to mention a wider range of parts and after market accessories to make dealers the one stop shop for everything automotive.

Continue reading ‘Dealers Are Leveraging Service Centers’

Car dealers are facing plenty of obstacles. The struggling economy has placed a huge strain on the automotive vertical, and no one is feeling the effects more so than car dealers themselves. The current sales slump for dealers has been simply devastating, with the National Automobile Dealer Association expecting hundreds of dealerships going out of business by the end of the year.

Those suffering the most month after month seem to be the Big Three, who have each been eliminating brands, redundant models, and/or idling manufacturing facilities left and right.

Although the public perception of car dealers isn’t a positive one, car dealers needless to say play a vital role in the automotive industry as a whole. But as the NADA estimates that about two car dealers will close their doors per day, the automakers themselves may find that they have more trouble ahead of them than before.

Among the dealers that have already shut their doors is Bill Heard Enterprises. The dealer group had 13 showrooms spread across the country from Arizona to Georgia, and accounted for 7% of total Chevrolet sales last year. When large dealer groups such as Bill Heard Enterprises can’t hold up against the current economy, imagine the struggles of smaller car dealerships that are facing the brunt of falling new vehicle sales.

Analysts fear that the auto retail system is simply flawed in its current state. These flaws have fueled positive outcomes for consumers. Consumers are more educated than ever, and understand where to look for valuable information regarding the right price to pay for a new or used car. This is also one of the factors that have ignited more competition between dealers than ever before observes Bad Credit Auto Loans Elizabethtown. This competition has even led to dramatically lower prices, and has even cut into dealer profits dramatically.

These trends have affected nearly every make. Consumer traffic in dealer showrooms has declined, even for brands with a reputation for fuel efficiency and reliability says Marlborough Bad Credit Car Loan. Unfortunately for domestic brand dealers, they’re in an even more precarious place.

On top of these adverse trends affecting car dealers, the automakers themselves have been putting pressure on dealers. Many automakers, such as Chrysler, are cutting their leasing programs, which have helped new car sales. Additionally, with the current credit crunch, dealers are feeling the pinch. Car dealers rely on credit to run their businesses according to Chicago auto loans lenders, and with credit drying up, dealers are finding themselves in increasingly difficult times.

It wasn’t that long ago when bad credit auto financing was done almost exclusively at many dealerships such as Bob Watson Chevrolet and many others. But these days, those are the types of loans that are made less often, and as a result financing companies such as GMAC are only considering borrowers with a 700+ credit score. Although credit is still available to drivers stresses Car Loan Shillington lenders, it’s simply becoming more difficult to attain.

In some areas of the country, interest rates have skyrocketed past the mid 20 percent range, which is far higher than those offered by credit card companies. But Nashville Credit Finance reminds consumers that they aren’t the only ones subject to such costs. When a car sits on a dealership lot unsold, the dealer also has to pay interest on the vehicle. For dealers that have vehicles that tend to sit longer, such as Hummer or Jeep dealerships or those with large truck and SUV inventories, those are extra costs that two years ago were not a concern for dealers.

As dealerships begin closing their doors one after another, the automakers are suffering as well. Not only are they losing potentially lucrative sales outlets according to personnel at Auto Financing Lubbock, but they also are standing idly by as dealers who invested heavily in upgrading showrooms per the automaker’s request and added extensive inventory lose their businesses.

Unfortunately for dealers and automakers, there may be worse news ahead for the auto industry before things get dramatically better. While used car sales at Used Cars Kansas City are holding up, new car dealer sales are not quite as fortunate.

Continue reading ‘The Auto Industry Pushes Through Hard Times’