Car Dealer Daily

Due to the global economy slowdown, and the strain placed on automakers from falling auto sales, many automakers are pulling out of costly motorsports. The latest withdrawals from motorsports are Subaru and Suzuki, which have both announced that they will not compete in the World Rally Championship.

With the exit of Subaru and Suzuki, the WRC leaves only Citroen and Ford as the only manufactures competition in next year’s championship says Subaru Service Seaside. Considering Ford’s struggles, they may be next to leave the sport.

With the rapid deterioration of the global economy, Buffalo Suzuki dealers say that automakers are finding it difficult to remain in costly racing competitions. In order to strengthen their brand, Suzuki and Subaru have both chosen to tighten their budgets and focus only on what’s truly necessary to their overall success. According to the Salinas Collision Center, reduced profitability from dwindling car demand worldwide has made it necessary to reduce spending wherever possible, including in motorsports.

Honda has already bowed out of Formula One racing for similar reasons as the automaker needed to apply the cash towards more crucial business initiatives according to East Hartford CT Honda. F1 teams such as Honda can spend as much as $500 million per year, but rally racing is significantly less costly.

Subaru and Suzuki were both competitive in rally racing. Subaru in particularly has been one of the sport’s icons, and is a part of their brand image. Continue reading ‘Subaru and Suzuki Exit Rally Racing’

While the Big Three automakers struggle to turn things around, and move away from looming bankruptcy, the domestic car dealers are also facing similar problems. With car dealers closing their doors repeatedly, many dealers that enjoyed relative sales successes just a couple years ago are now simply trying to survive.

The Big Three are looking to Washington to help them remain alive and competitive in a dismal auto market. Even with a potential federal bailout however, many dealers believe the benefits of such as bailout will arrive too late as sales continue to evaporate across the country. In addition to fewer sales opportunities and increased cost of commercial equipment leasing, credit is also evaporating, which is an essential component to the any dealership’s success.

To put the problem into perspective, the National Automobile Dealers Association estimates that about 900 of the 20,700 new car dealers in the US will go out of business by the end of the year, which is slightly higher than their original estimates. Next year, they predict that number could reach into the thousands.

Some analysts believe that some dealerships closing their doors are simply inevitable. There has simply been an overabundance of domestic dealerships in the market. With so many dealers going out of business, it’s estimated that 20,000 employees have lost their jobs in the month of October alone.

Many dealerships are also actively involved in their communities. From Little League sponsorships to philanthropy, dealerships are often prominent fixtures in their local communities. Many dealerships such as a dealer specializing in Pittsburgh 2009 Ford F-150 models has also invested heavily in their businesses in recent years, improving lounges, service bays, and other facilities to encourage customers to return.

Car dealers have faced plenty of hardships within the past two years. Both Los Angeles Ford dealers and Richmond Lincoln Dealers saw skyrocketing gas prices in particular as having a crippling effect on sales of the once-popular sport utility and pickup truck segments, which is precisely where domestic auto sales were strongest. But as the price of gas decreases, the economy continues to falter and credit has become increasingly scarce. Home prices and Wall Street have both tumbled steeply in recent months as well which does not bode well for car sales.

Finance companies such as GMAC, the financial arm of General Motors, have had to tighten their belts as well. In fact, GMAC will no longer be able to finance car buyers with a credit score below 700. This has contributed to fewer customers in dealer showrooms. It also has prevented some dealers from taking on new inventory. Dealers have also been slashing medical benefits for employees and are offering fewer complimentary services to customers in order to curb costs.

Despite the more recent effects of the economic downturn, it has been in the making for quite a while, and doesn’t just affect domestic brands either. With sales continuing to slip, many dealers have bolstered their used car inventory and service facilities in order to make up for new car losses. For example, Denver used cars dealers have seen a resurgence in pre-owned sales thanks to more frugal car buyers. Additionally, the profitability of profit centers has changed at many dealers, causing used cars Reading PA dealers to concentrate on promoting their service facilities as car sales become unstable.

Dealers are not entirely innocent. They could have persuaded Detroit hard to produce cars that offered more efficiency and were built with higher quality. But while sales of trucks and SUVs were strong at dealers such as Lubbock Chevrolet, there simply was no reason to put any pressure on Detroit. While a bailout could be just around the corner, dealers remain skeptical if such help will trickle down in time to save their businesses. Saturn Denver also considers what the bailout will mean for each individual brand under the GM umbrella. Continue reading ‘Domestic Car Dealers in Peril’

Car buyers are placing plenty of pressure on today’s car dealers. As such, car dealers are increasingly being looked upon to provide a positive buying experience, while also providing the best experience throughout ownership. Perhaps no other manufacturer understands the importance of this better than Mercedes-Benz. Not only do buyers have high standards in their treatment when purchasing a car, but they also require plenty of attention when receiving service and other dealer amenities.

As a result, Mercedes Benz will be working to develop an all-new Mercedes Manhattan dealership to be the flagship store in the heart of the Big Apple. The project will be the start of a new design direction for the Mercedes dealership network which is already eagerly anticipated by Pittsburgh used Mercedes dealers and will feature new architectural features that will compliment the posh MB brand.

The Manhattan Mercedes Benz store will be comprised of over 330,000 sq. ft. and will feature unique showroom technology and stunning design throughout. The dealership will also house Mercedes-Benz, Maybach, and Smart brands, along with a pre-owned inventory as well, plus vehicle service facilities.

Mercedes-Benz continues to see opportunities in Manhattan and see the location as a perfect hub for change. The showroom originally was designed by Frank Lloyd Wright and was later expanded and renovated in 2002. Although Mercedes is making a push to rejuvenate their dealers, they are are not only premium German automaker to see upgrades. Oceanside BMW and other BMW and Audi dealerships are also making upgrades to meet rising demands from customers, and to help remain competitive in a more challenging market. Meanwhile, other premium brands such as Infiniti are also under pressure, but are relying on fresh new models says Boston Infiniti dealers such as the new G37 Convertible to keep drawing-in potential buyers at dealers. Continue reading ‘Premium Auto Dealers Make Store Improvements’

Car buying these days isn’t easy. Lenders are tightening their belts and offering fewer loans, not to mention offering fewer leases. Some automakers such as Chrysler have even cut out leasing programs completely. To make matters worse, trade-in values have also plummeted, particularly for trucks and sport utility vehicles.

Despite the adverse market conditions, the fact remains that it’s certainly a buyer’s market. With car dealers hurting, they’ve become desperate to sell cars. Because of this, potential car buyers can expect to see substantial discounts when they head to dealerships.

Many automakers are offering plenty of incentives these days, in many cases saving buyers thousands of dollars. For example, Toyota is now offering 0 percent financing, which Toyota dealers Olympia says is uncharacteristic of the automaker as such as promotion is more commonly found among domestics. Trucks and SUVs especially have seen huge discounts among Detroit Chevrolet dealers, in some cases tens of thousands in discounts.

While it may be a buyer’s market, auto sales continue to fall each month, with auto sales reaching their lowest point in decades. Although fresh 2009 models are not hitting the showrooms of Boston Infiniti dealers and other dealers across the country, many 2008 models remain unsold on dealer lots. This has placed a huge strain on dealers as the cost to finance these vehicles is steep, and having them sit unsold for longer periods of time has placed a heavy toll on many dealerships. In fact, hundreds of dealerships are expected to go out of business by year’s end according to the National Automobile Dealers Association.

With all the turbulence in the current auto market, how exactly should one go about buying a new car? Just as importantly, what should be done with your old car? These are important questions in the current unstable economic atmosphere.

Perhaps the best place to begin is to explore your financing options. Regardless of whether you have good credit or bad credit, your financing options may be limited, making it wise to begin shopping for financing first. Needles to say, however, those with bad credit may have a little more difficulty says Bad Credit Car Loans Chicago, especially considering some lenders, such as GMAC, will no longer consider shoppers with credit scores below 700.

If you are fortunate enough to have solid credit, you’re likely to find an easy approval process and even some pretty attractive interest rates for your new car. For those with less than ideal credit, you may be looking at having to put a 15 percent down payment on your vehicle to qualify. While a new car may be tough to secure financing for, used cars Nashville dealers say that a pre-owned car is usually easier to get financed.

Shop for a car loan before you shop for the car to help save money and make the process a bit smoother. There are plenty of websites that can help you shopper for a loan online, such as E-Loan. Your local credit union or bank may also be offering attractive rates.

Finally, pay a visit to the dealership. In many cases you may be able to find better financing options elsewhere, so it will be advantageous to secure financing before stepping on the lot. However, some buyers of certain makes, such as Nissan or Toyota, may find 0 percent financing available if they have an excellent credit history, which has made Nissan Saint Louis customers quite relieved upon their new car purchase.

Another important aspect of the financing process to consider is the length of the loan period. If you intend to hang on to the car for much longer than six years, then you shouldn’t have a problem. But if you’re looking to buy a new car in three years, Toyota dealer Hays warns that a longer loan may not be a good deal.

The problem with longer loans is that a vehicle depreciates so quickly over a long period, and you may end up paying much more than the vehicle is worth.

Consider what you’re going to do with your current vehicle. Detroit Chevrolet dealers warn that if your current vehicle is a truck or SUV, you may find that you vehicle isn’t worth nearly has much as what you paid for it. The value of pickups and SUVs, for example, has fallen by about 23 percent compared with last year. With that in mind, prepare for some bad news. While you may want to get something brand new, the steep depreciation is another reason to consider holding on to your current vehicle. Check out Kelley Blue Book to see what your vehicle is worth and the decide what your next move will be. Some of Durango Toyota customers have even considered finding an online Toyota parts store and simply investing in fixing up their current vehicle.

In today’s economy it’s the wisest move is to think conservatively. When buying a car, take your time and shop for the best deal possible.

Continue reading ‘Car Buying in a Shaky Economy’