Car Dealer Daily

Fresh with a new lineup of brands and new models quickly heading to showrooms, the New General Motors is looking to further alter its image at dealerships. GM is encouraging dealers to remodel showrooms in order to bolster the brand’s image. Luckily, GM is offering to foot some of the bill for updates.

Should dealers require support from GM for the remolding, they must first ensure that GM brands are not sold alongside non-GM brands, which could pose issues for larger auto dealerships. Other requirements are that dealerships must have the remodeling completed within three years. Interestingly, repayment is also contingent of sales figures, not the costs associated with the remodeling. Repayment for remodeling will be made within five to 10 years. Continue reading ‘GM Wants Dealers to Conform’

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 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’

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’

With gas prices down a bit this fall, truck and SUV sales conveniently appear to be on the rise. Trucks back in May accounted for about 9.2 percent of auto sales, while September truck sales accounted for about 14.1 percent of sales. The peak of truck sales was back in July of 2005 when sales accounted for about 18.2 percent of total sales according to JD Power and Automotive News.

Pickup and SUV sales have also been helped by incentives. As truck sales have slowed over recent months, manufactures have offered huge discounts on these vehicles to help increase sales, especially among Chrysler, Ford, and GM models. Even Durango CO Chevy dealers have drawn-in customers from such inventive programs.

Despite small sales increases in vehicle sales, all automakers are still rushing to add smaller, fuel efficient models, which is exactly what has helped dealers such as Honda Denver dealers thanks for their attractive compact lineup. In fact, automakers are planning for the worst, and vehicles currently coming down the pipeline are based on high future gas prices, not lower gas prices. While automakers are rushing to supply these cars, dealers such as Richmond Used Cars are biding their time selling a high volume of high-value used cars.

When it comes to gas prices and demand, automakers will continue to work on getting incentives in-line with demand, which is good news for Bob Watson Chevrolet and other dealers who are eager to move slowing inventory. With the cost of fuel remaining a huge concern among consumers, expect more incentives on gas-guzzling vehicles even despite the sales increases. Continue reading ‘Truck and SUV Sales Up Slightly’

With gas prices on the rise and the economy making consumers and lenders nervous, it’s truly no wonder why auto sales overall are down. And with fewer sales, competition for auto sales is intense, especially among high-demand segments such as among compacts and subcompacts.

The highest selling subcompact cars are the Toyota Yaris and the Honda Fit. Both offer reliability and excellent fuel economy, not to mention an affordable price tag. The Honda Fit, says Honda Lexington, has also recently been redesigned, which should already be in Honda showrooms. With the new model, the previous generation models should be available with outstanding deals as dealers want to move those models first. Domestic automakers are struggling in this segment, with the Chevrolet Aveo suffering from dwindling sales and being the only subcompact in Boonville Chevrolet inventory to compete against fresh imports, such as the Fit.

Among compact cars, Ford is gaining momentum thanks to the recently redesign Ford Focus, which provides efficiency and attractive features for Littleton CO Ford dealer customers such as the Sync system. However, Ford can’t quite compete with the Toyota Corolla which has seen strong sales at Yakima Toyota, although they’re still down compared with last year. A stronger seller at the moment is the Honda Civic, which has boosted sales recently. Although they’re far behind, sales of the Chevrolet Cobalt, and Pontiac’s G5, are up slightly.

Compact SUV sales are in high demand. The appeal of the SUV remains among many new car buyers. Many simply want their SUV to be smaller and more fuel efficient. The Ford Escape, which was redesigned relatively recently, has remained popular, although it has sold few models than last year. A hybrid is Escape also appeals to plenty of buyers. The Honda CR-V and the Toyota dealer Minneapolis’s Toyota RAV4 remain the top sellers in the segments. Meanwhile, larger crossovers have lost ground, such as the Taurus X.

The luxury SUV segment is perhaps the hardest hit. Many consumers who can afford to buy a luxury SUV don’t really care about the cost of gas, but many consumers do. There are simply too many changes and in the economy not to consider such costs. As such, despite strong sales at Lincoln Mercury Los Angeles, the Lincoln Navigator and the Cadillac Escalade overall have both dropped in sales compared with last year’s figures. There has been a spike in sales among the Toyota Land Cruiser and the Lexus version, the LX, due to a redesign that was long overdue.

Trucks are also having difficulty when it comes to sales.  The once dominant Ford F-series has recently suffered a 40 percent decrease in sales nationwide. In response, Ford actually delayed production on the all-new 2009 model F-series. However, trucks have remained decent in pre-owned sales according to Used Cars Richmond VA who have offered plenty of dealers to keep inventory moving steadily. But even better than used trucks are used hybrids at Used Cars Shreveport, where pre-owned models don’t stay on the lot for long. The Toyota Tundra has also been hit by sales declines, but sales have increased slightly due to a recent redesign – redesign that has also helped the Sequoia SUV, which is based on the new Tundra. Sales of the Chevrolet Silverado have done decently at Birmingham Chevrolet dealers considering, and the Employee Pricing incentive program has helped the sales of the Silverado and other GM models.

Continue reading ‘Which Cars are Selling, and Which Cars Aren’t’

Over the past several months, car sales have reached historic lows. Car buyers are not only buying smaller and more efficient vehicles, but due to the weakened economy and high gas prices, consumers are buying few cars overall. Luckily, August auto sales appear to be slightly higher than the dismal July sales figures.

General Motors has seen buoyant auto sales thanks to their latest promotion, offering the average consumer employee pricing. In addition, many analysts are still forecasting an improvement even though overall sales remain down. GM’s latest sales incentive, a popular incentive among Chevy dealers Chicago shoppers, will bring the cost of a GM vehicle about ten percent below the invoice prices, although the discount varies by individual model.

Auto sales in the US reached a 16 year low in July, with most automakers reporting double-digit declines. Despite these sales decreases, Honda and Nissan where among the few automakers this summer that reported sales increases, especially at Nissan Boston MA where the compact Versa was particularly in high demand.

A weakened consumer confidence has kept potential car buyers away from dealer lots in recent months. Those who are buying new cars are looking at fuel efficient vehicles. With the credit crunch, some buyers are
also finding it harder to finance the vehicles that they are looking at says Auto Loans Volvo Passaic.

Most car dealers have seen full-size truck and SUV inventory sit unsold for longer periods of time. With greater interest in smaller vehicles, car dealers are demanding additional compacts and crossovers. In response to demand, automakers have actually reduced production of large trucks and SUVs, and have also held off redesigns of such vehicles. Dealers such as Richmond Used Cars as well as Dodge Financing Memphis are also pushing pre-owned inventory as a more value-packed alternative to new cars. Meanwhile, Toyota Dealers Orange County whose inventory of Prius hybrids are selling strongly as consumers are craving fuel efficiency.

Luckily for car dealers, the price of gas began to decline during the month of August. Although the price of gasoline is still more than 30 percent higher compared to a year ago, the decline will likely help improve auto sales. Although the August ends with some good news, analysts predict that it will be years before the truck market rebounds. Continue reading ‘August Auto Sales Appear Higher’