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Tuesday, June 22, 2010

More Good News for Consumer Leasing

Lower payments, shorter trade cycles, improved credit markets and increased sales pressure from the OEM's are all contributing to push vehicle leasing back into the forefront of consumer automotive finance.

Our friend Jennifer Reed of Cherokee Publishing just posted an article "Leasing Opens Back Up as Automakers Seek Higher Sales" that details everything going on in the current auto market.

Just as American car buyers flocked back to "gas guzzlers" when gas prices dropped below $4 per gallon, leasing has always been poised to rebound.

What the article does not touch upon however, is how will the banks respond as OEM's captive finance companies grab more market share through subvented leases?

They would be smart to look at pre-owned leasing. The current wholesale markets are strong and there is virtually no competition - especially from the deep-pocketed OEM's.

Additional leasing resources can be found online at the National Vehicle Leasing Association.

Tuesday, June 1, 2010

Negotiate At Dealership Or Go To The Dentist?

Our friends at Auto Remarketing are reporting about a recent Microsoft survey focused on the buying habits, expectations and preferences of Millenials - the newest generational demographic made up of buyers 18-29 years of age.

Respondents were asked a series of questions including their thoughts about making a choice between negotiating at a dealership or going to the dentist.

http://digg.com/d31SgeB

Which do you think they overwhelmingly chose?


Tuesday, May 25, 2010

Auto Dealer Monthly Profiles Car Leasing Done Right

Auto Dealer Monthly's latest issue has a nice report how Boch Honda in Attleboro, Mass. is finding vehicle leasing is coming back in a big way.

www.autobidsonline.com/news/boch_honda.pdf

And although I disagree that residuals have to be inordinately high or subvented by the OEM's to have consumer appeal, Boch is still driving shorter trade cycles, increasing customer satisfaction and realizing bigger back end profits through consumer vehicle leasing.

They and other dealers like them should be a part of the NVLA. Does anyone know Ernie Boch or anyone else at their family of dealerships?

Monday, May 24, 2010

Used Car Leasing: Yes, You Can Do It - And It's On The Rise

Unbeknown to many consumers is that you can actually lease a used car. And when you think about it, the whole idea makes complete sense.

A 1 year old used car has already encountered the dramatic first year of depreciation. In years, two through four, a car depreciates far less and as a result, you get a great 'new' car for about 20-30% of the money.

According to used leasing expert David Ruggles of the Autos And Economics Blog, used car leasing is the way of the future for many consumers. "In a tight economy, car buyers are looking for new ways to drive more car for their money. A 2010 Infiniti G37 Coupe 2dr Sport can be leased at 48 months for about $575 per month. If you leased a 2009 version of the G37, for 36 months, the lease payment would run about $436 per month - a savings of almost 25%."

And as we move toward the second half of 2010, Art Spinella of CNW Research reports there were almost 80,000 used vehicles leased last month.

Here is more from our friends at Cherokee Publishing: CNW Research Reports Positive April Gains for Used Car Leases

Wednesday, April 14, 2010

Good News Continues for Vehicle Lessors

We're getting stories almost every day that used vehicle prices are strengthening and this is certainly great news for vehicle lessors.

Today, we get two stories from our friends at Cherokee Publishing / Auto Remarketing Today:

KBB Sees Strong Used Vehicle Values, Demand Continuing

Ford Reports Resale Values Up 23 Percent

We all know strong resale values mean less residual risk to lessors. With the SAAR improving and strong used vehicle values, how long will it take for regional and national banks to get back into vehicle leasing?

Monday, March 22, 2010

Revisiting How To Use Tmv And What Exactly Is It?

Revisiting How To Use TMV And What Exactly Is It?

A year ago we published a highly regarded article on how to use Kelly Blue Book's TMV in your next new car purchase. Here we, take a look back a year later and update the article with some amazing developments that have occurred in the last twelve months.

Friday, March 5, 2010

Expert Opinions on Toyota

Dr. Mike Smitka is one of the world-renowned experts on the Japanese automotive business. I met him through David Ruggles who shares the rights to their AutosAndEconomics blog on Google Blogger.

Check out Smitka's latest take on Toyta and let me know what you think!

Thursday, March 4, 2010

Thursday, February 25, 2010

Vehicle Leasing Rebounds

Great news on the indirect consumer leasing front. It's been a long way since the crash of July 2008.

Jim Henry reports some green shoots are beginning to show in an article posted at BankRate.com. On the heels of the Toyota debacle, this is certainly great news!

Saturday, February 6, 2010

Something's Not Right

After Toyota's dramatic decision to halt sales on its eight biggest selling models, it announced yesterday that it would begin selling again - provided dealers have enough parts to repair existing customers vehicles first.

http://www.autonews.com/apps/pbcs.dll/article?AID=/20100205/RETAIL07/100209917/1290

Surely this is a smart decision for the manufacturer who has blundered its PR management heretofore.

However, a voice in the back of my mind is wondering how a postage-stamp sized metal shim is going to truly fix this problem.

Personally, I've used shims to shore up non-moving things like cabinets, dressers, etc... But an accelerator is a moving part, in a vibrating car that bumps its way down the road.

Am I wrong, or does this seem like the little dutch boy trying to plug the dike with his fingers?

Monday, February 1, 2010

2008 Carver 56 ft SE Voyager - Calista Ann

OK. This does not technically fall into "Everything Autos" but it is owned by one of my clients in Automotive Leasing.

I had the pleasure of taking her out last summer and she is the bomb. With just 30 hours on the Twin Volvo 675 Diesels, she's as close to new as you can get.

Combine that with a $500k savings off of a comparably equipped new model, and you've got a once in a lifetime opportunity on a truly seaworthy motor-yacht.

Sail the British Virgin Islands, make a trip from the California west coast, down to Cabo, Honduras, Costa Rica and Panama. With this gal can do it in style.

Thursday, January 28, 2010

AutoBidsOnline Rising - An Open Letter To New Car Dealers

Have a look at our new video - let's get the online new car buying craze started!

Monday, January 25, 2010

Seller Beware!

Long time away from the blogging scene. With the holidays and hunting season in full swing, it's been a busy December and January. Alas, my hunting seasons are mostly over and the corners of my mind are again filled with all things auto retail.

And with that, another disturbing online scam is surfacing as told to me by good friend David Ruggles of the Ruggles Report.

In short, DO NOT trust the validity of any bank cashier's check without first verifying the funds with the distributing bank. With current technology, even a cashier's check is easy to forge and it is YOUR responsibility to verify its validity prior to deposit.

The cashier's check scam can occur with any online sale. However, the inherently high price of a vehicle lends this to remarkable exposure for those wishing to sell cars online.

In the case told to me by Ruggles, members of his Mercedes owners club in Las Vegas, who have posted cars for sale online (i.e. Craig's List, eBay, etc...) have received emails from foreign buyer's saying they saw the car online and it is exactly what they've been looking for. They are willing to pay full price and arrange for transportation.

They state they will send a cashier's check for the amount of purchase plus shipping. All the buyer needs to do is pay the shipping agent upon pick up and deposit the cashier's check in their bank account.

This all seems easy and quite reasonable.

DON'T DO IT! At least without dotting your I's and crossing your T's.

Be very suspicious of someone willing to pay your price in full without ever seeing the vehicle. Be aware of complicated stories about why they are willing to buy the vehicle sight unseen or if they don't make any effort to confirm the car's condition.

Otherwise, you may find yourself without your car and out the money you paid to the shipping company.