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?

North Texas Suzuki Dealership's Better Business Bureau Accreditation Dropped

Per the local CBS station, Suzuki Cars of McKinney has been dropped by the Better Business Bureau for unethical business practices. A large volume of customer complaints led to a BBB undercover investigation as CBS 11 reports:

http://cbs11tv.com/local/Suzuki.Cars.of.2.1379440.html

It is stories like this that give dealers everywhere a bad name. And it's a shame.

You would think some people would learn they need to do business the right way.

Are Used Truck Prices Finally Starting to Soften?

Our friends at Black Book are starting to see some softening in the red hot pre-owned truck market. They are not sounding the alarm just yet but today voiced concern that a slowdown may be on the horizon.

This is important as Black Book has editors strategically placed throughout the country. Each monitors wholesale vehicle auctions and update values in 14 truck and 10 car segments daily. Each day, these values are compiled, reviewed and adjusted, making Black Book the most accurate and responsive wholesale data source in the market.

“I’ve traveled to Atlanta and met with their editors and executive management,” says noted industry expert David Ruggles of the Ruggles Report. “Without a doubt, they are on top of the wholesale market unlike anyone else.”

Auto dealers with a high supply of late model, pre-owned trucks may be well served to hold off on purchases until the market shakes out and get aggressive with their sales, pricing and advertising to move these units off their lots.

As indicated above, there is no cause for alarm - yet. But you don't want to find yourself holding the bag.

Read the full article at: http://www.autoremarketing.com/ar/news/story.html?id=10139

Latest Buy Bid at AutoBidsOnline

If you are a Honda Dealer in the Houston Metro area, please consider the following. This prospect has paid $19.99 to submit their bid so they are serious about buying today! Contact me at jcook@autobidsonline.com if you are interested.

2010 Honda Odyssey 4dr Wgn Touring w/RES & Navi

Exterior Color : not specified / Interior Color : not specified
Options( TAFFETA WHITE, STANDARD PAINT, IVORY, SEAT TRIM)

MSRP - $40,755.00
Dest - $710.00
Total MSRP - $41,465.00
Invoice - $36,902.60
Dest - $710.00
Total Invoice - $37,612.60
Bid - $37,500.00
StyleID - 318967
VehicleID - 821

How To Make A Great Deal On A New ¾ Ton Truck

Now may be one of the best times ever to make a killer deal on a new truck or SUV. CARS has had a tremendous impact on US auto sales and one of the byproducts is a growing supply of trucks and SUV's sitting on dealer lots.

How To Make A Great Deal On A New ¾ Ton Truck

Be Careful Who You Mess With

It amazes me how some auto dealers still play the game this way. Certainly there is an art to the sale, but the guys at this Dallas area dealership are probably wishing they dealt in a more straight forward and transparent manner.

An up comes in ready to buy. He and his wife are dead set on buying a new car and looking to do a Cash for Clunkers trade. They've done their research and know their vehicle qualifies for $4,500 under the government's CARS program.

The dealer decides to milk it for all it's worth and ties them up in the old sales manager's office back and forth. After a hour and a half, the customer gets pissed and walks. The dealer gets nothing but a really poor review from a noted columnist.

Now why on earth would you make a lay down so difficult? Especially these days!

Work the deal but for Godsakes, make it work!

The world of car sales is changing at warp speed. Those that get it stand to win and those that don't are going to get left behind quickly.

Just remember, each prospect deserves to be treated with respect - regardless if they come in with a chip on their shoulder or not. After all, they might just be a noted columnist...

http://frontburner.dmagazine.com/2009/08/12/new-car-dealer-con-game-involves-cash-for-clunkers/#more-24458

The Long Term Effects of Cash for Clunkers

Just posted an article about the unintended consequences of Cash for Clunkers / CARS. It's been a short-term boon for franchised new car dealers but will it last and will it come at the expense of others?

http://www.articlesbase.com/automotive-articles/cash-for-clunkers-long-term-effects-1097970.html

Cash For Clunkers - Scary Thoughts for Dealers

I just saw an interview with a Dodge dealer in Michigan City. Like many franchised auto dealers, he has already taken in a larger number of "clunker" trades - 13 as of this morning. The report indicated there are many other dealers who have already traded for 30 or more.

Do you see the problem yet? There are plenty with the latest Congressional brainchild - but this particular problem is in the math.

Congress has allotted the CARS program one billion dollars to reimburse dealers for qualified trades. At an average of $4,000 per trade, that is a cap of 250,000 vehicles that will be eligible for reimbursement.

And while current averages are not yet known, assume for a minute our Michigan dealer’s 13 clunker trades represents the national average. If that is the case, multiplied by 20,000 franchised dealers, we are already 10,000 vehicles OVER the amount the program is scheduled to fund!

We still don't know how long it is going to take the dealers to get reimbursed. The window of "opportunity" here, if you can call it that, is huge.

So just how many dealers are already sitting on crap cars with $4,500 ACV's? There could be thousands.

How's that for scary?

In the end, Congress will probably just print more money but who knows for sure. They haven't gone out of their way to protect wrongfully terminated Chrysler and GM dealers.

Cash for Clunkers / CARS continues to be a mess.

I cannot wait for government run health care.