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.
Showing posts with label Current Auto Market. Show all posts
Showing posts with label Current Auto Market. Show all posts
Tuesday, June 22, 2010
Tuesday, November 17, 2009
2010 Honda Odyssey - Car of the Week
Just had a new article published on ArticlesBase - this one highlights the 2010 Honda Odyssey Touring. Please check it out on the AutoBidsOnline.com News Page and let me know what you think!
Friday, November 13, 2009
Would Hate to Be On This List!
Forbes.com just announced the results of a study that indicates the 10 worst 2009 cars on the road. They looked at Vincentric's 5 year repair cost data on 2009 vehicles and combined that with Consumer Reports' reliability ratings.
The list is certainly non-discriminatory and diverse. If you own an Asian car, you appear to be in good shape. But good luck with your resale value if you own one of these:
VW Touareg
Jaguar XF
Chevy Colorado
Chrysler Sebring Convertible
Chrysler Town & Country
Dodge Grand Caravan
Ford F-250 (crap! I have one but at least it's on a closed end lease!)
GMC Canyon
Lincoln MKS
Mercedes GL450 (shocker of the list)
In all, you can expect to pay more in repairs on these vehicles over a 5 year span than all other vehicles.
However, if you are smart and lease a new or late model vehicle that is always under the OEM warranty, you have little to worry about!
Thursday, November 12, 2009
How To Get A Great Deal On The 2010 Mazda CX-7
This week’s AutoBidsOnline.com spotlight on the latest and greatest in the new car market focuses on the 2010 Mazda CX-7 4dr S Touring 2WD. The CX-7 is one of the best in class in the Crossover segment and a real bargain listing at $26,550.
"Without a doubt, the 2010 Mazda CX-7 4dr S Touring 2WD is currently leading the way against rivals Subaru Tribeca and Chevy Equinox," said Jeff Cook, President of AutoBidsOnline.com.
Noted industry expert David Ruggles of the Ruggles Report suggests, “With a 36 month residual of 48%, the CX-7 maintains reasonable resale value after three years. Based upon an MSRP of $29,800, that equates to just $400 depreciation per month.”
CHROME REVIEW: None Available
DETAILS:
Invoice/MSRP: $24,905.00/$26,550.00
Current True Car Value: $25,052
Current Edmunds TMV: $25,529
MPG HWY: 25 mpg
MPG City: 18 mpg
CURRENT REBATES & INCENTIVES: 0% financing available from Mazda Credit. Regional incentives may vary.
WARRANTY: 3 years / 36,000 miles
RESIDUAL OUTLOOK: Good
COMPARABLE VEHICLES: Chevy Equinox - Subaru Tribeca
HOW TO GET BEST PRICE: Competitive pressure will always yield the best possible price. If you are looking to get the new CX-7, you would be well served to visit as many Mazda dealers as possible and go armed with as much information as possible.
Our friends at Edmunds.com and TrueCar.com have each performed significant research in stating their thoughts on the real market value of the CX-7. Their numbers are a great starting point.
However, if you don’t have the time or desire to invest hours in onsite dealer negotiations, you can join AutoBidsOnline.com and set your own price with our new AutoBidIt! feature. It’s all very easy:
1. Build out the exact car you want.
2. Determine the price you are willing to pay.
3. AutoBidIt!
AutoBids’ dealers are pre-screened for best of breed business practices and all are committed to straight-forward negotiation and transparent pricing. They will compete to be the first to meet your no-obligation bid as only the first dealer to do so will get your business.
"Without a doubt, the 2010 Mazda CX-7 4dr S Touring 2WD is currently leading the way against rivals Subaru Tribeca and Chevy Equinox," said Jeff Cook, President of AutoBidsOnline.com.
Noted industry expert David Ruggles of the Ruggles Report suggests, “With a 36 month residual of 48%, the CX-7 maintains reasonable resale value after three years. Based upon an MSRP of $29,800, that equates to just $400 depreciation per month.”
CHROME REVIEW: None Available
DETAILS:
Invoice/MSRP: $24,905.00/$26,550.00
Current True Car Value: $25,052
Current Edmunds TMV: $25,529
MPG HWY: 25 mpg
MPG City: 18 mpg
CURRENT REBATES & INCENTIVES: 0% financing available from Mazda Credit. Regional incentives may vary.
WARRANTY: 3 years / 36,000 miles
RESIDUAL OUTLOOK: Good
COMPARABLE VEHICLES: Chevy Equinox - Subaru Tribeca
HOW TO GET BEST PRICE: Competitive pressure will always yield the best possible price. If you are looking to get the new CX-7, you would be well served to visit as many Mazda dealers as possible and go armed with as much information as possible.
Our friends at Edmunds.com and TrueCar.com have each performed significant research in stating their thoughts on the real market value of the CX-7. Their numbers are a great starting point.
However, if you don’t have the time or desire to invest hours in onsite dealer negotiations, you can join AutoBidsOnline.com and set your own price with our new AutoBidIt! feature. It’s all very easy:
1. Build out the exact car you want.
2. Determine the price you are willing to pay.
3. AutoBidIt!
AutoBids’ dealers are pre-screened for best of breed business practices and all are committed to straight-forward negotiation and transparent pricing. They will compete to be the first to meet your no-obligation bid as only the first dealer to do so will get your business.
Tuesday, November 3, 2009
Online Activity Reaches Record High With Car Buyers
For the first time ever, more than 4 out of every 5 car buyers are using the Internet in their shopping experience. In a report just released by Chrome Systems, 86% of those responded to a poll conducted by Zogby International indicate they conduct online research prior to the purchase or lease of a new vehicle.
Manufacturer websites lead the way as 64% say they visit OEM sites while conducting research. However, third party portal sites like AutoBidsOnline.com are garnering increased appeal as well.
This is apparent as 73% say they shop online for convenience and 60% utilize the Internet to save time. Many shoppers also site that shopping online relieves the pressure of negotiating with a salesperson (58%) and also helps to identify the best car for them (50%).
Manufacturer websites lead the way as 64% say they visit OEM sites while conducting research. However, third party portal sites like AutoBidsOnline.com are garnering increased appeal as well.
This is apparent as 73% say they shop online for convenience and 60% utilize the Internet to save time. Many shoppers also site that shopping online relieves the pressure of negotiating with a salesperson (58%) and also helps to identify the best car for them (50%).
Used Car Prices Remain Strong
Edmunds.com just released a report confirming what Ruggles and I have been touting for several years. The dramatic pullback in new car leasing has resulted in a shortage of off-lease vehicles entering the auction lanes.
As a result, the decrease in used car supply has strengthened their current values and private owners are finding themselves in a stronger equity position.
Whether this will lead to lenders' return to leasing remains to be seen. However, it bodes well for everyone the current automotive market.
As a result, the decrease in used car supply has strengthened their current values and private owners are finding themselves in a stronger equity position.
Whether this will lead to lenders' return to leasing remains to be seen. However, it bodes well for everyone the current automotive market.
Wednesday, October 21, 2009
2010 Motor Trend Car of the Year
On the heels of winning the COY award in 2009 with the Forester, Subaru takes top honors again this year with the Outback. This is the first time the OEM has won the award two years in a row.
Starting at $23k, the Outback packs a 256hp punch with its 3.6L Boxer engine yet still maintains high levels of fuel efficiency, value and a roomy interior.
Read more from our friends at AutoRemarketingToday: http://www.autoremarketing.com/ar/news/story.html?id=10268
Starting at $23k, the Outback packs a 256hp punch with its 3.6L Boxer engine yet still maintains high levels of fuel efficiency, value and a roomy interior.
Read more from our friends at AutoRemarketingToday: http://www.autoremarketing.com/ar/news/story.html?id=10268
Tuesday, August 4, 2009
July's Most Popular Online Searches
Last month's most popular vehicle searches at AutoBidsOnline reflect consumers' desire to take advantage of Cash for Clunkers / CARS:
2010 Ford Fusion 4dr Sdn Hybrid FWD (City: 36, Hwy: 41)
2009 Toyota Camry 4dr Sdn I4 Auto (SE) (City: 21, Hwy: 31)
2010 Honda Odyssey 4dr Wgn EX (City: 16, Hwy: 23)
2009 Toyota Yaris 5dr HB Auto (GS) (City: 29, Hwy: 35)
2008 Chevrolet Corvette 2dr Cpe (City: 16, Hwy: 26)
source: www.autobidsonline.com July Search Results
2010 Ford Fusion 4dr Sdn Hybrid FWD (City: 36, Hwy: 41)
2009 Toyota Camry 4dr Sdn I4 Auto (SE) (City: 21, Hwy: 31)
2010 Honda Odyssey 4dr Wgn EX (City: 16, Hwy: 23)
2009 Toyota Yaris 5dr HB Auto (GS) (City: 29, Hwy: 35)
2008 Chevrolet Corvette 2dr Cpe (City: 16, Hwy: 26)
source: www.autobidsonline.com July Search Results
Thursday, July 30, 2009
Welcome Back GM
GM's announcement yesterday that they will get back into consumer vehicle leasing is great news. Even if it is only available on their luxury lines, it should spur action with the other captive finance companies and hopefully create a spark with independent banks.
Wells Fargo, Huntington and Fifth Third are three independent banks with a long history of vehicle leasing. Along with virtually everyone else, they suddenly exited the market about this time last year with a rash reaction to $4 / gallon gasoline and Chrysler, GM and Ford's mass exodus out of all or most of their previous leasing program.
The market is in desperate need for new lease funding sources - particularly with late model pre-owned. Unfortunately, most banks' risk managers have unfounded fear about pre-owned leasing (POL).
If they would think about it, a 36 month pre-owned lease on a 1YO vehicle poses LESS residual risk than the same vehicle leased a year ago for 48 months. Both vehicles will come off lease at the same time but the pre-owned lease encountered most of its depreciation under different ownership.
There used to be some legitimate concerns about existing equipment on a pre-owned vehicle - or lack thereof. However, Chrome Data and other vehicle configurators are mitigating much if not all of that risk.
I just don't get the banks' negative views on POL.
Regardless, GM's re-entry into the leasing market is good news. Here's hoping they learn from past mistakes and resist setting unrealistically high residuals.
Wells Fargo, Huntington and Fifth Third are three independent banks with a long history of vehicle leasing. Along with virtually everyone else, they suddenly exited the market about this time last year with a rash reaction to $4 / gallon gasoline and Chrysler, GM and Ford's mass exodus out of all or most of their previous leasing program.
The market is in desperate need for new lease funding sources - particularly with late model pre-owned. Unfortunately, most banks' risk managers have unfounded fear about pre-owned leasing (POL).
If they would think about it, a 36 month pre-owned lease on a 1YO vehicle poses LESS residual risk than the same vehicle leased a year ago for 48 months. Both vehicles will come off lease at the same time but the pre-owned lease encountered most of its depreciation under different ownership.
There used to be some legitimate concerns about existing equipment on a pre-owned vehicle - or lack thereof. However, Chrome Data and other vehicle configurators are mitigating much if not all of that risk.
I just don't get the banks' negative views on POL.
Regardless, GM's re-entry into the leasing market is good news. Here's hoping they learn from past mistakes and resist setting unrealistically high residuals.
Tuesday, July 28, 2009
More Insight on the CARS Debacle
Here's a good video report from JJ's AutoFinanceNews.net: http://autofinancenews.net/video/video/show?id=2192375%3AVideo%3A20602&xgs=1
CARS Mess Has Only Just Begun
As my grandfather would say, "The Federal Government could f*ck up a wet dream."
In their infinite wisdom, the EPA increased the combined MPG on certain vehicles last Friday. What impact did this have on buyers looking to take advantage of the CARS / Cash for Clunkers program?
Plenty as our buddies at Auto Remarketing Today reveal at: http://www.autoremarketing.com/ar/news/story.html?id=9804
In their infinite wisdom, the EPA increased the combined MPG on certain vehicles last Friday. What impact did this have on buyers looking to take advantage of the CARS / Cash for Clunkers program?
Plenty as our buddies at Auto Remarketing Today reveal at: http://www.autoremarketing.com/ar/news/story.html?id=9804
Wednesday, July 22, 2009
Cash for Clunkers Set To Disappoint - BIG TIME.
And it's going to be a real pain for all involved. Why you ask? Afterall, there is great anticipation of the program's official launch on Friday 7/24 and there is plenty of information on the web explaining how it will work.
Yet most consumers believe they are going to get some kind of voucher they can use when they trade in their "clunker".
Unfortunately, this is a big misconception. The program is only going to benefit those whose trade-in value is worth less than $4,500 (or $3,500 in some cases). Far less in reality.
I want to repeat that.
Unless your trade is worth LESS than your tax credit, Cash for Clunkers (or CARS as it is now officially called) won't add up to anything more than a hill of beans.
I had my "aha" moment last night talking with well known auto industry expert David Ruggles of AutosAndEconomics.
According to Ruggles, you've got to look at the program from a dealer's perspective to truly understand it.
When a dealer takes a trade, he bases the trade-in credit for what he can resell it for to another pre-owned buyer. Most who qualify for the program are not thinking about this very important aspect of the business. And unless we get the word out, the dealer is going to take the blame.
Here's a simple example that Ruggles posed that made it crystal clear:
Let's say you have a 2000 Dodge Caravan that qualifies for CARS and has a trade-in value of $4,500. You go to the dealer expecting to get $4,500 for your trade PLUS your handy little $4,500 "voucher" from the government. You'll get $9,000 for your trade, right?
WRONG.
The dealer cannot resell your Caravan and recoup the $4,500 you wanted him to give you for your trade. This is because CARS requires the dealer to SCRAP your Caravan.
So the typical customer goes to the dealer thinking he's going to get $9,000 for his trade when in reality he's only going to get $4,500. Most customers are going to be really pissed and blame the dealer when it's not the dealer's fault at all.
The only real beneficiaries of the program are going to be those who truly have a "clunker" that has no significant market value.
Given the state of the current economy, Cash for Clunkers is generating a buzz that I've never quite seen before. Consumers and dealers are all chomping at the bit to take advantage of it but few really understand how its going to work.
Yet most consumers believe they are going to get some kind of voucher they can use when they trade in their "clunker".
Unfortunately, this is a big misconception. The program is only going to benefit those whose trade-in value is worth less than $4,500 (or $3,500 in some cases). Far less in reality.
I want to repeat that.
Unless your trade is worth LESS than your tax credit, Cash for Clunkers (or CARS as it is now officially called) won't add up to anything more than a hill of beans.
I had my "aha" moment last night talking with well known auto industry expert David Ruggles of AutosAndEconomics.
According to Ruggles, you've got to look at the program from a dealer's perspective to truly understand it.
When a dealer takes a trade, he bases the trade-in credit for what he can resell it for to another pre-owned buyer. Most who qualify for the program are not thinking about this very important aspect of the business. And unless we get the word out, the dealer is going to take the blame.
Here's a simple example that Ruggles posed that made it crystal clear:
Let's say you have a 2000 Dodge Caravan that qualifies for CARS and has a trade-in value of $4,500. You go to the dealer expecting to get $4,500 for your trade PLUS your handy little $4,500 "voucher" from the government. You'll get $9,000 for your trade, right?
WRONG.
The dealer cannot resell your Caravan and recoup the $4,500 you wanted him to give you for your trade. This is because CARS requires the dealer to SCRAP your Caravan.
So the typical customer goes to the dealer thinking he's going to get $9,000 for his trade when in reality he's only going to get $4,500. Most customers are going to be really pissed and blame the dealer when it's not the dealer's fault at all.
The only real beneficiaries of the program are going to be those who truly have a "clunker" that has no significant market value.
Given the state of the current economy, Cash for Clunkers is generating a buzz that I've never quite seen before. Consumers and dealers are all chomping at the bit to take advantage of it but few really understand how its going to work.
Tuesday, July 21, 2009
Expect Big Improvement In July's Used Car Market
According to AutoRemarketing Today and highly regarded and CNW Research, July is going to be a great month for pre-owned vehicle sales.
What is the cause? Would you believe it has much to do with the fallout of the Chrysler and GM bankruptcies?
According to company president Art Spinella, "The surge in independent sales can be traced to franchised dealership closures. Some of the smaller General Motors and Chrysler stores have reconfigured themselves as used-car outlets."
Read more
What is the cause? Would you believe it has much to do with the fallout of the Chrysler and GM bankruptcies?
According to company president Art Spinella, "The surge in independent sales can be traced to franchised dealership closures. Some of the smaller General Motors and Chrysler stores have reconfigured themselves as used-car outlets."
Read more
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