Dealer Group To Study Automaker Image Programs

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By Michelle Krebs October 21, 2011

The National Automobile Dealers Association (NADA) has launched a study to determine whether automaker-mandated programs to upgrade dealership facilities generate any return on investment for dealers in the form of increased new-vehicle sales or improved customer satisfaction. “Each year, dealers collectively invest billions of dollars in facility upgrades, much of it mandated by the auto manufacturers,” NADA Chairman Stephen W. Wade (above) told the Automotive Press Association in Detroit on Thursday. “These costs have a significant impact on dealer balance sheets, in many cases severely straining them and in some cases even persuading a dealer to leave the business rather than commit such large sums.”

Wade said surprisingly little hard evidence exists to quantify the return on investment – either to the automaker or to the dealer, which is leading to “widespread frustration” with manufacturer facility-image programs. “Generally absent are solid economic arguments such as, updated stores sell X more cars for every one million dollars invested, or Customer Satisfaction Index scores soar when a facility is upgraded,” he said. Asked what the goal would be for return on investment for factory-required upgrades, Wade quipped: We’d like to seen any return on investment.” He implied that some of the manufacturers’ demands are outrageous, not just requiring, for instance, that floor tiles in dealerships be gray but be a particular shade of gray. “Image programs are typically justified on qualitative grounds such as the store image must support the brand, or customers expect all our stores to offer a similar look and feel,” he said, adding that dealers are tired of hearing the McDonald’s Golden Arches analogy from manufacturers and need to see more quantitative evaluation of their investments.

To come up with objective data, NADA has hired Glenn Mercer, a former partner with consulting firm McKinsey and Company (and an occasional contributor to AutoObserver.com), to produce a report by year-end that looks at factors that drive return on investment of facility programs, both positive and negatives. The study will include confidential interviews with industry experts, including dealers, factory representatives, attorneys, accountants, brokers experienced in dealer finances and valuations, dealership architects, academic economists who focus on auto retailing – even car buyers. The examination also will look at facility standards for other retailing industries, including restaurant franchises and hotel chains.

Wade added that tightening credit has made it difficult for dealers to obtain financing for facility upgrades at the same time that the value of dealers, which are single-purpose facilities, has dropped by as much as 50 percent. In the past, dealers could borrow 80 to 90 percent of the total cost of a dealership upgrade; he said loan-to-value ratio has dropped to 50 to 60 percent. “It’s darned hard to get the money,” Wade said.

Dealer Sales Outlook
Wade said the economy is expected to support sales this year of close to 13 million vehicles. Paul Taylor, the NADA’s chief economist, is officially forecasting 12.7 million vehicles sold in 2011. “We expect a great fourth quarter for mid-sized and small cars and CUVs. American businesses should be back in the market, buying pickups and vans. And truck-based SUVs are selling well,” he said.

For 2012, NADA’s Taylor “remains reasonably optimistic about the economy, which continues to grow at a modest rate,” said Wade, but the association that represents some 16,000 dealers is concerned about the European debt crisis and the U.S. deficit. To that end, NADA has not zeroed in on a specific U.S.-market sales forecast for 2012, but is offering a broad range from 12.5 million to 13.5 million units, though Wade expressed personal confidence that 2012 sales will be higher than 2011’s. “This year has brought a renewed sense of optimism and a feeling that we are once again headed in the right direction,” he said.

Michelle Krebs:  is Editor-in-Chief of AutoObserver.com. Follow @AutoObserver on Twitter.

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Dealer Group To Study Automaker Image Programs

AppId is over the quota
AppId is over the quota
By Michelle Krebs October 21, 2011

The National Automobile Dealers Association (NADA) has launched a study to determine whether automaker-mandated programs to upgrade dealership facilities generate any return on investment for dealers in the form of increased new-vehicle sales or improved customer satisfaction. “Each year, dealers collectively invest billions of dollars in facility upgrades, much of it mandated by the auto manufacturers,” NADA Chairman Stephen W. Wade (above) told the Automotive Press Association in Detroit on Thursday. “These costs have a significant impact on dealer balance sheets, in many cases severely straining them and in some cases even persuading a dealer to leave the business rather than commit such large sums.”

Wade said surprisingly little hard evidence exists to quantify the return on investment – either to the automaker or to the dealer, which is leading to “widespread frustration” with manufacturer facility-image programs. “Generally absent are solid economic arguments such as, updated stores sell X more cars for every one million dollars invested, or Customer Satisfaction Index scores soar when a facility is upgraded,” he said. Asked what the goal would be for return on investment for factory-required upgrades, Wade quipped: We’d like to seen any return on investment.” He implied that some of the manufacturers’ demands are outrageous, not just requiring, for instance, that floor tiles in dealerships be gray but be a particular shade of gray. “Image programs are typically justified on qualitative grounds such as the store image must support the brand, or customers expect all our stores to offer a similar look and feel,” he said, adding that dealers are tired of hearing the McDonald’s Golden Arches analogy from manufacturers and need to see more quantitative evaluation of their investments.

To come up with objective data, NADA has hired Glenn Mercer, a former partner with consulting firm McKinsey and Company (and an occasional contributor to AutoObserver.com), to produce a report by year-end that looks at factors that drive return on investment of facility programs, both positive and negatives. The study will include confidential interviews with industry experts, including dealers, factory representatives, attorneys, accountants, brokers experienced in dealer finances and valuations, dealership architects, academic economists who focus on auto retailing – even car buyers. The examination also will look at facility standards for other retailing industries, including restaurant franchises and hotel chains.

Wade added that tightening credit has made it difficult for dealers to obtain financing for facility upgrades at the same time that the value of dealers, which are single-purpose facilities, has dropped by as much as 50 percent. In the past, dealers could borrow 80 to 90 percent of the total cost of a dealership upgrade; he said loan-to-value ratio has dropped to 50 to 60 percent. “It’s darned hard to get the money,” Wade said.

Dealer Sales Outlook
Wade said the economy is expected to support sales this year of close to 13 million vehicles. Paul Taylor, the NADA’s chief economist, is officially forecasting 12.7 million vehicles sold in 2011. “We expect a great fourth quarter for mid-sized and small cars and CUVs. American businesses should be back in the market, buying pickups and vans. And truck-based SUVs are selling well,” he said.

For 2012, NADA’s Taylor “remains reasonably optimistic about the economy, which continues to grow at a modest rate,” said Wade, but the association that represents some 16,000 dealers is concerned about the European debt crisis and the U.S. deficit. To that end, NADA has not zeroed in on a specific U.S.-market sales forecast for 2012, but is offering a broad range from 12.5 million to 13.5 million units, though Wade expressed personal confidence that 2012 sales will be higher than 2011’s. “This year has brought a renewed sense of optimism and a feeling that we are once again headed in the right direction,” he said.

Michelle Krebs:  is Editor-in-Chief of AutoObserver.com. Follow @AutoObserver on Twitter.

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What The Dealer Has To Tell You

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AppId is over the quota
Used car dealers are legally obligated to divulge certain information (ryantxr, Flickr).

When I was 21, I went to look at a used car advertised in a local paper. The seller had an honest face, he was friendly, and even though the car was a few years old it looked brand new. When it turned out the seller and I shared the same last name, the deal seemed pre-ordained. So after I had my mechanic okay the engine and test-drive the car with me, I bought it, paying with cash at the seller’s insistence.

Three months later, my new car was hit from behind while I was stopped at a red light. I was unhurt and my car was drivable, so I went straight to the body shop for a repair estimate. The repair shop called me three days later saying the damage was repairable, but added, “This car was in a pretty serious accident. Did you know that? The frame was bent and it’s been straightened.”

So that’s why the seller had asked for cash, and why the paint job looked so new. He had crashed the car, fixed it, sprayed it and put it up for sale.

Why didn’t I ask the seller if the car had been in an accident? Well, I had zero experience in purchasing something costing a lot of money. More importantly, I just figured the guy would lie to me anyway, so there was no point in asking. Or so I thought.

As it turns out, there are good reasons to ask probing questions of a dealer or private seller, and you should get the answers in writing. AOL Autos spoke with Sergei Lemberg, a New York-based lawyer specializing in Lemon Laws, and he provided the following essential questions one should always ask a seller. Some of these apply to dealer sales only, but they are still great examples of how thorough you should be in grilling someone selling a car.

1. Do You Have The Repair History For This Vehicle?

“If the car is relatively new, or Certified Pre-Owned,” Lemberg says, “A manufacturer’s dealership should be able to look up the Vehicle Identification Number (VIN) and provide you with a record of the work that’s been done on the car at various dealerships. While it won’t include repairs by shops that aren’t affiliated with the manufacturer, you could glean important information about problems encountered by the previous owner.”

2. Where Is The Buyers Guide?

“Federal law says that every used vehicle must have a Buyers Guide conspicuously posted, typically on one of the rear windows,” says Lemberg. “The Buyers Guide will let you know if the dealer is selling the car ‘as is’ or if there is a warranty. If there’s a warranty, the Buyers Guide will let you know what’s covered and how much the dealer will contribute for repair costs. If No Buyer’s Guide is posted, turn around and go to another dealer.”

3. What Is Your Return Policy?

Lemberg says it’s a myth that the law mandates a cooling-off period, during which time you can return a vehicle if you change your mind. Nevertheless, some dealers have a return policy. “Find out what the return policy is,” he says, “And get it in writing. Some states also have lemon laws for used cars, but it’s an option of last resort.”

4. Can I See The Vehicle’s Title?

“Nefarious used car dealers may try and misrepresent vehicles,” says Lemberg. “In many states, a vehicle’s title must reveal if the car was a lemon buyback, a salvage, or a rebuilt vehicle. Check with your state Attorney General to see how titles are marked in your state. Keep in mind, though, that seeing a vehicle’s title isn’t a substitute for researching the VIN on your own. Some state motor vehicle departments offer this service online, but you can also use a service like CARFAX. Used car dealers sometimes engage in ‘title washing,’ whereby a lemon buyback or salvage vehicle from one state is transported to and sold in another state with less stringent titling requirements. Researching the VIN is the only way you’ll know where the vehicle has been.”

And a word of warning, do not rely on a CARFAX or similar documentation provided by the dealer, as “it might be old or altered,” Lemberg says.

5. Will You Put That In Writing?

“Dealers anxious to unload vehicles will often promise you the moon, whether it relates to financing, warranties, or vehicle repairs,” Lemberg says. “Unless you get it in writing, as part of the contract, you’ll have a hard time proving that the dealer engaged in misrepresentation. By the same token, do not leave the dealership without the financing arranged, agreed to and signed for.”

6. Can You Substantiate The Odometer Reading?

“Odometer fraud is rampant,” says Lemberg. “Most people think that electronic odometers make it more difficult to change the reading, but the opposite is the case. The dealer should be able to justify the odometer reading through the vehicle’s repair history, present mechanical condition and title history.”

7. Is There An Unexpired Manufacturer’s Warranty On This Vehicle?

If the car you’re purchasing is fairly new, it may still be covered under the original warranty. “If so,” says Lemberg, “Make sure to get the warranty documents from the dealer. Before you buy, give the manufacturer a call, tell them the vehicle’s VIN, and verify that the original warranty still applies.”

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Life Inc.: Celebrate Labor Day at the car dealer

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AppId is over the quota
AP

If the beach really isn’t your thing and you prefer to spend the last weekend of summer car shopping, Consumer Reports has put together an analysis of the best deals for car buyers in five major cities across the country, including Atlanta, Chicago, Dallas, New York and Los Angeles.

The end of summer marks the transition between the 2011 and 2012 model year for many automakers. Historically, that means you can find deep discounts on cars for the outgoing model year as manufacturers and dealerships make way for the brand new models rolling off production lines.

Consumer Reports says it’s seeing the trend happen again this summer, and buying a leftover 2011 model rather than a 2012 model can save you serious money upfront.

In Chicago, for example, you can save 20 percent off the manufacturer's suggested retail price (MSRP) for a 2011 Nissan Altima 2.5 HEV eCVT, according to Consumer Reports data (the offer expires on Sept. 30). And in Dallas you can find a 2012 Ford Mustang GT Premium Coupe with a 15 percent discount on its MSRP until Oct. 30.

For more information on the car discounts, click here.

View the original article here

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Life Inc.: Celebrate Labor Day at the car dealer

AppId is over the quota
AppId is over the quota
AP

If the beach really isn’t your thing and you prefer to spend the last weekend of summer car shopping, Consumer Reports has put together an analysis of the best deals for car buyers in five major cities across the country, including Atlanta, Chicago, Dallas, New York and Los Angeles.

The end of summer marks the transition between the 2011 and 2012 model year for many automakers. Historically, that means you can find deep discounts on cars for the outgoing model year as manufacturers and dealerships make way for the brand new models rolling off production lines.

Consumer Reports says it’s seeing the trend happen again this summer, and buying a leftover 2011 model rather than a 2012 model can save you serious money upfront.

In Chicago, for example, you can save 20 percent off the manufacturer's suggested retail price (MSRP) for a 2011 Nissan Altima 2.5 HEV eCVT, according to Consumer Reports data (the offer expires on Sept. 30). And in Dallas you can find a 2012 Ford Mustang GT Premium Coupe with a 15 percent discount on its MSRP until Oct. 30.

For more information on the car discounts, click here.

View the original article here

Peliculas Online

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