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5 Auto Industry Trends Influencing Auto Dealer Check Services

Posted by Andrew Donahey | Fri, Jan 06, 2012 @ 10:07 AM

5 Auto Industry Trends Influencing Auto Dealer Need for Check Services PlanTruecar.com recently released auto industry sales data that even the most cynical of financial prognosticators would say is encouraging.

Between Truecar's Sales and Incentive and Transaction Pricing Forecasts, we've identified 5 Auto Industry Trends sure to raise dealership profits, and increase the need to have a sound Check Services Plan in place before the 2012 gold rush:

1. New car sales in 2011 were projected to reach 12.8 million units - an 8.1% increase over 2010. Was your check services plan in place and was your dealership a beneficiary of this near 10% increase?

2. New car sales in 2012 are projected to reach 13.8 million units - an astounding increase of one million units over 2011. Is your check services plan in place, and are you taking advantage of cutting-edge check products and services, such as Remote Deposit Capture and Future Deposit?

3. All 7 major auto manufacturers experienced an increase in market share from 2010 to 2011, and are likely to do so in 2012. Individual purchasers have prejudices, but when the entire market sees an increase, why hinder your profit margin by limiting how you accept payment forms?

4. 6 of 7 major auto manufacturers saw a decrease in incentive spending from 2010 to 2011. Incentive spending, rebates to customers and cash to dealers, is the secret sauce that greases the new-car marketplace engine. A decrease in incentive spending implies an increase in out of pocket spend by customers. Higher out of pocket spend by customers means they need more flexibility in payment forms. How is your dealership helping and benefiting from this equation?

5. All 7 major auto manufacturers saw an increase in the average per unit transaction price. Simply put, consumers are buying more and spending more when they buy. Higher spend can equate to higher risk on everyone's part, so payment flexibility and check transaction security for the dealer are paramount.

Don't have a check services plan in place? Aren't happy with your existing check services vendor? Maybe you want to add Premium Services to your existing plan? Next step . . . fill out this Proposal Request for prompt attention by one of our auto industry-check services veterans.

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Topics: Auto Dealerships

Written by Andrew Donahey

Marketing Director Andrew Donahey leads a dedicated group of digital marketing specialists that generates relevant content for the financial services sector. He also collects vintage “anything” and has a Golden Retriever kennel.