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Auto Dealers Rejoice Over New Car Sales - It’s Almost 2007 Again!

Posted by Tom Lombardo | Wed, Apr 30, 2014 @ 10:00 AM

Auto DealerPractically no one knew what we were in for when financial institutions collapsed in September 2008. The gravity of our situation didn't really come into focus until a few weeks later when the stock market suffered its single biggest one-week loss in history – 18% in five days. At that point the famous curse "May you live in interesting times" became our collective reality.  

Did the Sky Fall?

Within a year, the U.S. taxpayer rescued some of the biggest blue chip companies in history from bankruptcy. Two mortgage lenders were in so deep, the US government took them over outright. Bloomberg News had to sue in the Supreme Court to find out that some financial institutions received trillions in taxpayer money to prevent them from going under.

At the bottom, 54% of the stock market's value had vanished. U.S. Treasuries were downgraded for the first time in history. Job openings dropped 44% as unemployment spread despair. "Underemployment" became the new "employment."

Nothing remotely similar to this had happened since the Great Depression of the 1930s.

The Sky Did Not Fall

new car salesThat said, it finally looks like times are becoming "less interesting." There are solid, sustained signs of economic recovery. And this time around it may be built to last, since the majority of Americans have become wiser when considering taking on debt. In fact, we have reduced our outstanding debt by $1.3 trillion – not because we can't get it, but because we don't want it.

This is great news for your auto dealership because when we do take on debt, we do it carefully, strategically, and almost always for things we really need.

Like cars.

Now that the S&P 500 has been on a bull run for the last five years, Edumunds.com predicts that pent-up demand, made more urgent by the increasingly aged fleet Americans are driving, will cause auto sales to rebound to their 2007 level this year.

Big Sky, Big Checks … Guaranteed

According to the Federal Reserve, Americans tend to make large payments with checks. So be sure that when a customer is ready to buy you can accept her check with confidence. CrossCheck's automotive, remote deposit solution – with check guarantee, known as C.A.R.S., takes the risk and hassle out of handling the checks your customers want to write:

  • Check guarantee mitigates the risk of accepting checks
  • Payment flexibility with multiple check allows consumers to write 2-4 checks to be deposited over a 30 day period
  • Remote deposit capture allows you to deposit checks without leaving your office, saving time and money
  • And it applies to everything from the down payment to parts and service.

C.A.R.S. can help you secure your share of what will hopefully be the least "interesting" – and most lucrative – car buying year since the recession began!

auto dealer remote deposit capture

Topics: Auto Dealerships

Written by Tom Lombardo