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Do Car Dealerships Prefer Checks Over Credit Cards?

Posted by Brandes Elitch on Wed, Dec 05, 2018 @ 11:45 AM

American consumers have an intimate relationship with their credit cards. Most don’t really understand the numbers that drive this business for the banks that issue the cards, or who pays the “freight” to keep it going, especially at car dealerships. This article will provide an overview of who pays what to whom, and how much they pay. You will be surprised.

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Tags: Auto Dealerships

Auto Subscription Services Will Change the Way People Buy Cars

Posted by Brandes Elitch on Fri, Oct 26, 2018 @ 07:45 AM

“Eighty percent of companies see a change in how their customers want to access and pay for goods and services, and 50 percent of these same companies are changing their pricing models as a result.” – The Economist

Life used to be simple, or maybe just simpler. People bought new cars every few years because car loans typically carried three-year terms. They traded in their old cars at dealerships. The manufacturers (they used to be called the “Big Three”) introduced new models every September, and crowds of people would go to the local dealer on the day they were unveiled. It was an exciting period, but cars purchased three years earlier suddenly looks dated, and people thought about trading them in on new models. This used to be called “planned obsolescence,” although that is a loaded term and somewhat misleading.

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Tags: Auto Dealerships

The Rising Cost of Auto Insurance & How Dealers Can Help

Posted by Brandes Elitch on Thu, Oct 18, 2018 @ 10:45 AM

Studies show that the average car repair bill has gone up by about 30 percent over the last three years while auto insurance has risen almost eight percent just last year. Why did this happen and will there be enough left over in consumer coffers for them to buy new cars? Auto dealers can help, but the how and why may surprise some readers.

Well, the increase in auto insurance has to do with “safety technology.” In a low speed collision, typically in a parking lot, the parts of the car most prone to damage are the front and rear bumpers, which of course are not really bumpers anymore.

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Tags: Auto Dealerships

Self-Driving Cars: How Soon, How Safe?

Posted by Joe Gargiulo on Mon, Aug 06, 2018 @ 12:54 PM

The term “shoot the moon” means to attempt the near-impossible or to attain great heights per UrbanDictionary.com. Ironically, the daring 1969 Apollo 11 lunar landing qualifies as an ideal example and according to some experts, the promise of producing autonomous cars in the immediate future is not far behind.

The top automakers from around the globe are individually committed to self-driving cars, and so is a U.S. advocacy group for the legally blind that longs for the day when its beneficiaries can attain self-determination or autonomy behind the wheel.

Despite the widespread interest, push back to self-driving cars became international news in March 2018 after they were directly involved in two fatal accidents within five days of each other.

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Tags: Auto Industry, Auto Dealerships

When is the best time to buy a car? Keep this in mind.

Posted by Brandes Elitch on Mon, Jun 04, 2018 @ 11:45 AM

Buying a new car is the second most expensive purchase for the 62 percent of Americans who own their own home. For everyone else, it is the most expensive purchase they will ever make and determining the best time to buy a car is always a difficult decision. As careful as they might be, there are some facts of life that everyone needs to know before signing on the dotted line.

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Tags: Auto Dealerships

NADA Pro Series Provides Automotive Management Training

Posted by Joe Gargiulo on Fri, May 25, 2018 @ 08:45 AM

Dealerships now have automotive management training at their disposal. The National Automobile Dealers Association’s Professional Series offers a “learn from the best and forget the rest” combination of classroom and online training at three US locations: Cerritos, Calif.; Dallas, Tex.; and Tysons, Va. The training is tailored to the needs of new and up-and-coming department managers working in sales, office, parts and service. Classes begin June 2018.

“NADA is the only organization in the country that offers a full training program to give dealership managers the tools they need to run a profitable department,” said Peter Fong, NADA senior vice president of dealership operations. “And very few, if any in the industry, offer training for office managers.”

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Tags: Auto Dealerships

Market Changes Impact the Cost of Used Cars

Posted by Brandes Elitch on Fri, Apr 06, 2018 @ 04:31 PM

Did you know that the average car on the road today in the U.S. is 11 years old? … an amazing revelation that may impact the cost of used cars this year.

I’m a “car guy.” My first car was a 1961 Buick bubbletop coupe, which I got in 1968, my senior year in college. It was considered an “old car” even then, probably just a few years away from being scrapped. I paid $400 for it. Back then, you had to replace your tires every 10,000 miles and you would replace your entire exhaust system every few years, due to the combination of leaded fuel and salt on the roads back east.

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Tags: Auto Dealerships

Solutions to Increase Parts Sales at Auto Dealerships: Pt 2

Posted by Joe Gargiulo on Thu, Apr 05, 2018 @ 11:00 AM

While the new and used-car sales departments stay focused on “getting tail lights across the curb,” the possibility of increasing parts sales at auto dealerships does not go unnoticed by 21st century franchise administrators who look to generate more revenue from every channel.

Part one of this series reviewed the ways that dealer management systems (DMS) can be used to increase parts sales with the strategic application of pricing, customer relationship managers (CRM) and key performance indicators (KPIs).

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Tags: Auto Dealerships

Solutions to Increase Parts Sales at Auto Dealerships: Pt 1

Posted by Joe Gargiulo on Thu, Mar 29, 2018 @ 11:45 AM

Increasing parts sales at auto dealerships is an ongoing challenge across the industry. Many experts have thrown their hats into the ring of public opinion on the matter, but few are thoroughly connecting the dots or offering one-stop shopping for useful information. The following discussion was established after reviewing numerous articles followed by much needed aggregation. Sources are credited where necessary.

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Tags: Auto Dealerships

Auto Industry Executives Attend Automotive News World Congress

Posted by Joe Gargiulo on Sat, Dec 30, 2017 @ 08:00 AM

The 42nd annual Automotive News World Congress takes place January 16 ­– 17, 2018 at the Detroit Marriott Renaissance Center, less than a mile from the Cobo Center, the site of the North American International Auto Show (January 13 – 28). The event features the most influential auto industry executives in the world who will share their plans for 2018 and beyond.

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Tags: Auto Dealerships

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