Car Dealer Cautioned not to pay too much

Kelly Blue Book is cautioning dealers during the months ahead to watch out and make sure they don’t “overpay” for fuel-efficient vehicles running through the auction lanes. Though high fuel prices have made these compact and subcompact gas sippers a hot seller and an attractive option for many consumers, contends “with so many new and redesigned subcompact and compact offerings available today, consumers will have little reason to pay close to sticker for a one- or two-year-old used vehicle.” And as wholesale values rise, the site’s analysts noted dealers will find it hard to make a profit when passing along these expensive used vehicles to shoppers. In fact, rising used-car values may have played a role in supporting the increase in new-vehicle sales in recent months, especially sales of fuel-efficient vehicles, officials asserted. We are suggesting that dealers avoid overstocking fuel-efficient units rather than shy away altogether. It will still be important to at least have a minimally sufficient inventory of subcompacts, compacts and hybrids available for sale, but dealers should make sure to try and maintain a less than 30 days supply,” Alec Gutierrez, senior market analyst of automotive insights for Kelley Blue Book, told Auto Remarketing on Monday. “It appears as though fuel prices may have peaked, so we may see values of fuel-efficient vehicles begin to lose momentum in the weeks ahead. Dealers should focus on compact crossovers and mid-size vehicles as suitable alternatives. Values have remained relatively stable in each of these segments and we believe that these vehicles should remain in high demand, and thus, a safe bet for dealers looking for inventory,” he continued. And as wholesale prices peak, leading to higher used-car prices; and high fuel prices spur recent interest in gas sippers, asserts that OEMs will be rolling out even more fuel-efficient units in the months to come. “There shou ar. In addition, inventory is relatively light for a handful of existing fuel-efficient offerings such as the Honda Fit, Ford Focus and Mazda CX-5, so prices on these models will likely remain closer to MSRP than Invoice. As inventory increases, we would expect to see shoppers continue to opt for new vehicles rather than a 1 to 2 year old used unit,” Gutierrez noted, stressing that even more new fuel-efficient rides will be hitting the lots in the new future. analysts even went so far as to say “many one- and two-year-old used fuel-efficient vehicles are so expensive today that a comparable new vehicle may only be marginally more expensive.” Gutierrez added: “Consumers have more options than ever before when it comes to fuel-efficient offerings, and many of these vehicles can be leased for less than $200 per month and a small down payment. “Dealers must keep this in mind as they continue to pay more and more for used compacts at auction. As values rise, dealers will find it difficult to pass along the premium paid at auction to consumers,” ld be at least a handful of additional fuel-efficient vehicles coming to market in the months ahead. The Chevrolet Spark, redesigned Ford Fusion, and Dodge Dart are just a few of the fuel-efficient offerings that should be arriving later this year.see the full article at

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Automotive Reputation Management now

Automotive reputation management: Why does gross go up when Car dealers learn to manage their reputation? Maybe it’s because consumers can see their positive press! Dealers are normally the bad guys right?

Dealers do not worry about reputation as much as they should. They have always bought it. Sponsoring charity events and making donations. However, in today’s world, daily reputation management is THE single most important function a dealer can do.

Remember when C.S.I. was tied to trunk money? It did not take long for dealers to start buying surveys. A tank of gas, floor mats or the first service were gifts we were willing to give away to gain that survey. We would even mail it for them!

Manufacturers quickly adjusted and altered the program and found ways to monitor the email surveys. Today you have to earn it or lose money.

Evolution will see a move to the online arena. Review sites are continually working on monitoring your reviews. Weeding out the planted internal reviews and forcing us to become better at customer relations.

Let’s face it; Reputation Management is a new position, much like the Internet marketing position created over the last five years. The Challenge – are you an early or late adopter? Early adopters all have a hundred plus reviews on most of the review sites out there. The late adopters have 2 stars and want their friends to write something nice about them. Let’s go….create the position!

To be frank, most reviews are accurate when you look at them from the consumers’ perspective, and most rate a business a 1 or a 4.5. Where do you want to be? I have been on the review band wagon with auto dealers for over 3 years now working on identifying problem processes and trying to correct the action in the dealership. You CAN gain ground and turn this around in a few months.

If you need help contact us. We have programs, tools, and call center programs that can get you engaged and in front of your competition.