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Wednesday, October 7, 2009
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Issue 42
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VOLUME 3
ISSUE 42
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News and Industry Trends
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Used car dealers see 'clunkers' pinch
Michael Darrow, an independent used-car dealer, is still feeling pain from "Cash for Clunkers," The Wall Street Journal reports. During the summer, he was shut out of the popular initiative, which allowed only new-car franchises to participate. Now, the inventory he normally buys at auction is sharply limited, a direct result of Clunkers sending close to 700,000 gas guzzlers to the junkyard. That's driven wholesale prices to new highs at a time when cost-conscious consumers, who sometimes rely on dated information from guide books, aren't paying more. Independent dealers across the country, most with no affiliation with the large auto manufacturers and outnumber franchise dealerships in most states, are struggling in Clunkers' aftermath. Some of these small businesses – which number between 40,000 and 45,000, according to the National Independent Auto Dealers Association – say they're being forced to sell vehicles for less than what they've paid at auction, a move that's cutting deep into already shaky bottom lines.Wholesale prices for pre-owned vehicles are up 19% over December 2008, when the prices first started rising, and may be up "substantially in September, says Thomas Webb, chief economist at Manheim Consulting. Official pricing for the month is scheduled to be released today. See story below.
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Manheim: Wholesale prices rise 1.8% in September
Wholesale used vehicle prices (on a mix, mileage and seasonally-adjusted basis) rose 1.8% in September, bringing the Manheim Used Vehicle Value Index to a record high of 118.5 -- a 6.9% increase from a year ago, reported Tom Webb, Manheim’s chief economist, today. Adjusted wholesale prices have now climbed for nine consecutive months.
[FULL STORY]
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Study: Most paid search results don't match consumer searches
Online marketing solutions company Dealer.com announced the results of the Sorgenfrei, LLC, comprehensive study, "Optimizing Paid Search Advertising- Used Vehicle Market in the U.S." The findings suggest that while some companies may be adept at providing a high quantity of ads, most have much room for improvement in terms of the quality of ads. The national study examined ads that displayed in search results for the top 10 used vehicles in 10 major markets to determine the leaders in effective paid search, in terms of both quantity and quality of results produced. The results included a total of 87 companies that produced 992 ads with varying degrees of relationship to the searches. The research was commissioned by Dealer.com.
[FULL STORY]
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Tight supply, demand push new, used prices higher
AutoTrader.com report
Average asking prices for new vehicles on AutoTrader.com showed signs of improvements from last September's lows, with many seeing incremental increases from the year before, according to an analysis released today. Prices for used cars also remained strong. In addition, views for luxury cars also saw gains in shopping activity. This trend was led by the BMW 3-series, which saw views on AutoTrader.com increase 51% year-over-year from September 2008.
[FULL STORY]
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Kelley Blue Book residual values approved by industry group
Kelley Blue Book announced RVI Group, which it calls "the pre-eminent name in residual value insurance," now recognizes Kelley Blue Book as its approved Residual Value Guide and will insure vehicle residual values based upon the company's residual value forecasts.
[FULL STORY]
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iCrossing extends Toyota mobile site to include CPO vehicles
Digital marketing company iCrossing today announced that mobile users will be able to search Toyota Motor Sales USA, Inc.'s Certified Used Vehicle inventory for the best deals on previously owned Toyotas. The recently-added certified used vehicle content can be accessed via Toyota Motor Sales mobile site http://m.toyota.com/.
[FULL STORY]
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Dealer Communications adds Cliff Banks to its team
Leading automotive trade publishing firm names Banks Vice-President and Editorial Director
NASHVILLE – October 6, 2009 -- Dealer Communications, the leading multi-media information source for franchised automotive dealers and managers, has named Cliff Banks as Vice-President and Editorial Director.
[FULL STORY]
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Carfax adds Mercedes-Benz to service link program
Carfax today announced that the company has added Mercedes-Benz USA (MBUSA) to the Carfax Service Link program. Vehicles serviced and maintained by participating Mercedes-Benz will be reported to Carfax and will appear on Carfax Vehicle History Reports.
[FULL STORY]
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Reynolds launches vehicle search portal for consumers
Reynolds and Reynolds announced today the nationwide roll-out of a new product for automotive dealers and the car-buying public: CarLocate.com, a car search portal designed to offer a better way for consumers to find a car they want to buy and to provide dealerships a way to market their vehicle inventory to more consumers.
[FULL STORY]
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It May Be the Internet, but It’s Still Advertising
Learn how to get ahead of your competitors by really understanding and utilizing the Internet as the most effective advertising media ever invented
More info on the Digital Dealer Conference
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Automotive Consumer Engagement Techniques for your Web Site and Social Media Platforms
Leverage online conversations to turn anonymous consumers into engaged shoppers
More on the Digital Dealer Conference
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In Dealer magazine
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Emerging reality
by Jim Ziegler
.jpg?i=101309155510) Do you feel it? It’s coming back strong. Are you ready for it? Like a runaway freight train, you can go with it…get out of the way…or be run over by it. We’re all facing a series of difficult choices and they’re coming at you fast. Here we are – so many of us have been hunkering down, laying low, storing up our acorns, and waiting for the storm to pass. Cut to the bone, running lean and mean, we’ve become masters of expense control; we’ve all seen our friends fall…there are weeds growing through the asphalt of dead empires as the retail landscape changed and then changed again. There’s been nowhere to turn, and no safe haven in a perfect storm. Take no risks, circle the wagons…for most of us the goal has simply been to survive and still be standing on the other side of the crisis.Well, excuse me! There’s a rainbow in the sky if you’ll just stick your head out and take a peek. Or, some of you will just sit it out and not participate just in case there’s another storm coming up. Let’s wait and see? I haven’t time for those who elect non-action as their course of action…whether it’s out of fear and lack of confidence. Maybe you don’t know it yet, but if you’ve got that losing attitude, you’re road kill anyway. There’s new day dawning and it’s all about attitude. Are you winning? Or are you still wimping and whining about what was and now isn’t? So what…get over it already, we’ve got business to do. Read more
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We welcome your comments and suggestions regarding our eNewsletter and its content. Please email us with any feedback you want to share. If you have a tech questions or suggestion for topics we should cover in future issues, just drop us an email and we will check it out for you. Please include your contact information, including phone number in case we need to call you and get additional information on your suggestion or comment. Email us
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Copyright © 2009 Dealer Communications Inc.. All rights reserved.
Information in this newsletter is provided by both proprietary and public sources.Dealer Communications makes no claims as to the accuracy of information provided by third party providers.
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| For information or suggestions about editorial matters, contact Linda Di Pietro, New Media Director
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