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Used car prices climb to record high in September
Used vehicle prices shot to an all-time high last month, spurred by falling inventories, according to a closely watched barometer of the second-hand car business, The Associated Press reports. For those in the market for a used car, that's not necessarily bad news, said Tom Webb, chief economist at Manheim Consulting, which produces the index of the used car market. That's because the value of trade-in vehicles are fetching record prices, he said. But those buying their first car or who aren't looking to trade in a vehicle will find themselves stuck paying the higher price, Webb said. The Manheim Used Vehicle Value Index rose 6.9% in September to a record high of 118.5. The index is adjusted for vehicle mix and seasonality. A value of 100 represents used vehicle prices in January 1995. The index reflects the wholesale, or trade-in, value of vehicles. But Webb said retail prices move "pretty much in lockstep" with wholesale values.
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Stop Chasing Shiny Objects
How to get ahead and stay ahead by changing the way you manage everything about your Internet marketing
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Selection, Hiring, Orientation, and Training
Giving new hires a S.H.O.T. to be successful in the Internet department
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Kelley: Compact-car values rising; stabilization years away
Kelley Blue Book said analysts and statisticians are beginning to see an uptick in the small car market, which had been hit severely when gas prices stabilized, in its most recent Monthly Market Report. It also takes a look forward at the car market in the wake of 'Cash for Clunkers.'
[FULL STORY]
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LaHood: U.S. automakers 'back'
U.S. Transportation Secretary Ray LaHood came away encouraged by the energy and enthusiasm he found when he visited Detroit's automakers this week, The Detroit News reports. LaHood met with executives from all three automakers, including new Chrysler Group LLC CEO Sergio Marchionne, whom he likened to the legendary Lee Iacocca, a former Chrysler chairman. "After spending a day and a half with the three American automakers, I can tell you they are back. They get it," LaHood told the Detroit Economic Club on Tuesday. "They're building cars that Americans want to drive." LaHood previously had criticized Detroit's Big Three for losing touch with consumer needs.
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Ford tops latest brand loyalty ratings from Experian Automotive
Ford Motor Co. vehicles accounted for six of the top 10 vehicles for customer brand loyalty, according to the most recent industry analyses from Experian Automotive. Ford Fusion, Ford Edge and Ford Five-Hundred owners showed the industry's highest brand loyalty, returning to buy a Ford Motor Co. vehicle 62.4 percent, 57.9 percent and 56 percent of the time, respectively, according to Experian. The Ford Freestyle (51.9 percent) was fifth, the Ford Escape (49.4 percent) was seventh, and the Ford Focus (47.57 percent) came in ninth.
[FULL STORY]
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Ford recalls 4.5 million vehicles for faulty switch
Ford Motor Co. moved to close the books on the largest recall in its history, agreeing to call back 4.5 million vehicles for a faulty switch linked to hundreds of vehicle fires, The Detroit News reports. The action follows an 18-month federal investigation. The automaker has now recalled 14.1 million vehicles in eight separate recalls over 10 years. The cruise-control deactivation switches, made by Texas Instruments and sold for about $21, were installed in 16 million Ford vehicles over a decade before the automaker stopped using them in early 2003. The switches have been linked to at least 550 vehicle fires and 1,500 complaints, and linked to several suspicious deaths. Ford told the National Highway Traffic Safety Administration it will recall all of the 14.1 million vehicles with the switches that are still on the road -- although the company said it does not believe they pose a safety issue in 3.4 million vehicles. Ford has resisted this step for years, despite pressure from safety advocates. The latest recall includes nearly 1.1 million 1995-2003 Ford Windstar vans that were the subject of a government investigation, plus 3.4 million other vehicles.
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ADESA creates new dealer services division
ADESA announced that it has created a dealer services division. Effective immediately, Tim Zierden will lead this team as vice president of dealer consignment. Zierden, who brings more than 17 years of experience in the automotive industry to this new role, will report directly to ADESA CEO and President Tom Caruso, the company said.
[FULL STORY]
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Dollar Thrifty cuts Chrysler purchases, costs
Dollar Thrifty Automotive Group Inc said on Monday it would slash its 2010 car rental purchases from Chrysler and that its average fleet costs had stabilized at levels it hoped to maintain next year, Reuters reports. Chrysler, which had made up 76 percent of Dollar Thrifty's total U.S. fleet purchases in 2008, will now constitute about 30 percent of 2010 fleet purchases, the company said. Ford Motor Co will make up 34 percent of its purchases and General Motors Co GM.UL another 20 percent, Dollar Thrifty said. The rental car company executed a three-year deal with Ford in February. Nissan Motor Co Ltd will make up 6 percent of its fleet purchases. The rest will come from Hyundai Motor Co and Kia Motors Corp of Korea, and other automakers. The car rental group had an agreement with Chrysler that required it to buy 75 percent of its fleet from the automaker. Dollar Thrifty and Chrysler reached a new deal in August after the automaker restructuring that replaced the percentage minimum with a requirement for a fixed volume of vehicle purchases per program year.
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.jpg?i=101909111058) Read the October issue of Dealer magazine before it comes out in print. Click Here
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Black Book adds weekly updated values to credit apps
Black Book, which provides vehicle pricing data, announced that its used vehicle values will be available to users of DealerTrack’s recently introduced “BookOut for Lenders” software application. The values, available as weekly or monthly updates, will be automatically integrated within the credit application system, which the comany said will help streamline the used vehicle buying, selling, and financing process.
[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
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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
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As you’re wrapping up a hopefully successful summer sales season, now is a good time to focus on the backbone of your web site: your inventory. In order for you to connect your shoppers to their next vehicles as quickly and painlessly as possible, it’s crucial to maintain your inventory by keeping it up-to-date and chock-full of information. There are three main focus areas within the inventory section of your site: visibility within search engines, vehicle images and the information you make available to consumers. 
