Are we turning a corner? If credit loosens up, will the demand be there? Where is the unemployment rate going? These are all questions we are eagerly anticipating the answer to. While looking for the bright spots, realize that surviving is winning. By keeping up your service levels, being innovative in your F&I and service departments, and being fiscally responsible, you have already won. It's no secret that many dealers and agencies could be shuttered in 2009. When you survive this crisis, you will be a winner with more opportunities and market share than before.
Pent-Up Demand Fuels Used Market
According to Edmunds.com, 15 percent of new vehicles sales could potentially be shifted to used vehicle sales this year. Edmunds.com calculated that roughly 511,000 used-vehicle sales in the last three months would normally have been new sales if the economy was healthy. That total could result in a seasonally adjusted annual rate of more than 2 million units.
Increasing U.S. Median Vehicle Age Means More Service Department Opportunities
The median age of passenger cars in operation increased to 9.4 years in 2008, breaking the previous two-year record high of 9.2 years, according to figures released March 3 by R. L. Polk & Co. in its annual vehicle population report.
The industry has been eagerly watching to see if TALF will be the solution to the credit woes that have plagued automobile sales for months. Although we’ve all heard of TARP (Troubled Asset Relief Program), the government program to purchase assets and equity from financial institutions in order to strengthen the financial sector, the automotive industry has not benefited.
Guide to Handling Objections: Theft Protection Programs
According to a 2008 survey of law enforcement professionals conducted by LoJack Corporation and the National Insurance Crime Bureau, nearly 70 percent of law enforcement professionals who responded indicated that today's challenging economy appears to be an increasing dynamic contributing to vehicle theft. This month's Guide to Handling Objections features Theft Protection Programs, which help consumers to prevent the theft of their vehicles and aid in the recovery in the event a theft does occur.
According to Edmunds.com, 15 percent of new vehicles sales could potentially be shifted to used vehicle sales this year. Edmunds.com calculated that roughly 511,000 used-vehicle sales in the last three months would normally have been new sales if the economy was healthy. That total could result in a seasonally adjusted annual rate of more than 2 million units.
