GWC Warranty has released the fifth video in the award-winning Behind The Wheel dealer story series.
The latest release features Safeen Motors, an independent dealership in Garland, Texas, owned and operated by two former Iraqi refugees. The story of Safeen Motors is an inspiring tale of the American dream as told by two motivated business owners who use their memories of time spent in refugee camps and their appreciation for their opportunities in America as motivation to never take any customer for granted.
Some bad numbers in February created a mild panic about wholesale values, but result since then show the major drop might have been a fluke.
However, the downward trend remains unstoppable as off-lease volumes pour into the lanes.
The Manheim Used Vehicle Value Index came in essentially flat in March, but chief economist Tom Webb said prices rose in the first 15 days of April.
Other measures that showed that big fall off in February improved in March.
The NADA Used Vehicle’s measure of values dropped 1.4 percent in February, a month prices usually improve.
However, the NADA Index rose 1.6 percent in March.
David von Paris, senior automotive analyst for J.D. Power Valuation Services said that “wasn’t quite as big as originally anticipated.” However, “it was directionally right in line with the period’s 2.3 percent average over the previous three years.”
Tax refunds drove these swings.
Paris said the number of tax refunds issued improved significantly in March. However per the IRS, the total number issued through March 24 was still 3.4 percent lower than during the same period in 2016. While the total number of refunds was still down for the year, the amount issued improved by 7.6 percentage points compared to what was reported through February 24.
Anil Goyal, senior vice president at Black Book, said the delay in refunds was made worse because many creditors were tightening at the same time.
Tom Kontos, chief economist for KAR Auction Services Inc., also saw prices in March.
According to ADESA Analytical Services’ monthly analysis of Wholesale Used Vehicle Prices by Vehicle Model Class, wholesale used vehicle prices in March averaged $10,904, up 2 percent compared to February and up 1 percent relative to March 2016. All but one model class segment (compact pickups) showed month-over-month increases.
However, Kontos said the downward pressure remains too strong to keep prices from declining.
“It’s best to brace for more softening,” he said.
Still, the industry has held up fairly well, Webb said.
“Although used vehicle values have declined in five of the last six months, it has not been the collapse that many analysts have warned of for more than a year due to increasing wholesale supplies,” he said.
The Michigan Secretary of State has suspended the license of a used-vehicle dealer after the dealer allegedly did not provide service contract protection that was purchased by customers.
As a result of an investigation, department staff discovered that Northern Motors, LLC in Clare failed to forward funds provided by consumers for the purchase of extended service warranties. The dealership then failed to take the necessary steps to activate the warranties, leaving the customers without warranty protection in the event of a mechanical breakdown.
A hearing will be scheduled at which Northern Motors will have the opportunity to contest the suspension. Additional administrative actions are also possible.
CounselorLibrary.com LLC, announced the publication of its latest book, Tom Hudson’s “Carlaw IV: The Federal Government’s War on Car Dealers.”
Tracing actions over the last five years by the Consumer Financial Protection Bureau and the Federal Trade Commission, the book chronicles the unprecedented federal full court press on dealers and their sales, financing and leasing activities.
The book addresses the government’s war on several fronts – advertising, discrimination, disclosure requirements, and many of the other everyday compliance issues dealers face.
New Hampshire’s attorney general settled a consumer protection enforcement action against a used-car dealer following multiple complaints that the dealer sold unsafe and uninspected motor vehicles.
The suit was against Platinum Auto Brokers, Inc., formerly located at 535 Amherst St., Nashua, now doing business as Derry Auto Brokers located at 4 Peabody Road Annex, Derry.
It claimed that Platinum Auto Brokers sold unsafe and uninspected motor vehicles without providing the buyers with a Notice of Sale of Unsafe Motor Vehicle or advising buyers of their right to have the car inspected with the defects noted on the form as required by RSA 358-F.
In addition, the dealer failed to remove old inspection stickers prior to the sale and failed to inform the customers that the car they bought was unsafe for operation on the roads of New Hampshire. The dealer also failed to provide buyers with the federally mandated Buyer’s Guide.
Platinum Auto Brokers agreed to provide any buyer of an uninspected motor vehicle with a copy of the Notice of Sale of Unsafe Motor Vehicle form, signed by both the buyer and salesperson, and a federally mandated Buyer’s Guide which contains any warranty terms of the sale. Old inspection stickers must be removed prior to sale.
As part of the settlement with the attorney general, Platinum Auto has refunded approximately $12,000 to consumers who bought used cars from them that were sold in violation of the Consumer Protection Act. Platinum Auto Brokers was ordered to pay a fine of $5,000 with all but $1,000 of the fine suspended for five years conditioned on the company complying with all terms of the settlement agreement.
EFG Companies announced the judging panel in the 2016 F&I Innovator of the Year competition.
The judges will select a winning F&I product idea from one of six teams currently competing in the F&I Innovator of the Year competition, which will conclude Nov. 11. The winning team and product will be announced on Dec. 8 at Northwood University, Midland, Mich.
The judges are:
Alvin Heggs, dealer principal, Superstition Springs Chrysler Jeep Dodge Ram;
Kurt Hornung, vice president of F&I operations, AutoNation Inc.;
John Kane, co-founder, Empire Dealer Services;
Tiger Lester, regional finance and insurance director, Group 1 Automotive;
Anthony Patterson, vice president of operations, Patterson Auto Group;
Claudia Sands, director of financial services, Penske Automotive Group;
Fernando Somoza, executive manager, Central Houston Cadillac; and
John Stephens, senior vice president of dealer services, EFG Companies.
ADESA announced that Trent Strauss has been promoted to director of dealer relations for ADESA, effective immediately.
Strauss will report to Steve Dudash, vice president of dealer services.
In his new role, Strauss will lead the local auction dealer relations teams throughout the U.S. and oversee deployment of the national sales and dealer relations strategy.
Strauss has more than 15 years of inbound and retail sales experience. Since joining ADESA in 2010, he has served as district inside sales manager in Colorado Springs, where he was responsible for telesales staff at up to 13 locations.
Prior to joining ADESA, Strauss established a new customer contact center for Knowledge Learning Corp. as customer relationship supervisor.
Strauss holds a bachelor’s degree from the University of Colorado - Colorado Springs.
Auto/Mate Dealership Systems has integrated its dealership management system with myCarfax Service Shop tools to help their dealer customers increase the success of their fixed operations.
This enhancement makes it easier for dealers using Auto/Mate software to join the myCarfax Service Shop program and take advantage of the program’s benefits. Auto/Mate subscribers that are also myCarfax Service Shops have access to the newly integrated tools, which include Carfax Service History Check.
Carfax Service History Check shows a car’s reported maintenance history.
In addition, dealers now can enroll customers in myCarfax.com with one click from the Auto/Mate DMS.
The National Automobile Dealers Association announced that it has hired Abram Olmstead, a veteran digital strategist, as the association’s digital media director.
In this role, Olmstead will oversee NADA’s communications efforts across all digital platforms, and lead the development of the association’s strategy for using online platforms to communicate with and market to both internal and external audiences. Olmstead will report to NADA’s senior director of media and public relations, Jared Allen, who joined NADA’s public affairs team in February 2015.
Olmstead comes to NADA from the U.S. Chamber of Commerce, where he was the senior manager of digital strategic communications. Olmstead lead the chamber’s social media and digital marketing efforts, managed the day-to-day messaging, crafted and implemented long-term strategies, and expanded the reach and sophistication of the chamber’s digital media presence.
Olmstead previously interned at the White House’s National Economic Council, as well as the U.S. Department of Labor’s Bureau of International Labor Affairs.
Autotrader announced its Top Picks for Certified Pre-Owned Deals for September.
In September, Acura is offering a new car financing rate for used vehicles: 0.9 percent interest for up to 36 months on certified pre-owned ILX, TL, and TLX models for qualified buyers.
Through the end of the month, qualified buyers interested in a certified pre-owned Audi can get 1.9 percent interest for up to 60 months on 2013–15 Audi models. Cadillac is offering qualified shoppers 0 percent financing for up to 60 months and 12 months of OnStar service at no charge.
For deal-hunters looking for a midsize or compact SUV crossover this month, GMC is offering 1.9 percent interest for up to 60 months for qualified buyers on its certified pre-owned Acadia and Terrain models. That's a great deal for a used SUV - especially for one that includes GMC's lengthy, manufacturer-backed CPO warranty.
Hyundai's certified pre-owned warranty is already among the best in the business, and this month it gets even better: During September, qualified customers get 2.59 percent interest for up to 60 months on all CPO models.
Throughout September, Kia's certified pre-owned warranty includes a great deal for those interested in the brand's popular Optima midsize sedan and Sorento SUV: 0.9 percent interest for up to 36 months. Though the term might be shorter than what some drivers prefer, it's still rare to see such a low rate for a used car, especially one with a long warranty.
Qualified drivers can get 1.49 percent interest for up to 36 months when they finance a certified pre-owned Mazda in September. Add to that the excellent powertrain coverage included in Mazda's CPO warranty, and you've got a remarkably good deal.
In addition to its 7-year or 100,000-mile powertrain protection, Subaru's certified pre-owned program includes no deductible for repairs. That's impressive in and of itself, but in September it gets even better: qualified buyers get 0.99 percent interest for up to 36 months.
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