Michigan’s Secretary of State summarily suspended the licenses of three used-vehicle dealers for failure to follow proper procedures.
Acting on complaints from financial institutions that alleged Car 1 LLC d/b/a Charger Auto Sales, in Waterford, had failed to apply for titles, which created numerous problems for the vehicle buyers including not easily being able to prove ownership, Secretary of State investigators attempted to conduct an inspection of records and inventory at the dealership on June 30.
During the inspection, the dealer failed to produce records as required by the Michigan Vehicle Code.
SOS investigators attempted general compliance inspections at Trendy Auto Sales in Pontiac on four occasions. In each instance, the dealership did not make records available or the facility was closed during posted business hours.
Although the dealer license was renewed, the location is now vacant.
Secretary of State investigators attempted inspections of records and inventory for Elite Motor Group in Waterford on two occasions. The dealership was closed both times and did not appear to be operational.
Black Book recently released a white paper titled: “Trade Appraisal: How to narrow the gap to close more deals.”
The white paper sheds light on the disconnect between consumers and many dealers. It also explores what’s at stake when a consumer introduces a trade-in as a part of the transaction.
In addition, the paper offers new insight into the role advanced analytics and data now play in valuing a trade, with the ability to narrow the gap between the vehicle’s actual value and the consumer’s expectations for the trade.
Results from a recent Black Book survey show that consumers feel a vehicle trade-in quote that’s far from expectations is the second-most likely scenario to kill a possible deal.
Many consumers cited specific frustrations with the valuations they often receive from a dealer. More than a third of those polled said their researched quote was $1,001 - $1,500 apart from the dealer’s offer; and another 27 percent said their quote was more than $1,500 apart. Nearly half said they need the dealer’s offer to be between $501 and $1,000 of their research quote for it to be acceptable.
The estimated average transaction price for light vehicles was $34,721 in July, according to Kelley Blue Book.
New-car prices have decreased slightly (down 0.3 percent) from June, but increased by $573 (up 1.7 percent) from July 2016.
Fiat Chrysler’s average transaction prices rose nearly 4 percent year-over-year in July, with the Chrysler brand garnering an impressive 8 percent spike on a lower mix of the discontinued 200 sedan.
General Motors’ average transaction prices were down 2 percent in July, However, Cadillac emerged as the best performing brand, increasing by 5 percent.
Used cars outperformed new cars on a same-store basis for Lithia Motors Inc.
Lithia reports that used vehicle same-store retail sales increased in the range of 3.8 percent to 4.1 percent at the chain’s locations in the second quarter.
Used vehicle same-store unit sales increased 4.6 percent.
New vehicle same-store sales only increased in the range of 0.5 percent to 0.8 percent while new vehicle same-store unit sales decreased 0.4 percent.