IARA Offers Webinar

June 02, 2020

 

The International Automotive Remarketers Alliance will hold a free webinar on June 5 called “Adjusting to the New Normal,” the third in a series of webinars from IARA.

The webinar, scheduled for 12 p.m. to 1 p.m. EDT, will feature consignors from OEM’s, banks, commercial fleets, remarketing companies and finance companies discuss the current remarketing landscape. They will discuss how to find ways to maximize return on your inventories despite market changes and discover how your remarketing strategy compares, competes, or enhances current market dynamics.

The webinar will also address the effect on consignors in the remarketing space and how buyers are sourcing cars.

For information, go to the IARA’s website www.iara.biz.

Pennsylvania Attorney General Josh Shapiro announced a $50,892.29 settlement that allows restitution for consumer victims of a Mechanicsburg car dealership, New Kingstown Auto, LLC, the owner of the dealership, Harry D. Laughman, and an employee, Dana L. (Blosser) San.

The settlement, in the form of a petition requiring court approval, comes as a result of a lawsuit filed by the Office of Attorney General’s Bureau of Consumer protection alleging that the defendants: advertised used motor vehicles for sale without disclosing the business name and address of the advertiser or the word “dealer”; sold a used motorcycle as having 69,000 miles, when in fact the motorcycle had 153,000 miles; sold motor vehicles without a valid dealer or salesperson license; failed to forward to Penn DOT money and forms submitted by a consumer; engaged in lease transactions with consumers that did not include required disclosures and were not compliant with applicable laws; accepted installment payments from consumers on vehicles without holding the required installment seller license and provided a consumer an installment sale contract that did not comply with requirements.

“Unscrupulous business dealers can’t dodge our Bureau of Consumer Protection,” said Shapiro. “I’m grateful for their hard work to put a stop to the defendants’ shady practices and deliver results for the people of Pennsylvania.”

After first postponing the 2020 show dates, organizers of the New York International Auto Show have decided the next show will take place April 2-11, 2021, with press days on March 31 & April 1. 

The Javits Convention Cente is being used as a  field hospital for COVID-19 cases.
The Javits Convention Center is one of NYC's largest field hospitals for COVID-19 cases

The Jacob K. Javits Convention Center, originally scheduled to host the event, continues to be closed for all expo business due to its role as a field hospital for COVID-19 cases.

The show, originally scheduled for last month, was  initially postponed to late summer, but organizers pulled the plug for 2020.

“Since the beginning of this pandemic, we have worked closely with the Governor’s office and with Javits officials to protect our attendees,”

The first New York Auto Show, 1907 Madison Square Garden
The first New York Auto Show, 1907 Madison Square Garden

said Mark Schienberg, president of the Greater New York Automobile Dealers Association, the organization that owns and operates the New York Auto Show. “We also understand the immense planning needed for the automakers and their exhibit partners to construct a show of this magnitude. Because of the uncertainty caused by the virus, we feel it would not be prudent to continue with the 2020 show and instead are preparing for an even greater 2021.”

According to a forecast released by Cox Automotive, the annual vehicle sales pace is expected to finish near 11.4 million, up from last month’s historically low 8.6 million pace but still far below May 2019’s robust 17.4 million level, after incorporating seasonal adjustments.

New light-vehicle sales volume in May is expected to finish near 1,050,000 units, down 33 percent compared to last May but up 49 percent from last month.

According to Charlie Chesbrough, senior economist at Cox Automotive: “Recent trends suggest daily sales are showing significant gains over March and April’s collapse. Data reveals the market hit a bottom around the first of April, and since then has been making a slow but steady recovery. The opening of dealerships, and whole states, over the last few weeks is greatly contributing to the upward sales trend. The key question for the market going forward is whether these modest but steady sales gains will continue into June or does the sales recovery stagnate.”

As the industry drives into the summer selling season, a full sales recovery faces multiple headwinds. Cox reports the crisis is unique because the industry is facing a negative demand shock and a negative supply shock simultaneously. Vehicle factories have been mostly closed since late March and are only beginning to restart. That means new-vehicle inventory is at the lowest volume in more than a year. Low inventory means less choice for consumers, particularly with popular vehicles like pickup trucks and SUVs, according to Cox.

Although most small business owners are eager to reopen once their cities and states fully lift restrictions, some entrepreneurs worry about the lingering effects of the pandemic, according to LendingTree’s latest survey of small business owners.

Just 11 percent of respondents said they have no anxiety about reopening. Nearly half of small business owners worry they cannot afford to resume normal operations following mandated closures, LendingTree reported. Approximately 46 percent of small business owners cite funding as the primary obstacle to reopening, and that once open, increased health and safety measures could further stifle sales.

Independent dealers are open across the country
Independent dealers are open across the U.S and have implemented Social Distancing protocols

The biggest concern for 39 percent of small business owners is that they will not generate enough sales to make opening worthwhile. And 30 percent are nervous they would have to shut down again if there is another spike in coronavirus infections. A smaller group is worried about complying with ongoing social distancing and health safety guidelines, as 8 percent said that was their main concern, while 5 percent are most troubled about employees not wanting to return to work.

On the bright side, 52 percent of survey respondents expect all of their employees to return to work when the business reopens. Nearly half — 48 percent — plan to bring back the same number of people at the same number of hours. And only 23 percent of business owners expect to employ fewer people for fewer hours when they reopen.

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