Automotive News - May 26, 2008 - (Page 9)

ADVERTISEMENT Remarketing Report Q&A WITH TOM WEBB Q. How has the spring market been for used vehicles? A. As always, we saw a nice increase in retail volumes and wholesale values, but the magnitude of these seasonal gains was less than in previous years. The less favorable retail ﬁnancing environment was to blame. As lenders reduced permissible loan-to-value ratios, dealers sacriﬁced some gross to get deals done. And, some customers, ﬁnding it increasingly difﬁcult to trade up, simply didn’t trade at all. On the positive side, the tax refund season once again set records. Dollar refunds were up 5.5 percent as of late April, an increase of nearly $11 billion from their year-ago level. That provided some offset to the downdraft caused by the signiﬁcantly weaker economy. Dear Automotive News Readers, We hear a lot about“conﬁdence” in the automotive industry, especially the relationship between consumer conﬁdence and retail sales activity. As chief operating ofﬁcer for Manheim’s Online Solutions, I’ve been keeping my ears and eyes on a different measure of conﬁdence – the conﬁdence dealers have in buying vehicles online. The good news is that the conﬁdence many dealers have in doing business online is skyrocketing, which makes online wholesale channels such as OVE.com even more attractive to national sellers. These consignors, who have long seen the beneﬁts in terms of quicker inventory turn and reduced costs, now can take comfort in the fact that dealers are ready, willing and able to ﬁll their inventory via online sales channels. On this page, you’ll read about best practices any consignor should look for when selling vehicles online. You’ll also see some statistics on the growth of Manheim’s online channels. The world is changing so quickly in so many different parts of our lives, and our industry is no different. The bottom line is that whereas a few years ago there were more questions than answers about the impact of online remarketing, today there’s no doubt that people – your retail customers, your competitors, your wholesale customers – just “get it,” plain and simple. I can think of no better example than the dramatic rise in attendance at The Wholesale Institute (TWI), a nationwide series of online training sessions for dealers, which has seen a nearly 300 percent increase in attendance over the last seven months. In today’s economy, when dealers are looking for the most cost-effective ways to ﬁnd the vehicles they need, online is “where it’s at.” And I say that with conﬁdence. Sincerely, Sue Boehlke Chief Operating Ofﬁcer Manheim Online Solutions Q. Has the changing retail landscape changed the vehicle acquisition strategies of dealers? Tom Webb, Manheim Chief Economist A. The retail market has been more challenging, so inventory acquisition strategies need to be more than just good – they need to be great – for the dealer to achieve proﬁtability goals. Changing times have shifted the proper inventory mix for many dealerships. For example, the altered retail ﬁnancing environment has often meant that the dealer’s existing customer base now needs a wider selection of vehicles in the lower price points. Dealers need to look beyond just the sourcing options that they have traditionally used. And, at a time when future sales levels are increasingly difﬁcult to predict, dealers have found it proﬁtable to place a greater reliance on the virtual inventory aspects that online wholesale channels can provide. GROWTH OF ONLINE CHANNELS It’s no secret that many wholesale buyers and sellers have developed proﬁtable methods for doing business online. As technologies improve and an increasing number of dealers buy and sell at least part of their inventories online, it is more important than ever that dealers choose the most effective online remarketing tools. Here are some characteristics dealers should look for when choosing an online marketplace: Buyers large selection of inventory, to ensure the right vehicle is there when you need it. Customized search options to help you ﬁnd the inventory you need faster. Tools for comparing price to help you make more educated buying decisions. national buyback policy to increase your buying conﬁdence. dealer training program to teach you how to use online tools more effectively. backed by a trusted provider and has a working relationship with physical auctions. Personal customer service with a local contact if you have a problem. Sellers Access to a wide audience, to gain broader exposure and increase the number of bids on your vehicles. end-to-end solution, to maximize your opportunity to reach buyers at every stage of the remarketing cycle. backed by a trusted provider and has a working relationship with physical auctions. Personal customer service with a designated contact if you have a problem. A dealer receives instruction on doing business online at The Wholesale Institute session. ONLINE EDUCATION AND AWARENESS Dealers have told us that the only thing holding them back from doing business online is not being comfortable using the latest technologies. This is where The Wholesale Institute (TWI) can help by offering free workshops that teach dealers step-by-step procedures for buying and selling inventory online. TWI helps eliminate dealers’ fears and encourages them to develop best practices for managing used vehicle inventory. Because independent dealers understand that managing inventory correctly is the key to success, TWI explores ways to help dealers manage inventory. Meanwhile, franchised dealers realize that the used vehicle department is often the most proﬁtable department at a dealership. TWI teaches franchised dealers how to utilize available online resources to maximize their proﬁts. As part of each workshop, dealers learn how to use Manheim online tools such as OVE.com and Manheim.com to increase their proﬁtability. For more information, or to register, visit www.thewholesaleinstitute.com. Did you know? The answer is “yes”; for details on the policy, visit www.oveoffers.com. Upcoming TWI sessions CHICAGO – JUNE 2 HOUSTON – JUNE 13 SAN FRANCISCO – JUNE 17 FREDERICKSBURG, VA. – JUNE 24 http://OVE.com http://www.thewholesaleinstitute.com http://OVE.com http://Manheim.com http://www.thewholesaleinstitute.com http://www.oveoffers.com

Table of Contents Feed for the Digital Edition of Automotive News - May 26, 2008

Automotive News - May 26, 2008 Bad times? Not for CEO paychecks GM seeks Volt tax break to avoid $40k sticker Ford's big cuts aim for a Honda-sized lineup Automotive News gets new marketing communications director Toyota pushes N.A. suppliers to match offshore prices VW predicts 5% U.S. sales gain Toyota plans 3 plants for hybrid batteries GM's American Axle strike tab: $2.82 billion Lawsuit in Florida targets congressman's dealership Orbiting the blogosphere Kia to build small cars in U.S. plant VW Mexico exec will run North American purchasing Fiat mulls 500 minicar for U.S. GM scraps big rwd sedans for Chevrolet and Buick Hyundai spends like never before to launch Genesis luxury sedan Surprise: Suzuki slides as fuel prices rise GM paid Walter Chrysler a whopping $600,000 a year Chrysler sends mystery shoppers to dealerships Toyota owes royalties on some hybrids GM, American Axle to resume output Ford predicts bigger demand for smaller engines in Escape This is Volvo? Ads sell chic, not just safety An overnight success in 50 years Obama's comments were out of line Japan does it; why shouldn't we? 25% is high, but Chrysler is wise to revisit SCORE Safety efforts must focus on the driver Blame the dealer for poor service Don't judge Ford quality by just one car Ford quality is best in many years Mitsubishi considers piggybacking with Caterpillar suppliers to cut costs Nissan to make lithium ion batteries 'Boss Ket,' Connery inspire Tim Jackson Germany leads rise in Europe sales Court: Buyers must act in good faith to win lemon law damages Nissan wants suppliers to reduce utility bills Bajaj: From scooters to autos The next $2,500 car? Infiniti will look different, add engine power in Europe Lamborghini boss wants to keep the big engines Lamborghini ups ante in 'entry' supercars Continental exec: We're done selling VDO assets Honda plans Fit hybrid Outgoing Visteon CEO to receive $2.5 million Audi production chief: Cooperation with Porsche will grow Picture this RV shipments fall in March M-B will buy Chrysler studio Supplier personnel VW expects to reap big share of U.S. diesel market Valeo CEO Morin: Pass rising costs to consumers Suppliers to the 2008 Nissan Altima Dealers Auction workshops demystify Web buying April used-vehicle prices: Light trucks fall and cars rise Volvo certified plan offers free satellite radio Mulally: Full speed toward smaller Toyota plans credit card Sanfilippo switches agencies International idles plant Honda Pilot starts at $28,230 Plastech plans assets auction What counts GM's 2-pronged strategy for Calif. rules: If you can't beat 'em . . . meet 'em New wheels for the cop shop The cost of luxury? For Hyundai, it would have been $2.5 billion New tools allow early design input from consumers Lexus in the sky with carbon: How ex-Beatle's PR effort tanked Buy an '08 . . . get a .44 $4 gasoline gives new cachet to aging econo-beaters Time tips its hat to Tata Car marketers: Magazines must widen ad reach Automakers seek 'one-to-one' approach to magazine ads Auto ads go to the movies Here's the next big thing: Ads tailored to you GMC courts women with Acadia

Automotive News - May 26, 2008

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