Automotive News - November 10, 2008 - (Page 9) ADVERTISEMENT Remarketing Report Q&A WITH TOM WEBB Q. Despite all the bad news in the economy and with new car sales dropping rapidly, wholesale used vehicle prices rose in September. Is a bad economy good for used car sales? A. The used vehicle market is not countercyclical to the economy, but it is less cyclical. And, yes, sometimes Dear Automotive News Readers, For years, national consignor customers have taken advantage of our full line of cost-effective reconditioning services. Now, more and more franchised and independent dealers are getting in on the action. In a recent survey of our dealer customers, we learned that the average dealer spends around $400 per car on a variety of repairs – including detailing, dent removal, minor body work and mechanical – AFTER the car arrives on his lot. Faced with that kind of investment and the time it takes to train staff or hire vendors to complete those tasks, it’s no wonder that more dealers are looking to us for reconditioning solutions. They’re discovering that we can do the job quicker and more economically, while delivering high-quality results. While dealers once needed to be convinced of recon’s return on investment, this is no longer the case. Dealers are learning the value of recon as they experience it firsthand. With ROI a given, the issue today is trust. At a time when dealers everywhere are looking for investments with an edge like reconditioning, an increasing number of dealers are turning to Manheim because they know they can trust us to do the job right. Just as we stand behind every sale, in-lane or online, we stand behind the repairs made in our shops. That means one less thing to worry about, something every dealer can appreciate during these trying times. On this page, you’ll read about some of the reconditioning services Manheim performs for thousands of customers every day, all with a full satisfaction guarantee. For more information about reconditioning services, contact a reconditioning manager or dealer sales representative at any of our locations. Sincerely, technologies and products, while supporting long-term conservation. what is bad for the new vehicle market can provide support to the used vehicle market. Both of those facts were evident in recent months. Wholesale used vehicle prices inched up in September, the fourth consecutive monthly increase. Nevertheless, the strength of recent economic headwinds has buffeted even the soundest and most stable industries. And, thus, wholesale prices weakened sharply in late September and early October. Tom Webb, Manheim Consulting Chief Economist Q. What’s a dealer to do when times get tough in the used car market? A. First, recognize that these industry conditions will likely persist for some time. Adjust operations and costs to reflect your current level of demand. Cut inventory levels on the lot and maximize your use of the virtual inventory available via online auction channels. But, that said, don’t simply hunker down. Be open to new opportunities (including the reconditioning options discussed on this page) and market niches that you may have ignored in the past. Your customers’ needs are probably changing; you need to meet those new needs. INVESTMENTS WITH AN EDGE Today, dealers know that to remain competitive, they need an edge, something that sets them apart. For many, that edge is efficiency. Manheim offers a variety of reconditioning services that save time and provide value: Inspections at your Convenience Manheim’s Post Sale Inspection service evaluates vehicle condition for buyers, providing peace of mind by ensuring that those vehicles were represented accurately in a sale. Post Sale Inspections, guaranteed for up to 14 days, are consistent across all Manheim locations, covering everything from transmission, engine, brakes and accessories to paint work, odometer and a frame or unibody structural check. Detail Drives Retail $ Clean Team customized detail services provide buyers and sellers with a wide range of detailing services, from simple washing to three levels of Clean Team detailing – Value, Deluxe and Ultra. The benefits are straightforward – properly cleaned and detailed vehicles result in higher sales prices and an increased sales percentage, and they’re retail-ready when they leave the auction. Repairs That Save Time Manheim repairs and paints more vehicles each year than any other company in the remarketing industry, offering a full lineup of auto body repair services ranging from paintless dent removal (PDR) to major collision damage. The ability to offer these services to consignors and dealers means vehicles can be repaired in one auction location with less down time; dealers without body repair shops can benefit from partnering opportunities without significant investment in employee costs, equipment or space. Did you know? Mike Broe Executive Vice President, Operations *Source: Manheim Consulting study available at www.manheimconsulting.com. http://www.manheimconsulting.com
Table of Contents Feed for the Digital Edition of Automotive News - November 10, 2008 Life at 11 million: Slash, rethink The options: Bailout or disaster Can Toyota reheat the frozen Tundra? Chrysler dealers cheer halt to merger talk VW will unveil roadster at Detroit auto show BMW boosts dealers' year-end ad money Mercedes' $220 million flagship Mercedes hit hard in Northeast, once a sales stronghold Mercedes will kill CLK, add larger coupe, convertible Mitsubishi reclaims its finance business Toyota's Esmond to speak at congress Loss is more: Europe snatches bigger share of U.S. market Cash burn rates threaten GM, Ford GMAC: We're nobody's captive As losses mount, suppliers risk cash-flow crunch Tata: Yes to Jaguar XF derivative, no to SUV U.S. aid is needed now, but not to help Cerberus They are too big to fail Why should we help GM and Chrysler? First and foremost, you must be flexible U.S. trade policy gives it all away To the Editor: A rough ride is nothing new for autos Dealer's politics were pertinent Chrysler's 1st electric: Probably a cargo van Auto meltdown forces Mercedes to scrap prediction of sales record Boosting mpg will bump up stickers, too Adding up the tab for fuel economy Camaro Black: Eye-catching, affordable and available Honda sees green in Civic HFP's street performance Honda offers peek at future Fit Ford F-150 Raptor flies off-road Souped-up, tricked-out â and headed for the showroom Report: Toyota plans $5,000 car Amid gloom, Mazda chief sees revival in 2009-10 Report: Past-due subprime loans jump Toyota aims to win loyalty with credit card Study: Car buyers turn green for different reasons Thanks, buddy Hyundai helps Dealers Metaldyne offers pennies to bondholders Obituaries Personnel As expected, Oct. sales sank Another Chinese automaker plans Mexico factory Honda backs off U.S. clean diesels Industry pal, foe vie for key post in Congress Industry expects more activism from D.C. N.A. output falls 19.9% Toyota moves in striking distance of GM's U.S. sales crown Going, going . . . An ex-GM exec's view: It's going to get nasty Sex, Nazis, chicken and BMW: A scandal that puts fiction writers to shame Recession rips up roadster market Toyota takes heat for 'the herpes of the advertising world' Want to boost mpg? Turn up the heat on AC Cutting energy loss: A nibble here, a nibble there ... Carbon slashes weight, but it's still too pricey Carmakers shift to gears in search of mpg gains Natural gas draws interest as alternative fuel Friction? Ay, there's the rub Electric for a week Automotive News - November 10, 2008 Automotive News - November 10, 2008 - (Page Intro) Automotive News - November 10, 2008 - (Page Bellyband1) Automotive News - November 10, 2008 - (Page Bellyband2) Automotive News - November 10, 2008 - The options: Bailout or disaster (Page 1) Automotive News - November 10, 2008 - The options: Bailout or disaster (Page 2) Automotive News - November 10, 2008 - VW will unveil roadster at Detroit auto show (Page 3) Automotive News - November 10, 2008 - Mercedes hit hard in Northeast, once a sales stronghold (Page 4) Automotive News - November 10, 2008 - Mercedes hit hard in Northeast, once a sales stronghold (Page 5) Automotive News - November 10, 2008 - Loss is more: Europe snatches bigger share of U.S. market (Page 6) Automotive News - November 10, 2008 - Loss is more: Europe snatches bigger share of U.S. market (Page 7) Automotive News - November 10, 2008 - As losses mount, suppliers risk cash-flow crunch (Page 8) Automotive News - November 10, 2008 - As losses mount, suppliers risk cash-flow crunch (Page 9) Automotive News - November 10, 2008 - Tata: Yes to Jaguar XF derivative, no to SUV (Page 10) Automotive News - November 10, 2008 - Tata: Yes to Jaguar XF derivative, no to SUV (Page 11) Automotive News - November 10, 2008 - First and foremost, you must be flexible (Page 12) Automotive News - November 10, 2008 - First and foremost, you must be flexible (Page 13) Automotive News - November 10, 2008 - Dealer's politics were pertinent (Page 14) Automotive News - November 10, 2008 - Dealer's politics were pertinent (Page 15) Automotive News - November 10, 2008 - Auto meltdown forces Mercedes to scrap prediction of sales record (Page 16) Automotive News - November 10, 2008 - Boosting mpg will bump up stickers, too (Page 17) Automotive News - November 10, 2008 - Boosting mpg will bump up stickers, too (Page 18) Automotive News - November 10, 2008 - Boosting mpg will bump up stickers, too (Page 19) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 20) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 21) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22a) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22b) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22c) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22d) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22e) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22f) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22g) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22h) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22i) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22j) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22k) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22l) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 23) Automotive News - November 10, 2008 - Souped-up, tricked-out â and headed for the showroom (Page 24) Automotive News - November 10, 2008 - Amid gloom, Mazda chief sees revival in 2009-10 (Page 25) Automotive News - November 10, 2008 - Toyota aims to win loyalty with credit card (Page 26) Automotive News - November 10, 2008 - Hyundai helps (Page 27) Automotive News - November 10, 2008 - Dealers (Page 28) Automotive News - November 10, 2008 - Personnel (Page 29) Automotive News - November 10, 2008 - Personnel (Page 30) Automotive News - November 10, 2008 - Personnel (Page 31) Automotive News - November 10, 2008 - Personnel (Page 32) Automotive News - November 10, 2008 - Personnel (Page 33) Automotive News - November 10, 2008 - Personnel (Page 34) Automotive News - November 10, 2008 - Personnel (Page 35) Automotive News - November 10, 2008 - Personnel (Page 36) Automotive News - November 10, 2008 - As expected, Oct. sales sank (Page 37) Automotive News - November 10, 2008 - Honda backs off U.S. clean diesels (Page 38) Automotive News - November 10, 2008 - Industry expects more activism from D.C. (Page 39) Automotive News - November 10, 2008 - Industry expects more activism from D.C. (Page 40) Automotive News - November 10, 2008 - N.A. output falls 19.9% (Page 41) Automotive News - November 10, 2008 - Toyota takes heat for 'the herpes of the advertising world' (Page 42) Automotive News - November 10, 2008 - Toyota takes heat for 'the herpes of the advertising world' (Page 43) Automotive News - November 10, 2008 - Toyota takes heat for 'the herpes of the advertising world' (Page 44)
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