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Top 5 Stories
High Used-Car Prices Make It Ideal Time to Sell
Obama Administration Wants Rebate on Electric Cars
Auto Sales Likely to Reach 16M by 2013
This Time, High Gas Prices Aren't Killing Auto Sales
NADA's Latest Dealership Financial Profile Shows Growth in New-Vehicle Sales, Store Profits
Click here for NADA's online newsroom at NADAFrontPage.com.
Top 5 Stories
High Used-Car Prices Make It Ideal Time to Sell
The Associated Press

DETROIT -- It's the best time in years to sell your car. People are holding on to cars and trucks for about a year longer than they did before the recession, which has created a tight supply of used vehicles. So few are on the market that prices have risen to their highest in at least 16 years. Dealers are paying an average of $11,660 for a used car or truck, up almost 30 percent since December 2008. "You're not going to find a situation like this very often," says Jonathan Banks, executive auto analyst for the National Automobile Dealers Association used car pricing guide.

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Obama Administration Wants Rebate on Electric Cars
The Associated Press

U.S. Transportation Secretary Ray LaHood told a group of Nissan executives and workers on Tuesday that the Obama administration wants consumers to be able to get a tax rebate at dealerships when they buy electric cars. The federal government currently offers a $7,500 tax credit on the purchase of electric vehicles, but that can't be taken until buyers file their income taxes. LaHood said he expects the change to be a part of any tax bill that is passed in the next year and a half. The [Nissan] Leaf carries a manufacturer's suggested retail price in the U.S. of $32,780, much higher than most similar-sized, gas-powered cars. With the tax credit, the price is more like $25,000. "We'd like for people to get a $7,500 rebate on the day they buy the Leaf," LaHood said, comparing it to the way the popular Cash for Clunkers program worked. Combined with state incentives, the rebate will allow people "to own a Leaf for what most average people can afford," he said. The idea could face opposition from the dealers, however. [Editor’s note: NADA points out that the proposal may be well intentioned, but it would needlessly complicate the car buying process. NADA has met with key Members of Congress to explain how turning the existing $7,500 tax credit for electric vehicles into a point-of-sale rebate would overly-complicate the purchasing process and impose significant financial burdens on dealers. Furthermore, changing the vehicle tax credit is unnecessary; the current tax credits have been successful in stimulating consumer interest in emergent technologies. The rebate proposal is so complicated that it would likely deter sales of alternative fuel vehicles which is exactly the opposite effect that’s intended.]

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Auto Sales Likely to Reach 16M by 2013
The Detroit News

Pent-up demand behind increase to pre-recession levels, predicts company

U.S. auto sales are likely to recover to pre-recession levels by 2013, bolstered by pent-up demand from consumers ready to replace aging cars and trucks, a consulting firm said Tuesday. A.T. Kearney expects sales will rise this year to 13.2 million cars and light trucks from 11.6 million last year. It sees them growing further, approaching pre-recession levels of about 16 million vehicles by 2013. Between 2000 to 2007, annual sales averaged 16.8 million vehicles, according to research firm Autodata Corp. A.T. Kearney's sales forecasts are in line with other predictions. Analysts' estimates compiled by Bloomberg last month averaged 13 million car and truck sales for 2011.

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This Time, High Gas Prices Aren't Killing Auto Sales
The Detroit News

More efficient cars, better balance sheets help Big 3 weather storm

Soaring gas prices in 2008 helped cripple Detroit's automakers, but there's a different vibe in the industry today, even though gas prices are volatile and hovering around $4 a gallon. Motorists aren't pushing the panic button, and neither are automakers. Owners of gas-guzzling trucks and SUVs, who rushed to unload them three years ago, are taking a wait-and-see attitude. Shoppers in the market for a new car or truck aren't delaying purchases, but shifting to smaller or more fuel-efficient vehicles — many of them from domestic brands. That attitude comes as no surprise to Ken Czubay, Ford's vice president of marketing, sales and service. "Dealers want more Fiestas, Focuses and Explorers," Czubay said. "These cars are selling off the convoy trucks."

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NADA's Latest Dealership Financial Profile Shows Growth in New-Vehicle Sales, Store Profits
NADAFrontPage.com

First quarter results from NADA's monthly Dealership Financial Profile, which provides a snapshot of the financial condition of the average new-car dealership, portrays an industry well into recovery, says NADA Chief Economist Paul Taylor. Despite challenges such as higher gas prices and generally slow economic growth during the first quarter, total sales at the average dealership were up 22.5 percent while expenses increased just 14.2 percent. The stronger financial performance yielded net profits before taxes of 2.4 percent for the typical dealer, Taylor says, which represents a 34 percent increase over performance in the first quarter of 2010. Service and parts sales have risen 11.5 percent compared to 2010. "Dealers showed strength in all areas of operations in the first quarter," Taylor says. "Their strong performance suggests that as new-car production is restored, the stage is set for continued strong growth in the future." [Editor's note: For more analysis from NADA's Industry Analysis group and Chief Economist Paul Taylor, visit NADA's Dealership Financial Profiles online.]

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Make the Most of Your Advertising Dollars
NADA members are invited to participate in the TVB's free webinar Friday, May 20, at 11:30 a.m. (Eastern) on how dealers and their local broadcast stations can work together to make the most of advertising dollars. To participate in this webinar, contact your local broadcast station holding TVB membership.

Dealer Executive Education at Babson College August 2011 Class Forming Now
Babson College has the nation's No. 1 ranked MBA program for entrepreneurship, a distinction it has earned for 17 consecutive years.

May Discounts From Lenovo
NADA members can use eCoupon USXMAYSAVINGS2011 at checkout to get an additional 8% off IdeaPad Y Series and an additional 10% off IdeaCentre All in One Desktops.

HP's Inventory Blowout
NADA members can save $330 on HP's Compaq 6005 Pro Small Form Factor Desktop PC and $440 on HP's Compaq 800 Elite Small Form Factor PC with free U.S. ground shipping.

 
NADAFrontPage.com
For comprehensive auto industry news, visit the online news magazine NADAFrontPage.com.
Quotable
"You're not going to find a situation like this very often."

    -- Jonathan Banks, executive auto analyst for the NADA Used Car Guide, responding to the dramatic rise in used-car prices, which are at their highest levels in at least 16 years, The Associated Press, May 18

Video Highlights
 
GM Sales Chief Discusses Progress, Challenges Ahead (AutoFocus) 

 
2011 NADA-IHS Auto Forum Offers Insiders' View of Present, Future (NADA-TV)

 
Analyst Says Gas Prices Affecting Small, Midsize Used Markets (AutoFocus)


NAD Charitable Foundation Supports Wounded Veterans Initiative (NADA-TV)

Tornado Relief


Upcoming Webinar

Wednesday, May 18, at 1 p.m. (Eastern): “One-Price Selling: In Sync with Today’s Auto Purchasers,” presented by Mark Rikess, CEO of The Rikess Group


NADA Used Car Guide

Providing the most reliable
and most comprehensive
used-vehicle values since 1933

 
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