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Monday, Aug. 15, 2011 RSSSEND TO A FRIENDPRINT
Inside This Issue
Low Rates May Do Little to Entice Nervous Consumers
Toyota and Honda See Relief in Q4
Used Supply Likely to Tighten More; How Will Dealers Adapt?
GM Women's Network Adds Dealers, Offers Scholarships
Americans as Hungry as Ever for Beefy Muscle Cars
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Top 5 Stories
Low Rates May Do Little to Entice Nervous Consumers

The Federal Reserve’s announcement last week that it intended to keep credit cheap for at least two more years was a clear invitation to Americans: Go out and borrow. But many economists say it will take more than low interest rates to persuade consumers, a crucial driver of the nation’s economy, to take on more debt. Lenders, meanwhile, are still dealing with the effects of the boom-gone-bust and are forcing prospective borrowers to go to extraordinary lengths to prove their creditworthiness. Car shoppers with the highest credit ratings can also get loans more easily, and at lower rates, said Paul C. Taylor, chief economist of the National Automobile Dealers Association. During the recession, inability to obtain credit severely curtailed auto buying as lenders rejected even those with good credit. Now automakers are increasing their subprime lending again as well, but remain hesitant to approve large numbers of risky customers. According to CNW Marketing Research, confidence among those who intend to buy a car this year is at its lowest since it began collecting data on this measure in 2000.
Source: The New York Times

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Toyota and Honda See Relief in Q4

Normal stocks return slowly; Detroit 3 gain
Toyota and Honda dealers will wait until the fourth quarter -- or longer -- before their earthquake-hobbled inventory returns to normal. Until then, expect firm transaction prices, modest incentives and considerable breathing room for the Detroit 3 quietly taking share from the two Japanese automakers. Toyota Motor Sales spokesman Mike Michels says that even with resumed full Japanese production and North American plants now running at 110 percent, the automaker can't restore dealer stock to year-before levels until sometime in the first quarter of 2012. At Honda, spokesman Ed Miller said the company's plants resumed full production Aug. 1 -- of all vehicles except the Civic. "We think demand will be increasing along with inventory," he said. Nissan, in contrast, says its inventories are fine.
Source: Automotive News

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Used Supply Likely to Tighten More; How Will Dealers Adapt?

Dealers are already feeling the pinch of diminishing used-vehicle supply circulating back into their stores, but they might want to brace themselves, as it’s about to tighten even more, according to NADA Used Car Guide. This company reports that off-lease supply of three- to four-year-old vehicles, in particular, will likely be “bottoming out” late next year and early 2013. Overall, analysts project there will be a constant draining of used supply for at least the next 12 months. So, dealers and OEMs will have to adjust, and NADA Used Car Guide suggested what some may do to counter the shortage. “While a positive from a value retention standpoint, stock challenges faced by dealers will accelerate,” analysts indicated. “As a result, savvy dealers will increasingly diversify acquisition strategies — heavier reliance on upstream channels, increased communication with other dealers for exchange purposes, soliciting customer trades even if there isn’t a retail purchase, etc. — to locate those vehicles demanded by their respective markets. While the off-lease projections probably seem quite daunting for dealers, NADA Used Car Guide did offer a bit of a silver lining in its rental supply forecast. There has been a consistent drop for the last four years, but NADA Used Car is expected almost a 200,000-unit increase for full-year rental returns this year.
Source: Auto Remarketing

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GM Women's Network Adds Dealers, Offers Scholarships

The General Motors Women's Retail Network is observing its 10th anniversary this year with two accomplishments: It has added seven women-owned dealerships through July and has started a scholarship program aimed at influencing young women to become dealers and dealership managers. Celeste Briggs, who was on the network's launch team in 2001 and now is its director, says the network has evolved and its name has changed but its mission remains the same: to nurture, retain and add to the ranks of profitable women dealers. "How do you get yourself prepared? How do you get up to speed?" Briggs says of women who are thrust into the role of dealer principal. "We've encouraged women who are making that transition to get to the NADA Academy so they can become proficient in running their own businesses so they don't lose them." The retail network awarded five scholarships last week at its annual conference in Detroit held in conjunction with GM's minority dealer network. 
Source: Automotive News

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Americans as Hungry as Ever for Beefy Muscle Cars

Dream Cruise classics inspire popular modern versions
America is flexing its muscle. In Metro Detroit, the Woodward Dream Cruise celebrates all that thunders under the hood. But not all are vintage models: There are many modern-day muscle cars on the market, and sales are surprisingly strong despite gas price spikes and economic jitters that should have scared buyers away from performance cars and into subcompacts or hybrids. The Ford Mustang has been on the market for 46 years; rivals such as the Chevrolet Camaro and Dodge Charger and Challenger have taken production breaks over the years. The selection available to enthusiasts today is as robust as any time in history. In short, General Motors Co., Ford Motor Co. and Chrysler Group LLC continue to feed and dominate the segment known as "American muscle." "Muscle cars never went away; the definition just changes," said analyst Jim Hall of 2953 Analytics in Birmingham, [Mich.]
Source: The Detroit News

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More articles

Aug. 12, 2011 - Obama Claims Connection Between Fuel Standards, Jobs, But Reality is Complicated

Aug. 11, 2011 - Many Buyers Spurn Small Cars Despite High Gas Prices

Aug. 10, 2011 - Confidence Over Autos Stays Firm

Aug. 9, 2011 - Wall Street Turmoil Could Stall Car Industry Recovery

Aug. 8, 2011 - Cars Vs. Trucks: Are Buyers Really Downsizing?

"Muscle cars never went away; the definition just changes."

-- Jim Hall of 2953 Analytics in Birmingham, Mich., referring to engines in today's muscle cars, which are much smaller, but more powerful, The Detroit News, Aug. 15

Adverse Action

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NADA Foundation:
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 More videos

NADA U Webinars
“New Technology, New Data, a New Method of Stocking,” led by Dale Pollak of vAuto, Inc., Aug. 17 at 1 p.m. EDT

“Buy and Sell Smart with Today’s Mobile Tools,” with Chad Goodson of CARFAX, Aug. 24 at 1 p.m. EDT

Convention News
Register Online Now for NADA's Vegas Convention

Registration is now open online for the 2012 NADA and ATD Convention and Expo, Feb. 3-6 in Las Vegas. The 2012 convention will mark the first time the NADA and ATD conventions will be held together. Dealers are urged to register early to take advantage of discounted pricing and reduced hotel rates. Click here to register.

Foundation News
NADA Foundation Program Reaches 500th Ambassador
NADA Used Car Guide Adds VIN Scanner App to its Mobile Products -- The new app is available for the iPhone, iPad 2 and Android to help vehicle appraisers make fast and accurate decisions. NADA Online and NADA AppraisalPRO subscribers can download the app for free.

Texas Dealer Academy Taps Online Resources of NADA University for NextGen Program -- The Texas Auto Dealers Association, a subscriber of NADA U's premium online training option, NADAvt, has launched a new program to help the next generation of dealers and managers succeed when it's their time to run the business.

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