Of course I see the customer not as the victim but deserving of this treatment.
Showing posts with label Car Sales. Show all posts
Showing posts with label Car Sales. Show all posts
Sunday, April 12, 2009
Monday, March 23, 2009
Train Cuts Town In Two
Not to sound too cold hearted but if that's the worst thing happening to you then you're doing pretty damn good.
Friday, March 20, 2009
New Cars Now Cheaper Than Used Ones
For cash-strapped consumers shopping for a car, used would seem like the place to start. Not necessarily. A new one might actually be cheaper.
Consider this: The average cost of a used 2008 Honda Accord EX sedan, certified by the dealership, was $21,544 earlier this month, according to Edmunds.com, a car-buying Web site. A new 2009 model cost $80 less.
It’s simple supply and demand. With new car sales at a 27-year low and desperate dealers piling on rebates and incentives, prices are plummeting. At the same time, demand is up for used cars and their values are rising.
“The intuitive logic has been that a used car buy is a better buy,” said Edmunds CEO Jeremy Anwyl. “But consumers need to check reality. It’s very contradictory.”
Used cars still generally cost less than new ones, but a mix of drastic price cuts, rebates and financing incentives is narrowing the gap.
Automakers are subsidizing zero-percent or low-interest loans on new cars, while the average rate on a three-year used car loan is about 7.5%, according to Bankrate.com. Factor in the lower cost of financing and the total cost of the new car can be less.
For example, a $30,000 car with an annual percentage rate of 2.9% would cost $662.70 a month over four years. By comparison, a used car with an APR of 7% would cost $718.38, a total of $2,673 more over the same period.
Automakers like Ford Motor Co. are banking on the phenomenon to drive consumers back to new car showrooms.
“There is an equilibrium level which we believe we are getting back to between the value of used vehicles and the transactional price of new,” said Ken Czubay, Ford’s sales and marketing vice president, when the company announced its February sales fell 48% from a year earlier. “This also portends, we believe, a favorable future for the new business.”
Even with the best of terms, however, the monthly payments for a new car are out of some people’s reach. That’s why leasing became popular. But many auto finance companies have stopped offering that option because it became unprofitable, and where it is available it may still be out of reach to many consumers.
Original story here.
Consider this: The average cost of a used 2008 Honda Accord EX sedan, certified by the dealership, was $21,544 earlier this month, according to Edmunds.com, a car-buying Web site. A new 2009 model cost $80 less.
It’s simple supply and demand. With new car sales at a 27-year low and desperate dealers piling on rebates and incentives, prices are plummeting. At the same time, demand is up for used cars and their values are rising.
“The intuitive logic has been that a used car buy is a better buy,” said Edmunds CEO Jeremy Anwyl. “But consumers need to check reality. It’s very contradictory.”
Used cars still generally cost less than new ones, but a mix of drastic price cuts, rebates and financing incentives is narrowing the gap.
Automakers are subsidizing zero-percent or low-interest loans on new cars, while the average rate on a three-year used car loan is about 7.5%, according to Bankrate.com. Factor in the lower cost of financing and the total cost of the new car can be less.
For example, a $30,000 car with an annual percentage rate of 2.9% would cost $662.70 a month over four years. By comparison, a used car with an APR of 7% would cost $718.38, a total of $2,673 more over the same period.
Automakers like Ford Motor Co. are banking on the phenomenon to drive consumers back to new car showrooms.
“There is an equilibrium level which we believe we are getting back to between the value of used vehicles and the transactional price of new,” said Ken Czubay, Ford’s sales and marketing vice president, when the company announced its February sales fell 48% from a year earlier. “This also portends, we believe, a favorable future for the new business.”
Even with the best of terms, however, the monthly payments for a new car are out of some people’s reach. That’s why leasing became popular. But many auto finance companies have stopped offering that option because it became unprofitable, and where it is available it may still be out of reach to many consumers.
Original story here.
Sunday, March 15, 2009
3 Car Dealership Executives, Dozens of Vehicles Missing
OMAHA, Neb. — Scores of new cars vanished from a western Nebraska car dealership and a prosecutor said Wednesday that some had turned up in other states and warrants had been issued for three missing executives.
The 81 Fords and Toyotas taken from Legacy Auto Sales in Scottsbluff were valued at about $2.5 million.
The Fords were put on transporter trucks and taken away Saturday and the Toyotas were shipped out late Monday, John Childress, Scotts Bluff County's chief deputy county attorney, said Wednesday.
Childress said arrest warrants had been issued for owner Allen Patch, controller Rachel Fait and general manager Rick Covello, who are wanted on suspicion of theft.
"Employees were expecting these people to be in Tuesday morning, and they were surprised no one was there," Childress said. "It is not an expected departure."
Covello called Scottsbluff police on Wednesday afternoon and said he would meet with investigators on Thursday, Capt. Kevin Spencer said. The whereabouts of Patch and Fait remained unknown, Spencer said.
Miranda Cervantes, the dealership's title manager, told the Scottsbluff Star-Herald she returned to work Tuesday after a day off and found the lot was virtually empty. She said the desks of Patch, Fait and Covello had been cleaned out.
The FBI traced two dozen vehicles to Salt Lake City, including 16 that had been sold at one auto auction, Spencer said. He said police also found six at the Scottsbluff airport, and the FBI located other vehicles in Las Vegas, but he didn't know how many.
Spencer refuted an earlier report from Childress that some of the vehicles had been found in Arizona.
Justin Leach, a spokesman for Toyota Financing in Torrance, Calif., said Patch financed the Toyotas and Fords through his company.
Legacy has had financial problems, Childress said, and authorities suspect Patch and his associates were looking to sell the vehicles to auction houses and keep the proceeds rather than pay Toyota Financing. He said the three have no criminal records in Nebraska.
All three previously lived in Utah, and the FBI and law enforcement agencies in several western states were searching for them, Childress said.
Leach said there are some provisions that would allow a dealer to move vehicles.
"But if the dealer and the cars go missing, there's an issue," he said.
Most of the missing cars were Toyotas, but Childress didn't have an exact number.
All 81 cars had valid temporary titles, as required by state law, Childress said.
Despite the missing new cars and executives, Legacy Auto Sales remained open Wednesday. Cervantes did not respond to calls seeking additional comment.
Scottsbluff is 470 miles west of Omaha.
Original story here.
The 81 Fords and Toyotas taken from Legacy Auto Sales in Scottsbluff were valued at about $2.5 million.
The Fords were put on transporter trucks and taken away Saturday and the Toyotas were shipped out late Monday, John Childress, Scotts Bluff County's chief deputy county attorney, said Wednesday.
Childress said arrest warrants had been issued for owner Allen Patch, controller Rachel Fait and general manager Rick Covello, who are wanted on suspicion of theft.
"Employees were expecting these people to be in Tuesday morning, and they were surprised no one was there," Childress said. "It is not an expected departure."
Covello called Scottsbluff police on Wednesday afternoon and said he would meet with investigators on Thursday, Capt. Kevin Spencer said. The whereabouts of Patch and Fait remained unknown, Spencer said.
Miranda Cervantes, the dealership's title manager, told the Scottsbluff Star-Herald she returned to work Tuesday after a day off and found the lot was virtually empty. She said the desks of Patch, Fait and Covello had been cleaned out.
The FBI traced two dozen vehicles to Salt Lake City, including 16 that had been sold at one auto auction, Spencer said. He said police also found six at the Scottsbluff airport, and the FBI located other vehicles in Las Vegas, but he didn't know how many.
Spencer refuted an earlier report from Childress that some of the vehicles had been found in Arizona.
Justin Leach, a spokesman for Toyota Financing in Torrance, Calif., said Patch financed the Toyotas and Fords through his company.
Legacy has had financial problems, Childress said, and authorities suspect Patch and his associates were looking to sell the vehicles to auction houses and keep the proceeds rather than pay Toyota Financing. He said the three have no criminal records in Nebraska.
All three previously lived in Utah, and the FBI and law enforcement agencies in several western states were searching for them, Childress said.
Leach said there are some provisions that would allow a dealer to move vehicles.
"But if the dealer and the cars go missing, there's an issue," he said.
Most of the missing cars were Toyotas, but Childress didn't have an exact number.
All 81 cars had valid temporary titles, as required by state law, Childress said.
Despite the missing new cars and executives, Legacy Auto Sales remained open Wednesday. Cervantes did not respond to calls seeking additional comment.
Scottsbluff is 470 miles west of Omaha.
Original story here.
Monday, March 2, 2009
Tuesday, February 10, 2009
China Now #1 in Auto Sales
China's monthly auto sales overtake US for 1st time in January, helped by shrinking US market
Full Story here.
Full Story here.
Monday, February 9, 2009
Friday, February 6, 2009
Sunday, January 11, 2009
Tuesday, January 6, 2009
Hey! I'm Laid Off, Anybody Want to Buy My Car?
Hyundai has a new program that I'm sure will appeal to some. It's basically just expanded "GAP" coverage, but now includes buying the car back if you lose your job. Cool idea or stupid marketing gimmick? Not sure. Full story here
Saturday, December 13, 2008
Jay Leno on the Auto Bailout
I think we should bail them out. To me it’s like class warfare. The white-collar guys get a bailout and the blue-collar guys don’t? That’s crazy. You know, I’d rather help a guy with a wrench in his hand than some guy sitting in front of a keyboard.
Very appropriate article in Popular Mechanics here
Very appropriate article in Popular Mechanics here
Thursday, December 11, 2008
Top Gear Reviews the Ford Fiesta
I've said before if they would build a really great small car the rest would fall into place. Looks like they may have pulled it off. Too bad we have to wait 2 more years for it.
Monday, December 8, 2008
Sunday, December 7, 2008
More on the Big three Bailout
Barney-Frank yells at Ford CEO
video here
Seems really harsh and goes back to what I believe that people are using their dislike for the typical "used car salesman" and applying it to an entire industry. Just seems very disrespectful. Don't misunderstand the big three do fall short on some things. OK alot of things.
Case in point, if you're gonna show off your new state of the art electric car. Maybe consider putting some damn hubcaps on the turd.
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