#VETERAN CARSALESMEN MAKE MORE

Despite the fact that the new generation carsalesperson has access to social media more computer literate and better educated the old school method of carsales seem to equate to higher commissions. NADA University, the education and training arm of the National Automobile Dealers Association, has unveiled an all-new industry report covering car and truck dealership employee compensation, benefits, retention and turnover, and hours of operation and work schedules. The study included some findings about the used-car department. One is that there is a positive connection between years of tenure and increased new- and used-vehicle sales. Also, increasing dealership used-vehicle sales has a smaller impact on compensation than increasing new-vehicle sales. The new report presents an overall analysis of 2012 Dealership Workforce Study results with data for all regions of the U.S. The study, based on 350,000 payroll records submitted by nearly 2,500 dealerships, vastly improves and expands the former NADA biennial Compensation Study in a variety of ways, including: capturing enhanced and more timely data and trends on an annual basis; compiling data nationally, regionally and statewide; simplifying participation through a web-based portal; and offering separate individualized reports to participating dealerships so they can compare their numbers against data aggregated on a regional and national basis, as well as by state/metro area and franchise. Among other key findings in the Industry Report, based on 2011 data: Most key dealership positions emphasized in the report had higher individual average salaries than the median household income in their regions, and all exceeded the national average individual wage index. Job retention, turnover, and tenure were more favorable than the national norms in most key job categories analyzed. Turnover rates for sales consultants in a number of regions were close to, or exceeded, the average of 39.9 percent for all industries. Tenure for sales consultants is below the national job average of 5.1 years in all regions. Tenure for F&I directors/managers, sales managers, and service advisors is below national levels in some regions. There appears to be a strong correlation between dealership sales hours and new-unit sales. Recent Posts

USED CAR SCAMS

You need a used car so you start surfing Craigslist, Ebay and all of the other classified local and national sites for an afforable used car. Bam you found it right price right year you are ready to write the check. Review the following guidelines it might save you a few thousand dollars. Recently, I received a phone call from an individual that had just purchased what he described as a collectable Mercedes which supposeingly was being stored at my used car lot. The true story was that the previous owner had abandoned the vehicle on my lot as it would not run but took a picture of the car waited a couple of years and posted it on Ebay using my address as the pickup point. The guy lost about 3,000. I would never pay for a car online until I had phycially seen the car and looked at the title prior to sale. The 300. airline tickent might save you a few thousand. You buy the car: I will get you the title in 10 days: Bad Idea only pay for the car when you can look at the title and have the title in hand: and Verify that the vin number is the same as on the title. The car has never been wrecked: Take car to body shop put it on a rack and also run a carfax. This is the actually mileage: Even in this electronic age there is a device called the black box that can be pluged into a car computer and run the miles back most states reguire dealers to provide previous owners name address and phone number. Cocked Eyed 6's: On older cars if the 6's are out of line the miles have been shorn something about lining up 6's is hard to master.

ONLINE SCAM TARGETING CANADA

Online Scam Targets Canada from Oklahoma OMVIC, the regulator of motor vehicle sales in Ontario, has been alerted by the Oklahoma Used Motor Vehicle and Parts Commission (UMVPC), of a potential online scam specifically targeting Canadian car buyers. UMVPC alleges Ambient Auto Center of Oklahoma City advertises on the Canadian sites of Autotrader, Wheels, E-bay, Craigslist, Kijiji and Autocatch: their ads offer high-end late model vehicles at prices that may be too good to be true'. UMVPC said Ambient's website became active in October and yet they are not a licensed dealer. A review of Ambient Auto Center's website finds claims of "hundreds of used exotic vehicles" for sale and "award-winning service", and they offer to "ship world wide." The dealership has no physical presence and the advertised address is, in fact, an empty cornfield next to a warehouse owned by the State of Oklahoma.

AUTO LOAN MODIFICATIONS RIPOFF'S

The Federal Trade Commission put a stop to a California-based auto loan modification operation that settled the regulator's charges after allegedly deceiving consumers with false promises that it could get auto loans modified and stop cars from being repossessed. Patrick Freeman, the sole owner of the Hope for Car Owners operation, has agreed to a settlement with the FTC that bans him from marketing auto loan modifications and any other debt relief services. Freeman's company is in default. In April 2012, the FTC alleged that Hope for Car Owners, LLC and Freeman charged hundreds of dollars in up-front fees, based on bogus promises that they could reduce consumers' monthly car loan payments and help avoid repossession of their vehicles. The agency alleged that the defendants' websites and telemarketers promised consumers substantially lower monthly payments. According to the FTC, the defendants collected hundreds of dollars in up-front fees and told the consumers to stop paying their auto lenders, which often left them in worse shape than when they began, and increased the risk that their vehicles would be repossessed. The FTC also alleged that once the up-front fees were collected, the defendants did nothing to obtain the promised loan modifications, and consumers who tried to get refunds were denied. In one case, for instance, Hope for Car Owners took $400 from a consumer and told her not to make any more payments on her vehicle, according to the FTC. The consumer followed the defendants' instructions, and her lender soon informed her that her vehicle was going to be repossessed. Under the settlement order, Freeman is prohibited from making misrepresentations about financial products and any other product or service. He also is required to back up any claims about the benefits, performance, or efficacy of any product or service, and to destroy customer information obtained by the loan modification scheme within 30 days after the settlement order takes effect. The settlement also imposes a $362,388 judgment, which will be suspended due to Freeman's inability to pay. If it is later determined that the financial information Freeman provided to the FTC was false, the full amount of the judgment will become due. The FTC has a new video warning car ownersto avoid businesses that charge a fee in exchange for a promise to lower car monthly car payments, and in some cases, help stop repossession. As the video points out, consumers who have trouble making their monthly car payments should contact their lenders directly. Consumers also can read "Ads for Auto Loan Modifications: You May Be Able to Drive a Better Deal with Your Lender."

SANDY: DRIVES USED CAR PRICES HIGHER

Edmunds.com the car-buying guide predicts hkes of as much as $700. to $1,000 on some makes and models of used cars, trucks, and suv's. Considering that most new and used car dealers make the bulk of their profits from January-May when tax refund checks arrive in the mail now is the time of year they are searching for inventory. Flooding, and other damages from the massive weather system destroyed approximately 100,000 vehicles according to the National Automobile Dealers Association. Fewer, cars on the road means fewer cars to be traded in for a newer model. Sandy's supply squeeze comes at a time when most used car prices have been rising by at least 20% over the past (3) years according to the NADA. Consumers have been holding on to their vehicles partly because of tough economic conditions and partly because of stiff credit requirements that often times will not allow their loans to be approved due to length of time on the job past credit problems. It used to be the average family traded cars every 3. to 5 years. Currently, families often wait 4 to 7 years and the trade'in has very little or no value. The forces the dealership to allow very little trade'in allowance forceing the consumer to borrow more money and have a higher monthly payment. It seems like the perfect storm for used car dealers based on supply and demand but even dealers are having a tough time finding excellent low mileage vehicles for resale. Stephen C. Webb owner of Stevescars.com owns a small used car lot in Paducah, Kentucky. He has resorted to combing police impound auctions seeking vehicles that have been impounded by law enforement agencies and reselling them on his lot of 15 years. He recommends when purchaseing a used vehicle spend the 45.00 and order a vehicle history report to check for flood damaged vehicles. Finally, some used car analysts recommend this could be the time to buy new. The difference in the monthly payment not to mention a new car warranty often times make the savvy consumer to purchase a more up-to-date vehicle with all of the new gadgets and toys installed.

WHOLESALE PRICES RISING ON USED CARS

Average wholesale used vehicle prices reversed the general softening they have shown since spring and rose significantly In October. When looked at on a weekly basis during the month of October, prices were actually declining during the first half of the month, but more than made up for lost ground during the second half of the month, according to ADESA Analytical Services. According to ADESA Analytical Services' monthly analysis of wholesale used vehicle prices by vehicle model class, wholesale used vehicle prices in October averaged $9,742 - up 2 percent compared to September and down 1.4 percent compared to October 2011. Prices for trucks were up more than those for crossovers and cars, as they have already taken a hit from higher gas prices over the past few years. The Openlane U.S. market index, which is based on data from the ADESA Openlane online marketplace, also rose by 2 percent month-over-month. Prices for used vehicles remarketed by manufacturers fell by 0.2 percent month-over-month in October, but were up 2.2 percent year-over-year. Fleet-lease consignors experienced a 2.6 percent decrease in October, leaving prices down 0.7 percent year-over-year. Dealer consignors saw a 0.5 percent average price increase versus September, resulting in prices being down 0.9 percent versus October 2011.

FEW BUYING INCENTIVES FOR CAR PURCHASE

Automotive incentives shrank again in October, even as dealerships continue to ring up healthy sales numbers. According to Edmunds.com's True Cost of Incentives report, the auto industry spent $2,124 per vehicle in October, down 3.3 percent from September and down 1.4 percent from October 2011. Edmunds.com reported in September that incentives fell for the first time in five months, even as the auto industry produced its best monthly SAAR of the year. Just last week, Edmunds.com projected that October will deliver the second-highest monthly SAAR of the year at 14.8 million light vehicles, a figure that ultimately may be affected slightly by the damage caused by Hurricane Sandy along the Mid-Atlantic seaboard. Ford was the only manufacturer out of the top six auto companies to increase its month-to-month incentive spending in October. The Detroit automaker's incentive spending climbed 2.7 percent from September to $2,788 per vehicle. Honda's incentive spending fell the most of any major automaker, sliding 15.6 percent from September.