CARS SALES SAME EVEN WITH HIGHER TAXES

f Higher Taxes For the month of February, Kelley Blue Book analysts predict new-car sales will maintain the momentum from the previous three months and hit 15.3 million seasonally adjusted annual rate (SAAR), a 3.4 percent year-over-year improvement. Although shy of the 14 percent annual gain the auto industry experienced in January, sales should improve more than 7 percent after adjusting for the number of selling days in February. Although sales are expected to maintain a steady course in February, a recent Quick Poll among in-market car shoppers conducted by Kelley Blue Book 's Market Intelligence team indicates that many consumers are beginning to feel the pinch from the expiration of the 2 percent payroll tax holiday. When asked if the increase in the payroll tax impacted their new-vehicle purchase timeline, 39 percent indicated that they planned to delay their purchase, 28 percent responded that the tax increase didn't impact their purchase timeline in any way, while 27 percent indicated that they would reduce the amount they planned to spend on their next purchase.

IPHONES AND COMPUTERS OVER WHEELS

eNews Millennials Favor Phones over Wheels Zipcar, Inc. released the findings of an independent study of Millennials (18- to 34-year-olds), which examines the attitudes and behaviors of this generation related to urban transportation, technology and car ownership. Overall, the study found that the increasing availability of on-demand mobility services (such as car sharing, ride sharing and vehicle sharing) helps many Millennials drive less and makes it easier to for them to live without owning a car. The study, conducted in December by KRC Research, reveals that mobile devices and on-demand transportation apps are more important to Millennials than car ownership: Nearly two in three (65 percent) of Millennials say losing their phone (30 percent) or computer (35 percent) would have a greater negative impact on their daily routine than losing their car (28 percent). One in four Millennials (25 percent) say transportation apps have reduced their driving frequency, compared to less than 12 percent of those 45+. Considering how youth has changed over the years. The baby boomers saved their money and could not wait until their 16th birthday in order to drive. The new generation places the importance of wheels at the bottom of their lists.

USED CAR SALES SLOWING DOWN

Used Car Sales Slow Used car sales are expected to slow this month. Edmunds.com estimates that 3.35 million used cars will be sold in February, for a SAAR of 37.2 million (compared to 3.12 million - or a SAAR of 38.7 million - used car sales in January). Edmunds.com forecasts that 1,198,538 new cars and trucks will be sold in the U.S. in February for an estimated SAAR this month of 15.5 million light vehicles. The projected sales will be a 14.9 percent increase from January 2013, and a 4.3 percent increase from February 2012. Retail SAAR will come in at 12.4 million vehicles in February, with fleet transactions accounting for 20.3 percent of total sales. Considering the fact that fuel prices are rising unemployment is staying the same and income tax refund checks are being delayed dealers are feeling the pitch and prices of used vehicles are expected to topple.

USED CAR DEALER ARRESTED

Police Arrest Dealer for Not Paying Tax A former Florida used-car dealer has been arrested on charges that he stole more than $130,000 in sales tax he collected from customers, but failed to send in to the state. Biel Semexant, Jr., the former owner of Smart Carz, LLC, and Auction Access USA, was arrested by the Broward County Sheriff's Office on Dec. 4 on felony charges relating to theft of state funds, filing a false or fraudulent return, and failure to file six consecutive returns. If convicted, he faces up to 15 years in prison and up to $10,000 in fines, as well as possible repayment of stolen tax, interest, penalty and investigative costs. Semexant's dealerships were located on North Dixie Highway in Wilton Manors. According to Florida Revenue Department investigators, Semexant collected tax from customers at both of his former dealerships. However, during various periods beginning in 2006 and lasting through periods in 2012, he failed to send in to the state all of the sales taxes that he had collected or file tax returns as required by law. Under state law, sales tax is the property of the state at the moment of collection.

3RD PARTIES INFLUENCE VEHICLE PURCHASE

eNews Frustrated Consumers Turn to Third Party Sites Consumers say they are turning to a variety of online and offline services to help them make their car-buying decisions because industry websites fail to satisfy their needs, a new global survey by Accenture reveals. The survey of 13,000 drivers in 11 countries found that consumers believe the car-buying process would be simpler and quicker if the content on auto industry websites was customized to be more relevant to their specific car-buying preferences and if the industry adopted such online innovations as web chat and mobile-enabled websites, which are used widely in other retailing sectors. Of the survey respondents who say they research their car purchases online before buying a vehicle, 78 percent visit at least six websites or more first, and 15 percent say they need to browse more than 20 websites to get the information they seek. In addition, 75 percent say they still turn to more traditional offline media for the information required to make a car-buying decision. More than three quarters (80 percent) of the respondents would like more intuitive, customized content made available to them, while 75 percent favor a process that will enable them to obtain more simplified information online. Nearly three quarters (73 percent) would like the comparison process simplified, and 68 percent would welcome the ability to chat online with a dealer. According to the survey, most respondents (88 percent) also want easier and clearer pricing to help expedite the car-buying process, while 77 percent want dealers to provide them with a simpler way to configure a vehicle. More than three quarters (76 percent) would like to have the ability to compare additional options with the same automaker's product line and 75 percent would welcome more mobile-enabled websites. Additionally, 74 percent desire better integration between dealer sites and inventory search functions. According to the survey, 82 percent of the respondents believe that better interactive digital marketing is a must for the auto industry, and 83 percent agree that improved digital media would significantly reduce the time needed to purchase a vehicle. In addition, over three quarters of consumers (76 percent) feel that the auto sector significantly lags other retail industries in the use of digital media tools such as video and 360-degree website tours. In terms of the major influencers that impact their car-buying decisions, survey respondents essentially gave equal weight across the board to manufacturer sites (53 percent), the recommendations of friends and colleagues (54 percent), social media (56 percent) and advice from family (59 percent).

BANKCARD CREDIT RATING IMPORTANT##

The Consumer Financial Protection Bureau released a report on the consumer experience with the three largest nationwide credit reporting companies: Equifax Information Services, LLC; Experian Information Solutions Inc.; and TransUnion LLC. Among the key takeaways in the report, which is one of the most comprehensive studies of credit reporting to date, are that credit card history dominates the information in consumer reports and that debt collection items generate the highest rate of disputes. The report is the result of the CFPB analyzing U.S. information from 2011, including information submitted by TransUnion, Equifax, and Experian. Credit reporting companies get their information from a variety of industries but more than half of the account information is supplied by credit card companies. Specifically, 40 percent comes from bank cards, such as general credit cards, and 18 percent comes from retail credit cards. Only 7 percent comes from mortgage lenders or servicers, and only 4 percent comes from auto lenders. In 2011, consumers reached out to the credit reporting companies roughly 8 million times, resulting in disputes of 32 to 38 million items in their credit files. Almost 40 percent of the disputes relate to debt in collections, and debt in collections is five times more likely to be disputed than mortgage information. According to the industry, some of this may have to do with consumers' incentive to dispute any negative information on their reports. The most effective way for consumers to identify errors in their reports is to obtain copies and review them. But only about 44 million consumers per year, or about one in five, obtain copies of their files. Most information contained in credit files comes from a small number of large banks and other financial institutions. In fact, the top 10 data furnishers provide 57 percent of the trade lines coming into the credit reporting companies. The top 50 furnishers provide 72 percent. And the top 100 furnishers provide 76 percent. The credit reporting companies resolve an average of 15 percent of consumer disputed items internally, without getting the data furnishers involved. The remaining 85 percent are passed on to the furnishers. The report, however, found that the documentation consumers mail in to support their cases may not be getting passed on to the data furnishers for them to properly investigate and report back to the credit reporting company. Recent Posts

#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