2013 NADA and ATD Conventions

by Kimberly Ann

This year’s NADA and ATD Conventions, held concurrently, hosted close to 600 exhibitors.  Companies from ‘Balloon Innovations’ to ‘Vin Solutions’ made sure there was plenty to see.  And once you suffered from exhibitor overload, NADA University organized and sponsored close to 150 workshops you could attend.

AutoSaver.com’s CEO, Derek White, and VP of Sales, Aaron Brinsko attended the annual event and offered up some insight.

Q: If you could take only one thing away from this year’s convention, what would that be?

A:  White: I was surprised to see that many major players were MIA this year.  

A:  Brinsko: From walking the convention floor to being present at the break-out sessions, I feel there was definitely a positive outlook towards 2013 in terms of new and used automotive sales.

Q:  What new technology most impressed you?

A:  White: Pineapple Advertising's Surf-N-Fusion… a very interesting marketing and social media tool.

Q:  Did you see anything you thought could benefit your sales plan? 

A:  Brinsko: We are thinking about incorporating video follow-up into our dealer drip campaign with our inside sales team.

Q: What work shop do you feel was most beneficial?

A:  Both overwhelmingly agreed that ‘Guerrilla Marketing’ using FaceBook and YouTube, presented by Jim Ziegler was by far the most informative.  Ziegler discussed up and coming social medians like Pinterest which is increasingly taking shape as a marketing tool.

Q: What’s in the near future for AutoSaver.com?

A: White: We are working on a mobile app that will give consumers the ability to appraise vehicles from their smart phone using our innovative value range pricing service.

Did you miss it this year, the ‘one stop shopping’ experience the NADA convention is known for?  There’s always 2014 or the 2013 NIADA that’s being held in Vegas this June.  Or check it on the web:  http://www.nadafrontpage.com/NADA_ATD_Convention_Workshops_2013.xml

What's The Deal?

http://www.AutoSaver.com by Kimberly Ann

Most of us have probably experienced the haggling that ensues when trying to get a good deal on a used car.  I mean, we understand the dealer has to make money, but one can’t even browse a car lot without 5 different sales people approaching you.  What’s even more frustrating is once you know what you like, you hear the infamous, “let me see what I can do” and off they go to talk to the little man behind the curtain. That is often known as ‘let the bartering begin’ or ‘no deal’!

As consumers, we have no way of knowing, for certain, how much money a dealer has into a car.  Nor do they have any intention of telling us.  If a dealer played their cards right at auction, they should most definitely have wiggle room in the price.  And the same goes if they took a vehicle in on a trade.  We all feel like we get the short end of the stick when we trade in.  After all, the dealer has to leave himself enough margin to make money when he sells that car.  If he doesn’t sell it, he has to incur costs to send it to auction and the cycle starts all over again.

Once a dealer purchases a car for wholesale at auction, is there a set mark-up?  I don’t believe that anything is ever set in stone, but a typical markup is between 25-45%, which should include the cost of repairs. Ok, so now what do we do with that bit of information? Do we take the price of the car and subtract the high side of 45% and go from there?  Or, should we subtract 25%?  I am pretty sure we understand this can be a tedious and frustrating process.  Personally, I want somebody or some thing to do this for me!  I want my cake and eat it too.  I want a good deal AND I want the know-how at my fingertips.  Better yet, I want to know the car I’m test driving is a good deal before I even bother to test drive. 

Welcome to ‘Value Range Pricing’ exclusively by http://www.AutoSaver.com…

The know-how hit the market in February…don't be last to use an industry first.

New Car vs. Used Car - The Debate Goes On

http://www.AutoSaver.com by Kimberly Ann


During a day in age when we all seem to be counting every penny, is buying a new car the best bang for our buck? Many report that there are definitely some great deals to be had buying new car, and that may lead us to believe that’s the route to go. But, this can be misleading. After all, I’ve also been told that buying a new car is perhaps the worst investment we can make, no matter what the rebates add up to. According to bankrate.com, ‘The fastest depreciation occurs in the car's first two years, when its value drops to 60 to 70 percent of its original sticker price. By buying a used car, you let a car's first owner incur the biggest depreciation hit.’ 

With that being said, let’s look at Kiplinger’s stats on the top 10 best used car purchases:

2008 Hyundai Sonata GLS

2009 Subaru Impreza 2.5i sedan

2009 Chevrolet Malibu 1LT

2009 Nissan Rogue S

2008 Honda CR-V LX

2008 Subaru Outback 2.5i

2009 Ford Taurus Limited

2008 Mazda CX-9 Sport

2009 Toyota Sienna LE

2009 Infiniti G37x AWD

When I didn’t see my 2006 Audi on this list, I decided to research a bit more and came across at t least 3 completely different set of results! Go figure, right? Bottom line is there are many things we need need to take into consideration. Here are five good questions to ask yourself to help you out…and not in any particular order:

1. Many of us prefer American cars over Foreign cars and vice-versa. Do you prefer a certain brand or brands?
2. What vehicles hold their value the most? How much money can I retain when I decide to sell my car down the road?
3. Color does affect salability. Hint: don’t buy funky colors and expect to be able to get the most out of it down the road.
4. Gas milage…how far can I drive on a full tank of gas with gas prices over $3.00 a gallon? Cha-Ching
5. How much is it going to cost me to service my vehicle? $100 oil changes can get old after a while. 

And after you’ve narrowed down what you’d consider purchasing, be sure to start your official search with a website that can narrow down your search results and save you time, as well as money.

Happy Hunting!

http://www.AutoSaver.com

References
Bankrate.com Auto Calculator http://www.bankrate.com/calculators/auto/new-or-used-car.aspx 
Kiplinger’s 10 Best Used Values in Cars, 2012  http://www.kiplinger.com/slideshow/cars/T009-S001-10-best-values-in-used-cars-2012/index.html

Is There Really 'A Best Time' To Buy A Car?

http://www.AutoSaver.com by Kimberly Ann

We all know that Black Friday is supposed to be the best day for Christmas shopping deals, but is there a Black Friday for car shopping?  I could answer this question with a one word answer, ‘NO’…but let’s dig a little deeper. 

Have you ever heard a couple of these Auto Industry Urban Legends?

‘You can get a better deal when you shop first thing in the morning.’

Or the opposite, ‘You’ll get a better deal at the end of the day when the salespeople are vying for their last sale.’

‘Shop at the end of the month.  The salespeople have quotas so you’ll get a better deal.’

If it could only be that clear cut!

Now, there are times of the year when there are more vehicle sales, but it doesn’t mean these purchases render great savings.  At tax refund time, cash in hand makes for a great time to put money down on a used vehicle, if not buy one outright.  HOWEVER, if there is a high demand for used cars at that particular time of year, and the supply is low…you can kiss the savings goodbye.  As with any other commodity, when the supply is high and demand can’t keep up with supply, the prices generally go UP.

Perhaps you are in the market to buy a new vehicle.  It’s safe to say the older designs that are nearing the end of their production lives are often times the most heavily discounted by their manufacturers.  For example, I received thousands of dollars in savings when I purchased my Lincoln Aviator simply because they were no longer going to be manufacturing that vehicle. 

But with ‘used’ vehicles, is there ever really a better time to buy in order to reap those great savings?  Maybe not, but by knowing where to find the ‘best’ deals could be the answer.

Websites that help weed out known bargains are a great place to start your search.  Companies, such as Autosaver.com, use their trademarked technology called ‘Value Range Pricing’.  This site in particular, lets the consumer know if the vehicle they are looking to purchase is actually a good buy.  Be on the look-out, this new site is sure to take the auto industry by storm, and will also be the feature of a future blog all its own. With technology like this, we could experience Black Friday savings everyday in the auto industry!

http://www.AutoSaver.com

Fifty Shades of Green…How Much Is the Car You’re Buying Really Worth?

http://www.AutoSaver.com by Kimberly Ann

When purchasing a vehicle, most consumers are looking to get the most bang for their buck.  We search by model, mileage, year and some people want to have a certain color…but ultimately we are looking for the best car we can get within our budget.  And regardless of what our budget may be, we should always know how much the car we’re buying is really worth.  Let’s face it, the closer we can purchase a vehicle at ‘near wholesale pricing’, the less we lose when we turn around and sell that vehicle down the road.

There are numerous guides a consumer can use to validate the price a dealer is asking.  Understand, one guide is sure to produce a value different from another.  To name a few:

Kelley Blue Book

Edmunds

NADA Guides – National Auto Dealer’s Association

VMR

Parker’s (UK)

These guides list a vehicle’s base retail value, but in order to obtain a more accurate figure, you also need to factor in options, as well as, the vehicle’s mileage and con­dition.  Black Book provides more auction-centric (wholesale) data.  Originally a printed guide for dealers only, their pricing data is gathered at auto auctions across the country and is updated weekly.  So, the values you see on Black Book are ‘pre-auction’ values.   Sites like http://www.AutoSaver.com, a near wholesale, used vehicle website, use Black Book’s data for their pricing validation.

Comparison shopping is another great way to establish your vehicle’s value.  Get an accurate idea of what a certain make and model may be worth by checking to see what similar cars in your area are selling for.  Yes, area does play a factor in the value of a vehicle.  A vehicle driven in a warm climate year round yields a higher value than the vehicle driven in snow (and salt) 6 months out of the year.

Last but not least, something I definitely take into consideration when I car shop, is my time.  It is invaluable to me…I can’t put a price tag on it.  I have no desire to go to a car lot without my research in place.  We have all the tools we need, right at our fingertips.  The question is, how much time are we willing to spend researching all the guides, trying to determine what our car is really worth, not to mention the time we spend on-line shopping for that car?  Try to utilize the websites that incorporate both the shopping and value guides to create more of a one-stop-shopping experience.  Knowledge is power…and penny saved is a penny earned.

http://www.AutoSaver.com

It's Always About Price (Don't Let Them Fool You Into Thinking It's Not)

I was talking to an automotive consultant the other day and he was talking about what car shoppers are looking for these days. He said that you may be surprised to know that they're number one concern is not price, but reputation of the dealer and customer service. I agree with this to a point, but when I personally conduct a vehicle search online I don't use the key words "dealer with best reputation" or "best customer service", etc. I search for my ideal vehicle by make, model, year, and mileage first. Then, when I have found the best choices within my area I filter by "price" (lowest to highest).

Now, during this process I never once searched for the most reputable dealer, nor did I search by greatest customer service or most awards received. I want a straight forward and transparent price on the vehicles within my area. That's my primary concern (for the moment). Only after I find my top prospects (vehicles that I deem to be a good deal) will I contact the dealer. You see, I already know that I am getting a good deal, so there's no need to start the haggling process. No haggling means no stress, right? You're dang straight!

If the vehicle's history is clean and the price is the best possible price (validated by NADA or KBB), I already know going into the dealership that I am comfortable with the vehicle. I have verified that the price is competitive and mitigated most of my initial risk, therefore customer service, hot coffee, a nice waiting room and the wall of fame doesn't make any difference to me. I want to get in and get out.

E-Drive Autos provides the intelligent search tools that every consumer needs to make an informed decision on a vehicle BEFORE they step foot onto a car lot. Call me crazy, but this is very simple to me. Why does the industry complicate it?

Aaron Brinsko, VP of Sales
E-Drive Autos, LLC

Contact Aaron at aaron@edriveautos.com.

Why Do Dealers Still Operate From A Disadvantage When it Comes to Wholesaling? Part 2

I was speaking with a GM of a large franchise store yesterday and he was telling me that sales are up and cars are bringing premiums at dealer auction. He went on to say that his total wholesale losses have decreased significantly overall, but the dealership still inccurs thousands in depreciation losses every month.

So, I asked "what about gas prices"? He replied, yeah. We are having trouble moving our SUV inventory and even while overall auction prices are up, prices for fuel-sucking vehicles are actually down. What does this mean? Simple, if you use dollar-cost-averaging across his entire wholesale inventory, you will find that the money he's generating on clean late model, fuel-efficient vehicles is diminished by the lower prices brought at auction on the trucks and SUVs.

The moral of this story is: Markets are cyclical in nature, and although dealers are having success from one area of their business, chances are they may be suffering from hidden costs and depreciation associated with off-makes, odd-inventory and low margin trades.

John "Derek" White
EDrive Autos, LLC

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