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Used Car Sales to Keep Dealers Afloat During New Vehicle Sales Slide

Off-lease vehicles becoming affordable alternative to new.

by on Jun.29, 2017

New data shows that U.S. auto dealers are expected to handle the downturn in new car sales just fine by selling more used cars.

Despite a drop in the sales of new vehicles during the first half of 2017, American car dealerships are still expected to sell more cars and trucks this year thanks to robust demand for used vehicles, which indicates the auto industry is nowhere near slipping into a recession.

Jonathan Smoke, chief economist for Cox Automotive, which manages online publications such as Kelley Blue Book and Auto Trader as well as used-auction centers, said data already indicates that the shift is well underway. “Dealers are selling more vehicles, but the mix is changing and shifting from new to used.”

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Thanks to strong sales since the recession, the supply of appealing used vehicles has increased substantially helping dealers build their inventories of used vehicles, said Smoke, who added dealers are also willing to pay more for used vehicles to insure they have an adequate supply of used vehicles. (more…)

U.S. Auto Dealer Revenue, Employment Rose in 2016

Despite increases, profits remained flat.

by on Apr.14, 2017

NADA Chief Economist Steven Szakaly noted in the newly released NADA Data report U.S. dealers hired more people in 2016.

In 2016, new-car dealerships directly employed a record 1,131,900 workers, a 2.4% increase from the previous year, according to NADA Data 2016, the annual financial profile of new-car dealerships.

The economic impact of auto dealers was detailed in the new report from the National Automobile Dealers Association, which indicated employment, wages at U.S. new-car dealerships all continued to rise in 2016.

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“Total dealership employment has consistently risen every year since the Great Recession,” said NADA Chief Economist Steven Szakaly. “In addition, hundreds of thousands of other local jobs are dependent on dealerships,” he said.  (more…)

Dealers Keep New Car Prices Down, NADA Chair Says

Carlson says regulations, recalls add $600 to vehicle prices.

by on Oct.06, 2016

NADA Chairman Jeff Carlson told the Automotive Press Association in Detroit that federal regulation amounts to a $600 tax on a new car.

Federal regulation of everything from financing and fuel-economy to the handling of recalls amount to the equivalent of a tax on consumers, Jeff Carlson, chairman of the National Automobile Dealers Association, said during an appearance in Detroit.

Carlson is president of Glenwood Springs Ford and Glenwood Springs Subaru in Glenwood Springs, Colorado, and Summit Ford in Silverthorne, Colorado, said rules set down by the federal Consumer Financing Protection Bureau, one of the NADA’s top target, added up to $600 to the price of a new vehicle.

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“Washington doesn’t always understand the unintended consequences of their actions,” Carlson said during a meeting of the Automotive Press Association in Detroit. (more…)

Toyota Dealers Upgrading during Sales Slump

Will new, expensive buildings lead to higher satisfaction?

by on Oct.29, 2009

About one-third of Toyota's 1200 dealers have upgraded facilities.

About one-third of Toyota's 1200 dealers have upgraded facilities.

As other automakers reel under the pressure under the pressure of the recession, Toyota’s U.S. dealers are sinking more money into their showrooms and service bays.

As many buyers know since they provide the input, Toyota’s customer satisfaction ratings have never measured up to the company’s ratings for quality, reliability and durability. Critics and industry observers have suggested for a long time that the company’s customer handling skills need improvement.