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Making the most of auctions

Friday, March 19th, 2010

March is one of the busiest times for car dealers with the change in new vehicle registration. While the focus is often on new vehicles this is an important time for the used vehicle market too, of specific importance is the disposal of unwanted part exchanges vehicles that have arisen from new vehicle sales.
RMI Society of Motor Auctions Chairman, John Lane explains, ‘Part exchanges although essential to selling cars can prove costly if not dealt with efficiently. Used vehicle stock is expensive to keep both in stocking and display costs. Dealers therefore need a quick efficient route to dispose of these vehicles and to maximise their profit potential. Motor Auctions offer just such a route for dealers, and are particularly effective if dealers follow some basic ground rules’:-

1. Stock: Appraise your stock thoroughly before entering the vehicle into a sale and price the vehicle accordingly.

2. Preparation: Remove any minor imperfections to the body and trim of a vehicle, don’t give buyers any excuse to pass by.

3. Valeting: Ensure the vehicle is well presented; a spotless car with good bodywork will be more appealing than one that is dirty and in poor condition.

4. Documentation: Ensure that all the documentation for the vehicle is available. Having the documents such as V5s, MOT certificates and Service Records will significantly enhance the vehicle to a potential buyer who will be concerned about the vehicles providence.

5. Reserves: Ensure reserve prices are realistically set. Overpriced vehicles will not sell but do not under price either as that will loss precious profit.

6. Attend the sale: Being physically present at an auction when your stock is being sold helps you appraise the market and lets buyers know you are serious about the vehicles you are selling.

7. Unsold Stock: If a vehicle doesn’t sell, consider the reasons for that and make any minor adjustments to the vehicle’s appearance or reserves if necessary.

8. Profile: Ensure vehicles are entered in the right sales with similar specification and priced vehicles.

9. Keeping up with the market: It is essential to keep up-to-date with market conditions. To obtain the best prices for your vehicles you need to know what is selling and at what price.

10. Advice: Remember that auctions are run by auction experts. So if you are unsure about anything be it reserve prices, the right sale or vehicle preparation ask your auction house.

Motor Auctions offer an extremely efficient means for dealers to dispose of unwanted stock. They are run by experts who are knowledgeable about the auction market and help dealers achieve a good return on their stock.

Source:http://www.rmif.co.uk/index.php?op=news&id=29

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New Car Market Remains Strong With Scrappage

Saturday, March 13th, 2010

Scrappage continues to give a boost to the market with private buyers in particular returning to the showrooms. The decision to let the scheme continue until the end of March will continue to provide relief for sales in the first quarter of 2010.’ Commented RMI Director, Sue Robinson, representing new car dealers, in the wake of new car sales figures for February 2010 released today.

New car sales for February 2010 announced today, show that new cars sold in the month were 26.4 per cent up on February 2009*, the eighth consecutive monthly increase.

Latest Government figures show that 367,506* new vehicles have been ordered through the scrappage scheme since it went live. 19.6 per cent of February sales were part of the scrappage scheme.

Robinson continued, ‘The scrappage scheme has tempted private buyers back into the new and used car market. However, the business market is still fragile with many fleet and business operators delaying the replacement of vehicles, though the beginning of 2010 has seen some positive signs in this sector with the fleet market up 17 per cent.

‘The small car sector has done particularly well under the scrappage scheme and from s customers looking for value for money vehicles; this can be seen with marks such as Kia and Hyundai doing particularly well.

‘The continuing outlook for 2010 is set to be challenging with a level of uncertainty being caused by the imminent general election, it is likely that tax rises, public spending cuts and the end of the scrappage scheme in March will make consumers more cautious in their spending, certainly in the shorter term.’

Source:http://www.rmif.co.uk/index.php?op=news&id=27

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Dealer Confidence and Profit Ratings Improving

Saturday, March 13th, 2010

The scrappage scheme helped bring welcome relief to car dealers with the vast majority of networks – almost 80 per cent – feeling more confident about their profit margins. Dealers also reported an increase in satisfaction surrounding the relationship with their manufacturer despite the economic downturn,’ according to Sue Robinson, RMI Director, commenting on the latest RMI National Franchised Dealers Association Dealer Attitude Survey.

The Dealer Attitude Survey, published this week, shows green shoots emerging partly as a result of the highly successful scrappage scheme:

- 75 per cent of dealer networks reported a rise in satisfaction over their profit return, and as a result the dealer average increased significantly from 3.0 to 3.4 out of 5 from the summer 2009 survey.

- 66 per cent of the dealers surveyed reported an improved or sustained partnership with their manufacturer compared to the summer 2009 survey.

- Dealers reported a significant feeling of value for holding a franchise, averaging 7.2 out of a possible 10, up from 6.7 in the summer 2009 survey.

Robinson continued, ‘Most dealer networks have reported improved profitability, the scrappage scheme has played a key role in achieving this alongside the work done by franchised dealerships in cutting costs, and streamlining their business operations.

‘Unsurprisingly we’ve found that dealers were happier with manufacturers who have been more willing to collaborate with their dealer networks in setting sales targets and more ready to appreciate the difficulties faced by their networks in the current market.

‘At the time of survey there appeared to be a feeling of improved relationships and understanding for most dealers with their manufacturers. Despite continued political and economic uncertainty in the coming months the dealers surveyed seem reasonably positive about their businesses in the next six months.’

Source:http://www.rmif.co.uk/index.php?op=news&id=28

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GM Tests Show Vibe Brakes Can Stop Unintended Acceleration

Sunday, February 14th, 2010

General Motors has tested two Pontiac Vibe small SUVs and found the brakes stop the vehicle in case of unintended acceleration.

The 2009-10 Pontiac Vibe, a sister vehicle of the Toyota Matrix, is included in two Toyota recalls related to unintended acceleration, one for sticking accelerator pedals and one for possible floor mat entrapment. The Vibe was designed and engineered by Toyota and manufactured through August 2009 at New United Motor Manufacturing, Inc. (NUMMI), a joint venture between Toyota and GM.

“We ran the Vibe wide open at 60 miles an hour and the brakes were able to bring the vehicle to a safe stop within 169 meters, consistent with our internal requirement for brake performance.” said Martin Hogan, GM director of brake systems.

In the rare case of a sticking throttle, a driver should apply the brakes firmly and steadily until you come to a stop. Do not pump the brakes, which can deplete the available vacuum boost from the brake system.

Any customer who experiences any accelerator pedal issue should immediately park the vehicle, and have it towed to their GM dealer for an inspection.

GM and Toyota are determining how soon parts for a repair Toyota has identified will be available to GM dealers, where the Vibe repairs will be made. The Vibe braking tests were conducted by GM engineers on Saturday at the Milford Proving Grounds after several customers complained of sticking accelerator pedals following the Toyota recalls involving the Vibe were announced Jan. 21 and 27.

None of the complaints have resulted in a crash or injury.

Prior to the recall announcements, GM had not received any relevant customer complaints in the 2009-2010 Pontiac Vibe. Nor were there any complaints found in a search of U.S. and Canadian databases.

GM will communicate with the approximately 99,000 Vibe owners in the United States and Canada as soon as additional information about the recalls is received from Toyota.

Source: http://publish.media.gm.com/content/media/us/en/news/news_detail.brand_gm.html/content/Pages/news/us/en/2010/Feb/0201_vibe

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Mitsubishi Motors Reports January Sales

Wednesday, February 10th, 2010

 

Mitsubishi Motors North America (MMNA) today announced January 2010 sales of 4,170, a slight decrease (4 percent) from December sales.

“We were able to maintain our December sales momentum,” said Shinichi Kurihara, president and CEO of Mitsubishi Motors North America. Mitsubishi’s DecembMitsubishi Motors North America (MMNA) today announced January 2010 sales of 4,170, a slight decrease (4 percent) from December sales. “We were able to maintain our December sales momentum,” said Shinichi Kurihara, president and CEO of Mitsubishi Motors North America. Mitsubishi’s December sales showed a 49 percent increase from November. “We’re encouraged by the early sales pace of Outlander GT and are hopeful for improved results in February with the help of a more aggressive national television campaign,” Kurihara added. January highlights included: Galant sales were up 22 percent compared to January 2009 Endeavor sales were up 128 percent compared to January 2009 and up 145 percent compared to the prior month (December 2009). Outlander sales were virtually even with sales of January 2009. Mitsubishi Motors North America, Inc., (MMNA) is responsible for all manufacturing, finance, sales, and marketing operations for Mitsubishi Motors in the United States. MMNA sells coupes, convertibles, sedans, sport utility vehicles, and light trucks through a network of approximately 420 dealers. For more information, contact the Mitsubishi Motors News Bureau at (888) 560-6672 or visit media.mitsubishicars.com. er sales showed a 49 percent increase from November.

“We’re encouraged by the early sales pace of Outlander GT and are hopeful for improved results in February with the help of a more aggressive national television campaign,” Kurihara added.

January highlights included:

  • Galant sales were up 22 percent compared to January 2009
  • Endeavor sales were up 128 percent compared to January 2009 and up 145 percent compared to the prior month (December 2009).
  • Outlander sales were virtually even with sales of January 2009.

Mitsubishi Motors North America, Inc., (MMNA) is responsible for all manufacturing, finance, sales, and marketing operations for Mitsubishi Motors in the United States. MMNA sells coupes, convertibles, sedans, sport utility vehicles, and light trucks through a network of approximately 420 dealers. For more information, contact the Mitsubishi Motors News Bureau at (888) 560-6672 or visit media.mitsubishicars.com.

Source: http://media.mitsubishicars.com/releases/19959eec-1038-25ef-b1df-32234b688389

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