Category: Dealer News

By on April 2, 2018

All-New Mitsubishi Eclipse Cross Compact SUV - Image: Mitsubishi

Now part of an alliance with cash and platforms to toss around, Mitsubishi’s growing bolder in its quest to remind buyers that it’s not about to disappear from the American automotive landscape. Buyers, of course, are already helping the brand regain its footing. February’s U.S. sales were the highest since the heady and ominous year of 2007 (up 18.8 percent, year over year).

Through the end of February, U.S. sales are up 23.4 percent over the same period in 2017.

Having crawled out of the five-figure sales number nightmare that plagued the brand over the past decade, Mitsubishi dealers met in Las Vegas recently to discuss the near future. Some requests were granted, but a long-standing demand went unfulfilled. Read More >

By on March 22, 2018

Sales of the Mini brand have been in a downward spiral since 2013 and U.S. dealerships want to know what expect in the future. Any prospects for the nameplate to grow into a volume brand appears to have been thrown out the window by BMW Group, and it’s now looking like it could shift into electrification.

Dealers, however, don’t know this for sure, and hope to gain clarity on the matter as the domestic market dives deeper into its appreciation for trucks, SUVs, and crossovers.

“I don’t think the dealers have a very clear vision of where the car line is going long term,” explained Jason Willis, member of the Mini National Dealer Council. “There is a lot of pride on being a small-car performance company, so my guess is we will continue to be a small-car company. But as far as electric and how we fit in, we’re still waiting to hear that plan.” Read More >

By on March 19, 2018

2017 Nissan Titan Crew Cab - Image: Nissan

To think of the Nissan brand is to think of nameplates like “Sentra,” Rogue,” and, just maybe, “Pathfinder.” That’s traditionally as truck-like as a non-gearhead’s thoughts get after hearing the automaker’s name. As it continues to position itself as a serious truck maker and Detroit Three competitor, Nissan knows this needs to change.

While the little Frontier has graced our landscape for two decades, the process of purchasing one usually comes down to looking at the window sticker, asking if it comes in a cheaper version, then perusing a very basic list of features. Little different than buying (or selling) a car or crossover. That works for the simple Frontier, which sells great despite its advanced age, but it doesn’t work for would-be Titan buyers who stop in at a Nissan dealer after kicking the tires over at the Ford shop.

With this in mind, Nissan’s now moving its Titan-boosting efforts into the showroom. Read More >

By on March 5, 2018

keys car sale

You’ve just taken your vehicle to the dealership for servicing and find yourself in need of a loaner car. Fortunately, the vehicle is still under warranty and you should be able to get into something without too much trouble. This does not mean loaner vehicles aren’t a major stressor for the dealerships providing them, and it doesn’t guarantee you a car.

Small dealers likely won’t have a surplus of such vehicles and may attempt to bar you from access, especially if you didn’t originally purchase your automobile from that particular store. Luxury brands are more likely to fork over a loaner to keep customers happy. Of course, they want something representative of the brand, not some random hunk of junk sitting idle on the lot. Maintaining a loaner fleet is tedious and opens dealers to all manner of additional expenses they’d rather not have to deal with. It’s expensive and people tend to bring back the vehicles on their own time, not when the dealer needs it for someone else.

So what’s a high-end automaker to do when a customer needs a replacement vehicle while theirs is in the shop? Think laterally. It turns out there’s a multitude of loaner alternatives currently being vetted by dealers, some of which don’t involve providing a replacement vehicle at all.  Read More >

By on February 28, 2018

News broke earlier this week of a Ferrari dealer embroiled in a lawsuit after a salesman accused the company of authorizing the use of devices that roll back vehicle odometers. Despite being a great way to improve the valuation of a used car, the practice is generally frowned upon — our best guess is because it’s super shady and totally illegal.

However, it was unclear if the issue revolved around one grubby dealership in Palm Beach or a systemic problem that included the manufacturer. The DEIS Diagnostics System that made the shenanigans possible does require online authorization from Ferrari corporate offices. But it could be that someone at home base didn’t know the extent of what the tool was actually being used for.

Unfortunately, they did. This week, details emerged from the case files of Robert “Bud” Root’s lawsuit against New Country Motor Cars. Back in April of 2017, Ferrari issued a memo to the dealership that can best be paraphrased as “cut it out.”  Read More >

By on February 24, 2018

Bentley Continental GT Supersports

After hitting it big with the Fab Four, George Harrison wrote the scathing song Taxman in protest of the British government’s “Super Tax” on high-income earners. At the time, the boys faced a 95 percent tax on their earnings (“There’s one for you, nineteen for me”), and Harrison reportedly did everything he could to offshore his wealth.

Britain’s dismal weather wasn’t the only reason rock musicians fled the country during this period.

In beautiful British Columbia, a mountain- and wine-filled area north of Seattle, the provincial government’s recent budget has some auto dealers steaming mad and worried their customers will hit the road in search of deal. The province’s New Democratic Party government, elected last year, plans to levy a 25 percent tax on the purchase of very high-end vehicles, with lesser models facing a 20-percent markup. However, many dealers wonder where the law of diminishing returns comes into play. Read More >

By on February 20, 2018

https://www.flickr.com/photos/autohistorian/25516489743/

For over four decades, Joe Girard has held the Guinness World Record for the most automotive sales in a single year. The 89-year-old retiree is so proud of his achievement that his own website proclaims him as the greatest retail salesman in history while simultaneously urging you to purchase his sales training books, DVDs, and audio CDs. However, he appears to have been trumped by a Cadillac and Chevrolet salesman from Dearborn, Michigan.

Girard is having none of that and has decided to challenge the validity of the new record. “This guy claims he beat my record of 1,425 new cars that I sold in 1973,” he stated. “What I did immediately, I called my attorney.” Read More >

By on February 13, 2018

cars dealer dealership, Image: HappyAlex/Bigstock

While sales numbers are a decent metric for assessing volume, they don’t give an accurate representation of what’s actually happening at the dealership. Instead, the figure represents the number of models an automaker was able to move from the factory. Theoretically, a manufacturer could load up a bunch of trucks at the end of the month and count them as “sold” to bolster volume — whether or not real people actually bought them.

Dealer throughput is better for assessing the current consumer climate. But we’re sure you won’t be surprised to hear that it’s cold and only expected to get colder. U.S. dealership throughput, the average number of new-vehicle sales per dealership, is expected to slip 2.9 percent this year. That equates to a mean of 920 vehicles in 2018, down from 947 in 2017. Read More >

By on February 8, 2018

Dartmouth Dodge tweets

Late last year, I selected Jeep’s JL Wrangler as an Ace of Base once pricing for the snazzy new off-road rig was freshly announced.

That was 43 days ago, at which point I theorized that Wrangler shoppers would likely need to be weary of dealer bait-and-switch tactics, as both the new JL and the old JK are 2018 models. Specifically, I said:

Readers can be assured, then, of hearing hyper-caffeinated sales staff blaring in radio ads about ZOMG GREAT DEALZ ON 2018 WRANGLERS – only for frustrated shoppers to discover they are actually talking about the lame-duck Jeep and not the shiny new off-roader.

Well, that didn’t take long.

Read More >

By on February 6, 2018

2018 Genesis G70 lineup - Image: Genesis

Late last month, Hyundai Motor America sent messages to dealers that announced the formation of an independent Genesis dealer network. The plan was to further separate the luxury brand from the rest of the company’s automotive fare by creating standalone dealerships.

While great for the brand’s image, the automaker’s strategy only calls for 100 initial locations. That’s a problem, because there are roughly 350 dealers that are currently eligible to sell both.

This hasn’t gone over well with Hyundai stores currently selling Genesis models right next to their more pedestrian inventory. Dealers have been offered compensation if they don’t make the cut, but plenty of them aren’t interested. They don’t want the money, they want the cars.  Read More >

By on January 31, 2018

Genesis G70

Hyundai Motor America and its U.S. Genesis division sent messages to Hyundai dealers this week, alerting them to the formation of an independent Genesis dealer network. Hyundai’s recently created luxury marque wants space between it and its value-focused sister division, and that means the need for standalone stores.

Shared showrooms simply won’t cut it anymore.

Right now, Genesis customers in the United States can purchase models at roughly 350 Hyundai dealers, but not for long. The plan calls for just 100 standalone stores as a starting point. If you’re a Hyundai dealer with dreams of selling a higher class of vehicles, this is your opportunity — but your chances of being selected might not be as high as those dealers already selling the brand. Read More >

By on January 22, 2018

GAC GS8

Chinese car brand Guangzhou Automobile Group’s showing at the North American International Auto Show made it pretty clear that the manufacturer wants to get into the U.S. market. But, with its earlier deadlines to do so having gone unmet, there is skepticism that it won’t happen by 2019. Is it really possible?

Well, sure, anything is possible. But GAC has a laundry list of obstacles to overcome if it wants to sell cars to Americans in earnest and the clock is ticking. For starters, politicians are starting to get a little testy when it comes to Chinese trade policies, and GAC now finds itself as a focal point on the issue. More importantly, the brand needs a clear-cut path to victory — and we’ve yet to hear one.  Read More >

By on December 20, 2017

used cars used car lot

It’s among the most prolific stereotypes of the automotive world. The shady used car salesman. Often pictured standing next to an overvalued Kia Sephia (a “smokin’ deal!”) while wearing a loud sport coat and white belt, the specter of these fly-by-night fraudsters have plagued reputable dealers for decades.

In Oshawa, Ontario, a city best known for housing General Motors’ Canadian headquarters and a former TTAC managing editor, one such criminal just met his fate. How sweet it must be for the poor buyer he swindled. Read More >

By on December 18, 2017

Lincoln Experience Center OC

If affluent people like one thing, it’s large stores offering heaps of customer service and absolutely nothing to sell. You know the sort of shops I’m referencing. There’s a doorman, a leather couch, and someone who brings you coffee while you browse an inventory consisting of half-a-dozen ludicrously overpriced designer jackets.

A number of premium automotive brands have recently seized on this concept. There are already a handful of luxury brands with physical locations in cities harboring a wealth-intensive populace that offer an ambiance-intensive experience. Not to be outdone, Lincoln has taken that theory the full mile in Newport Beach, California.

While technically a dealership, the Lincoln Experience Center doesn’t sell anything. Instead, it provides patrons with a place to relax and muse about future ownership. There’s a cafe offering complementary coffee, tea, and infused water. Not thirsty? The site also has a “story wall” that provides a rotating collection of artifacts, art, and fashion that somehow relates to the brand. I even found out that they’ll wrap your holiday gifts on December 23rd if you’re in the area. But if you want to buy a car, you’ll have to look elsewhere.  Read More >

By on December 12, 2017

2018 Chevrolet Bolt - Image: Chevrolet

You’ve decided to take the plunge. To lay down significant cash for a personal vehicle that burns no gasoline and isn’t a bicycle. Unlike the plethora of dino juice-sipping models competing for your attention, your choice of electric vehicles is still modest, albeit growing, and comes with a list of ownership concerns never mentioned around traditional cars.

Range, charging times, home connections, and the impact of temperature on the battery pack (and its longevity) are just some of the questions a salesman might be asked about. Pricing is easy.

This past fall, research firm Ipsos RDA Automotive sent secret shoppers into 141 EV-selling dealerships in the U.S., where the spies feigned interest in purchasing one of 11 fully electric models. The experience was a wildly mixed bag. It’s not entirely surprising, but in many showrooms dominated by gas-powered cars and SUVs, the sale the dealer employee attempted to close was not for the EV the secret shopper came in to buy.  Read More >

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