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NADA Aims to Help Dealers Navigate New Complexity of Auto Retail, Says 2020 Chair Ricart Automotive Group has “embraced” consumer demands for a smoother car-buying process. And that includes a more digitalized purchasing process, as Ricart has participated in fintech company AutoFi’s Express Checkout program, which facilitates online car sales. It was one of Express Checkout’s delta test dealers back in 2017. But that doesn’t discount the importance of the dealership visit, says the group’s president and chief executive officer Rhett Ricart. Source: Auto Remarketing
Do Subprime Auto Loans Threaten the U.S. Economy? With partisan divisions as deep as ever, both sides can agree on one thing: Everybody wants to avoid another financial crisis. And forecasters have recently identified subprime auto loans as an existential threat to the economy. The headlines are eye-catching and scary: “A $45,000 Loan for a $27,000 Ride: More Borrowers Are Going Underwater on Car Loans,” “Underwater: Consumers Are Treating Cars A Lot Like Houses During The Subprime Mortgage Crisis,” and more of the same. But is it true? Are subprime auto loans the new financial cancer threatening households and the economy, much like the subprime mortgage crisis did in 2007? No. Source: Real Clear Policy
Nissan Dealers Sour on Selling New Nissan's well-intentioned tweaks to its controversial stair-step program last year appear to be backfiring. Some of the brand's U.S. retailers say they are walking away from the sales incentive program after Nissan decoupled some bonus money from hitting volume-based targets. And worse, the diminished pool of incentive support is making it harder for many Nissan retailers to turn a profit. Source: Automotive News
N.J. Dealer Association Sues Ford, Lincoln Over Standalone Store Program The New Jersey Coalition of Automotive Retailers is suing Ford Motor Co. and its Lincoln luxury brand over what it says are unfair discounts for certain retailers who comply with a commitment program requiring standalone showrooms. The lawsuit, filed Friday in New Jersey State Superior Court, alleges that the program – which Lincoln reworked last year in an attempt to appease unhappy dealers – would create an illegal two-tier pricing program. Dealers who uncouple their Ford store and build standalone Lincoln showrooms are eligible for up to 5.75 percent in potential discounts per vehicle, the suit says, while those who do not participate would not receive the financial reward. Source: Automotive News
Lincoln Bests BMW, Audi and Mercedes-Benz in Residuals Lincoln Motor Co.'s residual values have surpassed those of the three biggest German luxury makes, a significant milestone born from a patient, consistent product strategy and an injection of analytics into sales and marketing operations. According to figures from Cox Automotive, Lincoln's residual values at 36 months topped those of BMW, Audi and Mercedes-Benz in January. Since 2018, Lincoln's residuals have consistently beaten BMW — the nation's top-selling luxury brand — and often have exceeded or been in line with Audi and Mercedes. Source: Automotive News
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