ADP Dealer Services Spinoff Now Listed on Nasdaq

BY: Admin

CDK Global Inc. was officially spun off from Automatic Data Processing Inc. on Tuesday, September 30, 2014. The new independent company begins trading as a member of the S&P MidCap 400 Index.

“This is a monumental day in our history and marks the next step of our journey,” said Steve Anenen, president and CEO of CDK Global. “There are many driving forces impacting this industry — consumers expecting an improved buying and service experience, and dealerships and manufacturers who see the value of innovative technology to improve productivity and profitability.

“As the global technology partner of choice, we are well positioned to provide ‘mission critical’ digital marketing and retail technology services to move this industry faster forward."

As a result of the spinoff, ADP shareholders received one share of CDK Global stock for every three shares of stock they held in ADP on Sept. 24, 2014. Approximately 160.6 million shares of CDK Global stock were distributed on Sept. 30, 2014, to ADP shareholders.

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ADP Dealer Services Spinoff Now Listed on Nasdaq
ADP Dealer Services Spinoff Now Listed on Nasdaq

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Industry Could Realize Best October Since 2004, Say Analysts

BY Admin

The October retail sales forecasts from J.D. Power and Kelly Blue Book are in, and they are predicting a solid sales month in what is traditionally the second weakest month of the year for car sales. More than 1.1 million cars are expected to be sold in October, a prediction that will mark the best October since 2004 if realized, J.D. Power noted.

This October is expected to be about 6% better than a year ago, which is great, KBB noted, considering that Labor Day deals in September and Black Friday deals in November typically keep consumers off dealer lots in October. The driver, the vehicle information site said, are incentives.

“One cause for concern is the rising levels of incentive spending in the industry,” said Alec Gutierrez, senior analyst for KBB. “Since inventory levels have remained consistent, this isn’t a red flag quite yet, but it does underline that the natural industry growth we’ve had in recent years is slowing.”

Both companies expect the industry SAAR for total light vehicle sales to hold at more than 16 .3 million units, with J.D. Power noting that growth in SUV sales has been a boost to the industry.

“The market is clearly seeing a second wave of SUV popularity that will likely dominate market share for the foreseeable future,” said Jeff Schuster, senior vice president of forecasting at LMC Automotive.

KBB noted that Fiat Chrysler enjoyed another strong month, with growth approaching 20% mostly on sales of the Jeep Cherokee. Without the popular SUV, KBB predicted that the company’s growth would have been significantly lower.

The popularity of compact SUV’s in particular has made it the fastest growing segment in the market cutting into sales of compact and mid-sized cars, according KBB. The firm also found that the light pickup truck market was growing as well.

“Big gains are expected from the Ram pickup and solid numbers should be reported for both the Chevrolet Silverado and GMC Sierra,” said Gutierrez.

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Industry Could Realize Best October Since 2004, Say Analysts
Industry Could Realize Best October Since 2004, Say Analysts

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Mich. Governor Signs ‘Anti-Tesla’ Bill

By Steven Martinez

Michigan Governor Rick Snyder signed into law on Tuesday legislation that adds tighter restrictions on direct-to-consumer vehicle sales. The move effectively bans Tesla Motors from selling vehicles in the state.

Introduced in May, House Bill 5606 originally focused on prohibiting auto manufacturers from dictating what fees a franchised dealer can charge customers. But thanks to a procedural loophole, state lawmakers were able to toss in a last-minute amendment without public comment or debate. And that amendment reinforces a ban on selling vehicles directly to consumers.

The “Tesla Motors Team” reacted the day after the state legislature approved the legislation on Oct. 15. The electric-car maker called the bill a “raw deal,” writing that the last-minute change created an “effective prohibition against Tesla operating in Michigan. The company added that the move was a continuation of the “anti-competitive behavior” the company faced in New Jersey and Missouri.

“By striking a single, but critical word from … the law governing franchise relations in Michigan, the dealers seek to force Tesla into a body of law solely intended to govern the relationship between a manufacturer and its associated dealers,” Tesla stated in its blog post.

Gov. Snyder, however, said Tesla misunderstood what the new law does.

“The bill does not, as some have claimed, prevent auto manufacturers from selling automobiles directly to consumers at retail in Michigan,” Snyder said in a press release. “This is already prohibited under Michigan law.”

The last-minute amendment deleted the word “its” from a sentence in the existing law. A press release from the Governor’s office said that the change was made to allow manufacturers who don’t have their own franchised dealers to sell through another manufacturer’s dealer network.

Snyder added that lawmakers should discuss the current business model to determine if it was good for the state’s consumers.

“We should always be willing to re-examine our business and regulatory practices with an eye toward improving the customer experience for our citizens and doing things in a more efficient and less costly fashion,” said Snyder.

General Motors issued a statement yesterday in support of the legislation, saying the new law would "provide stability and support for our dealers.”

"Further, it will ensure we compete under the same rules in the marketplace as other automobile manufacturers," GM stated.

Tesla officials could not be reached for comment.

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Mich. Governor Signs ‘Anti-Tesla’ Bill
Mich. Governor Signs ‘Anti-Tesla’ Bill

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3 Things to Consider When Selecting an Independent or Franchised Car Dealership

While shopping for a car, you can either buy from a franchised car dealership or used car dealership. The differences between the two are outlined below to help you make better car buying decisions.

Independent Dealers

Used car dealers consist of dealerships which are not affiliated with a new-car manufacturer. These dealerships usually own one or two used car dealerships with a promising work ethic. Some independent car dealers can have a large used car inventory, with generally no new vehicles. The following are things to consider while shopping at a used car dealership:

1. Price:  With no mandated pricing on their cars, independent dealerships can offer better deals on the price of their vehicles. If you are looking to a buy a low price car then shopping at an independent dealer will most likely have what you are searching for.
2. Personal Service: These dealerships are better known for their friendly customer service and lasting relationships with customers. As they compete with franchise car dealerships, they usually go an extra mile to earn your business. It is always a good idea to do a detailed search of the dealership on Internet to make sure they do not have negative feedback.
3. Car Repair Shop: Independent dealers often also have a repair shop, either connected to the dealership or in a close by vicinity. You can negotiate with them to get lower pricing for any repair that comes up in next few months. A repair shop also allows you to develop a relationship with mechanic to make sure you are not losing money on unnecessary repairs.

Franchised Car Dealership

Franchised dealers bring a lot to the table. If you are indecisive about whether you want a new or used vehicle, you can discuss this with your sales rep at the franchised dealership. As they have both types of cars on the lot, they can give you valuable advice on selecting new car or a new one. The following are things to consider when shopping at a franchised car dealership:

1. Up-to-date equipment: Franchise dealerships have particular rules and regulations that they must maintain in order to fulfill their contract with manufacturer. This includes having the latest equipment and special tools needed to service your car. 
2. Certified technicians: Service technicians are required to go through intensive training to become a certified technician or mechanic. To become certified, professionals must take a series of tests, in addition to having hands on experience. You can be certain that you vehicle is in good hands at a franchise dealership.
3. Balance of new and used vehicles: A franchise auto dealership often has more inventory than an independent dealer. If you are looking for a certified pre-owned (CPO) vehicle you will find a wide selection at a franchise dealership. CPOs are used cars that have been through inspection and a refurbishing process, as well as certified by the manufacturer. CPOs can also include an extended warranty and other additional benefits.

You can find both independent and franchised car dealerships within a short distance. Each dealership has their own benefits and based on above listed list of things to consider, you can select any dealership that meets your requirement. 

Resource:

If you're looking for the most reliable Car dealer in Kansas City then you should visit Northtowne Mazda. For more detail you should visit KcMazda.com.

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Ford, Carfax Expand Partnership in Certified Pre-Owned Sales

BY: DETROIT

Ford Motor Company and Carfax have expanded their partnership in the Ford and Lincoln Certified Pre-Owned (CPO) programs. Ford is continuing its commitment to provide Carfax Vehicle History Reports for free to buyers and sellers of certified Ford and Lincoln vehicles. In addition, all Ford and Lincoln CPO cars will now be listed on Carfax Used Car Listings.

Sales of certified Fords and Lincolns have surged more than 50% since the start of the relationship between Ford and Carfax, officials noted.

“We work hard to exceed the needs of our partners who make Carfax such an integral part of their programs and operations,” said Joe Koenig, vice president of Carfax. “Our relationship with Ford goes well beyond providing vehicle history. It’s about giving dealers the tools they need to help manage inventory risk, build consumer confidence, drive more customer traffic and increase revenue. Seeing the Ford and Lincoln CPO programs thrive also is further proof that Carfax helps dealers sell more cars faster. This partnership is clearly successful and we’re excited to continue building on that success.”

At the all-new Carfax.com, car shoppers will find Ford and Lincoln certified cars for sale that all come with a free Carfax report. Every certified Ford and Lincoln vehicle must have a Carfax report run by the dealer that qualifies for the Carfax Buyback Guarantee.

Including Ford and Lincoln, 38 manufacturer brand CPO programs currently use Carfax Reports to build more consumer confidence in their certified used cars.Thousands of Ford and Lincoln dealers have joined the Carfax Service Network. Participating dealers get free advertising on Carfax Reports and in the myCarfax app to help ensure more Ford and Lincoln cars are serviced by expert technicians, officials added.

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Ford, Carfax Expand Partnership in Certified Pre-Owned Sales
Ford, Carfax Expand Partnership in Certified Pre-Owned Sales

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Facebook Playing Bigger Role in Dealer Selection, Study Shows

BY: Admin

A survey of 2,000 consumers who purchased a vehicle in the last six months revealed that 91% of them used social media and review sites in their dealer-selection process. Conducted by Digital Air Strike, the study also showed that 75% of respondent found the Internet to be the best source for research, surpassing all other traditional advertising and marketing mediums.

Star ratings also played a critical role in dealership selection, with survey results showing that 83 percent of car buyers rely on such ratings — even if they did not read the actual reviews (up from 76% in 2013). Additionally, 45% of respondents considered review sites as the most helpful medium, raking them “the most helpful or as helpful as” dealer-owned websites, which only 19% of those surveyed said were most helpful.

Mobile technologies are also playing a bigger role, with 56% of car buyers surveyed indicating that they used a mobile device to search and/or read reviews about a dealership.

Additionally, the study found that 74% of respondent would drive 20-60 miles to visit a dealership with good reviews, up from 63% one year ago.

As for the leading review sites, Cars.com and Edmunds.com led the way, while Facebook jumped into the list of Top 5 dealer review sites. Another influential site is MerchantCircle, which landed in the Top 10 review site list for the first time.

As for mobile apps, Cars.com ranked just below Google as the top mobile app used by car buyers to read reviews.

The study also offered additional insights on new social media tools like Facebook’s “click to purchase” feature, which 48% of respondents said they’d use for automotive purchases and to access discounts. Additionally, 33% of buyers said they have clicked on a Facebook ad on a mobile device, while 75% said they are more likely to trust a review posted by a friend on Facebook vs. a review posted on another site from an unknown consumer.

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Facebook Playing Bigger Role in Dealer Selection, Study Shows
Facebook Playing Bigger Role in Dealer Selection, Study Shows

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Auto/Mate Integrates With Nissan’s Dealer System

BY: Admin

Auto/Mate’s dealership management system is now fully integrated with Nissan’s dealer communication system, the company announced. All Nissan dealers using Auto/Mate’s DMS are now able to communicate with their manufacturer for parts, service, sales and accounting.

Nissan’s dealership communication system is an online management suite through which the factory and dealers exchange data on sales, inventory, service, parts, warranty claims, sales and other operating functions.

Integration with Auto/Mate adds key data related to the fixed ops, F&I sales and accounting departments.

 “We are pleased to be one of the DMS vendors approved by Nissan,” said Mike Esposito, president and CEO of Auto/Mate. “Nissan dealers can benefit from having more DMS vendors to choose from, as well as the ability to choose virtually any third-party vendor using open standards for integration."

Auto/Mate provides dealership management system software to retail automotive dealers. It is in use by more than 1,000 auto dealers nationwide, according to Auto/Mate officials.

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Auto/Mate Integrates With Nissan’s Dealer System
Auto/Mate Integrates With Nissan’s Dealer System

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Why You Should Finance Your New or Used Car

When purchasing a new car, you generally have 3 payment options: financing, leasing and paying in cash. Financing is the most common option because it is generally the most practical, in a financial sense.

Paying in Cash

Paying in cash may eliminate monthly payments and interest costs, but it also takes a large portion of savings, and it may leave you in a financially constricted situation.

Leasing a Car

Leasing a car is essentially renting a car. You make monthly payments on the vehicle, but you never really own the vehicle. Car leases are contracted through a specific period of time and can be obtained through banks, credit unions and auto dealers.  The monthly payments you make when you lease a car will be much lower than if you were to purchase a vehicle however, there are some major downsides to leasing, including the following:

• More expensive in the long run: When the lease contract is up you either have to lease a new car or purchase one.  When you finance a vehicle you will be payment-free after you pay off the loans. 
• Limited Mileage: A car’s mileage affects the resale value, and as a result leases have an annual mileage limit, approximately 10,000 to 15,000 miles per year.  If you exceed the annual mileage limit you will have to pay a hefty penalty.
• Higher Cost of Insurance: If your leased car is stolen or in an accident, basic insurance will not likely cover the whole cost of the vehicle, and you will be stuck paying out of pocket. To avoid this, GAP insurance is highly recommended. An expense you wouldn’t need if you purchased your vehicle through financing.

Financing Your Car

The best option for a majority of all Americans is to finance your vehicle.  It makes the most financial sense. Different from a lease, once you have completed all your monthly payments over a specific period of time, you own the car permanently.  

The great thing about financing a car is that you have many options for finding the payment plan that works best for you.  You can choose the term of your lease, which is the period of time you will be making monthly payments.  Keep in mind that a longer term may mean lower monthly payments, but will result in a higher total cost. 

Resource:

If you're looking for the reliable new & used car auto financing in KC then you should visit Northtowne Mazda. For more detail visit KcMazda.com.

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Used or Pre-Owned Cars from Kansas City Car Dealers

Are you interested in buying a certified pre-owned or used car from a car dealership, but you’re not sure of the difference between the two?  To help you make a more informed decision, let us set the facts straight.
Certified Pre-owned vehicle
A certified pre-owned car is, in fact, a type of used car, but it is a fairly late model (usually less than 5 years old) which endures a rigorous inspection process.  A vehicle can either be certified through the manufacturer or through a dealership. A manufacturer’s certification is more trustworthy and is used on a national level. Manufacturer certified vehicles also go through more testing and often times offer benefits, such as extended warranties, loaner vehicles and roadside assistance.
Most car dealers keep their current inventory updated on their website. The site should clarify which cars are certified pre-owned and which are not. If you feel like you need more information, contact the dealership.

Overall Benefits of Certified Pre-owned Vehicles

• Have already been hit with the largest amount of depreciation
• Less expensive than buying new
• Offer roadside assistance that lasts the life of the extended warranty
• Rigorous inspection and reconditioning process
• Peace of mind that vehicle has been thoroughly inspected by manufacturer

Used Cars 

It is not rocket science to figure out what a “used car” is. So why would people choose just a regular used car over a certified pre-owned vehicle? Used cars are often sold with extended warranties similar to certified pre-owned vehicles. However, CPOs are more expensive and are fairly late models. 

If you choose to purchase a basic used car be sure to get the car’s VIN number and run a vehicle history report to ensure you avoid purchasing a lemon. The vehicle history report will tell you about any accidents, how many owners the vehicle has had and more. It is also wise to ask your family members, friends or coworkers, who have experience with a particular dealership, for any feedback they may have.

Overall Benefits of Used Cars

• Lower registration fees
• Lower price of vehicle
• No unneccessary or useless extra features
• Cheaper insurance

In the end, choosing a Certified Pre-owned Vehicle or a basic used car will mostly depend upon how much you are willing to spend and your need for peace of mind.  So weigh the advantages and disadvantages that cater best to your needs, when deciding which vehicle to purchase. 

The Kansas City area has numerous car dealerships that offer both Certified Pre-owned Vehicles and basic used cars.

Resource: 

Are you looking for used & pre-owned car in KC then you should visit Northtowne Mazda. For more detail visit KcMazda.com.

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Used-car prices fall as ending leases fill dealer lots

BY: Michael Martinez

It's a good time to buy a used car.

Millions of previously owned cars and trucks are flooding the market as leases expire and customers look to upgrade. Prices have fallen since the start of the summer, and inventories are climbing.

It's a delayed reaction to a recovering auto industry: When credit loosened two or three years ago, it became easier to lease a car. Now those leases are coming to an end, and car buyers are flocking to dealerships to turn in their now-used vehicles.

While analysts predict supply levels are still years away from pre-recession numbers, they say the used-car market should continue to rebound through the remainder of the year and into 2015.

"During the recession, it almost cost as much to get a used car as it did to get a new car, but now the market is going back to historical norms and it's going to be better every month," said Larry Dominique, vice president of California-based TrueCar, an automotive research site. "From 2008 to 2012, there was a significant growth in the number of leased cars and now they're all coming back to the market. As supply is increasing, auction values are dropping ... making used cars more affordable."

The average used car sold at a franchised auto dealership for $10,963 in September, down about 2.1 percent from a year ago, according to CNW Research. Although the September average is 0.7 percent higher than August, prices had fallen every month before that since May.

Georgia-based Manheim Inc., which tracks the used-car market, says prices are falling back to normal levels after a long period of "exceptionally strong pricing."

Concurrently, used-car inventory has risen for the past three straight months; it was up 1.5 percent in September compared to the same month a year ago, according to TrueCar. About 9.76 million used cars were available in the U.S. in September, compared to about 9.62 million last September.

The number of certified pre-owned vehicles — those inspected and deemed worthy to resell by manufacturers — are on the rise, too. AutoTrader.com said the supply of those has increased 6 percent in the past six months.

"The last quarter of 2014 will be a great time to get a good deal on a used or certified pre-owned vehicle," said Michelle Krebs, senior analyst at auto research site AutoTrader.com.

Mark Tracey, used vehicle manager at Huntington Ford in Rochester Hills, said he's seen a better supply of used cars on his lot, and that prices "have been slipping."

"We're finding more trade-ins," he said. "Two or three years ago, we struggled to get cars in. Now, we're getting lots. That's helping."

Lower prices and better supply have led to an increase in used-car sales nationwide: Through September, used-car sales were up 3 percent over the same period last year to 28,805,863, according to TrueCar.

During and after the recession, used-car prices soared and inventory dropped as fewer people bought new cars, which eventually led to fewer used cars being turned in. Now, the market is shifting back on the heels of robust new-vehicle sales.

Automakers sold 1.2 million new cars and trucks in September, a 9.4 percent increase from a year ago, and analysts have predicted the annual rate of sales could reach 17 million vehicles in the coming years. Sales have been steadily rising since 2010 after falling to 10.6 million in 2009. Last year, sales were 15.9 million.

The used-car trend does have downsides, industry analysts say. Because supply is high, selling a used car is harder than in years past. Manufacturers will also start charging higher lease rates, since resale values will drop because of the the high inventory and low prices.

Analysts are split on if the used vehicle market will affect the strong sale of new cars and trucks.

TrueCar's Dominique said the high inventories could "add a level of challenge" to new vehicle sales, but AutoTrader.com's Krebs said it could actually help.

"It opens up the markets to more people," she said. "A lot of people can't afford to buy a new car. Expanded inventory of used cars means more people can get new transportation."

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Used-car prices fall as ending leases fill dealer lots
Used-car prices fall as ending leases fill dealer lots

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Industry Could Realize Best September Since 2007, Reports Say

By: Admin

Sales projections for September have new-vehicle sales up as much as 9.7% compared to the same period last year, according to forecasts from TrueCar and J.D. Power. More than 1.2 million new light-vehicles will be sold in September, which TrueCar is calling the highest level in seven years.

“We expect another strong month for the industry with the best September since 2007,” said John Krafcik, president of TrueCar. “Incentive spending has tapered off from August, a month where we found increases attributable to shifts in segment mix, model-year clearance and holiday events.”

J.D. Power, which released its September sales predictions last week, put the average new-vehicle retail transaction price for the month at $30,100, which would be the highest ever for the month and $450 above September 2013's average.

“While the strong sales pace is an indicator of the health of the industry, it is being complemented by record transaction prices for the month of September,” said John Humphrey, senior vice president of global automotive practice at J.D. Power.

Kia is projected to have the strongest rebound from 2013 with a 23.7% increase in sales compared to last September, according to TrueCar. GM has the highest projected number of sales at 225,000 vehicles.

Average incentive spending by manufacturers was $2,801 per car, 6.2% lower than it was in August but still at healthy levels, said Krafcik.

TrueCar also projects more than three million used-cars will be sold by dealerships and private parties in September, a slightly lower number than last year. Both TrueCar and J.D. Power are forecasting 16.4 million new light-vehicle sales for 2014.

Edmunds also released their September forecast showing similar projected numbers. Analysts with the vehicle information site noted that as good as the numbers have been, buyers had responded to more low financing deals and lease offers, which bodes well for new-car sales going forward.

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Industry Could Realize Best September Since 2007, Reports Say
Industry Could Realize Best September Since 2007, Reports Say

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New Online Tool Triggers Real-Time Leads for Dealerships

BY: Admin

AutoLoop's new Instant Online Leads feature brings real-time alerts to sales personnel when prospective buyers are searching for vehicles online.

Alerts are triggered by a customized form that online shoppers can fill out requesting follow-up information through a dealership’s website.

The feature was added to AutoLoop’s Essentials marketing platform which is an online sales tool that offers flexible marketing strategies that can be tailored to meet prospective customer’s interests.

“As more and more people turn to the internet for car shopping, dealers need the ability to engage them immediately,” said Matt Rodeghero, AutoLoop’s Chief Product Officer. “They are a dealership’s most viable customers because they’ve already expressed interest in a specific vehicle online.”

When a potential customer submits a request through the online form, Instant Online Leads notifies a sales representative by email and phone. If a specific sales rep is unavailable, the system will automatically contact the next one on the list.

The feature allows sales reps to quickly follow-up with customers who have already expressed an interest in buying a car, preventing the loss of a potential sale, according to AutoLoop.

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New Online Tool Triggers Real-Time Leads for Dealerships
New Online Tool Triggers Real-Time Leads for Dealerships

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AutoNation to buy 4 luxury dealerships in Seattle market

by Amy Wilson

AutoNation Inc. is expanding its footprint in the Pacific Northwest by buying four luxury-brand dealerships in the Seattle market that generate more than $350 million in annual revenue.

AutoNation, the country’s largest dealership group, announced today that it has signed agreements to buy Mercedes-Benz, Audi, Porsche and Volvo stores in Bellevue, Wash., from Barrier Motors Auto Group. Together, the stores are on track to sell more than 5,500 new and used vehicles and generate $355 million in revenue in 2014. The deal is expected to close in the fourth quarter after clearing manufacturer approvals and satisfying other customary terms and conditions.

The transaction will give AutoNation 22 franchises in Washington state, including 13 in the Seattle metro area.

“We are pleased to be adding the Barrier Audi, Porsche, Mercedes-Benz and Volvo stores to our Seattle-Bellevue platform,” AutoNation CEO Mike Jackson said in a statement. “The Barrier stores have a great reputation in the market. The franchises are in attractive automotive retail locations, and the facilities are first class.”

AutoNation already has a BMW store in the Seattle area. The additional luxury brands “will greatly enhance our brand mix” in the market, Jackson added. “The product cycles from Audi, Mercedes-Benz and Porsche are some of the most exciting in the industry.”

About 300 employees at the Barrier store will join AutoNation.

'Cultural fit'

Seller Jimmy Barrier credited those employees for their role in building the dealership group. Ensuring job security for them was a top priority for Barrier when he decided two years ago to pursue selling the dealerships. He recalled bringing in his own top managers when he acquired stores in the past.

“And I didn’t want that to happen to my people. I have great people here,” said Barrier, 72, who will retire from the auto business when the sale is complete.

Nearly 100 Barrier employees have been with the company for more than 10 years, and some of them for almost 30. Barrier opened the Mercedes-Benz store in Bellevue in 1985 after moving from his home town in Charlotte, N.C., where he had been a partner in a dealership.

With AutoNation, “the cultural fit is great,” Barrier told Automotive News. “They take care of their people.”

The deal is AutoNation’s second acquisition of 2014 and follows its purchase of Roundtree Chrysler-Dodge-Jeep-Ram in Mobile, Ala., earlier this summer. It is AutoNation’s biggest deal in terms of annual revenue since December 2012 when the company purchased five stores from Boardwalk Auto Group in Dallas.

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AutoNation to buy 4 luxury dealerships in Seattle market
AutoNation to buy 4 luxury dealerships in Seattle market

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