While the Cash for Clunkers (C4C) program did wonders to the dealer psyche, at least one market research firm sees some troubling signs in its aftermath.
Auto loan approvals improved in July for the prime and near prime markets, but shoppers in the subprime market continued their struggle to get approvals by conventional means, according to CNW Research.
An influx of new, independent dealerships could help used-car sales reach four million units in 2009, according to CNW Research.
Congress’ paring down of the Cash for Clunkers legislation and the expected one-month delay in its launch will cost the industry “dearly,” said CNW Research.
While the national sales numbers are daunting, a regional look at the automotive retail environment tells a different story, CNW Research revealed in its year-over-year comparison of four used-vehicle markets — New York, New Orleans, Phoenix and Los Angeles — for the month of May.
Despite sales being off by nearly 40 percent from the first three months of last year, credit-application rejections increased 329 percent from the same period last year, according to CNW Research.
I was asked at the magazine’s September F&I Conference and Expo when I thought this mess we’re in would turn around. My response was, “Ask me again this time next year.”
Nothing could describe the month of July better than a headline I read in CNW Market Research’s July 16 newsletter. It read: “Time to Panic: Industry Pushes Into Auto DefCon4.” I wonder what the headline would have read if the newsletter was released nine days later.
I was on the F&I Forum the other day when I came across a topic post titled, “A Brave New Finance World.” And I have to tell you, after reading it I had to shake my head in disgust.
So much has been made about the time a customer spends at a dealership buying a vehicle. I understand the reasoning. Give customers too much time and you risk them having second thoughts.
media brand
The secure and easy all-access connection to your content.
Bookmarked content can then be accessed anytime on all of your logged in devices!
Already a member? Log In