As vehicle sales slow around the world, automobile manufacturers are turning to the United States low interest rates and climbing consumer confidence to sustain this years sales. This is especially evident at this years North American International Auto Show in Detroit as luxury automobile manufacturers show new models aimed specifically at US consumers. (more…)
Posts Tagged ‘car sales’
As Sales Slow Auto Manufacturers Turn To U.S. Consumers
Friday, January 25th, 2013Auto Financing Scam
Friday, November 23rd, 2012
In 2011, the Federal Trade Commission (FTC) held a series of discussions to explore corrupt practices in the automobile lending market. One abuse that seemed to be particularly prevalent was the “yo-yo scam”. Reports showed that consumer’s dealing with auto finance problems experienced a yo-yo scam approximately 30 percent of the time. (more…)
Chevrolet Offers New Car Refund
Thursday, July 12th, 2012General Motors (GM) new marketing plan aimed at clearing out remaining inventory of Chevrolet vehicles, will allow customers to return their vehicle for a refund if they are not satisfied with their purchase. Chevrolet’s “Love It or Return It” offer will allow customers of any new 2012 and 2013 model year vehicles, to a full refund as long as there is fewer than 4,000 miles and the customer has driven the vehicle for at least 30 days.
Buyers who choose to return their vehicle will get all their money back, including sales tax. Unfortunately, expenses such as any additional taxes, licensing, registration and extras such as extended warranties will still have to be paid by the customer. GM hopes the plan will encourage customers to give Chevrolet vehicles a try, winning back some of the market share lost to import oriented markets. The promotion will be offered until Sept. 4, 2012.
Getting The Best Deal On Your New Car
Monday, February 6th, 2012For many buying a new vehicle can be a daunting task, and with dealers selling vehicles at record high prices, the average consumer needs to do their research in order to get the best price. With the internet, a little research, and some luck, you should be able to find the vehicle that suits your needs at a price you can afford. Edmunds.com, for example, offers services that give true market values, predicts pricing trends, and offers calculators that let consumers do their research before setting foot on a car lot. Below are some factors that can affect the price of a new vehicle.
- When Sales Are Slow: Car salesmen are more likely to give deeper discounts to get your business. Rainy days, holiday periods and shopping during the week, are times when a car sales person may be willing to give you an extra discount just to close the deal.
- End Of The Month: If a sales person is short of their monthly quota to receive their sales bonuses, they may be willing to give customers discounts in order to meet the quota.
- End Of The Year: As year end quotas approach, and new models start rolling in, dealers and manufacturers may offer discounts, cash rebates, and lower interest incentives just to get the cars off the lot.
- Redesigned And Discontinued Models: If the manufacturer has completely redesigned one of their models, they are usually willing to offer bigger discounts and incentives to get rid of the outdated models. If the vehicles has been discontinued completely, the savings are usually even better.
Alternatives To Buy Here Pay Here Auto Sales
Wednesday, December 7th, 2011Studies have shown that low-income people can increase their income, are more involved in the community, and have better access to healthcare when they have their own transportation. It is also estimated that one in four needy families do not have a car. The U.S. Transportation Department plans to spend over $100 billion on roads, bridges, public transit, and rail projects, but has little money allocated to help the poor purchase a car. Some feel that the government actually made it harder with programs like “Cash For Clunkers”. The program resulted in higher priced used automobiles by removing almost 700,000 running vehicles from roads. In some states, people receiving government aid are restricted to how much they can spend on a vehicle, leaving them with an unreliable car or no car at all.
Consumers that need a car, but have bad credit, feel they have no alternative but to turn to Buy Here Pay Here dealers. These dealerships advertise themselves as providing a valuable service to consumers, as they make big profit off the misfortune of others. Prices and interest rates are high, and the chance of having your vehicle repossessed is one in four, allowing the dealership to sell vehicles over and over again.
There is about 160 nonprofit organizations nationwide that try to provide affordable used cars to needy families. Some receive public funds, but for the most part they operate on donations and can help only a small percentage of families that need it. Rep. Gwen Moore (WI-04) has tried for years to get the government to help the poor buy cars. In 2005 and again in 2007, she sponsored legislation to provide $50 million a year for low-income car ownership programs. Both bills were rejected.
Beware of Buy Here Pay Here Auto Sales
Monday, November 7th, 2011For many people a car is a necessity in life. Even with the best public transportation, daily commutes and errands, are much easier with your own vehicle. As a result, consumers who don’t qualify for conventional loans, may agree to unrealistic terms when purchasing an automobile.
A fast growing corner of the auto market, also known as “Buy Here Pay Here” auto sales, is being advertised as helping the consumer purchase a car, but more often than not, it is the dealership that benefits from the agreement. Buy Here Pay Here lots sold nearly 2.4 million cars nationwide last year, according to CNW Marketing Research. It is estimated that there are more than 33,000 lots nationwide making about $80 billion in loans every year. Some dealerships have been accused of purposefully structuring loans to guarantee the borrower will default. Higher purchase prices, interest rates nearly triple the national average, and aggressive repossession practices make it easy for the dealership to repossess the car and sell it to a new customer at the same high interest rates, and while still pursuing the old borrower for their debt. Some dealerships have been accused of equipping their cars with hidden GPS devices and remote-control ignition blockers to make the repo man’s work easier.
Dealers say they are offering a valuable service for people who can’t get credit for a car. They say they risk never seeing a payment, or the car again. When a buyer does default, repossessing can be a costly hassle. Some cars are never found while others come back so beaten up they have to be junked. “This is not the car business. This is the finance business,” said Ken Shilson, an accountant who founded the National Alliance of Buy Here Pay Here Dealers in Houston. “Not everybody has the stomach for it.”
There have been some crackdowns on Buy Here Pay Here dealerships. In 2004, an Ohio chain settled a federal class action for $21.8 million to customers who say they were misled about their loans. In 2006, the Kentucky attorney general reached a $7.4 million settlement with the nationwide J.D. Byrider chain to settle violations and deceptive sales practices. But these settlements are rare. Buy Here Pay Here businesses are both auto dealers and consumer lenders, it’s not always clear who has authority over them.
You can view the whole story HERE, as reporter Ken Bensinger of the LA Times explains Buy Here Pay Here auto sales and how they can take advantage of people with bad credit while providing a valuable service for someone who needs a car but can’t get credit.
Easier Credit Boosts Auto Sales
Friday, March 4th, 2011
The headlines in the news would suggest the automobile industry is back. Sales of new automobiles rose about eleven percent in 2010, and the first two month of 2011 are off to an even stronger start. Some say it is due to an improvement in the economy while others say that the increase in gas prices have prompted consumers to purchase more efficient automobiles. Whatever it is, those who are in the market for a new automobile will find it financially easier as well.
The increase of credit in almost every aspect of the economy is an important sign that the American economy is returning to health. Wall street loan packaging has allowed automakers to open up their wallets and start to give consumers loans more aggressively. Even car buyers with bad credit histories are getting financing, some without having to make a down payment. While nobody is suggesting that we are back to the days of the housing boom, the increase in credit is a sign that the American economy is gaining some health from the times where auto makers looked to the government for aid.
U.S. Automobile Sales Strong In November
Friday, December 3rd, 2010You don’t hear much good news coming out of the auto industry lately, but November auto sales are reported to have hit a promising turning point as consumers bought more cars and trucks. Novembers new vehicle sales have been the highest in two years, with the exception of a brief period in 2009 when government rebates encouraged consumers to purchase vehicles that they couldn’t afford. The 17% surge is giving automakers confidence that the industry is on track for a strong year end finish.
Ford, General Motors, Chrysler, Nissan, Hyundai have all reported double-digit increases. Hyundai had the biggest increase, up 45 percent from the same month last year, and Toyota, which has been hurt by a string of safety recalls, had a 3% sales drop.
Industry analysts suggest the solid November sales numbers show that consumers who have kept their jobs through the economic downturn are now feeling confident enough to spend money and replace older vehicles. Incentives on lease deals and rebates also helped push up sales.
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