Friday, March 28, 2008
Bank survey: Franchised car dealers following customers to the used car department
A recent Wachovia Bank survey of 40 large automotive retailers shows an increase in used car sales, with 28 percent of dealerships indicating that their used car sales were above expectations, reports the Associated Press.
The results represented a steep increase from 6 percent in the bank's January survey and flat results compared with year-ago levels.
"Although there was some seasonality, we believe many dealers have lowered their expectations and new car intenders may be switching to used cars," Wachovia's Richard M. Kwas wrote in a note to investors. "In general, dealers conveyed that prospects are more interested in used vehicles over new."
In addition, 82 percent of dealers said that they have "just enough" used vehicle inventory for their needs, up from 64 percent at the same time last year.
At the same time, 15 percent of dealers said they had "too little" inventory, up from 6 percent in the last survey, but down from 31 percent last year, indicating optimism among some dealers about the spring selling season.
Officials for MyRide.com, said they've seen a steep increase over the past several months in searches for information on used cars.
According to MyRide.com, nine of the top 100 search terms entered on the Web site in September were used car-related, representing 6.2 percent of the top 100 terms' traffic volume. But by February, the most recent month available, that number had risen to 27, or about 21 percent of top 100 terms' traffic volume.
A spokesman for MyRide.com said that the specific used models drivers are searching for are the more expensive models including light trucks, such as the Ford F-150 pickup and Chevrolet Tahoe, and luxury cars like the BMW X5.
From DealersEdge Daily Headlines
March 28, 2008
Ford to sell Jaguar and Land Rover to Tata for $2.3B
Ford Motor Company has agreed to sell its Jaguar and Land Rover brands to Tata Motor Group for $2.3 billion. Ford will infuse $600 million into the brands' pension fund once the deal is complete sometime in June, at which time Ford will receive $1.7 billion.
From Dealer Digest Daily
March 26, 2008
Negative Equity Trades Hit Three-Year Low
Negative Equity Trades Hit Three-Year Low
Mar 24, 2008
Found at $pecial Finance.
Westlake Village, Calif. - The percentage of negative equity for the first quarter of 2008 is the lowest it has been in this period for the past three years, according to the Power Information Network (PIN). The drop in upside down trades to 29 percent comes after a downward trend for several calendar quarters. The report, released March 7, said that despite the drop in upside down trades, those consumers that do trade with negative equity owe more than in the past. “So far in the first quarter of this year, the average negative equity amount has been $3,930, up from $3,587 three years ago,” the report said.
The report suggested these trends could be due to consumers with modest negative equity on their vehicles refraining from trading those vehicles in, and those that are the most upside down continuing the trade-in trend.
