Its Friday, its also Black Friday, its the Vroom Room, make yourself comfortable enjoy the cappuccino and biscotti. Join the conversation, leave a comment.
The other day we again reinforced our position that you have to be your own editor at a time when many are in the eyeball business for the sake of attracting fleeting eyeballs for a few seconds.
Almost month end, we expect a strong November in Canada to uphold the 2015 trend, set new records and more important a new Canadian "mobility" model. While everyone compares percentage increases, month to month, and the exploding sales of trucks.
With the ever decreasing value of the CDN dollar, exporting used vehicles is helpful to many dealers. Its a perfect storm of mobility and ease of disposal of trade ins. Think about this for a moment.
You have to love it when CMS (Citizen Main Street) is increasingly moving towards utility vehicles. While Canadian auto pundits pick a station wagon as a category winner.
Or talking about "utility" vehicles, and which one was the first. From our perspective the first was the Suburban literally 80 years ago.
Perhaps we are repetitive in constantly wondering why deals are more challengin to close in 2015, than last year, and might be even more challenging to close in 2016.
From Humans are Underrated "A better strategy is to ask, What are the activities that we humans, driven by our deepest nature or by the realities of daily life, will simply insist be performed by other humans, even if computers could do them?"
Our usual old race cars from the SVRA Nationals.
You constantly hear the term "muscle car" referring to a myriad of different cars usually with a dose of horsepower. This video will refresh your memory about what the original muscle cars were all about. Big motor, big body, tach on the steering column, huge shift lever, dog dish hub caps, no chrome, abbreviated exhaust system.
Yes...and the right stance to immediately convey the message.
Its Friday, its the Vroom Room, The Colonel is "Gone Fishing"....guess he's occasionally allowed to go fishing.
With all the talk about "BOOMERS" lately, from the vault Boomers. We urge you to take a moment and read the conversation from almost 8 years ago.
Its a classic Deuce Roadster.
Our usual old cars from the Pebble Beach Tour d'Elegance.
Perhaps like us you are weary of most folks that are still talking about the Internet as if its a novelty especially for the auto business.
Twenty years ago the Internet was a novelty, e-mail was a strange medium, digital cameras were new and somewhat clunky. Our thoughts from 9 years ago that still resonate today...click.
Back in the day when a dial up modem was the only way to access the Internet, everyone was waiting for the advent of "broadband" to enable livelier web sites and video. Broadband has been around for 10 years if not longer.
Lets not even go to social media, which again has been around for over 5 years.
You have to wonder...Why are there still a ton of folks talking about this as if its a novelty that emerged a few days ago.
All the product information is online, no kidding we knew that 20 years ago for the auto business. Most folks do their due diligence online, find used vehicles online, have shifted from PC's to mobile devices.
We could keep on going and going...you surely know what we are conveying,
If you are in the auto business and an individual brings up the Internet, be cautious, that individual is literally behind the times, is trying to sell you something, and is absolutely missing the current and more important future reality.
The auto business embarked on a vector of "dynamic pricing" several years ago, lets not be so naive as to think that big data does not have a powerful influence on the decisions that are made on a monthly basis.
Financial services are also an intrinsic part of the incentive strategy.
We could keep on going with a myriad of stuff. We urge you to use our search feature to access out previous thoughts on "incentives" and "financial services".
With Ford in the US initiating a strong incentive campaign till the end of the year, suddenly incentives are on the forefront, with every pundit, analyst sharing thoughts and their opinions.
Let's bring it closer to Canada.
The moment most manufacturers relinquished leasing in Canada, and embarked on a longer than shorter term financing strategy. It was a brave new world, shifting the residual risk to CMS (Citizen Main Street), while CMS in the ensuing years has shifted the trade in deficiency to the manufacturer.
Transactions across Canada are closed on the basis of a monthly payment, the magical $500 per month is the average. To deal with the lower CDN dollar, deficiencies on trade ins, incentives are an intrinsic part of doing business. Yes...CMS is keenly aware on how to use incentives to uphold his mobility model.
The manufacturers that staid the course with leasing as well as financing have a substantial competitive advantage, which will become even more obvious in 2016.
The "incentive" that is rarely discussed are the various volume bonuses from the manufacturer to the dealer for reaching monthly agreed upon new vehicle sales objectives. If retail incentives to the customer might skew the business strategy, volume bonuses add an additional layer of skewing.
Back in the day when most dealerships were owned / operated / managed by an individual, the dealer had to make money to stay in business. It was the acumen of the dealer to be a consummate "horse trader" to make money. Incentives were rare to non existent. As well the business office did not exist yet to sell additional products.
Fast forward to today with the "dealer group" phenomenon, hired individuals to manage dealerships, layers upon layers of technology, and several competing franchises owned by the same group. Its an additional impetus to uphold incentives and bonuses.
What do you think...