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Tuesday
Sep092014

Free Flowing Money

In the auto business we all know that the product is 50% of the equation to create a customer. We should mention that in 2014 the product must not only be good (they are all inherently good) it must also be inspiring

We have often wondered through the years what would happen if all manufacturers, or most of them fired on all cylinders in Canada.

What would happen to sales?

So far this year we have the answer...sales are through the roof.

Decades ago we discovered that a compelling financial package is a valuable asset to the product. Again this year we are seeing the dramatic impact of a strong financial package/incentive. In making a solid contribution to sales.

Most pundits are wondering how long can this keep up, we believe that it can keep on forever, its the new rule of auto retailing. 

When money flows freely, and at low rates, the financial institutions making the credit decisions, be it humans, or sophisticated software. These folks always take into consideration the "risk factor" of their decisions.

We also constantly read that CMS (Citizen Main Street) in Canada is enduring a lofty credit limit, if not overextended, certainly close to the red line, perilously close.

Here is the deal:

The money is flowing freely, at low rates, but increasingly it has less places to go while remaining within acceptable risk parameters. 

What do we mean:

CSM walks into a showroom, with a $10,000 trade in, with a balance of $13,500. owing on the trade, considering a $25,000 new vehicle, with a monthly payment close to the current payment (extending the loan term). 

The credit rating of CSM is good, the current vehicle outstanding balance is $13,500. the monthly is the same or close, but now the outstanding balance jumps to $27,000. (this is a simple example, dealing with a deficiency and down payment)) which doubles the "risk factor".

The result:

Its the canary in the coal mine, its happening now; loans for a CSM with a good credit rating are not being approved due to the heightened risk factor.

What are your thoughts? Leave a comment.

 

 

Monday
Sep082014

The New Rules of Selling

We all know, we all heard about it, hopefully most of us practice it. A refreshing summary on the rules of selling...

We urge you to share with your freinds and collegues.

 

 

 

 

Saturday
Sep062014

Carbon Fiber Wheels

Informative video on Carbon Revolution with Jay Leno on the benefits of carbon fiber wheels. Agreed they are expensive, they are light, and they surely are cool...enjoy.

 

 

Friday
Sep052014

Vroom Room

Good Morning!

Painting by Jay KokaIts Friday, its the Vroom Room, the cappuccino and biscotti are served, join the conversation, leave a comment.

Lets start with a bit if nostalgia from 2 years ago...The Strada Garage.

Canadian Sales

What can you say for August, yes...an epic month in an epic year. Impressive when most manufacturers are firing on all cylinders, and the funding/leasing keeps on flowing. To repeat ourselves, for whatever reasons it took a few years to reach a juncture where every manufacturers gets competitive.

In case you did not know the auto business is very competitive, always was, always will be, and when everyone decides to start trading paint...its wonderful to see.

You may have noticed that this past week we got warmed up for the last stretch of reality to the end of the year. Scroll down to take a look. We hope that you have used the past few days to align yourself out of the Dog Days of Summer, refreshed, reenergised, and back into reality.

The Colonel (our official writer/blogger) is almost caught up, he has a few minor details to complete. He had a busy start of the year, and it got even crazier for him during the past few months. Kudos to the guy for keeping it up, and rarely missing a beat. It would have been easier for him the put somethings aside.

Yes...the passion runs deep...

We are working on a few "thoughts" that have captured our imagination during the summer, we will keep you informed of how they develop in the coming weeks.

Old cars and stunning photography from the Coppa d'Oro Delle Dolomiti 2014.

 

 

Thursday
Sep042014

Connecting the Dots

Pressed for time, challenged for attention in an environment flooded with content.

How do you quickly make relevant sense of all the stuff that is disseminated?

Lets take a look at some points:

  • We all gravitate to content that captures our attention, or content that is relevant to our activities.
  • We are all flooded by immense amounts of content, be it thoughts, opinions or data.
  • We instinctively filter portions if not all of the content.
  • We all know that the same news item gets repeated by a ton of platforms that are in the news business.
  • All of this pedestrian content is free, and is repeated by numerous platforms.

How do you connect dots to arrive at a meaningful perspective?

  • Its a real challenge.
  • Its time consuming.
  • It requires a profound understanding and a deep knowledge base.
  • It requires the ability to quickly uncover specific points (dots).
  • It requires the prescience to connect seemingly unrelated dots.

Once you have connected dots and have a perspective!

  • Go out and do it, usually its the stuff you read about, that someone connected dots and did it.
  • Yes...most folks will not understand, even the ones in the same business as you.
  • Obvious that when they don't understand is when you have a serious advantage.
  • Yes...they might even think that you are a s#$t disturber...its all cool do it.