Archive for May 2024

Until the vehicles are repaired, Ford advises owners to avoid using their cellphones while backing up. Ford recalled more than 109,000 Lincoln Aviator sports-utility vehicles over an issue that can lead to distortion of the rear-view camera, presenting risk of a crash. The presence of a cellphone inside the midsize luxury SUVs can interfere with…

Captives’ new-vehicle financing market share jumped to about 62%, the highest point since 2010. Pexels/Pixabay Revived new-vehicle inventory has brought a wave of changes across the auto retail market, including the return of leasing and the migration of some shoppers from used to new, Experian says in a first-quarter report. The shift of many back…

Gray, appropriately, has jumped in popularity the most of the ‘grayscale’ colors, jumping 82% in two decades. Today’s roads are less colorful, says one industry researcher, which found 80% of the vehicles in operation are on the “grayscale” palette. That means most cars are white, gray, silver or black, according to vehicle search and research…

The nonprofit the IIHS says it’s stepped in as a ‘de facto regulator’ of ADS with a ratings program aimed at encouraging automakers to add safeguards. Pexels/Splitshire Half a dozen Democratic senators and a leading traffic safety nonprofit group are calling for federal regulators to train a more discerning eye on automated vehicles. The Insurance…

DealerOn CEO Ali Amirrezvani says company through the partnership is ‘working to deliver a vehicle shopping experience like no other – one that adapts to the individual and their unique needs.’ The Reynolds and Reynolds Co. and DealerOn, a provider of websites and sales and marketing enablement technology for automotive dealerships, announced an integration designed…

The percentage of EV owners who use a brand’s mobile app rose two percentage points year-over-year to 90%. Pexels/Tim Samuel A survey of electric-vehicle owners points to the value consumers place on automakers’ EV mobile applications and how brands and dealers can do a better job of seizing that opportunity. It found that just over…

There have been 27 U.S. deaths caused by Takata airbag explosions, according to the NHTSA. Pexels/AngieJohnston Nissan issued a do-not-drive warning for nearly 84,000 2002 to 2006 vehicles whose recalled Takata airbags haven’t been replaced. The Japanese automaker’s warning includes the 2002 to 2006 Sentra, 2002 to 2004 Pathfinder and 2002 to 2003 Infiniti QX4…

Marketing via social media presents the potential for Dark Patterns, and dealers should consider how they are employing these applications. Pexels/FUTURE KIIID Dark Shadows (Not Patterns) “Dark Shadows” was a television soap opera in the 1960s featuring vampires, warlocks and the occult.  Conversely, Dark Patterns is a legal theory postulated by the Federal Trade Commission…

The companies called their technology ‘highly efficient and powerful,’ and that the more compact engines would make space for improved, more aerodynamic vehicle design, along with greater fuel efficiency. Three Japanese automakers said they’re developing internal-combustion engines to support low emissions as they seek to achieve net-zero pollution. Mazda, Subaru and Toyota announced the project…

Part of the reason for the accumulation of outgoing models is high interest rates that are keeping many consumers out of the market. Pexels/Kelly The share of new outgoing model-year vehicles sitting on dealer lots in May about matched that in May 2019, the year before the pandemic, signaling that reviving inventories are returning conditions…

Fully electric vehicles’ share of the EU market was flat year-over-year at 12% as hybrids have taken off. A similar pattern has developed in the U.S. Pexels/Tetyana Kovyrina Hybrid vehicle sales growth in April far exceeded that of all-electric models in Europe, continuing a trend on the continent that’s been mirrored in the U.S. Hybrid…

One of the most important things auto dealers should have in place is a plan to move an EV if its battery overheats so people or property aren’t in harm’s way if it catches fire or explodes. Pexels/Pixabay Electric vehicles have introduced myriad changes to the automotive industry, even before they reach the critical mass…

CarNow says the global Amazon network provides innovative solutions, solves technical challenges, wins deals, and delivers value to mutual customers. CarNow, a digital retailing company in the automotive industry, said it joined the Amazon Web Services Partner Network as a software partner. The network is a global community of partners that leverage programs, expertise and…

The assembly must pass its version of the bill by Aug. 31 if it’s to advance this session. Pexels/Luke Miller A California bill that would require new vehicles to have what’s known as passive speed limiters, or warning signals when the vehicle exceeds posted speed limits, passed one house of the state legislature. The state…

Rising retail inventories, up 53% year-over-year, make up the backdrop of the sales picture. Pexels/Sarmad Mughal A May new-vehicle sales forecast puts deliveries up about 3% year-over-year when adjusted for fewer selling days to about 1.5 million units, and the seasonally adjusted annualized rate up half a million units to 16.1 million. The joint J.D.…

The vast majority of survey respondents expressed a preference for clicking professional-looking photos first when browsing online inventories. Redline, an automotive solutions provider, recently completed a survey revealing the substantial impact of professional vehicle photography on consumer behavior and dealership success. According to the survey, 95% of consumers believe that professional-looking photographs of vehicles on…

The Hyundai Ioniq 6 was the only purely electric model included in the recommendations. A traffic safety nonprofit and Consumer Reports released a list of used and new vehicles they recommend for teenagers as the safest options for that age range. The 58 used models are priced between $5,800 and $19,900, and all have the…

The average age ticked up to 12.6 years, and S&P says the prime age range for after-market service is 6 to 14 years. Pexels/Jose Ricardo Barraza Morachis The average age of vehicles on U.S. roads has reached a record high of nearly 13 years, presenting service drive business opportunities. An S&P Global Mobility data analysis…

F&I departments must follow a very specific process and have authoritative command of what they sell, Devine advises. Paul “Hoss” Devine got into the car business when he was 19 because he was broke and noticed an industry professional who was doing pretty well for himself. “We want all the rewards of hard work without…

SafePoint Dealer Services, a lot management and telematics monitoring solution for automotive dealers, launched several features designed to give dealerships control over communication with customers while increasing monthly service revenue by 10% to 15%. While Safepoint works to eliminate disruptions to the sale through tracking features like low- battery and fuel, and theft alerts, it…

Reynolds and Reynolds President Chris Walsh says the company wants to recognize innovators making positive impacts and help them share their stories. Reynolds and Reynolds The Reynolds and Reynolds Company, a technology and software provider for automotive dealerships, announced the 2024 Automotive Amplifiers Contest to highlight inspirational and collaborative ideas advancing the industry. The competition…

Satisfaction with digital-based property and casualty insurance shopping was 516 on a 1,000-point scale, a slight dip of five points year-over-year, compared to a 12-point drop on satisfaction with auto insurers generally. Pexels/Cup of Couple Auto insurer digital channels draw more new customers than other means, according to a new study, which found that consumers’…

A dealership that loses 10 keys in a single month might spend up to $5,500 to replace them. IMAGE: Pexels/Negative Space Key management is a crucial aspect of running a smooth and secure dealership operation, securing vehicles on the lot and helping dealerships operate efficiently. But all too often, key management is lacking or even…

Vehicles priced under $15,000 had the lowest days’ supply at just 36. IMAGE: Pexels/Richard Taveira After spring used-vehicle sales failed to meet seasonal expectations, used inventory in the U.S. had its own spring bounce last month. Used-vehicle inventory across franchised and independent dealers rose 3% month-over-month in April, up 6% year-over-year to 46 days’ supply,…

Since the recalls, the agency received the complaints about doors on ID.4s intermittently opening while the vehicles were in operation and that the doors at times won’t open for entering or exiting the vehicle. Volkswagen Safety regulators are reviewing completed recalls of a Volkswagen electric sports-utility vehicle after getting a dozen complaints of doors opening…

There are four components to a good foundation in deal structure: communication, lender awareness, the right vehicle, and equity. Pexels/Pixabay As I write this article, I have just read that inventory of new vehicles in the U.S. has gone north of an 80-day supply. That is quite a change from just over a year ago.…

The tool kit includes logos, email and press release templates, social media and infographics, posters, handouts and other digital assets. In recognition of Auto Service Professionals Month in June, the National Institute for Automotive Service Excellence has made available free, downloadable communications materials and creative assets to help industry organizations support the observance. Designed as…

Though seat belt use has increased over the years, more than 11,000 passenger vehicle occupants killed in 2022 weren’t wearing seat belts at the time of the crashes, and 57% of that number were in nighttime accidents. Pexels/Erik McIean Traffic safety regulators say seat belt use has declined in rural areas of the country, a…

The total sold for the month surpassed last April’s volume but was below the 1.6 million average for April of the past five years. Pexels/Erik McIean Used-vehicle sales at franchised and independent dealers fell in April in a normal seasonal pattern exacerbated by high interest rates. Used sales declined 7% month-over-month to 1.45 million units,…

The program creates a  new direct sales channel without requiring OEMs to build and manage their own marketplace pages. Pexels/Anna Nekrashevich Trader Interactive, the parent company of online marketplaces in the lifestyle vehicle and commercial equipment industries, debuted TraderConnect, which embeds current RV Trader, Cycle Trader, Commercial Truck Trader or Equipment Trader listings from affiliated…

The study shows lesser reasons for reduced demand include lower fuel prices over the past year; inflation; high interest rates; and slowed growth in model availability. Pexels/Kindel Media The percentage of consumers considering buying an electric vehicle fell over the past year for the first time in the four years of J.D. Power’s annual study.…

Air bag issues were the most common reason by volume, representing a quarter of effected units, or three million. Pexels/Dietmar Janssen Automotive recalls rose 9% in the first quarter to the highest volume of any quarter in two and a half years, though the volume of effected units fell. A Sedgwick report puts the quarterly…

AutoPayPlus AutoPayPlus AutoPayPlus promoted two team members to strengthen its leadership structure for better navigation of market complexities while supporting continued career development at the company. Amilcar (AP) Matus is now senior director of operations, and Carl Moore is senior director of CRM and data analytics. CEO Robert Steenbergh expressed confidence in the moves, saying,…

The Taycan EV tops iSeeCars’ most-recalls list with a projected 70.7 lifetime recalls. A new data analysis ranks the vehicles likely to be recalled the most and the least, putting the all-electric Porsche Taycan at the top of the list. Online automotive search engine and research website IseeCars reviewed statistics from the National Highway Traffic…

Inventory, which was flat for the month, is expected to resume its gradual rebuilding, and incentives will likely follow it, Cox said. Pixabay/LuckyLife11 New-vehicle affordability waned in April as manufacturers took their feet off the incentive gas. The average transaction price rose 2% to $48,510, according to Cox Automotive, which said that’s the highest ATP…

U.S. EV sales peaked in 2022, Cox says, though it considers that shift “a new phase of development.” Pexels/Pixabay As electric-vehicle sales numbers underwhelm in the U.S. and Europe, a new forecast pegs a dramatic upward turn in the segment. Cox Automotive predicts that U.S. EV adoption, after its recent downward trend that caught major…

Pitching finance-and-insurance products in the service drive might seem counterintuitive, but of course that’s where many of those very products ultimately get fulfilled. To Corey Smith, national fixed operations training manager at F&I products provider APCO Holdings, it’s an all-too-often missed opportunity. He explained why at Bobit Dealer Group’s most recent Industry Summit event, where…

The NHTSA advises consumers to remove any existing decals from their steering wheels and avoid buying them for any make or model. Pexels/Tobi Despite a warning regulators issued last fall to avoid using steering wheel decals, another driver suffered severe injuries from such an add-on in a recent crash. The National Highway Transportation Safety Board…

There appears to be a direct correlation from the importance of the vehicle as a third space to the significance consumers are placing on entertainment.

Keep a notes section on your phone and jot down, and each time you encounter a situation or objection or hear a close, jot it down. Pexels/Arina Krasnikova Much of what we encounter in the F&I office is not controllable. We have no control over our lender’s interest rates. We can’t control an increase in…

Studies show the public tends to be wary of driverless taxis and full vehicle automation technology in general. Amazon’s Zoox is now the brand of self-driving taxis under the regulatory microscope. The National Highway Transportation Safety Administration is investigating two rear-end crashes that involved Zoox-equipped vehicles, both Toyota Highlanders with the brand’s automated driving system…

The share of loans whose terms exceed 72 months rose 89 basis points, though it fell one percentage point year-over-year. Pexels/RDNE Stock Project Auto credit availability was mixed in April, with an overall slight tightening year-over-year among new and certified preowned channels and banks and captive finance companies. Cox Automotive’s All-Loan Index was essentially flat…

The law, sponsored by state Sen. Brandon Storm, imposes stricter regulation of auto glass repair shop trade practices. Pexels/Kaan Durmuş Kentucky passed a state law similar to a recently enacted Florida statute, prohibiting requirements that insured consumers use a particular auto glass repair shop, as well as deceptive repair practices. The law, sponsored by state…

Thirty percent of its 22 to 24 year olds had auto loans as of the fourth quarter, compared to 25% of millennials 10 years earlier. Pexels/Elijah O’Donnell The youngest borrowers are tapping credit more than their millennial counterparts did at the start of their borrowing histories, and the generation also has higher delinquency rates. A…

Before even bringing someone on to the F&I team, it’s important to know what to look for. Pexels/Mike Bird Jason Gannon recalls his first deal. Shortly after graduating college in his native Maine with a degree in graphic design, he ended up in a car accident. He was lucky enough to have a dad who…

Total auto loan fraud actually fell last year, though that resulted from a decline in origination volume, according to the report. The rate of applications with evidence of fraud rose 6%. Pexels/Markus Winkler Losses to automotive loan fraud reached to about $8 billion last year, according to a new study, as restrained affordability came to…

Sedans, led by Kias and Hyundais, topped the list of the most stolen vehicles in the U.S. last year, replacing full-size pickups. A rash of thefts of 2011 to 2022 Kias and Hyundais was fueled in part by social media how-tos on how to lift the models, which lack standard antitheft technology. The thefts led…

Quality questions can produce better goals for your business. Pexels/Engin Akyurt It is my hope that you were able to achieve more than you expected in 2023 and lived with a higher degree of fulfillment. As 2024 speeds toward its midway point, it still presents a great opportunity to build on the momentum that you…

Though the average manufacturer suggested retail price of an EV is more than $2,200 beyond that of a comparable gas-powered car, incentives and tax credits can close that difference. Pexels/Cėsar Baciero A newly released study says electric vehicles now cost less than gas-powered models when all the costs over an entire ownership are calculated. That…

As temperatures rise, the risk of heat-related illnesses such as heat stress, heat exhaustion, and heat stroke becomes a serious concern for workers. KPA’s Heat Illness Checklist provides essential guidance to employers on protecting their workforce during the summer months. Here’s what you’ll get from this comprehensive whitepaper: Practical tips and strategies to plan for…

Dealers should simply not engage in fraud and charge bogus fees. Pexels/Phil Kallahar For many years I worked for the Florida Attorney General’s Office prosecuting dealers, and often I went undercover at dealerships.  These experiences sometimes illuminated inscrutable and fraudulent charges. A recent case brought back memories of dealer violations. New England Dealer Allegedly Adding…

Vincensus Report provides, monthly, quarterly data on the state of automotive inventory across major OEMs. Lotlinx, a VIN-specific data company for dealership inventory management, released its inaugural quarterly Vincensus Report, a comprehensive monthly/quarterly inventory analysis. Each month and quarter, the Vincensus Report will offer deep real-time data and insights visibility into the trends shaping OEM-specific…

700Credit Managing Director Ken Hill said, ‘It’s alarming to view these results and see the staggering number of dealers who continue to neglect the critical practice of properly validating a consumer’s driver’s license and protecting that sensitive information inside their dealership(s).’ 700 Credit, LLC, a provider of credit reports, compliance solutions, soft pull, and identity-verification…

EV sales in the European Union increased three times faster than charger installations from 2017 to 2023. Pexels/Ashley Fontana Europe, similar to the U.S., has a big gap in the number of public electric-vehicle charging stations needed to meet the European Union’s pollution-reduction targets. A report by the European Automobile Manufacturers’ Association calls the gap…

As the market grows, lighting technology is evolving. It’s been shifting from halogen front lighting to LED technology, and HD xenon lights are emerging as an alternative with similar attributes. Pexels/Erik McIean The automotive lighting market is poised for robust growth over the next five years as more vehicles hit the road, a new report…

Customers can now place orders through the portal, track their progress, and view their order/invoice history. CMA/Double Coin CMA and Double Coin, a tire marketer and manufacturer, launched their dealer portal, a platform that provides streamlined processes, real-time information, and navigation tools for CMA customers to access information and place orders. Key highlights include: Intuitive…

The treasury department delayed enforcement of the battery-sourcing restrictions until 2027, giving automakers more time to reach compliance and opening more models to federal tax credits tied to the restrictions. Pexels/Mikhail Nilov When the U.S. government temporarily loosened regulation last week that curbs electric-vehicle battery materials sourced from China and other countries, a debate ensued…

The AutoForecast Solutions projection has production up in all regions except western Europe. Pexels/Charles Parker A global light-vehicle production outlook is up this month by about 180,000 units to 91.5 million for the year. The AutoForecast Solutions projection has production up in all regions except western Europe, which it revised down about 20,000 units, largely…

If a lender has reason to believe bank fraud was committed, the dealer could be required to buy back the deal. Pexels/Dids Year after year, bank fraud continues to be a top compliance issue in dealerships. I continually stress to dealers how prevalent it is and their continuous need to have no-tolerance policies in place…

Full automation has been controversial, and accidents involving automated taxis have spurred some governmental curbs on their use. Pexels/Erik McIean The Association for Computing Machinery shed doubt on the practicality of fully automated vehicles in a recent informational bulletin. It said it’s unclear that automatic vehicles will ever reach the point of operating safely without…

Automakers now have more time to comply with rules governing sourcing of battery materials, such as graphite, of which China has the majority of the world’s supply. Pexels/Kindel Media The Biden administration has temporarily eased rules restricting electric-vehicle battery materials from China and other countries classified as Foreign Entities of Concern, potentially making more models…

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Ford hybrid sales, following suit with the automaker’s recent electric-vehicle downshift, surged in April, with one model setting a monthly record. The Detroit-area brand said its hybrid deliveries jumped 60% year-over-year to about 18,000 units. Sales of its F-150 PowerBoost Hybrid pickup alone skyrocketed 94%, surpassing all other full-size hybrid trucks in U.S. sales, said…

IIHS said the Ioniq provides ‘excellent’ rear passenger protection. A small electric Hyundai sports-utility vehicle won the highest safety rating awarded by a major vehicle crash tester. The 2024 Ioniq 5 was rated Top Safety Pick+ after going through the paces of the Insurance Institute for Highway Safety tests. The nonprofit rated Hyundai’s midsize Santa…

The new provision is scheduled to take effect on May 13. Pexels/Samad Ismayilov In an era when data is a business’ lifeblood, Reynolds and Reynolds Chief Information Security Officer Nikhil Kalani has been the guardian of a high-stakes ballgame. The digital-evolution leader, who helps create products to enhance dealership data security, observes that the strategy…

Half of this windshield is treated with a Crystal Fusion product. APCO Holdings APCO Holdings, a provider and administrator of automotive finance-and-insurance products and home to the EasyCare and GWC Warranty brands, acquired Crystal Fusion Technologies, an innovator in automotive glass-protection solutions. The strategic acquisition marks a milestone for APCO as it expands its portfolio…

The survey found that 35% of auto insurance consumers indicated interest in embedded policies provided through auto dealers or manufacturers. Pexels/Maria Orlova With car insurance rates on the rise and many consumers dissatisfied with coverage, they’re on the hunt for new policies, and many express interest in embedded ones. A J.D. Power survey of 10,000…

One or both taillights on 2022 to 2024 Mavericks can deactivate. Ford has recalled nearly 243,000 Ford Maverick trucks over an issue that could cause their taillights to stop working. The recall affects 2022 to 2024 Mavericks, whose body control module may deactivate one or both taillights on its own, according to a notice on…

Dealers understand that digital retailing can improve customer experience and make it easier and faster to complete a sale, but digital retailing provides another benefit to dealers and car buyers alike: It builds connections. In the 2023 Cox Automotive Digitization of Car Buying Study, 43% of dealers said digital retailing creates a more personal connection…