February 2012

Polk: Economy Continues to Push Consumers to Keep Vehicles Longer than Ever

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p>When a shopper buys a new-vehicle these days, the person will typically keep the car close to six years, according to Polk, which said vehicle ownership periods have never been this high.

In examining vehicle registration data for the third quarter of 2011, Polk found that consumers are now holding on to vehicles they purchased as new for an average of 71.4 months, just shy of six years. They are keeping vehicles bought used for almost 50 months.

Preferred Warranties Marks 20th Anniversary by Revealing Continued Sales Revenue Jump

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p>Extended service contract provider Preferred Warranties began its 20th anniversary celebration this week by highlighting a 29-percent increase in sales revenues last year, coming on the heels of a 16-percent jump during 2010.

PWI national sales manager Wayne Herring Jr. declared, “2010 was strong, 2011 was even stronger.

Cars.com Cares Gives $100,000 Donation to SADD

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p>This week, Cars.com utilized its corporate giving initiative and leveraged voting through its social media platforms to award a $100,000 donation to Students Against Destructive Decisions (SADD).

Cars.com president Mitch Golub highlighted why SADD received these funds and also shared more background about Cars.com Cares.

“We launched Cars.com Cares this year to help fuel organizations that share our mission of building confidence,” Golub explained.

CFPB Proposes Rule to Supervise Larger Participants in Consumer Debt Collection and More

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p>The Consumer Financial Protection Bureau recently announced a proposed rule to include debt collectors and consumer reporting agencies under its nonbank supervision program — marking the first time these consumer financial market participants are subject to federal supervision.

The Dodd-Frank Wall Street Reform and Consumer Protection Act, which created the CFPB, authorizes the CFPB to supervise nonbanks in the specific markets of residential mortgage, payday lending and private education lending.

While Predicting Repo Upswing, Webb Points to Factors Bolstering Recovery Bottom Lines

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p>While also predicting repossessions should trend upward again, Manheim chief economist Tom Webb explained why lenders didn’t sustain as much of a loss when a loan contract went south during the past two years.

Webb stated that “in those cases in which repossessions did occur in 2010 and 2011, lenders experienced a significant reduction in the severity of loss. This reflected the strength of wholesale used vehicle prices, more conservative loan-to-value ratios in the underlying contract, and the general aging of portfolios."

Weathering the Storm: NC Dealers Show Determination in the Lanes

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p>After dealing with the unexpected snowfall in North Carolina, dealers and buyers alike had another storm to weather Monday morning — navigating the tough wholesale environment, ridden with unit scarcity and skyrocketing prices. 

At the Manheim North Carolina sale, the overall attitude was one of grim determination. Buyers and dealers alike are taking hits right and left due to high prices in the lanes, but the show must go on. And with no change in sight, all attendees had buckled down that cold morning to get down to business and stock the lots.

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