The Costco Auto Program is described as a member-focused auto-buying service that offers prearranged pricing on new and select pre-owned vehicles, RVs, motorcycles and powersports products. The program offers discounts on auto parts, service and accessories for U.S. Costco members. Affinity Auto Program has operated the program since its inception in 1989.
According to numbers released from the Costco Auto Program, the program is doing well. The Costco Auto Program said in a March 27 news release that members purchased more than 650,000 vehicles through the program’s participating dealerships and during its limited-time specials with vehicle manufacturers in 2018.
The Costco Auto Program said its sales numbers marked an increase of more than 25% compared to 2017. The program significantly outpaced total industry sales, which increased 0.6%, the company said, sourcing a Jan. 3 article in Automotive News.
Its holiday sales event with GM was its largest limited-time special last year. That event showed a 22% increase over 2017 sales.
The Costco Auto Program attributes the continued growth shown in the company-record total unit sales for the program overall and company-record total unit sales during the three-month holiday sales event to “the great value and top-notch service provided to Costco members before, during and after the purchase process.”
Certified pre-owned vehicles are a strong part of the program, with low, prearranged pricing on CPO vehicles, according to the company. More than 82% of all purchases through the program are new vehicles, followed by CPO vehicles at almost 16%.
The Costco Auto Program said delivering strong value and a good experience by supplying the tools necessary to make an informed buying decision and providing confidence in the value they receive as a Costco member is the program’s mission. Costco members receive a discount on most of the parts, service and accessories at participating automotive service centers.
For the everyday program and the holiday sales event with GM, SUVs are the overall top-performing segment, making up 47% of unit sales during the holiday sales event. Trucks, at 37%, were the second-best-performing segment.
For the everyday program, however, SUV sales represented 58% of sales and trucks only 8%.
The Costco Auto Program plans for the program to grow and expand in 2019, with several promotions and member-only incentives in the works. The program plans to add to its team, which currently includes more than 300 employees.
Carvana founder and chief executive officer Ernie Garcia said in a Thursday news release that the company had a “huge week in California.”
On the previous Tuesday, the company announced its launch in three new California markets: Stockton, Modest and Vallejo.
Two days later, on Thursday the 4th, Carvana said it launched in three additional California markets, offering as-soon-as-next-day vehicle delivery to residents in the Salinas, Santa Cruz and Visalia areas.
“We’re eager to grow here in the Golden State and look forward to bringing the new way to buy a car to Salinas, Santa Cruz and Visalia-area residents,” Garcia said.
With Thursday’s California launches, the online car buying and financing platform now offers its services in 13 markets in the state and 115 markets across the United States.
CarGurus chief technology officer Kyle Lomeli says open source code is “critically important” to how CarGurus builds its systems and products. In addition, he said, his company gets great benefit “from the altruism of the open source community."
CarGurus says open source projects “provide the collaborative, open development of software code” allowing companies such as CarGurus to access technical innovation beyond their own resources.
Because of that, CarGurus has launched the CarGurus Open Source Fund, an employee-led charitable initiative. Members of the CarGurus engineering team founded the fund.
The program will give back to the open source projects that the company says helps fuel the company’s technology. The Open Source Fund will empower engineers to choose open source projects that inspire their passion and that they believe deserve financial support.
"By forming the CarGurus Open Source Fund, we are able to give back to the open source projects that continue to give our team the technical tools to do our jobs at scale,” Lomeli said in a news release. “We look forward to helping the open source community thrive as our engineering team grows and more employees become eligible to allocate quarterly funds."
The company says the Open Source Fund’s contributions will help ensure the sustainability of open source projects and engineers’ access to that extra layer of code development.
CarGurus hopes the Open Source Fund will show appreciation while supporting the open source community and giving other technology companies the same opportunity to innovate and grow. Open source projects will become eligible each quarter for nomination based on their significance to either CarGurus or its employees.
Once a project is nominated, an internal committee will oversee the finalists and determine donation distribution. The quarterly allocation is based on the number of participating employees. When the team grows, the allocation will grow as well. CarGurus intends to fund donations each year under the Open Source Fund to open source projects reaching more than $100,000.
In the first round of donations, CarGurus employees selected the following organizations or projects:
— Apache Software Foundation
— Homebrew
— Babel
— Git
— Linux Kernel
— RuboCop
— Open Web Application Security Project (OWASP)
— FreeBSD
— Webpack
Because of the volume of projects that CarGurus develops using software from the Apache Software Foundation, that organization will receive a donation of more than $12,000. With that significant donation to Apache, CarGurus will become a foundation sponsor in support of the projects it provides.
Most new-vehicle owners are still driving the vehicles after owning them for one year. But 3.4 percent of new cars are resold as used within the first year of ownership.
Which vehicle brands are sold most frequently after only one year of ownership?
A new study from iSeeCars.com breaks down some numbers regarding the vehicles that owners sell as used within a year.
Among those new vehicles that owners sell within a year, owners sell their German and British luxury cars most frequently.
Eight of the top 10 models are luxury brands. Earning the top spot is the Mercedes-Benz C-Class compact executive car, with 12.4 percent of its new cars resold on the used car market within the first year, which is 3.7 times the average for all vehicles.
For the study, iSeeCars studied more than 46 million individual new-car sales from model years 2014-2017 in July 2013 through December 2018. Using each vehicle’s vehicle identification number, iSeeCars determined whether the car was then re-listed between four months and a year of its sell date on the used-car market and then sold.
With three models on the list, fellow German automaker BMW has the most models sold within the first year of ownership. Those vehicles include the second-ranked 3 Series, the sixth-ranked X1, and the seventh-ranked X3.
Four British luxury vehicles make the list: the Land Rover Discovery Sport, the Land Rover Range Rover Evoque at No. 4, the MINI Clubman at No. 5, and the Jaguar XF at No. 9.
The MINI Clubman subcompact SUV rounds out the British luxury vehicles on the list.
The Nissan Versa Note hatchback came in at No. 8, along with its sedan counterpart, the Nissan Versa, at No. 10.
For more details on the study, visit https://www.iseecars.com/new-cars-owners-dont-keep-2019-study
New cars sold most often within the first year of ownership (percentage resold within the first year)
— Mercedes-Benz C-Class: 12.4 percent
— BMW 3 Series: 11.8 percent
— Land Rover Discovery Sport: 11.8 percent
— Land Rover Range Rover Evoque: 10.9 percent
— MINI Clubman: 10.7 percent
— BMW X1: 10.4 percent
— BMW X3: 9.0 percent
— Nissan Versa Note: 9.0 percent
— Jaguar XF: 8.8 percent
— Nissan Versa: 8.7 percent
iSeeCars removed vehicles with less than 1,000 miles on the odometer from its analysis.
Each year, Training magazine publishes a Training Top 125 list, assessing companies’ work in areas such as how closely training and development efforts are linked to business goals and objectives.
For its 2019 list, the magazine recognized Sonic Automotive, placing it sixth out of 125 organizations. Sonic Automotive has now placed in the awards program’s top 10 for three consecutive years.
In naming Sonic Automotive to this year’s list, the magazine praised Sonic Automotive’s training team for the following academies and programs that the company offers each year to associates: General Manager Leadership Academy, Variable Operations Academy, Fixed Operations Academy, Managers as Trainers, Leadership at Sonic, and Sonic Sales Process Training. The publication also noted Sonic’s achievement in bringing a return on investment from those programs.
In addition to assessing companies on how closely training and development efforts are linked to business goals and objectives, the publication determines its Top 125 ranking by assessing qualitative and quantitative factors such as financial investment in employee training and development, the scope of training programs, and business impact effectiveness.
“We are highly focused on associate growth, and I’m proud to see our training team being recognized again this year,” Sonic Automotive chief executive officer David Smith said in a news release. “This award is a huge testament to their commitment and dedication to developing best-in-class programs for our associates.”
Training magazine is a 55-year old professional development publication for training, human resources, and business management professionals. The magazine recognized Sonic with the award during the Training 2019 Conference & Expo at Disney’s Coronado Springs Resort in Orlando, Fla. in February.
“The programs and leadership academies developed by our training team are critical to our company’s ability to develop our associates for long-term growth and success,” Sonic Automotive president Jeff Dyke said. “Fostering an environment of continual learning and development helps our associates get the most out of their careers at Sonic and has a huge impact on our ability to create an unmatched experience for our customers.”
In 2017, Carvana opened in its first California market, which the used vehicle e-commerce platform’s founder and chief executive officer Ernie Garcia called, “a significant milestone in our coast-to-coast growth.”
On Tuesday, Carvana announced the launching of three new California markets: Stockton, Modesto and Vallejo.
“To now bring the new way to buy a car to a total of 10 cities in the state of California is an accomplishment we’re proud of, and we’re looking forward to Stockton, Modesto and Vallejo residents embracing the easy, tech-forward car buying and selling we offer,” Garcia said in a news release.
The addition of 10 California cities brings the company’s total U.S. city count to 112. The announcement follows several March expansion moves for Carvana, including Texas, Ohio and Arizona, among others.
If you bought a used vehicle in Colorado from CarMax over the past year and a half, chances are it was a 4-wheel drive or all-wheel drive. That’s according to a recent sales data report from the retailer, which noted that 72.64 percent of its vehicle sales in that state were either 4WD or AWD.
And if you bought a used 4WD or AWD vehicle from CarMax anywhere in the country, chances are that the 4WD was a Ford F-150 and the AWD was a Subaru Outback, according to CarMax sales data from Dec. 1, 2017 through June 1, 2018.
Those are some of the tidbits of information that CarMax is reporting from tracking its sales of its used 4WD and AWD vehicles from Jan. 1, 2004 to Dec. 31, 2018.
But in looking at the data, one thing stands out for sure: Overall, more Americans are buying 4WD or AWD vehicles from the used-car retailer.
Sales of 4WD and AWD vehicles increased to 26 percent of total CarMax sales in 2018, up from less than 25 percent in 2017 and right at 20 percent in 2016.
CarMax noted that with just a few exceptions, 4WD and AWD are more popular in areas with severe winters or rugged terrain; mainly, the North and Midwest. In Colorado, 72.64 percent of CarMax vehicles sold were equipped with 4WD or AWD.
It was followed by New Hampshire (63.58 percent), Maine (59.28 percent), Massachusetts (55.10 percent) and Connecticut (53.86 percent).
Sales of those vehicles are much lower in the Southeast and Southwest.
Only 12.73 percent of CarMax vehicles sold in Florida, for example, were equipped with 4WD or AWD. Florida was the least popular state for 4WD/AWD (percentage-wise) in the CarMax data. Next was Arizona (14.07 percent), followed by Louisiana (14.18 percent), Texas (14.69 percent) and Mississippi (15.30 percent).
Colorado stood out as a state of 4WD and AWD vehicle purchasers, but the state also showed up prominently when CarMax looked at the top cities in purchases of 4WD and AWD vehicles, according to CarMax sales data from Feb. 1, 2018 to Jan. 31, 2019.
Denver came out on top with 72.23 percent, and Colorado Springs came in second with 68.10 percent. Manchester, N.H.; Portland, Maine; and Boston rounded out the top five cities.
When measuring the least popular cities for purchasing 4WD and AWD vehicles, Miami came out on top with only 10.68 percent being 4WD/AWD. Five other Florida cities made the top 10 list showing where 4WD and AWD vehicles were least popular.
Popularity of 4WD/AWD by state, as provided by CarMax:
Most popular:
1. Colorado: 72.64 percent of total state sales
2. New Hampshire: 63.58 percent of total state sales
3. Maine: 59.25 percent
4. Massachusetts: 55.19 percent
5. Connecticut: 53.86 percent
6. Michigan: 53.80 percent
7. New York: 49.53 percent
8. Pennsylvania : 48.96 percent
9. Rhode Island: 47.85 percent
10. Nebraska: 47.07 percent
Least popular:
1. Florida: 12.73 percent
2. Arizona: 14.07 percent
3. Louisiana: 14.18 percent
4. Texas: 14.69 percent
5. Mississippi: 15.30 percent
6. California: 17.04 percent
7. Alabama: 19.31 percent
8. Georgia: 21.55 percent
9. Nevada: 23.74 percent
10. Oklahoma: 24.61 percent
Popularity of 4WD/AWD by city
Most popular
1. Denver 72.23 percent
2. Colorado Springs 68.10 percent
3. Manchester, N.H. 62.04 percent
4. Portland, Maine 58.17 percent
5. Boston 56.82 percent
6. Reno, Nev. 54.90 percent
7. Spokane, Wash. 54.37 percent
8. Bristol, Tenn. 54.12 percent
9. Hartford, Conn. 53.18 percent
10. Grand Rapids, Mich. 52.87 percent
Least popular:
1. Miami: 10.68 percent
2. Lafayette, La. 10.84 percent
3. Orlando, Fla. 12.04 percent
4. Tampa 12.28 percent
5. Ft. Myers, Fla. 12.33 percent
6. Houston 12.43 percent
7. West Palm Beach, Fla. 12.73 percent
8. Bakersfield, Calif. 13.01 percent
9. Tallahassee, Fla. 13.16 percent
10. Phoenix 13.23 percent
David Jodat, a senior master technician at Subaru City of Milwaukee in Wisconsin, has been a technician for more than 18 years. But he offers more than just years of service. According to Subaru of America, he possesses superior technical knowledge and skill.
For Jodat’s efforts, Subaru of America honored him as the winner of its 2019 American National Technician Competition (ANTC).
The biennial event features Subaru technicians from across the country, and the event tests the technicians with written, diagnostic and hands-on challenges.
As a Zone Champion (Minneapolis) and first-place winner, Jodat received $2,000, a crystal trophy and an all-expenses-paid trip to Japan to represent the United States in competing in the Subaru World Technical Competition this November.
This year, 14 Zone Champions from across the country participated in the competition at the Subaru National Service Training Center. The center is located at Subaru’s new U.S. headquarters in Camden, N.J.
This year’s ANTC event included four events of one hour each. Participants were scored on accuracy, speed and service quality. The written test involved the use of a service manual to answer questions. On-car drivability diagnostics, on-car body electrical diagnostics and mechanical-precision measurements were the three hands-on events.
From the remaining Zone Champions, Thomas Vigeant of Saint Johnsbury Subaru in Saint Johnsbury, Vt. received a $1,500 total prize as the second-place winner. Placing third was Todd Rodman of Webster Groves Subaru in Webster Groves, Mo., who won a $1,000 total prize. The Zone Champions and runners up, in alphabetical order, are:
— Brian Barnard – Michael Hohl Subaru, Carson City, Nev.
— Pat Bonner – Lancaster County Motors Subaru, Lancaster, Pa.
— Sean Ernest – Annapolis Subaru, Annapolis, Md.
— Leo Gilmore – Ruge’s Subaru, Rhinebeck, N.Y.
— Daryl Henzlik – Subaru Sherman Oaks, Van Nuys, Calif.
— Brad Julitz – Prestige Subaru, Asheville, N.C.
— Micah McCurdy – Austin Subaru, Austin, Texas
— Kjell McDaniel – McCurley Integrity Subaru, Pasco, Wash.
— Russell Stevens – Dreyer & Reinbold Subaru, Greenwood, Ind.
— Eric Taffs – Placer Subaru, Helena, Mt.
— Tim Whalen – Cannon Subaru, Lakeland, Fla.
“This is the seventh year we’ve brought together the premiere technicians from Subaru retailers across the country to recognize the service excellence that exists in our retailer network,” Thomas Doll, Subaru of America president and chief executive officer, said in a news release. “While we are extremely proud of all our participants, we are excited to name David the worthy winner of a very competitive event, and we look forward to having him represent the U.S. at the international final in Japan.”
Noting that it adds a "new layer of convenience" to the Service Valet that already comes standard on every new 2019 Genesis vehicle, luxury automotive brand Genesis has introduced the Genesis Spectrum all-inclusive leasing program.
Genesis Spectrum will be available in select markets on new, 2019 G70, G80 and G90 sedans, and includes auto insurance as part of the monthly payment. The program will be available through its affiliate, Genesis Finance.
All Genesis vehicles offer the no-cost service program that the company says “elevates the luxury vehicle ownership experience.” Services include valet service appointments that can be scheduled using the Genesis mobile app, complimentary maintenance and Genesis Connected Services. Parts of “the Genesis Experience” that the company says provides convenience and time savings to vehicle owners include:
— Three years/36,000 miles of complimentary scheduled maintenance
— Three years/36,000 miles complimentary Service Valet
— Three years of complimentary Genesis Connected Services, including Enhanced Roadside Assistance, Destination Search powered by Voice and Remote Start with climate control
— Three years of complimentary SiriusXM Travel Link (Data Services)
— Three years of complimentary Annual Multimedia and Navigation Updates
— Lifetime complimentary traffic data
— Warranty that the company describes as “best in class,” with enhanced roadside assistance and concierge services, including tire changes or transportation to the nearest Genesis dealership or authorized service facility, and reimbursement for inconvenience.
— Guaranteed Asset Protection waiver for Genesis Finance leases
— Up to $1,525 allowance for excess wear and use, excess mileage, and disposition fee for returning Genesis Finance customers
“We designed Genesis Spectrum as a seamless leasing experience that acts as an extension of the Genesis brand and its values,” Erwin Raphael, chief operating officer of Genesis Motor America, said in a news release. “More than anything, the Genesis Spectrum premise respects our customers’ time, which is their most valuable luxury.”
Auto insurance provider Metlife Auto & Home has been selected for Genesis Spectrum to initially launch at all Genesis retailers in Florida. The Metlife Auto and Home auto insurance policy includes coverage with a $500 deductible.
UPDATED: Headline and story text corrected to show that new vending machine location is in Pittsburgh.
Carvana notes that its new 130,000 square-foot vehicle inspection center in Indianapolis will increase the company’s production in the Midwest with annotation, full paint facilities, mechanical repair and patented 360-degree, high-definition photography.
Located in Greenfield, Ind., an Indianapolis suburb, the inspection center is Carvana’s fifth. It joins others in the Atlanta, Dallas, Philadelphia and Phoenix metro areas. Carvana inspects, reconditions, photographs and stores the company’s 15,000-plus vehicle inventory at these centers.
This new Indianapolis center increases production capacity, and that helps Carvana meet growing demand. In related news, the company on Tuesday announced market launches in South Bend and Elkhart, Ind. and also announced another car vending machine in Pittsburgh, which is its second in Pennsylvania.
The Indianapolis inspection center, when operating at full capacity, will bring approximately 500 jobs to the metro area. At the center, Master ASE-Certified auto technicians supervise the lines and ensure every vehicle is Carvana Certified. That means the vehicle has undergone a 150-point inspection, has no frame damage and has never been in a reported accident.
“Indianapolis has played a pivotal role in our rapid expansion in the Midwest and is now home to both an Inspection Center and a Car Vending Machine,” Ernie Garcia, founder and chief executive officer of Carvana, said in a news release. “This deep presence in Indianapolis means we can now offer as-soon-as-next-day delivery to Elkhart and South Bend, and as of today, grow our presence to four total markets across the state.”
Carvana now offers as-soon-as-next-day vehicle delivery in 109 markets across the U.S.
In other Carvana news, the company unveiled the newest Carvana car vending machine on Thursday in Pittsburgh, and it stands eight stories tall and holds 27 vehicles. The company notes that it is the second Carvana car vending machine location in Pennsylvania and the 16th in the United States.
Carvana also announced in a news release on Thursday that it launched two more markets in Pennsylvania, with as-soon-as-next-day-delivery in Erie and Reading.
With the addition of Pittsburgh, Carvana now has two vending machine locations in Pennsylvania and 16 in the United States. Additional car vending machines are located in cities across Texas, Tennessee, Florida, North Carolina, Maryland, Arizona, Ohio and Indiana.
“We first brought Pittsburgh the new way to buy a car in 2016, when we launched as-soon-as-next-day vehicle delivery in the area,” Garcia said. “We’re rapidly increasing our presence in Pennsylvania, and as we launch in Reading and Erie today, while also debuting our Pittsburgh car vending machine, we’re appreciative of our customers and how Pennsylvania has welcomed our easy, transparent online car buying experience.”
The Pittsburgh car vending machine, located at 1300 Brockwell St. in Bridgeville, is open Monday through Saturday from 9 a.m. to 7 p.m. eastern time. All Carvana customers can pick vehicles up at any of Carvana’s car vending machines for free.
