Cross-Sell Reports, a division of Dominion Dealer Solutions, announced today the release of localized market data and reporting solutions for Arkansas dealers.
The suite of market reports available include Cross-Sell Interactive, Market Analysis, Statewide Dealer and Leinholder Summary, and MarketIntel, the latter of which uses heat mapping to visualize new- and used-vehicle sales as well as liens based on dealership and owner location.
Shane Marcum, Cross-Sell Reports’ general product manager, believes the company’s various offerings will be beneficial to dealers in Arkansas looking sharpen their strategies in their area while also increasing their return on investment within their dealership.
“Through Cross-Sell’s suite of market reports, automobile dealers in Arkansas are given the tools to strategically attack their primary market areas,” Marcum said, “regardless of whether a dealership is in Little Rock, Texarkana, Fayetteville-Springdale-Rogers, Fort Smith, Jonesboro, Pine Bluff, Hot Springs or anywhere else in Arkansas.”
For more information about Dominion Dealer Solutions’ offerings, visit their website. Additional details on Cross-Sell Reports can be found here.
The Greater New York Automobile Dealers Association has named Robert Vail as its new chairman.
Vail, the current president of the Vail Auto Group in Bedford Hill, N.Y., has been a member of the GNYADA board of directors since 1993 as well as holding several positions on both the executive and finance committees for the organization.
The third-generation auto retailer joined the business in the 1960s as a mechanic at the family Ossining Studebaker dealership; Vail’s grandfather opened a Chevrolet dealership in the same town in 1918.
Mark Schienberg, GNYADA’s president, expects Vail to perpetuate his contributions to the association in the new position.
“Bob has been a dedicated advocate for dealers over many years and brings a wealth of knowledge and experience to the job,” Schienberg said, “and I look forward to working with him on the Association’s many important lobbying efforts and grassroots dealer and consumer initiatives.”
Asbury Automotive Group announced across-the-board gross profit increases including a 7-percent increase on the used-car side.
The company retailed 18,840 used vehicles in the second quarter, which proved to be 1,137 more used vehicles sold than in the second quarter of 2013, a 6-percent increase.
Total used retail gross profit came in at $33.7 million, up from $31.5 million a year ago.
On a same-store basis, it was at $32.8 million, up from $31.5 million in the second quarter of 2013.
Same-store gross profit per used vehicle retailed was up 2 percent at $1,807. Used retail gross margins were at 8.6 percent, down from 9.0 percent a year ago.
Michael Kearney, Asbury’s executive vice president and chief operating officer, attributes the company’s overall success to the current automotive market situations and the Asbury employees’ dedication.
“The industry continued to gain momentum in the second quarter,” Kearney said. “Our teams continue to demonstrate the strength and diversity of the earnings power of the Asbury dealer model, delivering gross profit growth across all segments of the business.”
The company shared some other Q2 performance highlights compared to the same period the prior year:
Total revenues increased 12 percent to $1.5 billion
New-vehicle retail revenues up 12 percent
Finance and insurance revenues up 11 percent
Parts and service gross profit up 11 percent
Total gross profit up 12 percent with increases from all business lines
SG&A expense as a percent of gross profit improved 90 basis points to 68.3 percent
Record operating margin of 4.8 percent
Repurchased $20 million of Asbury common stock
Closed on $60 million of mortgages in July
Asbury also acquired a Hyundai franchise in Deland, Fla. along with opening their first Q auto store in Brandon, Fla., the first in a future chain of stand-alone used vehicle stores the company has planned to open.
The company is on track to open a second Q auto store in the fall.
Group 1 Automotive announced this week the acquisition of two dealerships located in Houston: Munday Chevrolet and Munday Mazda.
The two dealerships, which will continue to do business with their current names, are estimated to yield $225 million annually.
Earl Hesterberg, the president and chief executive officer of Group 1, believes the acquisition of two of Houston’s big hitters will greatly improve the group’s market appeal.
“Munday Chevrolet is the second-largest Chevy dealership in Texas and sixth-largest in the country,” Hesterberg said. “We are delighted to add this high volume store to our growing family of dealerships in our hometown of Houston. The addition of Chevrolet and Mazda expands our scale and brand offerings to a total of 17 brands across 19 stores serving over 300,000 customers in the greater Houston metropolitan area.”
In other Group 1 Auto news, the collective disposed of Long Island-located Hassel Volvo at the end of June.
Ever dealt with a customer who thought you were ripping them off? Or one that thought you could afford to pay a little more for a trade-in? Chances are they may have been wrong.
According to a new survey commissioned by TrueCar, car shoppers think dealers make about five times more profit on the sale of new car than they actually do.
The company released this week the results of its annual “TrueCar Buyer Study,” which focuses on the “trust gap” between consumers and dealers.
That is, when buyers fear they are overpaying for a new vehicle.
In reality, dealers new-car profit margins are shrinking.
According to the survey, shoppers believe dealers make about 20 percent profit on the sale of a $30,000 new car.
The truth of the matter: Dealer new-car profit margins are down from 5.5 percent in 2003 to 3.8 percent in 2013, according to NADA data.
Interestingly, this is much less than consumers think would be “fair.”
According to the survey, shoppers believe that a “fair” profit margin on a new-car sale would range from 10 to 12 percent.
Furthermore, if told that dealers theoretically made zero-percent profit on new-car transactions, consumers surveyed responded that they would be willing to "tip" them 8 percent on a sale — considerably more than the current profit margin.
Even though shoppers implied dealers should be making more profit off new cars than they currently are, 26 percent of survey respondents still said they thought they overpaid for their purchase.
The survey was conducted in February and surveyed more than 3,000 consumers in the U.S.
Veteran managers and store principals might remember what happened in the late 1990s when automakers tried strategies to move away from the traditional franchised dealer model with experiments such as the Ford Retail Network and GM Retail Holdings.
A new report by auto industry consultant Maryann Keller not only recapped the shortcomings of those approaches, but also reinforced how America’s franchised dealer network is geared to provide numerous benefits to both consumers and manufacturers
According to the report titled, “Consumer Benefits of the Dealer Franchise System,” factory-direct sales of new vehicles either sold online or through factory-owned and operated retail outlets have not resulted in lower prices for buyers or increased market share for OEMs.
“The franchised dealer network benefits consumers and manufacturers alike by providing fierce price competition among dealers and an extremely efficient distribution network that is acutely sensitive to local markets,” said Keller, in the 34-page report prepared for the National Automobile Dealers Association and released on Tuesday.
“The new-car dealer franchise network is the most efficient way to distribute and sell new cars as well as provide convenient access to service over the life of every vehicle,” she continued.
Keller, managing partner at Maryann Keller & Associates, said “past experiments by factories, such as Ford Motor Co. and General Motors, to sell directly have proven unsuccessful, and the results have only reinforced the need and value of having a network of franchised new-car dealerships.”
NADA highlighted the report also excoriated critics who call franchised dealers “costly middlemen,” demonstrating that as long as vehicles are retailed, there will inevitably be costs of retailing, and that local competitive dealers are the best way to lower those costs.
“Proponents of a factory-direct system have also failed to identify the system-wide savings for car buyers if manufacturers were to provide the same services that dealers do to satisfy the needs of each customer,” she said.
Keller added that local franchised dealerships make a very complex process as simple as possible — from stocking ready-for-sale inventory, offering test drives, appraising trades, arranging financing, interacting with the DMV to replace lost titles on trade-ins, registering cars and obtaining license plates, calculating and paying sales taxes, and managing and retaining all documents from each transaction.
When it comes to service and repair work, Keller says advocates of a factory-owned retail system wrongly assume that manufacturers would be as objective as an independent dealer in addressing all customer complaints.
“The personal relationship with a local business has tremendous value that cannot be replaced by an 800 number or a call center,” she said. “The dealer acts as an advocate with the factory for the car owner, especially for warranty and recall claims.”
Keller’s report is part of a major new “Get The Facts” initiative from NADA to promote the benefits of America’s franchised dealership network. The initiative includes a website and variety of multimedia resources available at www.nada.org/GetTheFacts.
The centerpiece of the project is a two and a half minute animated video detailing the benefits of the dealer franchise system, viewable here. Other resources include a 30-second video, a fact sheet on the consumer benefits of dealers, a longer informative FAQ, a document explaining the reasons for state franchise laws, an infographic and other materials.
The National Automobile Dealers Association rolled out a new “Get The Facts” initiative on Monday aimed at informing the media, opinion leaders and consumers about the numerous benefits of America’s franchised dealer network through a website and variety of multimedia resources.
The centerpiece of the project is a two and a half minute animated video detailing the benefits of the franchised dealer system.
Other resources include a 30-second video, a fact sheet on the consumer benefits of dealers, a longer informative FAQ, a document explaining the reasons for state franchise laws, an infographic and other materials.
On Tuesday, NADA will release a new report by auto industry analyst Maryann Keller on the consumer benefits of the dealer franchise system.
“Franchised new-car dealers provide the best, most efficient and most cost-effective way to sell and distribute new cars in America, and we’re proud of our businesses and business model,” NADA president Peter Welch said.
“NADA’s efforts will set the record straight about the benefits of the dealer franchise network for consumers, manufacturers and local communities everywhere,” Welch continued. “New-car dealers provide the best and most efficient way to buy and sell cars for both consumers and manufacturers, despite the misinformation and misconceptions that have surfaced over the last several months.”
NADA has presented the materials to state and metro dealer associations as well as individual dealers across the country, and is encouraging them to co-brand the materials and present them on their own websites.
“Franchised new-car dealers benefit consumers through price competition, accountability on warranty and safety recall issues, and provide enormous economic benefits to local communities across the country,” Welch said. “The dealer franchise network is supported by automakers as the best and most efficient way to buy, sell and service cars in the marketplace.”
The “Get The Facts” initiative highlights four central benefits of franchised dealers, which include:
1. Price Competition: Franchised dealers compete fiercely for business and drive consumer prices down.
2. Consumer Safety: Franchised dealers take the side of consumers in warranty and safety recall situations.
3. Local Economic Benefits: Franchised dealers create well-paying local jobs and generate significant tax revenue that have a huge impact on local economies.
NADA pointed out there are 17,700 franchised dealerships with nearly 32,000 domestic and international franchises that employ more than 1 million people in the U.S.
Chrysler announced Tuesday morning that 86 dealers in North America have been awarded Alfa Romeo franchises, with expectations that number may one day grow past 300 locations.
This initial pool of dealers have been picked from existing FIAT and Maserati brand dealers, and includes 82 dealers in the U.S. and four in Canada.
These stores will be the first to offer the 2015 Alfa Romeo 4C couple and limited-edition 4C Launch Edition when the brand returns to North America this year.
The company said additional franchises will be announced later in the year. At first, each of the stores will receive the 4C Launch Edition.
“This group of dealers represents the first phase in the Alfa Romeo dealer network selection process,” said Peter Grady, vice president of network development for Chrysler Group. “Each Alfa Romeo dealer will have a unique staff dedicated to the brand’s premium market clientele.
“We require each Alfa Romeo dealer to have their sales and technical staff go through an intensive curriculum to ensure the highest levels of customer care and proficiency of the Alfa Romeo 4C,” he continued. “We anticipate that the Alfa Romeo dealer network ultimately will exceed 300 franchises in North America.”
The U.S. dealers are scattered throughout 33 states, as detailed below by the list, which also includes the four Canadian stores:
Alabama
FIAT of Huntsville, dba Alfa Romeo of Huntsville, Huntsville, Ala.
Arkansas
Landers FIAT, dba Landers Alfa Romeo, Benton, Ark.
FIAT of Fayetteville, dba Alfa Romeo of Fayetteville, Fayetteville, Ark.
Arizona
Larry H. Miller FIAT Tucson, dba Larry H. Miller Alfa Romeo Tucson, Tucson, Ariz.
FIAT of Scottsdale, dba Alfa Romeo of Scottsdale, Scottsdale, Ariz.
California
FIAT of Burlingame, dba Alfa Romeo of Burlingame, Burlingame, Calif.
FIAT of Bakersfield, dba Alfa Romeo of Bakersfield, Bakersfield, Calif.
McKevitt FIAT, dba McKevitt Alfa Romeo, Berkeley, Calif.
Premier FIAT of Fremont, dba Premier Alfa Romeo of Fremont, Newark, Calif.
Orange Coast FIAT, dba Orange Coast Alfa Romeo, Costa Mesa, Calif.
Santa Monica FIAT, dba Santa Monica Alfa Romeo, Santa Monica, Calif.
FIAT of Los Angeles, dba Alfa Romeo of Los Angeles, Los Angeles, Calif.
Kearny Mesa FIAT, dba Kearny Mesa Alfa Romeo, San Diego, Calif.
Walter’s FIAT, dba Walter’s Alfa Romeo, Riverside, Calif.
Mossy FIAT, dba Mossy Alfa Romeo, National City, Calif.
FIAT of San Francisco (San Francisco Motors), dba Alfa Romeo of San Francisco, San Francisco, Calif.
Maserati of Walnut Creek, dba Alfa Romeo of Walnut Creek, Walnut Creek, Calif.
Colorado
AutoNation FIAT North Denver, dba AutoNation Alfa Romeo North Denver, Northglenn, Colo.
Connecticut
FIAT of Fairfield County, dba Alfa Romeo of Fairfield County, Stamford, Conn.
Florida
Rick Case FIAT, dba Rick Case Alfa Romeo, Davie, Fla.
FIAT of North Miami, dba Alfa Romeo of North Miami, North Miami, Fla.
FIAT of Melbourne, dba Alfa Romeo of Melbourne, Melbourne, Fla.
FIAT of Pensacola, dba Alfa Romeo of Pensacola, Pensacola, Fla.
Sunset FIAT of Sarasota, dba Sunset Alfa Romeo of Sarasota, Sarasota, Fla.
FIAT of Winter Haven, dba Alfa Romeo of Winter Haven, Winter Haven, Fla.
FIAT of Orange Park, dba Alfa Romeo of Orange Park, Jacksonville, Fla.
Greenway FIAT of East Orlando, dba Greenway Alfa Romeo of East Orlando, East Orlando, Fla.
Fields FIAT, dba Fields Alfa Romeo, Orlando, Fla.
Georgia
FIAT of Savannah, dba Alfa Romeo of Savannah, Savannah, Ga.
Illinois
FIAT of Chicago, dba Alfa Romeo of Chicago, Chicago, Ill.
Bettenhausen FIAT of Tinley Park, dba Bettenhausen Alfa Romeo of Tinley Park, Tinley Park, Ill.
FIAT of Metro East, dba Alfa Romeo of Metro East, Fairview Heights, Ill.
Indiana
FIAT of Glenbrook, dba Alfa Romeo of Glenbrook, Fort Wayne, Ind.
Expressway FIAT of Evansville, dba Expressway Alfa Romeo of Evansville, Evansville, Ind.
Michigan
Suburban FIAT, dba Suburban Alfa Romeo, Ann Arbor, Mich.
Fox FIAT, dba Fox Alfa Romeo, Traverse City, Mich.
Golling FIAT, dba Golling Alfa Romeo, Bloomfield Hills, Mich.
FIAT of Lakeside, dba Alfa Romeo of Lakeside, Macomb, Mich.
Zeigler FIAT of Grandville, dba Zeigler Alfa Romeo of Grandville, Grandville, Mich.
Minnesota
FIAT of Bloomington, dba Alfa Romeo of Bloomington, Bloomington, Minn.
Missouri
Northtowne FIAT of Kansas City, dba Northtowne Alfa Romeo of Kansas City, Kansas City, Mo.
North Carolina
Hendrick FIAT of Cary, dba Hendrick Alfa Romeo of Cary, Cary, N.C.
Nebraska
FIAT of Omaha, dba Alfa Romeo of Omaha, Omaha, Neb.
New Jersey
FIAT of Maple Shade, dba Alfa Romeo of Maple Shade, Maple Shade, N.J.
Fullerton FIAT, dba Fullerton Alfa Romeo, Somerville, N.J.
Nevada
FIAT of Las Vegas, dba Alfa Romeo of Las Vegas, Las Vegas, Nev.
Findlay FIAT, dba Findlay Alfa Romeo, Henderson, Nev.
New York
FIAT of Larchmont, dba Alfa Romeo of Larchmont, Larchmont, N.Y.
Ohio
Bob & Chuck Eddy FIAT, dba Bob & Chuck Eddy Alfa Romeo, Youngstown, Ohio
Yark FIAT, dba Yark Alfa Romeo, Toledo, Ohio
Bob-Boyd FIAT, dba Bob-Boyd Alfa Romeo, Columbus, Ohio
Bob Ross FIAT, dba Bob Ross Alfa Romeo, Centerville, Ohio
Oklahoma
FIAT of Edmond, dba Alfa Romeo of Edmond, Edmond, Okla.
Texas
FIAT of Austin, dba Alfa Romeo of Austin, Austin, Texas
Holt FIAT of Fort Worth, dba Holt Alfa Romeo of Fort Worth, Fort Worth, Texas
Northside FIAT, dba Northside Alfa Romeo, Spring, Texas
Randall Noe FIAT, dba Randall Noe Alfa Romeo, Tyler, Texas
Allen Samuels FIAT, dba Allen Samuels Alfa Romeo, Waco, Texas
FIAT of Corpus Christi, dba Alfa Romeo of Corpus Christi, Corpus Christi, Texas
Helfman FIAT, dba Helfman Alfa Romeo, Houston, Texas
Brown FIAT, dba Brown Alfa Romeo, Laredo, Texas
FIAT of McKinney, dba Alfa Romeo of McKinney, McKinney, Texas
Cavender FIAT, dba Cavender Alfa Romeo, Selma, Texas
Virginia
Safford FIAT of Tysons Corner, dba Safford Alfa Romeo of Tysons Corner, Vienna, Va.
Safford FIAT of Fredericksburg, dba Safford Alfa Romeo of Fredericksburg, Fredericksburg, Va.
FIAT of Alexandria, dba Alfa Romeo of Alexandria, Alexandria, Va.
Pomoco FIAT of Newport News, dba Pomoco Alfa Romeo of Newport News, Newport News, Va.
Vermont
Berlin City FIAT, dba Berlin City Alfa Romeo, Williston, Vt.
Washington
FIAT of Tacoma, dba Alfa Romeo of Tacoma, Tacoma, Wash.
Barton FIAT, dba Barton Alfa Romeo, Spokane, Wash.
West Virginia
Urse FIAT of Morgantown, dba Urse Alfa Romeo of Morgantown, Morgantown, W. Va.
Moses FIAT of St. Albans, dba Moses Alfa Romeo of St. Albans, St. Albans, W. Va.
The National Automobile Dealers Association released its second annual NADA Dealership Workforce Study back in November, but the organization dug back into the report this week, releasing a few more key findings — including an interesting tidbit on pay scales.
According to the report — which was produced in partnership with DeltaTrends — car dealership employees, on average, earn 27 percent more than the average weekly earnings of all U.S. private sector employees.
The report is based on 2012 hard data culled from 290,000 car and truck payroll records, and includes both national and regional data. More than 2,240 dealerships enrolled in the 2013 Dealership Workforce Study.
Perhaps not surprisingly, compensation in luxury dealerships tends to be higher than compensation in non-luxury dealerships.
F&I managers had the highest income growth in 2012, at 8.4 percent, followed by service managers at 8 percent and sales consultants at 7.8 percent.
Overall, the overall median salary in dealerships rose by almost 4 percent in 2012.
Dealerships are also shifting a bit when it comes to who they are hiring.
According to the study results, many dealerships are looking to the younger generation when ramping up their teams.
Dealers hired members of Generation Y 41 percent of the time in 2012.
NADA cautioned that to keep them, “we need to address dealership culture, work house, salary and incentive programs, as the turnover rate in 2012 for this age group was 54 percent.”
Dealerships are also increasing their female employee numbers, as dealerships hired women 19 percent of the time in 2012, up 2 percent from the previous year.
However, NADA noted again that the industry might need to work on dealership culture, as the turnover rate for female sales consultants is at 76 percent.
The overall turnover rate for dealership employees is 35 percent, which is less than that of the U.S. private sectors of 41 percent.
That said, turnover is still an issue, NADA pointed out, stressing that high rates might be due in part to long hours.
“The total number of hours and weekend that employees are scheduled to work has a significant impact on retention,” NADA said in the report.
Sales consultants working 50 to 60 hours per week earn 4 percent more a year than their counterparts working 40 to 45 hours.But there's a caveat.
When employees work over 45 hours, turnover increase and retention decreases, implying a change to the incentive system may be due.
For more insight from the NADA study, see the Auto Remarketing story below:
In one particular piece of The Blue Sky Report from Haig Partners, the firm emphasizes the often strong profitability of a dealer’s pre-owned operation, while also illustrating the importance of that department with this key statistic:
The share of total retail unit sales for franchised dealers that used vehicles accounted for in 2013 was more than 7 percentage points higher in 2013 than it was in 2007, according to the report.
And there were 152,342 more used unit retail sales in 2013 for public retailers than there were in 2007, the report indicated, citing filings with the SEC.
“More dealers are focused on their used-vehicle business because of the sometimes stronger profits for used cars, and the reconditioning that also boosts fixed operations,” the report notes.
“And F&I on used cars can be higher than with new-car sales,” it continued. “Dealers are doing a better job gaining trade-ins and many have accepted the tenets of the vAuto approach, where rather than hoping for above market grosses, they sell the car for market value and try to increase the number of unit sales per month for a given amount of working capital to maximize profits.
This was just part of the multitude of data included in The Blue Sky Report, which reviews the dealership buy-sell market in addition to several data sets examining dealer values, auto industry profits and more.
For instance, the report notes that dealership buy-sell transactions rose by double-digit rates in 2013, and analysts are predicting this year’s rates will continue to rise. What’s more, it shows that in 2013, public retailers committed more than $1 billion to acquisitions for the first time since 2006.
