By on July 11, 2017

2016 Nissan Versa Sedan - Image: NissanAmerica’s historic subcompact car segment leader, the Nissan Versa, suffered a sharp 22-percent U.S. sales decline in the first half of 2017.

In fact, total Versa sales plunged 45 percent in June 2017. The Versa remained America’s top-selling subcompact nameplate, and by a wide margin. Even in June, when Versa sales plunged by more than 6,500 units, Nissan still owned nearly a quarter of America’s subcompact market.

Nevertheless, it’s odd to see the segment leader, a car that was selling better than ever at this time last year, suddenly dropping like a stone, declining even more rapidly than the segment as a whole.

But after years of using the Nissan Versa as a tool for turning used car buyers into new car buyers, Nissan USA is scaling back factory support for the Versa in lieu of assisting Nissan dealers with their certified pre-owned efforts. (Read More…)

By on April 19, 2017

BMW CPO commercial Toyota Camry screenshot - Image: YouTube screenshot

Call them frenemies. BMW and Toyota are working together on a high-profile sports car project that will result in a long-awaited Supra successor and a replacement for the Z4. Two heads are better than one.

“The concept works, the platform can deliver and now we have two proud sets of engineers — one group German, one group Japanese — who are each fighting and arguing for the car they want,” BMW sales boss Ian Robertson said last year.

The fighting and arguing extends beyond the R&D facilities in Munich and Toyota City.

On a mission to exalt its 3 Series in a certified pre-owned commercial, BMW sought to make fun of a typically bland midsize sedan. 2001 Chevrolet Malibu? 2006 Kia Optima? 2017 Subaru Legacy?

No. BMW chose the most basic, beige, new Toyota Camry to make a point on behalf of a bright red pre-owned 3 Series.

Hardly the work of a BFF. (Read More…)

By on March 21, 2016

2014 Toyota Camry SE

A wave of older vehicles is poised to flood Toyota dealer lots, but the automaker is confident it has just the plan to deal with it — pre-owned leasing.

Toyota is certain that adding a leasing option to its certified pre-owned inventory would boost CPO sales and clear lots in the face of a growing compliment of three-year-old product, Automotive News reports.

The plan has already been quietly rolled out in the U.S. Northeast, but a national strategy should be in place by the end of April, dependent on training in each dealer region. The option would allow a reduced commitment for buyers who don’t want to finance the full cost of a pre-owned vehicle. (Read More…)

By on March 18, 2016

2012 BMW 328i, Exterior, 328i badge, Image: © 2012 Alex L. Dykes/The Truth About Cars

Sam writes:

Hi Bark,

I have a multi-part question and I’m interested to get your insight.

Part one: To CPO or not. After decades of driving Fords, I’ve decided to treat myself with a sporty German car. A BMW 328i seems like just the ticket. I’m looking at a 2015 model year dealer loaner with 4,000 miles, and it’s available with $8,000 off the $53,000 sticker price. The warranty has been reset, so it’s effectively a full, new-car warranty. With no major changes between 2015 and 2016, this seems like a no-brainer.

Part two: To lease or not. A BMW with a turbo and automatic transmission gives me the willies. I like the idea of turning it back in after three years and washing my hands of any long-term maintenance issues (or having to unload it myself). BMW’s lease interest rate is 4.375 percent, which seems high. The residual factor is 59 percent of MSRP.

Part three: To pay up-front or not. I hate paying monthly for stuff. I’m inclined to just pay the entirety of the lease payments up front. BMW will cut the rate by a little in this case, to 4.125-percent on the residual amount. It still seems high relative to the 0-percent offers on domestic vehicles. Are there any gotchas to paying up front?

I’ve never leased before. I’ve always been a “pay cash” kind of guy. But the lease on the low-mileage CPO with no major changes seems like a slam-dunk over a new car similarly equipped. Am I missing something?

Thanks!

Hoo boy. Get ready for a barn burner.

(Read More…)

By on March 15, 2016

2013 BMW X1

Anonymous writes:

Hi Sajeev,

As a long-time reader of Piston Slap and TTAC, I never thought I’d be writing for advice. You see, I usually buy new or manufacturer-certified cars with warranties and loaners and all the benefits that the extra money affords. Surely, any problems would be handled lovingly and without hassle by the dealer and maker. Mostly that’s been the case, but not this time …

(Read More…)

By on July 14, 2015
dirtycar

Low Miles, One Owner… (photo courtesy: www.parknshine.com)

TTAC commentator cwallace writes:

Sajeev,

Here’s what’s probably an easy question for you: Is it ever worth the money to update wear items on a car before trading it in?

My trusty 2007 Accord EX V6 is suddenly about to cost me some real money. With 154,000 miles on it, the tires are about shot, it needs new struts, there’s a crack in the windshield, and the rear main seal is starting to make a mess of my driveway. Plus, my commute just got a lot longer, so the lack of creature comforts (like sound insulation, for heaven’s sake) make me think I’ve got my money’s worth from this car.

Other than those things, it looks good for its age, and everything else works just as it should. All that dealership service paid off, is what I tell myself.

(Read More…)

By on June 23, 2015

is7

I usually have more fun with $5,000 cars than with $55,000 cars.

It’s not because I’m cheap. Well, let me rephrase that. I love investing in a quality vehicle, but in the world that is wholesale auctions, I rarely get to see them. You can find nearly anything at the auctions that has been traded-in, repossessed or not picked up at the end of it’s lease. What you can’t find are the keepers.

Toyota imported only a bit over 5,000 of these IS F sports sedans from 2008 thru 2014. The number brought to auction so far in 2015? 35. Annualized, that’s less than a 1.5% turnover rate in a business where anywhere from 20% to 60% of late model vehicles will revisit ‘wholesale heaven’ before getting shucked back into a retail dealership.

After a week and change behind the wheel of this 2014 Lexus IS F, I finally figured out why you see so few of these vehicles at the auctions. It’s the one missing ingredient that nearly every enthusiast publication glosses over when they review any high-end sports car.

The real world ownership experience.

(Read More…)

By on June 22, 2015

2012 Toyota Sienna

Michael writes:

This August, we will have a 23-year-old German au pair coming to live with us. She will be taking care of our three boys – ages 6, 4, and 1. I am looking for transportation for said au pair that fulfills the following criteria:

(Read More…)

By on October 7, 2014

2013-Tesla-Model-S-Rear

Always wanted to own a Tesla Model S, but couldn’t get past the $71,070 base price? CEO Elon Musk has a plan to make it easier to bring one home: CPO sales.

(Read More…)

By on September 28, 2014

IMG_0347a

It’s easy to think that certified pre-owned, CPO, programs that sell used cars that meet manufacturers’ standards for quality, are a fairly modern development in the car biz, but car companies have been helping their dealers sell ‘approved’ used cars for generations. Chevrolet had its “OK” used car program. Ironically, that branding apparently had its origins in the marketing of 1918 era American Motors (unrelated to the company of the same name formed by the merger of Hudson and Nash), which Louis Chevrolet helped found after he parted ways with Billy Durant and the Chevrolet company. Louis Chevrolet would hand sign the dashboard of each American Six with the rhyming “O.K. Chevrolet”. (Read More…)

By on September 23, 2014

Honda CPO Civic HF

Honda and General Motors dealers beware: If you’re not strictly adhering to the rules laid out by the certified pre-owned overlords, you might find yourself suspended until conditions improve.

(Read More…)

By on April 22, 2014

Used cars

Currently, around 2.13 million cars will come off-lease by the end of 2014, up from 1.7 million last year. By 2016 and beyond, however, over 3 million vehicles annually will turn up on many a CPO and used car lot, replacing a long drought with an El Niño-esque flooding of the U.S. used car market.

(Read More…)

By on April 9, 2014

Cadillac-Pre-owned

New-vehicle sales are on the rise due not only to demand originally held back by the Great Recession, but by consumers coming off of their leases for their next latest and greatest.

(Read More…)

By on January 27, 2014

Car Key with Leasing Tag on White

In 2013, 3.2 million new cars and light trucks were leased in the U.S., an almost threefold increase from 2009. The 2014 Manheim Used Car Report, produced by one of the larger used vehicle auction companies, says that the auto industry will have to change the way it remarkets cars if it is going to successfully handle the increased volume of off-lease vehicles.

According to Automotive Newsthe Manheim report also warns that dealers who take in off-lease vehicles on behalf of lessors (so called ‘grounding’ dealers, “will not be willing or able to acquire the same large share of off-lease units that they have in recent years.” (Read More…)

By on January 16, 2014

OLYMPUS DIGITAL CAMERA

“You can have any car you want. So long as it’s a Toyota or Honda.”

My parents had offered to split the costs of a new car with me back in 1994. That matching policy eventually included an awful lot of disclaimers and exclusions.

“No V8! No V6! No turbo! No stick! No convertible! No small car! No! Nein! Nyet!”

I eventually settled on a red Toyota Camry Coupe that served me well for 12 years and nearly 240k miles. It’s still on the road, which is funny because my brother, who had an equal bent on the Toyonda reliability supremacy, did something unusual recently.

He bought an Audi. Then he did something even stranger than that… he bought another.

(Read More…)

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