By on January 25, 2019

Cox Automotive, in conjunction with Automotive News, just released its Retail Brand Scorecards Study for 2018. The survey is interesting in that it ranks the perceived value of automakers by assessing how desirable they are to dealerships via an A-through-F grading system. Though, as engaging as it might be to look at these traits from a highly specific viewpoint (how dealerships see you in relation to specific manufacturers), we’re not sure how useful the average consumer will find them. Dealers and industry geeks, however, may want to take notice.

“This study represents a comprehensive review of brands from a unique perspective — how well they support the success of dealers,” said Cox Automotive Chief Economist Jonathan Smoke. “As we assembled the data and began to see how the brands performed differently, we started looking at the results as grades in high school, where the most well-rounded and high-achieving students are those who perform well across a wide range of disciplines. With that scorecard framework, we found a clear set of brands that are honor-roll worthy, as they are in essence the hardest-working, most successful students.”  (Read More…)

By on March 1, 2018

bark lecture

Over the years, every single time I’ve written about dealers and questionable business practices, the feedback from readers is invariably the same — kill the dealer model. Nuke it from orbit. We would all rather deal directly with the manufacturer than some slimeball franchisee. We want to order cars exactly the way we want them, down to the color and trim, and we want them delivered directly to us without the hassle of spending the day at the dealer saying “NO” to Tru-Coat.

Well, I should clarify — not all readers feel this way. Any reader who works for (or has previously worked for) a dealer will tell us all that we need the protection from OEMs that franchise agreements provide the customer. They tell us that competition in the marketplace is good for the consumer, and that it helps the local economy to have franchises around America.

But what would really happen if OEMs got their way and were able to sell directly to the consumer? What if all the dealers disappeared tomorrow? Would you be happy with the result? Or would it damage the customer? Who would benefit, and who would suffer under such a model? Let’s look at it objectively.

(Read More…)

By on October 3, 2017

Genesis Boutique Downtown Toronto Canada - Image: Hyundai CanadaHyundai’s Genesis Motors offshoot intends to finalize its transition into an entirely separate U.S. dealer network within the next three years.

The process of building an undetermined number of distinct Genesis outlets has not yet begun, but it’s clear the brand is well aware of the limitations with which it’s currently operating.

“The reality is, many, many luxury customers tell us they love our products, they’re amazing, but I’m not going into a Hyundai store to buy it,” U.S. Genesis boss Erwin Raphael tells Automotive News.

No kidding. (Read More…)

By on September 18, 2017

Dealer Showroom

Car dealerships are an American institution. Often controlled by a patriarch with an unusual amount of sway in the local community (and their sometimes cosseted children), dealer franchises dot the country’s landscape like moles on a back. Isolated near exit ramps, they serve as gleaming beacons of civilization as you traverse through long expanses of wilderness on a road trip.

North America wouldn’t be the same without them but, according to one automotive regent, irreparable change is coming to the dealer networks we’ve become begrudgingly accustomed to. Bill McDaniels, president of McDaniels Automotive Group, runs a half-dozen stores selling selling Acura, Audi, Porsche, Subaru, and Volkswagen-branded vehicles in South Carolina. He’s one of those automotive viceroys mentioned earlier, right down to having his son as the chief operating officer for his business, and he’s convinced the era of family-owned dealerships is almost over.

Is this one man’s paranoid delusion or an astute observation of industrywide trends?  (Read More…)

By on June 22, 2017

lynk-and-co-model-02

Geely may be pushing the Lynk & Co brand as the most connected and tech-savvy in existence but its senior vice president Alain Visser believes its sales strategy should remain simple. With cars supposedly rolling out in Europe and North America for 2019, Lynk & Co is only planning to offer an extremely limited number of trim choices that rotate seasonally. It’s a fine strategy for an unknown element breaking into the marketplace but it does omit the ability to rake in the additional dough via optional extras. However, it also permits for lower production costs and a flat rate Lynk & Co claims buyers won’t need to bother negotiating.

How convenient for everyone.  (Read More…)

By on April 10, 2017

Couple buying cat Courtesy chronicleherald.ca

Fine print exist almost entirely to float something egregious under the radar. People get law degrees and spend countless hours decrypting the tiny text to see who got the better of who in a courtroom. If you see fine print in an advertisement, it usually means the drug you desperately need has life-ruining side effects, or the deal that seems too good to be true has horrible stipulations. It’s more or less a legal way to lie to you.

Dealerships use this all the time with the classic triple zero gimmick: NO Money Down, NO Factory Financing, and NO payments until October!

However, if you take a peek below the giant block lettering promising you the greatest deal of a lifetime, you’ll see infinitesimal print that reads, “With Approved Credit to Qualified Buyers.” If you have to wonder if you are a qualified buyer, I can already assure you that you are not. Blessedly, a new website called Disclaimers Online wants to give consumers a sturdier leg to stand on.  (Read More…)

Recent Comments

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