In response to National Automobile Dealers Association’s chief economist Paul Taylor's comments, "Used Market Helping to Spur New-Car Growth" (Auto Remarketing Today, 12-3-10), I thought I would offer a bit of my own analysis. The increase in new vehicle sales is much easier to understand because the public buying decision has been so dumbed-down: $0 down $0 interest for as many months as you want! This alternative to fleet sales and endlessly evolving lease deals on the car makers part is very practical because "borrowing" sales now actually builds future availability of used product (Nissan Altima, Hyundai Sonata, and Honda Accord for example). And when these $179/mo models begin to come back to market, the very same marketers will already have in place a slightly different segment of new models at attractive discounted rates, there by repeating the cycle! Mr Taylor's analysis as a "shortage" in used vehicles should really have been branded as a shift in supply!
I have been attending and participating in a new podcast, "Auto Transport Intel" that Jay Wertzberger produces and broadcasts with Ty Thompson. It drills in on automotive transport and is dedicated to improving the industry. A topic I explored with them recently was focused on not how to get new business as a transporter but a revealing look at some of the reasons we can't get new business. The theme was that if we look at ourselves with open eyes and ask if we feel if we're putting our best foot forward, what little things could we do to improve our professional profile... and that triggered the theme, "reimagining service". Over the next several weeks, I'll define Reimagining Service in more detail, and we will dig in on the relationships that the car auctions have with vehicle transporters. Stay tuned!
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