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General News UpdateBack

NADATheir Ranks Thinned, the Surviving Car Dealerships Thrive

Only a few years ago, in the depths of the recession, the local car dealership seemed to be living on borrowed time. Franchises were closing by the hundreds as buyers stayed away from what were increasingly seen as outmoded showrooms. Now, with the economy back, auto sales are booming, and investors seemingly cannot get enough of the hardscrabble business of “moving metal.” This month, Berkshire Hathaway, Warren E. Buffett’s holding company, completed its acquisition of the Van Tuyl Group, the largest privately held dealership group in the country. The franchise car dealer is not only surviving, but even thriving. “What you’re seeing now is the culmination of lots of changes that have been building in recent years,” said Steven Szakaly, chief economist with the National Automobile Dealers Association.

Source: The New York Times

DetroitNewsNADA Keeps U.S. New Car Sales Forecast at 16.94 Million

The National Automobile Dealers Association Monday reaffirmed its outlook for U.S. auto industry sales to rise 3.1 percent to 16.94 million this year, despite slightly negative gross domestic product impact early this year because of bad weather and West coast port strikes. NADA Chief Economist Steven Szakaly, in a call with reporters, said he expects U.S. auto sales in March to hit the seasonally adjusted annual rate of 16.9 million. Sales were strong in January and February and automakers will release March sales figures on Wednesday. “We still think this is a very positive market,” he said, adding light vehicle sales will outpace overall economic growth for the sixth year.

Source: The Detroit News

SMASMA Vehicle Remarketing – Commercial Vehicle Remarketing – Demand is Outstripping Supply

There is now increasing evidence across the SMA Vehicle Remarketing network that demand for commercial vehicles, from LCVs to specialist items is now following the strong demand lead set by passenger cars.

Recent trends at SMA’s commercial auctions reveal an 89% sale conversion, followed by successive 100% conversion sales. Vendors benefitting from the demand have included Royal Mail, Activa Contracts, Lex Autolease, Alliance Healthcare and The impact has led vendors to commit to further auctions. It is something that has been well received by the ‘stock hungry’ buyers.

“We have seen a sustained build up of commercial buyer interest from the end of Q4 2014. It is a momentum that has continued to build to the point where in key stock areas; it would be fair to say we are short of stock.

“Buyer demand is also seeing an increase in digital activity. We have established a great reputation for the effectiveness of our digital channels in remarketing specialist commercial vehicles. Now, we are seeing increased digital activity in core commercial stock as well,” reflects SMA National Operations Director, Eddie Thomson

Posted by Sue Robinson on 03/04/2015