The auto industry has always reflected the economy that supports it and most auto industry insiders agree that the recent consolidation of new car dealerships was necessary to maintain the equilibrium between supply and demand.  Unfortunately, the sensitive balancing act between new car supply and consumer demand was thrown off by the “success” of the Cash For Clunkers Program which artificially depleted new vehicle inventories.  Auto dealers had already cut back on new car orders to accommodate reduced sales volumes, and floor plan limits capped by shrinking working capital reserves limited the amount of new and used cars that auto dealers could keep in stock.  As a result, car dealers have not been able to timely replenish their sold inventory to maintain sales momentum and preserve profitability.  More urgently, dealers are scrambling for a way to stay ahead of fixed expenses that have already been cut to the bone.

Many automotive advertising agencies predicted that the Cash For Clunkers Program would produce an artificial wave of business with the associated “peak” in new vehicle sales during August followed by the “valley” in September that could continue through the balance of 2009.  Recent SAAR statistics project an adjusted annual sales rate of 8.8 million new vehicles in September proving that their worst fears have been realized.  Successful auto dealers focus on solutions rather than problems.  As a result, used cars have taken on a new importance with a number of creative techniques being applied to acquire used cars with a priority of selling used cars vs. new cars that are in short supply. Read the rest of this entry »

Everyone knows that Certified Pre-Owned Vehicles are late model used cars or used trucks that have the same - or even better - warranties than new cars.  Car dealers are responsible to inspect certified cars to confirm that they have not been in an accident, have no body damage or paint work, are within established year and mileage limits set by the factory that is sponsoring the certified used cars program and that the dealer has reconditioned the vehicle to look and perform like a new car.  Special auto financing terms are offered on many certified vehicles and customers who want to buy used cars with all of the benefits of buying a new car have found that certified used cars represent the best of both worlds for the car buying public. 

Well, if you were one of the few that didn’t know about Certified Pre-Owned Cars you do now! Now that we are definitely all on the same page, let’s discuss why certified pre-owned cars are the best way to go for consumers who are buying cars and for auto dealers who are selling cars. Read the rest of this entry »