A lot of bubbles burst over the past two years besides those on Wall Street, the Banking Industry and Real Estate.  Auto Leasing companies absorbed losses in off-lease vehicles due to overly optimistic residual values, (the guaranteed amount that they agreed to buy back the vehicles for at the end of the lease which was factored in when the lease was originated), when the auto industry shrank along with the economy.  The resulting losses in the wholesale market and lack of ability for auto dealers to retail out of the lease returns forced domestic manufacturers and independent leasing companies to either cancel their leasing programs completely or to reduce their residual values so low that the payments were more than conventional financing.  Basically, for most lenders and customers, leasing effectively died last year but it is staging a recovery of sorts that shows some life in the option that might interest payment buyers and automotive advertising agencies anxious to find ways to offer more for less - per month that is.

Chrysler, for example, has announced that they will be putting their toes back in the troubled leasing waters with some sub-vented leases, (subsidized residual values above expected resale at lease end and reduced money factors), that will offer competitive payments on some of their new models.  All of the details haven’t been released but the story has been announced in the mainstream media and you can expect factory marketing campaigns to start mid-September. Read the rest of this entry »

The auto industry has changed, is changing and will always be changing!  For that matter, it is widely accepted that the only constant in the auto industry is change.  On the other hand, human nature has never changed, is not changing and never will change.  Social media relies on human nature to attract an online community of likeminded individuals who come together to share their experiences.  Car shoppers use sites, like http://everycarlisted.com/ and their related social networking / blogging site http://autoindustryinsights.com/ , to talk to people who are looking to buy a new car or more often to buy a used car or even to sell a used car rather than trading it in to an auto dealership.  The ability for consumers to learn from the experience of their online friends before, during and after their sale or purchase of a new car or a used car provides a level of confidence in the buying process that is not offered by an auto dealership’s website or brick and mortar facility.  Simply put, people like to do business with people that they like.  The adversarial relationship between even the best meaning car salesperson and an understandably defensive car shopper makes it difficult to make friends whereas social media is a proven method to make friends based on their common interests - like trying to buy a car! Read the rest of this entry »

Before you can learn how to market your auto dealership utilizing video you must first understand why you want to!  The automotive advertising industry has always been driven by technology.  The retail auto industry that it serves has similar ties to technology with the Internet representing today’s most relevant example.  Given the economic and government mandated consolidation of the auto industry, the World Wide Web is hosting the next generation of “virtual auto dealerships” and video has proven to be the most recognizable address on the Internet Super Highway.  Today’s new car buyers visit three to five virtual showrooms before they venture out into the “real world” to purchase a new vehicle.  Used car buyers search auto dealer’s used car inventories online in even greater numbers with many turning to third party inventory based websites - like http://www.everycarlisted.com/ - offering free “For Sale By Owner” postings to add to their shopping list along with the auto dealership inventories linked to the sites to extend their online presence. Read the rest of this entry »