Dealers

CarMax originates $15 million in subprime loans in latest quarter

11:45 am U.S. ET | June 24, 2015

CarMax's finance arm originated about $15 million of subprime loans in its most recent quarter ended May 31. CarMax Auto Finance has originated almost $90 million in subprime loans since it began a test program in January 2014 to learn more about customers that it typically had handed off to subprime lending partners.... Read More »

BB&T launches flat fees

11:45 am U.S. ET | June 24, 2015

Auto retailers working with BB&T Dealer Finance soon can expect to be paid flat fees, rather than dealer reserve, for arranging customers' loans. BB&T will launch a nondiscretionary dealer compensation program on July 1.... Read More »

RICHARD TRUETT

BLOG: 'Multiphysics': Engineering's new frontier

11:30 am U.S. ET | June 23, 2015

The creation process that was once fairly simple -- design blueprints to prototypes to testing to validation to production -- now is often extremely complex, involving engineers from several disciplines who must think in areas outside of their training.... Read More »

VIDEO: How dealer Bill Perkins turned failure into a mission

12:01 am U.S. ET | June 22, 2015

After a short run with his first dealership, Bill Perkins vowed to someday help others get into the business – if he got a second chance. Thanks to a valued mentor, he got that chance. Perkins now runs two stores anchored in his own principles: inspiring young people, being part of the community, taking an interest in employees’ lives, and creating a culture where people want to succeed.... Read More »

Must dealers steer clear of credit repair?

12:01 am U.S. ET | June 22, 2015

The N.Y. attorney general's office reached multimillion-dollar settlements with some dealerships, saying they sold credit repair and ID-theft products for as much as $6,000 and often without the customer's knowledge. The products in question cost the dealerships $179 or $279.... Read More »

Cox goes bold with giant Dealertrack deal

12:01 am U.S. ET | June 22, 2015

Cox Automotive's purchase of Dealertrack creates a software and marketing juggernaut with products and services that, in one way or another, touch every franchise dealer in America. It represents marching orders from the boss of Cox Enterprise: Think big.... Read More »

BEST PRACTICES

Museum, diner celebrate Ford heritage and family-owned store

12:01 am U.S. ET | June 22, 2015

Sanderson Ford in Glendale, Ariz., has a 1950s-style stainless steel diner and a 15,000-square-foot museum of classic cars and memorabilia. The facilities help the dealership connect with the community, hosting fundraisers, car shows and other special events.... Read More »

Dealers

12:01 am U.S. ET | June 22, 2015

Dealers featured this week include Mike Jensen and Joe Cecconi with Dodge at Joe Cecconi's Chrysler Complex (Chrysler-Jeep-Dodge-Ram) in Niagara Falls, N.Y.; Daryl Ingold, dealer principal of Burlington Honda in Burlington, N.C.; John McKoane and Caroline McKoane-Ritchie, owners of Clawson Honda of Fresno in Fresno, Calif.; and David Baird, president of Marshall Ford in Marshall, Va.... Read More »

Chevrolet's thrill ride in Vegas

12:01 am U.S. ET | June 20, 2015

Nearly 3,000 Chevrolet dealers and dealership employees spent two days in the desert for the annual business meeting. But, for a change, they didn't stay holed up for hours in a windowless ballroom. Instead, they got to tear around a racetrack at nearby Spring Mountain Motorsports Ranch, flogging pre-production 2016 Camaro coupes and Malibu sedans.... Read More »

Daimler sells 15 German Mercedes dealerships to Chinese investor

June 19, 2015 17:03 CET

Daimler said it is selling 15 Mercedes-Benz dealerships in eastern Germany to a unit of China's Lei Shing Hong Group in a bid to lift profitability.... Read More »

Honda confirms 8th fatality from exploded Takata airbag

6:34 pm U.S. ET | June 19, 2015

Honda confirmed an eighth fatal victim of a ruptured Takata airbag inflator after completing the investigation of a September crash in Los Angeles.... Read More »

CarMax average retail selling price dipped 1.6% in Q1

1:09 pm U.S. ET | June 19, 2015

The average retail selling price of a CarMax used vehicle dropped 1.6 percent to $19,851 in the company's fiscal first quarter that ended May 31.... Read More »

La. exec sentenced to 11-year prison term for $1.2M ad fraud of dealerships

4:03 pm U.S. ET | June 18, 2015

A politically connected media firm owner who billed Louisiana dealerships for fictitious advertising that cost them more than $1.2 million was sentenced to more than 11 years in prison Wednesday, the Department of Justice said.... Read More »

Tom Benson, New Orleans dealer and Saints owner, ruled competent by judge in battle with heirs

6:00 pm U.S. ET | June 18, 2015

Tom Benson, a New Orleans and San Antonio dealer and the owner of the NFL's Saints franchise, was found competent to manage his own affairs by a Louisiana judge overseeing part of a fight by spurned heirs trying to oust the billionaire from control of his sports and business empire.... Read More »

Toyota tops in retained value, Edmunds.com awards show

12:01 am U.S. ET | June 18, 2015

Toyota Motor came out on top in Edmunds.com's annual Best Retained Value Awards, nabbing a brand-level award and four model-level awards. The awards recognize brands and nameplates that have the highest projected residual values after five years compared to their average transaction prices when sold new.... Read More »

N.Y. targets dealerships' sale of credit-repair, identity-theft products

12:01 am U.S. ET | June 17, 2015

Paragon Honda and its two sister stores have agreed to a $13.5 million settlement with the New York attorney general's office over the alleged unlawful sale of credit-repair and identity-theft prevention products, part of a broader crackdown on deceptive sales practices by dealerships.... Read More »

Q&A

Why longer loan terms are not a big concern

12:30 pm U.S. ET | June 17, 2015

The average auto loan term on a new car has grown to more than five years. And that has some industry watchers worried that extended loans will keep consumers out of the market longer, lead to negative equity and increase default rates. But Michael Collins, senior vice president of F&I solutions at Dealertrack, isn't concerned that the trend toward longer loans is necessarily putting the market in danger.... Read More »

Lawsuit could test the F&I videotape defense

11:45 am U.S. ET | June 17, 2015

A videotaped closing in the F&I office might be key to a big court case for two dealerships in Alabama.... Read More »

HANNAH LUTZ

BLOG: The advantages for going online with F&I

12:00 pm U.S. ET | June 17, 2015

To reduce the push and pull around F&I product options and avoid surprising consumers with unexpectedly higher monthly payments as F&I products are added on, dealerships should introduce F&I online.... Read More »

JAMIE LaREAU

BLOG: A case for breaking the 300% rule

11:45 am U.S. ET | June 17, 2015

Most F&I folks subscribe to the “300 percent rule”: Offer 100 percent of the products to 100 percent of the dealership's customers 100 percent of the time. But a recent conversation with a friend indicates the rule doesn't apply to 100 percent of cases.... Read More »

Penske shuffles some upper management in accounting

6:06 pm U.S. ET | June 16, 2015

Penske Automotive Group has a new CFO, J.D. Carlson, formerly senior vice president and corporate controller for the dealership holding company. Carlson replaces David Jones, who resigned to accept a similar position with another company.... Read More »

RICHARD TRUETT

BLOG: The dark side of electronics

11:30 am U.S. ET | June 16, 2015

As automobiles age and the quality of replacement parts for the electronics diminish, repairs become difficult, frustrating and expensive.... Read More »

Daimler to sell Mercedes dealerships to Chinese firm, report says

June 16, 2015 17:31 CET

Daimler is set to agree a deal to sell some Mercedes dealerships in eastern Germany to China's Lei Shing Hong, a German newspaper reported.... Read More »

VIDEO: Denver dealer banks on service bays, crusades for family-owned stores

12:01 am U.S. ET | June 15, 2015

After the untimely death of her boss and mentor, Mary Pacifico-Valley has built a 3-franchise chain with fixed ops as its foundation. She is also waging a personal crusade for the viability of the family-owned dealership while walking the talk on an issue where she feels the industry needs to "step it up."... Read More »

Cox-Dealertrack deal to create full-service dealer software powerhouse

7:42 am U.S. ET | June 15, 2015

Cox Automotive's $4 billion blockbuster acquisition of Dealertrack Technologies brings together software giants with complementary strengths and little product overlap, the CEOs of the two companies said today.... Read More »

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