Showing posts with label blog. Show all posts
Showing posts with label blog. Show all posts

Friday, May 3, 2013

Your SEO works. Now what?

You have paid a service or used staff to finally get your SEO cooking. Your ads, offers and/or business listing is moving up in local search requests. Phone calls and in-store traffic is increasing monthly. Now what?

I do quite a bit of research and subscribe to domestic and international newsletters on buyers shopping habits, internet and mobile usage and a host of other advertising and marketing topics.

But, today there were two stats that really caught my attention. The first, there are 7 billion people on earth and there are 6 billion mobile users. The second, 75% of consumers access smartphones in-store: Forrester Research.

If you are a business owner with a retail location showrooming is getting worse and costing you sales you don't even know you missed. Now that's scary. What you don't know won't hurt you but, in this scenario what you don't know will kill your business. By the way if you don't know what showrooming is stop now and find out before you go out of business.

As a marketer how do you best use these stats to help your clients? If you have no mobile or digital solution for your clients you better get several before they leave you, asap.

Businesses offering free wifi to keep shoppers in-store longer and/or as a customer service feature your competition thanks you. If you have no real value for those shoppers while inside your store that "just looking" means found it down the street and thank you for your help.

Your SEO works. Now what?

Tuesday, April 16, 2013

TO (Turn Over) - Why Does It Work?

Auto dealers continue to use this tried and tested sales technique, the turn over. Here's how it works. Once the salesperson has helped you decide on a car you begin to negotiate the purchase price.
 
The salesperson will spec out (list the equipment) the car on a work sheet. Also included on the worksheet is the MSRP (manufactures suggested retail price) and the list price (price that includes any added items). Next the salesperson spins the worksheet around, explains the list of items and highlights the selling price for the vehicle and asks for your okay or acceptance, a signature.

There is a moment of silence. The salesperson waits eagerly for your reply to the sales offer. After you regain your composure from the shock of the total selling price you make your counter offer. At this point the salesperson explains that he/she cannot make the decision to accept your offer. It must be taken to management  and if you'll just okay the price he/she  will take it to management for acceptance. Dealer management does not  let the salesperson know how much profit is acceptable per sale on any vehicle. Some salespersons may go to these extremes to test your seriousness prior to going to management. They are, get your credit card for a small deposit, get a check or get a cash deposit.

Once you meet the minimum test for how serious a buyer you are the salesperson will then take your offer to management for approval. Rarely is your first offer accepted. The salesperson may go back and forth with your counter offers until you are stretched to the limit and ready to walk out.

Before the dealer will let you walk the sales manager will come over to use his/her salesmanship to close the sale, the TO - turn over to management. This sales technique works because the sales manager is an expert at closing and buyers are more responsive to authority. The sales manager can further reduce the price if needed, persuade you to buy a more affordable vehicle or offer you a special price on a "Managers Special."

If the sales manager can't get you to buy you may be turned over to the general manager before you leave the dealership. He can offer even more price reductions. Auto dealers have you talk to managers because the odds of you returning to buy are not in their favor.

Questions to ask the salesperson: Will you have to go back and forth to management for approval? How can I shorten this process? You have sold this type car before, what's the lowest price that will be accepted? May I speak to the sales manager? Will I get the best price from your web site?

Wednesday, March 27, 2013

Caution: Inclement Weather Look Closer

It was a cold rainy Thursday and a friend asked that I accompany her on an appointment to test drive a Nissan Murano.

We arrived at the dealership and a 2012 Murano was parked right where we could not miss it with a huge sign across the front windshield displaying the model, year and discounted price. It is a 2012.

The salesperson came out, a few pleasantries exchanged and we took a walk around the car giving the exterior a good once over. My friend got in the passenger seat, because salesperson must first drive car off the lot, and I sat in the backseat. Off we went on the appointed test drive route.

At the designated safe spot for a driver change, my friend took the wheel. She and the salesman discussed features exchanged a few questions and answers and back to the dealership we went for the heavy lifting - negotiations.

Since my friend had done her homework, got pre-approved for financing and knew her firm buy figure, the process didn't take but one back and forth and one manager visit to say welcome.

After about an hour off she went to the F & I and the Murano to prep for delivery. Contracts were reviewed, service contracts presented and declined, protection package presented and declined, credit life presented and declined, etc. You get the picture. Buyers order and contact signed and another happy Murano owner walks out the door with the delivery person.

Now, the delivery person took her out to the car for features and equipment familiarization and another walk around the car.

It stopped raining and I came out to take a better look at the exterior and low and behold on the hood were several spots that at first glance looked like just a few rain spots. Wrong. Ran my finger over each one a found deep service scars. At about this time the general sales manager came out to thank her for the business and asked if all went well.

I showed him the several blemishes he rubbed them agreed to have them removed and had salesperson get a We Owe form. This form is used to schedule appointment for car to be brought back buffed and whatever else is needed to remove the imperfections.

This could have been prevented if we had not been distracted by the cold and rain. This could have happened if it were night time. Caution: in inclement weather before you sign the contract have the car cleaned, brought inside with good lighting and you conduct a thorough walk around paying extra attention to painted surfaces and wheels. If it's dark have the car taken inside for a good look.

My friend brought the car back as scheduled given a loaner and asked to come back in a few hours. A few hours later the dealer called and said the car would have to go to a paint specialist. She loss that day, the weekend and Monday of the following week.

It's Tuesday around 6:15pm and she's waiting for the dealer to bring her new Murano over as he said in an earlier call today. Caution: in inclement weather look closer before you buy.






Sunday, March 3, 2013

The Test Drive - Where You Take Control

Before you make your next new or used car purchase take it out for the all important road test or test drive. During this time you will either love or hate that new ride. The test drive is the most important part of the buying process. The time when you take control of the drive.

Have the salesperson demonstrate the location and operation of all instruments, i.e., lights, stereo, remote mirrors, steering column tilt and seat adjustments, USB port, bluetooth pairing; safety features blind spot warning, lane departure, backup camera, etc. before leaving the dealership. For safety reasons make all your driving adjustments prior to taking the test drive. The salesperson will make a copy of your drivers license and leave the copy with management. This has become a common safety procedure because of auto hijackings of salespersons while out on test drives. The salesperson will also drive the car first off the lot.

Take the test drive over several types of terrain and driving conditions. Test the cars roll in curves, how much you lean vs. the car compensating for the force of gravity in curves. Check the glare from dash on windshield. Is it distracting? Listen for wind noise around the doors, side windows, front windshield and sunroof, if there is one. Listen for road noise created by the tires and transferred to the driving compartment. Perform a high speed merge. Does the car accelerate quickly enough to get you out into traffic safely? Find an area with no cars to perform a panic stop. Does the car swerve or come to a stop in a straight line?

When driving over rough roads, speed bumps, railroad tracks, etc., do you hear any unwanted rattles, squeaks or other annoying sounds. By now you should also determine if the shoulder safety belt still feels comfortable. Did the belt rise up under your neck? If so, see if it can be adjusted from the mounting on the car’s frame. How are the seats feeling at this point? Do you need to readjust the steering column tilt? Can you see all the necessary instrumentation? If you’re into music, how is the sound system performing? Can you hear all the speakers? Get demonstration on setting up the sound system.

Pull over and let the salesperson drive for awhile and you sit in the back. Check for seating comfort, noises, head and leg room, controls that your children may operate, windows, door locks, etc. Take over driving again and this time pull into a parking lot. Test parking straight in, at an angle and parallel. Did you notice any blind spots? Could you easily determine the front and rear distances to the next car?

Your test drive should be as close to your every day driving conditions as possible. Take 45 minutes or more to really learn the feel and handling of the car. Remember, you’re going to spend a considerable amount of time in your car. So, it’s very important that you take as much time to thoroughly test the car to be sure it will meet your expectations and needs.

With the recent hands-free driving laws check connecting your cellphone with bluetooth and test making a call. That is if your car has these features.

Questions to ask the salesperson: Does this car have a donut or full size spare tire? Where are the hidden compartments for spare change, cup holders, etc.? How do I set the clock? How do I set the radio? Where is the fuse box?

Monday, February 4, 2013

Auto Residual Values


Residual value is what your lessor predicts the leased car will be worth at the end of lease term. Residuals are predicted by using actuary tables based on previous resale values of like vehicles. Some cars will maintain their value and others will not. The higher the cars residual value the lower the monthly lease payment. The higher the cars residual value the higher the end of the lease purchase option. Lessors will vary the residual value to compete for your lease business. This means that the car you want to lease may have different residual values established by each Lessor. The residual value directly affects your monthly lease payment and must be disclosed to you. In the majority of leases the residual value is also the end of lease purchase price. So, a high residual value will lower your monthly payment but it will cost you more to buy the car under the end of lease purchase option.
NOTE: Residual value will lower your monthly payment by reducing the amount of the car's value you use. Example: 
Cars value is                     $10,000.00
(-) residual value                  4,000.00
                                   $ 6,000.00*
*Car's new value that monthly payment is calculated on. 
Residual values is one of the most abused parts of auto leasing. Companies would inflate the future value of a vehicle to lower payments and be competitive. Inflated Residual Value is one of the main reasons auto leasing almost died.
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Sunday, January 20, 2013

Auto Dealer Incentives - The Real Way to Get the Best Deal

Auto manufacturers entice their dealer body to sell more of a particular model by offering enormous monetary incentives. These are unadvertised dollars that go directly to the selling dealer. The incentive is time sensitive based on the dealers performance against quota and vary by region and model.

 Makes you want to run right out and buy a car doesn’t it?

As a prudent shopper you can begin to see why the "best deal" is such an elusive animal. Unless you truly study the market, live in the right region, pick the right model and buy during the designated time frame from the dealer that meets quota you really don’t have any chance of beating the system.

The car dealers potential loss of huge incentives are a major reason why several people can buy the exact car from the same dealer and get different prices. Some dealers are more willing to pass along a portion of their incentives to further reduce your price to earn your business. If you negotiate a great price and get the manufacturers rebate and before you walk out the door the dealer offers you further discount, you’ve done a good job. Now, do you really only want $50 over invoice? Don’t expect dealers to give you all their incentive dollars. That’s like giving up your Christmas or performance bonus.

Keep this thought in mind, car dealers are in business to make a profit. They should be allowed to make a profit. But, you don’t want to be the one they make all of the profit on.

Questions to ask the salesperson: Does this model have a dealer incentive? If so how much? When does it expire? How close are you to meeting the qualifying quota? Did you meet quota last month? Which models have a manufacturers rebate and dealer incentive?

Thursday, January 17, 2013

Are Car Salespersons Better or Worse?

If you want to see if you have the mettle to survive in sales try selling cars. Not only are you up against a more knowledgeable, sophisticated and intelligent car buyer you’re also matching wits with management.
                                                                                          

Turnover among car salespersons is over 50%. The work days are ten to twelve hours, work week is 6-7 days and filled with hours of idle time waiting for a customer to come in or call. Commissioned sales is the staple pay plan for car salespersons and the pay plan changes at management’s discretion. If you don’t sell you don’t get paid. Rarely will a buyer come back to purchase so making the deal today is the standard order of business.

Car salespersons are the butt of numerous jokes and the position is not one a person aspires to become. Jumping from one dealership to another is a common practice with car salespersons because of pay plan and management changes.

Even under all this adversity car salespersons are getting better at their jobs. The NADA ( National Automobile Dealers Association) has established an excellent sales training and certification program to better prepare the salesperson for the rapidly changing auto industry. Manufacturers provide satellite transmitted product training courses directly to the dealership. Online and computer program are also provided by the manufacturers to dealerships to assist in salespersons training.

On site and off site seminars are provided by special finance companies, leasing companies, and computer hardware & software providers to keep the salesperson abreast of these companies’ products and services. Consultants are brought in to enhance the salespersons people and interpersonal skills. iPads, tablets, laptops and smartphones are the the new tools of the salesperson.

Training today’s car salespersons is taken very seriously by dealership owners. Owners are acutely aware that the new type of car buyer is not going to tolerate the sales tactics of the past. Often middle management at the dealership forgets the owners’ desires because of the everyday pressures to produce. The car business is very competitive and there are millions of dollars at stake each year.

The car salesperson is a pawn in the sales process. Seldom will management give the salesperson the autonomy to sell cars the way they know is right. So, if you come across a salesperson that seems to be from the old school more than likely it’s a function of that dealers’ unchanging management style.

Today's customer is better prepared, more knowledgeable and less likely to except less than superb treatment from a salesperson. Customer satisfaction during and after the sale is #1 priority.

Questions to ask the salesperson:  What type sales training have you completed? How long have you been selling cars? How long have you been with this dealership?

Tuesday, January 15, 2013

The Credit Report - Is it a Real Reflection of You?

The single most critical document used to determine your credit is your credit report. It's also the most abused source of information. Is your credit report an accurate reflection of you and your buying habits? More important, is it a true reflection of your past debt payment record?


With identity theft on the rise you may want to review your credit report every six months.

There are 3-4 major credit bureaus that businesses report your payment history to on a monthly basis. How your credit history is reported will make the difference between your getting a new or used car loan as well as at what interest rate. Your credit report determines if you are a very good or very poor credit risk. All that's needed to access this information is your social security number.

Some of the information listed on your credit report is: name of business that extended you credit, date opened, date closed, type account, terms, high amount loaned, balance, amount past due, payment profile, inquires from other businesses, ex-spouse accounts, judgments and dispute comments. As you can see if you don't know what's on your credit report you could be denied a car loan because of inaccurate information.

Within the volumes of information being sent to credit bureau's daily costly mistakes can be made. Computers make it very easy for auto dealers to access your credit report while you sit there or you're out on a test drive.

If you're refused a new or used car loan the lender is required to send you a letter of denial. This letter lists the name of the credit bureau(s) that provided your credit report. The salesperson will not and should not discuss the specific reasons for denial with you.

Under the Fair Credit Act you are entitled to a copy of your credit report. The report is free if you enclose a copy of the denial letter. You may also request a copy by calling the credit bureau and pay their fee.

Before going to purchase your new or used car get a copy of your credit report and review the information for accuracy. There is a dispute procedure outlined on the back of the report. You should review your credit report yearly.

It is not wise to visit several dealerships and let them run credit reports because numerous inquires are not looked upon favorably by lenders.

Questions to ask the salesperson: At what point do you run a credit report? If I give you a copy of my drivers license will you run a credit report? Do you run credit reports without written permission? What credit bureaus do you use?

Monday, January 14, 2013

Can you really use the Web to buy a car?

The internet has the most comprehensive collection of automobile information than any place in the world. You have instant access to practically every auto magazine, auto manufacturer, used car auctions, crash and safety information and auto dealers.

The only thing you can’t do is take a test drive.

The internet is an auto buyers dream come true if you’re the type that wants all the facts and figures before you go to buy. Let me walk you through a fact finding adventure for the car, truck, van or
minivan of your dreams.

You can start by going to the web site for Kelly Blue Book to get your dealer invoice and resale value. Then you’ll click to the National Institute of Transportation and Safety to review crash test results and other safety issues pertaining to your automobile. If you want to know how Consumer Report rates your automobile jump to it’s site and from there select your favorite car buff magazine to get it’s road test results.

You are now ready to pick up a brochure so just hop to the manufacture’s web site and read all about your dream car, with pictures, all in the privacy of your home or office. Have you noticed you haven’t been harassed by a salesperson?

Now you want to know the closet dealership to you. From the manufacturers site you will click on Dealer Locator and instantly get the dealership information.


If the dealer’s web site was properly designed you could search their new and used car inventory to find your car and get the dealers selling price or spec out your car and request the price. You found it, you like the price and you want to buy it. You’re at the moment of truth. Do you really want to visit the dealer? Just send an email and ask to have it delivered.


You can also complete a loan or auto lease application to get approved for financing from several lenders web sites or on the dealers.

As you can see you really can use the internet to buy your next dream car. But you still cannot test drive it.

Questions to ask the Cyber- salesperson via email: Will you deliver to me? Does this price include all costs except tax, tags and titling fees? How do we dispose of my trade?

Saturday, January 12, 2013

Car Buying Services - Do they work?

                                                                            
Going one on one with a salesperson is a no win proposition for you. Salespeople don’t go one on one with you directly. They always have a sales manager and/or general manager available to help them close the sale. So, why shouldn’t you have some help to get you the best price?

                                                                             

There are numerous groups that assist car buyers with purchasing. They are categorized as buying services. Be careful! In some states buying services are illegal. The buying service uses the effect of representing large groups to get auto dealers to offer special discounted prices. Auto dealers are looking for an edge over their competition and will work with buying services to make extra monthly sales.

Most of your large discount stores offer auto buying services for it’s shoppers. So do banks, credit unions, department stores and shopping clubs just to name a few.

If you decide to join a buying service make sure that they can save you money on all the dealer’s models. Compare the price of the buying service with what you can negotiate on your own to test the buying services prices. All makes of cars, trucks, suvs, vans and mini vans should also be available to you at any time, not just during a special time of the year.

The theory with a buying service is they can go to auto dealers and negotiate a selling price with the dealer on behalf of it’s members. Each member is given some type of identification to present to the dealers. It identifies a designated person to see and the price the member should be quoted.

Some buying services will want a fee to help you. You should not have to pay a fee to join nor a fee to get a quote from the dealer. In some states if you pay a person or group a fee to assist you in buying a vehicle it’s considered brokering and that may be illegal. Check with your local motor vehicle administration for the laws in your area.

Being a part of a very large group can leverage your buying power with auto dealers to help save you money. The amount saved is determined by the number of real buyers in the group and the buying service’s negotiation expertise.

Online buying services  make it easy to get information and locate cars. The pretty much operate like all other buying services.

Questions to ask the salesperson: Do you work with any buying services? Which ones? What types of discounts will we get? What vehicles are not included? I’m not a member, but will you give me the same discount?

Friday, January 11, 2013

After Market - Do You Really Need This Protection?

Selling after market products, rust proofing, paint sealant and undercoating is a profit center at auto dealerships. They make it seem like no protective measures have been taken by the manufactures. Some dealers apply all these products to each new vehicle. It's used as a negotiation tool.

When was the last time you saw a commercial for rust proofing? Auto manufacturers treat and seal most metal parts during the auto assembly process. I've been told that introducing a secondary rust proofing process will induce rusting because the metal has been penetrated in the injection process; and, depending upon the uncontrolled environment in which the procedure is done, moisture can be trapped between the metal and the rust proofing product.

Paint sealant is an extraordinary product. You can easily maintain that new car finish for years if it is applied properly and reapplied when needed. Most minor scratches are not seen. The Teflon based paint sealant makes car cleaning a breeze and protects the car from the elements. You can wipe away bird droppings and road tar with very little effort. But, the real question is do you have to pay a dealer $895 or more when a $4.50 bottle and some of your time will do the same?

Undercoating has been marketed by dealers in the past as a cure for road noise. The product is sprayed over the undercarriage and has a sticky tar like appearance. Again, auto manufacturers do an excellent job in applying protective coatings and treat the metal during the assembly process. If undercoating is done in an uncontrolled environment moisture will be trapped and over time will cause damage.

After market products can be beneficial in maintaining the appearance of your new vehicle. But, dealers can apply all these products for a combined total of approximately $150 or less. It's in your best interest to read the owner's manual to find out what protective measures the manufacturer has taken, what and how metals were treated and what is the recommended method for upkeep.

Questions to ask the salesperson: Why did you apply the protective package to this vehicle? What protective measures have the manufacturer taken? May I see your application area? Does it really cost that much to apply these coatings?

Thursday, January 10, 2013

What You Must Know About Lease Early Termination

If you do not keep your leased vehicle for the entire term agreed upon then you have early terminated. Some lessors will not let you early terminate under any conditions. There is usually a minimum requirement of keeping the lease for 12 months before you can early terminate. This distinguishes a lease from a short term rental. You will pay an early termination penalty. This clause is one of the most misunderstood in the lease agreement. You must fully and completely understand the dollars that you will pay for early termination.
What constitutes early termination?
  • Totaling your leased vehicle in an accident and purchasing another car. Yes, that is early termination.
  • As the lessee, you die before the end of lease term. Yes, this is also early termination.
  • You want to trade early before end of lease for a new model.
  • You want to transfer your lease and have another assume payments. (Lease assumptions in most states are illegal.)
  • Other - Ask dealer to review all instances for early termination based on that dealers lease.
NOTE: Early termination can cost you a considerable amount of money. If your lessor cannot explain the terms and conditions in a language that you understand with examples in dollars and cents then look for another lessor. 

On behalf of the Lessor: The lessor has amortized the lease depreciation for the entire agreed upon term of the lease. Early termination may cause the Lessor to incur a loss. If so, you may be charged a penalty to offset this loss.

Wednesday, January 9, 2013

What You Must Know About Lease Insurance

The lessor (financial institution or business that technically owns the car) will require you (the lessee) to have and maintain auto insurance during the entire lease period. You are required to have a minimum of $100,000 - $300,000 public liability - $50,000 property damage naming the lessor as the loss payee (the entity the insurance check will go to.) You may be limited to a maximum deductible of $250.00.

If the leased vehicle is stolen and not recovered or you are in an accident and your leased vehicle is totaled, you should know: 
1.) You will be responsible for the dollar difference between the lease payoff (total of remaining lease payments plus residual value) and the insurance company settlement. Example: lease payoff is $10,000.00 - $9,000.00 insurance settlement = $1,000.00 you owe the lessor. 

2.) If the insurance settlement is greater than the lease payoff, then you may profit. Example: Lease payoff is $10,000.00 - $11,000.00 = $1,000.00 profit. Do not assume that you will receive the $1,000.00. Remember the car is owned by the lessor.
 
NOTE: Ask your lessor who would get the $1,000.00 settlement profit. If it is you, have it put in writing as an addendum to the lease and all parties sign. 

3.) You may purchase GAP Insurance (insurance that takes effect if your vehicle is totaled or stolen and not recovered) to cover the difference if you owe the lessor after your primary insurance settlement. Most lessors now offer this product. Some at no charge. If your lessor charges, compare it to what your primary insurance company charges. GAP Insurance is worth having. Remember your leased vehicle is depreciating each day and rarely will the vehicle be equal to or greater than the lease payoff.

NOTE: GAP Insurance only takes effect if your vehicle is totaled or stolen and not recovered. It pays the difference between lease payoff and your insurance settlement. It does not replace your primary insurance. It does not pay if your primary insurance settlement is greater than your lease payoff. 

4.) Your lessor may require you to have a minimum deductible to reduce your out of pocket expenses to make sure repairs are taken care of. It is to your advantage to have all body damage and mechanical repairs done immediately.
NOTE: Keep all repair records. Have all needed repairs performed immediately. 

5.) If you do not maintain insurance, your lessor in some leases, has the right to force place insurance and add the cost to your monthly lease payments.

6.) If your lessor is providing the insurance, you must be made aware of its total cost to you. If you are properly insured and understand the terms and conditions you will enjoy your leased vehicle more and have peace of mind. Insurance minimums will vary per provider.

Don't be afraid to ask questions.

Tuesday, January 8, 2013

Lease Terms You Must Understand

Lessee - YOU! The authorized driver and person indicated on lease document. 
Lessor - The company that bought and owns the leased vehicle. 
Residual Value - The projected dollar value of leased vehicle at end of lease term. Amount is set by lessor or insurance company. 
Guaranteed Purchase Price - Same as residual value. 
Purchase Option - Same as residual value. 
Purchase Option Fee - This is additional profit. 
Capitalized Cost - The total dollar amount to be financed. May include all additional fees, taxes, tags, dealer profit, service contracts,etc. 
Capitalized Cost Reduction - The down payment. 
Security Deposit - This is an extra fee. Can be used at end of lease term to offset extra wear and tear charges or excess mileage charges. Usually equal to one months lease payment. Usually returned at end of lease term. 
Acquisition Cost - The dollar amount the lessor paid for the vehicle. 
Acquisition Fee - This is additional profit. 
Early Termination Fee - This is additional profit. 
Disposition Fee - Amount to cover preparing the leased vehicle for sale after lease term. Costs to cover cleaning, tune-up and maintenance on vehicle. 
Purchase Option - The opportunity to buy your leased vehicle at lease end for the stated residual value. 
Depreciation - The decline in value of the leased vehicle due to wear, tear and age. 
Mark-Up - Additional dealer profit.

What concerns you most about leasing? Did dealer disclose and explain these terms?

Monday, January 7, 2013

What You Must Understand Before You Lease

There are two types of auto leases: The most popular and lowest risk is the Closed - End ("net" or "walk away") and the higher risk Open - End ("finance")lease.
 
The Closed End Lease
With the Closed - End lease you return the leased car to the lessor and "walk away." If you have not damaged the vehicle, have not experienced any excess wear and tear and did not exceed the mileage allowance you will have no financial obligation to the lessor. Because the lessor is taking most of the risk your monthly lease payments will be higher. This type of lease is by far the most popular.

The Open - End Lease
With the Open - End lease your monthly payments are lower but your end of lease obligation is determined by fair market value. Using the estimated residual value set by the lessor at lease signing, your vehicle may be appraised or have a fair market value that is considerably less than the residual. You will pay the difference.

The Full Maintenance Lease
Full maintenance lease is not a lease at all. It is a descriptive term that means all mechanical and normal service required during the lease term will be done at no charge. Of course you don't get this premium service free. The leasing company and/or lessor contracts out this service and you pay an additional fee included in your monthly lease payment. The service work is done only at designated locations and at the required time frames.

Have you considered leasing? What swayed you to lease? Why don't you lease?

Sunday, January 6, 2013

Your Trade - You'll Give Me What!!!

It’s gotten you safely to the hospital for the birth of your first born. It’s taken the family on the last five memorable vacations with no problems. It’s taken you to all those early morning business meetings. It’s worth it’s weight in gold, right? Wrong.

Unfortunately that’s how you feel about your used car at trade in time. Because of the emotional value you place on your car, to you it has loss very little of its original value.

To the professional appraiser your used car is just a hunk of metal. Used car values are determined by the price paid, for similar cars, at weekly auto auctions held around the country. Similar cars can command different auction prices depending upon the area of the country. Each week all the used car prices set by the auctions are published in the Black Book. This book is the leading source for true used car wholesale values.

Professional appraisers and used car managers use the Black Book. Not the Blue or Red Books used by financial institutions.

Keep the trade as a separate transaction when buying a new car. Research the value of your used car just as you do for the new car. Determine what the dealer will pay to buy your car if you were just selling it to him/her.

If you have a balance or payoff on your trade don’t expect it’s market value to cover this balance. Rarely is that the case. If the market value is not high enough then one of two things will occur; first the dealer will inflate the price of the new car to off set the payoff or two, you will have to come up with the cash to payoff the difference. Either way you will pay.

Negotiate hard for a good buy figure for your trade. Call several used car lots and get a buy figure. Place an ad in your local paper to see what buyers will offer. Check the prices of similar cars listed in your local paper. Compare all these prices to the quote given to you by your selling dealer.

One of the classic lines from a salesperson is, "We’ll sell you the new car for $$$ plus your trade." Does this tell you what your trade is worth? Keep it separate.

Questions to ask the salesperson: Will you shop my used car to get the best price? Will I get more for my car if I repair these minor problems? Is my car in good enough shape to place on your used car lot?

Saturday, January 5, 2013

Long-Form Videos Are Watched

If you have spent much time with AutoNetwork you'll notice that we post long-from videos. This gives you more information and hopefully educate in the process. When we first started YouTube did not believe viewers would watch. And, neither did the car companies. We felt if a viewer is interested and content compelling they would watch.

Time has proven we were right. Now YouTube is encouraging publishers to post long-form videos.
Mobile viewers are even watching these videos on smartphones. But, the real turning point came with the iPad. Larger smartphone screens have contributed but tablets and iPads are the devices most used.

What do you think? Do you watch any long-form videos and on what devices?

Friday, January 4, 2013

Auto Shows

Want to see hundreds of cars, trucks and vans? Want to be able to leisurely wander in and out of these vehicles? Then the place to go is your local auto show.

Auto shows have a long history of successfully jump starting the buying of new cars. These shows are sponsored by your local auto dealers and auto manufacturers.

The largest auto show for new car introductions is the Detroit International Auto Show held in Detroit, Michigan in January. The Chicago Auto Show has the most visitors. The Los Angeles Auto Show is next and is growing in notoriety.

The majority of auto shows are held in major cities. One of the greatest benefits of these shows is the millions of dollars raised for local charities. Who says car dealers don't give back and care about communities.

The benefit to you as a car buyer is the availability of hundreds of automobiles for you to view and compare over a week or more time period.

Take the entire family. Get in and out of your dream car. See what really fits your life style and more important your pocketbook. Ask questions, gather brochures and have a fun day.

The latest in automotive technology, safety features and concept cars is on display for your review and feedback.

The auto show season has started. It runs until the spring. So, pack up the kids and support an auto show in your area. To find one use any search engine on the Internet and type in "auto show."

The RV (recreational vehicle) industry also have shows. They are sponsored by the local RV dealers and RV manufacturers. Take the family and really get blown away by the luxury, spaciousness and affordability of these vehicles.

Thursday, January 3, 2013

Why Private Ad Exchange Network Is Growing

The private ad exchange network is not new. Google, Facebook, Bing, etc., has this service. Those websites only allow approved advertisers to post ads in a very controlled environment.

Most recently large well known media outlets, WSJ, New York Times, Gannett, Conde Nast, i.e., have established private networks. Primary reasons are control quality of advertisers across their outlets, keep bulk of ad revenue and control data collected from visitors and advertisers.

Private ad exchange networks will work for a network of retailers, service providers and other type businesses in a given market. Even if competitors participate.

The goal is to keep shoppers or buyers within the group. Sort of like a mall but without the walls. Referrals are the best form of generating new business and keeping existing customers because the recipient of a referral place some trust in the referrer and in most cases will try the business and or service referred.

Networking is another concept that's been around for a long time. Members are selected by other members and usually only one business per category is permitted. They all meet regularly with each member given time to present their products and/or services. Each member is required to refer other member services.

First the Internet upset the norm for how businesses conduct business and advertise. But now wireless technology has gone way beyond the Internet and has drastically changed business, advertising, shopping and buying.

Technology has finally made the private ad exchange network a viable source of new business, income, revenue, market penetration, real time data, sales, promotions, customer reviews and advertising for any business. 

Wednesday, January 2, 2013

Smartphones are a part of consumers’ everyday lives now

Forrester Research
"How Consumers Discover New Brands, Products, And Services," Forrester found that U.S. online adults who own a smartphone are significantly more likely to actively seek information about brands, products and services than those who do not own a smartphone. The results show that 57 percent of smartphone owners actively seek out new product information compared to 41 percent of non-smartphone owners.

The report finds that there is a clear opportunity for companies to use mobile marketing to bring relevant new brands, products and services to consumers' attention. 

Forrester found that 79 percent of consumers conduct Internet searches via search engines to find new products, 32 percent view general online ads, 30 percent look at online consumer review sites, 23 percent read and post messages on Facebook, 23 percent see ads on Facebook, 17 percent use coupon apps and services, 7 percent read and post on Twitter, 7 percent see ads on Twitter, 6 percent read and post messages on Pinterest and 4 percent see ads on Pinterest.
The most popular discovery methods for word-of-mouth channels are online review sites, with 81 percent actively seeking this information doing so in this way while 72 percent speak with people and 69 percent seek out online customer communities.

For marketers, the results point to the need to be relevant and to be in the right place at the right time with the right message with their mobile efforts.

How are you using mobile marketing for your business?