From a dealer perspective, extended warranties on new and pre-owned vehicles have been a fabric of genuine protection for their customer bases for decades and a stream of revenue in variable and fixed operations.  Extended warranties enable a dealer to maintain a consumers vehicle and increase customer retention for the dealership.  We have seen warranty companies come and go for years, so to us, this is part of the automotive landscape.  Dealers are, in most cases, very sincere in backing any of the products that they have vetted themselves and sold at their dealership, and have paid in hundreds of thousands to right a wrong by endorsing a warranty company that has simply run out of funds and reinvent themselves under a new name to continue an assault against our customers and industry for years.  

With a rise in longevity of consumer vehicle ownership, fixed operations in dealerships have seen a sharp increase in business and the need for extended service contracts that are designed to insulate the consumer against the cost of repairs that often come in numbers that are not budget friendly to the average consumer that lives month to month.  As dealers we must be vigilant in informing the consumer of the advantages to our store bought products vs. extended service contracts that are printed in a number one font and accepted nowhere. 

Any dealership management staff should really look hard at the finance department, where a majority of dealership endorced extended service contracts are sold, and have them lift the mask for the consumer that really does appreciate solid automotive breakdown coverage.  We can back our product because of our servicing and reconditioning of a vehicle, most of the companies are claiming to back vehicles without a proper mechanical inspection of a vehicle, which makes no sense when the risk to large claims can loom for these companies crippling the ability to process and pay claims.  Have your finance department research this and share their finding with our customers.
 

As more and more companies continue to down size the automotive industry begins the push to add some of the cross over talent to its' ranks.  There are many career choices for solid qualified candidates out in the work force, but many are seeing what the auto industry can offer.  With mortgage brokers, investment bankers, hospitality industries, and many more watching the opportunities shrink within the career landscape the auto industry creates a great fit.  It is important to note that this industry takes a little time to master, but provides well above average income throughout the learning curve.  The training is what will make the difference of a candidate succeeding or failing in an industry that is changing to a consumer driven culture.  Auto dealers are emphasizing customer care more than ever as auto manufactures' gear thier product platform toward taking care of customers for retention.  Great auto industry professionals are adjusting the current staff to accomodate such movement.  As one learns the auto industry you will find you can set yourself up for contiuous employment and self fulfilling accomplishment as you compete to move up the ranks within this gratifying industry.  So when considering a career move, look to a business that will always have open arms to qualified individuals that are savy to the many moving parts within the automotive industry. 

Dealership Experts offers career coaching within the automotive industry for veterans or beginners, let us train you for an exciting career where you will never have to worry about the employment market again.

As the "Cash for Clunkers" stimulous program begins a wind down after this weekend the automotive dealerships that participated begin the receivables process.  Right from the start of this program it took federal agencies over-seeing this auto industry stimulous over 45 days to define the parameters that dealers would have to use that would guide them to the seamless stream of rebates.  While some dealers chose to be patient and waited to see how this process would work, many jumped the gun to market with a blitz of advertising anticipating what the rules would entail.  In retrospect, this may have created a cash flow issue within previously liquid organizations.  Then as the flood gates released the program on the 24th of July dealers rushed to get on board what seemed to be a rebate program much aligned to factory specs, not.  It is the responsibility of dealership managers to process qualifying transactions and have a complete understanding of the rules.  Just like in our industry advertising, you should always read the fine print.  Many dealerships are now seeing a significant amount of claims being rejected due to rules tailored into the "Cash for Clunkers" program that disqualify a large number of transactions due to the eagerness to get their share.  The sales results were very promising with the exception of realizing gross profit that may quickly turn into red ink.  It will be interesting to see how this funding or lack there of effects the bottom line of these participating dealers that were not process oriented and how they will untangle the knots that are sure to be left at some dealers door steps.

As a majority of companies reel from the hiring process, the auto industry in entering a hiring boom.  Auto Jobs around the U.S. are plentiful and most dealers are offering bonuses to qualified and seasoned personell.  We have seen an enormous gap in the amount of employees needed to get the job done with the volume increase dealerships are experiencing.  With factories coming on line to meet the demand for autos throughout the country this has opened up employment opportunities throughout the metro areas.  Dallas Texas has a shortage of qualified candidates in over 90% of the dealerships in the DFW area.  Dealers are offering training to those qualified individuals that are career minded to engage and create the next generation of automotive talent.  Job seekers have many avenues within the auto industry.  Dealership Experts offers hundreds of employment opportunities to candidates that are willing to learn a new career.  E-mail employment@dealershipexperts.com for more information. 

Just as dealerships accross America adjust to government assistance in defibulating the volume in a showroom near you, not really knowing the receivables nightmare that may follow due to lack of knowledge and ability to properly audit individual qualifying transactions, enters E-Bay Motors.  Yes, the auction giant will begin assisting General Motors on the west coast in moving new vehicle inventory through the power of an online auction for consumers. 

Will this formula sacrafice gross for volume?  The answer is in the piloting of the dealerships that have been selected and how far the auto consumer will drive to save $100.  If history tells us anything, consumers will drive to save money as with the pre-owned internet market that has enabled many dealerships to reach into markets far away from their PMA and enhance their presence.  Gross profit is traded for volume within the pre-owned market and with margins ever so little on new vehicles we could see a trend that impacts the net profit of dealerships nationwide.  E-Bay Motors will get fees that could exceed the profit of a franchised dealer in some of these transactions, which should concern all dealers that have invested millions in operations that are seeing the profit margin shrink and expenses rise.  Stay tuned for this latest move by the auto experts in Washington that seem to be blind to the reality of gross profit.

When any individual enters the job market seeking employment there are several things to consider.  Are you in search of a job or career?  There is a definitive difference in the two.  A job is an employment position that you settle for to help you attain your long term goals and asperations and you knowingly go forward with no intent of staying the course with that position.  A career is entered with the intent to master the many facets of an industry and become the best at every level that encompasses that particular industry. 
So remember, if you are in the market for a job, it is only fair to enlighten your prospective employer of your intent so that the companie's investment in you is true.  Companies are more likely to invest in a career minded individual with professional training and the inner workings of the employers business providing knowledge, experience, and time that will give the employee the rewards that come with a career and enhance the value of the employee.  A career now becomes your long term goal.

Well, the much anticipated "Cash for Clunkers" program has a full head of steam for automotive dealers all over the U.S.  Dealers have been busy utilizing the funds to move what was an aging new car inventory fleet and taking the cash from Uncle Sam.  After quickly running out of cash not realizing the adaptability of auto dealers to move rapidly into retail mode, the U.S. government is said to have replentished the program with additional funds keeping "Cash for Clunkers" alive.  

But is this a receivables nightmare in the making?  Time will be the teller of that tale when all the money is used up and sitting on the receivables of over 20,000 automotive dealerships' books.  We rely on our managers to make the right decision when qualifying these transactions and unfortunately there will be some dealers that end up with deals that should not have been put into this program for qualifying purposes.  What will happen with these huge balances?  Auto dealers need to still appraise these vehicles as trades to get a snapshot of the exposure.  They also should go through an internal audit daily tracking the program's transactions to have a few heads verify the plausability of the qualifications of each deal limiting your exposure.  With a few simple steps dealers can take the "Cash for Clunkers" program to the bank.

If your dealership would like to see how this program can be receivable proof in your dealership contact Dealership Experts in Dallas for a free initial consultation.