Texas car dealers say no special treatment for Tesla

Texas car dealers, millions of dollars to prevent that Tesla is selling cars directly in the Lone Star State have spent, said on Friday that the Government built the country's automaker should change not his laws of a large battery system.

Bill Wolters President of the Texas Automobile Dealers Association, said CNBC he hopes Texas country the $4 billion to $5 billion "Gigafactory" but not if it the State required that all sales car be made slings by dealers.

"It's very interesting that a company come in and say, you give us your tax investment subsidies, give us our incentives and change the law. Do you think they come to the State, based on its own merits, '' said Wolters CNBC.

"Once you begin letting manufacturers sell directly, then suddenly I under 15,000 residents the dealers in 163 cities, they disappear," he said. "Had we controlled only dealers in major metropolitan areas with a price of the factories. Certainly not thats 26 million Texans not good for anyone."

For the record, Tesla said, that it change its new Gigafactory in Texas in Exchange for the State of his franchise laws, find. But it would not be surprising if this possibility is discussed, Tesla holding his options to provide where with the facility of 6,500 jobs.

A spokeswoman for Texas Governor Rick Perry, a Republican, the Governor told CNBC the comment not about possible negotiations, which plans, companies to Texas to win.

The initiative belongs to those rare opportunities for regions and local communities to land a large production facility, which could have a significant impact on the local and State economy. Be considered along with Texas Arizona, New Mexico and Nevada.

"The largest industrial project out there right now," Dennis Cuneo said the DC strategic advisors consulting firm in Washington, D.C., "these types of plants come along very often and you can do bets, companies and politicians what they can to win this facility." who,

Cuneo speaks from experience. Before leaving Toyota in 2006, he helped the automakers choose the pages for several of its U.S. plants, including a truck-assembly plant in San Antonio.

"When I was considering the Tesla in one of these States, I track would as far as possible ensure that comes this plant in my State," he said.

Cuneo said, that economic impact of Gigafactory far beyond 6,500 jobs could go, foresees the Tesla. There are infrastructure and logistical operations, suppliers, and the potential to create a hub for research and development of power and energy systems, which would go to the selected state.

Because Tesla announced the Gigafactory, Cuneo said that he was contacted by three States, which are not finalists asked, how they can get radar on Tesla. "I would be surprised if an another 20 or 30 States reach to see Tesla at a certain time, if they can get this plant," he said.

The automaker said that it is planning to name a site for the Gigafactory soon with a projected opening of the plant in 2017.

For CEO Elon Musk project heard all his grand vision for the lowering of the cost of lithium-ion battery packs of less than 30 percent, while the supply, rapidly, so Tesla with demand for its vehicles can keep up with.

The cost of the battery pack is a focus for Tesla brings enough to the company a profit that third generation car for around $35,000 sell when it debuts in the year 2017 to allow. If this is successful, believes Tesla, the car to call many of the model E, which would lead automakers to sell more affordable electric vehicles for the mass market.

When this day comes in three years, believes Wolters, Texas is still a ban on direct sales of cars and trucks will have laws.

He said "We widely, are that on the most popular major retailer in our State because we have franchise laws that avoid that dealer is terminated by the manufacturer and take on the next generation of the merchant families of traders".

"We have more dealers in Texas about 75 years old, as there are over 75 years old manufacturers." So dealers in our State are forever and they don't leave threatening not the State,"he said. "Dealers offer much greater economic impact for Texas than Tesla would ever offer."

Read More

Demand for trucks, consumer confidence blessing for June U.S. sales

DETROIT (Reuters) - U.S. car dealers such as Don Kerstetter have every reason to be, as the industry will celebrate, as it has 2007 happy these days - facing demand not seen since before a recession, General Motors and Chrysler drove into bankruptcy.

The owner of the classic Chevrolet Sugar Land outside Houston is on pace for another month of the new car sales over 200, due to demand for full-size pickups Texans love.

"The month's been good," he boasted. "It is in the last week or so above all picked." Credit is generally good in our area."

Kerstetter is not alone as the U.S. auto industry, the sales expected to exceed 8 percent rise in June and reach their highest monthly pace since before the recession, the two U.S. automakers, are forced to seek bankruptcy protection in 2009.

In may auto sales rose more than expected, as construction workers and oil bought more pickups to growing demand for drill bits to fulfill their services US, a trend expected automakers continue through the rest of the year.

Most analysts expect sales pace in June between 15.5 million and 15.7 million, the largest number of high end of which would mark since December 2007. The industry sales report is expected to be June supply leading indicator for the health of the US economy on Tuesday.

"We think that housing is a driver, but also domestic energy production and also the general economic health of the States such as Texas, which represents a large pickup truck,", said Barclays analyst Brian Johnson, sales annually in June by 15.6 million vehicles expected.

The demand for large pickup trucks is so strong that this year above 2 million for the first time since 2007 the current tempo contains sales after Doug Scott, marketing manager at Ford Motor Co.'s best-selling F-150 truck.

The US real estate boom and stable gas prices play on traditional strengths of the U.S. automakers in pickups and SUVs. So far in this year is the growth rate for the sale of large trucks with 21 percent, three times faster than the industry.

Pickups are one of the most profitable automakers in Detroit, marketed, although current incentives may undermine the profits of $5,000 or more.

"It's actually quite exciting when you consider where sales could go in a few years, when the cycle remains higher grinding to improve employment level," Jefferies analyst Peter Nesvold said.

Lending standards and low interest rates consumers are easing to buy new cars and light trucks.

Car manufacturers also benefit from lower costs, so they book profits on all of its vehicles, including small cars. Commodity prices, including steel, moved lower than vehicle prices have increased.

Raw material costs index is Star Agee to the lowest level since raw materials at the end of 2010 to produce about one-quarter of the total cost to a vehicle; Price declines, the costs per vehicle from $150 last year and this year so far star Agee analyst Michael Ward about even more said in a research note.

Incentives are now falling, help more automaker profits. Industrial research, the company TrueCar.com estimated they fell another 0.6 per cent to $2.537 per vehicle in June to the lowest level for the month since 2002, except 2011 as a result of the Japanese tsunami and earthquake distorted.

Concerns remain the Central Bank as executives watch exactly, to determine whether his decisions on demand of consumers could put a damper.

"It will be interesting to watch, where consumer confidence is how the market kind of swayed the last week. You talk to eventually higher interest rates, and what this means for buying consumer confidence, "Joe Hinrichs, Ford's head of North and South America, reporters Thursday on the company product development center in Dearborn, Michigan"

Fed Chairman Ben Bernanke surprised markets by saying last week that the Central Bank is expected to reduce that monthly loan buy rate for $85 billion this year and end total mid-2014 if the economy improves, as expected quantitative easing.

Several current economic indicators have painted a picture of an improving US economy, including gains in the industrial economy and real estate prices and sales. Confidence this month hit its highest level for more than five years.

Duane R. paddock, Chief Executive of Paddock Chevrolet located near Buffalo, New York, has certainly seen the head. He hoped to sell 310 vehicles in June, but the store on Friday had already made 360 and Santiago

Read More

Shady car dealers to military customers

Herb white tree, the ConsumerMan
Cody Cameron, a marine stationed in Jacksonville, n.c., burned when he bought a used car. He paid $17,000 last year on a 2004 Nissan 350 z with 60,000 miles it. He thought that car would take him a long time. It did not come.

"I drove the car for about two weeks." One day all the studs on the left rear tire fetched just way and the tires on the road moved, "he recalls."

He was able to pay for the repairs the traders. But about a week later, the tunnels broke again. They refused this time pay.

Cameron could afford, he took the car to a different dealer, hope, money for a trade-not the repairs to something. That's when he was in a wreck his car discovered. The AutoCheck report showed extensive damage to the left side of the vehicle.

"When I bought it, I specifically asked the seller - several times - if it had been in a wreck," Cameron tells me. "And he said no." "There were no accidents."

Right now, camerons 350-Z not shut. But he is still on the hook for the payments. He is suing the dealer.

It is a common problem
It is regrettable. Shady car dealers goal often military customers. Unethical sellers see it as easy marks.

Holly Petraeus, Director of Office of boots Affairs at the consumer financial protection Bureau, warns military personnel on alert be when on a car much foot.

"They have these places, cars for a sell the spring up to military facilities very marked-up price and then put on top of that used high finance," says she.

Vulnerable customers can be military personnel. You are young. This can be your first car purchase. They often have a limited or negative credit history.

Petraeus (whose husband Gen David Petraeus will be Director of the CIA) tells me everyone in the service is fear of something that they could their screening costs. A bad credit report is pulled the No. 1 reason for this distance.

"they are aware that", she says. "So someone can threaten and say:" If you don't pay then you'll in trouble, "which is of course the last thing they want."

Holly Petraeus is not the only alarm bells. Advise military customers to fraudulent sales practices ensure the auto experts at Edmunds.

"Military personnel have a steady income." The Government pays you every month for their service. Unscrupulous traders know that are really trying to get into this source of income ", says Edmunds of Carroll Lachnit."

Sales representative warns Edmunds military families looking after crafty to use the patriotism as part of their sales pitch.

"We try be aware of them that appeal on their pride or flattering them, cannot be sincere appreciation for their military service, but only another way to their hooks in this content," Lachnit said.

Auto dealer rip-offs affect mission readiness
Rosemary Shahan, President of consumers for auto reliability and safety, having a long list of "unscrupulous practices" says unethical traders use to military buyer. These include: fake loan applications, they know bait-and-switch financing and selling a car, was to say in a wreck without the customers.

"Car sales and financing scams cause problems of financial readiness for military service members and their families lead," she says.

Two years ago, during the Dodd-Frank Act to reform of financial Congress discussed air force Secretary Michael Donley wrote a letter to the legislature. He said:

"I am sure you agree that plane, which in turn reduces financial questions to home be distracted readiness." "Protection from unscrupulous auto loan enables our plane to focus on their Hauptaufgabe--fly, fight and win in air, space and cyberspace." (See full letter)

Secretary of the army wrote a similar letter, John McHugh:

"Over the years many of our soldiers have been predatory lending practices to the victim and contracts for prohibitively expensive financial products, supported by some unscrupulous car dealers and lenders entered." "Although the army, our soldiers for the purchase of cars in our normal financial education curriculum, the fact remains, that registered soldiers... educate junior keep an easy target for dishonest brokers." (See full letter)

McHugh's letter lists the results of an informal survey of the Ministry of defence of the officers, financial consulting for the four main branches of the US armed forces. The vast majority (79 percent) reported that they military members with car saw funding problems. Many of these customers, reported, provide could make it not their car payments.

The national independent auto boggles Dealer Association(NAIDA) not away from the issue.

"Try as we, can get rid them, there are still bad actors in our industry," says Steven Jordan, rescued-the Chief Operating Officer. "We know the growing problem with regard to vehicle purchases and financing of military personnel and we feel, is no place for it in our industry for those who use or want to cheat our military personnel with illegal disclosure or unfair & deceptive trade practices."

Protect yourself
There are things all military and civilian - should do when buying a vehicle.

Do your homework. Check out the car dealership. Talk with friends and visit the Web site of the better Business Bureau. Find out all the vehicles you are interested in are the current market price. It is easy. Just go to the Edmunds, Kelly Blue book, or TrueCar. Never shop alone. You should have someone to watch your back. Keep in mind that traders seller do that every day for a living. No matter what they say is their job, most of the money for each transaction. Let someone you pressure to sign the sales contract. Once you sign it, the car is yours and you are legally required to make the payments. There are no three days "cooling-off period" for car sales. Never a used car to buy until you have it by a qualified independent mechanic. You can damage by a prior wreck or potential mechanical problems on the ground. The small price you pay for this test (typically $100 to $150) you could save literally thousands of dollars on the street.
More detailed advice for U.S. service members is on "Boot camp for military car buyers."

You can read also my car buying tips at ConsumerMan.com.

Read More

Group names top female-friendly car dealers

By Paul A. Eisenstein, The Detroit BureauBuying a new car can be an unsettling experience no matter who you are, but it’s traditionally been all the tougher for women – who are often treated like second-class citizens, either more trouble than they’re worth or as easy marks to be easily taken advantage of.

“When I started looking for my last car, the first dealer I went to told me to come back when I could bring my husband with me.  He clearly didn’t think I was smart enough to do it myself,” recalls Alice Hissler, a single PhD scientist at a major Michigan university.

Hissler is by no means alone, and women are more likely than men to express frustration at the car buying experience.  But that’s beginning to change, driven by automakers, retail trade groups and women themselves who are using word-of-mouth and social media to get the word about which dealers to patronize and which to avoid.

 And they have the muscle to do it considering women now account for 51% of the cars purchased in the U.S. and influence 96% of sales, says Delia Passi, CEO and founder of WomenCertified and former publisher of Working Mother magazine.  WomenCertified has just published a new survey that looks at what dealers should do to satisfy women customers and identifies some of the best in the country from the distaff perspective.

“Car buying is often viewed as a male-dominated activity,” said Passi, adding that, “Our goal is to identify and reward the dealerships that meet and exceed women’s expectations for the car buying process and encourage the industry to better serve their needs.”

The new study, she notes, was done in cooperation with the Wharton School of Business, and was specifically constructed to focus on what women car buyers were looking for when shopping for a new vehicle.  It not only looked at the car buying process but also the service experience, where women often find themselves facing the harshest treatment.

The best dealers, the survey found, show “a genuine concern for the customer,” and are likely to offer a “nuance of hospitality” in everything they do, stressed Passi.  They’re likely to listen as much as talk, and clearly understand the specific needs and desires of each individual consumer.

They’re also likely to make the showroom and service bay friendly places to spend time, especially for women who might have children in tow.  Top-ranked dealers routinely offered such niceties as good coffee, places to relax and even play centers for children.  Some would even provide transportation service for a customer who might, said Passi, want to get a manicure or run errands while waiting for a car to be services.

“They put themselves in the shoes of a woman customer,” she suggested, adding that those dealers were also less likely to make a woman feel pressured.

Passi contended that the best dealers are likely to be driven “top-down,” and often – but not always – have women in top management positions.  They almost always do have women employees at all levels in the dealership.

The survey identified a score of top, women-friendly dealers across the country.  “Car buying is often viewed as a male-dominated activity,” said Delia Passi, CEO and Founder of WomenCertified, and former publisher of Working Women and Working Mother magazines. “but women not only buy 51% of vehicles today, they also influence 96% of vehicle purchases for their families. Our goal is to identify and reward the dealerships that meet and exceed women’s expectations for the car buying process and encourage the industry to better serve their needs.”

To be added to the list, she noted, required a strongly positive recommendation from at least nine of every 10 customers surveyed who had previously used that dealership.

Beyond the initial sale, Passi stressed that it simply makes good sense to ensure women shoppers are happy.  They’re more likely to not only come back for another car later on but also to return to the dealership for service and other needs.  According to the survey, 80% of respondents returned to the top-ranked dealerships, up from 60% for those who didn’t score as well.

Read More

Auto dealers' ranks rise for first time in years

And then there were ... more. The number of U.S. auto dealerships grew in 2011 for the first time in years.

By Joseph Sczcesny, The Detroit BureauIt’s become a seeming fact of life that the number of U.S. auto dealers will steadily decline each year – with massive cuts during the industry’s recent downturn — but 2011 saw an unexpected turnaround with the dealer count actually rising for the first time in years.

New research also suggests that if the automotive recovery remains on track, 2012 could be the best year on record for American automotive retailers from a sales per showroom standpoint.

Research firm Urban Science reports the number of dealerships actually increased last year after two years of significant attrition. As of Dec. 31, 2011, there were 17,767 dealerships in the U.S., a 0.6 percent increase from 17,659 in 2010.

In a “normal” year, there is a 2 percent decline in the number of dealerships, making the rise quite significant, said Urban Science vice president John Frith.

The two largest contributors to the turnaround were Fiat, which added 135 dealerships in 2011, and Chrysler-Dodge-Jeep, which added 50 dealerships. Other OEMs also added retailers, but in smaller amounts.

On a state level, the largest increase occurred in California where 31 new dealers opened for business, In addition, New Jersey gained 10 dealerships while Ohio and Florida added nine each, and Texas added eight, according to Urban Science’s figures.

At the same time, there were a total of 29,380 franchises as of Dec. 31, 2011, a 2.4 percent decline from the 30,098 in 2010. This decline is attributed mostly to the final stages of phase-out of Ford Motor Co.’s Mercury brand last year.

(The majority of dealers now represent two or more brands, which is why there are more franchises than dealerships.)

“We have a stabilized, right-sized dealership network that has increased year-over-year for only the second time since we started this census,” said Frith. “Automakers and dealers are in a good, profitable position. To maintain that momentum and keep profitability high, they will need to resist the urge to abandon the expense controls and processes instituted the past few years.”

Based on 2011 vehicle sales of 12.8 million, Urban Science’s analysis of throughput — the average number of sales per dealership — increased approximately 10 percent year-over-year to 719 in 2011, compared with 659 in 2010.

Urban Science estimates that if vehicle sales reach 14 million sales in 2012, average sales per dealer could reach an all-time high, pushing past the old record of 784 set in 2005.

“This year, the key issue for many dealers will be figuring out how to handle a continuing sales influx,” added Frith. “This will shift more focus on ensuring that dealerships are meeting the automakers’ standards for staff, space, facility upgrades, policies and procedures.”

Read More

Auto dealers see sunshine after dark days

A Chrysler Jeep Dodge dealer's sign.

By Paul A. Eisenstein, msnbc.com contributor

When Chuck Fortinberry checks in for the National Automobile Dealers Association (NADA) convention this weekend, he’ll be coming to Las Vegas as an outsider. The long-time dealer recently saw his Chrysler showroom close after a quarter century of doing business in Detroit.

“I was one of the guys who got screwed,” he said, a bit of a laugh barely concealing his bitterness. Despite an arbitration process pushed through Congress, Fortinberry was one of hundreds of U.S. dealers dropped by Chrysler and General Motors after their 2009 bankruptcies and bailouts.

But much has changed in the car industry since those darks days when several dealers a week were closing their doors. And the mood is clearly expected to be upbeat when Fortinberry and thousands of former colleagues and competitors fly into Sin City for the annual NADA convention.

Indeed, on Wednesday Chrysler reported its best January sales in four years, and General Motors is expected to report billions in earnings in mid-February. No wonder Fortinberry recently went looking for another Chrysler dealership he’d like to buy.

But not everything is upbeat. Dealers fret that with the U.S. auto industry on the growth path again they will become pawns in the increasingly bitter battle for brand domination.

Lincoln, for example, plans to require retailers to adopt a lavish new showroom design that could cost a million dollars or more -- even requiring some dealers to move to better locations.

It’s a pattern being followed by other mainstream automakers, from Chevrolet to high-line Mercedes-Benz, and dealers fear the required investments could more than offset the gains they’ve been desperately awaiting as U.S. car sales finally start to rebound.

“If our members are going to spend the money they want to see there’s a return on their dollars,” complained outgoing NADA Chairman Steven Wade, who had to face demands for changes at one of his Utah showrooms, he recalled, because the manufacturer said the tile he used “wasn’t the right shade of gray.”

NADA has hinted it could go to court on behalf of its members, but now that those dealers are finally beginning to see customers flock back to their showrooms it’s uncertain they’ll have the stomach for a costly legal battle.

President Barack Obama launched his State of the Union speech late last month by proclaiming “the U.S. auto industry is back.” Sales might have fallen a little short of the original 13 million forecast for 2011, but many analysts are now upgrading their estimates for 2012 based on end-of-year momentum that carried into January.

Deutsche Bank’s Rod Lache this week raised his production and sales estimates by as much as 800,000 units compared to earlier predictions, and he and a number of colleagues are now looking at numbers that could nudge the 14 million mark -- a figure generally seen as the point of a true industry recovery.

Significantly, the trend is up even as manufacturers have slashed incentives by as much as 10 percent below year-earlier levels. And average transaction prices -- ATPs, in industry lingo, or what the typical buyer actually spends out-of-pocket -- have risen sharply.

One key factor expected to drive the market for at least the next year or two is so-called pent-up demand.

The typical U.S. car, truck or crossover is now 10.8 years old, according to a new study by the suburban Detroit-based research firm Polk. That’s up a full year compared to 2007, just before the U.S. economy spun into the ditch, and the oldest that analysts have ever seen.

While better quality means vehicles can last longer, they eventually do wind up in the junkyard and have to be replaced. But millions of American have put off the day of reckoning, which is why the size of the American automotive fleet has actually declined by about a half-percent to 240.5 million since the start of the Great Recession.

“We’re clearly seeing that driving business at the dealer level,” said Jim Farley, Ford’s chief marketing officer.

Considering the potential for everyone to share in the industry’s recovery, the 2012 NADA convention is expected to see more focus on the positives than in the recent past. And NADA’s own studies show that the “happiness factor” among those retailers has clearly been rising.

It’s not surprising then that the trade group’s annual Dealer Attitude Survey (DAS) finds the highest level of satisfaction with brands on the upswing. Hyundai, for example, has been setting sales records and has led the survey’s brand list for three years running, even if they demand dealers invest in showroom upgrades. Subaru, another brand setting records, ranked second in the DAS, followed by Toyota’s high-line Lexus brand.

For his part, Fortinberry decided not to buy the new Chrysler store he looked at, worried mandated investments would overcome the profit potential.

For now, he’s focusing on a new line of products he is marketing to assist disabled drivers. But the trader instinct is clearly in his blood and he knows that when he gets to Las Vegas it could be difficult for him to avoid looking for another store -- especially now that the business is building back up after the tough times he and the rest of the nation’s dealers went through.

Read More

Car dealers see unusual November sales surge

DETROIT — Car dealers are getting a surprise end-of-the-year bonus: More Americans are replacing old cars and trucks, enlivening a normally sleepy time for auto sales and putting November on track to be the industry's strongest month of the year.

Dealers and analysts say people are finally getting rid of cars and trucks they've held onto for more than a decade. That demand, plus attractive lease deals, an ample supply of Japanese models and promotions on remaining 2011 models have drawn buyers to showrooms in large numbers the last two weeks.

"We're seeing the most showroom traffic that we've seen all year," said Ed Williamson, part-owner of two Miami-area GM Buick-Cadillac-GMC dealerships.

The spike in activity comes after months of sputtering sales. Consumers have been reluctant to take on major debt such as car payments because of the uncertain job market. Unemployment has been around 9 percent for more than two years with no sign of significant improvement.

Sales also suffered when Honda Motor Co. and Toyota Motor Corp. ran short of models during the summer and early fall because of factory disruptions caused by the earthquake in Japan and flooding in Thailand.

Now supplies are starting to return to normal, and customers have a better selection.

So far this year, sales have been better than 2010, an annual rate of 12.6 million compared with 11.5 million, but that's still far short of the 2005 peak of 17 million.

Recent sales have been so strong that General Motors' top sales executive predicts that November figures will hit an annual rate of around 13.8 million light vehicles in the U.S. That's a big step up from last November, when the auto industry was just starting to recover from the economic meltdown. Back then, the sales rate was only 12.3 million.

After years of holding off on purchases, people are tiring of their old cars and trucks. So despite a volatile stock market, high unemployment and worries that the European debt crisis could destabilize the global financial system, people are buying, said Jesse Toprak, vice president of industry trends for the TrueCar.com auto pricing website.

The average age of a car on U.S. roads is now a record 10.6 years, according to the Polk auto industry research firm. Vehicles are so old that people's lives have changed and they need different models, or their cars are just worn out, he said.

"They just simply couldn't wait any longer," he said.

In Houston, physician David Vener was among those who kept an old car for a long time. But he parted Monday with his 1999 Lexus sport utility vehicle, which had 135,000 miles. He traded it in at River Oaks Jeep for a new Grand Cherokee.

The Lexus, he said, had been almost trouble-free for the last 13 years, but it was facing some expensive repairs. Also, it didn't have side air bags and other safety features that newer cars have, he said.

"After three teenage boys and a lot of miles, it was beginning to show its wear and tear," Vener said. "It was getting a little long in the tooth."

Lease deals also are drawing people into showrooms, Toprak said, with November leases approaching an annual high. Leases had been just above 20 percent of the U.S. market during the year, but this month they're running about 25 percent.

Low interest rates and strong resale values after leases have ended help car companies offer deals.

This month, GM has deals that require no money down. A Cadillac CTS luxury sports sedan is leasing for $399 per month, down from $429 to $439 in October, Williamson said.

Also, dealers are clearing out the remaining 2011 models. And by this time of year, automakers normally offer good discounts to get them sold. Numerous 2012 models are attracting buyers, too, Toprak said.

But even the usual discounts on older models don't normally bring out so many customers in November, when sales nearly always slow down as temperatures drop and people get caught up in the holidays.

Don Johnson, vice president of sales for General Motors Corp., told industry analysts Tuesday that recent data show some strengthening in the U.S. economy.

"We continue to believe that the industry will grow," Johnson said. "It will grow slowly with the economy."

At Chuck Eddy Jr.'s Chrysler-Dodge-Jeep-Ram and Fiat dealership near Youngstown, Ohio, November sales are on pace to beat October, when Eddy sold 95 new cars and trucks.

"I'm on track to do 125, 130 this month," Eddy said. That will be "the biggest November I've ever had."

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Read More

5 Tips for dealing with car dealers

There are a few of the cardinal rules that apply for any negotiation. If you are the buyer, you will almost never anything less than your first offer. The first number that you used the baseline, judged by which all subsequent offers on the table and compare. If you set the bar too high, you can be little wiggle room a deal cutting to a number you like.

It comes to cars, assume the attitude that you are always way if you do not what you want, and go to a different dealer. This ability gives you the upper hand over all car salesmen, no matter how cunning and experienced they may be. Use this power to your advantage.

Here are a few more tips that might help.

1. Do your homework
Arm himself with as much information as possible about the car that you want to buy. Magazines and Web sites are a good source, as well as the Kelley Blue book, if you are in the market for a used car.

Find out if it not public traders of hold back and financial incentives that directly benefit the retailer. A cancellation reserve is a percentage of sales, which is repaid by the manufacturer to the dealer. The vehicle thus artificially raises the dealer costs on paper and are shown the vehicle more expensive than it really is. Their goal is to take the money away from the dealer and put it in your own pocket.

Bring your research with you to the vendors, including fair values, current discounts, offers, financing and trade-in estimates. An important aspect of the negotiation is a good deal, the seller to convince that you know what you are talking about before the trial. If you your credibility right at the beginning to have, is this the seller notice set up, that you are not a pushover.

Investopedia: 5 ways to a used car purchase

(2) You have a budget
Many merchants are asked whether you have a budget, or highest level to which you want to spend. Answer big question, but not directly. You should have a budget, but keep it to yourself. Their leverage, lower than your budget, disappears when you open, set this number because the seller now know what you are ready to negotiate.

You want to get the best car, you can while spending the least money possible to buy it. When you are asked if you have a budget to respond to that of the amount you will spend from the car and attractiveness depends on the whole deal. Are intentionally vague.

Review your financial situation and find out how much car you can realistically afford. In the location you would like to, offers and counter-proposals to make without this calculation on the ground must.

3. Consider your timing
If you buy at the end of a year model, merchants have to clean their available resources to make room for the new models. While a year lose depreciation and amortization, which is a decisive factor, if you plan to keep the car for several years. Retailers advertise special discounts at different times of the year and on some holidays.

If your purchase at one of these hours, you can not, you can be not, to stop you. Many retailers give the same discounts all year round when you are ready to negotiate for them.

Investopedia: Top 5 money saving tips for your car

4. Bring a friend
It is not uncommon that a seller reinforcements to bring, if you do not seem to stir. If you have someone with you, they can run interference and some sales distract pitches. This can be useful, if you against several sellers. Can your friend in a "good Cop - bad Cop" approach where your friend acts as a bad COP and makes you meet as a buyer and appear reasonable. Make sure that your friend is completely in advance informed about the role, which you want to play it.

This can work to your advantage, if the sales manager in the negotiation, to break a deadlock. He has generally more authority than the seller to price reductions.

5. Dress the part
You do not to look, how to burn money. When you trade in an old car, drive to the dealer and let the new Mercedes in the garage. Dress casually, but professionally. Sloppiness will not help, because the seller thinks that he waste time with you is. If you are lucky, are a Zadora, you, have to be at home.

At the dealer
There are services from consumer organisations and insurance companies that you can deploy with car cost data, and you can find some a fee. If you spend several thousand dollars of a new car, it is value issues a few to get this information. It will pay off in the long term.

More from Investopedia:

Investopedia ULC (copyright)

Read More

Auto dealers rev careful engines

First came high gas prices and the housing bust. The credit crisis, rising unemployment came industry bankruptcies and massive Toyota recalls.

After a steady stream of bad news for new car dealers, it seems like there are finally up - at least for those, who made it through the downturn keeping.

This could be good news for job seekers and as traders are be forced, added staff because so many positions in the recession, according to some analysts have been eliminated.

Ten jumps forward in car technology of Electric starters for three-point harnesses, here are 10 developments that changed for a good ride. What homebuyers can get for $200 K or less ConsumerMan: credit card reform working electric cars? Americans want more muscle

"The industry type return, has", said Toon van Beeck, senior analyst at IBISworld, who under which the prediction is that car dealers will have to hire new employees this year to to keep up with demand.

Others in the industry beware of these new jobs in slowly trickle could as the memory of the recent recession in many dealers heads stay fresh.

"I think many traders have learned how to get, with fewer people by", said Aaron Bragman, senior analyst at IHS global insight. "It is the same (story) we hear throughout the economy."

However, it is a glimmer of good news for an industry, flat on the back two years ago.

The National Automobile Dealers Association expects U.S. to grow new car sales 12% in 2011 to 12.9 million vehicles. This is well below peak level merchants saw years but profits would mark the second year of annual sales.

As a sales trader the same puzzles like countless other companies trying, economic recovery to negotiate faced: hire employees, too fast, and you risk hurting your bottom line. Rent too slowly and may you have not enough staff to keep growing company.

"There are some issues that can not avoid, want to when you are not caught out when the industry comes back dramatically," said Paul Taylor, an economist with the National Automobile Dealers Association.

As sales ramp up may trader concern that you could lose a sale or service job if not enough staff to calls back quickly, said Taylor.

Marc Cannon, a senior Vice President at AutoNation, one of the nation largest car dealership chains, predicts yet, that rent modest will be this year.

"We progressive growth this year compared with the previous year have, but I see no dealers..." "Fast assembly line," he said.

AutoNation an increase of 14 percent in profits last year to 226 million $, and both credited Cannon an increase of in car sales and productivity. Dealer chain lost $1.2 billion in 2008.

"I think traders have really learned how you operate in this environment," said cannon.

For those who are still in business, it is a great advantage for the downturn survived - customer turn not nearly as many competitors have, leave those who grab larger potential piece sales are still in the business.

Decreased the number of franchise dealerships that slowly shrink for years had dramatically during the recession partially due to pressure from the struggling US automaker. There were 17,698 new car dealers earlier this year, down more than 2,000 before two years according to NADA.

"Occur companies used to closed dealers is migration of existing dealers," said Taylor, the dealer trade group Economist.

How many companies struggling with the effects of the recession said Cannon car dealers who survived have eliminated or consolidated many back-office operations and increases their dependence on technology for some tasks.

He said dealers also have become much more efficient to cars by the service centers that can be a profit hub and have expanded their service hours more customers on weekends and evenings to serve.

? 2011 msnbc.com reprints

Read More