Thursday, 31 December 2015

Carfax parent company buys CarProof

IHS, the parent company of Carfax, announced Monday morning it has purchased CarProof Corp. for $650 million CND, which translates to about $460 million USD. CarProof is a vehicle history report provider in Canada. IHS bought Carfax in July 2013.
Jerre Stead, chairman and chief executive officer of IHS, said: "Like Carfax, CarProof is a high-growth business and gives IHS the opportunity to expand our vehicle history report services into Canada.
"By combining the capabilities of CarProof and Carfax, we also will accelerate product development to better serve the needs of our customers. This acquisition will add a highly accretive revenue-growth and EBITDA-margin business for IHS, and provide significant room for further growth."

Carfax Parent Company Buys Carproof.........

Wednesday, 23 December 2015

Ford in Talks with Google to Build Self Driving Cars

Google's new self-driving prototype car is presented during a demonstration at the Google campus in Mountain View, Calif. on May 13, 2015. California unveiled precedent-setting draft rules Wednesday, Dec. 16, 2015 that would slow the public's access to self-driving cars of the future until regulators are confident the technology is safe. (Tony Avelar/AP)

Google is said to be in talks with auto maker Ford Motor Co to help build the Internet search company's autonomous cars, Automotive News reported, citing a person with knowledge of the project.
The contract manufacturing deal, if finalised, is expected to come during the annual International Consumer Electronics Show in Las Vegas during the first week of January, Automotive News said.
A Google spokesman told Automotive News that the company would not comment on speculation, although Google officials confirmed that the company is talking to auto makers.
Earlier this year, Google began discussions with most of the world's top auto makers and assembled a team of traditional and nontraditional suppliers to speed efforts to bring self-driving cars to the market by 2020.
In June, Google began testing tiny, bubble-shaped self-driving prototype vehicles of its own design on public roads around Mountain View. The company has also started testing self-driving prototypes in Austin.
Google is expected to make its self-driving cars unit, which will offer rides for hire, a stand-alone business under its parent company, Alphabet Inc, next year, Bloomberg reported earlier.
Ford, although lagging behind most competitors, ramped up its pace to develop self-driving cars earlier this year and said it would expand advanced safety technology, including automatic braking, enabling hands-free operation of cars under certain conditions by automating such basic functions as steering, braking and throttle.
This was to be included across its global lineup over the next five years.
Reuters could not independently reach Ford Motor and Google for comment outside regular U.S. business hours.

By: Automotive News

Ford in Talks with Google to Build Self Driving Cars............

Friday, 18 December 2015

Traffic floods Bryan Honda’s Facebook sales beta test

When Bryan Honda of Fayetteville, N.C. decided to sell vehicles in real time directly within the Facebook platform, the dealership team wanted to see if the traffic would come - would people actually be interested?
And this Cyber Monday, when the social sales tool was beta tested, the dealership got its answer.
What Glover means by "broke" is the sales platform, run by, was so overloaded by users, it couldn't handle the traffic.
In the first hour, Glover said roughly 500 to 600 people tried to use the platform. But just because the system was overloaded didn't mean these leads went to waste.
"The good thing about it is, though, I'm a trained lead provider," said Glover. "So I have all of those contacts in my database. By the end of the day, I had over 1,000 interactions on the product. What that did is gave me proof of sale and interest, and a working model to actually launch the Facebook program in full."
And that might not be too hard, as software companies looking to partner with the dealership on further beta testing are now contacting the store directly in an effort to be involved.
As for those customers that tried to use the Facebook platform and were drawn to the dealership through social engagement on Cyber Monday? Many of those leads were converted, as well.
"Instead of going through the process completely online, we still connected with them and sent them information or brought them into the dealership," Glover said.
And this social surge of customers spelled a large increase in both Black Friday and Cyber Monday sales for the store.
Glover explained the dealership "went real hot and heavy" on social media for both the Black Friday holiday and Cyber Monday, using Facebook, Twitter and LinkedIn to drive leads.
And the work paid off. This past Black Friday, the store did 29 sales, compared to 19 sales in 2014. And on Cyber Monday, the dealership sold 19 vehicles, compared to just seven during the 2014 holiday.
A 'social focus'
So, why the focus on social media?
Glover said when he was working in auto sales about seven or eight years ago, he noticed everything was trending toward online. Think Google and growing online sales platforms.
And then another shift occurred.
"Google got expensive. If you wanted to have paid advertising on Google, it got pricey. So, I started looking at the social side of things," Glover said.
He shared the words of one of his mentors that lead him to start doing more with social media and Facebook, in particular.
"One of my mentors said, 'Facebook is the most accurate and intelligent survey ever created in the history of the world. It allows you to get any message in front of any person at any time anywhere in the world.' And that has stuck with me ever since," Glover said.
And Facebook also gives dealerships a platform to "listen" to their customers, which is key to things that come down the road such as social selling, Glover said.
"Most dealerships try to use social media and they go straight to social selling, which is really the last level when you are trying to sell anything online," Glover said. "The first thing you have to do is listen. What Facebook does in the best way possible is they listen to what people are saying, and then you can actually target and tailor your product or service to users."
To Glover, it's a no-brainer decision to focus on Facebook.
"In front of you, you have a system that will tell you when someone is looking for a vehicle, when they have purchased a vehicle, when they might be looking to get another vehicle, and if you know how to do it correctly by listening, you'll sell more vehicles," he shared.
Glover credits Bryan Honda general manager Tim Roussel, who he called "a forward-thinking manager," with giving him the opportunity to really dig in on the social side of things.
And it's paying off.
"We were doing maybe 200 cars a month, and now we are in the 300-350 range some months," Glover said.
And with social comes a focus on the demographic who uses it the most: millennials.
"According to reports, Cyber Monday was the biggest online sales day on record with $3 billion in sales, and millennials are driving a lot of that," Glover said.
That was certainly true for Bryan Honda.
For the week of Black Friday and Cyber Monday, online impressions for the store were dominated by the 25-35 age group, with the 35-44 age group in second place.
And as far as leads go, the No. 1 source for the holiday week was social engagement, from Facebook, Twitter or LinkedIn.
The dealership is making a concerted effort to reach these social shoppers and actually employs a social relationship management (SRM) team, whose members are taught how to talk directly to consumers through social, "because that's where they want to be met," says Glover.
Changing the game to serve millennials
Glover says it's important to realize that millennials aren't anti-social, growing up in the age of instant messaging and texts, "it's just the fact that they talk different."
For example, they might not want to walk through a meet and greet and 12-step sales process.
"They grew up in the Google age where they ask a question, and they want it answered first, and they want to know that you have listened to them before they go on to the sale," Glover said.
One way Bryan Honda does this is employing what Glover calls a "sales vortex" rather than a traditional "sales funnel."
To create this vortex, Bryan Honda pulls leads from all the social sites, as well as street teams, which Glover explained as a group of salespeople in Bryan Honda vehicles touting a logo that says, "Bryan Honda Street Team," that go out into the community and engage potential customers.
"What a funnel does is you take people or leads, and you push them down and gravity has to work to push them from the beginning out the bottom to make a sale. A vortex works in a completely different way," Glover said. "It works with a spinning motion and gravitates and pulls, and instead of gravity working, with the simple force of being able to relate and engage with these people, they will drop out on their own, and you will get so many more sales."


Traffic Floods Bryan Honda's Facebook Sales Beta Test..........................

Friday, 11 December 2015

VW Canada outlines ‘thank you’ package following apology ad

Volkswagen Canada kicked off December with a nationwide apology campaign, utilizing ads featured in over 100 newspapers across the country as well as a digital campaign to apologize to the Canada's Volkswagen owners for the company's damaged reputation following the diesel scandal uncovered earlier this year that is still not entirely fleshed out. Thomas Tetzlaff, VW Canada's manager of media relations, spoke with Auto Remarketing Canada to help clarify the situation, saying that the point of the message was not only to apologize to the Canadian VW ownership and fanbase, as well as VW dealers, but also to thank them.
"The campaign explains the impact of this situation on our proud legacy, values and trust in the Volkswagen brand," Tetzlaff said. "We take great pride in the base of support we have built in Canada and felt we owed it to our employees, dealers and customers to publicly acknowledge the damage done to Volkswagen's relationship with Canadians and to declare our full commitment to restoring faith in our brand. We hope that our customers will go to our microsite for additional information, and to register directly with us so as to facilitate further communication about this issue. By registering at the site, affected TDI owners will initiate the process to receive our appreciation package."
Tetzlaff said that the package is not intended as "compensation," but more as a sincere "thank you" for customers and dealers maintaining their patience while the company works on a remedy for the vehicles alongside regulators.
Similar to the deal offered in the United States, the VW Canada said the "thank you" package includes:
  • A $500 pre-paid credit card for use anywhere credit cards are accepted
  • A $500 dealer credit, which can be used at the Volkswagen dealer of their choice for service, parts, accessories or as payment towards a car purchase
  • 3 years of complimentary roadside assistance (an added three years for customers that still have their "original" roadside package in place)
"Thus far, we have received positive feedback from our customers, many of whom have already registered on the site," Tetzlaff said. "We are hoping to reach as many of our affected owners as possible, as this will improve the flow of information, and will expedite the repair process when it has been established."


VW Canada Outlines Thank You Package Following Apology Ad.........

Friday, 4 December 2015

9 best new vehicles as honored by AJAC

The Automobile Journalists Association of Canada has released nine "Best New" category winners for 2016, including double wins for both Volkswagen and Mercedes-Benz.
The nine vehicles are now in the running for the overall Canadian Car of the Year and Canadian Utility Vehicle of the Year awards, which will be announced at the Canadian International Auto Show in Toronto in February.
For 2015, the Subaru Legacy was named the Canadian Car of the Year, while the Ford F-150 took home the award for utility vehicles.
AJAC will also announce the winners of its Canadian Green Car of the Year awards at the Vancouver International Auto Show in March.
How were the nine winners chosen? Well, the race was on when some of Canada's best-known auto journalists gathered this past October in Clarington, Ontario for a four-day test-drive evaluation of brand-new or significantly changed models for an event known as "TestFest" held at the Canadian Tire Motorsport Park.
"TestFest is the most intensive new-vehicle evaluation process on the planet," said Gary Grant, co-chair of the Canadian Car of the Year committee. "No other organization employs such stringent testing methods to determine its award winners."
During the event, 71 auto journalists each drove vehicles in their categories - one after another on the same day and under the same conditions to ensure objective comparisons, AJAC shared.
"Our program is absolutely testing-based," said Justin Pritchard, also co-chair of the Canadian Car of the Year committee. "We have dozens of experienced vehicle testers driving dozens of vehicles, back to back, over the course of several days. This testing process generated 1,911 test drives, producing over 110,000 data points and 1,701 category ballots. It's important to note that every aspect of this testing data is shared online via our website, so shoppers can see how any given vehicle won its category, or how it stacked up to the category winner."
The results were tabulated by KPMG, which works with AJAC and its Canadian Car of the Year awards, and the categories cover segments ranging from Best New Sports/Performance to Best New SUV/CUV.
And most of these core categories are divided into price ranges to better provide fair and relevant comparisons, giving dealers another marketing tool when working with customers within a specific price budget. The winners are as follows:
Honda Civic
Volkswagen Golf Sportwagen 1.8TSI
Volkswagen Golf R
Mercedes-Benz AMG C-Class (C 63 S)
Mercedes Benz AMG GT (S Coupe)
Chevrolet Silverado
SUV/CUV under $35K
Mazda CX-3
SUV/CUV $35K - $60K
Kia Sorento
SUV/CUV over $60K
Volvo XC90

9 Best New Vehicles as Honored by

Friday, 27 November 2015

Larger models leading market in retained value

Canadians are turning toward the truck and SUV market more and more when looking for their next vehicle, a trend which in turn is helping keep retained value up for these segments.
That, and of course, the ever-present reality of tight used supply.
Year-to-date data on retained value for 4-year-old vehicles provided to Auto Remarketing Canada by Canadian Black Book shows that values remain the strongest among the larger segments.
Full-size trucks, in particular, have outperformed the rest of the market this year, and Josh Bailey, Canadian Black Book editorial director, pointed out "there has been virtually no depreciation through the year" for this segment.
Here's why:
"This is the hottest U.S. export item, and used pickups are still a hot item on Canadian dealers' lots too," said Bailey.  "Without a drop in pick-up demand in the U.S. or a change in the exchange rate there is not likely going to be a change in prices soon."
The full-size pickups ended November with a retained value rate of 52.80, after starting the year at 49.29 percent.
The lowest this segment dropped has dropped this year was in March, when rates fell to 48.72 percent. From June through November, retained values stayed above 50 percent for full-size pickups. Small pickups are seeing similar price movement and finished November with retained value of 49.01 percent.
The full-size luxury SUV segment is also worth mentioning, as its value has stayed above 50 percent all year, coming in at 50.98 percent for in November.
On the other hand, many of the car segments make up the worst-performing group of segments, as far as retained value is concerned.
Full-size cars have seen some of the lowest value rates this year, bottoming out at 32.06 percent in November. The subcompact car segment is also seeing prices suffer, dropping to 34.63 percent in November after starting the year off with retained value of 41.90 percent.
Similar trends also show up in RVI's Used Vehicle Price Index forecast. RVI expects the full-size SUV segment to end the year with prices elevated 11.9 percent over 2014 rates, while small SUVs are expected to see a 14.5-percent year-over-year spike. And small pickup prices are expected to end the year with prices elevated by 19.7 percent year-over-year.

Friday, 20 November 2015

J.D. Power Study On Auto Bells And Whistles

Cars are becoming wearable devices. Smartphones are pretty much annealed into car consoles at this point, and automakers are figuring out how much more functionality they can add before the display looks like the control panel of the Millennium Falcon.
Maybe what is missing is the need-to-know: which devices and apps are car drivers actually using? Not a lot of them, if J.D. Power's new 2015 Driver Interactive Vehicle Experience is correct. And the not-great news for automakers like GM, which invested a lot in its 4G LTE WiFi deal with ATT, is that so far, in-car routers and concierge services aren't on that must-have list.
The report, which looks through a 90-day ownership window to gauge who is using what, found that 20% of new-vehicle owners have never used 16 of the 33 technology features that the firm measured. The five features owners most commonly report that they "never use" are in-vehicle concierge (43%); mobile routers (38%); automatic parking systems (35%); head-up display (33%); and built-in apps (32%).
The study also found that there are 14 technology features that 20% or more of owners do not want in their next vehicle. Among them are Apple CarPlay and Google Android Auto, in-vehicle concierge services and in-vehicle voice texting. Among Gen Y, the number of features unwanted by at least 20% of owners increases to 23, specifically technologies related to entertainment and connectivity systems.
"In many cases, owners simply prefer to use their smartphone or tablet because it meets their needs; they're familiar with the device and it's accurate," said Kristin Kolodge, executive director of driver interaction & HMI research at J.D. Power, in a statement. "In-vehicle connectivity technology that's not used results in millions of dollars of lost value for both consumers and the manufacturers."
When owners said they didn't want a feature, it was mostly the simple fact that they didn't find it useful in their current vehicle. And they hadn't chosen it in the first place, since they averred that "it came as part of a package on my current vehicle and I did not want it."
The study also suggests that if dealers knew more about the technology themselves and were adept at explaining it there would be a higher likelihood there might be a higher chance that customers would use it. And if the features aren't activated when the customer drives off the lot, they may not know they even have it. But, said Kolodge, "while dealers are expected to play a key role in explaining the technology to consumers, the onus should be on automakers to design the technology to be intuitive for consumers." She said automakers should do more to explain the technology to dealership staff and train them on how to demonstrate it to owners.
On the other hand, the study found that the technologies owners most often want are those that enhance the driving experience and safety, available as a built-in feature. What they said they are most interested in are vehicle health diagnostics, blind-spot warning and detection, and adaptive cruise control. "The first 30 days are critical. That first-time experience with the technology is the make-it-or-break-it stage," said Kolodge. "Automakers need to get it right the first time, or owners will simply use their own mobile device instead of the in-vehicle technology."

by Marketing Daily

J.D. Power Study on Auto Bells and Whistles.....................................................

Friday, 13 November 2015

$968 billion in open auto loans

Outstanding car loans hit a high point in the third quarter and have climbed more than 53 percent in the last five years, which appear to be good signs for the industry. As does the increase in car sales that has come with this rebound in auto finance. However, Experian's Melinda Zabritksi says, whether these rosy times continue hinges largely on consumers continuing to make their payments.
And for the most part, they have done so.
According to the State of the Automotive Finance Market report from Experian Automotive, 30-day delinquencies fell from 2.7 percent in the third quarter of 2014 to 2.5 percent in Q3 2015.
Likewise, 60-day delinquencies showed a similar decline, moving from 0.74 percent to 0.73 percent.
Overall, outstanding auto loan balances were at $968 billion in the third quarter, which Experian said was its highest level.  A year ago, total open balances were at $870 billion. The year before, $784 billion.
Perhaps most important, the Q3 2015 figure is more than 53 percent higher than the post-recession trough.
"Continued growth in the automotive finance market is a clear sign of improved consumer confidence over the past few years," Zabritski, Experian's senior director of automotive finance, said in the company's news release accompanying the study results.
"Since bottoming out in the recession, automotive sales have rebounded steadily, which is a good sign for consumers, automotive manufacturers, lending organizations and the overall economy. What's critical to this success is that consumers stay on top of their payments," she added. "If they can continue to manage their financial obligations and make timely payments, the automotive industry can continue to flourish and grow for quite some time."
Breaking down the credit tiers of open loans
  • 20.82 percent of open loans were super prime.
  • 40.36 percent were prime.
  • 18.42 percent were nonprime.
  • 16.61 percent were subprime.
  • 3.79 percent were deep subprime.
Experian said in its news release for the study that "the distribution of open loans by risk segment remains relatively unchanged, demonstrating that the surge in outstanding automotive financing is driven by consumers across the board, not a specific segment of the market."
The super prime category had the biggest year-over-year jump in open loan volume (up 8.34 percent), but subprime (up 7.8 percent) and nonprime (up 7.7 percent) weren't far behind.

by: AutoRemarketing

968 Billion in Open Auto

Friday, 6 November 2015

Made in China Quality Is Not Good Enough, Lexus Says

An employee inspects the paint finish of a Lexus NX SUV at the Miyata plant in Fukuoka Prefecture. Lexus has long prided itself for home-grown craftsmanship, with artisans on Japan assembly lines donning white gloves and honing years of factory experience before being entrusted to handle final inspections.

Car buyers in China may have to wait decades before Toyota Motor Corp. begins producing Lexus luxury cars locally, as the world's largest automaker wagers they'll favor made-in-Japan vehicles as a guarantee of quality.
While BMW, Mercedes-Benz and Audi all manufacture in China, Lexus has stuck to shipping finished models from Japan, incurring import taxes that make its offerings more costly. The brand remains a holdout from building locally despite indications of significant improvement in China's auto manufacturing credentials.
"There's too much quality risk in China to produce there," Takashi Yamamoto, executive vice president of Lexus International and an engineer who's worked at Toyota for 33 years. The company also still has to improve the brand's awareness and standing among consumers. "When that difficulty is gone, maybe local production is likely to be launched in China, maybe several decades later," he said.
As long as Lexus continues to resist building vehicles in China, it prolongs pricing disadvantages relative to locally produced German luxury cars. Import duties help push up the starting price of the Lexus IS sedan to about 369,000 yuan ($58,200). That's a premium of about 30 percent over BMW's 3-Series, and 35 percent more than Audi's A4, according to auto-pricing website Autohome.
Toyota rose 1.4 percent to 7,482 yen at 9:51 a.m. in Tokyo trading, matching the gain for the benchmark Topix index.
The hesitation by Lexus contrasts with data that show the quality of vehicles made in China has improved over the years to rival those in developed markets. Standards have risen as international automakers set up plants in the country and shared expertise and manufacturing processes with their local joint venture partners.
The 5 Series cars produced at BMW's plant in Shenyang in northeastern China have won top ranking in J.D. Power & Associates' quality award for the past four years. The same plant has also helped a South African factory raise efficiency and reduce defect rates at its paint shop.
New-vehicle owners reported105 poblems per 100 vehicles in J.D. Power's China initial quality study, released last week. The number of problems reported has fallen from 168 in 2010, and was lower than the 112 industry average for the U.S. market this year.
"It doesn't necessarily mean that China vehicles have better quality, but it shows the competitiveness of the China-produced vehicles," Geoff Broderick, an automotive analyst for J.D. Power, wrote in an e-mail. More experienced production line workers, increased automation and more use of standardized quality-control processes have improved the quality of vehicles built in China, he said.
Lexus has long prided itself for home-grown craftsmanship, with artisans on Japan assembly lines donning white gloves and honing years of factory experience before being entrusted to handle final inspections. Toyota's view that quality can be better controlled from its home market contributed to the 26-year lag between Lexus first beginning sales in the U.S. and starting production in the country.
Toyota's Kentucky factory began assembling Lexus ES sedans last month, joining a plant in Ontario, Canada, as the luxury brand's only production sites outside Japan.

'Common Ground'

"Americans and Canadians have a tradition, a history of building and manufacturing automobiles, so mentality-wise we have some common ground," Yamamoto, 57, said in an interview last week at the Tokyo Motor Show. "Chinese people, their history of building automobiles is rather short, so it's so difficult to locally build a high-quality car there."
Higher prices have held back Lexus sales in a market that has been a source of explosive growth for BMW AG, Volkswagen AG's Audi and Daimler AG's Mercedes-Benz. While Lexus set an annual global sales record of 583,000 vehicles last year, less than 15 percent of deliveries were in China. BMW sold more vehicles in China than Lexus did worldwide in 2014.
Exposure to China's auto market has been a detriment to some automakers' share prices this year, as slower sales growth has led some companies to discount their vehicles. Lexus can better control its pricing by importing than the German companies producing millions of vehicles in China, Yamamoto said.
"Made-in-Japan guarantees quality," he said. "If you shift to made-in-China, there could be some peripheral issues accompanied with this."

By Bloomberg Business

Made in China Quality is Not Good Enough, Lexus Says.....................

Friday, 30 October 2015

Toyota launches massive recall for window switch defect

 Toyota Canada Inc. announced a new safety recall this week for issues with the driver's side power window master switch in certain vehicles.
In impacted vehicles, the power window master switch may have been manufactured with insufficient lubricant grease.
"If sufficient grease is not applied, under certain conditions the switch may develop a short circuit that can cause the switch assembly to overheat and melt. A melting switch can produce smoke and potentially lead to a fire," the company said in the statement announcing the recall.
As of Thursday, the VIN range of possible affected vehicles was still subject to confirmation, and Transport Canada will be notified as soon as the number becomes available, the company said.
That said, the automaker has reported the issue impacts 6.5 million vehicles worldwide, 2 million of which are in the U.S.
Affected models include:
  • 2007 and 2009 Toyota Camry and Toyota Camry Hybrid
  • 2009-2011 Toyota Corolla
  • 2009-2011 Toyota Highlander and Toyota Highlander Hybrid
  • 2009-2011 Toyota Matrix
  • 2006-2007 and 2009-2011 Toyota RAV4
  • 2009-2011 Toyota Sequoia
  • 2009-2011 Toyota Tundra
  • 2006-2007 and 2009-2011 Toyota Yaris
  • 2006 and 2009-2011 Scion xB
  • 2009-2011 Scion xD
Interestingly, Toyota previously recalled a group of 2007-2009 model-year vehicles for a similar conditions, and this safety recall serves to add vehicles not previously involved in the prior action that utilized an alternative lubricant application method.
Owners of the involved vehicles will be notified by mail. When owners bring their vehicles in, Toyota dealers will inspect the switch and apply heat-resistant grease. Then, if the switch is not operating normally, the switch circuit board will be replaced.

Toyota Launches Massive Recall for Window Switch Defect..............

Friday, 23 October 2015

Top 15 vehicles owners keep for 10 years

What cars do owners hold onto the longest? Besides the fact that vehicles are lasting longer today than ever before, this is a valuable question - a question whose answer could potentially increase service revenues and make valuable trade-in prospects. took a look at over 395,000 used cars from model year 2005, sold by the original owner between January 1 and July 30 of this year, to get a better understanding of what kind of vehicles were reaching the decade mark by these original owners who bought the cars new.
Looking at the iSeeCars chart below, you'll see the 15 models among the 168 models studied that were kept the longest, all at least 1.5 times or more likely to be held onto than the average vehicle (which came in at 13.5 percent overall).
Top 15 New Cars Owners Hold Onto for 10 Years
Rank Model % Original Owners Holding Car for 10 Years
Compared to Average
1 Honda CR-V 28.6% 2.1x
2 Toyota Prius 28.5% 2.1x
3 Toyota RAV4 28.2% 2.1x
4 Toyota Highlander 26.5% 2.0x
5 Honda Odyssey 25.6% 1.9x
6 Toyota Sienna 25.4% 1.9x
7 Toyota Camry 24.4% 1.8x
8 Toyota Avalon 23.8% 1.8x
9 Honda Pilot 23.3% 1.7x
10 Honda Element 23.1% 1.7x
11 Subaru Forester 22.9% 1.7x
12 Toyota Matrix 22.6% 1.7x
13 Honda Accord 22.1% 1.6x
14 Toyota Corolla 21.5% 1.6x
15 Toyota 4Runner 21.1% 1.6x
  Average of All Cars 13.5% -
Some quick takeaways you'll notice: they're all from Japanese automakers. Nine are Toyotas. Five are Hondas. One Subaru.
That's not the surprise, however, according to's chief executive officer, Phong Ly. The surprise comes from their segment makeup.
Ten out of the 15 vehicles are CUVs or minivans, with four out of the top five falling into either one of those two categories.
"These vehicles tend to be largely family cars, so if people buy these cars when they are just starting their families, it stands to reason that these cars would suit them for many years," Ly said in an analysis of the data.
Another key takeaway, according to iSeeCars, is the weak showing by what they see as the most popular vehicles from the list of fledgling double-digit ownership.
% of Owners Holding Onto Popular Cars
Model % Original Owners Holding Car for 10 Years Compared to Average
Toyota Camry 24.4% 1.8x
Honda Accord 22.1% 1.6x
Honda Civic 18.2% 1.3x
AVERAGE 13.5% -
Chevrolet Silverado 1500 13.1% 1.0x
Nissan Altima 13.1% 1.0x
Dodge Ram Pickup 1500 11.7% 0.9x
Ford F-150 11.4% 0.8x
Ford Escape 10.9% 0.8x
Chevrolet Equinox 10.0% 0.7x
Jeep Grand Cherokee 9.5% 0.7x
The list is especially devoid of one of North America's favorite vehicle types, the pickups.
"One reason that may be is because these cars are often used as work vehicles, such as in construction," Ly said. "Work vehicles log many more miles than average, likely requiring them to be replaced sooner."
On that same note, Ly also speculates that the absence of domestic brands in the most-held-onto group might be a result of them not having the same reputation for reliability that the Japanese brands typically garner.
The bottom of the overall list is riddled with domestic vehicles that are typically known for their use in commercial fleets or as rental vehicles, including the Chevrolet Impala, Chrysler Sebring and the Ford Taurus, or vehicles that make popular lease choices, like the BMW 5 Series.
"All of those markets are designed for cars that are no more than a few years old, so a decade after these 2005 cars were introduced, most of them would be sold by their second or third owners, rather than the original owners," Ly said.
According to Ly, car shoppers can sometimes find the most value in these older vehicles that have been kept by a single owner.
"Cars kept by the original owners for a decade tend to be well-cared-for, in terms of actual maintenance and repairs as well as overall cleanliness, so a car shopper is likely to find more value than in a car that has been through multiple owners and with a history that may not be so straightforward," Ly said.
By Auto Remarketing Staff.
Top 15 Vehicles Owners Keep for 10

Friday, 16 October 2015

Phablet users dig auto sites

After reading this headline, you may be saying to yourself, "What is a 'phablet?'"
Or holding back a chuckle at the silly sound of the word.
While either of those might be an appropriate response, a "phablet" - a smartphone with a screen size of 5.5 inches or larger, nearing the size of a tablet - is the source of media for a large constituent of mobile users.
And, according to the J.D. Power 2015 Automotive Mobile Site Study, the satisfaction with OEM and third-party automotive websites is higher across all aspects of the online experience among shoppers using them.
"Automotive manufacturer and third-party website designers should be mindful of growing phablet usage and take advantage of the larger screen by displaying more content and adding detail to maximize shopper satisfaction and drive more traffic to dealer showrooms," said Arianne Walker, senior director of automotive media and marketing at J.D. Power. "The time spent on mobile devices for automotive shopping is increasing, and this trend of buying and using phablets is expected to continue."
Breaking down the numbers, the study shows that vehicle shoppers using "phablets" are more satisfied with their individual website experiences than those who use smaller smartphones (797 versus 771, respectively, on a 1,000-point scale).
There are also significant satisfaction gaps in individual study measures for shoppers using larger or smaller smartphones, including satisfaction with information/content (796 versus 769), navigation (783 versus 758), appearance (816 versus 791) and speed (794 versus 767).
Acura, TrueCar shine in website rankings
Looking directly at the ratings of manufacturer-branded and third-party website rankings, on the same 1,000-point scale, Acura ranked the highest (812) in overall customer satisfaction index scores of OEM sites while TrueCar ranked the highest (776) among its third-party rivals.
Here are the top three for each segment:
Manufacturer-branded mobile site rankings
  1. Acura (812)
  2. Infiniti (809)
  3. Fiat (808)
Third-party mobile site rankings              
  1. TrueCar (776)
  2. CarGurus & Yahoo! Autos (both 744)
  3. U.S. News Best Cars (742)

by Auto Remarketing Canada

Phablet Users Dig Auto Sites.....................

Friday, 9 October 2015

CADA asks feds to cut taxes & 'red tape'

Dealers are calling for the Canadian government to focus on creating an environment for dealerships and small businesses to prosper. The Canadian Automobile Dealers Association - representing 3,300 franchised dealers - launched its election campaign platform on Monday, which focuses on policy recommendations that will create a favorable environment for dealerships to succeed in what is a challenging domestic economic landscape in light of falling oil prices and a suffering currency exchange rate.
"Car dealers have a great story to tell," said Michael Hatch, CADA chief economist. "We are the largest and most geographically broad sector of the Canadian auto industry, which has come through very challenging times in recent years. As the federal parties finalize their own platforms and economic policies ahead of the vote in two weeks, we are here today to present automobile dealers' election campaign platform to help ensure prosperity in highly challenging domestic economic times."
CADA's federal policy priorities focus, in particular, on four items, as outlined by the organization:
  • Further tax reduction for small businesses and consumers
Explaining CADA's tax deduction plan, the organization is calling for legislators to improve dealers accessibility to the small business deduction by "reducing the current grind that sees capital-intensive small businesses like auto dealers lose access to the small business tax rate."
It is also calling for the government to remove lien notes from the calculation of taxable capitol in further efforts to seek access to the small business tax rate.
  • A continued push for red tape elimination
CADA is asking the government to continue to cut down on what it calls "needless red tape." Specifically, the organization is calling for paper fuel economy labels for new cars and trucks to remain voluntary and not mandatory, noting these labels are "old fashioned."
  • Maintenance of automobile leasing provisions in the Bank Act
CADA is also voicing its continued support for the maintenance of current restrictions on the Banks in the automotive leasing business. This is particularly important to the new-car industry as leasing levels extremely high before the economic downturn and fell off dramatically after 2008, impacting the new- and used-car business.
  • Policies aimed at improving the way in which the Canada Revenue Agency administers tax law in Canada
On this point, CADA is focusing on calling the government to make the needed investments to ensure CRA has the industry-specific knowledge it needs to "administer tax law fairly and evenly for new-car dealers." They are also calling for increased communications between CRA's rulings and audit divisions on business tax policies going forward.
Lastly, the organization is asking the government to continue its efforts to lower tax levels for consumers and small businesses, working to ensure these tax reductions are not made void by provincial tax hikes.
"Canada's car dealers bring to the federal parties a comprehensive list of policy recommendations aimed at ensuring a sustainable economic recovery for small businesses of all kinds," continued Hatch. "As all parties finalize their campaign platforms, we urge them to keep economic policy and small business at the forefront of their policy priorities."

CADA Asks Feds to Cut Taxes & Red Tape...........................................................

Friday, 2 October 2015

EPA plan to assess other diesel vehicles

The VW emissions scandal - or Dieselgate, as the public has dubbed it - continues to unfold, as the automaker reported a shift in leadership last week and continues to be hounded by regulators across the globe.
For example, on Sept. 22, the Government of Canada opened an investigation into VW's alleged use of defeat devices to get around emissions regulations, shortly after VW Canada called for a stop sale of the effected diesel models.
And this week, Environment Canada announced it is expanding its on-going collaborative work with the U.S. Environmental Protection Agency to assess other diesel vehicles for defeat devices, turning its sights on other brands and automakers, as well.
"Vehicles will be subject to a variety of tests including on-road testing using portable emission measurement systems. This collaboration will ensure we move as quickly as possible to test the broadest spectrum of light-duty diesel makes and models for potential defeat devices," the statement released on Monday stated. "Environment Canada is actively acquiring light duty diesel vehicles to test for defeat devices or other compliance issues."
Environment Canada also stated it's important to note these activities are separate from the VW investigation it announced on Sept. 22.
Just a day after Environment Canada announced it is looking into other diesel makes and models, multiple online reports indicated that VW OEM leadership in Germany is making plans to modify up to 11 million units worldwide to correct the aforementioned defeat device software. The plan is projected to cost $6.5 billion.
The entire incident certainly has escalated - to the point that Volkswagen replaced its top executive last week.
Furthermore, VW also confirmed on Tuesday what reportedly was in the works - with activities in the U.S., Mexico and Canada being consolidated as one new North American region and Winfried Vahland, formerly the chairman of the board of directors at Skoda, as the leader of the region.
The OEM indicated this newly formed region with Vahland at the controls as president and CEO will be effective Nov. 1.
Environment Canada's statement to start looking into other diesel vehicles for the same issue that brought about the VW investigation might be cause for worry for automakers as the scandal is already heavily impacting consumer trust in VW brand.
A recent survey by California-based AutoPacific shows only 1 out of 4 vehicle owners have a positive opinion of VW, compared to 3 out of 4 prior to hearing the recent news.
Its Audi brand is suffering, as well, as 29 percent of those surveyed said they have a favorable opinion of the brand, compared to 69 percent prior to the news break.
And trust is the automaker is waning, as well, since 64 percent of survey respondents said in light of the issue, they no longer trust VW.
"How Volkswagen handles this issue is critical. Trust in an important issue with consumers, and every brand works hard to maintain that trust," says Dan Hall, Vice President at AutoPacific.

EPA Plan to Assess Other Diesel Vehicles..........................................................

Friday, 25 September 2015

Self-Parking Tech vs. Drivers, Who Wins?

The technology isn't the problem. Confidence in it is.

Americans don't trust self-parking technology. But maybe they should.
Some 80% of American drivers are confident in their parallel parking abilities, according to a survey by AAA. However, the organization found in a series of tests that self-parking technology outperformed manual parkers in number of curb strikes and maneuvers, speed, and accuracy. Drivers lost out even though they had help from a standard back-up camera in the car.
AAA and the Automobile Club of Southern California's Automotive Research Center tested self-parking features on five vehicles: a 2015 Lincoln MKC, a 2015 Mercedes-Benz ML400 4Matic, a 2015 Cadillac CTS-V Sport, a 2015 BMW i3 and a 2015 Jeep Cherokee Limited.
The testing found drivers who used self-parking systems experienced 81 percent fewer curb strikes and were able to complete the task 10 percent faster than drivers who did it themselves. Self-parking systems parallel parked the vehicle using 47 percent fewer maneuvers, with some systems completing the task in as little as one maneuver, according to AAA.
Self-parking tech does have its issues. AAA found that some systems parked the vehicles exceedingly close to the curb, which left wheels and tires vulnerable to scratches and costly repairs. Some systems left as little as a half-inch buffer. AAA recommends drivers leave 6 to 8 inches between the vehicle and the curb when parallel parking.
Self-parking technology might do a better job, but drivers just aren't ready to give up control of the wheel. Only one-in-four drivers who responded to the AAA survey said they would trust this technology to park their vehicle.
And therein lies the conundrum for automakers, which are under industry pressure to add more technology to their new vehicles. In-vehicle technology is big business-about $14.5 billion in projected revenues for this year alone, according to the Consumer Electronics Association. And yet, consumers are wary of a lot of the tech that's being added to vehicles. And in some cases, consumers are apparently so repulsed by certain tech that they'd rather it not be included in their next car.
A survey released in August 2015 by J.D. Power found that at least 20% of new vehicle owners have never used 16 of the 33 technology features measured. In the J.D. Power survey, 39% of consumers surveyed said they don't want an automatic parking system in their next car. However, 82% said they would like parking assist (which still gives the driver manual control).
In short, there's a significant gap between the technology available in cars today and people who actually want to use it. In some cases, it's a lack of trust in the technology (or seen another way, a greater confidence in our own abilities). In other cases, consumers just don't see a need for the technology.
Either way, this hesitation toward today's tech foreshadows the challenge automakers face to convince people to give up all control and jump into a self-driving car. Google and Apple , among others, are already working on and testing self-driving cars. The technology isn't the problem. Confidence in it will be.

Self-Parking Tech vs Drivers, Who Wins?

Friday, 18 September 2015

Canadian demand for new credit strongest in the auto sector

New data from Equifax Canada's Q2 National Consumer Credit Trends Report showed that demand for new credit is strongest in the auto sector, and is growing everywhere except Quebec.
The report also found that Canadians are still adding on debt, but at a slower rate seen in past quarters.
According to the report, total consumer debt is now at $1.568 trillion, driven primarily by the installment loan and auto loan sectors. In fact, debt in the auto loan sector increased by 3.9 percent year-over-year in Q2.
The average consumer debt is $21,164, which increased by 2.0 percent versus 2.7 percent in the previous quarter, the report stated.
"The overall trend we've seen with debt levels going up and delinquency rates coming down is still the case, but some of the sub-segments within the Canadian population are changing their behavior," explained Regina Malina, senior director of decision insights at Equifax Canada. "We're starting to see the impact of low oil prices in the West as these prices are forcing a new reality on Alberta and Saskatchewan in particular. In these two provinces the debt levels are stable, but the delinquency rate has started to increase."
As oil prices continue to slide, Equifax Canada reported Canada is slipping into a "mild recession," though the company also reported appetite for new credit is still on the rise, with the strongest activity observed in the auto, bank and national credit card sectors.
As far as delinquencies go, in mid-2015, it decreased to 1.09 percent after rising in Q1. And Equifax Canada reported auto loan delinquency rates continued to increase when compared to the previous quarter.
When compared to the same quarter last year, the national 90+ day delinquency rate decreased, as well, driving by improving rates in Ontario.
On the other hand, delinquency rates in Quebec and the Eastern region are on the rise.
And in the Western provinces, after delinquency declined over the past several year, the areas saw rates rise this past quarter.
This movement was driven, of course, by significant delinquency increases within the oil-heavy regions of Alberta and Saskatchewan.
A recent study from TransUnion asserted consumers and lenders should expect "sharp increases" in credit and loan product delinquencies in the near future, especially in the oil-heavy regions of Alberta and Saskatchewan.
"Based on an historical analysis of the last oil crash and recent payment behavior trends, we expect materially higher delinquency rates in Alberta and Saskatchewan in the second half of 2015," said Jason Wang, co-author of the study and TransUnion's director of research and industry analysis in Canada.
Taking a look at demographics, the delinquency rate for Canadians over 65 rose for the first time since 2010 by a rate of 2.4 percent in Q2, according to the Equifax Canada report.
"Delinquency rates for all other age groups are decreasing by different degrees, but for the first time in several years, we've seen this change in behavior from seniors," said Malina. "In the light of the fact that debt carried by seniors has been increasing faster than for other age groups for a while, we will monitor this trend closely in the coming quarters."
As for bankruptcies go, rates have consistently declined since 2009.
Equifax Canada reported Ontario continues to lead the pack in terms of the decline in bankruptcies.
The number of bankruptcies has decreased since 2009.
Ontario continues to lead in terms of the rate of decrease of bankruptcies.
That said, the report stated that average bankruptcy balances increased in Q2 year-over-year, driven primarily by the younger segments, as well as in the Western and Eastern regions.

Canadian Demand for New Credit Strongest in the Auto Sector........................

Friday, 11 September 2015

Cars take 34% longer to enter used market

Three other factors besides vehicle dependability triggered a 34-percent spike during the past 12 years in the average time for a new vehicle to enter the used market for the first time.
According to the latest report from the Used Car Guide division of J.D. Power, that average time moved from 48.2 months in 2003 to 64.7 months in 2014.
Analysts arrived at the metrics after reviewing IHS Automotive registration data.
Used Car Guide acknowledged vehicle dependability certainly played a significant role in the trend, but three other factors did, too, including:
- Economic conditions
- Automaker discounts
- Finance terms
With those trends in mind, here are two key takeaways dealers, finance companies and other industry observers should digest.
J.D. Power Power Information Network (PIN) data indicated that new vehicle length of ownership is "more or less" keeping pace with progressively stretched loan terms, report authors surmised. PIN data put installment contract terms year-to-date at an average of 67.3 months.
"Certainly the trend toward longer loan terms isn't without tangible risk," analysts said.
"For example, longer terms increase the time required to reach positive equity," they continued. "But it's much less likely the vehicle will suffer a significant operational failure before the loan is paid in full.
"Consumers and lenders wouldn't be as willing to take on the added risk if it were," the report goes on to say.
Further cementing the point about risk is this: Experian Automotive pointed out that average amount financed to complete a new-vehicle installment contract during the second quarter increased by $1,095 year-over-year to come in at $28,524.
The other takeaway Used Car Guide wanted to leave with the industry is how all of these elements are combining to impact the consumer purchase cycle.
"The longer the length of ownership, the more time has to pass before a consumer is back in the market for another new or pre-owned vehicle," analysts said.
Earlier this year when Experian Automotive only had Q1 data to share, analysts spotted that contracts with terms lasting 73 to 84 months accounted for a record-setting 29.5 percent of all new vehicles financed, marking an 18.6 percent rise above Q1 2014 and the highest percentage on record since Experian began publically tracking this data in 2006.
In Q2, that level of 73 to 84 months contracts came in at 28.8 percent, slightly lower than the record established a quarter earlier. However, the reading still marked a 19.7-percent climb year-over-year.
Experian Automotive offered this assessment after the record was set earlier this year.
"While longer term loans are growing, they do not necessarily represent an ominous sign for the market," said Melinda Zabritski, Experian's senior director of automotive finance and a keynote speaker for the SubPrime Forum during Used Car Week.
"Most longer-term loans help consumers keep monthly payments manageable, while allowing them to purchase the vehicles they need without having to break the bank," Zabritski continued. "However, it is critical for consumers to understand that if they take a long-term loan, they need to keep the car longer or could face negative equity should they choose to trade it in after only a few years."
The report from the Used Car Guide referenced above is titled, "Lasting Longer: How Better Quality is Affecting Used Vehicle Demand." It discusses how new-car quality and durability has increased significantly over the past two decades, and notes how this is having a strong impact on how these cars are bought and sold as used vehicles.

By Auto Remarketing staff

Cars Take 34% Longer to Enter Used Market.....................................................

Friday, 4 September 2015

Carproof Adds Badges to Vehicle History Reports

CarProof Corp., makers of vehicle history reports, announced Wednesday the addition of easy to read badges to its reports as an attempt to improve readability and simplify transparency. The new badges aim to make it easy for car buyers to identify key attributes they may be looking for in a used vehicle, examples being accident free or one-owner vehicles.
"In numerous recent studies, consumers rated previous accident information as mission critical to the used-car research process," said Ed Woiteshek, CarProof's president and chief executive officer. "Used-car buyers want information they can digest in a single glance that is easy to understand. With these badges, shoppers can tell right away if the vehicle they're looking at has the features that matter to them. Our hope is that this will change the way consumers use our reports and search for cars online."
According to the company, another aim of the badging is to make it as clear as possible to consumers that the dealers who use the history reports value transparency and deserve their trust. The badges began to appear on CarProof's vehicle history reports on Wednesday, with the future option for opportunities to digitally integrate badges into online vehicle listings at a future date.

Carproof Adds Badges to Vehicle History Reports.......................................

Friday, 28 August 2015

Automakers Spending Billions on Technologies That Many Consumers Don’t Use

Built-in Connectivity among Least Used Technologies, Creating Lost Value
WESTLAKE VILLAGE, Calif.:  25 August 2015 - Automakers are investing billions of dollars to put technologies in their cars and light trucks that are not being used by many of the owners of those vehicles, according to the J.D. Power 2015 Driver Interactive Vehicle Experience (DrIVE) Report.SM
The 2015 DrIVE Report measures driver experiences with in-vehicle technology features during the first 90 days of ownership.
The report finds that at least 20 percent of new-vehicle owners have never used 16 of the 33 technology features measured. The five features owners most commonly report that they "never use" are in-vehicle concierge (43%); mobile routers (38%); automatic parking systems (35%); head-up display (33%); and built-in apps (32%).
There are 14 technology features that 20 percent or more of owners do not want in their next vehicle, including Apple CarPlay and Google Android Auto, in-vehicle concierge services and in-vehicle voice texting.  Among Gen Y, the number of features unwanted by at least 20 percent of owners increases to 23, specifically technologies related to entertainment and connectivity systems.
"In many cases, owners simply prefer to use their smartphone or tablet because it meets their needs; they're familiar with the device and it's accurate," said Kristin Kolodge, executive director of driver interaction & HMI research at J.D. Power. "In-vehicle connectivity technology that's not used results in millions of dollars of lost value for both consumers and the manufacturers."
Among all owners, the most frequently cited reasons for not wanting a specific technology feature in their next vehicle are "did not find it useful" in their current vehicle and the technology "came as part of a package on my current vehicle and I did not want it."
In addition, owners who say their dealer did not explain the feature have a higher likelihood of never using the technology. Furthermore, features that are not activated when the vehicle is delivered often result in the owner not even knowing they have the technology in their new vehicle.
Kolodge noted that the technologies owners most often want are those that enhance the driving experience and safety, which are only available as a built-in feature rather than via an external device. In-vehicle technologies that most owners do want include vehicle health diagnostics, blind-spot warning and detection, and adaptive cruise control.
"The first 30 days are critical. That first-time experience with the technology is the make-it-or-break-it stage," said Kolodge. "Automakers need to get it right the first time, or owners will simply use their own mobile device instead of the in-vehicle technology."
Because the first few weeks of ownership are so critical, dealerships play the most important role in helping owners get off to a good start with the technology in their vehicle, Kolodge noted.
"While dealers are expected to play a key role in explaining the technology to consumers, the onus should be on automakers to design the technology to be intuitive for consumers," said Kolodge. "Automakers also need to explain the technology to dealership staff and train them on how to demonstrate it to owners."
Safety and Repair Costs
Use of in-vehicle technologies has implications beyond the auto industry. For example, the insurance industry is closely tracking automotive technology for safety and financial purposes. Insurers are concerned that difficult-to-use technology may distract drivers and cause an accident. Using smartphones instead of in-vehicle technology also creates safety issues. Additionally, in-vehicle technology can significantly increase claims costs for vehicles damaged in an accident.
"While some technologies, such as lane-departure warning, are making vehicles safer, the insurance industry is very concerned about the driver-distraction hazards caused by some of the other technologies," said Chip Lackey, senior director of the insurance practice at J.D. Power. "In addition, technology drives up the repair and replacement costs. A slight bumper scrape that would normally cost a few hundred dollars to repair can catapult a claim into thousands of dollars when a park assist camera or other sensors are damaged."
The 2015 Driver Interactive Vehicle Experience (DrIVE) Report is based on responses from more than 4,200 vehicle owners and lessees after 90 days of ownership. The report was fielded in April through June 2015.

Automakers Spending Billions on Technologies That Many Consumers Don't Use................

Friday, 21 August 2015

Are new-vehicle buyers basing their purchases on in-car technology? The latest data from J.D. Power indicates that many are. According to the summer edition of their 2015 U.S. Automotive Media and Marketing Report, 43% of luxury-brand new-vehicle drivers and 28% of nonluxury-brand new-vehicle drivers cited technology as a main reason behind their purchase.

The Rise of Technology in Cars

The information age has spread technology into almost all industries and facets of life. Technological advancements have allowed cars to become safer, more efficient and longer lasting. They've also allowed manufacturers the freedom to implement plenty of tech features that enhance convenience, safety and entertainment value; and they'll continue to add more as long as consumers are interested.

Who Wants In-Vehicle Technology?

As a consumer in the information age, you can choose to embrace technology or shy away from it. The data from the J.D. Power report signals that those who've embraced it are the ones who are more likely to make car purchases based on in-car technology. Knowing that, you would think that Millennials are the driving force behind the high number of consumers considering technology as part of their new car purchase. Think again.
There's no discernible demographic difference among those factoring technology into vehicle purchases. According to the survey, the following percentages of people chose their vehicles based on its technology features:
  • Age 34 and younger: 31%
  • Ages 35-54: 28%
  • Age 55 and older: 31%
You can't tell me these findings aren't surprising. Furthermore, it doesn't seem to differ amongst gender either: 31% of men and 28% of women cited technology as one of the reasons they bought their new vehicle.

Technology and Safety Make a Great Pair

While new-car buyers use technology for entertainment, many often like their latest car features to be safety-oriented. Another J.D. Power study from the first quarter of 2015 found that four of the top five preferred in-car technologies were safety features. So, while technology can be used to have a good time, you should realize that it can keep you and your passengers safe, too.

How Much Does Technology Factor in Your Car Purchase............

Friday, 14 August 2015

Many used EVs going for less than gas counterparts

Today, you can get the Volt for an average price of just $10,500, which is now only $650 more than the Cruze model.

If it's not on your radar already, one industry trend will be soon as the stats become increasingly hard to ignore. That is, electric vehicles' alarming depreciation rates. According to new data and insight from Black Book, EVs continue to face much heavier depreciation rates than their gas counterparts. In some instances, consumers can shell out up to $20,000 more for a new electric version of a vehicle than they would for the sister gas model.
That said, three years down the road, Black Book pointed out, EVs could easily be priced $900 below their gas counterparts, showing rapid declines in price.
"On several of today's popular EV vehicles, the depreciation curve is very steep, largely driven by lack of consumer demand preferences for fuel-efficient models with current price of gas," said Anil Goyal, vice president of automotive valuation and analytics for Black Book, and a speaker at the upcoming Used Car Week conferences,  "Smaller cars have experienced heavier depreciation over the last 12-18 months, but it's clear that the small mainstream electric vehicles are experiencing even heavier valuation drops."
Black Book took a look at the prices of the new Nissan Leaf versus the Nissan Versa; a Mitsubishi i-MiEV versus the Mitsubishi Lancer; Ford Focus Electric versus the Ford Focus; and a Chevrolet Volt versus Chevrolet Cruze.
The company found the EV premium over a gasoline model for mainstream brands has "pretty much disappeared" for used vehicles from an average premium of $16,600 for new vehicles.
In fact, the company found in a couple of cases, a used electric model now costs less than their used gasoline counterpart or close to it.
Take these models for example:
In 2012, the Leaf SV 4D hatchback was going for $36,380, touting a $20,287 premium over its gasoline counterpart. These days, you can get the same electric vehicle for $7,400, $900 less than the used gasoline model goes for.
Depreciation for the i-MiEV ES 4D Hatchback is even more alarming. The EV model went for $29,125 new in 2012, with a $19,887 premium over the gas model. Now, that same EV model is going for an average of $5,350, which is $3,100 less than what the gasoline model goes for these days.
Black Book also pointed out the Volt 4D Hatchback shows similar trends. Back in 2012, the EV model went for $40,431 MSRP, which was $17,060 more than the Cruze LT 4D sedan. Today, you can get the Volt for an average price of just $10,500, which is now only $650 more than the Cruze model.
This trend is coming up often in industry conversation - from a variety of angles. Though depreciation among EV vehicles may be a large pain point for those shoppers that bought them new, the used models could be a very good sell for the budget-conscious environment-minded shoppers looking for a long-term vehicle.
In a recent blog post from Yahoo Autos, author Steven Lang points out EVs are experiencing a "colossal loss of market value."
And the luxury models aren't immune to the surprising depreciation. According to the blog post, the 2013 Tesla Model S Performance is currently going for $74,000 and is forecasted to lose 28.9 percent of its value by July 2016, ending with a pricetag of $52,600.
EV prices are low, and are expected to get lower - proving a good buy for those customers looking for a long-term vehicle with no plans to trade-in - considering, if residuals continue down the same trajectory, many of these EVs might be looking at a 50-percent or more decline in value over the next couple of years.

Many Used EVS Going fo Less Than Gas Counterparts........................