Friday 27 March 2015

Used Supply and Gas Prices Playing a Major Role in Residuals

As spring gets underway, used supply is expected to rise, pushing pre-owned prices down slightly over the course of this month and April. That's according to the March-April Canada Industry Report from ALG Canada, which predicts used market supply to rise in aggregate, which will serve to push residuals down by 0.01 percent.
That said, the market impact of expanding used supply on specific vehicle segments will range from a decline of 0.4 percent to a slight rise of 0.1 percent, reported Geoff Helby, ALG Canada regional director.
In terms of the effect of supply rates, the premium compact segment will see the largest negative impact with a decline of 0.4 percent, while the premium executive, premium sport and subcompact segments show the largest positive impact of 0.1 percent, according to ALG Canada data.
Helby also pointed out low gas prices, which are still falling, had a negative impact on fuel-efficient segment residuals, while inefficient segments enjoyed a rise in price.
Taking all economic factors into account, residuals are expected to rise by 0.6 percent through March and April, which is slightly more positive than the 0.4 percent increase predicted during the same period of last year.
Helby pointed out this change is in line with seasonal trends.
"With the updated macro-economic outlook assumptions, segments with lower fuel economy are more positive," said Helby. "Wages, home prices and exchange rates lower residuals across all segments. Supply impact is mixed by segment, but slightly negative on average."
Breaking the numbers down, the midsize pickup segment is expected to see prices rise the most, with residuals predicted to bump up by 1 percent.
The microcar segment is expected to see residuals rise considerably over this two-month period, as well, with rates spiking by 0.8 percent, while minivans are also expected to see a larger-than-average increase, with residuals rising by 0.7 percent.
The premium midsize utility, premium compact utility and premium compact segments are all expected to see residuals rise by 0.2 percent, Helby reported.



Used Supply and Gas Prices Playing a Major Role in Residuals....  www.redlineautosales.ca/used-supply-and-gas-prices-playing-a-major-role-in-residuals.htm

Friday 20 March 2015

Consumers Still Misunderstand What Impacts Credit Score

Think of the amount of times you've heard these lines from customers looking to buy a vehicle but they have soft credit histories. "But I've made my rent payments every month. Same with my Verizon contract. Why is my credit still bad?" A recent TransUnion survey showed consumers still are largely confused about what affects their credit score and what is included in their credit report. In fact, nearly half of all consumers falsely identified rental (45 percent) and cell phone (47 percent) payments as those that directly affect their score.
While consumers who frequently review their credit report incorrectly identify some aspects of it, TransUnion discovered consumers who rarely or never review their credit report have an even higher level of confusion.
Among survey respondents who reported checking their report in the last 30 days, half mistakenly believe their full employment history (55 percent) and income level (41 percent) are included in their reports.
"Our survey found that there is significant confusion about what types of payments and other information are included in credit scores and reports," TransUnion senior vice president Ken Chaplin said.
"As credit reports have a significant influence on consumer credit and lending options, it's important to debunk the credit myths so consumers can have a clear understanding of what affects their score," Chaplin continued.
Surprisingly, TransUnion noticed even consumers who characterize their credit as "excellent" or "good" had trouble identifying credit report factors.
Among those who characterized their credit as "excellent," 49 percent mistakenly thought rental payments are included in their report, yet currently they are not regularly reported to credit bureaus in the same way that auto and mortgage payments are reported.
According to the survey findings, there are several noteworthy points of confusion about what affects a credit score and what information is included in credit reports, as follows:
- Pay raises: Nearly half (48 percent) of respondents who've checked their credit report in the last year incorrectly believed an increase in income improves their score.
- Credit inquiries: 40 percent of respondents who've never checked their report are unsure how it affects their score, and 20 percent who checked their report in the last year mistakenly believed checking their report would decrease their score.
- Paying down debts: 61 percent of those who checked their report in the last 30 days erroneously believed paying off debts from late payments automatically increases their score.
- Trended information: 70 percent of those who've checked their report in the last year incorrectly assumed that it reflected recent changes or trends in their finances over time.
To help consumers better understand their credit score and report, TransUnion is helping to debunk the following six myths:
Myth No 1: Your score drops if you check your own credit.
Fact: Viewing your credit report counts only as a "soft inquiry" and doesn't change the score. "Hard inquiries" by a finance company or creditor, though, can slightly lower your credit score.
Myth No. 2: I should close old or inactive accounts to help my credit score.
Fact: This might actually have the reverse effect of lowering your credit score because it can shorten the measured duration of your credit history.
Myth No. 3: Paying off a negative record means it's taken off your credit report.
Fact: Generally, negative records like collections or late payments will remain on a credit reports for up to seven years.
Myth No. 4: Co-signing doesn't mean you're responsible for the account.
Fact: If you open a joint account or co-sign a loan, that borrower will be held legally responsible for the account, meaning activity on the joint account as well is displayed on the credit reports of both account holders' reports.
Myth No. 5: Making on-time rental, utility and cell phone payments helps my credit score.
Fact: While outstanding rental, utility and cell phone debt that has gone to collections can negatively affect scores, generally, on-time payments are not regularly reported to credit bureaus.
Myth No. 6: My credit score reflects recent changes or trends in my payment behavior.
Fact: Historically, credit scores have not incorporated trended credit information, meaning they are a moment-in-time glimpse at consumer risk.
However, TransUnion recently launched CreditVision, a new scoring model that incorporates an expanded view of payment data and up to 30 months of history on each loan amount.
"Credit scores play a significant role in determining credit terms and rates, so we encourage all consumers to take an active role in understanding their credit" Chaplin said.
"An easy way to maintain a vigilant eye on credit is to subscribe to a credit monitoring service like TransUnion's, which can help consumers regularly check their score and get instant alerts about any potential fraud," he went on to say.
For more information about TransUnion's credit monitoring service, visit www.transunion.com/personal-credit/credit-management/credit-monitoring.page.
 





Consumers Still Misunderstand What Impacts Credit Score............ www.redlineautosales.ca/consumers-still-misunderstand-what-impacts-credit-score.htm

Friday 13 March 2015


AR Canada Conference Partners With Make-A-Wish Canada For Premier Event

AR Canada Conference Partners With Make-A-Wish Canada For Premier Event


In order to celebrate the success of the Canadian used-car industry, the Auto Remarketing Canada Conference, presented by CarProof, is throwing a "Celebration of Success" party - bound to end the upcoming event with a bang. And what's one of the best ways to celebrate success? Giving back to the community, of course, and that's just what Auto Remarketing Canada had in mind when it teamed up with Make-A-Wish® Canada for the conference second-night reception.
The Auto Remarketing Canada Conference scheduled for April 20 and April 21 at the Westin Harbour Castle in Toronto, is partnering with the charitable organization well-known for making magical wishes come true for children with life-threating medical conditions, for a live auction, which will benefit Make-A-Wish® Toronto & Central Ontario.
"With success comes responsibility - the responsibility to give back. The automotive industry is one with great ties to the community, and is well-known for its charitable contributions. We are excited to give our attendees the chance to support Make-A-Wish and the children whose lives have been bettered through the non-profit organization," said Bill Zadeits, Auto Remarketing Canada conference chair.
The live auction will take place at the "Celebration of Success" second-night conference reception, scheduled for 5 p.m. on April 21, sponsored by Dealertrack Technologies, Hyundai Motor Finance, Kia Motors Finance, NextGear, SCI Marketview, SiriusXM and TRADER.
Attendees will receive their tickets to the exclusive event upon check-in at the upcoming conference.
Make-A-Wish creates powerful wish experience, improving a child's state of mind, replacing fear with happiness and helping them to feel like a normal kid again.
"We at Auto Remarketing Canada are thrilled to be partnering with Make-A-Wish Canada and are confident we will meet our fund-raising goal of $5,000 with the help of our conference attendees, sponsors and industry partners," said Marilu McQuilkin, director of meetings and events for Cherokee Media Group. "I began my career working in the non-profit sector, and am excited to introduce a way to give back in light of the growing success of the Canadian remarketing industry."
The automotive industry has always been an extremely charitable business, with many dealerships and automakers going to great lengths to support their communities.
Let's continue the tradition and celebrate remarketing success in a way that will help make memories for not only Auto Remarketing Canada conference attendees, but also the lives of children that are more than due for a bit of fun.
And attendees are in for a good time, as well. Our inaugural "Celebration of Success" event will also feature cash giveaways, finger food or heavy hors d'ouevres, and specialty martinis, along with a variety of beer and wine selections.
This event capitalizes on the importance of celebrating milestones as an industry.
Keep breaking records, and you will keep giving Auto Remarketing Canada a much-appreciated chance to keep celebrating an evolving and maturing industry.


AR Canada Conference Partners with Make a Wish Canada for Premier Event........... www.redlineautosales.ca/ar-canada-conference-partners-with-make-a-wish-canada-for-premier-event.htm

Friday 6 March 2015

February's Trade-in Trends

February's Trade-in Trends


Anyone who has read one of Dealertrack Technologies' TradeTracker Used-Vehicle Market Reports in the last few months won't be surprised by what they see, once again, on top of the appraisal charts.
The Ford F-150 remains the top overall most-appraised vehicle in Canada for the month of February, followed once again by the Toyota Corolla, Honda Civic sedan, Mazda Mazda3 and the Dodge Grand Caravan.
The F-150 maintained its three-month trend as the domestic vehicle most appraised by domestic dealers, while it was also the domestic vehicle most looked at by domestic owners looking to trade-in. Perhaps the only surprise of the month was the truck's new spot as February's domestic vehicle most looked at by import owners, a spot that was previously occupied for the last three months by the F-150's crossover little brother, the Ford Escape.
The Escape did, however, maintain its achievement of being the domestic vehicle most appraised by import dealers, continuing to show Ford's dominance, aside from several Japanese offerings, in the Canadian used market.
Speaking of Japan - nearly everything that wasn't domestic on February's TradeTracker report came from manufacturers based on its shores. The Corolla remains the import vehicle most appraised by import dealers while the Mazda3 kept its spot as the import vehicle most appraised by domestic dealers, both a continuation of three-month trends. The Corolla retook its spot as the import vehicle most looked at by import owners, a trend the Toyota RAV 4 holds for the previous three months. In a flip situation, the RAV 4 was the import vehicle most looked at by domestic owners, a spot contended for by the Corolla with the most for the year.
February's TradeTracker brand of the month was Volkswagen, which further reflected the Japanese impact on the Canadian market. The Mazda3 was the most appraised off-make vehicle at VW dealers this past month, followed by the Hyundai Accent and the Subaru Impreza. As far as the vehicles most looked at by trade-in customers at VW dealerships, the list was completely dominated by Mitsubishi - in February, customers looking to trade in their VW were most interested in the Outlander, Lancer and RVR, respectively.



February's Trade-in Trends...................................................................................... www.redlineautosales.ca/february-s-trade-in-trends.htm