Are Franchised Dealerships in Tesla"s Future

Michigan Republican governor Rick Snyder signed legislation Tuesday officially banning Tesla Motors and any other carmaker from selling directly to car-buyers in the state, but this past weekend,Tesla chief executive officer Elon Musk hinted his position on direct sales is not set in stone.
Last Saturday, Musk sat down with John McElroy the host of program AutoLine Daily.
When McElroy asked Musk if he could really scale up his retail model of company stores in all 50 states and how they would handle maintenance and repairs, Musk made a surprising admittance.
He said, relying exclusively on company stores probably was not enough.
"We may need a hybrid system, with a combination of our own stores and dealer franchises," Musk told McElroy.
By the time of publication, Tesla representatives had not responded to Auto Remarketing's request for further comment.
According to the report, Musk made no mention of how this hybrid system may work and when franchises would become an option.
This discussion may come as a big surprise to those who have been watching the long battle between Tesla and franchised dealers across the country regarding its direct-to-consumer sales model, but it may just be part of the natural evolution of the company.
Now that it has launched a leasing and CPO program, and with new models in the wings, more Tesla's mean more maintenance, repair work and customers - an influx of work that could potentially be solved by launching a string of franchised dealerships.
Auto Remarketing discussed Tesla's new CPO program after the news broke earlier this month.
In an effort to source their new program, the company is giving Tesla Model S owners the option to return the car after three years and recover 45 to 50 percent of its sticker price.
It is still unknown whether Tesla's move into the used market will greatly expand its audience and analysts say there could be a chance the program will potentially cut into new-model customers.
The industry will also have to wait and see how the automaker prices its CPO units as the way the Tesla retail model is currently set up puts them in a place where they can potentially "control" the CPO market for the Model S, including price.
"They could control the roll out of used vehicles, and some could sit in reconditioning. They might cherry-pick others. So when you combine the idea that it is a used market but they are going to take the best of the best, and if they have the majority of them, it would be very easy for them to set a price with no negotiation, in that sense," said Ivan Drury, Edmunds.com senior analyst.
The question is this: Is Tesla going to come up with a condition and mileage matrix to price their CPO models or rather go with pricing every vehicle individually based on market and technician review?



Are Franchised Dealerships in Tesla's Future............................ www.redlineautosales.ca/are-franchised-dealerships-in-tesla-s-future.htm

Mercedes Benz Canada Appoints New Brampton Dealer

TORONTO - Mercedes-Benz Canada is expanding its presence in the Greater Toronto area by appointing a new dealer.
Company executives and the dealership's new management recently turned over the first shovelful of soil of the future Brampton-based facility.
Mercedes-Benz Brampton will be run by Sam Eltes and Jonathan Eltes, dealer principles, as well as Gary Williams, the store's general manager.
"Sam Eltes is a long-time trusted partner of Mercedes-Benz Canada and it is our pleasure to welcome him and his team to the Greater Toronto Area. They bring a great deal of experience and knowledge which will make the start up process smoother and more fluid for the benefit of their new customers," said Tim Reuss, president and chief executive officer of Mercedes-Benz Canada. "This new facility will also provide another convenient point of sales and service in the GTA to effectively serve the needs of existing and future customers in this important growing market."
During the groundbreaking ceremony, the group was also joined by Rob Girouard, general manager of Silver Star Mercedes-Benz, located in Montreal.
Mercedes-Benz Brampton will be the second Mercedes-Benz banner for the Silver Star organization.
Construction of the new facility began in August on a six-acre site located on the southeast corner of Mayfield Road at Highway 410.
And this will be a quick turnaround, as the facility is scheduled to be fully operational by May 2015.
The store is set to be 60,000 square-feet and will house the Mercedes-Benz, AMG and Smart brands.
A service area that will feature 29 work bays will take up 30,000 square-feet.

Mercedes Benz Canada Appoints New Brampton Dealer............ www.redlineautosales.ca/mercedes-benz-canada-appoints-new-brampton-dealer.htm

New No. 1 Reason Women Buy from Dealerships

According to Women-Drivers.com, the trustworthiness of a sales adviser has always been more influential on a female car shopper's purchase decision than the price of a car.  However, a different attribute has become more important than trustworthiness.
The site shared with Auto Remarketing that the most important factor in car-buying for women is now respect.
A recent report from the company, assembled directly from reviews by women car buyers, indicates that respect outranks trust, which is now the second-most important factor.
Below, Women-Drivers.com ranks the five attributes of a salesperson that are most influential on female shoppers' buying decisions:
1. Respectful
2. Trustworthy
3. Likeable
4. Knowledgeable
5. Understanding
The price of the vehicle came in just behind these reasons, in terms of influence.
"Of course this doesn't mean that price is not important; it is a critical component," the company's analysis indicated.
"It means, that having a personal, empathic, real, approachable, open and friendly engagement is paramount first. After a sales adviser has passed the EQ litmus test of a female customer, then, and only then will there be a discussion regarding the price of that vehicle," the company concluded.

New No.1 Reason Women Buy From Dealerships............... www.redlineautosales.ca/new-no--1-reason-women-buy-from-dealerships.htm

Most-Appraised Vehicles: What Shoppers Are Looking For

Year-to-date, the Honda Civic Sedan is the third most appraised vehicle in Canada.

Auto Remarketing Canada
Fall appraisal trends are so far mirroring summer results, with the ever-popular Ford F-150 out in front last month, according to DealerTrack's TradeTracker report.
The Ford F-150 is also No. 1 for year-to-date trends, similar to what was seen in 2013.
The Toyota Corolla was the No. 2 most appraised vehicle in Canada in September.
The top three were rounded out by the Dodge Caravan, taking the place of the Honda Civic sedan, which moved down to fourth place. Year-to-date, though, the Honda Civic easily takes the third spot.
Another Ford model, the Escape, rounded out the top five. Year-to-date, this position has been held by the Dodge Grand Caravan.
These reports are provided monthly to Auto Remarketing Canada and are a result of Dealertrack Technologies' TradeTracker solution, which is an online, trade-in evaluation tool that allows dealerships to create instant, accurate appraisals and gain insight into their used-car business.
The report also breaks down the vehicles by market, as follows:

• The top domestic vehicle appraised by domestic dealers was the F-150.
• The top import vehicle appraised by import dealers was the Corolla.
• The top domestic vehicle appraised by import dealers was the Ford Escape.
• The top import vehicle appraised by domestic dealers was the Mazda3.

The report also narrows down the top vehicles being looked at by trade-in owners.
Within this group, the top domestic vehicle looked at by domestic owners was once again the F-150.
For import owners, the top import vehicle looked at was the Corolla.
And when it comes to domestics, import owners looked at the Escape the most in September.
Lastly, the top import vehicle looked at by domestic owners was the Toyota Rav4. This spot has been consistently held by the Toyota Corolla, who holds the year-to-date trend.
The TradeTracker reports also include a Brand of the Month section, which highlights appraisal trends by an individual brand each month.
The brand highlighted in September was Kia.
The top three vehicles looked at by trade-in customers at Kia dealerships were the Sorento, Soul and Rio, respectively.
The top three off-make vehicles appraised by Ford dealers were the Mazda3, Ford Focus and Dodge Grand Caravan, respectively.

Most Appraised Vehicles: What Shoppers Are Looking For.......... www.redlineautosales.ca/most-appraised-vehicles--what-shoppers-are-looking-for.htm  

Industry Supports Vehicle Emission Regulation Amendments

by: Auto Remarketing Canada

The Canadian Vehicle Manufacturers' Association (CVMA) as well as the Global Automakers of Canada praised the Canadian government's latest move to reduce vehicle greenhouse gases and smog causing emissions.

The Environment Minister Leona Aglukkaq announced Monday expected amendments to Canada's greenhouse gas (GHG) and "Tier 3" emissions regulations for new light duty vehicles, as well as new regulations to further reduce vehicle related smog causing emissions to improve air quality.

Here's a breakdown of the amendments and expanded regulations:

• The new greenhouse gas emissions regulations for light duty trucks for the 2017-2025 model-year vehicles will align with those in the United States over the same period. The proposed new regulations mean vehicles in the 2025 model year will use 50 percent less fuel than those of the 2008 model year vehicles.

"The proposed regulations set a very challenging objective for Canada's vehicle manufacturers," said Mark Nantais, president of the CVMA. "By being part of a robust, aligned standard, new more advanced technologies come to market more quickly with greater choice of products that are more affordable for consumers as manufacturers are to able take advantage of the economies of scale derived from the larger integrated market inherent in the North American automobile industry."

• The new Tier 3 criteria air containment (smog causing) emission standards for new vehicles will work to further reduce those emissions by 80 percent from the existing Tier 2 emissions standards.

"These new regulations will further help reduce the impact of vehicles on regional air quality. In this regard, the on-road light duty vehicle fleet is the only sector to demonstrate continuous year over year reduction in smog-causing emissions since 1985," Naintais said. 

• The government also announced it will be aligning to the more extreme U.S. greenhouse gas emissions regulations for heavy duty vehicles and engines for the 2018 model year and beyond. This move will work to reduce truck emissions by up to 23 percent.  

"Today's announcement offers much-needed regulatory certainty as automakers develop their medium- and long-term product plans," said David Adams, president of Global Automakers, when the news was announced Monday.

"The forthcoming greenhouse gas emissions regulations for light duty vehicles covering the 2017-2025 period, along with the anticipated introduction of draft "Tier 3" amendments to Canada's vehicle emissions and sulfur in gasoline regulations underscores the reality that vehicles and fuels operate as a tightly integrated system," he continued.

Adams pointed out that for several years, Global Automakers has encouraged the Canadian government to put into place regulations that push toward cleaner fuels, such as ultra-low sulfur gasoline.

Lower sulfur fuels are "critical" to the successful introductions of several advanced engine and emissions technologies required to meet the government's 2017-25 GHG emissions regulations, the organization stated.

"The consistent availability of ultra-low sulfur gasoline across Canada is essential to support our members' introduction of cutting-edge emissions reduction and fuel-saving technologies. Working together, cleaner fuels and more efficient engines will deliver improved fuel efficiency and markedly improved air quality for all Canadians," added Adams.

This news comes on the heels of the announcement of the Joint Forward Plan, released by the Canada-United States Regulatory Cooperation Council (RCC) earlier this month.

The plan, the next step in cooperation between the two countries set in motion by the 2011 Joint Action Plan, continues the implementation of groundwork to collaborate and streamline joint efforts involving departments and agencies with responsibilities for agriculture and food, transportation, health and personal care products, workplace chemicals, and the environment.

Industry Supports Vehicle Emission Regulation Amendments...... www.redlineautosales.ca/industry-supports-vehicle-emission-regulation-amendments.htm

Staying Compliant with Ontario's All-In Pricing Regulation

Ontario dealers should, by now, be quite aware of the all-in pricing regulations enforced by the Ontario Motor Vehicle Industry Council. If not, you'll want to be, because OMVIC is cracking down on violators of its consumer protection regulations.

Just this week, OMVIC announced a fine for Platinum Cars Inc. for not abiding to the all-in pricing legislation. The business was fined $21,500 for over 20 ads that did not include administration fees in the pricing of the vehicle but listed it elsewhere in the ad. The dealership's officer/director was also personally fined $3,000 for not upholding the responsibility of managing the ads' compliance requirements and will also be required to retake the OMVIC certification course.

Fortunately for dealers, the regulation is pretty self-explanatory. All-in pricing means exactly what it sounds like - everything that you intend to charge for should be included in the price for all forms of advertised pricing. OMVIC's director of communications, Terry O'Keefe, took the time to speak with Auto Remarketing Canada to help explain the regulation as clearly as possible.

"I think that it's important that dealers remember that an advertised price has to include all fees and charges that they intend to collect," O'Keefe said. "And that includes things like administration fee, it includes charges for products or services that they may have already preinstalled on the vehicle and then therefor intend to charge for, such as a security product or something like nitrogen in the tires."

The easiest way to think about it, according to O'Keefe, is like a drive-away price. With the exception of the harmonized sales tax (HST) and licensing cost, the price advertised should be the price a customer can expect to pay without any surprises.

"It's also important to note that licensing means the actual cost to license or register that vehicle with the Ministry of Transportation Ontario," O'Keefe said. "There can't be a hidden fee in that licensing cost. If the cost to put plates on the car is $90 then that is the cost that can be charged."

It is important to keep in mind, if not included in the advertised price, that the HST and licensing costs should be clear and prominently visible within the ad, which includes anything posted in print, on the Internet, on social media, radio, television, signs, etc. Anywhere a consumer may be exposed to a vehicle listing in any form or fashion is an advertisement.

The all-in pricing regulation was created to provide transparency and trust for consumers. And this becomes especially important in today's digital age, where consumers have access to virtually endless information and are more likely to recognizing sales ploys.

The support for the regulation is two-sided, however, as it works as a competition leveler for dealers, as well. It prevents dealers from advertising what appears to be a lower price than its competitors when it actually intends to charge additional fees that other dealers are already including in their advertised prices.

"That's one of the reasons why the all-in pricing regulations have received support from all the trade industries, as well from the dealer groups," O'Keefe said. "Because they recognized this isn't just good for consumers. If we get full compliance from dealers, it's good for dealers, too. It creates a level playing field."

Staying Compliant with Ontario's All-In Pricing Regulation........... www.redlineautosales.ca/staying-compliant-with-ontario-s-all-in-pricing-regulation.htm 

 

Will Interest Rate Shopping Hurt My Credit Score

If you've ever bought a house or car, your research probably included some interest rate shopping. Even if you have a great credit score, you don't know if the interest rates offered at a dealership or your own bank are really the best you can get until you check out what other lenders are offering. While this is a smart financial move, a lot of people worry about what this will do to their credit score-especially if they are gearing up to make a big purchase. Certain kinds of credit inquiries do impact your score, but there is a built-in allowance for interest rate shopping.
Most credit scores are not affected by multiple inquiries from auto or mortgage lenders within a short period of time-usually 30 days. In these cases, multiple inquiries will be treated as a single inquiry, and this will have little or no impact on your credit score.
However, shopping around for interest rates usually means you're preparing for a big purchase. To best protect your credit, there are a few things to keep in mind:

• Apply for the same type of loan for the same amount. It's fairly evident on a credit report that when five lenders pull your credit for a $300,000 mortgage loan, you're not buying five $300,000 homes.
• Conduct your business as quickly as possible. While the 30-day grace period is no myth, you might want to treat it as a weeklong grace period. Figure out which lenders you want to check out and do all your applications within a few days.
• Do not apply for other forms of credit during this time period. Applying for too many loans or lines of credit at once could make you look like a higher risk to creditors.

Different types of inquiries
Remember, not all inquiries are created equal; only a hard inquiry will impact your credit score. A hard inquiry is when a mortgage lender, landlord, bank, or other creditor accesses your credit report because of a transaction you initiated. The key here is that you initiated this inquiry by asking for a line of credit from a lender.
The other two types of inquiries generally do not have any effect on your score. A soft inquiry is initiated by someone other than you, such as a lender or creditor. Think of the promotional offers you get in the mail. You didn't ask for that pre-approved credit offer, but someone at the company pulled your information.
A personal credit inquiry also does not impact your score-you can pull your credit any time you want. And if you are about to apply for a loan or do some interest rate shopping, you should pull your credit report and score so you have a better idea of what kind of interest rates you'll be offered.

article provided by: Equifax Blog

Will Interest Rate Shopping Hurt My Credit Score...... www.redlineautosales.ca/will-interest-rate-shopping-hurt-my-credit-score.htm