This week’s roundup contains some great information for used car dealers and those in the auto remarketing industry. It also contains some pretty advantageous information if you are in the market for an SUV that costs as much as two houses.
First off, we have some great commentary from industry leaders in auto financing. Then, we have the results of KBB’s lowest Cost-to-Own awards, which handed accolades to Subaru and Acura. After that, some great advice on how to reduce employee turnover, one of the biggest performance saps in the used auto industry.
Finally, we have a Mercedes-Maybach in SUV form. The new MM G 650 Landaulet is bestowed with quilted leather lounge seats, a soft drop-top and even leather-wrapped fold-out trays. So start practicing telling your kids that their college fund “somehow went missing” as you dig into this week’s best stories.
Auto Finance Leaders Tout Growth of Direct Online Auto Sales
Speaking at the Vehicle Finance Conference a few weeks back, heads of Chase Bank, Ally Financial, Ford Motor Credit and other auto finance institutions had some interesting comments about the direction of the industry. They said that the enormous volume of upcoming off-lease units — some 3 million strong — will pose a welcome challenge to the industry.
In response, major cosigners and financiers are turning to direct online auto sales platforms. Hertz, for instance, will start using Shift’s online vehicle sales platform to offload its fleet, and Ally Financial will start using Carvana for similar purposes.
This high-growth industry will create a boon for companies like MyDealerOnline, which connect dealers and consumers directly to online auto remarketing sales channels.
Take a look at the executives’ comments here: http://www.autoremarketing.com/financial-services/what-consignors-value-most-when-remarketing-lease-units
KBB Says Subaru, Acura Best Brands for 5 Yr Cost-to-Own
The results of Kelley Blue Book’s Annual 5 Year Cost-to-Own Awards are out, and they name Subaru as the best brand for consumers’ bucks in terms of depreciation, fuel efficiency, insurance, and maintenance costs. Acura took second place.
Category winners included the Subaru Crosstrek as the best compact SUV, the Honda Accord as the best mid-sized sedan, and the Chevy Colorado Extended Cab as the best pickup.
Read the full results and all the other category winners here: https://www.kbb.com/new-cars/5-year-cost-to-own-awards/
Reduce Dealer Employee Turnover With More Work, Less Pay
Employee turnover is at 40 percent for the average dealership, causing major employment problems and resulting performance issues. Training new employees and cultivating a consistent sales process becomes quite difficult under these conditions.
To combat the problem, innovative dealer owners are turning to an unconventional strategy: give workers more responsibility and pay them less. More specifically, empower sales reps by letting them take on more autonomy during the sales process. This approach gives them control over their own results and helps them upskill. At the same time, reduce their reliance on commissions by offering a salary. Even if the salary is less than what they could be earning, the stability makes the position less risky for young professionals.
Learn more about how to keep employees happy here: http://www.autonews.com/article/20170213/RETAIL07/302139956/strategies-for-reducing-employee-turnover
Offroad in Insane Luxury With the Mercedes-Maybach G 650
Clearly built for diplomats — and those who want to terrify traffic with dictator-like levels of opulence — the newly announced Mercedes-Maybach G 350 Landaulet is a truly unique vehicle. A V12 AMG engine runs the 17.5 ft long MM, cranking out 630 hp and 738 lb-ft of torque. That long length allows for two back seats that look like quilted leather-clad resort chairs. Only 99 models will be built.
The SUV is also definitely meant for people who want to be chauffeured; a privacy divider sits in front of two LCD entertainment screens, and the rear leather soft top electronically lowers for you to wave at your adoring populace. Armored security personnel optional.
Take a closer look here: http://truckyeah.jalopnik.com/the-mercedes-maybach-g-650-landaulet-is-the-height-of-v-1792297426
So are you going to eat ramen noodles for the next 10 years to save up for a G 650? Do you think you can convince employees to stick around by empowering them? Will the KBB study help you sell more Subarus? And are you excited about the growth of online auto sales platforms? Fill us in on your deepest, inner-most thoughts below!