We hope you had a happy Easter out there in car land, and a joyous Passover, too! As we perused the auto news this week, we found a couple of stories we just couldn’t pass over, ourselves.
First up is a novel car sales model that offers vehicles on consignment, letting owners skip Craigslist and trade-ins. Second is some thrilling news for interstate commuters: no more diesel fumes from semi trucks, courtesy of Elon Musk! We also have news of a downward trend in auto loan originations, but a delightful story of an eight-year-old driving his sister to get a cheeseburger should lighten the mood.
So let’s jump in!
Car Consignment Concept Blurs Line Between Wholesale, Dealer
Many people who want to offload their used vehicles find themselves in a bind. Self-sell services like Craigslist are a hassle, but trade-ins undercut the vehicle’s true market value. The solution? Give owners a way to sell vehicles in a retail setting, aka open a car consignment shop!
CarLotz, a new retail concept based in Richmond, Va., allows vehicle owners to drop off their vehicles and then collect a majority of the proceeds when they sell. The business model helps the lot obtain inventory with low overhead, risk or procurement cost. The concept has been a hit with fleet owners and car dealerships that don’t want certain vehicles in their inventory mix.
You can learn more about the groundbreaking concept here: http://www.autoremarketing.com/wholesale/used-car-consignment-stores-blur-retail-wholesale-lines
Tesla Semi Trucks Could Electrify Shipping Industry
Around two million semi trucks currently roam the U.S. highways, and these commercial shipping trucks guzzle up around 13 percent of the total U.S. fuel supply.
Or, at least they did. Under Elon Musk’s vision of the future, these tractor-trailers would be replaced with all-electric models that greatly reduce the impact of commercial shipping. Not only that, but the enigmatic entrepreneur promises that we could see a prototype as early as this September.
Learn more details about the project and an artists’ rendering here: http://jalopnik.com/elon-musk-says-a-tesla-semi-and-tesla-pickup-are-actual-1794302568
Loan Originations Drop as Self-Regulating Tightens
2016 was a record year for loan originations, so many financial institutions predicted that they would dip from these dizzying highs. Even still, the double digit drop that resulted no doubt stings to financiers.
According to a Wells Fargo Dealer Services report of Q1 2017, auto originations plummeted 29% year-over-year. The bank credits this drop to a combination of a cooling market and stricter underwriting standards that should help reduce delinquencies.
Chase Auto Finance fared slightly better in Q1 2017, beating Wells Fargo’s 2016 high by $0.3 billion for $8 billion total in loans and leases. The company is also taking efforts to reduce charge-offs resulting from delinquencies.
Read the reports here http://www.autofinancenews.net/chase-auto-originates-8-billion-in-first-quarter/, and here: http://www.autofinancenews.net/wells-fargo-posts-double-digit-auto-origination-decline/
8 Year Old Takes Dad’s Van on Joyride After Learning to Drive on Youtube
What do you do when you’re eight years old and your parents are both sound asleep, but you and your four year-old sister have a hankering for some cheeseburgers? In the case of one ambitious youth from East Palestine, Ohio, you lift the keys to your dad’s work van and drive the few blocks down the road to McDonalds.
Authorities got calls Sunday evening of people seeing the child drive by. He apparently navigated a mile stretch through four intersections, across railroad tracks and through several turns, including a left-hand turn. Witnesses report he obeyed traffic laws and drove the speed limit — more than we can say for most of our friends!
The two kids were picked up safe and sound after a family friend reported seeing them at the restaurant. Fortunately, the kids got to finish their burgers before officers arrived.
Read the full story here: http://fox8.com/2017/04/12/8-year-old-boy-drives-4-year-old-sister-to-get-cheeseburger-police/
So how come an eight-year-old can drive better than the whole state of Florida? Have you noticed a dip in auto loans? Can you imagine hearing an electric semi whir by? What do you think the opportunities are in the new auto consignment market?
Rattle off your thoughts in the comments below!