Wholesale Prices Present Challenges for BHPH Dealers
Manheim chief economist Tom Webb has warned that BHPH dealers are adversely affected by high wholesale prices in the used vehicle market. Record-level prices make finding reliable units that can be financed at an affordable monthly rate a challenge. Webb recommends that BHPH dealers be as cautious with vehicles they stock as they are about scrutinizing potential defaults.
Ford Reacts to MyFordTouch High-Tech Challenges
Since Ford teamed with Microsoft in 2007 to launch its Sync system, the carmaker has rolled it out across its vehicle models. Ford says Sync attracts new customers, maintains loyalty of existing ones, and increases the price its cars bring at auction by about $200. However, many drivers found the newest Sync version called MyFordTouch to be confusing to operate. Following the practice set by technology companies, Ford now also trains drivers how to use MyFord Touch in workshops offered through its dealers. This move by Ford illustrates the challenges carmakers face as they add increasingly complex systems to meet drivers' demand for the same kind of connectivity behind the wheel as they get from their phones and computers.
Prices of Small Cars Expected to Drop by September
After setting record highs this year, the prices of small cars should begin to drop in September and continue to fall through the end of the year. Some factors that will influence the lower prices are a surplus of small cars, larger rebates, low-interest financing, and lower gas prices. Some automakers say they won't cut prices even if Toyota and Honda announce larger incentives.
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Significance of the Data Average wholesale prices fell in June for 2nd month in row $340 less than their peak in April, and $375 less than their all-time peak in April 2010 Some of this price moderation is seasonal, and tight supplies plus steady demand should keep used vehicle prices from dropping dramatically
Chevrolet Plans to Offer Cruze Diesel for 2013 Model Year
Until now, American and Japanese automakers have resisted adding diesel technology to their passenger car lineups. General Motors has now confirmed its plan to add a high-mileage diesel to its Chevrolet Cruze line starting with the 2013 model year. Likely to be an adaptation of the 2.0-liter VCDi direct-injection "oil-burner" now offered in Europe on their version of the Chevy compact, the diesel could deliver as much as 51 miles per gallon, exceeding that of the Cruze ECO and almost matching the Prius.
