KISS Auto Auction, developers of the first daily, online auction designed specifically for Michigan’s licensed used vehicle dealers, announced the launch tomorrow, after months of design preparation and testing, of KISS Auto Auction.

“We are excited to offer this tremendous tool to Michigan’s used vehicle dealers,” said Larry White, KISS co-founder and automotive industry veteran. “KISS Auto Auction simplifies finding special vehicles for dealers’ customers and provides the best value — for buyers and sellers — in a simple, secure environment.”

KISS Auto Auction will launch with thousands of vehicles in its database from over 200 Michigan-based, licensed dealers. KISS Auto Auction estimates that between 500 and 1000 used automobiles will be bought and sold within the first few weeks of business. A small group of select dealers had initial access to the Website on July 22, when they had the ability to add, delete and modify model information. The official Website launch will take place Thursday, July 24.

KISS Auto Auction announced the site will feature a unique “KISS reverse auction” feature that will allow bidders who haven’t reached the minimum threshold set by the seller to negotiate a counter bid, saving potential sales for buyers and sellers.

“We are pursuing a patent for this feature that we believe is unique to KISS Auto Auction”, stated KISS co-founder and Internet marketing pioneer Jeff Stanislow. “We listened to our beta team of used vehicle dealers and implemented what they recommended. It’s the first of many useful features dealers can expect from KISS.”

Another innovative feature of KISS Auto Auction is the issuance of a carbon credit which helps purchasers reduce their “carbon footprints” and helps mitigate global warming. In addition, each purchase will include a donation to the C.S. Mott Children’s Hospital at the University of Michigan.

The launch will be officially celebrated at the close of the first day’s business at Holiday Chevrolet in Farmington Hills where the festive occasion will be marked with balloons, hot dogs, giveaways and surprises for those present.

The KISS Auto Auction Website is based on the premise to Keep It Simple, Sir! for its clients, and will conduct daily, secure auctions where licensed dealers can buy and sell literally thousands of used vehicles of all makes and models. Please see http://www.KISSAutoAuction.com for more details.

What’s the hardest thing to do in these days of stiffer competition, and a very mobile, selective, and dispersed customer base?

Making sure they stay loyal to you, of course!

OK - so what ideas have you got to do this? How can you ensure that when your clients think ‘new cars’ or when their buddies think the same, it’s your name they think of?

Well, try this for size - help them fix their credit files, and keep them fixed…
Look, if you have to turn down a customer as they are desperate to buy your cars, they have the deposit, but they have a lousy credit score, and can not get an auto loan, if you could help them repair their credit score, get them the auto loan, you get a sale, and you get a customer for life! Don’t you think that would give you just a little edge over your competitors, and put your repeat business solidly ‘in the bag’?

Now, you may not be aware of this, but in many cases, your client’s credit file contains so much rubbish and even incorrect information, that with a bit of work, they could actually repair their credit file information themselves, but most wouldn’t know either where to start, or would not think they even could do this themselves very successfully.
Just to be able to contact your entire client base, and offer a new service for them, even though you must make a charge for it to at least cover your time, should make the majority of them sit up and think that - hey - this company actually thinks about my well being, so my next auto loan for my replacement car will be with you!

Now, before you dash off and leap into this, you should actually bear this in mind.

There is quite a bit of bad press on credit repair companies at the moment, and you may be quite justified in thinking that there is enough dirt written about a few rogue auto dealers without also taking on the dirt surrounding credit repair companies and their operations.

Have a look at some of the negative things being said about credit repair companies, and the arguments in their favour. Then think again about my suggestion that you offer this service to your clients yourself.

It is rather unusual, that a US Federal Department has taken the time to warn people off using such credit repair companies, quoting that ‘there is nothing that these credit repair companies can do that the individual can not do for themselves…’

So, are these new breed of companies all just scams, like the Feds tell us they are, or are they actually playing a very worthwhile role in society…

Let’s just take a look for a minute at what these credit repair companies purport to set out to do for your clients.

By repairing your clients credit files, removing irrelevant, or in many cases, incorrect, information from their credit file, their chances of getting more credit such as an auto loan, or indeed, the rate they pay for their auto loan in terms of inflated interest charges, can be greatly altered by making sure that only relevant, or correct and up to date information is stored there.

This can actually save them thousands of dollars, not to mention the heartache of getting turned down for credit. These sorts of issues have to be resolved quickly, or their whole life and lifestyle can be blighted.

But why is there so much negative press against these credit repair companies, and especially from US Government departments?

And why this great crusade to inform everybody that there is nothing that credit repair companies can do that your clients can not do themselves?

Whatever service industry you like to chose, there are rogues in every case. You only have to look at your industry, the motor industry, to see examples of people being ripped off left right and center. But again, in this internet-enlightened age, you can get any information that you like on how to change the oil in your car, or even to take the engine out of your car. Does your average client want to learn a new trade, like getting under their car and draining the sump oil, or struggle to take the engine out of their car?

Heck, no - they would call in an expert of course. And to avoid being ‘ripped off’ they would make sure that the organisation that they called was either personally recommended, or had proven credentials and a proven track record.

Well, what’s the difference with getting your clients credit files repaired? They may know how to do it, like taking out of their car engine, but with such an important outcome at stake, why do it themselves?

Now, over the last few months I have been conducting a survey on US-based credit repair companies, and a number of them operate a ‘branding’ facility where your company become an agent for the best ones, and you simply follow the easy steps in their credit repair systems, and help all of your clients to a better credit report where possible.
It’s a total ‘Win - Win’ scenario.

You charge your clients sufficient to cover all of your extra time and costs of being a credit repair ‘agent‘, your client gets a better credit file, can afford to buy your cars, get granted auto loans at reasonable rates, and tells all of his friends what a wonderful service you offer to your clients.
Believe me; this credit crunch is going to get worse before it starts to get back to normal.
Make sure you are one of the survivors by following the advice in this article, and help get your clients to repair their credit and start spending on your auto loans again…

Geoff Morris is an Internet Entrepreneur who quit his corporate job many years ago, and is no stranger to taking on institutions to protect the integrity of his public credit files. Take a peek at some of his real life solutions on actual credit repair facilities at http://www.questionmycredit.com/

According to a new nationwide survey from Zag (www.zag.com), consumers may be tossing in the towel needlessly. Conducted for Zag by Chicago market researcher Synovate, the survey reveals that a hefty majority of consumers believe car dealerships are entitled to more profit than they’re now receiving.

When Zag asked 1,000 consumers what they thought a fair profit would be for the sale of a $40,000 car – with all marketing and overhead costs considered – 72 percent were willing to give dealers more money than the dealers were actually netting. According to industry data, dealerships average less than $1,000 in profit per new car sold.

The largest group of respondents – 21 percent – was willing to part with $2,000, while 18 percent upped that to $2,500 and 17 percent were prepared to go higher than $2,500. Another 17 percent put the figure at $1,000; 16 percent pegged it at $1,500. Just 11 percent of respondents said $500.

Zag operates a robust auto shopping, research, and pricing technology platform that connects consumers with a select nationwide network of pre-qualified dealers who have agreed to provide no-hassle, upfront pricing that is guaranteed in writing.

“The survey results make a stunning statement about consumer expectations, even given the informational advantage that the Internet provides to car shoppers today,” said Scott Painter, Zag founder and CEO. “Ironically, salespeople are haggling to maintain margins below what consumers would grant in the first place.

“This confirms that a transparent pricing system would actually give dealers more profit per sale than the current haggle approach – and consumers would be much happier for it,” Painter said. “Dealers could practically work on tips and make more money. Consumers fully appreciate the need for dealers to make a profit, as long as they know they’re getting a fair deal. A system based on upfront prices works to everyone’s advantage.”

Behind the Sticker Shock

A closer look at the data reveals some surprises:

• The less you make, the more you expect dealers to make. The largest percentage (20 percent) of the lowest income group – those who earn less than $25,000 – chose “more than $2,500,” although nearly the same amount (18 percent) chose “$500.”
• Singles vote for higher dealer profits. Non-married respondents were more willing to say dealers should make more money: 22 percent said they should earn $2,000 per sale, and 21 percent chose “more than $2,500.” Meanwhile, 21 percent of married respondents chose $1,000, and just 15 percent chose the highest category.
• Age before generosity? The oldest age group favored a lower amount as fair compensation – 21 percent of those 65+ said $1,000, while 19 percent said $2,000 and 18 percent said just $500. Respondents ages 25 to 34 are the most generous, where dealers are concerned. Twenty-four percent said fair compensation on the sale of a $40,000 car would be “more than $2,500.” Just 5 percent of that group chose the lowest category ($500).
• Hard dealing in Dixie. Respondents in the South favored less compensation – 24 percent said $1,000 would be fair. The next most popular answer among this group was $2,000, chosen by 19 percent of those in the South. Those in the West were most likely to say dealers should earn more than $2,500 – 21 percent chose this response. But slightly more respondents in the West (22 percent) chose $2,000 as fair compensation.
• No gender divide, but a racial split. Where pricing and dealer compensation is concerned, there were no major differences between genders, at any price level. Non-whites were nearly twice as likely as whites to say dealers should make more than $2,500 (29 percent versus 15 percent, respectively).
• Where education matters … On the upper end of the dealer compensation scale, education was something of a factor. The greater the respondent’s educational level, the less likely the dealer would walk away with $2,500 – or more (19 percent of high school grads, 17 percent of college grads and 13 percent of those with post-graduate schooling).
• … And where it does not. The sweet spot – that figure where opinions don’t differ significantly, regardless of education – is the $2,000 level. Post-grads were more likely to land at the $1,000 level (23 percent, against 17.5 percent for high school grads and 16.5 percent for college grads).
• The jobless offer more. Similarly, on the basis of employment status, the sweet spot is $2,000 – although some variation exists among the demographic groups: 23 percent of both those employed full-time and the self-employed, 27 percent of those employed part-time, and 20 percent retired. The lone exception is the unemployed; the largest number of that group – 23 percent – pegged dealer compensation at $2,500.

The Zag/Synovate survey has a margin of error of +/- 3 percent. For a full copy of the survey results and a graphic presentation of top-line data, email info@edgecommunicationsinc.com.

About Zag

Zag (www.zag.com) has created a better way to buy a car. Zag operates a robust auto shopping, research and pricing technology platform that saves buyers money by concentrating group buying power, while providing a better car buying experience by connecting buyers with select dealers that provide upfront discounted pricing and a no-hassle delivery process. Zag provides its platform on a private-label basis to affinity buying groups, such as USAA, 14 AAA clubs, Parenting.com, Overstock.com and Capital One Auto Finance, for – www.capitaloneautobuying.com. These groups give Zag a combined total audience of more than 60 million members/consumers. Zag is fully operational for 65 percent of U.S. households and serves more than 93 percent of in-market car buyers. Zag’s investors include Anthem Venture Partners, Capital One Auto Finance, GRP Partners, Arcturus Capital, Callaway Cars and the Skoll Fund. The company’s approach to car buying and selling is garnering awards – Entretech gave Zag its 2008 Entrepreneurship Award for emerging companies, InfoWorld designated Zag’s platform as one of the 100 most innovative corporate IT solutions for 2006, and Entrepreneur Magazine named Zag in its 2006 “Hot 100″ list of the fastest-growing companies. Zag is based in Santa Monica, Calif.

Spiraling gasoline prices not only are hammering vehicle sales, but also are threatening automobile dealers’ viability.

While everyone knows that gasoline prices are affecting the value of larger used cars and light trucks on dealership lots, no one knows where this is headed on a daily basis. With a new barrel price for oil each day, dealers have been unable to adjust vehicle values fast enough to match the market.

Chicago-based vAuto has introduced new technology that uses a live market view to track and report vehicle valuations, supply and demand in real time. For example, on July 1, when gasoline prices hit a new high of $140.97 per barrel, at 8:00 a.m. in Chicago, the market price and days supply of a 2006-model Cadillac SRX sport utility equipped with a 3.6-liter engine were $22,375 and 123 days, respectively. By noon, the price had dropped to $21,735 and the days supply had jumped to 154. By 9:00 p.m. the market value had fallen even further to $21,075 and the days supply had climbed to 179.

“With the ability to track this data in real time, vAuto clients are able to avoid getting caught with vehicles whose values no longer reflect the current market,” noted vAuto Founder and Chairman, Dale Pollak.

Joe Gilsdorf, a vAuto customer and the owner of Henry Chevrolet in Henry, Ill., saw retail prices fall $1,300 in his market in one day using vAuto’s technology. With this knowledge, he took vehicles back to auction that he had purchased just the day before.

“It was like having insider information,” Gilsdorf said. “The dealers that bought the vehicles that I was reselling were working with wholesale values from previous days that had not yet adjusted to what I was seeing in the retail market. They didn’t realize that in the past 24 hours the average retail market price had dropped $1,300. I truly felt like I had an unfair advantage, but it is all about survival.”

Keith Jezek, vAuto’s president and CEO noted that the benefits of his company’s technology are truly amazing.

“We can sit in front of a screen and watch the valuation, supply and demand of used vehicles fluctuate minute-by-minute,” Jezek explained. “This technology is a revolutionary breakthrough for dealers trying to keep pace with a retail market that is now as volatile as the New York Stock Exchange.“

With hundreds of inquiries per week, vAuto has become the industry’s fastest-growing supplier of market information for used-car dealers. In the last month, vAuto eclipsed the 1,100 dealership rooftop mark, making it the clear industry leader.

Jezek said, “We’re talking about technology the likes of which dealers have never before had available. It tells a dealer what to stock, how much to pay and how to price long before the competition is able to recognize and react to an emerging trend.”

The nation’s six highest-volume franchised dealerships by brand now use vAuto’s stocking, appraisal and pricing systems, including Chevrolet, Ford, Honda, Nissan, Lincoln Mercury and Toyota. Virtually every imported and domestic vehicle brand is represented on the company’s customer list.

Headquartered in the Chicago suburb of Oak Brook, vAuto maintains a research-and-development center in Austin, Texas. Triple-digit increases in its customer base have the company searching for additional technical- and sales-support professionals in both Chicago and Austin.

Further information about the company is available on the Internet at www.vauto.com.

With sales of new vehicles hitting the ropes over a combination punch of rising gas prices, sagging home values and a weakening economy, it’s no surprise that automakers are piling on the incentives to help move the metal. These generally take the form of cash rebates, cut-rate financing deals or subsidized leases, and are averaging around $2,500 per model, according to data compiled by Edmunds.com.

Automakers also get creative from time to time, introducing oddball incentives that may range from free iPods, computers or gift certificates to, in the case of the 2009 Volkswagen Routan minivan, $1,500 deposited in a specially created college savings account for those placing pre-orders before August 31.

Then there’s Chrysler Corporation’s highly touted “Let’s Refuel America” program that essentially freezes the price of a gallon of gas for its customers at $2.99 a gallon for three years. The promotion, which runs (as of this writing) through July 7, applies to most purchased or leased Chrysler, Dodge and Jeep vehicles and is good for a maximum of 12,000 miles driven per year, calculated according to a model’s fuel economy rating. Here, a customer uses a specially issued gas card at an eligible gas station that, in turn, charges his or her credit $2.99 per gallon for the transaction.
But things can get complex when buyers are offered a choice of incentives. This leaves smart shoppers no choice but to do a little detective work to determine which affords the best deal.

Let’s, for example, compare current (again, as of this writing) incentives offered on the Jeep Grand Cherokee SUV. Specifically, we’ll look at the popular Limited model fitted with four-wheel-drive and the optional 5.7-liter Hemi V8 engine.

First let’s see how much choosing Chrysler’s discounted fuel program will save buyers on a model the Environmental Protection Agency rates as obtaining 13 mpg in the city and 18 mpg on the highway.

According to the Department of Energy, the national average for a gallon of gas was $3.94 on June 1. The EPA’s fuel-cost calculator (at fueleconomy.gov) estimates that, at that price, it will cost $3,152 to run the SUV for 12,000 miles. At the locked-in $2.99/gallon price this annual outlay drops to $2,392, which amounts to a $760 yearly savings and a total of $2,280 over the 36-month incentive period. Jeep is throwing in an extra $1,000 cash rebate to further sweeten the deal, bringing the total value to $3,280.

However, based on recent history, it’s reasonable to assume petroleum prices could go even higher (according to DOE records, we were complaining that a gallon of gas cost an average $2.23 three years ago). What if fuel averages $5.00 per gallon over the next three years? In that case, the total potential savings (including the cash rebate) leaps to $5,824.

By comparison, Jeep offers a $3,500 customer cash rebate on the same model. If gas prices remain steady, taking the money up front becomes a slightly better deal by $220; if they continue to rise, the cheap-gas program looks a lot better.
What about financing deals? Chrysler Credit offers zero percent financing on a 36-month loan. We’ll assume a nicely outfitted Grand Cherokee Limited would cost around $40,000 out the door, with the buyer financing 75 percent of that amount. Bank Rate Monitor (bankrate.com) pegs the national average rate for a 36-month car loan at 6.79 percent, which would mean $3,243 in interest saved over the three-year financing period, according to the site’s loan-cost calculator, by taking advantage of the zero-interest promotion.

Alternatively, the automaker offers 3.9 percent financing on a 60-month loan that otherwise goes for a national average of 6.77 percent. We calculate going this route will save $3,068 in interest, and have the added bonus of carrying a smaller monthly car payment, albeit for a longer term ($551 versus $833 for the three-year loan).
Of course such figures will vary wildly based on the cost of a given vehicle and its fuel economy, and are subject to a variety of other factors. For starters, Chrysler’s price-freeze plan automatically favors vehicles that get the worst fuel economy, so choosing a more-economical model will reduce the subsidy’s value. Plus, if a buyer drives less than the 12,000 annual mileage threshold during a given 12-month period, a part of the incentive becomes lost altogether.

What’s more, some buyers may not qualify for a cut-rate financing program, while others may need to take a cash rebate to bolster their down payment in order to help qualify for a loan. And leasing rather than buying a vehicle, or paying cash, automatically eliminates a discounted financing option.

Still this is yet another example of why it always behooves car shoppers to do their homework, run the numbers and enter a dealer’s showroom with all pertinent information at hand to ensure they’ll get an unbeatable deal on the new vehicle that best meets their needs.

© CTW Features