Ford Motor Co. has dusted off some old tricks in order to help boost sales by way of old-school stair-step incentives. So far the ploy seems to be working. Ford was able to grow sales by 6% in April, which was much better than the 3.7% loss the brand recorded in March. New product like the Mustang, Edge and F-150 certainly help, but the allure of added profits undoubtedly pushed dealers harder as well.
After finishing the month up by 2.3% in March, wholesale prices for used vehicles up to eight years have fallen by 1.3% through the first three weeks in April. So far, April’s loss is a slight improvement over the 1.5% decline averaged for the month over the past 10 years (excluding 2011’s rise in prices caused by the Japanese tsunami).
At the 2015 NADA & J.D. Power Automotive Forum held before the New York International Auto Show, Investment mogul Warren Buffett―who seems to own a piece of everything― answered several questions before a packed hotel ballroom.
According to the business mogul, “[Automobile Dealerships] can be a good and very profitable business.” Buffett went on to suggest that over the course of the next few years there will be several more acquisitions by his company Berkshire Hathaway, but there are no plans to expand outside of the U.S. anytime soon.
After increasing by 0.8% on a prior month basis in February, wholesale prices for used vehicles up to eight years in age grew by 1.9% through the first half of March. This month’s preliminary results are right in line directionally with NADA’s forecast, although slightly higher than originally anticipated. The month’s sharp increase can be attributed toward pent-up demand stemming from February’s tepid weather-afflicted performance.
Ford Motor Company officially launched the new aluminum bodied 2015 F-150 late last year and sales have been strong. That said, we’re not just talking about overall sales volume but, actual transaction prices. According to J.D. Power data, roughly 65 percent of new 2015 4WD Crew Cab Ford F-150 3.5L EcoBoost-equipped models sold have carried transaction prices above $56,000 since January this year (J.D. Power data does not include cash incentives).
Consumer Reports recently released its 10 Top Picks of 2015, and while the Tesla Model S won the overall best car award for the second consecutive year, some of the other winners might really surprise you. After years of mediocre product offerings, depressed sales and recall woes, American automaker General Motors saw two of its cars mixing it up with the best of the best.
Wholesale prices for used vehicles up to eight years in age remain essentially unchanged through the first half of February with average prices increasing by only 0.2%. This month’s sluggish preliminary results can certainly be attributed to brutal winter weather and frigid temperatures throughout most of the country, especially parts of the northeast―like Boston.
According to AutoTrader.com, a nicely equipped 2014 CTS can be purchased for as much as $17,000 off of MSRP. A 2014 ATS can be had for as much as $13,000 off, assuming the purchaser qualifies for all available incentives currently offered. The two biggest problems Cadillac faces are that the CTS and ATS are overpriced and overproduced. While they’re great driving cars, higher MSRP’s have kept potential buyers out of showrooms.
Leasing a vehicle is great. One of the best parts about it is you get to make payments towards the use of a new car, truck or SUV, but don’t have to deal with any of the headaches of selling or trading it in when the time comes for a new car. However, it might not make sense to turn in your lease when your contract is up; you could potentially be walking away from thousands of dollars in equity.
After increasing by 0.3% on a prior month basis in December, wholesale prices for used vehicles up to eight years in age remain unchanged through the first half of January. This month’s preliminary results are right in line with NADA’s forecast and also what’s typically recorded during January. Looking back to the same period from 2012 through 2014, previous price movement fell within a range of -0.4% to 0.2%.