Jan. 22, 2019
AIADA's Cody Lusk Discusses Major Happenings in Retail Auto and What’s In-Store for 2019
AIADA President Cody Lusk appeared on today’s edition of CBT News to discuss what’s happening in Washington, D.C., and how it could impact dealers. Cody and CBT News host Jim Fitzpatrick covered the topics of the day, including a brand new Congress, the government shutdown, and what issues AIADA is watching in the new year, specifically the results of the 232 investigation into whether international autos and auto parts constitute a national security threat and should be slapped with 25 percent tariffs. Click here to watch the full daily automotive newscast.
Subaru Hits 10th Straight Year of Record Sales
As light trucks drive U.S. new-vehicle sales, Subaru's growing lineup of fresh crossovers boosted the brand to another yearly sales record for 2018, with volume totaling 680,135 vehicles, an increase of 5 percent. Subaru has plenty of new and freshened crossovers, and that’s the sweet spot for U.S. consumers, Jeff Walters, Subaru of America's senior vice president of sales, told Automotive News. "The segments customers are increasingly more interested in benefit Subaru," he said. "Those are segments we’re good at." Subaru, once a small niche player in the U.S., marked its 11th consecutive year of sales increases in 2018. Its U.S. sales have more than tripled from 216,652 in 2009, and market share has gone from 2.1 percent in 2009 to 3.9 percent in 2018. The achievement is all the more notable considering Subaru’s showrooms lack a pickup in an era when pickup sales are strong. The gains meant Subaru reached its stated 2018 sales goal of 680,000 vehicles. For the full story, including Subaru’s sales target for this year, click here.
The Cars the Government Shutdown Might Delay
As President Trump and Congress feud over the government shutdown, regulatory agencies that test and approve vehicles for sale in the U.S. remain closed. That could impact the launch dates for several much-anticipated vehicles slated for launch in the next several months. According to Motor Trend, before a new (or significantly re-engineered) car can go on sale, it must be certified by the federal government. Under the Clean Air Act it is the responsibility of the Environmental Protection Agency. The National Vehicle and Fuel Emissions Laboratory in Ann Arbor does the verification. But the lab is among the agencies not being funded during the month-long shutdown. On the bright side, many new vehicles are not slated to go on sale until spring, and the majority are fall launches. While automakers are concerned if the shutdown goes too long, in most cases there is still time before panic sets in. Click here to find out where the new vehicle launches stand at nine automotive brands.
12 New Cars with the Worst One-Year Resale Values
There’s an old saying that a new car loses a certain percentage of its original value the moment it’s driven off a dealer’s lot, and that’s largely true. According to Forbes, depreciation is typically one of a new vehicle’s biggest long-term ownership costs, and it behooves a car shopper to compare projected resale/residual values to ensure they’ll get the biggest return down the road at trade-in time. Cars and trucks generally depreciate at slower or quicker rates based on a wide range of factors, including supply and demand, new vehicle pricing, incentive levels, and production volumes. Generally, the more expensive the vehicle, the more important depreciation becomes, simply because there’s more money at stake. One of the worst offenders is the Chrysler 300, which loses 31.7 percent of its original value after one year for an average net loss of $13,351. Click here for the full list of the 12 new cars with the worst one-year resale values.
Dealers Stick with Pens Amid Legal Confusion
Despite federal and state laws allowing electronic signatures for online vehicle transactions in most states, many dealers stick to pen and paper rather than risk legal liability, reports Automotive News . The federal Electronic Signatures in Global and National Commerce Act, or ESIGN, enacted in 2000, permits e-contracting of auto sales. And 47 states and Washington, D.C., have Uniform Electronic Transaction Act laws, giving e-signatures legal authority, said Michael Charapp, a dealer lawyer with Charapp & Weiss in McLean, Va. But in California, where the most vehicles are sold in the U.S., laws are murky for dealers. The California dealers association supported legislation in 2016 and 2017 that would have allowed dealers to offer buyers the option of signing their conditional sales contracts and lease agreements electronically, but both bills stalled in the Legislature, said Brian Maas, president of the California New Car Dealers Association. Meanwhile, some states such as Texas are taking proactive moves to eliminate paper forms. For more on how different states are impacting the way dealers sell cars, click here.
Full Expensing of Fixed Assets Back in Play for Auto Dealers
New insight into tax reform suggests auto dealers may be able to expense 100% of fixed assets. However, specific actions are required on 2018 tax returns in order to do avoid limiting future benefits. Learn more about the expected legislative intents of the new tax laws in Moss Adams' alert.
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97-Year-Old Prince Philip Flips Land Rover, Gets Replacement Freelander Delivered [Car & Driver]
Audi Will Build Q3-Sized EV Crossover, Report Says [Auto Week]
The First 2020 Toyota Supra Just Sold For $2.1 Million, and Everybody is Freaking Out [Jalopnik]
Wall Street Doesn’t Think Much of Ford’s Relationship With Volkswagen [TTAC]
