October 21, 2013
www.usedcarnews.com
ON THE WEB: Prices Same at New, Used Car Stores
SEE OUR AD INSIDE ON PAGE 8
Dealership Marks 80 Years of Service
With a few exceptions, consumers will find almost the same deals at both new- and used-car dealers. Car search website iSeeCars conducted an analysis of over 20 million used cars for sale by used- and new-car dealers throughout the U.S. Collectively, new-car dealers had slightly better prices, on average, by 0.26 percent.
RouteOne Partners with Finance Express
RouteOne LLC will now allow Finance Express’ pool of dealers to submit applications to all RouteOne lenders with whom they have an existing relationship.
Safety Ads Work Best To Sell Automobiles
Recent ads from major industry brands Chevrolet, Inifiniti, and Mercedes were found most compelling by consumers when they demonstrated the vehicle’s safety features – not speed, technology, or appearance.
Photo Courtesy of Powell Motors Inc. GREAT RIDE: Vince and Pam Powell recently celebrated Powell Motors Inc.’s 80th anniversary. The Portland, Ore., dealership was started by Vince’s father in 1933. This year, the dealership held a special gala to celebrate its success with its clients, vendors, staff and customers. By Jeffrey Bellant
When Vin Powell opened up an Oregon car dealership in 1933, he sold cars for $4 to $8, with a load of produce or wood thrown in to close the deal. His son, Vince Powell Jr., has carried on his father’s legacy – Powell Motors
Inc.’s tradition of sales and service. The dealership’s 80th anniversary featured a celebration that included a special dinner with autothemed decorations, a car show and prizes for the dealership’s clients, staff and longtime customers. A schedule of events was printed on a sheet that
resembled a window sticker and centerpieces included vintage hubcaps and license plates. Prizes included fancy pedal cars and numerous gift certificates, including weekend trips and admission to an area car museum. The event allowed Vince to reflect on how much things have changed over
the past 80 years. Cars on the lot now average between $8,000 and $12,000 and today the dealership uses AutoTrader.com, Craigslist and Cars.com to advertise. Despite the changes, the dealership remains strong, selling a couple dozen units a month. Continued on page 14
Rush - Dated Material
NADA Sees Used Vehicle Prices Slip
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The average price of used cars and light trucks up to eight model years in age fell 2.6 percent in September, marking the highest rate of decline recorded since the 2.9 percent tumble in October 2012, according to the National Automobile Dealers Association Used Car Guide. September ended a three-month period with depreciation averaging an unusually low rate of 1.2 percent. While the drop in September was higher compared to the previous 10 months, it was less severe than the 2.7 percent average rate of depreciation recorded for the past months of September from 2005 to 2012 (excluding the recession years of 2008 and 2009). As a result, NADA’s seasonally-
adjusted used vehicle price index ticked up to 124.8, onetenth of a point higher than August’s figure of 124.7. Along with the time of the year, larger quantities of oneyear-old units entering the used market also applied downward pressure on used prices in September. The number of 2013 model year units sold at auction last month–the majority coming fårom rental companies–grew by more than 24 percent compared to August. Compact car, midsize car and midsize van segments, which have experienced the highest price increases in the 2013 model year supply, fell by a combined average of 2.9 percent — the biggest price decline in September.
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