April 7, 2014
www.usedcarnews.com
ON THE WEB: J.D. Power, DealerRater Announce Alliance
J.D. Power and DealerRater announced an alliance to integrate capabilities. The alliance will integrate DealerRater’s customer ratings and reviews of car dealerships with J.D. Power’s customer satisfaction insights via J.D. Power’s customer experience management platform. Dealers will be able to see and analyze their online reputation as reported by DealerRater side-byside with J.D. Power’s surveybased customer feedback.
Consumers Plan to Drive Cars to ‘Death’
Lengthy vehicle ownership is the new normal, even as the economy improves, according to AutoMD.com’s 2014 Vehicle Mileage Survey, with nearly 80 percent of consumers comfortable with more than 10 years or ‘until it dies’ vehicle lifespan.
Sales Near 3.5 Million
TrueCar estimates there were 3,437,000 vehicles sold in the month. The ratio of new to used is estimated to be 1:2.3 for March.
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AGs Across the Nation Go After Dealers Attorneys general across the country are using actions against dealers to make a big splash. But not all dealers are taking these moves sitting down. The New Mexico Independent Automotive Dealers Association, the New Mexico Automotive Dealers Association, six car dealers, and one motorcycle dealer filed suit againt Gary King, the state’s AG, claiming he exceeded his authority by requiring that sellers must inspect used vehicles for damage and tell customers about any damage before selling them the vehicle. In three separate lawsuits, the dealers are seeking to prevent implementation of this regulation. King said he will vigorously defend a newly approved rule affecting used vehicles that requires detailed inspections and disclosure of damages prior to sale to the public. “This regulation protects the buying public from unscrupulous dealers who would sell them a wrecked vehicle without telling them about the damage, why is that so unreasonable?”
King said in a statement. “The regulation was adopted because of ongoing problems with the practices of some licensed car dealers. We have evidence that some dealers have failed to provide disclosures when the dealer knew of the prior wreck damage; attempted to shift the burden to the customer to conduct an inspection; or failed to conduct a basic inspection that would disclose whether prior wreck damage had occurred.” King claims that many dealers say they conduct a “multi-point inspection” of the car prior to sale, but those inspections do not include inspecting for prior wreck damage or alteration to the car. The new regulation creates a minimum standard for vehicle inspections and requires dealers to disclose facts concerning the vehicle’s condition. The New Mexico IADA declined to comment on its suit at this time. King is running for governor in this year’s election against incumbent Susan Martinez. Continued on page 3
Photo by The Associated Press SUE ME: New Mexico Attorney General Gary King addresses the public.
Rush - Dated Material
Youth, Southerners Spend Tax Refunds on Cars One in four American adults say they plan to save or pay back debt with their tax refund this year. Among the other findings of a new survey by CarMax Inc., almost three in 10 people are not expecting a refund this year. Among those expecting a refund, one in six (17 percent) are likely to use the money to shop for a car. The online survey, conducted by Ipsos Public Affairs on behalf of CarMax, reveals that among those who are expecting a refund, those under the age of 35 (29 percent), parents (26 percent) and residents of the South (22 percent) are particularly likely to put their tax refund toward the purchase of a car this year. When it comes to putting
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their reimbursement toward a large purchase like a home or car, parents are twice as likely (23 percent) to say they have done so than are adults without children in their household (11 percent). Plans for spending this year’s tax refund are similar to how respondents say they have used their refund in the past. Roughly four in 10 have paid debt (44 percent), saved it (40 percent) or used it on everyday expenses, such as groceries, bills or gas (38 percent). One in five say they have used it for travel (23 percent) or home improvements (21 percent), while one in seven (14 percent) have spent their tax refund on something larger, such as a car or a house.
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