Assessment & Analysis of the Current Used Vehicle Market
by Michael Pochan, Lecturer, CEO, Software Engineer and professional educator with Carnegie Mellon credentials.
WHAT IS THE SITUATION?:
1) Auction Sales Volume Dropping as much as 40%:
2) Finding the Cars Customers Want online :
3) Auction Channel is Now migrating Online:
4) Mercedes Benz Credit selling off-lease vehicles directly online
WHAT TO DO ABOUT IT:
Be aware of trend & consider adopting online bidding & auctions.
Mecum Auctions & other auctions are taking on-phone bids also
Top 30% of UC dealers continue to find cars for customers online.
Franchise & Independent Dealers & UV buyers should take a minute & review the implications of the increase in online used vehicles sales.
Dealers and Used Vehicle Marketers Becoming Alarmed by Rising Inventories
The high number of unsold vehicles across the industry retreated slightly, but
78-day supply was the highest number for summer selling season since reached 85 days in 2009.
Half of the total unsold cars and light trucks in May were either General Motors, Ford or FCA
See, Ingest, and act on the stats and content of the Automotive News industry alert.
Current Car Buying Process is in Peril
87% of Americans dislike something about car shopping at dealerships
61% feel they’re taken advantage of while there.
86 % of car shoppers conduct online research before visiting a dealership
Vehicle buyers are increasingly seek to accomplish entire purchase online.
Reality: Consumers have no choice but go to a Dealership.And they don’t like it.
Dealers need to do more to work with buyers who seek to buy on line
Traditional dealer business model could be in peril
See positioning & recommended action-ables from Mike Pochan, Founder of LeaseTek and respected automotive industry leader and analyst
THE CRITICAL SITUATION:
Banks and Financial Institutions seem poised to re-create the lending Meltdown of 2008 via a renewed abuse of Asset Backed Securities (ABSs)
This Distilled Analysis by Mike Pochan, Industry Analyst & Auto Finance Entrepreneur is alarming
Mike proposes a Need for Auto Finance companies and the Industry to ACT with speed and decisiveness.
ACTION-ABLES:WHAT TO DO ABOUT IT:
Keep it simple;
Stop securitizing Sub-prime Credit.
Set aside bigger Loss Reserves.
The mathematics of the securitization process amplifies losses.
Realize that we may be too late.
Click & capture the auto funding stats and the core strategic and operational action-ables in this exclusive analysis and assessment
FOR AUTO SUB PRIME FINANCE COMPANIES AND FUNDERS:
This breakthrough automotive finance application of Blockchain technology may well be a major factor in preventing another sub prime automotive crisis.
It is imperative for the automotive finance community for credit unions to banks and captive finance companies to adopt this system & technology ASAP.
For those attending a forthcoming Digital Asset Conference and drilling down into this release is critical for auto subprime finance management
Here are some of the breakthroughs in AR/VR as a Vehicle Sales Tool:
Why AR/VR is now a must in the Vehicle Sales Process:
Three Reasons-Consumer Adoption; Dealer Utilization; New Headsets:
The Time for this AR/VR Technology in Automotive Marketing is Now
Buyers able to view any make & model via phone & lightweight headset
Gain configuration options, change color & compare cars side by side.
Time Researching Reduced: 17 M cars are sold per year in the U.S.
Buyers spend an average 14 hours researching & shopping for a car.
Improving immersion/engagement for saves shopper time & drive sales.
Find out why & how AR/VR are going merge with AI & Change how vehicles are sold:
The Auto Finance Industry Problem:
The auto industry has long struggled with a lack of transparency and widespread information inaccuracies, from titling all the way through financing, Independent dealers, government agencies, including Departments of Motor Vehicles, insurers, financing companies and individuals.
There has been a lack of a standardized system that provides a reliable means of sharing and authenticating information such as vehicle information numbers (VIN), make, model, title, sales and service history.
Open source Blockchain operating system has been needed to power the consolidation of data on millions of vehicles to fight fraud and streamline auto information sharing
Fusion Foundation, a non-profit organization on a mission to build the ideal financial infrastructure, has been chosen by the Automotive eXchange Platform (AXP) to improve access to accurate consolidated data on millions of vehicles in the $2.8 trillion pre-owned automotive industry.
See, learn, and understand how this Blockchain Breakthrough will transform the entire Used Vehicle Market the next 3 years or less.
Are Automotive Trade and Consumer Magazines, Publications, & Websites Killing Themselves?
Is the Digital Media Carnage coming into niche auto publishing models?
Is there too much media for so few auto industry advertisers?
Are automotive industry trade publications becoming irrelevant?
Is the auto trade publication trade business model unsustainable?
Can auto trade pubs keep accomplishing an unattainable media business?
See the Red in the "How Digital Media Killed Itself' article posted and consider.
The Industry Problem:
3.95 Million New Cars are in Inventory at Dealerships
The Dealer Solution:
Begin Immediate Transition to becoming a Total Transportation Center - No longer just a Dealership Selling & Servicing Cars
Learn What Kills a Sale and Why?
How New Platform from The Appraisal Lane Solves the Customer Vehicle Valuation Problem
The Appraisal Lane Vehicle Appraisal process utilizes Black Book valuation data in conjunction with market insights and deep appraisal knowledge across all makes and models to assess each used vehicle on its own merit and provides consumers with the best possible cash offer.
How Data Science & Human Market Knowledge Combine to make Vehicle Appraisal More Accurate, Fair, & Profitable:
Black Book and The Appraisal Lane share the same fundamentals of combining data science with human touch to most accurately determine a vehicle’s value,” BlackBook values, coupled with The Appraisal Lane’s live cash offers, effectively put the dealership trade-in process right in the palm of a consumer’s hand.
Dealers that offer this experience are poised to improve prospect engagement, increase business, and stand apart from the competition.”
Study this PDF document for just how this breakthrough vehicle appraisal process works
Connected Cars: A Connected Vision -A Car History Reminder & Recap of Where We Are with Connectivity
Here is a Recap of the sections in this Timely Article on the Current State of Connected Cars & Technology
What's happened to transportation in last Century
The Market for Autonomous Vehicles by 2040
Adapting to Change in Transportation
Connected Cars Today
The Involvement of City Transportation Management
New Innovation Creating Options
Click and Invest the time to gain a current briefing and perspective on the current Connected Car History and Vision.
The Source and The Author: Percy Gendreau, CEO/Managing Director, Connected Strategy Advisors
Percy brings 30+ years of experience in manufacturing/operations, management and optimization around the transportation and manufacturing sectors. His efforts help build and scale an OEM/Supplier vehicle launch collaboration platform.
See Robotics Business Review's Listing of the 2019 Predictions from Leaders in the Robotics Industry
Here are the Top Trends in Robotics for 2019:
The robotics industry continues to gear up for 2019 with expectations that it will be even bigger, faster, & more innovative.
You are encouraged to find and read Robotics Business Review in 2019
This is the leading edge publication for Robotics
It canvasses industry leaders across the robotics, automation, & artificial intelligence landscape
Check out Robotics Business Review
The Situation: Fewer U.S. Car Buyers are selecting U.S. Sedans & Opting for SUVs
The Significance: Car Buyers are buying Japanese & Korean made sedans
The Solution: OEMs need massive initiative to educate buyers not sell them with ads, deals, and sales tactics
Find out how & why U.S, Sedans are not selling at the same rate as Japanese & Korean makes
Join this Must SEE & HEAR Free Webinar on Wednesday, December 12th, at 1:00 pm EST
See just how far we’ve traveled on the road to autonomy and to test the following predictions for our autonomous future.
Prediction #1 - Future applications (especially autonomous ground vehicles) will require precise positioning at the cm level
Prediction #2 - One of the few technologies that can provide that precision today is GNSS RTK and PPP
Prediction #3 - This level of precision will be enabled even more with the introduction of new GNSS constellations
You can begin to better understand and be knowledgeable about Autonomous Vehicles by attending this timely Webinar
We All Know & Love Jody–This is a MUST: Jody DeVere Family Woolsey Fire Recovery Fund
Jody DeVere's son, Joseph, and his wife Rosanna lost their home and everything in it in the #WoolseyFire Seminole Springs Mobile Home community in Agoura Hills, CA. Jody's son is 100% disabled. He has an aggressive form of MS and a spinal cord injury and this complicates his care and immediate and long term housing for them and their pets.
Joe is currently at a VA Nursing Care facility one hour away from Rosanna, family and his support system. He receives a much higher level of care living at home with his wife and personal care giving staff.
What You Can do: Help us bring Joe home!
Go to www.gofundme.com/jody-devere-family-fire-recovery-fund and donate today. We all can help meet the goal today.
Every day and every hour, a gas powered delivery vans lumber down the streets of the U.S. commercial and residential areas to deliver packages to an office or home
Operating costs for the logistics company are high; The trucks are noisy, Traffic is impeded, expanded, or encumbered by the addition of a large truck.
The cost, the logistics and process is inefficient, expensive, and not eco-friendly.
The logistics delivery driver drives a large van with packages for a given delivery sector to a staging area within a mile of the area, specific sector, area, or streets for delivery. From there, a CargoBike used to deliver the packages.
To see how all this would work, go to a more complete presentation & details of this innovative solution to Package delivery in U.S. Market
AI Program Finds the Car in Dealer Inventory that the Prospect is Just Thinking about.
Computer vision and machine learning combine to identify that particular vehicle in the dealer's inventory.
An AI program also makes suggestions to prospective customer based on vehicles scanned or researched in prospect's search process
The whole process is done in seconds and the customer is astounded at the results.
This breakthrough application is increasing dealer closure rates at new levels.
The search process combined with AI and Machine Learning is so effective that the program is tempered so as not to overwhelm the customer.
Gain preliminary details and CarStory Contact to learn exactly how the process closes sales.
Breakthrough Idea: Cargo Bikes will deliver packages not trucks
Last Mile Deliveries on & by Cargo Bikes are coming to delivery logistics
Delivery companies will be parking noisy,polluting trucks blocks away.
Cargo bikes delivering packages for last mile from a Mother Truck
Will reduce congestion. pollution, and noise, gridlock & cost
"Last Mile Delivery Strategy" being developed now
Leaders seem to be in Amsterdam, UK, and Europe -
UPS & FedX next to adopt the new delivery model
Cargo bikes & Light Electric Freight Vehicles are being used.
Dive into this linked article to really see what is coming to the Logistics of Package Delivery.
Leading architect & respected city planner says so
Peter Calthorpe of New Urbanism & Berkeley rebuts Techs from S Valley;
Tech companies claim that autonomous vehicles could reduce traffic.
Skeptics, including Calthorpe, argue actually that more gridlock will occur.
More people are still taking solo trips.
See Extensive posting from NYT on Driverless Vehicles
OEMs racing to gain car sharing & driverless technology
Result: Who will control the future of transportation?
You will gain an update on OEM vs Silicon Valley
Note that Uber has $129B valuation; GM About 34B
"Sharing the Road" chart on pg 2 lists OEMs & Partners
Click & Dig into this comprehensive WSJ coverage including the chart
Cold hard facts; The American Society of Civil Engineers says our California roads are in bad shape and the bridges are in danger.
What is a Fact: We as Citizen taxpayers cannot pay a little and get a lot.
If we want good roads, we got to pay for them as we go.
How many jobs funded by Gas tax ? = 6,500 including construction and rail.
What is all of this about?
The most recent issue of Automotive News featured the contributions and accomplishments of 30 automotive executives that are under age 40—as have others in advertising, vehicle remarketing, technology,and business news publications have done of late.
Age is All the Rage – But What Age Really?
With what seems to forthcoming changes and disruptions in automotive retailing, marketing, and the delivering of transportation services, it may be time to recognize and emphasize the entire organization of all these incredible people who are being featured for their accomplishments--Not just a bunch of younger people whom older associates have supported and nurtured within an complex organizational structure for a long time.
To see and gain what this issue is really all about, review and think about the situation with recognizing performance in terms of age.
Why this posting is significant:
Aurora Labs offers an advanced Predictive Maintenance Solution for connected cars & autonomous vehicles.
Employs Machine learning algorithms uniquely addresses 3 stages of vehicle maintenance:
What the Software does:
Platform detects faults in software behavior & predicts downtime events;
Fixes flaws on-the-go in the electronic control unit (ECU) software.
Solution provides cost-effective & swift ECU updates with zero downtime, without requiring dual memory
Aurora Labs’ technology future-proofs software-driven connected cars
Click & See "Advanced Predictive Maintenance Solution for Connected Cars & Autonomous Vehicles"