|
Join Our List
|
|
| |
Interested in a Sponsorship Opportunity
for the
Fiesta Bowl
For more information
|
| |
"Make Deals and Roll Steel"
AUTO CREDIT TRAINING SOLUTIONS
For More Information
ANNUAL PHYSICAL INVENTORY SEASON
Schedule your Parts Department NOW!
AADA endorsed Service Provider
Upcoming Training Webinars
Critical Issues in Employment Law: FMLA: Managing Intermittent Leave
Sep. 23, 2010
|
Manager's Series: Business Ethics
Sep. 08, 2010 |
Manager's Series: Boomers, X'ers, and Millenials, Oh My!
Oct. 13, 2010
SB1293 - Mandatory ELT
Effective May 31, 2010
Arizona is now a mandatory ELT Title State.
This means that any company/dealer financing vehicles will need to be signed up with an authorized service provider.
For more information on A.R.S. 20-2064
Click Here
For information on contacting a Service Provider
Click Here
RED FLAGS RULE
ENFORCEMENT
Deadline extended again until
December 31, 2010
For more information on Red Flag Rules & Information visit
http://ftc.gov/redflagsrule
To view recent AADA Bulletins
Click Here
Log in to the secure site and access Resources for News & Bulletins.
To view recent eNewsletters
Click Here
"Recent Fraud Alerts"
visit www.aada.com Log in to access Resources and select News & Bulletins
If you have any comments or suggestions regarding this newsletter, please contact
Melinda Simpson at melinda@aada.com
Need Acrobat Reader to view linked documents?
Click Here
For a FREE download from Adobe.
|
|
|
| Greetings!
Welcome to the latest installment of AADA's eNewsletter, containing information, announcements and reminders. |
|
Economic Update | | |
Herding Cats to the Showroom
By Paul Taylor, NADA Chief Economist
An old saying in Economics, used to describe the impact of a low interest rate policy at a time of slow economic activity is: "You can't push a string." It will be difficult to beat the August result of last year, but a good August may still be in store as the end of year bargains start to "kick-start" the marketplace.
That captures the Federal Reserve's dilemma of extremely low interest rate policy, but banks are still reluctant to lend for many purposes. The Federal Reserve System can control short-term interest rates, but does not have any meaningful control over the unwillingness of banks to lend in the current sluggish economic environment.
Car dealers are caught in this dilemma because the subprime borrower is a large portion of borrowers for new and used cars and trucks, currently as much as forty percent of potential customers. The GM acquisition of Americredit was good news for new car dealers and subprime car seekers, and good timing for the New G.M. We need more financial institutions willing to lend to this undeserved portion of the marketplace, given the reliable performance of light vehicles as collateral in an elevated used vehicle market.
Are Better-Off Households Conflicted?
Lower concerns about inflation and less concern about Europe's economic challenges has helped create a more bullish sentiment among independent investors in the U.S. According to the American Association of Individual Investors, bullish sentiment among investors increased to 40 percent at the end of July from a much lower 21 percent according to the organization's survey.
However, consumer confidence declined even as confidence in the financial markets, which tend to price on a forward-looking basis, increased. The Conference Board's Index of Consumer Confidence dropped to an index measure of which declined in June, fell further in July to 50.4 as an index reading compared with 54.3 for June.
NADA would prefer that the index be above an index reading of 60. The "Present Situation Index" decreased from 26.8 to 26.1 and the future expectations index measure fell from 72.1 to 66.6. Based on 5,000 households, the survey size, like NADA quarterly survey data, large enough to be reliable for the time period surveyed, which was through July 21. In the past, incentives could offset dips in the outlook of consumers, but those incentives from the manufacturers are in many cases lower this year than last.
What is perplexing is that in the upscale households in the Consumer Confidence Index, there are also the upbeat investors who measure bullish about the market and who drove the Dow and S&P indexes to year-long high readings on the last day of July. Is there spousal division of labor between investing and consumption decisions, and will this lead to happy marriages down the road? That drama will roll out during the rest of the year.
What The Real Economy is Doing?
The real economy is growing slowly. The official initial reading of Real GDP for the U.S. increased at a 2.4 percent annual rate in the second quarter, according to the Department of Commerce's Bureau of Economic Analysis. That was better than many who expected just 2 percent real growth for the second quarter. The three months felt slow, because the base growth rate of the first quarter was just around 3 percent.
New car sales released July 3rd will likely outperform sales in July 2009. It will be difficult to outperform August sales for 2009, because that was the peak month for Cash for Clunker sales last week. So the economy will continue to grow at a pace above 2.4 percent and should improve when we see the Third Quarter Real GDP reading.
What the Next Three Months Suggests for New Light Vehicle Sales
The measures of showroom traffic in the third quarter for 2009 sales, show a sharp peak in Cash for Clunkers in August 2009 and the sharp drop in "little inventory in September 2009." Therefore, it will be hard to beat the August result of last year, but a good August may still be in store as the end of year bargains start to "kick-start" the marketplace.
September 2010 will be dramatically better than the anemic September of 2009. If the editors are not careful these two months can make for sensational, but inaccurate, headlines in you local paper. Try to educate your local journalists on this point, if you are talking with them about this improving, and never boring, new and used car market. Sustained used car prices, even if they do not increase as they have in almost all of the past 20 months, will help support your new car and used car sales.
To view charts on "The Recovery of Floor Traffic at Dealerships & "What the Real Economy is Doing?" Click Here |
| Current Lienholder ELT Particpants | | |
Are your lenders active for Mandatory ELT participation?
In an effort to best assist dealers with being prepared for Mandatory ELT, we are providing you with a link to the most current ELT lienholder list as of August 16, 2010.
|
| eServices Help Desk | | |
Need assistance with ELT, eTitle, eTRP or eDealer Services?
Please contact AADA's eServices Help Desk at
602-468-0888 x 6 or toll free at 1-800-678-3875 x 6 |
| Dealer Information & Updates | | | Emissions & Compliance Reminder
On the ADEQ web site there is an option to select the history of a vehicles emissions testing. This print out is NOT valid for use when processing title and registration. This is a History Report Only.
If you have additional questions or concerns, please contact Naomi Ramsey (AADA Dealer Services) at 602-468-0888 x201.
Is your dealership interested in becoming a
|
| Title & Registration Information & Updates | | |
ADDITIONAL INFORMATION HAS BEEN ADDED TO MVD's POLICY 10.2.5
"ODOMETER DISCLOSURE REQUIREMENTS"
Summary of Changes: Additional information has been added to the policy regarding documentation required for an odometer reading or code that has been altered for an error made to a title or Manufactures' Certificate of Origin. The additions to the policy are on letter H., I. and J.
Nothing seems to hold your title work up longer than odometer discrepancies. These corrections can take hours of research and days of frustration for you and your customers. Please be sure to read Policy 10.2.5 and double check your odometers before sending in your transaction.
For more information about odometers you can visit National Automobile Dealers Association web site www.nada.org and United States Code Title 49. |
|
Thank you for your continued support.
AADA
Arizona Automobile Dealers Association |
|
|
