Autoblog

Chrysler suspends incentives, penalties for dealer customer service

Chris Tutor — Wed, 22 Aug 2012 08:45:00 EST

Filed under: Car Buying, Marketing/Advertising, Chrysler, Dodge, Jeep, Ram

Last December, J.D. Power's Sales Satisfaction Index Study ranked Chrysler's Jeep, Ram and Dodge brands at the bottom of the list. The Chrysler brand itself fared somewhat better with a ranking of nine out of 19 brands.

With those scores in mind, Chrysler execs deduced that their customer satisfaction incentive program for dealers just wasn't working. Under that program, the largest dealers could earn as much as $200,000 for meeting customer service, facilities and management goals. Per quarter. So the program is being scrapped in favor of a system more like that used by Toyota. Instead of rewards and penalties, Chrysler dealers will now be motivated by simple profits.

"If you perform at a higher level based on customer experience, your percentage of loyalty will grow, your percentage of service retention will grow," Mark Engelsdorfer, Chrysler's director of market representation tells Automotive News. "With that will come a pretty substantial growth in your operating profit."

Chrysler's new program was drawn up with help from its dealer network and seems to be more amenable to dealers than the previous system. The new initiative "is really emulating a partnership," Mike Maroone, COO of AutoNation Inc. said in the same article. "Their willingness to walk away from the carrot and stick is really the right way to go."

Chrysler suspends incentives, penalties for dealer customer service originally appeared on Autoblog on Wed, 22 Aug 2012 08:45:00 EST. Please see our terms for use of feeds.

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eBay Motors dropping prices hourly on certain cars until they sell

John Neff — Thu, 28 Jun 2012 16:31:00 EST

Filed under: Car Buying, Auctions, Chevrolet, Dodge, Ford, Jeep, Nissan, Toyota

eBay Motors and AutoNation are quickly establishing a reputation for finding new ways to sell cars online. They teamed up for the first time back in March when they tried selling vehicles for half price on the popular auction site. This weekend they're back with another unique promotion that will see the price for certain vehicles drop every hour until they're sold.

The reverse auctions began at 12:00 PM EST today and will run through 8:00 PM EST on Monday, July 2. Each day about 10 vehicles will be posted for sale with an initial Buy it Now price that matches their MSRP. Every hour their prices will drop according to a list of prices that accompanies each auction. A 2012 Nissan Rogue that kicks off the promotion, for instance, is dropping by $500 per hour. The good news is that there is no limit to how far prices can drop, nor a reserve they need to stay above. The only limiting factor is the other person out there who's willing to pay $500 more than you.

As for what sort of vehicles will be sold via this promotion, the list includes vehicles from Chevy, Dodge, Ford, Jeep, Nissan and Toyota, and includes popular models like the Camaro, Mustang, F-150, Fusion, Challenger, Charger, Wrangler, Prius C, Camry and more. And in case you're worried about getting the Mechanic's Special, all of the 50-some vehicles being sold this way are still under factory warranty.

Get your wallets ready and head on over to the special landing page to watch the prices drop.

Continue reading eBay Motors dropping prices hourly on certain cars until they sell

eBay Motors dropping prices hourly on certain cars until they sell originally appeared on Autoblog on Thu, 28 Jun 2012 16:31:00 EST. Please see our terms for use of feeds.

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AutoNation introduces Hyundai-like payment assurance incentive

Damon Lavrinc — Thu, 19 Mar 2009 16:02:00 EST

Filed under: Car Buying

AutoNation, which operates over 300 dealerships in the U.S., has begun offering a new incentive program that covers up to six months of car payments on a new or used vehicle if the buyer loses his or her job. The "Payment Protection" program, which is similar to the Hyundai Assurance program that the Korean automaker began offering earlier this year, tackles one of the major issues causing the recent slump in sales: consumer confidence. The program is currently available at 33 South Florida dealerships, will provide payments to cover the loan during the first year of purchase and comes at no additional cost to consumers. However, there is an additional 90-day waiting period and, that's assuming buyers are able to secure a car loan in the first place.

[Source: Reuters | Photo: Justin Sullivan/Getty]

AutoNation introduces Hyundai-like payment assurance incentive originally appeared on Autoblog on Thu, 19 Mar 2009 16:02:00 EST. Please see our terms for use of feeds.

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Close the sale online with AutoNation

Dan Roth — Thu, 01 Nov 2007 07:06:00 EST

Filed under: Car Buying, Etc., Lifestyle

Every automaker has its web presence set up where you can sort of shop for a car. It gets a little difficult when you actually go to get a price quote - you'll get directed to a selection of local dealers, some more willing to deal than others - it's enough to make you wish for a "Buy It Now" button. AutoNation's testing pretty much that very idea at an Atlanta location. The experience doesn't differ much from what's already available at automotive sales websites. You can browse inventory, schedule test drives, get price quotes, even apply for credit. Where the AutoNation website differs is that you can actually trade in a vehicle, secure financing, and arrange delivery or pick up of your new car. AutoNation's not sure whether or not they'll roll out the service to their largest-in-the-nation dealer network. In the past, it's not proven to move as much iron as you'd think. There's a lot to consider when buying a car, and it might just be too bewildering for people to feel comfortable with a "purchase car" button to click. Problem credit is another issue that can plug up the works. In the end, while AutoNation may offer complete online sales, it may not find that many takers.

[Source: The Auto Channel, Photo: Carsnaps]

Close the sale online with AutoNation originally appeared on Autoblog on Thu, 01 Nov 2007 07:06:00 EST. Please see our terms for use of feeds.

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Head of largest US dealer chain makes another call for increased gas tax

Eric Bryant — Wed, 21 Jun 2006 15:01:00 EST

Filed under: Trends, Green

One would not expect someone with a vested interest in selling cars to suggest a proposal that would cause people to drive less, but that's exactly what Mike Jackson is doing - again. This time around, the Autonation CEO wants to see an additional dollar tacked onto the price of each gallon of gasoline, as a means to shift consumer behavior and force a move towards vehicles with better fuel economy.

In an interesting twist, Jackson proposes that the amount collected from each consumer be returned on a yearly basis in the form of a rebate. In this way, the regressive effect of such a tax is said to be mitigated, but consumer behavior would still be altered. Upon first glance at the proposal, it would seem that giving an interest-free loan to a government entity would still cause more than a bit of pain for those at the lower end of the economic spectrum, especially considering that those consumers are often the least able to change their driving habits. Maybe we're missing something, though.

[Source: CNN/Money]

Head of largest US dealer chain makes another call for increased gas tax originally appeared on Autoblog on Wed, 21 Jun 2006 15:01:00 EST. Please see our terms for use of feeds.

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Online car sales - is now the time?

Stuart Waterman — Sat, 27 May 2006 20:03:00 EST

Filed under: Car Buying, Trends

Online sales are now a big and fast-growing part of U.S. retail sales, for everything from books to auto parts. True, the total amount of retail sales booked online is a small fraction of the total volume of consumer goods, but it is the fastest growing of all sales channels, tantalizing manufacturers with its efficiency and low cost (not to mention the potential boost to the bottom line).

This week, The Economist looks at the prospects for online auto sales in the U.S., a market locked in the grip of the nationwide franchise network of auto dealers. To date, attempts to sell cars online have not been promising, but things may (slowly) be changing.

With a whopping two-thirds of new car customers researching their purchases online and virtually complete access to the byzantine maze of rebates and incentives, consumers have been using their new-found knowledge to drive down the dealer's profit margin. This is making some dealers, notably consolidated dealer networks like Lithia and AutoNation, consider how to better integrate online retailing into their operations. As a direct result, AutoNation is launching its SmartChoice online service in June.

Meanwhile, financial institutions like Capital One and Chase (think auto loans) are looking at online auto retail channels as a way to streamline the buying process for their loan clients - using volume buying power to guarantee a fixed price for its customers before they set foot in dealerships. Capital One has partnered with Zag - an internet-based company that brings its car buying expertise to affinity and membership organizations (think credit unions, buyers clubs like Costco, etc.). Even Amazon is rumored to be looking at auto sales.

Is this the death knell for the dealership? Well, no. By law, independent online sellers cannot buy "factory direct" - they must buy their cars from a dealer. Besides, virtual test drives aren't very much fun.

Have you/would you bought/buy a car completely online through eBay Motors or another service? Fess up in 'Comments.'

[Source: The Economist - subscription required]

Online car sales - is now the time? originally appeared on Autoblog on Sat, 27 May 2006 20:03:00 EST. Please see our terms for use of feeds.

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