Tuesday, August 28, 2007

Numbers

There are a bunch of reasons your customers buy from you. At least one of them, we're sure (or we hope), is that you and your team are taking Good Care of the customer (maybe you're just fun to be around). No matter how great you are, at the end of the day, selling a new Ferrari, Lamborghini, Bentley, or other exotic car, is about making a deal.

We're from the same business, so we know a little about making deals. Selling cars, even really exotic, hard to get, highly desirable cars, still comes down to your ability to put the right numbers in front of your customer.

Part of this is the trade-in number. Not to overstate the obvious, but in order to make your deal, you have to provide your customer with enough money on their trade.

So how do you get the right number for the trade? Some of you just KNOW. Most of you have a local wholesaler that you can mostly or partially trust. Sometimes, we know, you guess.

The Point, of course, is to make your deal. This is also the Point, of course, of iLuxCars.

When you put your trade into the iLuxCars Network, most of the time the number you receive from the System will be the best number available ANYWHERE. In fact, 1 out of 4 times, the iLuxCars offer is good enough to be accepted. Again, for every 4 trades you submit to the System AT LEAST 1 of them will give you a number that helps make your deal. Really.

Get the best number - make your deal. Simple. It's just numbers.

Friday, August 10, 2007

Incentives

We wrote a few weeks back about predictions. Our new research department has been looking at manufacturer incentives this week.

Many of you probably understand this trend, but it always feels better to have your ideas validated. So - prediction: new manufacturer incentives are driving down used vehicle prices.

Manufacturer incentives are good, right? The short answer is yes, but the current wave of factory incentives could push down prices on new and used cars alike.

iLUXCARS, through its extensive industry experience and (new!) Analytics Group found that generally, a $1,000 rebate on a new car translates into nearly the same discount amount on the used car value.[1]

With new incentives comes rising supplies of used cars. The time is now to take action ­– Move Your Used Cars!

Here’s Why…

Incentives usually mean that new car prices will go down, but also expect your supply of used cars to rise– squeezing prices and reducing the overall value of your used inventory.

First, incentives on new cars will make new cars cheaper, narrowing the gap between new-car and used-cars prices. This makes buying a used car less attractive to consumers, so dealers will have to discount them. Second, incentives on new cars will encourage consumers to trade-in their current vehicles to buy new ones, increasing the number of used cars on dealers’ lots. Dealers will have no choice but to cut these vehicles’ prices to move them, either directly to other consumers or at wholesale.

[1] Research from Kelley Blue Book and DMV.ORG confirm this trend.

Tuesday, August 7, 2007

Analytics

July was another record month for us in many ways.

We hit more than a few milestones this month: the number of network members grew by over 10%; (we're on the edge of passing 600); the most vehicles were submitted in a single month; the most successful transactions between dealers were closed; and we created a new research department.

We now have a first-class department at iLUXCARS dedicated to analytics. The purpose of this is to understand and disiminate the wealth of data that we have and are collecting about the complex wholesale luxury and exotic vehicle market.

We're just getting started with this idea but we're betting that what we learn will be very valueable to the entire network. The point is that we're investing in iLUXCARS and the iLUXCARS network.

We'll keep you posted.