Upside Down On Your Car Loan

I'm angry with the auto industry!  Not with the vehicles but with this specific selling practice:  Burying old loan balance into a 'new' loan.  This practice is used when a customer has an outstanding balance on a vehicle loan and wants to purchase a new vehicle.  It's called being 'Upside Down'.  Both the customer and Dealer/Finance company are at fault in this crazy transaction:  The customer for not paying off one vehicle before purchasing a new one;  The Dealer/finance company for actually writing the loan agreement!  The end result is that the customer pays way more and for a longer period of time!  

Here's a real example:  An associate just buried $20,000 into a new vehicle lease on a new vehicle that had a capital cost of $50,000.  Total indebtedness:  $70,000 on a vehicle worth $50,000!  She has the same monthly payments as before due to a longer lease term.  But hey...she got floor mats and an extended warranty thrown in for 'Free'!

This should be criminal!  It breaks one cardinal rule of sales:  There is no customer benefit.  I can already hear the howls of protest:  'But the customer wanted it and she gets to drive a shiny new vehicle'.  No comment!

Come one people...put on your big boy pants!  Don't buy something you can't afford especially when it depreciates faster than you can pay it!

If you are upside down, here's how to get out from under it:  Facts about underwater car loans.

Until next time...

The Eyes of the Automotive World

Despite the absence of Mercedes Benz and Volvo, two iconic and aspirational brands, the 2020 Toronto International Auto Show was a hit with me.  It's always a thrill to get up and close with the latest and shiniest new models and this year was just as exciting.  Here are some takeaways:

• Trucks and SUV's really do rule the roads.  Wow...nobody produces cars anymore.  Seriously!  Other than the Toyota Camry and some VW models, cars were not the stars of the show.
• Why do so many vehicles have an iPad stuck awkwardly on the dash.  Oops...my bad...that's the interactive display.  Can't the vehicle manufacturers figure out how to integrate these yet?
• Trucks are ridiculous for most people.  Unless you have a serious work need, a pickup truck with an exposed bed is just plain stupid.  Buy an SUV instead.

Some of the vehicles I loved:

• The VW Arteon.  Weird name, fabulous vehicle!  Thinly disguised Audi fastback at a fraction of the price.
• Subaru Impreza.  Sitting behind the wheel just felt right!
• Toyota Camry.  Nice vehicle.  Love the overall appearance.  Loose the two-tone paint job though.

The biggest surprise for me was Hyundai.  It was the busiest booth by a large margin on the Saturday morning we visited.  The bad old days are way behind them...most of the Hyundai cars and SUV's look fabulous!  And they are priced well!  I even, dare I admit it, lusted after a couple of models!  What...?  Has Hyundai become an aspirational brand?

One final observation:  I love the variety of the headlight designs.  Wild and crazy!

Until next time...

2018 TalkAUTO Canada - Nov 7, 2018

2018 TalkAUTO Canada runs on November 7, 2018.  

If you are in the Automotive business in Canada, this is your opportunity to network and freely discuss the challenges, opportunities and trends impacting the automotive industry.  Click the image below to register.

Farewell...A New Chapter Begins

Last week I said farewell to a number of the finest people I've had the opportunity of working with. Farewell not goodbye...goodbye is so final and good people stay around for life.  My fellow Digital Marketing Consultants;  Support Team at Bond Brand Marketing; Ford of Canada Clients and of course the Ford Dealers I worked with...what a group and what an great experience over the past 18 months on the Ford Dealer Digital Direct Program.  Thank you!

Now a new and exciting chapter has begun.  I started with the Budds' Family as Director of Marketing for all Budds' Family Dealerships covering BMW, Jaguar, Land Rover, Mini, Subaru, Mazda, Chevrolet, Cadillac, Buick, GMC.  

I am totally stoked about the challenge of applying a lifetime of learning and experience in automotive marketing to driving our business forward.  And at an exciting time in the Automotive Retail business with tehnology driving changes in how consumers shop for and buy cars and trucks. We're enjoying a moment in time when servicing customers before they buy, during the sales process and after they take delivery is impacted by the words, 'Customer Service'. Here at the Budds' Family, our mantra "The Family Business that Service Built" says it all.

I've known the Budds' Family for a long time.  Earlier in my career when we were building the Saturn Saab Isuzu Dealership Network, I worked closely with Chris Budd and members of the family and Management Team.  I bought my second Saab from Budds' ... a very nice pre-owned Saab 9000.  I thoroughly enjoyed that car and so did my boys...that Saab coincided with my eldest sons getting their Driver's licenses.  There were weekends when the turbo never cooled down! 

My first week in the new job has been pretty exciting.  Two friends purchased new vehicles (one a BMW and the other a Subaru) and I heard a great service story from another friend who is on his fourth Subaru!  Service sells!  Added to that are all the professionals I've met at the Dealerships I've visited so far: 'Absolute Professionals'. 

A new chapter begins...

Chris M Morales

chris.morales@bell.net

@ChrisMoralesTO

647 393 3855
  

The opinions expressed on this blog are my own and are not associated with any other group or organization

Socializing the Auto Industry

On a business trip back in the day, I asked a Social Media expert to define 'Social Media'.  "...Access to people without the corporate bias or filter".  And he added, "Social Media is electronically enhanced word-of-mouth".  

Today Social Media permeates everything.  Every post on Facebook, Twitter, Pintrest, Instagram reaches your followers and if they find value, they comment and share. Stripped bare, Customer Reviews on Google, Facebook and myriad sites are the new battle fields.  And never more important than in the shopping journey of researching and shopping for a new car, SUV or truck:

Chris M Morales

chris.morales@bell.net

@ChrisMoralesTO

647 393 3855
  

The opinions expressed on this blog are my own and are not associated with any other group or organization

Mobile Marketing for Auto Dealers

Mobile, mobile, mobile...

Mobile marketing for auto dealers is top-of-mind with Dealer Principals today.  In most meetings, there's a moment when we all pull out our smartphones and try to replicate a search experience. I often move from laptop to smartphone to demonstrate a particular shopper experience.  On the front lines, the Sales Consultants interact with the mobile shopper every day:  On the lot all the way through negotiation to closing the deal.  

 

Are you ready? 

Chris M Morales

chris.morales@bell.net

@ChrisMoralesTO

647 393 3855
 

The opinions expressed on this blog are my own and are not associated with any other group or organization

Automotive Marketing Trends

1 in 3 auto shoppers perform a mobile action while physically on a dealership lot.  These potential customers are getting real-time information about the vehicle they are considering while closing in on their purchase decision.  How well the Dealership website serves up the information the shopper wants has a major impact on what Dealership to buy from. Google shared this insight and other automotive marketing trends to help direct more effective Dealership online marketing strategies

Chris M Morales

chris.morales@bell.net

@ChrisMoralesTO

647 393 3855
 

The opinions expressed on this blog are my own and are not associated with any other group or organization

Accelerating Change In Car Shopping

The changes in car shopping continue to accelerate.  It's driven by technology of course and younger consumers entering their car buying years.  'Millennials' have different transportation needs; it's even been noted that they don't share the same aspiration to vehicle ownership as earlier generations.  Different needs combined with technology means the car buying process continues its rapid change.  Here's how to keep the pedal to the metal.

Chris M Morales

chris.morales@bell.net
@ChrisMoralesTO

647 393 3855

The opinions expressed on this blog are my own and are not associated with any other group or organization

 

Headlights: The Distinctive Face of New Vehicle Branding

The eyes have it...the last great bastion of new car and truck design.

At the Toronto Auto Show this past February I was struck by the plethora of headlight designs on display.  The Designers responsible for the 'eyes' seem to have the most influential jobs in the auto industry today.  And with LED lights and high-intensity projector beam lighting technology, they've thrown off the shackles.  What a way to brand a vehicle especially now with so many look-a-like designs in Cars, SUV's and even Trucks.

Some are narrow like the slits of a wild jungle cat, others are big and bold like a wide-eyed child on Christmas morning.  They are all distinctive and that's the point.  I'm partial to two:  The new Volvo and the Mustang.  Both are aggressive and a little sinister...I love them!   I wonder how many new vehicle buyers choose a new vehicle based on it's headlight design?

Chris M Morales

chris.morales@bell.net
@ChrisMoralesTO

647 393 3855

The opinions expressed on this blog are my own and are not associated with any other group or organization

 

The Best of the Toronto Auto Show 2017

Lincoln Navigator Concept

The Toronto Auto Show, or Canadian International Auto Show by it's official name, didn't disappoint on opening night last Thursday. Within 30 minutes of arriving I'd already spent $1 Million. On 3 cars! But they were very nice cars! I'll have to get rid of a couple of my current vehicles to make space for these 3 but it's a sacrifice I'm OK with. 

That's the allure the Auto Show has for me, a die-hard 'gearhead'. Yes, the auto business is alive and well. Car manufacturers are back on track with their marketing efforts and the Auto Show is an even more important way to show new vehicles and get potential customers behind the wheel.

Musings and Observations:

• Electric vehicles and self-driving cars are in the news. Hybrids that combine gas engines with electric motors and battery storage seem more effective to me and I prefer to drive myself thank you very much. Although I do like and appreciate the safety features now coming to mainstream vehicles to help avoid crashes.  

• Connectivity is also a major topic in the Auto industry.  Most new vehicles can now be controlled via Smartphones and there are now modules that can be plugged into older vehicles that provide new vehicle-control.  

• Trucks continue to be a big deal at least for Ford, GM and Dodge.  I get the functionality of a full-size pickup for work and play but using one as a primary vehicle in the city just doesn't make sense to me.  Yet their torrid sales pace continues.  New hybrid engines help a lot with fuel economy but at over $/litre for gas they sure put a dent on the pocket book at full-up time.

• One box vehicles.  Or SUV's or CUV's or Tall Wagons.  Call them what you will but these vehicles are the death of sedans.  Read recently that this segment finally outsold sedans.  I like sedans but I understand the functionality of a one box vehicle. Especially one where you just slide in behind the wheel...must have something to do with my age and stage.

The build and design quality of all manufacturers is almost at parity, at least from my vantage point; there really aren't any real stinkers any more.  There were some highlights though...

• The Lincoln Concept in the photo above.  The side profile looks great too (see below).  I hope they make it.

• The BMW 5 M.  Amazing seats!  Fit like a glove!  Ridiculous power and thirsty but what a vehicle.

• Mercedes E AMG.  Bad Ass!  If you want to kick butt in style this is the vehicle for you.  Get it in Matte Black.

• Mustang GT 350 Cobra.  Enough said. Bad to the bone and completely unapologetic in both performance and looks.  I'd like a semi-automatic paddle shif though...not fond of the manual stick.

• Volvo XC 70.  Whoa...this beauty is really well done.  Lovely, powerful engines though in a great looking package.  The centre stack will take some getting used to though...I still favour the waterfall styling.

Here's another look at the Lincoln Navigator Concept that grabbed my attention:

Chris M Morales

chris.morales@bell.net
@ChrisMoralesTO

647 393 3855

The opinions expressed on this blog are my own and are not associated with any other group or organization

.

Buying a Vehicle in Ontario

Buying a new Vehicle in Ontario today?  It's not as daunting as it once was with Government and Industry Legislation that gives consumers more transparant information. Back in the day before 'full disclosure' it did resemble the good, the bad and the ugly! Here's what it looks like when buying a vehicle in Ontario:

Chris M Morales

chris.morales@bell.net
@ChrisMoralesTO

647 393 3855

The opinions expressed on this blog are my own and are not associated with any other group or organization

Busting Auto Buying Myths

"The Sales Person will go the way of the Dodo Bird".  That and other myths are alive and well.  With more information available online, Consumers are doing more research via Manufacturer and Dealership websites; are getting recommendations via Customer Reviews and various Social Media Channels;  are looking to minimize their time at the Dealership.  But...they still want to buy from a real person.  That and other auto buying myths debunked in the Infographic below:

Chris M Morales

chris.morales@bell.net
@ChrisMoralesTO

647 393 3855

The opinions expressed on this blog are my own and are not associated with any other group or organization

The Automotive Purchase Journey

Back in the day things were different.  The Manufacturer and the Dealer had more information that we had.  I loved going to the Detroit and Toronto Auto Shows in the winter to pick up new vehicle catalogues.  I poured over them endlessly learning the minutae about each model.  Those were good times!  My wife didn't enjoy the piles of old catalogues though.  Thankfully my job in automotive marketing and advertising allowed me to keep them in my office.

As we all know, the big change in the relationship between purchaser and new vehicle seller is that the Consumer now has more information than the sales consultants in the Dealership.  While not absolutely true...Manufacturers spend large budgets on product training...Google Search puts a lot of information at our fingertips.  And in the process, the automotive purchase journey has changed:

Chris M Morales

chris.morales@bell.net
@ChrisMoralesTO

647 393 3855

The opinions expressed on this blog are my own and are not associated with any other group or organization

The evolution of the Social CRM

The evolution of the Social CRM has followed the rise of Social Media Marketing.  If one had to pick a date when Social CRM tipped over, it would have to be when Facebook was adopted by Parents! Now we take social sharing for granted and demand that companies we do business with engage with us in ways that we define.  And that's the key distinction between 'Then' and 'Now':  Back in the day Companies defined the CRM process;  Today, Consumers are in charge!

Chris M Morales

chris.morales@bell.net
@ChrisMoralesTO

647 393 3855

The opinions expressed on this blog are my own and are not associated with any other group or organization

Automotive Digital Marketing Trends

In automotive marketing, the accelerating trend is increased digital marketing.  What it looks like is a shift to Dealerships...this is what the Consumer wants:  A more robust shopping experience where they can search for a particular vehicle easily, get their questions answered quickly and take delivery of their vehicles in a minimum amout of time

Dealerships need to keep their eyes on three things:

1. Getting found online
2. Being responsive to Consumer's requests for information
3. Memorable delivery and post-sale experience

Chris M Morales

chris.morales@bell.net
@ChrisMoralesTO

647 393 3855

The opinions expressed on this blog are my own and are not associated with any other group or organization

The car of the future

Predicting the future is always fun.  Near-field predictions are easier to see given the time it takes to bring a new vehicle to market;  farther out, the less confident the prediction.  It's safe to say though that cars in the future will be greener, safer and more fun.  Here's a look into the crystal ball:

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Chris M Morales

MarCommTO

chris.morales@bell.net

647 393 3855

Linkedin:  Chris M Morales 

The opinions expressed on this blog are my own and are not associated with any other group or organization

How to get consumers to fall in love with your cars

"Get 'em to fal in love".  Emotion and passion!

I love cars.  Always have.  Folklore in my family is that my first word was 'Opel'.  My Dad was driving a cool 2 door Fastback from Germany at the time so maybe there's some truth in that.  

I like to sketch.  Doodle actually.  I've put pen-to-paper on occassion and sketched open-wheeled race cars.  My efforts sure didn't look like these!

One of my most vivid early car experiences was in my Uncle's mid-60's VW Beetle. Compared to Beetles today it was pretty basic.  But was it ever cool!  Made a great racket as he blipped the gas pedal while shifting.  I loved riding shotgun!

One car maker that always gets my blood pumping is Ferrari.  I like the mid-engine cars but love the Daytona-style models:  Front engine, rear drive.  Timeless and Classic!

The Shelby Mach 1.  Growing up it was a rear treat to see a Mach 1 rumble down the street.  It just looked and sounded right.  

A good friend just restored a Deuce Coupe.  Actually he built one!  He took a bare-bones chassis without an engine, restored the body and added an engine.  He took it on a long drive recently...I wish I could have gone with him.

Over the years I've talked with a lot of car guys.  From Corporte Executives, Engineers and Marketers, Car Dealers, Friends who love cars.  The common thread is that we love cars and love talking about cars.  For auto manufacturers, car illustrations may not be a rational way to 'move the metal' but they sure make a long and lasting emotional connection.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Chris M Morales

MarCommTO

chris.morales@bell.net

647 393 3855

Linkedin:  Chris M Morales 

The opinions expressed on this blog are my own and are not associated with any other group or organization

How Millennials shop for cars

"The opportunity to influence Millenials is Online...by the time they get to the Dealership they already know what make and model they are going to buy".  If you're an auto manufacturer, this reality drives your marketing strategy.  Here are some other insights into how Millennials shop for cars:

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Chris M Morales

MarCommTO

chris.morales@bell.net

647 393 3855

Linkedin:  Chris M Morales 

The opinions expressed on this blog are my own and are not associated with any other group or organization