The World’s Cheapest Car… by Tata Motors

The world’s cheapest car, measuring at a mere 10.2 feet in length, goes on sale next month in India. (And I thought the Smart car was small… geez.) Manufactured by Tata Motors, the Nano will retail for just over $2,000.00, making new car shopping affordable to a whole new demographic in India.

Tata Motors Nano will launch April 2009

Safety fanatics beware– the Nano is not equipped with air bags nor anti-lock breaks. However, for an added cost, you can get AC, a radio and power steering. Boasting a whopping 55.5 miles to the gallon, (and don’t be fooled by its size), it can reach speeds of up to 65mph.

Given the current economic state, this vehicle couldn’t debut at a better time. Ratan Tata, chairman of the Tata group, reported that although the U.S. market wasn’t originally part of their plan about a year ago, it’s now looking promising. That being said, Tata is designing a version that would meet U.S. safety and emission standards, that won’t be ready for about another three years, while a Nano Europa is scheduled to launch in 2011.

Like many others, Tata Motors was hit hard by the financial crisis and hopes to turn things around with the Nano’s launch April 1st. However, although they’re expecting the demand of the Nano to exceed their supply, analysts say that this will only increase their total revenues by a few percent.

 

 

Hmm… I, on the other hand, think I’ll still stick to a Ferrari….

Where & How to Sell Your Ride

Looking to sell your car? Whether you aren’t satisfied with the trade-in value at the dealership, or you need the cash before you can shop for a new ride, it can be a long and frustrating process. To alleviate some of the stress, I thought I’d give you some tips on how and where to get started!

Things to Consider, Research & Do First

One of the first things to consider is the time of year/season that could affect the sale of your vehicle. For example- you may have a sporty convertible in excellent condition, but the chances of it selling for a competitive price during the snowy winter months in the Midwest are pretty slim. (Naturally, use your common sense!)

Check out Edmund's True Market Value pricing.

The next step is to decide on a selling price for your vehicle. Survey online and newspaper classified ads for the same or similar vehicles, making sure to note the mileage, trim level and condition of the vehicle. You can also check other internet sites like, Autotrader.com and Cars.com to see what your car is selling for in your area, and how many are in the market. The more like-vehicles listed, the more competitive you’ll have to be with your pricing. I’d also recommend checking out Edmund’s True Market Value pricing system. The system adjusts depending on key factors such as color, mileage, and specs to give you fair value for the vehicle. And keep in mind that if you’re contemplating a fair number, you can always lower the price at a later date, so be sure that you’re comfortable with what you choose.

Remember the importance of "first impressions!"

Remember the importance of “first impressions.” If someone doesn’t like what they see right off the bat, well you can almost guarantee that they’re not going to take a second glance. That being said, take the time to wash the outside, clean out the inside, and if needed, detail your vehicle. If it needs a few low-cost repairs or maintenance like fixing a dent or two, getting an oil change, or buffing out a scratch, then consider doing it yourself. Spending a few extra dollars may save you the headache, and shorten the sales process. Another good idea would be to get a CarFax or Experian’s AutoCheck vehicle history report, to show potential buyers that odometer reading is correct and justify the condition of the vehicle.

How & Where to Advertise… from online & traditional newspaper classifieds to putting up a sign in your car

So now where do you advertise? Nowadays there are so many options out there- from the traditional newspaper classifieds, to online listings, to just sticking a “for sale” sign in your car window. If you don’t mind cruising around with a sign in the window, then start there. It’s cost-effective, takes virtually no time to do, and you could potentially sell the car locally, especially if you maintain a shorter radius on your daily commute.

Over 80% of the population uses the internet at some point during the car buying process, whether it’s research on a particular make/model, pricing information, or to search out a particular new or used vehicle. By utilizing online classifieds, you can reach a wider audience than you can by simply relying on your local newspaper listings or the sign-in-the-window method. Some of the top online vehicle classifieds include AutoTrader.com and Cars.com, and most of your local newspapers use one of these two services within their vehicle classifieds section. Craisglist.org is also becoming more frequently used, typically for local shoppers. You can also place a traditional ad in the local paper, but remember that most people refer to the internet, even when they’re checking out the local paper.

The key to online ads is creative writing (which I’ll go into more detail about in my next blog post.) Think of ways to make your ad stand out from the rest, but make sure to include key facts like the mileage, price, color, condition, year, make, model and trim level. It’s also good when noting the price, to describe it as the “asking price” or give a price, followed by “OBO” (or best offer.) This informs people that you’re willing to negotiate which tends to attract more potential buyers.

Be prepared to answer your phone if someone calls to inquire about your vehicle for sale.

Keep in mind that people are busy and most often would rather speak to someone right off the bat to determine if the vehicle is worth looking at. For those who don’t want to list your phone number, you can include your email, but chances are you’ll get a greater response from potential buyers if they can call you. And if you do list your number, be prepared to answer your phone!

And finally…don’t forget to spread the word! Let your friends, co-workers, and family know that you’re selling your vehicle. People always prefer to buy from someone they know, so a personal referral is a much more promising potential sale.

Something New: A Speedy & Effortless Alternative

Don’t have the time to go through all the steps, or want to avoid the phone calls and people coming to see the vehicle? Do you just want to sell the car fast and be done with it? From time to time here at CarsDiva, we check out new automotive industry services for consumers and we think we found an interesting alternative for private sellers. Check out Copart Direct. They take care of the whole process for you, from start to finish!

A speedy and effortless alternative

At Copart Direct, you call them up and work with their representative to determine a fair value and the number to expect for your vehicle. You then drop off your car for sale at one of their nationwide facilities where they inspect and photograph the car. Copart Direct uses an online technology process where your car is exposed to over 100,000 registered buyers worldwide (typically wholesalers and dealers.) After the online virtual auction, the representative will contact you to give you the low-down on the number of bids, where they came from, and the amount of the highest bid. You then decide if you want to accept the bid, and after you do, you pick up your check! That’s it- easy and hassle-free. They take care of all the paperwork, transport, etc… One thing to keep in mind is that it is an online auction, so you may take a bit of a hit on the price. However, if you want to avoid the sales process and save time, then it’s a great alternative to selling the vehicle on your own.

Got more questions? I’ve got answers! Feel free to drop me a line at CarsDiva.com and I’d be more than happy to help you out in any way I can!

Up Next

…Tips for creative online ads and finalizing the sales process!

Car Buying + the Internet = the Creation of CarsDiva.com

My comments this time are in regards to the summary of a report I read by none other than Capgemini, the esteemed global consulting and technology firm, that recently performed a study on cars and the growing consumer trend with the Internet.  The article “Responding to Changing Consumer Trends and Buying Behavior” (http://us.capgemini.com/carsonline/), deals with the changing trends on the retail side of the automotive industry, based on recent studies performed in China, France, Germany, the United Kingdom and the United States.

Capgemini found that “Consumers are becoming increasingly knowledgeable about vehicles as web sophistication grows, often putting them one step ahead of dealerships and automotive companies,” stated by Nick Gill, Global Leader, Automotive Sector, Capgemini.  It’s no surprise to find out that people are using the internet more and more to arm themselves when shopping for cars.  In fact, most consumers today begin their search process on the internet, as the transparent flow of information online keeps folks informed about what’s out there and puts them in the cat bird’s seat as a new or used car buyer (and some dealers even recognize this).  The internet provides useful websites from manufacturers, automotive vendors, and fellow consumers (think car-related blogs like mine!), where consumers can obtain valuable information regarding everything from the vehicle’s physical attributes, drive, and maintenance, to fair pricing, to financing, and so forth, before they make their final purchase.

The WAY the Internet is being used is changing!!!

The Capgemini surveys concludes that when consumers are researching their car purchases, 80% utilize the web as a tool.  No surprise there as well, but the trend that is changing is how the internet is being used to obtain both facts and objective perspectives.  Tools such as search engines, automotive blogs, and web forums are just some of the mechanisms that consumers are relying upon.  29% of those surveyed admitted that they refer to C2C, (consumer-to-consumer) sites as a major source for their information (that’s a 21% increase over the span of just 1 year.)  I think David Silver, entrepreneur and angel investor, made a very valid point in his recent book, “Smart Start-Ups,” when he said, “The wisdom of the crowds trumps the expert working alone.”  I mean seriously, think about when you’re contemplating a purchase, particularly a hefty investment- you consult with others right?  Friends, family, “experts”, they all give their two-cents and then [most often] you use a collaboration of that information to make your final decision.  Just look at the success of these forums and networking sites- how many users does MySpace have?  Oh that’s right, over 200,000 million and growing! That’s gotta tell you something about the current internet trends and how to target your audience using the Web, right?  Just a speculation…. I’m only observing the facts here guys….

So What Does this Mean for Car Dealers???

The most intelligent cookies in the box will be the ones who grasp this changing consumer trend, and leverage the internet as a viable channel for everything from marketing, to sales, to solving problems and answering questions based on consumer-to-consumer input.  Channel the “wisdom of crowds” and you have something, I think, so that’s what we want to try to do here as well.

On a related topic, from the “sell side,” a recent story in AutoRemarketing Magazine, “Dealers Spending More on Web Advertising, Marketing,” shows that dealers nationwide, in contrast, are making slow progress, based on studies performed by Jupiter Research and NADAguides.com examining Internet operations in dealerships, in reaching out to Internet consumers.  They found that since 2003, there’s been a 14% increase on the amount spent on online advertising and marketing.  Additionally, J.D. Power reported that about 61% of dealers nationwide use at least one [independent] online buying service, and many of them have signed up for several of these services. Still though, the vast majority still put the lion’s share of their advertising dollars in classified newspaper print advertising, although this media sector has been the “biggest loser” of advertising dollars that have been rechanneled to Internet marketing (in all sectors, not just automotive), and no one sees this trend doing anything other than accelerating rapidly.

Someone’s got the idea…

I think General Motors Corporation is on the right track by discussing the importance of the Web in future marketing.  I attended their Dealer Development program (encompassing both the Minority Dealer Development and Women’s Retail Initiative) last week in the North Central Region, and as they discussed the future of the domestic auto giant, a great deal of focus revolved around the Internet. They seem to agree that those dealers who understand and embrace the Internet in vehicle marketing will have the competitive advantage over the others in the market.  (More on the exciting and unique to all manufacturers, GM’s Women’s Retail Initiative, in my next blog entry….) 

New Opportunity to Ride the Wave…

So what can I conclude from all of this?  More or less the obvious, that is, the changes springing from the Internet innovation continues to create new opportunities, especially in the generally “slow to adopt new technologies” world of the automotive industry- new channels for how business is, or should/can be conducted.  Those who realize this and grasp the opportunity will be in the position to ride the wave.  And those who don’t? Well, one of the West Coast technology/auto mavens, Scott Painter of Zag, Inc. (formerly the first CEO of CarsDirect.com), has publically stated in a trade magazine that he thinks 1/3 of current automotive dealers will be out of business in 10 years, precisely because they will be slow to adapt Internet trends.  While I don’t agree with his dramatic assertion, I can certainly see the underlying reasoning behind it….

The “Diva” has spoken.