Pub. 12 2013-2014 Issue 4

N e w J e r s e y C o a l i t i o n O f A u t o m o t i v e R e t a i l e r s 21 new jersey auto retailer w w w . n j c a r . o r g to focus on building savings, which will limit discretionary retail spending. Pent-Up Demand. Grade: B. Bynow, anyone even remotely fa- miliarwith the auto industry knows the definition of pent-up demand. Postponed purchases during the recession, and a corresponding aging of vehicles on the road have given a boost to sales for the past several years. This should still provide some momentum to the market, but the stimulative impact is likely to ease somewhat. New Vehicle Attributes. Grade: A . Just about all manufac- turers are introducing great products nowadays. Some are better than others, but all of themoffer significant improvements in fuel economy, safety features, performance, styling, fit and finish, and infotainment when compared to the average 11-year-old vehicle on the road. Credit Availability. Grade: A. Following the stranglehold on credit during the peak of the financial crisis, credit is now widely available to the vast majority of new vehicle shoppers. Low interest rates and higher resale values have also led to a resurgence in leasing. Trade-in Values. Grade: B. Improving supplies of used vehicles are likely to lead to a slight decline in trade-in values in 2014, andmore so in 2015. Nevertheless, trade-in values are still well above where they were in the mid-2000’s. When combined with decent personal income growth, low interest rates, and attractive discounts, elevated trade-in values should help keep a new vehicle purchase within reach for a large number of New Jersey new vehicle shoppers. Sowhat does this all mean?Most of the grades above are solidA’s and B’s. And this is commensurate with our outlook for the New Jersey market.Newvehicle registrations in 2013 approached 490,000 units (a very respectable level for the State market), and are expected to move slightly higher for at least the next two years.We think themarket has just about reached its cyclical peak, and increases for the next several years are expected to be slim, but the market is stabilizing at a very healthy level. Jeff Foltz is President of Auto Outlook, Inc., an independent automotive market research firm. He can be reached at autooutlook@me.com. Automotive HR Solutions provides quality outsourced hu- man resource services to automo- tive dealerships across the tri-state region. We specialize in a variety of services designed to help dealerships maximize their time, profits and em- ployee retention without the worry of maintaining an in-house HR department. Outsourcing HR services allows the auto- motive dealership to focus on its core busi- ness – the sales and service of automobiles. We will develop a customized human re- source solution that will meet the unique needs of your dealership! CALLSandyShectman for a free consultation. Labor relations negotiations and strategies | Wage and hour compliance | Recordkeeping compliance and system development | Turnover monitoring | ESI surveys | Enhance employee morale | Compensation planning and analysis | And much more….. Fully Insured | www.autohrsolutions.com TRUSTED STRATEGIC PARTNERS FOR: