July 14, 2016
Rent-to-Own Program Helps Dealer Sell More Cars
Automotive News reports that when Atlanta dealer Scott Smith started a rental-car company three years ago, he quickly realized the business could help serve up profits beyond those gleaned from daily rentals to vacationers and business travelers. Rental cars could generate revenue for his dealerships as well by providing cash-strapped buyers time to come up with a down payment on the car of their choice. Enter Smith’s rent-to-own program. “We offer a customer the opportunity to rent a car for so much a month, for, say, three to six months, with an option to own it,” said Smith, CEO of Automotive Associates of Atlanta. “They can come up with the down payment during that time and we’ll give them a portion of the rental money back. It holds the customer captive.” Automotive Associates has three Nissan stores, two Kia stores and a Toyota store in the Atlanta area. The group sells 15,000 new and used vehicles a year. Find out more about the dealership group’s rent-to-own program here.
Michigan, California Race on Self-Driving Car Infrastructure
Michigan’s latest push to market itself as a leader in self-driving car development is part of a national scramble to secure federal funds, manufacturing jobs, investment — and bragging rights. But, reports The Detroit News, the Great Lakes State faces stiff competition from California’s increasingly advanced infrastructure. Aside from cold-weather research, the Golden State’s test sites, such as Gomentum Station and Moffett Field, can match any work being done at MCity. California’s own two-mile stretch of connected road along State Route 82 can transmit the same data as the sensors along southeast Michigan’s roadways. Texas, Pittsburgh, and Columbus also are planting their flags as autonomous vehicle development destinations. Read about competition brewing for vehicle development bragging rights here.
Survey Finds Road Rage, Risky Driving is on Rise
Nearly 8 of every 10 U.S. drivers admit expressing anger, aggression, or road rage at least once in the previous year, according to a survey released Thursday by the AAA Foundation for Traffic Safety. The Detroit Free Press reports that the behavior could include following too closely, yelling at another driver, cutting them off, or making angry gestures. While that's dangerous enough, an estimated 8 million drivers engaged in more extreme behavior on streets and roads that might be considered road rage, including bumping or ramming a vehicle on purpose or getting out of their cars to confront another driver, the foundation said. The most aggressive and aggrieved drivers are young men ages 19 to 39. The foundation's findings are based on a nationally representative online survey of 2,705 licensed drivers who had driven at least once in the previous 30 days. For more on rising road rage, click here.
California Rejects VW's Plan to Fix 3-Liter Diesel Cars
California's air-quality authority Wednesday again rejected Volkswagen Group's plan to recall and repair 16,000 of its polluting vehicles with six-cylinder 3-liter "clean diesel" engines in the state, saying the proposal is too vague. According to USA Today, the U.S. Environmental Protection Agency, which has been acting in concert with the California Air Resources Board, issued its own statement saying it also finds VW's plan to be incomplete. The rejection affects Volkswagen, Audi, and Porsche vehicles – all part of VW Group – with the larger diesel engines. "VW's and Audi's submissions are incomplete, substantially deficient, and fall far short of meeting the legal requirements to return those vehicles to the claimed certified configuration," says the letter sent Wednesday to VW Group. A similar letter was sent to Porsche. For more on California’s second rejection of VW’s diesel fix, click here.
Audi Enters the Race for Self-Driving Cars
Auto companies are racing to develop self-driving cars and Audi of America President Scott Keogh believes his company is in first place. According to CNBC, Audi has created a self-driving car named Jack, which is equipped with 20 sensors that enable it to navigate on freeways and through traffic. The car notifies users when it is ready for automated mode through LED lights on the dashboard and steering wheel, a message on the instrument cluster and an audio annunciation. Once the car tells its driver that it is available for self-driving, the user must press two autopilot buttons simultaneously to engage the system. "Jack is programmed to work on freeways in automated mode," Audi Senior Engineer Kaushik Raghu said on CNBC's Power Lunch. "It doesn't have all the antennas and the cables, and sensors sticking out. It just looks like a car that you can go buy at the dealership today." For more on Audi’s self-driving vehicle technology, click here.
Still a Problem
Not only is distracted driving still a serious problem, it is an epidemic. With each new mobile device introduced, the potential for behind-the-wheel distractions increase and so does a business’s exposure to risk. Federated Insurance is very concerned about the persistence of this issue and how it can adversely affect your dealership. What might you stand to lose as a result of distracted driving? Federated’s distracted driving awareness program asks “What Is Important to You?” It provides a sample mobile device policy, reminder posters, and employee training materials including a thought-provoking video and educational handout. It also presents information on technology solutions which can aid in restricting mobile device use in vehicles. Federated wants you to make it home safely every day. It’s up to each of us to make it a priority to end distracted driving. For more information, call 1-800-533-0472, or visit www.federatedinsurance.com to find your local representative.
Around the Web
Where Should Your Marketing Money Go? [CBT News]
2017 Subaru BRZ First Drive [Autoblog]
Fiat Chrysler is Paying the Public to Find Security Flaws In Its Cars [Fortune]
17 Cars You Can Own for Under $300 a Month [CBS Money Watch]