Leadpile’s Blog

I was not aware there was such a thing as a recession proof car, but there is! Take a look at some of the cars that Business Week defines as recession proof cars.

1. Honda Fit
2. Honda CR-V
3. Mini Cooper
4. Toyota Prius
5. Mercedes-Benz E320 Bluetech
6. Lexus LS460
7. Toyota Sienna
8. BMW 328I

Business Week describes a recession proof car as a car that no matter what gas prices are these are all good cars to have. For instance, when the gas prices were peaking at $4.00/gallon, these cars would still be good cars to have because of their good gas mileage. These are all cars that are in high demand now, and most likely going to continue to be in high demand down the road. The other big factor that has determined this list, is none of these auto makers are in “big ” economic trouble right now.
Leadpile Lead Exchange generates a lot of car purchase leads and auto finance leads. These are all people looking for a car. Maybe these cars listed above will be the next hottest models people are running out to get. We will see…..

After going back and forth with congress, the auto bailout has been denied. According to Business Week , a major factor in this bailout not passing was the United Auto Workers (UAW) refusal to budge with regards to lowering pay and benefits.  UAW and congress could not come to an agreement with regards to this touchy subject matter.
According to Business Week, “The bill called for $14 billion to be divided between GM and Chrysler, both of which are at the financial breaking point as the recession and consumer credit crunch have crippled their finances. The companies, anticipating failure in the Senate, have hired bankruptcy law firms. Ford (F) has said it doesn’t need federal assistance now but has asked for a $9 billion line of credit in case sales deteriorate below the current level.”  Let’s see how this affects the stock market today.

Leadpile Lead Exchange is keeping a close eye on this situation.  Not only does the auto bailout situation affect us directly with our auto finance leads, but it also affects other financial related lead types that we are generating.  A bailout not passing is going to affect lots of Americans potentially who are some how linked to this industry.  What is going to happen to their financial situation and their jobs?  So is bankruptcy the next answer to this denied auto industry bailout??? We will see…… 

In past years, the internet did not play a big part in a company’s product sales.  Today, this is certainly not the case. The internet is a major player in generating revenue for all industries. Specifically, financial related websites are very popular for consumers to find out information and also purchase items. Leadpile Lead Exchange is no different. The highest demanded leads in our marketplace are financial related lead types. These are companies wanting to provide financial services to consumers looking for assistance.
The auto industry is also no different than our marketplace, and other companies generating business online. According to DMNews, internet generated car sales will rise from 5.1 millions in 2007 to 7.7 million in 2012. This means that auto makers, no matter what their future status is, need to be visible on the internet in order to generate car sales. This would mean that with the tight economy and not as many people out shopping for a car, auto makers must utilize search engines and SEO efforts to get the much needed attention of consumers. DMNews also stated that Nissan North America, Chrysler and GM have done the best with utilizing search marketing.
So does this also mean that those auto lead exchanges that are not focusing on any other lead type are suffering right now? My guess would be yes. Leadpile Lead Exchange is also feeling the effects of less consumers online looking for a new car, however that is why diversifying the lead types we generate is so very important. People are in dire need of other financial services besides just getting a new car, and we want to be able to help with that.

We all know what is going on with the economy and how it is affecting the auto industry. However, yesterday MSNBC stated that Michigan (home of GM, Ford, and Chrysler) lawmakers are reaching out to the Federal Reserve Chairman Ben Bernanke and our nation’s treasury secretary to help loosen up the credit requirements. This is in hopes that something can be passed with regards to the 700 billion dollar bailout. Lawmakers are concerned the status of the economy is going to cripple our auto industry.

The sad part about this is the lawmakers are estimating at a reduction in car sales by almost 30%. They estimate this could drive car sales down to roughly 11 million vehicles sold per year, and this is lowest figure since 1983. At this point, having lawmakers step in might be a good idea to help to prevent a bad situation from becoming devastating to the auto industry.
This sort of drop in demand by consumers wanting a new car, is also affecting the lead volume in our marketplace. Our goal is to still capture those consumers that need and want a car in this tough economy.

In recent news, GMAC announced it would only offer auto loans to consumers with a credit score of 700+. According to Reuters.com, GMAC is only wanting to extend credit to those with good credit, and is also saying it will be doing more shorter term loans. This is in direct response to the economy and what is happening to the auto industry. GMAC expects these changes to remain in place until the economy stabilizes. In addition to these changes that are affecting consumers, GMAC says, “it has increased the rate it charges car dealers for providing standard auto financing by 75 basis points.” Therefore, this is not only affecting the consumer who is getting the car, but also those that are selling the cars.
Leadpile Lead Exchange works a lot with auto finance and car purchase leads. Situations like this, in the lending world, are going to affect the average “joe” who buys a car. This is where the auto finance lead type could become more demanded because generally you are talking about consumers that don’t have the perfect credit like GMAC is wanting. These consumers still need funding and there are still options out there for them, even though their credit is not “perfect”. Those dealers being affected by the GMAC decision should look at joining our lead exchange. We have the ability to connect you with consumers that are looking for a car and want it now.

Now might be the time to go out and get your new GM auto. According to MSNBC, the employee discount promotion will not be extended past the end of this month. If you are wanting any type of GM, now would be the time to go out and get it and save some money! The discount was saving some consumers anywhere from hundreds to thousands of dollars on that new car. This promotion has been going on since mid August, however sales are still down from the year before. Fortunately, it has allowed GM to have less of a “slump” compared to Ford and Chrysler.
If you are a consumer who is wanting to get that new auto NOW.. Let Leadpile connect you with dealerships in your area. Go to my loan and debt website to get matched up with an auto dealer.
If you are a publisher or advertiser, we would love to work with you here at Leadpile Auto Lead Exchange to connect consumers with dealership near them!

Bankrate.com just released the top 10 selling cars for 2008.  The hottest and most popular automobiles: 

• #10 – The Chevrolet Cobalt.  Listing price $14,217. Sold to date 114,250 vehicles.  Runs at about 25-30 mpg.  
• #9  -  Ford Focus. Listing price $15,363. Sold to date 123,449 cars. Average 28mpg
• #8  -  Chevrolet Impala. Listing price $21,348. Sold to date 138,952.  MPG depends on the cylinder of the vehicle.  Your looking at anywhere between 17-23mpg depending on the version
• #7 – Chevrolet Silverado (light duty). First truck on the top ten.. Listing price$25,921. Sold to date 148,046. They average 11-16mpg. 
• #6  - Nissan Altima.   Listing price $22,798. Sold to date 158,006.  Average 22-26mpg.  
• #5  - We are half way down the list . Introducing the Ford F Series (light duty). Nice to see another truck on the board.  Listing price $22,798.  Sold to date 164,828.  10-16mpg.  Wow, get ready to spend your money on gas with this type of mpg!
• #4  - Toyota Corolla.  Listing price $17,122.  Sold to date 169,868.  25-30mpg.  Nice!
• #3  - And now the top three!  Honda Civic! I’m not surprised to see this bad boy on the list.  Listing price $19,114.  Sold to date 204,961.  The MPG is great with whopping 28-42mpg. 
• #2  - Honda Accord.  Listing price $25,859. Sold to date 227,874.  Save some cash with this beauty 25-34mpg.
• Finally, what we have all been waiting for .  #1 best selling auto for 2008!  You ready?  Announcing the most popular car around, the TOYOTA CAMRY.  Listing price $22,859.  Sold an amazing 228,874 cars this year.  Take a vacation with the money you will save on gas with 23-34mpg.

Surprised to only see 2 trucks in the top ten?  I think not.  Overall car sales are down 10% this year compared to last year.  Leadpile Lead Exchange deals a lot with the Auto Finance vertical and the volume of leads coming through our system is slightly down also, however we are expecting it to turn around any day now!
There you have it, the top 10 autos for 2008!

General Motor Corp. is introducing the new Chevrolet Volt in 2010 and has a waiting list of over 33,000 prospective buyers for this new battery powered car.   Many buyers for this vehicle are from California, Texas, Illinois and Michigan.  Yes, many Americans are facing high gas pricing in these states.  

Its estimated to cost about $31,261 which is less than the $40,000 GM said would cost to generate the car equipped with a massive lithium-ion battery pack.  

The new Chevrolet Volt will be able to run 40 miles on lithium-ion  battery and can easily be recharged at a standard outlet. 

GM showed off a concept version of the Volt in January 2007 but has retooled the look of the vehicle significantly since then.  

What do you think of this new vehicle?   Are you on the waiting list as a potential buyer?  What other neat features do you anticipate this car having?  I wonder what the lifespan is for the battery? 

I love the style, what do you think! Hot Car? Or Two thumbs down?

I have had multiple calls these last few weeks, and one of the things I observed was that Loan Officers’ main focus is becoming the “credit repair”.  LO’s are looking at different avenues to assist their clients in need. We all know that a large percentage of consumers are having credit problems. Unless you have good or excellent credit, you won’t qualify to refinance your home. After Loan Officers are attempting fixing your credit, they are assisting the client to refinance their homes. 

That’s a smart move for LO’s.  First they charge to fix your credit, then they help you refinance.  Realistically speaking I think its a brilliant idea. It’s not coming fast, but do we have other options? Adapt to the new situations, look for what the consumers need, and you will be able to succeed, even in this market. 

The demand for credit repair in these last few days have gone up.  Finding new ways to make a living and to survive even when the economy is struggling is fabulous. 

Any thoughts on this?

In recent weeks the 3 largest automakers have pulled out of leasing. This seems to be affecting the industry already. According to Automotive News one in every 5 vehicles sold was a lease. This is up from 2003 when 1 out of 3 vehicles sold was a lease.

What might happen with these leasing numbers in the near future? Unfortunately, with Chrysler, their leasing partner Chase had pulled out of offering leases, so this took them away from the leasing arena. Knowing this, that means that a few things we could see starting to happen:
1. Consumers begin to purchase vehicles by foreign auto makers.
2. Auto lenders offer lower interest rates.
3. Longer term auto loans becomes a much more common practice.
4. More motorcycles and scooters sales.

What happens in the up and coming months will most likely determine what the actual affect is, and who will survive these changes.
With these auto industry changes it could also affect lead generation companies. Will it increase the number of consumers going online to get an auto, or will it not really have too much affect on the overall lead generation industry? Time will tell.
Leadpile Auto Lead Exchange will have open arms no matter what the outcome is.

IDEA: Maybe with all the changes going on in the auto industry and gas being so high, Leadpile might want to consider bringing in “scooter” and “motorcycle” leads? ummmmmmm?

According to MSNBC late Friday, there is some speculation that Chrysler could possibly be getting out of the auto leasing arena. I guess time will tell if this turns out to be true.
Major changes such as this has been happening in the auto industry, and turning the once SUV dominated auto industry into the now ECONOMY driven auto industry. This potential exit from the leasing market, could be the beginning of other major auto manufacturers doing the same thing. Why would auto companies continue to be apart of the leasing industry that is dominated by massive gas “hogs”? Then again what about leasing some of these other cars that are making a surge in the auto industry now? Does that mean consumers will not be able to potentially lease those auto types too? WE will see….
One positive that I can see in this potential change is the increase in the auto finance (own) industry. This potentially means more people will be owning their cars instead of leasing. This could result in an increase in our auto finance lead type. Leadpile Lead Exchange will welcome this potential increase in demand!

Watch LeadPile Specialty Finance TV Commercial Here!

According to TNS Media Intelligence (as reported by Emarketer), Automotive advertising spending in the US dropped to $1.99 billion in Q1 2008. That was down more than 14% compared with Q1 2007.

This does not surprise me that much as we predicted in 2005 that more and more Automotive Advertising would be spent online in the years to come. While the overall automotive advertising spending decreased, Internet spending was up 57.9% last year, to $441.6 million.

What does this mean to our Automotive Lead Exchange Participants? Simply put, being in the middle of the online auto lead space is not a bad place to be at all. Carpe Diem!