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Just when we thought the auto industry was headed in the right direction, a recall happens with Toyota…. then another recall.. then another recall with Honda. I don’t know about you but this is scary for the auto (finance) industry that we very much work in. Going to a dealership was like going to a ghost town, and then things finally started getting better. This shake up with Toyota, and now Honda, could not have come at a worse time. The struggling auto industry was finally heading in the right direction, and then this all happens. The ironic thing about the recent recalls is the fact that the two companies now in the news were the ones that stayed out of the negative lime-light in the last few years. Kudos I guess to our nation’s automakers for already having gone through the “bad” part of the auto industry hiccups, but gosh when is the auto industry going to get a break? Let’s all keep our fingers crossed that the auto industry keeps moving forward, not backwards!

There seems to be some more positive news in the automobile industry. A recent report is stating the number of people that are going online to search for a car is up in 2009 versus 2008. This is great news considering the industry came to a screeching hault with the falling economy. Webpronews reports that people who depend on the internet to locate a vehicle rose from 40% in 2008 to 46% in 2009. More and more people are starting to bounce back from the struggling economy, therefore they are turning to the internet to tackle a lot of ground work at their fingertips.
The good news for companies like Leadpile and other auto loan lead generators, is that used car buyers visited third party website more frequently than other types of sites, including dealer websites. A large percentage (91%) of those that were searching say they visited at least one third-party website during their shopping process. So if people are doing their homework online first, then we all need to focus on providing as much information as we can to these consumers. I think this auto industry is coming back!

We all now what the auto makers have been struggling with. Most recently Chrysler filed bankruptcy, and now it appears GM might be following suit. It seems GM is trying to do a quick sale of its “healthy” assets.
The remaining assets of GM would stay in bankruptcy protection to satisfy other outstanding claims. GM has about $6 billion in secured debt, including secured revolving credit and bank debt.
The ownership structure of the company is still being worked out. In addition, the government would extend a credit line to the new company, and potentially forgive a large amount of the $15.4 billion in emergency loans that GM already received. The government has given GM until June 1 to restructure it’s operations to lower it’s debt and employee costs.
Leadpile Lead Exchange is very much concerned about the future of the auto industry. We hope this struggling industry sees the light at the end of the tunnel!

Having so much negativeness about the auto finance industry, I thought I would shed some light on it.  In recent news, there was a car manufactured by Ratan Tata, which costs $2000!  Tata Motors is the largest automaker in India, and has finally rolled out the much anticipated Nano.
Business Week states that Tata Motors is going to be doing a lottery to determine who will be able to buy the first Nano cars. Experts are keeping an eye on Tata Motors (parent company is Tata Group) and if this is really going to be bringing in some additional revenue for the company. Because of the low low price, experts don’t plan on this initial roll out to produce high profits for the auto maker. Tata Motors recently payed just over $2.3 billion for Jaguar and Land Rover. Let’s see if this car price and size sparks an interest with the US auto makers, who seem to already have an eye on creating their own version.
The auto finance industry is an industry Leadpile Lead Exchange is always keeping an eye on, and possibly something like this can spark some interest in consumers going out to purchase cars again… that is if you think you can fit in a little car like this? ummmmmmmm?

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 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?