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Used Cars…Used Cars…Very ProfitableVery Profitable

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Consumers Choose Consumers Choose Gently Used Over NewGently Used Over New• According to Manheim's Used Car Market Report.According to Manheim's Used Car Market Report.

• A CNW Marketing Research firm study showed that the value of A CNW Marketing Research firm study showed that the value of used-vehicles also increased by 5.8% over the same period last year, used-vehicles also increased by 5.8% over the same period last year, driven by reduced supply. driven by reduced supply.

• Other findings from the study revealed a flood of newly independent Other findings from the study revealed a flood of newly independent dealerships that are now operating exclusively as pre-owned dealers dealerships that are now operating exclusively as pre-owned dealers following the closure of many franchised vehicle stores.following the closure of many franchised vehicle stores.

• CNW predicts the industry could hit used car sales of close to 40 CNW predicts the industry could hit used car sales of close to 40 million units for the year. million units for the year.

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Tight Credit Market Moves Tight Credit Market Moves Consumers Toward Used-vehiclesConsumers Toward Used-vehicles• With the average price for a pre-owned vehicle at a franchise lot With the average price for a pre-owned vehicle at a franchise lot

increasing annually. increasing annually.

• Independent dealers are seeing an increase on their share of loans. Independent dealers are seeing an increase on their share of loans. With the ability to supply credit to the consumer. With the ability to supply credit to the consumer.

• CNW found that the amount consumers are willing to devote to a CNW found that the amount consumers are willing to devote to a monthly vehicle payment is an average of $327 per month. monthly vehicle payment is an average of $327 per month.

• J.D. Power found that more people (55%) are also trading in their J.D. Power found that more people (55%) are also trading in their used-vehicle for another used model and almost 30% trade a vehicle used-vehicle for another used model and almost 30% trade a vehicle they bought new for a secondhand replacement.they bought new for a secondhand replacement.

• As more consumers fact-find on the internet before purchasing a As more consumers fact-find on the internet before purchasing a used-vehicle, shoppers are selecting vehicles before they visit a used-vehicle, shoppers are selecting vehicles before they visit a dealership. dealership.

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The demand for used luxury cars is booming, suggesting affluent car buyers want The demand for used luxury cars is booming, suggesting affluent car buyers want a balance between saving money while maintaining their lifestyles.a balance between saving money while maintaining their lifestyles.

• To reach potential CPO buyers, TV advertising messages should focus To reach potential CPO buyers, TV advertising messages should focus on the added value of a gently used-vehicle along with a dealership's on the added value of a gently used-vehicle along with a dealership's reputation as a stabile part of the local community. reputation as a stabile part of the local community.

Sales of Pre-Owned Luxury Sales of Pre-Owned Luxury Vehicles Poised for GrowthVehicles Poised for Growth

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Bright Future for Used-vehicle Bright Future for Used-vehicle DealersDealers• Fewer new cars going to buyers means there may be fewer Fewer new cars going to buyers means there may be fewer

used-vehicle at some later date. However, according to J.D. used-vehicle at some later date. However, according to J.D. Power, used-vehicle dealers are facing a bright future.Power, used-vehicle dealers are facing a bright future.

• Shoppers that can no longer get credit for a new vehicle, or Shoppers that can no longer get credit for a new vehicle, or who don't want to commit themselves to investing a large who don't want to commit themselves to investing a large sum of money into a car, will continue to turn to the used-sum of money into a car, will continue to turn to the used-car market as an alternative.car market as an alternative.

• Value will continue to drive buyers into a dealership. To Value will continue to drive buyers into a dealership. To communicate value through TV ads, include messages that communicate value through TV ads, include messages that differentiate the dealer's products, customer relationships, differentiate the dealer's products, customer relationships, ease of financing, and superior service from its competitors. ease of financing, and superior service from its competitors.

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By spending a certain amount per car for By spending a certain amount per car for television advertising, retailers can increase television advertising, retailers can increase share and sales of used vehicles and elevate share and sales of used vehicles and elevate their dealership to a more prestigious level their dealership to a more prestigious level among consumers.among consumers.

Advertising StrategiesAdvertising Strategies

As buyers face difficulty in financing new cars, As buyers face difficulty in financing new cars, used-vehicle dealerships can bring in traffic and used-vehicle dealerships can bring in traffic and sales by partnering with a local broadcast TV sales by partnering with a local broadcast TV station during community events or for live station during community events or for live remotes, providing added value for a media buy remotes, providing added value for a media buy while reaching a wide demographic of potential while reaching a wide demographic of potential customers. customers.

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To reach more affluent, certified-pre-owned To reach more affluent, certified-pre-owned customers, TV advertising messages should focus customers, TV advertising messages should focus on the added value of a gently used luxury vehicle on the added value of a gently used luxury vehicle along with a dealership's reputation as a stabile along with a dealership's reputation as a stabile part of the local community.part of the local community.

To communicate the value of a dealership over To communicate the value of a dealership over its competitors, TV ads should include its competitors, TV ads should include messages that differentiates a retailers messages that differentiates a retailers products, customer relationships, ease of products, customer relationships, ease of financing, and superior service.financing, and superior service.

Advertising StrategiesAdvertising Strategies

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The Answer is Three Simple

Reasons!

Why TV?Why TV?

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1.1. Your customers and potential Your customers and potential customers customers use it − viewing use it − viewing daily for long periods of daily for long periods of time.time.

2.2. TV’s attributes of sight, sound, TV’s attributes of sight, sound, motion motion and emotion let you best and emotion let you best communicate communicate your message to your message to these people.these people.3.3. Television works in dollars Television works in dollars returned!returned!

Why TV?Why TV?

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The right message…The right message…To the right people…To the right people…

At the right time…At the right time…In the right In the right

place!place!

Remember…Remember…Only Only TelevisionTelevision can give you: can give you:

Why TV?Why TV?