...Dealer’s Guide to the Used Car Rule Federal Trade Commission 'HDU &DU 'HDOHU 7KH )HGHUDO 7UDGH &RPPLVVLRQ DQG WKH 1DWLRQDO ,QGHSHQGHQW $XWRPRELOH 'HDOHUV $VVR.LDWLRQ DUH SOHDVHG WR SURYLGH \RX ZLWK DQ XSGDWHG .RS\ RI $ 'HDOHU©V *XLGH WR WKH 8VHG &DU 5XOH 7KH 'HDOHU©V *XLGH LV SDUW RI D .RQWLQXLQJ SDUWQHUVKLS EHWZHHQ WKH )7& DQG 1,$'$ WR HGX.DWH WKH LQGXVWU\ DERXW .RPSOLDQ.H UHTXLUHPHQWV 1,$'$ XQGHUZURWH WKH .RVWV RI SULQWLQJ DQG GLVWULEXWLQJ WKH SUHYLRXV YHUVLRQ RI WKH 'HDOHU©V *XLGH DQG LW LV SURXG WR XQGHUZULWH WKRVH .RVWV IRU WKLV YHUVLRQ 7KLV 'HDOHU©V *XLGH GHILQHV WKH 5XOH©V UHTXLUHPHQWV H[SODLQV KRZ WR SUHSDUH DQG GLVSOD\ WKH %X\HUV *XLGH SURYLGHV D .RPSOLDQ.H .KH.NOLVW DQG LQ.OXGHV VDPSOH %X\HUV *XLGHV :H HQ.RXUDJH \RX WR XVH WKH 'HDOHU©V *XLGH DQG VKDUH LW ZLWK \RXU VWDII :KLOH .RPSOLDQ.H ZLWK WKH 8VHG &DU 5XOH LV UHTXLUHG E\ IHGHUDO ODZ LW DOVR .DQ KDYH ERWWRPOLQH EHQHILWV IRU \RXU GHDOHUVKLS 7KDW©V EH.DXVH LQIRUPHG .RQVXPHUV DUH PRUH OLNHO\ WR EH.RPH UHSHDW .XVWRPHUV DQG SURYLGH UHIHUUDOV WR \RXU EXVLQHVV ,I \RX KDYH TXHVWLRQV DERXW WKH 8VHG &DU 5XOH SOHDVH .RQWD.W -RKQ +DOOHUXG LQ WKH )7&©V 0LGZHVW 5HJLRQ DW ,I \RX ZRXOG OLNH DGGLWLRQDO .RSLHV RI WKH 'HDOHU©V *XLGH SOHDVH IROORZ WKH RUGHULQJ LQVWUX.WLRQV DW WKH HQG RI WKH ERRNOHW 6LQ.HUHO\ \RXUV - +RZDUG %HDOHV ,,, 'LUH.WRU %XUHDX RI &RQVXPHU 3URWH.WLRQ )7& 0L.KDHO 5 /LQQ ([H.XWLYH 9L.H 3UHVLGHQW 1,$'$ M ost car dealers who sell used vehicles must comply with the...
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...and numeric characters. No two VIN's are the same. - All cars and light trucks built after 1981 have unique 17-character "vin numbers" that contains valuable information about that vehicle's history. These numbers are called vehicle identification numbers (VIN #). - Smart car buyers are recognizing that "VIN" Numbers or "vehicle identification numbers" can provide essential information to help them make better decisions about cars, old and new. VIN numbers are unique 17-digit serial numbers assigned to all cars manufactured after 1981. Just as fingerprints, a car's VIN or vehicle identification number can provide information a car buyer can use to confirm the true history of the car. -VIN numbers are used to record everything that will ever happen to a car. When ever your vehicle is sold, involved in an accident, or involved in an insurance claim, or recalled, bureaus such as Carfax record that information in data bases. VIN's display a car’s uniqueness and manufacturer and provides a method to trace a car from the factory to the junkyard. Your VIN number can be used to track recalls, registrations, warranty claims, thefts and insurance coverage. A chain letter circulating claims that you should cover the VIN number of your car so that car thieves can't use it to duplicate your keys and steal your car. Key Point: The vast majority of cars are not stolen this way. The two most common tools for stealing your car are your own keys, or a screwdriver. Your car's VIN...
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...8. Moral hazard occurs when individuals tend to be very risky when there are protections if a loss occurs. This is more likely in indirect finance. For example, when an individual purchase a new car, they insure it and their policy dictates that if an individual accidentally hits their vehicle, they are obligated to a new vehicle. So after a few years and that individual gets tired of their vehicle and is desperately in need of a new one, they would intentionally drive a bit reckless to allow someone to hit their vehicle. Lemons problem can be both indirect and direct finance. It occurs when one party to a transaction do not have the same degree of information. The party with less information take a risk hoping that the “lemon” is a good buy. For example, in the used car industry, the seller has all the information about the car and may limit the actual reason as to why they are selling the car, the problems the car has etc. intermediaries in the financial market can reduce lemon problems by reducing the attractiveness of direct finance by offering more incencitives to individuals when acquiring finances, offer provision for information, enforce laws on information given ensuring individuals receives sufficient information. Financial intermediaries have expertise in assessing the risk of the applicant for funds that reduces adverse selection and moral hazard. They have easy access to various databases that provide information on both individuals and businesses, and they...
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...Marketing principles Price discrimination Outline 1. Introduction............................................................................................................................3 2. Conditions for price discrimination........................................................................................3 3. Types of discrimination..........................................................................................................4 4. Advantages/Disadvantages of price discrimination...............................................................5 5. Economic explanation.............................................................................................................6 6. Examples of price discrimination......................................................................................7-16 7. Price discrimination in universities..............................................................................17 - 23 8. Summary.............................................................................................................................24 What is price discrimination? The goal of every business is to maximize its profits and they can achieve this goal by successfully determining the price of their products. There are many different ways to deal with determining the price of the products. All of these ways are called – pricing strategies. Price discrimination is one of many ways how companies may determine the price of their...
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...HI5018 BUSINESS LAW TRIMESTER 2, 2014 Assignment 1 – Case Studies Assessment Value: 20% Word Length 1500- 2000 words Date Due: Week 5 Friday by 5pm submitted via Level 6 Question 1. (10marks) Using your knowledge of statutory interpretation consider whether any of the following ‘sells or hires or offers for sale or hire or gives to any other person – any knife which has a blade which opens automatically by hand pressure applied to a button, spring or other device in or attached to the handle of the knife’ and therefore commits an offence under s1(1) of the Restriction of Offensive Weapons Act 1959: (i) Jane, a youth worker, confiscates a flick knife from a member of her youth club and gives it to her supervisor. (ii) Tony, an antique dealer, displays an old military knife with a spring opening device in his shop window with a price ticket attached to it. (iii) Fola buys an unopened box of kitchen utensils from a car boot sale. Without examining the contents closely she donates the box to a charity shop. The box is found to contain a flick knife. Question 2 (10 marks) Critically analyse the following case and say whether or not you think that the plaintiff will succeed under the tort of negligence: John was the batsman in a cricket match. He hit the ball so hard that it went over the brick wall that surrounded the cricket ground over the road outside and hit Mr Smith, who had just opened the front door of his house. Mr Smith sued the cricket...
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... Objectives: 1. To cite Pros and Cons of the chosen costing system 2. To choose and adapt a new costing method that better manages the cost of Landau Company’s Monthly Income Statement Areas of Consideration: 1. The significant Increase of sales in July over June. 2. Lack of control over long run costs that can bankrupt a company. 3. Landau’s margin on products for the months of June and July. 4. The company is looking for a new approach for internal managerial purposes. Alternative Courses of Action 1. Variable Costing System Pros * Provides benchmark on the profitability of manufactured products * It simplifies the bookkeeping of the company * It helps in establishing a responsible accounting in the company from which it identifies what the costs should be, who are the responsible personnel and whether costs are still under control. * Reduce time consuming efforts of allocating fixed overhead to individual products * Advantageous in making periodic management decision for the use in internal reports * Profit for a period is not affected in the changes in inventories Cons * Variable costing is usually prepared on a monthly basis. The information in the reports may not be used or too insignificant for the next accounting period. * Variable costing cannot produce reliable tax reports or any external reports such as the government. * In variable costing products might be sold in their marginal or usual mark up over variable...
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...Company • North Country Auto is a: Franchised dealer & factory authorized service centre– 3 manufacturers (SAAB, Ford, VW) o Began operations in 1968 o 5 departments (new car sales, used car sales, service, body, and parts) o Situated in upstate NY- pop. 20,000, served two nearby towns of 4,000 people as well as rural areas covering a 20 mile radius • George Liddy & Andrew Jones – equal share ownership in the corporation and involvement in operations (Mr. Jones one of the founders), Mr. Liddy (since 1988)(front end), Mr. Jones (back end)) External Environment – 5 forces – Threat of New Entrants –HIGH/LOW o Proliferation of new entrants o 6 acre lot & 25,000 sq ft facility o Costly to be a franchised dealer - Each manufacturer used a different computer system for tracking inventory and placing new orders and required dealers to maintain an adequate service facility with a crew of trained technicians and spare parts inventory, level of investment per product line, o Fewer than 50% of dealers were expected to make a profit (US) in 1990 o margins to fall below 1% of sales Rivalry among Competitors –HIGH o Aggressive discounting and small margins o depressed sales (vehicles) o Fewer than 50% of dealers were expected to make a profit (US) in 1990 o margins to fall below 1% of sales o multiple franchises common in the 1980s o Industry parts turnover averages 100 days(slow to move) Bargaining Power of Customers – HIGH o More educated consumers o servicing...
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...Ottolino Professor Gudino English 107 B February 20, 2016 Shopping for a used car Like most of us, this area could be very frustrating and a process that could take all day. After all research has been completed, picked out the car you want, now it is time to go to the dealership and make your purchase. When you get there you are most likely greeted by a salesman or women. This is going to be your main person of contact during this process. Car buy is something that you need to stand firm on as the sales person will try to get customer’s to spend the most money possible. Doing so will let the sales person make more money off of the sale as this is where they make all their money. After you find the car that you like, a test drive would be the next step in the process. Test drives is a very important step in the used car buying process. Want to make sure that the car drives smooth with no known problems at the time. When the test drive is completed, this is the part that will make you want to pull your hair out. Talking with the sales person about price is a back and forth battle with the sales person and his/her manager. Like stated above, they want to make the most money possible, so they will always start high and try to close this deal as quick as possible in a blink of an eye. During the research phase, most time has been spent on the internet most of the day to find the car worth buying. After visiting website after website, your brain is most likely...
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...Purchases and the Economy A new car purchase is one that takes a large amount of consideration and budgeting. The most important economic indicators to consider when investing in an automobile purchase are unemployment rates and interest rates. These indicators will assist a person when deciding whether to purchase new or used. Is the right time now or later to purchase a truck? Economic Indicators The automotive sector is a cyclical business. Since it is a cyclical business, changes in the revenues and earnings of automotive companies are more likely due to the state of the economy and the strength of the consumer. Sales in the automotive sector are higher when economic activity is strong and people feel confident about their future economic prospects. In this environment, more people are likely to make an automobile purchase. Clearly, unemployment is a major factor in this environment. People do not feel optimistic about a major purchase when they are unemployed. People without jobs are less likely to have the means to afford a car. Someone with a job is not likely to make a major purchase if he is worried about losing his job. In 2009, the unemployment rate was between 8% and 10%, and auto sales were 9 million on an annualized basis. In March 2015, the unemployment rate was 5.5% and auto sales were 16 million. Interest rates affect the financing costs of purchasing a car; lower interest rates make the car cheaper. It is not enough to defy a...
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...Foodmart Inc., Paper Zelda Anderson, Shaquan Bozeman, Maria Lovell, Lashawda Jones, Ali Gurley BUS/415 March 13, 2012 Professor Michele Riley In scenario one many issues are in question such as whether this contract was legally formed, if the contract was assignable or if the contract was disregard and what the appropriate standards is for the non-breaching party. They need to take a look at the contract and decide if the contract was an acceptance and consideration. After reading the scenario the contract does not show any formation process, it also does not show whether the contract is valid between the two companies. In order for Foodmart to sue Masterpiece construction they must first establish that the contract ever existed. Masterpiece could avoid the liability under the contract by proving that no legal contract was clearly defined. If no contract was formed to where Foodmart accepted the terms then the offer could be different. The facts in this case do not indicate whether the contract between Foodmart and Masterpiece was assignable or not. Even if a contract is held to be non-assignable, most jurisdictions will usual not grant the change of a specific performance. If Foodmart petitioned the court for an injunction and sue Masterpiece for the breach in contract and the specific performance they will lose. Foodmart could win against the case if they sue only under the breach of contract. Masterpiece argues that they had the right to delegate the contract...
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...segment car sales in India and deducing the trends in monthly and yearly sales OVERVIEW The net sales of the passenger car segment in India stood at 2,686,429 units in 2013. Though there was a slump in the past due to the economic slowdown, this sector has started recording growth in the recent past. The car segment in India is spread out over various segments ranging from the compact segment to luxury segment. Key segments include compact, hatchback, sedans, executive cars and SUVs. The sales for these segments are spread both geographically and demographically. The sales is seasonal as well, varying for different times of the year. The purpose of the sale varies as well. It may be for family purpose or for executive purposes. Through this analysis, we are making an attempt to bring out the key factors and data points that affect the sales of cars across segments, areas and seasons. The analysis will be made by using various analytical tools in Microsoft Excel to project the key data points and highlight them. SOURCE The data has been taken from the website http://management-punditz.blogspot.in/ . They have the sales data for all car manufacturers and car models METHODOLOGY 1. Sales trend over the year The variation of sales trend for various segments can be found by plotting the sales in a line graph. 2. Find the most selling cars and manufacturers selling the majority of cars A pareto chart can be plotted for the sales of different manufacturers and cars. This...
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...centers---New Car Sales, Used Car Sales, Service, Parts and Body shop. The bonus of each department manager is based on the departmental gross profit. The analysis using the Porter’s Five Forces Model indicates that the average profitability of vehicle sales industry is low. There are more and more educated customers and increasing number of industry new entrants. Also the industry itself is characterized by high inventories and aggressive discounting. The Major Crisis Facing the Company Recently, one vehicle transaction heighted problems within the new structure and sparked frictions among different profit centers. Although each profit center should maximized its profits, they must not negatively affect other profit centers. Mangers of those profit centers disagreed on the current transfer price among departments and profit and cost allocations. The analysis of exhibit 3 shows that the new car sales department generates the highest sales and gross profit. However, parts department has the highest profit before common expense. Generally speaking, The profit margin is highest in parts department with a profit margin of 12.56% and then followed by body department (profit margin 9.09%) and service department ( profit margin 7.44%). At the same time, the new and used car profit centers only make profit margins of .15% and .45% respectively. Furthermore, current profit allocation results in unfair profit allocation among departments. From the recently car sale transaction...
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...senior management role and not to be involved in the day-to-day operations of the dealership. The profits of the dealership were fundamentally important to Rusty’s future lifestyle. As the founding owner of the dealership in 1968, he had seen the dealership grow to the current sales level of approximately 600 new cars and 600 used cars annually. His service facility has also expanded to 18 service bays. In Rusty’s opinion his long standing policy of emphasizing new car sales as the principle business of the dealership had lead to the growth. He also attributed this to developing the customers and playing close attention to the customer’s needs. Most customers both new and used had returned to the dealership several times to make additional purchases. The latest income statement is shown in the exhibit along with an analysis of the service department expenses. To accomplish semi-retirement Rusty needed to make organizational changes. Talking with his daughter, a recent Laurier MBA graduate, he felt that the profit centre approach would best fit his requirements. Thus the dealership was divided into three profit centres. The new cars sales department was to be run by Sue Me, the used car sales department by Le Mon and the service department by Otto Baun. All of these people had been key players at the dealership for the past ten years. Each manager was told to run their department as if it was an independent business. Under the profit centre approach each manager would...
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...1. Executive Summary Selling online can help your business reach new markets and increase your sales and revenue gains. Those who are interested in selling to other businesses, can use the Internet to find sales leads, announce calls for tender, and to offer products for sale. Searching for products and services online can save time and money by allowing to find the best prices without having to do all the legwork. You can use the Internet to find new suppliers, post buying requests or search for products and services. The benefits of effective B2B e-commerce include lower costs associated with selecting suppliers, establishing prices, ordering, and finalizing transactions. Online trading networks can also be used to support efficient information exchange between buyers and sellers. 2. Business description Mission —The mission of Budget Cars will be to buy and sell a desirable mix of quality used cars, trucks, and vans, and to create a friendly atmosphere where Budget Cars will be known for being your family used car center. 3. Industry analysis Immediately following World War II, there were roughly nine buyers for every new car produced. Sales personnel merely had to find out who could afford a new car. "Afford" was defined as paying cash. This condition existed until the early 1950s when supply began to discover that some new terms were creeping into the retail salesperson's vocabulary. Words like "overallowance," "discount," "deal," and "terms." The...
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