Tag: Auto

What To Do When Selecting An Auto Transport Service

What To Do When Selecting An Auto Transport Service

Are you looking to find the best auto transport service? Well, if you are, then you should know that there are various important things that you will have to focus on. Make sure that you are exploring your options and focusing on the things that will help you in the perfect way. If you are not sure how you can select the perfect auto transport service, then you are in good hands. There are various important things that you will have to keep in mind so you can manage things efficiently.

Make sure that you are exploring your options and focusing on the details that will help you in the right way. We will be discussing all the important things that you will have to focus on so you can choose the best auto transport service out there. Let’s have a look at how you can manage things in the right way.

Compare Different Services

The first thing that you will have to do is to compare different services. If you are not comparing different services, then you won’t be able to make things easier and better for yourself. It is always necessary for you to compare different services so you can make things easier and better for yourself. It is always necessary for you to go through the details that will allow you to manage things efficiently. By paying close attention to every single detail that matters the most, picking your auto transport service will become a lot easy. Make sure that you are comparing rates online so you can avoid all the problems later on.

 

Get Multiple Quotations

The next thing that you will have to do is to get multiple quotations. If you are getting multiple quotations, then you will be able to make things a lot easier and better for yourself. It is always necessary for you to get in touch with different auto transport services out there so you can make things a lot easier and better for yourself.

Look For Value Addition

The next thing that you will have to do is to look for value addition. Make sure that you are looking for value addition so you don’t have to face any problems that you are facing. Make sure that you are exploring your options and focusing on the things that will help you in the perfect way. These are the things that you need to focus on so you can handle things efficiently.

Categories: AUTOMOTIVE

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Reducing Exposure By Lenders Leads To Auto Blues Due To Rise In Auto Debts Defaults

Reducing Exposure By Lenders Leads To Auto Blues Due To Rise In Auto Debts Defaults

The recent reduction in exposure by the auto finance companies seems to have increased the auto debt blues by a significant extent.All these make the situation much more difficult, if not worse for the dealers.

  • It is seen that banks as well as alternate sources of lending are now more cautious while they loan out money to the borrowers as well as the dealers. This change in business policy comes as a result of the rise in defaults of the credit extended to the dealerships.
  • In addition to that, it is also seen that the traditional banks and other financial organization are now seeking higher collateral for lending money to the dealers for inventory funding. At times they even want collateral as high as 100% of the loan amount.

Top money lenders have faced an increased number of such defaults over the last two financial years. This has also resulted in a potentialdelay in the recovery as well in this sector which is already struggling due to the weak demand.

The liquidity crunch

The reduction in exposure by the lending institutions has led to a crunch in the liquidity especially at the Non-Banking Financial Companies or NBFCs. Both public and private sector banks have also reduced their lending to the automobile dealers as a result of the dramatic fall in the sales of cars that has sent them reeling under default loans.

  • This has resulted in the mounting bad debts in the auto sector forcing the banks, even the leading ones, to seek high amount of collateral for a loan, often as high as 100%.
  • Another significant reason for the liquidity crunch is the change in bleak outlook of the automobile manufacturers that has also made the banks and financial institutions to be extremely cautious while extending fresh loans to the dealers.

Moreover, the banks now seem to assess each loan application on a case to case basis making it all the more difficult for a few manufacturers to get credit. This tightening of lending policy and terms comes at a time when the NBFCs have already held back fresh lending to the dealers due to the limited liquidity in their systems.

Since banks and financial institutions cannot look for alternative relief just as the consumers can at different sites such as National DebtRelief.com and other, at the most what they can do is regulate their lending policies.

The current scenario

The present scenario of auto debts has reached to such an alarming state that the banks and other traditional financial institutions have ceased to accept letters of comfort from the OEMs or Original Equipment Manufacturers even. Previously, it was easy to get a credit using such letters of confirmation as that was enough to suffice the requirements of the traditional banks. This is a recent development that has affected the entire auto industry.

  • Now the dealers who previously used such bank loans typically to purchase stocks from the automobile manufacturers now find it difficult to do so.
  • This crunch of funds in the hands of the dealers mean there will be less stock in hand and therefore it will hit the auto sales overall in the domestic market.
  • Low sales volumes and high cost of maintenance of showrooms, staffs, ads and marketing have resulted in stressed balance sheets.
  • With low sales turnover and profit this has eventually forced a multiple auto showrooms, including several showrooms that sell some of the major car models and brands, to roll their shutters down.

This is the scene across the country as the auto industry operates on a national scale and few even operate in a global scale.

Considering the perspective of dealers

The fact that banks and financial institutions including NBFCs have reduced credit to the dealers being overcautious can also be blamed on the different activities of the dealers. It is these activities that are unplanned and improper that resulted in such a huge number of defaults.

  • Most of them were more interested in investing on shortterm loans for purchasing longterm assets such as real estate for showrooms
  • They also invested in activities and businesses that are not related to their primary business, auto sales.As a result they have defaulted on their loans.

However, the dealers are not to be blamed 100% for such results. It is found that most of the dealers most of the times are under immense pressure from the car manufacturers make more investment. In the process, they take out more credit than their ability to repay because the sales volume remains at a low point.

In addition to that, the 100% collateral requirement by the banks now has made them stand in the middle of nowhere not having any suitable options available to them.

Availability of liquidity

The constriction of the credit norms by the banks have not only affected the auto dealers in a negative way but has also affected the final outcome of the banks as well. This is because this strict requirement goes beyond drop in sales of cars in the recent times as a result of which hundreds of dealers have closed down their shops.

Such a policy followed by the banks has resulted in the scarcity of overall liquidity which is typically the marker for the banking system. As a result, even the banks are facing the wrath of liquidity crisis.

Role of the banks questioned

Considering the entire scenario of the auto lending market, the role of the banks are also questioned by the industry experts. They say that banks have extendedmore credit in the past because the automarket was doing quite well. However, the collapse of a few NBFCs has prompted them to tighten their credit norms all of a sudden.

  • This means that the number of bad loans has increased because it simply has from one sector to another.
  • This has also compelled the dealers who are financially healthy generate the required cash internally.

Well, in this time, the need is to reduce stocks by automanufacturers and not credit.

Categories: AUTOMOTIVE

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Auto Finance Value Chain And Transition For Future

Auto Finance Value Chain And Transition For Future

Future is what every business look at right from the start and the auto lending companies are no different from this universal business principle. Therefore, the auto lending market of today needs to look beyond 2019 in order to sustain in the future, which the experts anticipate to change dramatically which may even result in the volume of business shrinking for the auto financing companies.

However, all is not so bad even if this is the stage where the concept of mobility is sure to change in the future. There are ways in which the auto financing companies, the traditional ones as well as the other sources such as Liberty Lending and its likes can prepare for the future of mobility.

There is one thing that needs to be followed and kept in mind at this stage. This is the fact that the transition from today’s state to the future state of mobility will not happen linearly or uniformly. This is because the needs for mobility may vary depending on different factors such as:

  • With the demography
  • With the geography
  • With the available technology and
  • With the social attitudes.

All of the above will progress unevenly and the different stages of mobility will likely to exist concurrently in the foreseeable future.

That means the stakeholders need to prepare themselves according to the prevailing market situations so that they are ready to operate in a multifaceted as well as in a much more complexmobility ecosystem in the near future.

Auto finance value chain

There are a few specific and rudimentary steps of the auto finance value chain that even after all the turmoilwill persist in the future of mobility. In this situation:

  • Loans and leases will still need to be underwritten, originated, and sold
  • Assets will require being disposed of and the
  • The finance products will need a dramatic change as anticipated in the future of mobility.

The financial services industry is as it is huge and sophisticated. In addition to that, with the beginning of marketplace lending as well as other disruptive trends it has become increasingly innovative and dynamic. With such features of the lending market it is required to execute each one of those steps to create the best products that will meet the needs of the customers. In such a situation there is a high chance that several auto finance companies will deviate from their capabilities significantly. These finance companies will need to:

  • Determine the particular segment or segments they want to service in the future mobility ecosystem
  • Evaluate their existing practices and current operations
  • Make the necessary amendments in their policies to enhance or alter their functional capabilitiesand
  • Determine and identify all those resources and new skills that they will need to compete with successfully.

All these will help the auto financing companies in the future of mobility bring about the necessary changes that will in turn help them in many different ways such as:

Auto

  • Rebalancing their business
  • Ramping up their associated capabilities
  • Dialing back investments in consumer markets
  • Increasing their returns and profits.

All these indicates that there is a significant need to put in extra effort by the different auto finance players at different levels of mobility, especially those into commercial auto lending.

On the other hand, if the large and diversified banks are concerned it may be much easier for them as they will simply have to shift their business from one specific division such as auto lendingto another for that matter such as equipment lending.

However, for the captives, they will need to be focused heavily on consumerbased auto lending and leasing. For them especially, the need for making such transformative changes will be greater. This is because they need to explore an entirely new business area and models. This will affect their capabilities that are needed for commercial finance.

The sales aspect

Sales happen to be the first significant step in the auto finance value chain. This will need the auto finance companies to find and connectwith those specific customers who need money to buy a car. Today, this connection is established indirectly through dealerships as more than 80% of cars are financed in this way through a dealer.

When it comes to captives’ relationships with OEMs and dealers it is considered that:

  • These are critical for access to the customers or for the purpose of loan or lease subvention.
  • Such indirect relationships as well as the ability to influence customer loyalty towards a specific carmakerare two most unique sources of strength for the captives.
  • These important foundations will continue to provide them with a competitive advantage in the lending market for the personally owned vehicles irrespective of it being autonomous or driver driven.

All these will remain significant for the captives even as the auto retailers and dealers adjust their own business prototypes to the future of mobility.

Shared vehicles in future states

Lastly, the auto finance value chain must consider the shared vehicles in future states 2 and 4 to recreate or refurbish their financing model. They will need to focus on Business toBusinessor B2B model and approximate more closely the rental car fleet of today.

However, if they wish they can simply shift to the equipment financing markets as well such as:

  • Construction
  • Machinery
  • Trucking or
  • Office equipment.

Typically, sales in the lending market whether it is for auto, equipment, home or any other are driven by the level of individual relationships established and maintained between the financer and the commercial customer. The financier here can be a typicalcommercial bank or any specialty money lender such as a fleet finance company.

In auto finance however, most of it is a dealer-centric approach or the more frequent ‘Feet on the street’ approach which is typically a direct sales approach. Several financial institutions provide a dedicated sales manager for their larger business customers.

No matter whatever is the approach, staying updated with the changes in the market and customer behavior is the key to success in auto financing.

Categories: AUTO INSURANCE

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4 Vital Environmental Benefits Of Car Removal By Auto Wrecking

4 Vital Environmental Benefits Of Car Removal By Auto Wrecking

There are a lot of things which are contributing to the environment in a much more negative way. So it is your responsibility as a good citizen to play your part much more positively. You need to begin with your car and think of ways where you can dispose of it in a much safer way. The most popular way is to get the car to an auto wrecker who could get you a great estimate. If you are wondering who auto wreckers are then they are responsible for taking your old cars in order to retrieve valuable parts from them. This is a whole profitable business for both the parties and this benefit the environment as well. If you are wondering how those old parts of the car are made valuable for reusing then these salvage parts basically undergo a process where they are tested and cleaned. The performance of the used parts is also taken account. You will be happy to receive a decent sum of money in that exchange. Without realizing you will be actually contributing to the environment. This article will expound in a much more detailed way that how you can actually help the environment.

Used car wreckers cause less manufacturing

You will not agree more that the manufacturing process is not that easy. It needs the utilization of so many resources. It will need money, energy, and raw materials. If you are wondering that what these inputs have to do with the environment then they are directly taken from it and this often leads to a great amount of exploitation. For instance, new manufacturing of the car will require the extraction of metal. This requires an extensive mining process. The mining task is not a piece of cake instead it really requires huge capital, fuel along with heavy machinery. Instead of dealing with this whole new process, recycling by used car wreckers is a much more convenient option if seen from the benefit of the environment. Reselling the car parts will to a great extent reduce a great need for manufacturing car parts from scratch. The mining operations will get reduced as one is heading towards a much more environmentally friendly option.

Auto Wrecking

Minimize carbon emissions

If you really care about the disruption manufacturing can cause to the environment then go for this option which can surely minimize the carbon emissions.

Help save environmental space

If you are willing to get rid of your unwanted car which is taking up the space of your garage then used car wreckers is the best option to consider.

Auto Wrecking

Suitable disposal by used car wreckers

You need to realize that car constitutes several harmful elements which need a process or a proper disposal way in order to maintain the safety of the environment. The ac system and lead acid, engine oil, and all such materials needs are properly disposed of by used car wreckers. An auto wrecker is a professional who is professional is all such disposal methods. One gets the safe removal by minimizing the carbon emission during the process.

Categories: AUTOMOTIVE

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