No doubt the Cash for Clunkers or CARS program has been successful at driving customers to our dealerships. It has been great to see increased traffic and particularly increased sales. In fact at our current pace we would have our largest new vehicle sales month by almost 200% and would be close to out of inventory by the end of the month.
Despite the great success of the program I am not sure if it is a blessing or a curse. Currently we have not been paid on a single Cash for Clunker voucher that we have submitted. Not only is the process to get our money time consuming and at certain points absurdly inefficient but the payment process has been worse. Just today it took over an hour holding on the phone to learn that some of our submissions were rejected due to a government computer error and they would have to be resubmitted and put back at the end of the line for payment. Despite not being paid by the government and having over $100,000 in receivables we continue to give customers what the government says is their money in hopes that we the dealer will be reimbursed in the future. I guess at this point all I can do is cross my fingers and hope the Obama administration holds true to their word.
Denver's Premier VW Dealer
7/25/09
NPR interviews Emich for Cash for Clunkers story
Click below to hear the NPR interview with Fred Emich IV on the new Cash for Clunkers or CARS incentive that the Federal Government is running.
http://www.npr.org/templates/story/story.php?storyId=106936163
http://www.npr.org/templates/story/story.php?storyId=106936163
7/10/09
Facebook page and crazy commercial launch
Come see our new facebook page at:
http://www.facebook.com/home.php#/pages/Denver-CO/Emich-Volkswagen-VW/108224100619?ref=ts
Current TV Commercial:
http://www.facebook.com/home.php#/pages/Denver-CO/Emich-Volkswagen-VW/108224100619?ref=ts
Current TV Commercial:
Great June!
Congratulations to all departments for exceeding their forecasts for the month of June. Special thanks goes out to Service for being in the top 25% in the nation for Customer Satisfaction. Parts was the 14th largest purchaser of VW Parts in the Nation last month! Currently we are ranked as the 17th largest Certified Pre-Loved VW dealership in the nation, and we were once again 1st in new VW sales in the tri-state region. Thanks for the all the hard work and dedication. You all are greatly appreciated!
7/8/09
Cash for Clunkers
Cash for Clunkers or CARS (Car Allowance Rebate System) as the government calls it started July 1st, however the government has until July 24th to create all the rules. With that said Emich VW has chosen to honor CARS rebates as long as the trade-in vehicles qualify under the current rules and have all the supporting documentation.
Basic rules to qualify for a CARS rebate
1) Current vehicle has a combined fuel rating of 18 MPG or less. Go to www.fueleconomy.gov to find out what your vehicle gets.
2) Vehicle is in drivable condition.
3) The vehicle has been owned for at least 1 year
4) The vehicle has been insured for at least 1 year
5) To get a $3500 rebate you must improve your gas mileage by at least 4 MPG if you purchase a car and at least 2 MPG if you purchase a light truck or SUV.
6) To get a $4500 rebate you must improve your gas mileage by at least 10 MPG if you purchase a car and at least 5 MPG if you purchase a light truck or SUV.
What that means if you are buying a VW:
All Volkswagen cars qualify under the program except CC's with the 3.6L V6 engine.
For SUV's the Tiguan, Routan with 4.0L engine, and TDI Touareg qualify (Unsure if all TDI Touaregs will qualify based on $45,000 Max MSRP)
Best cars to buy under the program:
All qualifying trade-in vehicles qualify for the $4500 rebate if you purchase a new Jetta or Jetta Sportwagen TDI, plus you are eligible for a $1,300 tax rebate.
If your current vehicle gets 16 MPG or less it may qualify for the $4500 rebate if you purchase a Tiguan.
Basic rules to qualify for a CARS rebate
1) Current vehicle has a combined fuel rating of 18 MPG or less. Go to www.fueleconomy.gov to find out what your vehicle gets.
2) Vehicle is in drivable condition.
3) The vehicle has been owned for at least 1 year
4) The vehicle has been insured for at least 1 year
5) To get a $3500 rebate you must improve your gas mileage by at least 4 MPG if you purchase a car and at least 2 MPG if you purchase a light truck or SUV.
6) To get a $4500 rebate you must improve your gas mileage by at least 10 MPG if you purchase a car and at least 5 MPG if you purchase a light truck or SUV.
What that means if you are buying a VW:
All Volkswagen cars qualify under the program except CC's with the 3.6L V6 engine.
For SUV's the Tiguan, Routan with 4.0L engine, and TDI Touareg qualify (Unsure if all TDI Touaregs will qualify based on $45,000 Max MSRP)
Best cars to buy under the program:
All qualifying trade-in vehicles qualify for the $4500 rebate if you purchase a new Jetta or Jetta Sportwagen TDI, plus you are eligible for a $1,300 tax rebate.
If your current vehicle gets 16 MPG or less it may qualify for the $4500 rebate if you purchase a Tiguan.
6/16/09
Great May!
Thanks teams for making May our most profitable month ever. It shows you want can be accomplished if you keep your head down and ignore this so-called economic crisis.
I would like to particularly congratulate the Parts Department for being the 3rd largest purchaser of parts in the Western Region. I would also like to congratulate the the Sales Department for being the 5th largest Certified Pre-Loved VW store in the Western Region.
I would like to particularly congratulate the Parts Department for being the 3rd largest purchaser of parts in the Western Region. I would also like to congratulate the the Sales Department for being the 5th largest Certified Pre-Loved VW store in the Western Region.
VW continues to weather the storm thru May
In May Volkwagens was down only 12.4% versus last year. YTD they have only declined 15.5% year over year. VW has outperformed the industry which was down 33.7% in May and is down 36.5% YTD.
With all the uncertainty in the market place along with the new models VW is offering such as the CC and Tiguan now is a great time to considering owning a VW.
With all the uncertainty in the market place along with the new models VW is offering such as the CC and Tiguan now is a great time to considering owning a VW.
5/29/09
My father on Fox News
Click on the link below to see Fred Emich III on Fox News. His interview is about 30 minutes in for about 10 minutes. We should know next week what is in store for GM. Stay posted.
http://www.foxbusiness.com/video/index.html?playerId=videolandingpage&streamingFormat=FLASH&referralObject=5421709&referralPlaylistId=1292d14d0e3afdcf0b31500afefb92724c08f046
http://www.foxbusiness.com/video/index.html?playerId=videolandingpage&streamingFormat=FLASH&referralObject=5421709&referralPlaylistId=1292d14d0e3afdcf0b31500afefb92724c08f046
5/16/09
Shockwaves hit Chrysler dealers
On Thursday 789 Chrysler Dealers learned their fate. By UPS mail Chrysler dealers were notified if their dealer agreement was terminated. Those 789 dealers that learned that Chrysler was closing them got news that their operations would be shut down my June 9th. This leaves them with less than four weeks to get rid of vehicle and parts inventory that Chrysler will not be buying back.
This rapid liquidation of dealership is going to send shockwaves through the economy and vehicle markets. Our dealership employees about 70 people and is considered mid sized. I think it is safe to say that 40,000 people lost their jobs on Thursday. I would imagine Chrysler's news coupled with GM's closure announcements mean that the US will see double digit unemployment. I don't see how this is a good scenario in our current economy.
I am predicting that Chrysler vehicle values will fall drastically in the coming months. Why? Because 789 dealerships need to liquidate their inventory in a very, very short period. Those who are not well capitalized will fail early and the creditors will liquidate these vehicles at auctions in masses. By not retailing these new and used vehicles the wholesale market will be flooded with inventory and hence values will drop dramatically.
Buyer beware if you think you are going to get a great deal from a closing Chrysler dealer. The deal might look good now, but the value of these vehicles can only dramatically drop going forward.
Link to list of Chrysler Terminations:
http://wlox.images.worldnow.com/images/incoming/DealershipsExhibitA.pdf
This rapid liquidation of dealership is going to send shockwaves through the economy and vehicle markets. Our dealership employees about 70 people and is considered mid sized. I think it is safe to say that 40,000 people lost their jobs on Thursday. I would imagine Chrysler's news coupled with GM's closure announcements mean that the US will see double digit unemployment. I don't see how this is a good scenario in our current economy.
I am predicting that Chrysler vehicle values will fall drastically in the coming months. Why? Because 789 dealerships need to liquidate their inventory in a very, very short period. Those who are not well capitalized will fail early and the creditors will liquidate these vehicles at auctions in masses. By not retailing these new and used vehicles the wholesale market will be flooded with inventory and hence values will drop dramatically.
Buyer beware if you think you are going to get a great deal from a closing Chrysler dealer. The deal might look good now, but the value of these vehicles can only dramatically drop going forward.
Link to list of Chrysler Terminations:
http://wlox.images.worldnow.com/images/incoming/DealershipsExhibitA.pdf
Emich Chevy Continues...
I am proud to announce that Emich Chevrolet did not receive a letter from General Motors yesterday terminating their dealer agreement. Our store will continue servicing Denver!!!
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