Credit Crunch, Falling Home Prices Diminish Auto Sales in 2009, Says NADA Economist

NADA Used Car Guide Analyst Cites Economic, Industry Performance as Key Factors in 2009 Used Vehicle Outlook

NEW ORLEANS, Jan. 25 /PRNewswire-USNewswire/ — U.S. light-vehicle sales will reach just short of 13 million units in 2009, but enhanced availability of credit for customers and dealerships should strengthen sales over the year, says Paul Taylor, chief economist for the National Automobile Dealers Association.

“The economy should improve slightly and in the third quarter of 2009 start to see positive economic growth to help reach sales of at least 12.7 million units of light vehicles,” Taylor said.

Speaking at the NADA Convention & Exposition in New Orleans, Taylor reported that falling home values in 22 states are related to a decline in new-vehicle registrations. The four states with the highest year-to-date residential real estate price declines — Nevada, California, Florida and Arizona — have among the highest percentage drops in new-car registrations, according to Polk data, Taylor said.

“Home prices must stop falling in 22 problem states for car sales to improve there,” Taylor said.

Bankers must also increase lending to customers and dealerships for sales to rebound, Taylor said. Recent credit developments, including the expansion of the Term Asset-backed Securities Loan Facility (TALF) and the establishment of GMAC as a bank holding company, will help restore securitized dealership floorplan financing.

Small Business Administration lending for working capital for smaller dealerships will help support sales as well, Taylor said.

Beyond falling home values, previously higher gasoline prices caused a nationwide inventory of too few small cars in the summer, which affected dealership sales, Taylor said. Slower economic growth in the United States and the rest of the world has led to declines in U.S. exports as well.

Taylor, who has earned a reputation as a careful and insightful U.S. economist, expects peak unemployment of more than 8 percent in 2010, even as economic growth resumes.

All major categories of light-vehicle sales fell in 2008.

Small car sales tend to follow gasoline prices, and dropped as gasoline fell below $2 per gallon from levels of more than $4 per gallon in the summer of 2008.

New crossover utility vehicle sales fell in 2008 for the first time in more than 10 years.

Used-Vehicle Market Update and Outlook

Terrence W. Wynne, director of editorial services for NADA Used Car Guide, reported that 2008 average used-vehicle prices declined for every market segment, according to AuctionNet data released by NADA.

Wynne said market volatility is likely to continue to be a key factor in 2009, in light of continuing concern about the economy and the state of the auto industry.

“The past year was characterized by extreme volatility in used-vehicle prices and economic uncertainty,” Wynne said. “The degree and direction of price movements will be influenced by how the economy and this industry perform.”

Wynne also noted that gas prices will remain a major influence in used-vehicle pricing patterns, with lower gasoline prices serving to lift used trucks and SUV prices.

NADA, founded in 1917 and based in McLean, Va., represents about 19,700 new car and truck dealers holding more than 40,000 separate franchises, both domestic and international.

Reynolds’ New AutoCheck(R) Plus Solution Helps Dealerships Meet Consumer Need for Used Vehicle History Information

AutoCheck Plus Provides Vehicle History Report Information From Within the ERA DMS

DAYTON, Ohio, Jan. 25 /PRNewswire/ — The Reynolds and Reynolds Company today announced continued early success with its new AutoCheck(R) Plus solution for the ERA(R) dealership management system (DMS). AutoCheck Plus, which was introduced in late 2008, is helping automotive retailers effectively and efficiently meet consumers’ demand for vehicle history information prior to their purchasing a used vehicle. Vehicle history reports have proven to be an important tool in helping provide consumers with the information they need to feel more comfortable with their buying decision and their satisfaction with their purchase experience with the dealership.

AutoCheck Plus provides dealerships with seamless integration between the Reynolds ERA DMS and AutoCheck(R) vehicle history reports from Experian Automotive. The vehicle history reports are available from a number of ERA screens and dealers may choose to share this information with consumers directly from the DMS screens or in printed reports. In addition, AutoCheck Plus can be added to a dealer’s Web site for direct consumer access.

“The AutoCheck Plus solution has become an important part of our used vehicle sales operation,” said Brian Seufert, business development director for Blossom Chevrolet Inc. in Indianapolis, Ind. “Because we’ve opted to display a link to the AutoCheck Plus information alongside our used vehicle inventory on our Web site, potential customers have direct access to vehicle history report information when researching online. This has helped increase our credibility with potential customers and their willingness to contact our dealership for more information about a vehicle.”

Seufert continued, “Our sales team also likes that the AutoCheck Plus information is readily available to them for any vehicle in our inventory without them having to re-key information or switch to another system. This makes it easier to share vehicle history information with customers in the showroom, which can also lead to increased credibility for our dealership and satisfaction for our customers.”

AutoCheck Plus allows dealerships and consumers to review valuable information on a vehicle’s history, including possible undisclosed or unknown problems such as title brand records, prior accident history, or odometer issues — all of which can influence an automobile’s safety and resale value. AutoCheck Plus reports also include the industry’s only vehicle history score, the AutoCheck Score(SM), which provides a quick and easy way to understand a vehicle’s past and compare it to similar vehicles. This unique feature can lower the risk of buying and selling a vehicle with undetected problems and further increase confidence among consumers.

About Reynolds

Reynolds and Reynolds is the automotive industry’s largest and most trusted provider of automobile dealership software, services, and forms to help dealerships improve business results. The company is headquartered in Dayton, Ohio, with major operations in Houston and College Station, Texas, and Celina, Ohio. (www.reyrey.com)

Automated Rates and Residuals Now Available Nationwide for Reynolds’ Desking Solution

Seamless integration allows faster flow of information on one system

DAYTON, Ohio, Jan. 25 /PRNewswire/ — Reynolds and Reynolds announced today the nationwide availability of its new Automated Rates and Residuals software application, which can be added to Reynolds’ Desking product for the ERA(R) dealership management system (DMS). Automated Rates and Residuals provides greater flexibility for automotive dealers, offering them a number of key business benefits all while staying within their ERA system.

Using a graphical user interface (GUI) that is fully integrated with the ERA system, Reynolds’ Desking solution helps streamline the vehicle purchase negotiation process for dealerships and their customers. Automated Rates and Residuals helps dealerships conveniently access more detailed financing data that influences customer and lender acceptance of financing, as well as dealership profitability, consistently leading to a better buyer experience with better results for the dealership.

Automated Rates and Residuals automatically analyzes vehicle deals based on lender, vehicle, and credit score combinations. From there, payment scenarios can be ranked based on rates, money factors, residuals, and program parameters.

The seamless integration of Automated Rates and Residuals with Desking also can eliminate the need for manual analysis of complex lender rate sheets and residuals guidebooks, as well as the many issues that arise from using third-party tools, such as having to navigate between multiple systems, re-key data, and deal with mismatched payment amounts.

All of this can help the dealership save time, increase close ratios, and optimize profit opportunities.

“Real-time DMS application integration is critical for dealerships to save time with their customers and to operate more efficiently,” said Jon Strawsburg, vice president of Product Planning at Reynolds. “That’s exactly what we’re offering with Automated Rates and Residuals — a way for our dealers to improve the customer’s experience and make the best deals for the consumer and for their business — all at the same time. It’s one more way we deliver on our commitment to make business better for every dealership.”

About Reynolds

Reynolds and Reynolds is the automotive industry’s largest and most trusted provider of automobile dealership software, services, and forms to help dealerships improve business results. The company is headquartered in Dayton, Ohio, with major operations in Houston and College Station, Texas, and Celina, Ohio. (www.reyrey.com)

Reynolds and Reynolds Introduces Computer Assisted Instruction (CAI) to its ERA(R) Dealership Management System (DMS)

DAYTON, Ohio, Jan. 25 /PRNewswire/ — Reynolds and Reynolds announced
today the integration of Computer Assisted Instruction into its ERA(R)
dealership management system (DMS). CAI is a proven method for training
dealership personnel to aid in better utilization of the DMS, which typically
translates into higher productivity and customer satisfaction for dealerships.

“Most dealerships, regardless of what DMS they are using, recognize the
opportunity to improve how their employees use the DMS in order to get more
out of it for their business,” said Jon Strawsburg, vice president, Product
Planning, at Reynolds and Reynolds. “This is especially true in hiring and
training new employees and in training all employees on new software releases.
Computer Assisted Instruction offers ERA users a proven solution to both
problems and helps dealerships gain more benefit, more consistently from their
technology investment in the DMS.”

CAI, which is optional for ERA dealers, provides them with access to
no-cost training in an initial library of more than 100 self-paced courses in
ERA, each course tailored to specific roles in the dealership. The courses
can be taken any time from any ERA workstation in the dealership. Plus, with
every new ERA software release, CAI courses help employees learn about the
latest DMS enhancements.

“Getting the fullest benefit from new technologies is, after all, why the
investments are made by our customers in the first place,” Strawsburg said.
“CAI is a solution to help deliver that benefit.”

As dealerships continue to look for ways to improve productivity and the
effectiveness of their employees, CAI offers a far easier and inexpensive
approach to training. By using CAI, dealerships can eliminate the need to
develop their own DMS training materials or tie up more experienced employees
or managers to handle time consuming one-on-one training. Plus, CAI provides
a record of training assigned and completed for each employee, giving managers
confirmation of whether employees have learned the DMS knowledge and skills
necessary to complete their jobs.

For more information, see the NADA section on the company’s Web site,
http://www.reyrey.com .

About Reynolds

Reynolds and Reynolds is the automotive industry’s largest and most
trusted provider of automobile dealership software, services, and forms to
help dealerships improve business results. The company is headquartered in
Dayton, Ohio, with major operations in Houston and College Station, Texas, and
Celina, Ohio. (http://www.reyrey.com)

Reynolds Displays General Manager Exception Reporting for ERA(R) at NADA Show

DAYTON, Ohio, Jan. 25 /PRNewswire/ — The Reynolds and Reynolds Company, a
leading provider of software, services, and document solutions for automotive
retailers, introduced its new General Manager Exception Reporting solution for
the ERA(R) dealership management system (DMS) during the 2009 National
Automobile Dealers Association (NADA) Convention in New Orleans, La. This
tool enables dealership management to monitor more than 60 critical business
“exceptions” in their operations. Exceptions include those performance
metrics that fall outside acceptable levels for the dealership. ERA General
Manager Exception Reporting helps dealership decision-makers save time sifting
through and analyzing data in the DMS so they can move more swiftly to resolve
potential problems and profit leaks.

“Dealership managers consistently have told us that they need better ways
to review the data in their DMS to more promptly identify areas in their
business that are not performing at optimum levels,” said Jon Strawsburg, vice
president of Product Planning for Reynolds. “ERA General Manager Exception
Reporting allows them to significantly reduce the time they spend analyzing
DMS data and helps enable them to view more useful and relevant information to
make more timely decisions about critical factors impacting their operations.”

Exception reports are available for a number of dealership departments,
including Accounting, Sales, F&I, Parts, and Service. Additionally, a summary
report spanning multiple dealership areas provides a broad view into the
dealership’s business.

A key feature of the solution is the ability for dealership management to
define their preferences and establish guidelines and variance levels for the
reported business exceptions. This allows them to tailor the solution to
their needs and identify the key metrics they believe help their dealership
achieve better business results.

About Reynolds

Reynolds and Reynolds is the automotive industry’s largest and most
trusted provider of automobile dealership software, services, and forms to
help dealerships improve business results. The company is headquartered in
Dayton, Ohio, with major operations in Houston and College Station, Texas, and
Celina, Ohio. (http://www.reyrey.com)

Reynolds Unveils New Solutions at 2009 NADA Convention To Help Dealerships Improve Operational Effectiveness and Profitability

DAYTON, Ohio, Jan. 25 /PRNewswire/ — The Reynolds and Reynolds Company, a
leading provider of software and services to automotive retailers, unveiled a
number of its newest solutions at the 2009 National Automobile Dealers
Association (NADA) Convention in New Orleans, La. The new solutions included
applications and services for the Reynolds ERA(R) and POWER dealership
management systems (DMS), as well as several new products that work with any
DMS. The latest generation of products and services from Reynolds is aimed at
helping dealerships improve operating effectiveness and profitability, and
reach more customers, more consistently, with better results.

“As our new applications help demonstrate, Reynolds truly is hitting its
stride in software development,” said Trey Hiers, vice president, Corporate
Marketing, at Reynolds. “We’re seeing our development expertise deliver a
steady stream of new solutions — and enhancements to our current solutions –
aimed at improving dealership operations and profits. Our focus at Reynolds
always has been to help dealerships make their business better — day after
day, month after month, year after year. That’s never been more important
than it is today in the current economic and industry crisis.”

Below are key products featured at the NADA Convention:

— Search Engine Ad Management, a new service to help dealers
allocate — and track — their online search engine advertising dollars in the
most efficient manner possible.

— The new ERA General Manager Exception Reporting solution that enables
dealership management to monitor more than 60 critical business “exceptions”
in their operations and quickly move to resolve potential problems and profit
leaks.

— A new Automated Rates and Residuals application now available
nationwide for dealerships using the ERA Desking solution. Automated Rates
and Residuals gives dealerships the ability to better analyze vehicle deals
and payment scenarios based on a number of factors that influence customer
acceptance of financing and dealership profitability.

— Reynolds Integrated Telephone System, a fully-managed telephony
solution specifically designed for the automotive retail market. Reynolds
Integrated Telephone System integrates with the Reynolds ERA and Contact
Management solutions and brings together the dealership’s voice and data
networks to help dealerships increase productivity and improve customer
satisfaction.

— The new AutoCheck(R) Plus solution for ERA, which helps dealerships
effectively and efficiently meet consumers’ demand for vehicle history
information prior to their purchasing a used vehicle.

— Computer Assisted Instruction for ERA, which enables dealership
personnel to more quickly and systematically gain the most business and
productivity benefits from the DMS.

— For POWER Workstation, Reynolds demonstrated enhancements that include
Used Vehicle Management, new Service Pricing Guide data and maintenance
methods, CRM capabilities for the service department, and at-a-glance
dashboard functionality for the Management Accounting home page.

“NADA always is an exciting time and a showcase for what’s new from a lot
of companies,” Hiers concluded. “The difference in Reynolds’ applications is
that we can demonstrate an impressive Return on Investment to our customers.
And that’s something that interests every automotive retailer.”

For more information about Reynolds and its solutions and services for
automotive retailers, visit http://www.reyrey.com

About Reynolds

Reynolds and Reynolds is the automotive industry’s largest and most
trusted provider of automobile dealership software, services, and forms to
help dealerships improve business results. The company is headquartered in
Dayton, Ohio, with major operations in Houston and College Station, Texas, and
Celina, Ohio. (http://www.reyrey.com)

FirstLook Signs Agreement to Integrate Polk Vehicle Statistics into 360 Degree Retail Performance System

Sophisticated Market Intelligence Provides Ability to Pinpoint Dealer Stocking Needs

CHICAGO, Jan. 25 /PRNewswire/ — FirstLook, the pioneer in automotive retail performance software solutions, today announced the integration of Polk’s comprehensive automotive vehicle statistics into their 360 Degree Retail Performance System. FirstLook’s Market Performers, powered by Polk, is the only offering of its kind in the retail performance space.

Under the terms of the agreement, FirstLook’s Market Performers will enable customers to pinpoint or micro-target areas where sales are strong and identify areas that need more attention based on specific ZIP codes. With this data in hand, dealers will be better enabled to plan and stock the right inventory levels at all times and take advantage of market conditions.

“By incorporating Polk’s vehicle statistics into our system, we are making it easy for dealers to understand what cars are hot in their market,” said Pat Ryan, CEO of FirstLook. “The Polk data provides our customers with the ability to micro-target by ZIP code, pinpointing exactly which cars are selling in their specific market, giving them a tremendous advantage.”

Polk offers a complete statistical view of all vehicle transactions in a designated dealer area, thereby allowing FirstLook customers to maximize their inventory management for optimal stocking and inventory turns.

FirstLook Market Performers, powered by Polk, is available to all FirstLook customers. The product will debut at the 2009 NADA conference in New Orleans, Louisiana on January 24-27.

About FirstLook

FirstLook, by INCISENT Technologies, is the pioneer in Automotive Retail Performance Solutions and the #1 fastest-growing automotive related company in the United States, according to the Inc Magazine’s prestigious 2008 INC 500 list of fastest-growing private companies in the U.S. FirstLook provides industry-leading tools to manage Pre-Owned Operations, Internet Marketing and Retail Performance Training & Best Practices. FirstLook technology is in over 1,600 automotive franchises throughout the United States. FirstLook helps dealers Drive More Traffic from the Internet, Close More Customers More Profitably, Close More Appraisals and Stock More of the “Right Cars” for their lot through cutting edge technology solutions as well as industry leading training and consulting services. For more information, visit www.DriveYourNumbers.com or call (800) 730-5665.

About R. L. Polk & Co.

R. L. Polk & Co. is the premier provider of automotive information and marketing solutions. Polk collects and interprets global data, and provides extensive automotive business expertise to help customers understand their market position, identify trends, build brand loyalty, conquest new business and gain a competitive advantage. Polk helps automotive manufacturers and dealers, automotive aftermarket companies, finance and insurance companies, advertising agencies, media companies, consulting organizations, government agencies and market research firms make good business decisions. A privately held global firm, Polk is based in Southfield, Mich. with operations in Australia, Canada, China, France, Germany, Japan, Spain, the United Kingdom and the United States.

NADA Booth #2327

    Media Contact:
    Amy Smolensky
    (312) 485-0053
    Press@FirstLook.biz

FirstLook Introduces Industry’s First Retail Performance System

Powered by Revolutionary Market Intelligence Engine: 360 Degree Market Navigation

CHICAGO, Jan. 25 /PRNewswire/ — FirstLook, the pioneer in automotive retail performance software solutions and the #1 Fastest Growing Company in Automotive as ranked by Inc. Magazine’s prestigious 2008 Inc. 500 rankings, announced today the automotive industry’s first Retail Performance System (RPS) at the 2009 NADA Convention in New Orleans.

With its market leading inventory management platform at its core, the FirstLook RPS is an integrated solution that encompass all major aspects of pre-owned processes including appraising, pricing, merchandising, stocking, inventory management and now internet advertising. This comprehensive suite of tools enables dealers to strengthen pre-owned retail performance by driving more traffic from the internet and closing more customers more profitably.

The FirstLook RPS is powered by the most powerful and comprehensive market intelligence engine ever created for automotive retail: 360 Degree Market Navigation. Developed to ensure that dealers have the information they need at the moment they need it, 360 Degree Market Navigation is comprised of the broadest and deepest set of aggregated market, customer, competitor, vehicle and store data available through a single source. These extensive data resources include J.D. Powers – Power Information Network, Edmunds TMV, Polk data, major wholesale and consumer guide books, Ping II Internet Pricing Analyzer and Auction data.

“Automotive dealers are challenged to navigate the volatile markets of today’s economy,” said Pat Ryan, CEO of FirstLook. “While other products only look at one piece of the puzzle, 360 Degree Market Navigation provides a true 360 Degree market perspective enabling real evidenced based decisions.”

With 360 Degree Market Navigation at its foundation, the FirstLook Retail Performance System helps automotive retailers tackle competitors both online and on the lot, making it the only end-to-end solution to help consumers buy and help dealers sell pre-owned vehicles.

The FirstLook Retail Performance System also features the industry’s first integrated pricing and merchandising solution, 360 Degree Internet Advertising Accelerator. This robust, internet-based module aids automotive retailers in posting, positioning, placing and merchandising online advertisements to effectively beat competitors and win more customers.

360 Degree Market Navigation is available now in all FirstLook products. Look for the 360 Degree moniker – to know you are getting the whole picture. For more information, please contact FirstLook at 800-730-5665.

About FirstLook

FirstLook, by INCISENT Technologies, is the pioneer in Automotive Retail Performance Solutions and the #1 fastest-growing automotive related company in the United States, according to the Inc Magazine’s prestigious 2008 INC 500 list of fastest-growing private companies in the U.S. FirstLook provides industry-leading tools to manage Pre-Owned Operations, Internet Marketing and Retail Performance Training & Best Practices. FirstLook technology is in over 1,600 automotive franchises throughout the United States. FirstLook helps dealers Drive More Traffic from the Internet, Close More Customers More Profitably, Close More Appraisals and Stock More of the “Right Cars” for their lot through cutting edge technology solutions as well as industry leading training and consulting services. For more information, visit www.DriveYourNumbers.com or call (800) 730-5665.

NADA Booth #2327

    Media Contact:
    Amy Smolensky
    (312) 485-0053
    Press@FirstLook.biz