MENLO PARK, CA - Clive Kinross, president of OPENLANE, an online auction company in North America, has made some key predictions for the auto industry in 2009. In 2009, Kinross predicts:New-car demand will continue to decline, but demand for used vehicles will continue, in part due to tightening credit. Getting the right inventory in the most efficient manner possible will help dealers stay successful.
With new-car values down 10-20 percent, dealers relying solely on new cars will face an uphill battle. Any dealer not in the used-car business will be at a disadvantage in 2009.
Consignors will increasingly use dynamic pricing models to sell their used cars online, benefiting dealers in the process.
Finance companies will take over some of the leasing market from captive finance companies and may be more aggressive at reducing costs.
The Internet will continue to be an ideal venue for helping dealers cut costs and become more efficient, particularly when it comes to procuring and disposing of inventory