If you need another reason to buy a Costco membership (as if supersized quantities of products wasn’t enough), here’s one more: members will save 15 percent discount on parts, labor and accessories when they have vehicles serviced at participating auto dealerships.

This just isn’t a great deal for members – dealers will have access to 44 million members who, in 2010, bought more than 250,000 new and certified used vehicles through Costco.

“It’s an adjunct to the certified pre-owned business,” said Jim Newbery, executive vice president of Costco’s auto program. “Those cars from the get-go have mileage on them, so you’re not talking about just doing warranty work. There is immediate business. When cars are new or used you have the accessories business. Our members come first but we want the dealer to increase his revenue opportunity.”

Costco has offered no-haggle, new-vehicle prices with participating dealerships for its members since 1989, and in 2008, factory-certified used vehicles were added to its auto arsenal. In total, Costco’s auto program includes 2,500 dealerships, with around 50 percent of them taking part in the new parts and service discount plan. You can expect that number to include all of the dealerships by the end of 2012.

Would you buy a Costco membership to take advantage of this new deal? And if you already have a membership, are you going to use this service? Let us know in the comments section below.

[Source: Automotive News]

There’s been quite a bit of activity going on recently in regards to Hyundai, especially on the retail side. Where once, dealers with deep pockets shunned the Korean company’s automotive franchises, now they’re snapping them up and in ever increasing numbers.

This probably isn’t surprising. Hyundai has significantly increased its U.S. market share during the last decade and expanded it’s product portfolio to include sportier and more luxury based offerings like the Genesis and new Equus. That, combined with increasing profitability has caused many large, successful dealers to have a look at getting a franchise, even if currently, it maybe one of the smaller stores. So far this year, it’s been reported that 40 of Hyundai’s 803 U.S. stores have changed hands with big players like Auto Nation and Penske getting in on the action.

The latter has recently acquired a store in the Phoenix, AZ area, a low-volume dealership, but has big plans for it. “I think [such stores] are viewed as an attractive opportunity, whereas, four or five years ago you were unsure of the footprint the brand was going to garner,” said Penske spokesman Tony Pordon.

Alongside more prestigious product offerings and growing market share (currently 4.7 percent in the U.S.), residuals have also improved: Hyundai was ranked as the 7th overall mainstream automotive brand by ALG in it’s 2011 Residual Value Awards, which is above the industry average, something bigger dealers see as an attractive proposition and an opportunity for growth, even in stores that are currently low volume or under performing.

John Patterson, who owns several Mazda stores in the Orange County, CA area, recently took the plunge and bought his first Hyundai franchise, after originally turning one down in 2003. Since he started running Tustin Hyundai, he’s seen monthly sales quadruple. “I think Hyundai has turned a corner,” he said. “It’s a franchise on its way up.”

[Source: Automotive News]

According to a recent study, women buy 52% of all new cars sold in the U.S. and influence more than 85 percent of all car purchases. This makes them the fastest growing segment of buyers for new and used cars, and when you do the math, that means women have full or partial say over $80 billion worth of spending on cars. So why do car dealerships find it so difficult to sell to women?

The fact is, the auto industry is primarily owned and operated by men, and they have a hard time marketing to women. When asked, 74 percent of women say they feel misunderstood by car marketers. And since the numbers show that 95 percent of the U.S.’s 20,000 auto dealers who belong to the National Automobile Dealers Association are male, there’s a clear cut problem communicating the needs and wants of one segment to the other.

The soon-to-be-published “Influence: How Women’s Soaring Economic Power Will Transform Our World for the Better” by Maddy Dychtwald with Christine Larson, talks about the problems that women face when purchasing a car and what dealerships can do to cultivate this influential market.

This information comes at an opportune time, especially with the state of the auto industry, and should be required reading in any dealership. In an interview with Jody DeVere, president and CEO of AskPatty.com, she advises that car salespeople need to create an environment where women don’t equate buying a car or getting it serviced with going to the dentist.

“Men and women communicate differently and can misunderstand cues and singles,” says DeVere. “Men need to learn how to listen, and why. It makes women trust you and creates a relationship.”

Just a few important notes to jot down: women are more concerned with fuel economy than color or stereo options, and are more likely to shop around at various dealerships to get the best deal. Along with the best possible price, they also want features that make life easier, as they are often the ones chauffeuring children to activities and events. On top of that, more powerful 4-cylinder engines in SUV-like vehicles have been among the popular picks this year.

[Source: Tire Review and Thenewsmarket.com]