Welcome to Internet Dealership Systems, Inc.

PRESS RELEASES

June 28, 2008
IDS Inc. held its first customized 4.5 day sales training seminar from June 16th thru the 20th. read more

June 14, 2008
IDS Inc. has named Smart Web Concepts as their official dealership web system provider for their new dealership and servcie clients. read more

June 8, 2008
Internet Dealership Sales Systems customized 4.5 day sales training seminar programs. read more

June 4, 2008
Internet Dealership Systems, Inc. announces a Strategic Alliance with Zoom Photo Ads.com and Zoom publications located in San Diego read more

June 1, 2008
IDS, Inc has formally announced today it has submitted a letter of intent to Apex Racing for 2009 Sponsorship read more

FEATURED SERVICES

Web Solutions
Providing auto dealers with automated online coupon systems, custom websites, email campaigns and more!

Affordable Deal System
The most comprehensive online sales training system available!

SPECIAL REPORT

July 13, 2008

THE REAL STORY
As automobile sales hit the wall dealerships should be bracing for a thirty six month down turn, in our option the worst since the mid 1970’s.

BACKROUND
In 1973 new car sales were a super critical factor in the economic mix and all retail sectors were in the doldrums as well. It was the first time an incentive check was ever offered to purchase a new American automobile. The amount of the incentive check was $500.00 and it was ordered by President Richard Nixon, the first rebate ever that was offered to buy an American car.

At that time the housing sector was bad, energy cost (gasoline) was at $1.45 per gallon, and the employment picture was not all that great as the industrialized east was laying off high paid union workers and jobs were being shifted to the southeast were the labor force would do the same jobs for less per hour.

In a matter of weeks Grocery bills went from $25.00 to $50.00 per week, the average workers weekly pay was around $130.00 before taxes, a new car would cost you around $3300.00 dollars and with a thousand dollars down your payments would be around $96.00 per month for 36 months, the average 2 worker household income was around $1300.00 per month, a house would cost you around $29,000 and your payments would be around $275.00 per month.

In 2008 new car sales are still a super critical factor in the economic mix and all retail sectors were in the doldrums as well. Currently one out of 7 Americans jobs is connected to some facet of the automobile industry. The average car payment is around $750.00 per month and cars have doubled in M.S.R.P price every 10 years during the last four decades, The average M.S.R.P. of new car is $19,600.00, light duty trucks $33,566.00, SUV’s M.S.R.P. are a whopping $42,800.00. The average price for a gallon of 87 grade unleaded gas is $4.37 per gallon, the average price of a new home is $300,000.00 with the average payment of $3360.00 per month, today’s value of that same home has fallen to around $150,000 in these foreclosed home market. of that we have a family of four and my wife that spends around $200.00 per week in this inflationary market, most of the people we have seen trying to purchasing a car over the last 8 months have 2 income net earning of around $ 3,900.00 per month, and most all of them are admitting that they are living pay check to pay check and trying to achieve a payment on a $28,000.00 car of $380.00 to $420.00 dollars per month with a $1000.00 cash investment payment. Add to that purchase $2800.00 in tax & license fees plus interest charges for the term of the contract. We are not selling a lot of new cars to these customers.

NEW CAR SALES (CURRENT CONDITIONS)
Over the last four months car sales at new car sales at west coast dealerships have fallen off by 45 to 60 percent depending on which regional area you are in. Why is this accurate percentage so important?

The west coast is responsible for one third of all the new cars being sold in the United States. One auto mall in our local area was selling over 4000 cars a month just 18 months ago and that represented just 25 dealerships out of 90 in the geographic area. And this mall currently off by 45 percent per month, according to our sources. How bad is it for the other 65 dealerships in the market? Also there has been a tremendous turn over in sales people ads for sales people range from Hyundai to Jaguar and Mercedes-Benz not one salesperson we have spoken with can consistently break out of a minimum wage pay check. I worked at one dealership to get a feel for the market and went three months of straight of minimum wage paychecks, due to the lack of qualified buyers, while working over 200 hours a month. I finally gave up and ended my case study. I would go an average of three days before I would get my turn with a customer amongst is 12 person sales staff, with the turnover at a rate of three a week.

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