ILLUSTRATION COPYRIGHT © ALMOOND/iSTOCK/THINKSTOCK Look aLot Like Christmas AT DEALERSHIPS LOVED IPHONE A$1,000 ONE, ANECKTIE X OR EVEN It’s Beginningto JUST MIGHT NOT CUT IT WITH SOME PEOPLE... THE BIGSTORY WHEN CONSIDERING AHOLIDAY FOR GIFT A BY TOM BEAMAN / DECEMBER 2017 THE BIG STORY

purred by automak- ers’ December sales promotions, a bullishh economy and old- fashioned generosity,y, Sreal vehicles are appearing, if nott under the tree, then at least in driveways on Christmas morning.g. Even if such an extravagant gift may seem out of reach, it doesn’t hurt to ask. “We get millions of letters to Santa every year, with many asking for cars, vans, motor- In 2011, accordingd to Us Weeklykl , cycles…you name it,” says Darleen comedian and rapper Nick Cannon Reid-DeMeo, a spokesperson for gave his then-wife, Mariah Carey, the U.S. Postal Service. a black Rolls-Royce Phantom For some, a Santa intervention reportedly worth $400,000 for was not required. Christmas. Hotel heiress Paris Hilton The Hammacher-Schlemmer bought herself a bubble-gum- catalogue is the go-to source for pink Bentley Continental GT extravagant automotive holiday for Christmas in 2008. “I’ve just gifts. The Chicago-based com- always wanted a pink car,” she pany started in New York as a told E! News. “I think when you’re hardware store in 1848, selling a little girl and you have the mortise gauges and plumb bobs. Barbie Corvette, you’re always In what might have been the first like, ‘Oh, I wish I had a car like automotive parts department, in this one day.’” 1902 the company added a repair

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kit for blown gaskets and flat tires While Hammacher-Schlemmer’s that plagued horseless carriages. 2017 catalogue contains rela- Today it boasts a circulation of tively mundane items like foot 50 million with mailings every massagers and toaster ovens, it two weeks from October through also features a $59,000 Morgan December. Three-Wheeler and a “Probably what we’re most SkyRunner flying all-terrain vehi- famous for when it comes to cle, just $139,000. A Batmobile automobiles were the 24 London replica built on a Lincoln chassis we imported in 1964; we with a BluePrint 383 small-block sold them for $1,895 each,” says GM crate can be yours for Stephen Farrell, Hammacher- only 200,000 “bat-dollars.” Since “Most of what Schlemmer’s merchandising direc- Hammacher-Schlemmer is not a we’re selling are tor. “Another item in the catalogue licensed motor vehicle dealer, the quirky, gadgety cars,” says is the Ural-T sidecar motorcycle actual sales go through a third- Hammacher- that was used in World War II. party. Hammacher gets a spiff. Schlemmer’s These higher-end products are fre- Farrell calls his customers defi- Stephen Farrell. “If they want quently bought in the fourth quar- nitely upscale. “We’ve had shahs a luxury car ter or early third quarter.” with oil money from the Middle they can go to a dealer or a collector.”

Hammacher-Schlemmer’s 2017 catalogue includes a $59,000 Morgan Three-Wheeler roadster.

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A Batmobile replica built on a Lincoln chassis with a BluePrint 383 small-block GM crate engine costs 200,000 “bat-dollars.”

East come in and say, ‘I’ll take deals – and the perfect gift. two,’ and ship them to Saudi “We sell an average of 35 or Arabia,” he says. “Billionaires 40 units a month from January from around the world walk into to November, then we’ve been our flagship store in New York, pushing 60 a month in December and it’s not uncommon for them for the past decade,” says Ryan to make an unusual purchase Jama, sales manager at the and have their assistant figure Alderson Auto Group in Lubbock, out how to get it to where they’re TX. “I would say half of those 60 going. units in December are Christmas “Most of what we’re selling are presents.” quirky, gadgety cars. If they want The dealership “hides” about 10 a luxury car they can go to a deal- cars every December. “The cus- er or a collector.” tomer will come in pay for it and then we’ll hide it for them in one BACK IN THE REAL WORLD of our storage units for them to Meanwhile, back in the real pick up Christmas Eve or the day world, automakers and dealers after Christmas,” Jama says. are gearing up for the annual year- He recalls a hospital administra- end sales push, hoping to capture tor who bought three cars for his holiday buyers looking for the best family in December 2016.

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For Christmas, a customer of the Alderson Auto Group in Texas bought these RX 350s for himself, his wife and daughter. “He picked out his car, a ’16 RX the front of the line. He took his 350 on a new lease,” Jama says. wife and daughter to the other “While he was here, he decided to two cars and said, ‘By the way, lease another RX 350 for his wife. you guys are picking up these two We were working the deal on his today.’ There was a little elation wife’s car and out of the blue he and celebration on the showroom says, ‘My daughter’s graduat- floor.” ing college in June and I’m just Jama says Alderson’s other going to get her an NX 200 for three franchises – Cadillac, BMW Christmas as well.’ and Mercedes-Benz – also see “We had them lined up in the about half of their December showroom with red bows on sales given as Christmas gifts. each one. He brought the wife Of course, any such purchase and daughter in with him and he requires adult decision-making. went in to do his paperwork. He There are things to keep in came out to his car, which was in mind, says Dave Ramsey, per-

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THE BIG STORY

Young woman with her Christmas gift at Alderson Auto Group’s Lexus store. sonal finance coach and host of pects of going deep into debt to the nationally syndicated Dave give such a present. Ramsey Show. “A gift should be a blessing not “First, who is the car for?” he a curse and that’s what debt is – a says. “And is it a wise purchase curse,” he says. “Who goes around for them? In other words, it would giving curses for Christmas?” be stupid to buy a $30,000 car for your teenager. Secondly, if it’s a HOW DEALERS DON’T surprise, make sure you know the BLOW THE SURPRISE recipient would welcome that. Autotrader Executive Editor My wife likes surprises. I don’t. So Brian Moody recommends ways to I would not be thrilled with this bring dealers into the loop to pre- purchase.” vent letting the cat out of the bag Vehicle gift-giving usually is and blow the surprise element. done by affluent people with a lot “When you’re at the dealership, of disposable income. For others, let them know right away that Ramsey warns about the pros- it’s a gift,” he says. “Tell them not

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Lexus December to Remember Commercial: “Whispers.”

to call you on your home phone. “Lexus does a great job of If you go to the dealership with advertising and getting the word your spouse, tell the staff ahead out,” he says. “We see quite a bit of time to act like you’re just of uptick in our walk-in traffic shopping. If you’re buying a used and our Internet traffic. It’s a nice car, make sure it’s inspected and way for our sales team to end on mechanically proper to begin a big month, going into the not- with. Make sure it’s a gift that so-great months of January and keeps on giving and not just for February.” that day.” Miller recalls a longtime cus- December is a most important tomer who always put his fam- month for Germain Lexus of ily’s automotive needs first and Easton, says Josh Miller, general wouldn’t give up his ’94 LS 400 manager of the Columbus, OH, with 200,000 miles (260,000 km) dealership. on the clock.

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“The last two “I kept telling him maybe it’s ‘What are you doing here?’ His Decembers – time to start looking at a new LS wife took him outside, and he 2015 and 2016 – were our best- or ES but he said he was going was almost like a little kid. He ever selling to take care of his wife and kids was beside himself, the kids were months in the first,” Miller says. “His wife told all hugging him. It was a really history of the brand,” says me he was getting ready to cool experience.” Brian Bolain of retire, and she really wanted to One way to know if a market- Lexus. do something nice for him. We ing campaign has been ingrained worked the back channel of the in the culture is when it is paro- deal without him knowing about died, like Lexus’s “December to it and I delivered a new ES 350 Remember” promotion, now in with a big red bow to their family its 18th year, that features a white Christmas party at the Columbus car topped with a giant red bow Country Club. in front of a handsome home. “I walked inside and he said, In one online parody, a hus-

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band leads his blindfolded wife Says Eric Lyman, TrueCar’s outside on Christmas morning. vice president-industry insights: When she sees the car with a “When we look at past years, red bow parked in the driveway, while December isn’t necessarily she gasps, saying, “How did you the lowest average-transaction- even pay for that? You don’t even price month of the year, it is typi- have a job. Did you use my credit cally the month where we see the card?” biggest discounts on a percent- age basis off of MSRP.” DECEMBER RINGS IN He says the end of the fourth AUTO INDUSTRY SALES quarter, the month and the year The “December to Remember” create a trifecta of sales targets buzz apparently works. “The last that drive deal-making. two Decembers – 2015 and 2016 – “In the auto industry, the end were our best-ever selling months of December often falls around in the history of the brand,” January 2 or 3 because that’s the says Brian Bolain, Lexus general first day back in the office for the manager-products and consumer automakers when they corral all marketing. “This year Lexus is the results from their dealers,” going to sell about 300,000 units Lyman says. “Because of that – 25,000 per month on average. In phenomenon, we actually see the past two years our December (around) New Year’s Day is one of business has been over 40,000 the best days to buy a vehicle in units. The anticipation of the terms of discount off of MSRP. event even extends to some of “That’s when the dealers are our consumers. They’ve learned that December is going to be a good month to buy a Lexus. We’ve got DECEMBER IS “WHEN THE DEALERS people on a leasing cycle ARE REALLY WHEELING AND DEALING that begins and ends in and the automakers have really turned up December.” the juice on any incentive“ programs.” WWARDSARDSAAUTOUTO 10 | DECEMBER 2017 THE BIG STORY

Volvos make wonderful holiday gifts, says Rick Bryant of Volvo Car USA.

about another 5,000 in dealer inventory, so we expect to see a fairly large uptick.” As far as Volvos as really wheeling and dealing holiday gifts, it happens “without and the automakers have really a question,” he says. turned up the juice on any incen- “November and December are tive programs.” our biggest marketing months Volvo’s “Sweden’s Greetings” pro- of the year, especially for luxury motion began Nov. 1 and will run vehicles,” says Victoria Rusnak, through Jan. 2. “We have offers on president and CEO of the Rusnak every car,” says Rick Bryant, Volvo Auto Group, which operates 17 Car USA’s vice president-sales. dealerships in Southern California. “We change it up from time to “Most of our factory partners have time, but we made a decision this holiday sales events and we run year to communicate the dol- local campaigns that match the lars off, and they vary from car to factory message and feature our car,” he says. “Whether you buy locations with some of our best or lease, those funds reduce the offers. “In addition to traditional transaction price. We’re expecting media, we also run Facebook and a fairly strong finish to the year. Instagram campaigns for in-market We’ve sold about 3,500 of the new shoppers.” XC60s already, and we’ve only got Rusnak has filmed holiday TV 2,000 of them on the ground. But commercials for her BMW and by the end of the year we’ll land Mercedes-Benz dealerships, and

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the group holds a holiday car TV spots that are “emotional, show to collect for Toys for Tots. authentic and share stories Consumers have gotten better about families and their journey in understanding and timing mar- home for the holidays,” says Phil ketplaces, says Hyundai Motor Dilanni, BMW’s corporate commu- America Chief Marketing Officer nications manager. Dean Evans. “Whether it’s the last few days LET IT SNOW – of the month or the last month of AND GET A FREE CAR the year, they are trained around John Hennessy is known these cyclical times that they throughout much of Chicagoland think manufacturers actually will as Mr. Christmas. The second- Consumers bet- bring the best deals to market,” generation owner of Hennessy’s ter understand the marketplace, he says. “We’re still working on RiverView Ford in suburban says Dean Evans, a national (marketing) program, Oswego, and chairman of the Hyundai’s chief but the direction is to have the 2018 Chicago Auto Show, won marketer. best deals in the marketplace for WLS-TV’s 2016 Greater Chicago the ‘18s and to have a headliner “Light Fight” in 2016 with an like zero percent financing for 60 elaborate holiday display at his or 72 months.” Naperville home. The Christmas Evans says the company logs spirit continues at his dealership, between 40,000 and 50,000 retail which since 2010 has offered sales per month, but he’s hoping sleigh rides, photos with Santa for 60,000 sales in December. and a food drive that offers $15 BMW of North America says the off a service bill in exchange for year-end represents its highest donations. media spend of the year, though In 2016 Hennessy had a snowfall it doesn’t give an amount. For the promotion, promising those who “BMW Road Home Sales Event” purchased any new or used vehi- ($3,000 holiday credit on select cle between December 10 and models) that began on November 15 a full refund if it snowed six 1, the company showed three inches or more on New Year’s Eve.

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A late-December warm snap scut- store. That incentive is the chance tled anyone’s chances of scoring of getting your car for free.” a free car, but Hennessy says his Brenner says premiums typi- customers loved the promotion. cally are based on 5% to 10% of “They said, ‘We were thinking a client’s projected sales during a of buying a car soon but what the specific period. For example, if a heck, if we have a chance to get a dealer forecasts $1 million in sales car free, why wouldn’t we buy it between Dec. 10 and 15, the pre- now?’” he says. “They said, ‘What’s mium would be up to $100,000. the catch?’ There is no catch – Dealers pay half of the premium except that it’s got to snow.” up front, which covers them for Hennessy says he normally sells half of their expected sales. If they 50 or 60 new cars in December, don’t reach 50%, they owe no but the snowfall promotion more. accounted for about 15 additional If the snowfall doesn’t reach the sales last year. specified depth on the recording U.S. Weather Insurance in sub- date, typically Christmas Day or urban Philadelphia is one of sev- New Year’s Eve, the policy doesn’t eral companies that help dealers pay out. execute snowfall sales promo- “It’s certainly a good deal for tions and hole-in-one contests in getting dealers’ name out there warmer weather. and getting traffic to their store,” “We market it as cheap adver- Brenner says. “If the policy pays tising for dealers; that’s what out, it’s a bonus for everyone. they like most about it,” says Even without it, they seem to Brett Brenner, head of the firm’s enjoy doing it.” weather department. “They want people who are between their FINE LINE BETWEEN dealership and another dealer- LOVE, HATE ship, and they don’t know where Jack Boyle works for a financial to go. They just want to give them brokerage company in Naperville a little incentive to come to their and is a dedicated Ford customer.

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His wife loves the Ford Escape, but she thinks it’s crazy that people A man who bought his wife a car buy cars as Christmas gifts. Jack’s for Christmas recalls asking her brother did it one time and she aft erwards, “So is it dumb to get a responded, “That’s ridiculous!” car for Christmas?” But Boyle had other ideas. Just SHE SAID, “YEAH, IT’S“ DUMB, before Christmas 2016, he bought BUT I LOVE IT.” a new Escape from Hennessy Ford and thought to himself, but doesn’t want to say anything. “Watch this.” “Later, I went outside and “We pulled the new car into the unplugged the two-car garage- third stall of our three-car garage, door opener so we’d have to take put a bow on it and put a huge the new car to her sister’s house Teddy bear in the driver’s seat,” for Christmas dinner. She’s hit- Boyle recalls. “There was a car ting the button and says the door next to it in the middle space and won’t work. I’m saying to myself, we went in the house to wait for ‘What do I have to do to get her her to come home. Moments later to see this car?’ I say, ‘Let’s take she came walking in the house, the other car and I handed her a but nothing. I’m looking at every- dish of food. She walks out, then body and going, ‘What’s going comes back in and says she was on? How did she not see it?’ so surprised that she dropped the “The next morning is Christmas dish! Eve and we’re going over to my “I said, ‘What do you want me to sister’s house. My wife goes to do about that?’ She said, ‘You’ve the garage and comes back in the got to make something quick.’” house and there’s no reaction. Boyle says his wife thinks the I’m saying, ‘How is she so blind?’ Escape is the greatest car she has We get home from my sister’s and ever owned. “I asked her, ‘So is it she gets out of the car and walks dumb to get a car for Christmas?’ in the house. Now I think she’s She said, ‘Yeah, it’s dumb, but I messing with me, that she sees it love it.’” WWAA

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