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November 2013 Volume 5, Issue 54, Free Publication

The Complete Automotive And Powersports Magazine

A Dealer's Journal 1309 SE 11 Terrace Cape Coral, FL 33990

Standard US Postage Paid Miami, Florida Permit No. 2715

The Happenings PowerSports Section Section Page 11 - 14 Court House News Page 4 Page 16

Canada’s Corner Page 20 Guide Listings Page 22 - 25 Dealer Notes Page 26

Happy Thanksgiving From All Of Us At A Dealer’s Journal.

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Joe Killory, ext.112 Tara Napier, ext.135 Ed Murphy, ext.113

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Publisher: Michelle Dones Assistant Publisher: Linda Clemons Editor: Patricia Gehring Staff Writters: Nina Way, Leah Mendoza Graphic Designers: Lynn Martin, Michelle Dones Advertising Specialist: Debbie Bellantoni Circulation Manager: Sue Barnes


NextGear Capital Appoints New Vice President Of Commercial Accounts Page 5

Make Your Car Dealership’s Online Leads Deliver A Better Return Page 6 Dealers Sign Up To Purchase Boats As RBH Hosts North American Conference Page 11 Natick Town Meeting Approves Car Sales Bylaw, Paves Way For Tesla Page 18

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helped them celebrate 75 years!” Come and experience the difference. Check out this month’s ad on page nine in the magazine for this month’s sale dates and times, or log onto www.rawlsautoauction. com. The Boat Nanny wants to service your Marina kept boat. Serving all of Southwest Florida. Call 305-281-5620 to set up your monthly maintenance plan. A Dealer’s Journal is the only automotive and powersports publication that offers you four for one advertising. Print, Online, and Direct E- mail Marketing, along with placement on all of our social media pages for one low monthly price. Contact the sales team at 877-331-4350 or at sales@adealersjournal. biz to secure your place today! We are the Complete Dealers, Auction and Powersports Magazine. Attention Dealers, Auctions, Transporters, and Suppliers; Do you have something going on that you would like to share? An upcoming event or special sale? How about a new product release? Email us at subscriptions@ and tell us about your upcoming event, sale, or special. We will run it in the next issue of A Dealer’s Journal, Your publication for the industry!

NextGear Capital Appoints New Vice President Of Commercial Accounts

CARMEL, IN. - NextGear Capital has announced the appointment of Bradley J. Walsh to the role of Vice President, Commercial Accounts. Walsh will be responsible for developing and implementing finance and service solutions for commercial account customers. “Our industry is an everchanging landscape, constantly presenting new challenges and opportunities,” stated NextGear Capital COO Shane O’Dell. “As NextGear Capital continues to evolve and adapt, we seek to overcome challenges in pursuing those opportunities. Having the best executive team is critical to that process, and Brad’s diverse background in the automotive industry is precisely what we need to best

serve our commercial account customers.” Walsh previously served as Executive Vice President and Chief Marketing Officer for QCSA Direct, a salvage auction provider in Davenport, IA. He has also served as Vice President of Business Development for Cross Country Automotive Services (Agero) in Boston, MA, and as Vice President of Sales & Marketing for ADESA Impact Auctions. Walsh is a U.S. Air Force veteran and resides in Carmel, IN. In response to his new role, Walsh stated, “Commercial accounts will continue to be an integral component of NextGear Capital’s customer base. Analyzing their impact and providing solutions to serve them will be my

emphasis. I’m enthusiastic about this role with an industry leader like NextGear Capital.” About NextGear Capital: NextGear Capital is the world’s most comprehensive and innovative provider of lending products for vehicle dealers and auctions. With pioneering technology and a total commitment to customer service, NextGear Capital empowers dealers to floor plan vehicles from anywhere, at any time. NextGear Capital lines of credit can be used for a variety of purchases - Retail, Wholesale, Salvage and Specialty. The company is a dynamic new industry leader that is 100% focused on helping customers shift their business to the next level.

U.S. Auto Industry Is Thriving, But Executives See A Coming Struggle For Market Share

NEW YORK, NY -- Confidence in the U.S. auto industry is running high due to surging sales and record profitability, but executives’ optimism is tempered owing to increased competition and an expectation that growth in new vehicle sales will slow. These are among the key findings of Booz & Company’s third annual U.S. Automotive Industry Survey and Confidence Index, conducted in partnership with Bloomberg News LP. “We are seeing a continued bullishness, but obstacles still face the industry, raising the question, ‘Where do we go from here?’” said Scott Corwin, a partner at Booz & Company. “Many executives expect competitive dynamics to become even more intense, leading to a more aggressive use of incentives, with OEMs breaking ranks sooner than expected.” The cautious optimism among

most of the survey respondents comes amid a backdrop of positive factors in the auto industry: a 17 percent increase in new car sales over the prior year in August 2013; continued success with new product launches by OEMs and suppliers; and the perception that executives have been maintaining a disciplined approach to financial and operational management. Yet survey respondents expect overall vehicle sales growth of 1.4 percent from 2013 to 2017, well below the 10.1 percent pace of 2010 to 2013. Their prediction of 16.3 million vehicle sales in 2017 is lower than most industry forecasts. “A return to the fundamentals of great product and more disciplined financial and operational management have been key drivers of the recent U.S. automotive industry resurgence,”

said Brian Collie, a partner at Booz & Company. “However, slower growth signals a coming fight for market share, as companies will need to take sales from competitors in order to continue growing—a zero-sum game. The key question is, will we continue to see competition rooted in superior product and providing a superior customer experience, or will we see executives revert to more aggressive price and sales tactics?” In July and August of 2013, Booz & Company and Bloomberg News surveyed more than 200 executives from more than 75 automotive manufacturers, suppliers, and dealers. Key findings: • Bullish outlook continues. More than 90 percent of respondents describe the industry as either somewhat better or much better relative Continued On Page 18

November 2013 - A Dealer’s Journal - 5

Make Your Car Dealership’s Online Leads Deliver A Better Return

By: A Dealer’s Journal Staff

Emails are easy to ignore, particularly if they’re trying to convince you to send money to a friendly Nigerian prince or buy drugs to improve your, erm, performance. But if you work in retail and they’re genuine enquiries from potential customers, why leave them unanswered? Don’t think it’s an automotive industry problem? Earlier this year, a ‘mystery shopper’ survey of manufacturers and dealers by Auto Trader for its annual Click Awards found 50% of enquiries failed to get a response. Dealers did far better than the OEMs, with 66% of retailers responding to requests for test drives or information within four hours. More worrying was that just under a quarter of retailer enquiries were left unanswered. The issue was no better with ‘live chat’ on dealers’ websites. Only 10% of those contacted responded to a request about carrying out a test drive. Nathan Coe, group director of Auto Trader, said how a business manages leads can be the difference between making a sale or not. “Response times may not seem that important but failure to act in a timely manner is an easy way to deter any potential customer,” he said. “Technology is only an effective solution if used properly. For an industry that should have a focus on customer service, these figures really aren’t good enough.” Is four hours too long to wait in the age of instant communication? Some questioned whether four

hours was the right measurement. Andy Teale, managing director of Fastrack Automotive, a supplier of vehicle sales solutions, said: “Taking it away from online, if I’d phoned a dealership and asked for a call-back, I’d be pretty disgusted if it didn’t happen in four hours.” Why are so many car dealers poor at digital lead response? Are they not adapting to the modern world? Is a culture change required? What processes, incentives and/or systems can be put in place to get better return on investment for the dealer’s marketing spend? Jeremy Evans, managing director of Marketing Delivery, which provides email and phone customer relationship management systems, including SmartMail, said he believed there were two key causes, and the first involved recruitment and training: “Typical dealer sales staff are not experienced at dealing with multiple online lead sources. Traditionally, they have been employed for their one-to-one people skills.” Evans said the most successful dealerships were the ones hiring specific digital sales executives. “The other issue is one of management awareness. With a client such as Cambria Automobiles, we put in place a process using SmartMail to follow up online leads regardless of what the dealership did. Any customer responses to these were seen by the directors, who took a dim view of those where the enquiry hadn’t been dealt with. That’s a very sure way to improve things!”

Delivering the right message at the right time. The Cambria case study illustrates how technology can help. Dealerships automatically send copies of their web enquiries to Marketing Delivery and it generates follow-up emails 24 hours later to ask customers how they were managed. Ian Godbold, Cambria Automobiles marketing director, said the initiative had led to big improvements, but that this was still an Achilles’ heel for the industry. “Our target for a response is now two hours with a reduction to one hour in due course,” he said. “I’ve got some dealers who are targeting 15 minutes, but I’ve also got ones who are outside the two hours.” Godbold said he recently watched a video about a US company working in the sector. It said anyone responding to digital requests from potential customers should forget about two hours and even one hour. “It said if you’re not going back to your consumer instantly you will lose them to another website.” Cambria installed SmartMail four years ago. “Today, every enquiry into the business gets put onto a lead management system, which allows us to build a prospect database,” explained Godbold. “The consumer will get a follow-up 24 hours later asking how their search is going, but also asking how did we do and is there anything we can help with. A similar thing happens at 72 hours and then 14 days. It’s amazing at that point how much business you can resurrect, where the consumContinued On Page 14

Blog About Your Business For Free At And Don't Forget To Find Us On Twitter, Auttr, DealerElite, 6 - A Dealer’s Journal - November 2013 Facebook and LinkedIn.

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November 2013 - A Dealer’s Journal - 7

Cequent™ Hosts Annual Executive And Hitch Pro Conferences

PLYMOUTH, MI. – Cequent™ Performance Products held its annual Executive and Hitch Pro conferences. The week-long event, which was held in Charleston, S.C., brought together distributors and Hitch Pro installers from across North America. The Executive Conference was attended by CPP distribution partners. The Hitch Pro portion of the event was attended by CPP dealers and installers. During the event, customers sat in on seminars hosted by CPP’s product managers. In addition to meeting face-to-face with the CPP team, attendees were able to provide their comments during a focus group session. “Our annual conferences give customers the opportunity to see what we’ve got on deck for next

year,” says Tom Benson, CPP President. “It also allows us to garner some feedback and talk candidly about what’s working and what needs improvement.” The topics this year focused on the transition of the company’s Goshen facility to Reynosa and Juarez, Mexico, new products, and CPP’s expectations for 2014. This was the 27th annual conference hosted by the company. “We look forward to these conferences because it gives us a chance to meet with long-time customers it’s a bit like a big family reunion.” About Cequent™ Performance Products, Inc. Cequent Performance Products, Inc. is the industry’s largest manufacturer of towing and trailer aftermarket products. Each prod-

uct is engineered and tested to meet and often exceed the industry’s highest standards. Product focuses include vehicle specific trailer hitches, electric trailer brake controls, fifth wheel hitches, gooseneck hitches, weight distribution systems, cargo management, custom designed and standard electrical harnesses, trailer jacks, couplers and more. Brand names include: Bargman®, Bulldog®, Draw-Tite®, Fulton®, Hidden Hitch®, Pro Series™, Reese®, ROLA®, Tekonsha®, Tow Ready® and Wesbar®. Cequent is a subsidiary of TriMas Corporation. For more information, visit www.

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A Dealer's Journal

PowerSports Section PAGES 11 - 14

Dealers Sign Up To Purchase Boats As RBH Hosts North American Conference

By A Dealer’s Journal Staff

A glance at the license plates in the parking lot of the Fox Hill Event Center tells a large part of the story: Illinois, Missouri, Georgia, Florida, Minnesota. Visitors from as far as the west coast and Canada were in town over the past few days for the Rec Boat Holdings North American Dealer Conference. The conference gave RBH the opportunity to assemble a network of new dealers. It’s another step in taking on the jet boat market, a business move that will allow RBH to hire as many as 135 new employees between now and the end of the year, according to company President Roch Lambert. About 50 dealers who previously had carried Bombardier Recreational Product’s SeaDoo jet boats committed to carrying jet boats manufactured in Cadillac. RBH is moving ahead with picking up the jet boat market after BRP decided to exit the market last year. BRP will continue to manufacture the Rotax engine used in the jet boats under a recent supply agreement signed by the two companies.

RBH hosted about 130 individuals from the retail industry for the conference. That included eight to 10 representatives from MarineMax, which, with 54 locations in the United States, is the largest marine retailer in the world. “They are very successful, phenomenal people,” Lambert said. Visitors had the chance to try out the boats for themselves in the brisk waters of Lake Cadillac and also toured the RBH plant in Cadillac. Lambert made sure to give credit to his employees, whom, through and extraordinary effort, were able to have the jet boats in the water about 5 1/2 months after RBH made the announcement it would be manufacturing jet boats under the revived Scarab brand.

Over the next eight months, sales of Scarab boats and other brands are expected to generate about $35 million to $40 million in revenue, all of which will come through Cadillac. The company currently has two jet boat models in production: the Scarab 195 and the Wellcraft 187. A second production shift was added recently to keep up with demand. Two more models, the Scarab 215 and Glastron GT 207, will go into production before Christmas. Two more Scarab models and two more Glastron models will begin coming off the line between January and June. Also part of the good news: RBH already has brought from 25 to 30 new employees on board in engineering and production, and moving forward, the company expects to hire 135 more people by the end of next year.

November 2013 - A Dealer’s Journal - 11

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CycleTrader Announces Android Mobile App By A Dealer’s Journal Staff

With the launch of its newest product, an Android mobile app now available for free download at the Google Play Store,, the leading online powersports marketplace, is making more great strides to provide the best possible buying and selling experience for both motorcycle dealers and riders. The Android app joins other products such as its mobile and tablet-optimized sites, iOs app, and original desktop site. The new app retains the core functionality of the desktop version of the site, all in an easy-tonavigate, mobile-optimized format. The mobile app for Android allows end users to search for a new vehicle while on the go, all while providing dealers

and private sellers with maximum exposure to qualified potential buyers. Paige Bouma, general manager of, said, “The Android platform is an excellent way for us to broaden our reach to make our industry-leading online marketplace available to as many powersports enthusiasts as possible.” She continued, “This new product has been a long time in the making. While Android’s open source code makes it possible for anyone to build an app, the multitude of devices that support the platform lend an extra dimension of difficulty to the task. We wanted to make sure our product had been through a rigorous and thorough QA process before making it available to the public. I believe

we have succeeded on every level, both aesthetically and functionally.” The Android version also boasts the same industry-leading encryption and user protection that make the premier online destination for motorcycle buyers and sellers. With an average of more than 2 million visitors across all platforms, remains the clear leader in the online powersports marketplace. The addition of an Android app to the lineup ensures that visitors will keep flocking to for years to come.

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Cont: Make Your Car Dealership’s Online Leads Deliver A Better Return

Continued From Page 6

“Some dealers have admitted they’re not good at it so they’ve given it to a central contact centre,” he added. That approach needs people who know about the product and the risk is it could cause more problems. For example, if it’s a dealer group that represents different brands, contact centre staff need to be able to access the right information quickly to give a good experience to the customer. Teale continued: “A further point is ensuring these people have good enough written skills and attention to detail to communicate with the customers. They also need the capability to place that enquiry in the showroom with all the required information, so people there are aware that a customer is booked in at a certain time to test-drive a specific car.”

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er might have gone away or been distracted.” It shows digital lead management isn’t just about the instant response, but continuing to engage with the customer to build a rapport. “Yes, the focus is getting back to them quickly, but that’s just the start of the journey,” said Godbold. “On the sales side it’s a big win for us, and on aftersales the reminders we send out get the highest response rate. It’s about delivering the right message at the right time.” Auto-response emails are a popular way of getting that fast reply, but they’re only a stop-gap solution. Darren Bedford, sales director at Symco Training, which works with staff in-dealership to improve their skills, warned that the ‘thanks for your enquiry’ reply

could actually be damaging to the perception of a business if not followed up with a personal note. “A customer’s experience with other online retailers is instantaneous, so they expect a quick response,” he said. “The faster it is, the bigger the wow, but the longer you take, it can have a negative impact.” All dealerships will have defined showroom processes. But with the opportunity coming from multiple digital channels and a degree of duplication, things are more complicated. For example, the idea of a lead coming into a single point – the sales manager’s inbox, say – means if that person isn’t at their desk, the process instantly fails. The problem is solvable and Andy Teale said it needed a combination of people, processes, systems and management.

14 - A Dealer’s Journal - November 2013

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Court House News Car Dealer’s Move Into Boca Delayed By A Dealer’s Journal Staff

The City Council’s consideration of Boca Raton’s first car dealership with outdoor car storage was delayed, It will be on the agenda again Nov. 12. A Tesla dealer wants to set up an outlet at the Town Center of Boca

Raton mall in the former Apple store there. But the proposal has spurred a protest from a nearby homeowner’s association. Mayor Susan Whelchel said it was not an unusual delay, made at the request of the dealership. Citing concers about traffic

that might come from Tesla’s test drivers and also the city’s restriction that has so far kept traditional dealerships out of the city, Via Verde Master Homeowners’ Association hired a lawyer to put the brakes on Tesla’s plan.

ers Association last fall that was ultimately thrown out of Norfolk

Superior Court.

Natick Town Meeting Approves Car Sales Bylaw, Paves Way For Tesla

By A Dealer’s Journal Staff

Natick’s Town Meeting has approved a short-term change to town zoning bylaws to allow for limited car sales at the Natick Mall and in the Golden Triangle area -paving the way for Tesla to sell its automobiles directly to consumers. The bylaw, as passed on Oct. 17, allows for a “Limited Salesroom for Motor Vehicles” which is defined as “a retail establishment for the sale of Motor Vehicles with…having no more than four vehicles on site for sale, test driving or display, with no repair services” provided that a company gets a special permit from the town Planning Board. Because it involves a change to zoning bylaws, the new bylaw will have to be approved by the state Attorney General before it can take effect. The new bylaw will offer relief to the electric car manufacturer Tesla Motors, who had previously been granted temporary waiver to sell its cars out of a showroom in the Natick Mall in July. The company’s attempt to sell cars directly to consumers had rankled many dealers in the state, culminating in a lawsuit by the Massachusetts State Auto Deal16 - A Dealer’s Journal - November 2013


Manheim Dallas Auctioned Two Trucks Owned by ‘Duck Dynasty’ Family; Proceeds Went To Charity DALLAS, TX – Manheim Dallas hosted the sale of two trucks previously owned by the Robertson family of the Duck Dynasty TV

show. Proceeds from the sale will go to the charities selected by the foundation of McKaig ChevroletBuick of Gladewater, Texas, the consignors of the trucks. “We are excited to offer these two trucks from the Duck Dynasty show,” said Manheim Dallas General Manager David Robertson, no relation to the Robertson family. “It’s a very popular TV show, and we are very glad to partner with McKaig Chevrolet-Buick.” The 2011 Chevrolet Z71 and the 2010 Chevrolet Z71 trucks were previously owned by Phil Robertson and his son Willie Robertson. The Robertsons originally obtained both trucks through McKaig Chevrolet-Buick. The Robertson family operates Duck Commander of West Monroe, La., which produces duck hunting products. The family is featured on Duck Dynasty, a reality show in its fourth season that airs on A&E featuring Phil, Willie and many members of their extended families. About Manheim ( Manheim is the leading global

provider of vehicle remarketing services, connecting buyers and sellers of used vehicles to the largest wholesale used-vehicle marketplace. The company helps dealer and commercial customers achieve results by providing physical and digital auction channels, data analysis, financing, transportation and mobile products and solutions. Manheim pioneered in-lane vehicle auctions and has been an innovator in both digital and mobile auction platforms. Manheim registers nearly 8 million used vehicles annually, facilitating transactions representing more than $50 billion in value. Manheim’s research and consulting arm, Manheim Consulting, provides industry-leading market intelligence and publishes the widely recognized annual Used Car Market Report. The company offers dealer financ-

ing though NextGear Capital, Inc., and transportation services through Ready Auto Transport. Headquartered in Atlanta, Manheim has more than 20,000 employees in 107 worldwide sites and generates annual revenues of more than $2.5 billion. A subsidiary of Cox Enterprises, Manheim participates in “Go Green with Manheim,” the company’s sustainability program.

Cont: U.S. Auto Industry Is Thriving, But Executives See A Coming Struggle For Market Share Continued On Page 5

to last year. And both suppliers and OEMs say they are reasonably well positioned to face future competitive pressures. • More aggressive use of incentives is expected. Operating with tight capacity has enabled OEMs to maintain strong pricing discipline and limit their use of incentives. However, warning signs are beginning to emerge that this may change; more than 40 percent of respondents expect more aggressive use of incentives during the next six months. • Industry efforts to drive greater adoption of alternative powertrains continue to face strong headwinds. Respondents expect only 20 percent of cars to be powered by electricity, natural gas, and other alternative power sources by 2020, down from last year’s prediction of 24 percent. Furthermore, these numbers are viewed as highly sensitive to continued government support; without subsidies and infrastructure support, the expected 2020 penetration rate

drops to 12 percent. • Hyundai and Volkswagen will continue to gain market share. Respondents see Hyundai, Volkswagen, BMW, and Ford continuing to gain market share, while they predict small market share losses for GM, and larger losses for Subaru and Nissan. Notably, the level of confidence in these predictions is significantly lower than it was last year, suggesting that velocity of gains and losses is slowing down. • Confidence is high in in-vehicle entertainment, telematics, and the “connected car.” Some 70 percent of OEM respondents say they have compelling value propositions relative to offerings from smartphone makers, wireless carriers, and app makers. Tellingly, however, more than half admit they don’t have integrated solutions in this emerging field. Last year, 38 percent of OEM respondents said they intended to create their own platform for integrating digitization and connectivity. • Costs still in the crosshairs.

Despite their massive efforts to shed excess capacity, reduce legacy obligations, and streamline operations, auto executives believe there are still significant opportunities to continue cutting costs. Fully 80 percent say cost reduction remains a top priority for their company—but a minority believe cost cutting has given their company a sustainable competitive advantage. Please visit to read the full survey report that begins to address what’s next for the automotive industry. About Booz & Company Booz & Company ( is a leading global management consulting firm focused on serving and shaping the senior agenda of the world’s leading institutions. Drawing on the talents and insights of more than 3,000 people in 57 offices around the world, we help our clients achieve essential advantage by working with them to identify and build the differentiating capabilities they need to outperform.

Forth Generation Ram Factory Match Gauges By Auto Meter

Sycamore, IL - Auto Meter has designed and built the instruments of choice for professional race teams for nearly 60 years. Their engineering and production teams are based in the heart of Midwestern farm country in Sycamore, IL, and started realizing the need for quality instruments for hard working pickups several years ago. Since then Auto Meter has been incorporating the experience and technologies developed for gauges designed for grueling 500 mile races and 300mph passes into what they build for your

diesel truck. Today Auto Meter is proud to introduce New 4th Gen Ram Factory Match gauges that are available in the most

popular and critical diesel performance parameters including boost, pyrometer (EGT), Transmission Temperature, Fuel Pressure and Fuel Rail Pressure, for purchase individually or as pre-pack-

18 - A Dealer’s Journal - November 2013

aged kits complete with vehicle specific mounting solution. Under the hood you’ll find the same race proven movements trusted from Baja to Daytona finished with OEM detailed styling that blends seamlessly with your 2010 and up Ram truck interior, from unique pointers and dial artwork, to color matched LED backlighting and chrome bezels. 4th Gen Ram Factory Match instruments ensure that you spend your time getting the job done, rather than riding on the back of a wrecker.

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GM Keeps Canadian Plant Open Two Years Longer Than Expected

Oshawa, Ontario - Thanks to strong sales numbers for the Chevrolet Equinox and Impala vehicles, General Motors has decided to keep the Oshawa, Ontario, assembly line that manufactures them open until 2016. The time frame was expanded after both models received high quality

preserved. The additional two year time frame could potentially turn into the automaker keeping the production plant open indefinitely, according to union executives. However, the original decision to close down production at the plant was because Canada was the most

Cruze. “By maintaining production over the next few years, we have a chance to bring in another product and keep the plant open longer,” said Ron Svajlenko, president of Uniform Local 222, in a recent statement. The plant’s flex line currently makes the Chevrolet

marks from J.D. Power and Associates. Originally set to close this past June, workers believe that it was because of their skills and efficiency that the plant was worth keeping open. Thanks to a deal made during contract talks last year among GM executives, the majority of the workers’ jobs were

expensive country for producing cars . Currently, the Canadian plant employs 650 people. As it is, the old Chevrolet Impala is staying in production for another few years as a fleet-only model, and the Chevrolet Equinox is expected to be replaced in the 2015 model year with an all-new model based on the forthcoming Chevrolet

Camaro, although production of the next-gen Camaro may go to Lansing in 2015. Other models produced at the plant include the 2014 Buick Regal and Cadillac XTS

20 - A Dealer’s Journal - November 2013

Banks Probe Car Dealers’ Loan Practice

WASHINGTON, DC—Big banks, under pressure from a federal regulator, are demanding that auto dealers prove they aren’t violating lending-discrimination laws, reigniting a struggle over regulation of the $783 billion auto loan market. At stake are hundreds of millions of dollars a year in profits that U.S. car dealers earn from arranging loans to customers. Auto dealers lobbied successfully three years ago to avoid being supervised directly by the Consumer Financial Protection Bureau as the regulator was being created. But the CFPB oversees lenders, and the agency warned them they had to assure car-loans complied with fair lending laws. The move has banks actively confronting dealers about their lending practices, raising the ire of dealers who say the regulator hasn’t provided evidence that a problem exists. For arranging the loan, the

dealer can markup the interest rate as compensation a practice called dealer markup or dealer reserve that can add hundreds of dollars to the profit on a vehicle’s sale.

The CFPB said it has found that many lenders have “weak or nonexistent fair lending compliance programs” for consumer loans outside the mortgage market, Richard Cordray, the CFPB’s director, said in a letter to House lawmakers. In recent months, thousands of dealers have received letters from banks warning them generally of the need to comply with fairlending laws, according to people

familiar with the situation. Michael J. Jackson, chief executive of AutoNation Inc., the nation’s largest dealership chain by stores, said he felt the regulatory crackdown primarily would affect smaller dealers. “If you are a retailer where your model is dependent on a wide range of markups, I think then you’re going to struggle with the transition,” Mr. Jackson said. NADA officials say loans arranged by dealers have lower rates than those from banks or credit unions. They said the average dealer markup is 0.7 of a percentage point for new cars and 1 percentage point for used cars. The Center for Responsible Lending, a Durham, N.C.-based consumer advocacy group, says the average dealer markup is higher about 2.5%, or about $700 in extra interest rate payments for a 60-month loan.

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The Auction Guide Alabama

Alaska Arizona Arkansas California Canada Colorado Loveland Auto Auction Inc. 4660 Chapman rd. Johnstown, CO 80534 Phone: 970-6694994 or 800-748-3839 Fax: 970-669-9874. Email: Matt@ Web Site: Full service auto auction, Family owned and operated for over 25 years. Connecticut Central Auto Auction 185 Welton Street Hamden, CT. 06517(New Haven) Phone: 203-787-2277 Fax: 203-787-6564 E-mail: Pres./Gen. Mngr: Peter Saldamarco, V.P./ Acting Office Mngr:Sally Saldamarco, Sales Mngr: Anthony Saldamarco, Operations Mngr: Michael Saldamarco, Dealer Liaison: Tori Richnavsky, Ove. Com Coordinator: Elise Gallup, Fleet Liquidation Specialist for Banks, Credit Unions, Leasing Companies, Rental Companies, Ect. #1 Choice of Commercial Consignors serving New England and New York, Best Pricing, Best Service, and Superior Results. Sales every Tuesday at 10:30 a.m. Dealer Consign, Absolutes, Repo's, F/L, New Car Dealer Trades, Utility Vehicles, Municipalities, Donation Vehicles, INOP Sale Via Slide Show Live & Online Thursdays 9 a.m - 4:30 p.m. Sealed Bid Sale, at 24/7. Transport, Detailing, Mechanical, Body Shop, PDR, Chip &

Scuff Touch ups, MAFS, DSC, AFC, Auto Use, Major Credit Cards/Sale Streaming Live at Delaware Florida BSCAmerica Tallahassee Auto Auction 5249 Capital Circle, SW Tallahassee, FL 32305 Phone: 850-878- 6200 * Fax: 850-942-9830 E-mail: General Manager: Doug Rodriguez Fleet Lease Manager : John Coukoulis Operations Manager: Mike Atkinson Sales: Angelia Messick & Vann Lane Marketing/ Office Manager : Linda Cyr Regular Sale FRIDAY @ 10:00am ET 1st & 4th Friday of the Month - Inops - Mechanically challenged running after the regular consignment around 12:30pm 2nd Friday of the Month - Power Sport , RV and Marine Sale after Regular Sale. 3rd Friday 5 Day Powertrain Guaranteed Sale 10:00am Featuring Approximately. 300 cars each week in three lanes. All lanes broadcast live via Simulcast. National Fleet/ Lease accounts include: PHH, ARI, Automotive Fleet Management. Loan Max(SRG) and U-HAUL Fleet sales, many local banks and credit unions. All new facilities, including 2 Bay Mechanical Shop and Reconditioning Facility, & Postsale inspections. We accept floor planning through MAFS, AFC, DSC, Car Bucks, FMC, World Omni, and others. Virtual solutions include OVE and Smart Auction - the wholesale marketplaces open 24/7.

22- A Dealer’s Journal - November 2013

ADE Auctions, Inc. Dealer only auto auction

with 3 locations in the Central Florida Area. Major floor plan companies accepted. Sanford Auto Dealers Exchange 2851 St. Johns Parkway, Sanford, FL 32772 Phone: 407328-7300 Fax: 407-321-4466 GM Joe Killory, ext.112 Office Manager Tara Napier, ext.135 SmartAuction: Ed Murphy, ext.113 Sale Day Information: Every Tuesday at 2pm 2000+ consignments every week from over 50 new car dealers, fleet, lease and bank inventory featuring Avis Budget, Markone Financial and PFS. ALLY Auto Remarketing & SmartLane at 3pm in lane 6 and online. GSA Sale, second Tuesday of every month. Sell inventory all week long with SmartAuction. Online sales at Ocala Auto Dealers Exchange 1205 Northwest 27th Avenue, Ocala, FL 34475 Phone: 352-368-5900 Fax: 352368-2051 GM: Richard Galway Office Manager Dawn Hensley Sale Day Information: Every Wednesday at 5pm 500+ weekly consignments specializing in new car dealer trades. Cocoa Auto Dealers Exchange 500 Cox Road, Cocoa, FL 32926 Phone: 321-636-2233 Fax: 321-636-9212 www. GM:John Puhl, ext.230 Office Manager Kathy Cramer, ext.226 Sale Day Information: Every Thursday at 4:30pm 500+ weekly consignments in 4 lanes. Specializing in new car dealer trades. Restaurant and transportation lot. Georgia

Hawaii Idaho

Nebraska Nevada


New Hampshire

Piazza Management Group, Criswell Chevrolet, Hagerstown Ford,Kent Parson Ford, and Hoffman Chevrolet. Rhode Island


New Jersey

South Carolina

Indiana Auto Auction 4425 West Washington Center Rd. Ft. Wayne, IN 46818 Phone: 260489-2776 Fax: 260-489-5476 Gen. Mgr: Eric Autenrieth Nat. Accounts Mgr: Don Elliot, Fleet/ Lease Mgr: Chad Horn Thurs Weekly: 10:00 a.m. Fleet, Repos and Dealer Consignment, 9:00 a.m. Wrecked & Damaged; Tues: 2:00 p.m. MonthlyHD Truck Repo Units featuring: ACC, American General, CNAC, First Investors, Hyundai Capital Finance, Pro Fed, RSA, SAC Finance, SCS Credit Corp., Vehicle Remarketing Services, Fleet lease units featuring: ARI, Avis/Budget Group, Dollar Thrifty, Emkay, Enterprise RAC, Fleet Street Remarketing llc, Flexco, Nationwide Fleet, Norfolk Southern, PAR North America, Union Bank. Major New Car Dealer Trades Featuring: Bob Rorhman Auto Group, Kelly Automotive Group, Preferred Automotive Group.

New Mexico

Carolina Auto Auction, Inc. I-85 (Exit27) & Hwy 8, Webb Road Williamston, SC 29697. Ph: 864-231-7000 Fax: 864231-7900 Every Wednesday @ 10 am, Large weekly consignment. Salvage Sale 1st & 3rd week of every month. Powersports Every 2nd Wednesday. 70+ acres, 8 Action- Packed lanes. Go to for run lists, market reports, and online bidding.

Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana

New York North Carolina North Dakota Ohio Complete Auto Auction www.completeautoauction. com. 21799 Northwest Parkway, Marysville, OH 43040 Ph: 937-642-1937, Fax: 937-6421943 Full Service Auction, 25 miles northwest of Columbus Ohio. Auctions every Tuesday afternoon at 3:00PM EST, come in person or bid on line through our web site. Vehicles failing to sell on Tuesdays are posted to our Buy It Now site with reduced prices by Thursday. We are the only auction site Honda Financial Services sells at in Ohio! See vehicle run-lists, photos and CRs at We can pick up and deliver. Great rates for Dealer Consignments. Special rates on mechanical and body work for cars bought at our auction. Buy it, fix it, ship it by Friday! Oklahoma Oregon Pennsylvania Mason Dixon Auto Auction 12876 Molly Pitcher Highway Greencastle, PA 17225 Phone: 717-597-3121 Fax: 717-597-0220 E-mail: www. General Manager: Judy Hawbaker Dealer Registration: Cindy Oberholzer +/- 500 units weekly including selections from Frederick Cheverolet,

South Dakota Tennessee Texas Utah Vermont Virginia Washington Washington D.C. West Virginia Wisconsin Wyoming Would you like to see your auction listed here and on our web site? It’s as easy as completing our guide listing form and it’s only $19.99 per month. There is no limit on the number of words and we allow you to place your company logo with your listing at no additional charge. For more information call 877-331-4350 or email

November 2013 - A Dealer’s Journal - 23

The Transportation & Suppliers Guide Alabama Roll Seal, Inc. Hicks Auto Air Bag Covers AutoCheck Winns Warranty Alaska Arizona Bank One Arkansas Auto Services Company California OPENLANE Promotional Products Safelite of America Inc. F & I Systems, Inc. TNT Auto Transport Canada Carmel Colorado Connecticut Delaware Florida Dealers Choice Auto Transport is a Florida based auto shipping company, specializing in shipping vehicles in a timely and respectful manner. Dealers Choice Auto Transport was created with the need for an auto shipping company that truly catered to the needs of the customer. Our goal is to be recognized as setting a new industry standard of efficient and caring auto shipping services. Call Dealers Choice Auto Transport and we won’t let you down. We are an FMCSA licensed U.S. auto shipping company. Browse our site for all our auto transport services or to request a quote. How we are different: Most transport companies only broker out their services and do not own their own trucks. On the other hand, we do own our trucks and broker what we can’t accommodate at any given time. We believe we

are the best and we expect nothing but the best from our associates, thus making us the Dealers Choice. When you work with Dealers Choice Auto Transport you can sleep at night knowing your vehicle is safe. Call us now and find out why more and more people are utilizing our services. Give us a call, we won’t let you down. 877-4185225 or online at Georgia Hawaii Idaho American Associated Auctioneers Illinois Montway Auto Transport ® is a nationwide car shipping company. Montway is a carrier and a broker. We can ship a car from and to any point in the U.S. Visit us online at or call our agents at 888-666-8929. Indiana About NextGear Capital: NextGear Capital is the world’s most comprehensive and innovative provider of lending products for vehicle dealers and auctions. With pioneering technology and a total commitment to customer service, NextGear Capital empowers dealers to floor plan vehicles from anywhere, at any time. NextGear Capital lines of credit can be used for a variety of purchases – Retail, Wholesale, Salvage or Specialty. The company was created by the merger of Manheim Financial Services and Dealer Services Corporation, resulting in a dynamic new industry leader that is 100% focused on helping customers shift their business to the next level. NextGear Capital 1320 City Center Drive, Suite 100 Carmel, IN 46032 • 888.969.3721 Corporate website: nextgearcapital. com please inquiries to: marketing@

24 - A Dealer’s Journal - November 2013 Iowa W.W. College of Auctioneering Kansas Blue Book Values Kentucky Louisiana Maine Maryland Triad Financial Carcannon East Coast Massachusetts Royal Administration Services AutoUse Michigan Time Auto Transport Northwood University Insight Network A/T Automotive Credit Corp. Minnesota Lomen Auto Transport Inc. 1216 Scheffer Ave St. Paul MN. 55116 Phone 800-697-0757 Fax 651-698-0811 Email or online at Providing Prompt, courteous, reliable, damage free delivery since 1975. From 1 car to 1,000 we do it all. Mississippi Missouri McNutt Automotive Logistics has long been a prominent and renowned member of the auto transportation industry since 1995. With a nationwide footprint, we have earned our reputation for setting benchmarks in auto transportation by focusing on timely deliveries and exceptional customer service. We service all auto auctions, dealerships, finance and insurance companies, remarketers, asset recovery specialists

and private individuals. We have long standing partnerships with many icons of our industry including Ally|SmartAuction, Carmax, Thrifty, Manheim, OVE and many others. We are also past recipients of Auto Remarketing’s Top 200 most influential businesses in the auto remarketing industry.We want to EARN your business! McNutt Auto Transport 7485 NE 401 Rd Lowry City, Missouri 64763 Phone: 800-755-2324 Fax: 417644-2920 Montana Nebraska Road Warriors Easy-Haul Trailers Nevada Western Funding Inc.

New Jersey New Mexico New York North Carolina Mendenhall School of Auctioneering N.A.P.A.A. North Dakota Ohio Micro21

South Carolina South Dakota Tennessee Texas Utah Vermont Virginia NADA Washington


Washington D.C. AFSA


West Virginia



Rhode Island


New Hampshire

November 2013- A Dealer’s Journal - 25

Dealer Notes: Vehicle Information:

Additional Info:

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26 - A Dealer’s Journal - November 2013

I listen to my dealers. Marina Colli

Account Executive, NextGear Capital San Diego, California

NextGear Capital makes it possible by providing tools, people and technology that can be accessed at any time, anywhere. Retail • Wholesale • Salvage • Specialty

See Marina’s story at


Inventory Finance Solutions. Simplified.


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Each one is unique. And what I love about my job is that I can offer them my years of knowledge and expertise to help them choose the floor plan term that best fits their business model.

Complete november 2013 issue