Used Car News 3/28/22

UCN

Used Car News

3/28/2022

Dealers Seek New Ways to Beat Market

IN THIS ISSUE:

• Sports/ Classic Cars • People in the News • Numbers

Photo Courtesy of Champ Tires SAVINGS: Brad Rea, owner of Champ Tires,a used-tire seller, talks with Devon Raube, a customer. Rea said independent dealers are using his products to save on reconditioning and expensive tire replacements

By Jeffrey Bellant

Independent dealers looking to succeed in a competitive market are exploring products, services and other ways to beat competitors.

Brad Rea, owner of Champ Tires, just outside of Pittsburgh, Pa., offers dealers the option of used tires to save money on reconditioning.

“Our niche is high-end used tires,” Ra said. “We buy tires with 70% and higher tread life remaining, and we try to buy them in the major brands.

“Then we visually inspect them, fill them with air, log all of the information – like tread depth – and put them on our web site.”

Online sales make Champ Tires an

Rush - Dated Material

C

M

Y

CM

MY

CY

CMY

K

option for independent dealers and Marriott.” repair shops across the country.

Champ Tires started because Rea “We sell on eBay and we sell on knows someone in the recycling our website,” Rea said. “We ship business who would get tires, some anywhere.” of which were near new.

Champ Tires sells about 7,000 Rea started on eBay and just extires per month, he said. panded.

Rea has been in business for 12 He is seeing more dealers go the years following his prior career. used route to save money in this “Before this I was a minor league economy. baseball player,” he said. “I’m from Rea sees this trend as a more rePittsburgh and played at the Uni- cent one for auto dealers. versity of Pittsburgh and I played “So, let’s say they buy a car at aucfor the Pirates. tion with Michelins and the two “It was fun, but you have to really front tires are in good shape, but the love baseball,” Rea said. “A lot of two rears need replacing,” he said. people don’t realize; a minor league “They can go on our website and season is 150 games and you’re trav- replace the two bad tires with two UCN front Mar28.pdf 1 3/18/22 11:18 AM eling ServNet on buses and not staying at the Continued on page 5

WEDNESDAY, APRIL 6

th

! y r a s r e nniv

A r u It ’s O $15,000

in cash and prizes!

Everything you buy or sell March 2 - April 6 qualiies you to win!

Prizes include:

LG - 65” Class C1 Series OLED 4K UHD Smart webOS TV

Christopher Knight Home Solomon Outdoor 33-Inch Square Fire Pit

Oculus - Quest 2 Advanced All-in-One Virtual Reality Headset

$10,000 CASH! at!* H e e r F * ! h Free Ludenalecrs only. While supplies last. d *Registere

greensboroaa.com

Greensboro, NC | 800.772.9898 | 336.299.7777

Classic Car Market 3/28/2022

Classic, Collector Car Markets Roar into Spring

By Jeffrey Bellant

Headlines may shout inflation and economic turmoil, but the sports/ classic/muscle car market continues to burn rubber.

Affordable Classics in Gladstone, Ore., just outside of Portland, is a family business owned by Juan and Judy Ruiz.

The couple has been in business since 1987. Juan said Judy has been a big part of its success. Their son, Mario, said he does “a little bit of everything” at the dealership.

“I’m a salesman, I do marketing, I buy and sell them,” Mario said.

The store focuses on specialty and classic cars.

“We try to stick with muscle cars, but then again, we carry a little bit of everything,” Mario said. “Usually, on average, we have 30 in inventory, but recently we’ve been selling cars every day. So, it’s a little lower than that.”

“I would say the average price is in the $30,000s,” Mario said.

But finding an average price at a store like Affordable Classics is tough, since it depends on the type of cars it stocks at a specific time.

“I just sold a 1968 Camaro RS/SS Tribute for $77,000,” he said. It had a 572, six-speed. It was a complete restomod.”

Restomods – combining the words “restored” and “modified” are classic cars that have been restored but can also use newer parts that might be custom-fitted and other things like modern paint, for example.

Last year, Craig Jackson, CEO of Barrett-Jackson, “The World’s Greatest Collector Car Auctions,” discussed with the press how restomods have gained in popularity, even in the traditionally old-school collector car community.

Mario said the dealership uses Classiccars.com, and its AutoHunter Seven Day Classic and Collector Car online auction.

“It’s an online auction and it spreads the word out to more clientele, getting more eyes and views on it,” Mario said. “We’ve been doing that recently with AutoHunter and it’s worked out awesome.”

The seven-day auction is exactly what it sounds like. Mario will put his cars up on the site, usually with a reserve, and he’s been pleased with the results.

“I’ve had cars that I have advertised (on other sites) where I won’t

get what I think they’re worth. Then I’ll advertise them on AutoHunter with the auction and sometimes the car brings more than what I was originally asking.

“That’s why we’ve been experimenting more and more with AutoHunter.

Another specialty car store is RK Motors of Charlotte, N.C. It’s been in business just over 10 years, according to Chief Executive Officer Larry Johns.

“We pretty much sell high-end performance and muscle cars,” Johns said. “Our bread and butter are cars from the mid-1960s forward.”

RK Motors currently tries to carry about 130 cars, but before that the store used to carry 200 to 220 regularly.

“But we find we get a lot more efficiency if we (reduce) that down a little bit and really focus on turning that faster,” Johns said.

The coronavirus pandemic affected the dealership, but not in the way Johns and Ruiz thought.

“It had a very positive effect on the demand side and then it took a little bit of time before it started to affect the supply side,” Johns said.

Sales went well but finding parts for 60- or 70-year-old cars during the supply shortages made it more challenging for RK Motors.

“We sell them faster than we can replenish them,” Johns said.

In terms of buying trends, the pandemic devastated restaurant businesses, but it didn’t slow the auto market.

“It was not affected negatively,” Mario said. “It actually affected sales positively.

“People realized during COVID that they wanted to live their lives in the position of, ‘I don’t know what’s going to happen tomorrow,’ so they wanted to buy the car now.

“The market moved up a lot during COVID.” RK Motors’ average price overall is about $81,000 and it has a target inventory.

“We call it the three Cs; Camaro, Corvette and Chevelle,” Johns said.

Reconditioning a classic car isn’t just a matter of going to the local Advanced Auto Parts store.

“Getting parts is obviously a challenge,” he said. “It gets more challenging if the car is from a different decade or has a little more vintage feel to it.”

Even the newer cars that RK Motors acquires have to meet the high-

Photo courtesy of Affordable Classics LIKE FATHER, LIKE SON: Mario and Juan Ruiz hang loose in a 1960 Lincoln, one of the cars at Affordable Classics Inc., in Gladstone, Ore., a dealership started by Juan and his wife, Judy,

est standards.

“They obviously have to have very low miles,” he said. “They have to be extraordinarily maintained. That’s the reason why we’re getting into more contemporary classics.”

These are the Challengers, Corvettes, Shelbys and Camaros, Vipers and those types of cars, he said.

“Now we’re augmenting that with some of the ‘JDM’ to try to attract the slightly younger audience” he said.

“JDM” is the Japanese domestic market cars, like the Nissan GT-Rs, Toyota Supras, Nissan Skylines, etc., Johns said.

“Younger people seem to like some of those early 2000 vehicles they interacted with virtually on video games,” Johns said. “Now you can have a Toyota Turbo Supra selling for six figures.”

All those street racing cars from the never-ending “Fast and Furious” movies also drive the younger generation’s love of these cars.

“They become legends and lore,” Johns said. “So, we’ve got to tap into that as much as we can.”

Mario is 23 years old, and his dad, Juan is 70, so they have different tastes in some cases, which brings a little variety to the lot.

“We learn from each other every day,” Mario said. “The market is always changing. So, I try to look at the cars just starting to appreciate that are coming up from the ’80s, ’90s, the ones that my dad may not (prefer).”

Mario gave an example of a type of a later classic that jumps out at him.

“Buick Grand National, 1987,” he said.

But it allows the dealership to attract different audiences for differ-

ent cars.

RK Motors has even dipped into European vehicles, like BMWs and Porsches.

“Those are low mileage, wellmaintained cars, but they have to be extremely well-documented,” Johns said. “If a buyer is going to pay top dollar for a car like that, they want to make sure it wasn’t abused on a track.”

He said it’s nice to get a vehicle history report, but can you get a readout from the actual computer in the car to see how many over-revs it experienced?

“People are taking a very factual, scientific approach to buying these cars,” Johns said.

The sports/collector/classic car market has its own set of challenges.

With the Internet, dealing in classic/collector/muscle cars is kind of a good news/bad news situation.

“It’s easier to be aware of the cars, but it’s harder to buy the car,” Johns said. “A lot of people can market their own vehicles and they can see what these cars are selling for.

“Sellers are much better-informed today, so the seller and buyer are both much more astute what the market is,” he said. “Of course, then there’s the emotional add-on. Their car is always ‘special.’

“So sometimes we have to temper the enthusiasm.”

For some sellers, the car is like a family heirloom, which makes negotiating harder, Johns said.

Finding cars in the classic/muscle car market can be a challenge.

Mario Ruiz said their cars come through a variety of sources.

One wouldn’t think a classic car store would be getting inventory Continued on page 6

3

People in the News 3/28/2022

XLerate Announces New Posts

XLerate Group, the parent company of America’s Auto Auction (AAA), named Melissa Miller as director of marketing and Kaetlin Sherk as national sales manager.

The new positions take effect immediately.

“Melissa Miller has worked in the auction industry for more than 26 years,” said Chuck Tapp, executive vice president of AAA. “She’s been a noteworMelissa Miller thy leader at America’s Auto Auction Kansas City – growing from managing dealer sales to marketing manager – successfully leading their sales promotions, public relations, and advertising team.”

“I am truly honored to join in this

new and expanded role with America’s Auto Auction,” Miller said.

Sherk has also risen in the ranks of the auction arena from driver and block clerk to fleet/lease manager and GSM at Columbus Fair Auto Auction.

Kaetlin Shrek Pat Dudash, senior vice president of sales at AAA, praised Sherk’s success at Columbus Fair.

“We look forward to that same energy and success on a national level,” he said.”

Harness The Power of RAPTOR INTUITIVELY manage customer follow up.

FOCUS

on leads most ready to buy.

SHARPEN

the sales process with automation.

TRACK performance with dynamic insights.

Let Your Sales Soar Higher!

888.421.6533 www.autoraptor.com Automotive CRM 4

Manheim Promotes Three

Manheim recently appointed three new general managers with deep experience serving their clients, team members and communities. They include: DiAngelo Brooks has been promoted to g e n e r a l manager for Manheim Harrisonburg, which is part of the Manheim Mid-Atlantic Market Center that includes Manheim Fredericksburg, ManDiAngelo Brooks heim Baltimore-Washington and Manheim Harrisonburg.

Brooks joined Manheim in 2010 as an OVE sales coordinator and was promoted to field sales manager for Virginia and Maryland in 2011.

Most recently, he was assistant general manager at Manheim Fredericksburg where the location won the “Best Auction of the Year” award from 2016 through 2019.

David Carlucci has been promoted to general manager for Manheim New England, which is part of the Manheim Northeast Market Center that also includes Manheim New York and Manheim Albany.

He previously served as the location’s assistant general manager since 2014, where he was responsible for all aspects of auction operations. Carlucci’s 20-plus year career in the auction industry also includes numerous roles including as general manager.

Charlie Clarke has been promoted to general manager for Manheim Darlington, which is part of the Manheim Carolina Market Center that also includes Manheim North Carolina and Manheim Wilmington.

Clarke joined Manheim after college in 2001, beginning at Manheim Tennessee.

While there, he helped start the location’s Total Resource Auctions (TRA) salvage sale as well as holding the role of inside sales manager.

Following the auction’s merger with Manheim Nashville, Clarke was promoted to assistant general manager in 2016.

“As the industry and our business continue to evolve, we continue to look to our talented leaders to drive innovative solutions for our clients and our company,” said Matt Trapp, regional vice president, East Region.

Volume 27 | No.17 Published By General Media LLC USED CAR NEWS (ISSN 1555-7413) is published at : Used Car News P.O. Box 80800 St. Clair Shores, MI 48080 Phone: 586-772-5200 or 800-794-0760 Fax: 586-772-9400 www.usedcarnews.com Charles M. Thomas Founder (1947-2002) Lynda R. Thomas, Publisher Emeritus Colleen Fitzgerald, Publisher Editorial: Jeffrey Bellant, Managing Editor Ed Fitzgerald, Staff Writer Advertising: Shannon Colby, Account Manager Tony Moorby Columnist: Circulation: subs@usedcarnews.com Production: Tom Savage, Production Manager Cee Lippens, Web Master Used Car News is published every third week.

Subscribers: We print advertisements as sent to us by auctions and other advertisers. It is not possible to verify the correctness of listed vehicles in auction ads. Most lists are partial and all lists are subject to last minute changes by auto auctions, so before travelling a long distance for a particular auto auction event, contact the auction by telephone for a fax of vehicles in the sale.

Used Car News assumes no guarantees or liabilities concerning the accuracy of any advertisements. All Rights Reserved. Reproduction in any form is prohibited without the written consent of the publisher.

OUR ADVERTISING APPROVAL POLICY Payments from first time advertisers must accompany the insertion order.

Distribution is guaranteed by the USPS. The advertising reservation deadline is 12:00 noon Thursday, 11 days prior to the issue cover date.

Ad materials are due by 5 pm Friday, 10 days prior to issue cover date.

For advertising specifications please email colleen@usedcarnews.com.

Join the Conversation!

Visit Used Car News online at www.usedcarnews.com or scan this QR code with your smartphone to be taken directly to the website.

C R O S S WO R D PAGE 14

Used Car News 3/28/2022

Costs – Continued from page 1

Michelins with 80% tread so they can have a matching set.”

The savings for dealers can be significant.

“We can sell them a used Michelin for $80 as opposed to $200, so that’s a big deal for these guys,” Rea said.

This can also be a big deal in states like Pennsylvania where an annual state inspection includes the tires.

His tires are mostly at an 8/32 depth, with the lowest being 4/32, but very few at the lower end. New tires are 10/32 for passenger vehicles.

The business is starting to grow.

“We’re investing in some technology that just arrived,” he said.

It’s a scanning type of conveyor belt that reads the info on the tire and reads the tread depth.

“Right now, we’re logging everything through drop-down menus, so it’s a very labor-intensive process,” he said.

“This new technology will allow us to inventory tires at a very quick rate.”

Speaking of technology, the Carolinas Independent Automobile Dealers Association is developing its own idea to help dealers, said Executive Director John Brown.

“We just recently had our first meeting with a couple of dealers to gauge interest in a program the CIADA is going to rollout with a vendor that will save dealers time, money, staff and also make money for them,” he said.

In a nutshell, most independent dealers are small dealers and don’t have a stand-alone F&I office, even as paperwork and compliance are increasingly important.”

Brown said CIADA and Virtual Profit Solutions will soon offer a program that will provide a virtual F&I department for independent dealers.

Dealers who don’t have a big staff, but still want to get as many customers funded, can use the service – which integrates with RouteOne. “It basically becomes the F&I office

for the dealer,” Brown said.

The service also puts more money in the dealer’s profit center because the F&I service will also be selling the back end products for dealers.

“Today, if you’re not selling a GAP product or service contract, some other dealer is,” Brown said.

This gives independents – who haven’t offered these products, because of staffing or time – the opportunity to create a new income stream, Brown said.

Customers come in, fill out a credit app and it gets uploaded to the system which filters it out to lenders tailored to that customer.

It works with the dealer’s DMS, capturing the information, prints the paperwork to sign on hard copy or electronically and sets up delivery.

The system provides a phone rep that speaks to the customer at closing and presents the back end product offers.

Dealers get the profits that come

from the F&I products – minus a fee – without the cost of a dedicated F&I department and staff.

Brown plans on offering this program to his members in the near future.

Some dealers are not fighting the economic current but rolling with it.

Kristie Letizia, president of Greater Milwaukee Auto Auction, said dealers are wholesaling more because of escalating auction values.

She said it shows how independent dealers are shrewd enough to take what the market will give them, “On the retail side, dealers are evolving into selling fewer cars for higher gross, rather than getting in a competition to sell the most cars,” Letizia said “It’s saving on floorplan interest costs and making their overhead lower.

“Dealers seem to be able to change with the times and be even more profitable.”

• Used Car Leasing • Dealer Supplies • Daily Rental Program • GPS Devices • Dealer Bonds • Vehicle Funding • Collateral Protection Insurance

Power to Your Business.

Today and Tomorrow Northland Auto Solutions has been helping used car dealers with their business needs since 1990.

Call us today to see how we get help you!

800-879-3433

www.northlandautosolutions.com 5

News 3/28/2022

Classics - Continued from page 3 through trades, but Affordable Classics does acquire vehicles that way.

“A lot of what we get is from return customers,” he said. “Also, it’s a lot of word-of-mouth, My dad has been in business for so long. A lot of it is from people who come to us, even trades.”

Mario said he rarely goes out of his way to seek out a car to buy.

Why is that?

“People lie,” Mario said. “Out of 10 cars I see advertised that I’ll go and look at, maybe I’ll buy two of them.”

Some people hide things and they see their own cars as better than they are.

“A perfect car to them is a piece of (crap) to me,” he said. “It’s tough, because you have to touch it, feel it, drive it. I never buy something sight unseen.”

Classic car sellers interviewed love hat they do.

Jon Bratton, operations director, Duffy’s Classic Cars in Cedar Rapids, Iowa, has been in business since 1980.

“It’s fun,” he said. “If you’re a car enthusiast, it’s a dream job.”

Bratton said stock is mostly American cars, 1990s and older. Mustangs, classic 1950s-era Chevys, Impalas from ’58 through ’70 are a taste of the stock he carries.

He agreed that finding the right car is a challenge.

Buyers search on the Internet “every single day” and they go to auctions – sometimes classic car auctions and sometimes new-car auctions.

“Sometimes it’s just a farmer with a barn that has old cars,’ Bratton said. “But we don’t do restorations, that barn better be like a house.”

Another challenge for specialty markets is getting mechanics that can work on these cars.

“It’s hard to replace a good mechanic, so you try to keep the ones you have,” Johns said.

The store has five techs, each who might specialize in a specific model or make of car to boost efficiency.

“We have a part-time mechanic who’s been with our business for 20-25 years,” Mario said. “He knows everything.”

Bratton said his techs have been with him for a long time.

Johns’ other concern is privacy with these cars and the memory built into them through the navigation systems and even using Bluetooth for transactions in the car.

He said the dealership is concerned about violating any privacy

laws, so they will go through and reset the system using manufacturing recommendations.

Ruiz and Johns agreed that with these cars in this market – documentation sells.

That means honesty and straightforwardness is critical in this market, Mario said.

“People try to hide stuff,” he said.

“I feel bad when people get screwed because a dealer does that.”

It’s important that Ruiz’s inventory is ready to roll off the lot.

“I mean we don’t buy anything with rust or with major issues. We buy our cars turnkey, so that the buyer can enjoy it,” he said.

Mario said about 65% to 70% of their cars are bought from out of state, with a percentage going overseas.

“We shipped a ’65 Chevy Impala to New Zealand,” he said. “It was a beautiful car. It’s sad sometimes because that car spent its whole life in Oregon – I had all the documentation – and now it’s in New Zealand.”

Johns said this market is a little better insulated from the typical market pressures of the regular consumer. These consumers are typically older, with a higher net worth and positioning themselves for retirement.

“We tell customers, buy the best car you can afford, it’ll cost you the least in the long run,” Johns said.

Making sure the consumer is comfortable with the car they buy and it’s a good fit is important.

Johns said the rate of sales is outpacing the ability to buy good inventory.

“We’re probably 25% to 30% ahead of where we were a year ago at this time,” he said.

Bratton said these cars are appreciating greatly and it’s a good investment in these turbulent times.

“This market, I’ve learned, is like a rollercoaster sometimes,” Mario added. “But I have a good feeling.

Usually, the people who buy these cars, they have the money to where a changing market doesn’t stop them.”

Mario said their dealership – which typically sells 20 cars, give or take – is currently “kicking it,” and he expects it to continue, as summer nears.

“It’s fun doing this, me and my dad,” he said. “My dad has always wanted to do this his whole life. It’s why he started the business. Now I’ve joined in and helped expand it.

“You know, I love what we do. I enjoy it every day.”

APRIL, 2022 YOUR SOURCE FOR QUALITY, SELECTION AND VALUE

A broad selection of pre-owned vehicles from an industry leader ADESA Boston April 1, 8, 15, 22, 29 508-626-7000

ADESA Washington DC April 27 703-996-1100

Manheim Orlando April 5, 12, 19, 26 800-822-2886

ADESA Brasher’s April 27 916-991-5555

Columbus Fair AA April 6, 13 614-497-2000

ADESA Charlotte April 7, 21 704-587-7653

ADESA Boston April 8 508-626-7000

Manheim Milwaukee April 27 262-835-4436

Manheim Palm Beach April 13 561-790-1200

Manheim Palm Beach April 13, 14 561-790-1200

ADESA Golden Gate April 19 209-839-8000

Manheim Nashville April 13 615-773-3800

Manheim Pennsylvania April 7, 21 800-822-2886

Manheim Atlanta April 7, 20, 21 404-762-9211

Manheim Pennsylvania April 1, 7, 8, 15, 21, 22, 29 800-822-2886

Manheim Atlanta April 20 404-762-9211

Manheim New Jersey April 27 609-298-3400

ADESA Chicago April 1, 29 847-551-2151

Manheim Dallas April 13, 26, 27 877-860-1651

Manheim Phoenix April 7, 14, 21, 28 623-907-7000

Manheim Dallas April 26 877-860-1651

Manheim Orlando April 26 800-822-2886

ADESA Cincinnati/Dayton April 5 937-746-4000

Manheim Denver April 27 800-822-1177

Manheim Pittsburgh April 27 724-452-5555

ADESA Golden Gate April 5, 19 209-839-8000

Manheim Detroit April 7, 21 734-654-7100

Manheim Riverside April 12, 14, 26, 28 951-689-6000

ADESA Indianapolis April 5, 19 317-838-8000

Manheim Fredericksburg April 14, 28 540-368-3400

Manheim Seattle April 6, 20 206-762-1600

ADESA Kansas City April 5, 19 816-525-1100

Manheim Milwaukee April 13, 27 262-835-4436

Manheim Southern California April 7, 21 909-822-2261

ADESA Lexington April 14 859-263-5163

Manheim Minneapolis April 20 763-425-7653

Manheim Tampa April 7, 21, 28 800-622-7292

ADESA New Jersey April 7, 21 908-725-2200

Manheim Nashville April 12, 13 615-773-3800

Manheim Texas Hobby April 7, 21 713 649-8233

ADESA Salt Lake April 12 801-322-1234

Manheim New Jersey April 13, 27 609-298-3400

Southern AA April 27 860-292-7500

ADESA Tulsa April 8 918-437-9044

Manheim New Orleans April 13 985-643-2061

Manheim Atlanta April 20 404-762-9211

Manheim Riverside April 14, 28 951-689-6000

ADESA Boston April 15 508-626-7000

Manheim Fredericksburg April 28 540-368-3400

Manheim Pittsburgh April 27 724-452-5555

ADESA Salt Lake April 12 801-322-1234

Manheim New Jersey April 13 609-298-3400

Manheim Seattle April 20 206-762-1600

Columbus Fair AA April 6 614-497-2000

Manheim Orlando April 19 800-337-8491

Manheim Southern California April 7, 21 909-822-2261

Manheim Denver April 27 800-822-1177

Manheim Pennsylvania April 8, 22 800-833-2886

Southern AA April 27 860-292-7500

ADESA Golden Gate April 19 209-839-8000

Manheim Milwaukee April 27 262-835-4436

Manheim Atlanta April 20 404-762-9211

Manheim Nashville April 13 615-773-3800

Manheim Dallas April 26 877-860-1651

Manheim Palm Beach April 13 561-790-1200

Manheim Pennsylvania April 7, 21 800-833-2886 Manheim Riverside April 14, 28 951-689-6000

Choose Chase on ADESA.com and OVE.com for quality bank-sourced vehicles.

Contact auctions directly for current sale information.

The Jaguar word mark, the Jaguar logo, and Jaguar Financial Group are trademarks of Jaguar Land Rover Limited and any use by JPMorgan Chase Bank, N.A. (“Chase”) is under license. The Land Rover word mark, the Land Rover and Oval logo, and Land Rover Financial Group are trademarks of Jaguar Land Rover Limited and any use by JPMorgan Chase Bank, N.A. (“Chase”) is under license.

The tradename “Subaru Motors Finance” and the Subaru logo are owned / licensed by Subaru of America, Inc. and are licensed to JPMorgan Chase Bank, N.A. (“Chase”).

Maserati Capital USA, the Maserati logo and model designations are registered trademarks used by JPMorgan Chase Bank, N.A. (“Chase”) under license from Maserati S.p.A. The tradename “Aston Martin Financial Services” and the Aston Martin logo are owned by Aston Martin Lagonda Limited and are licensed to JPMorgan Chase Bank, N.A. (“Chase”).

Neither JPMorgan Chase Bank, N.A. (“Chase”) nor any of its affiliates are affiliated with ADESA, Inc. or Manheim, Inc. Each auction is solely responsible for their website content, sales events, promotions, fulfillment and operation of the auction. ©2022 JPMorgan Chase Bank, N.A. Member FDIC (22-004) 04/22

Retail Markets 3/28/2022 Compiled by Ed Fitzgerald

IOWA

Jeff Schneider, owner, Pocahontas Sales & Service, Pocahontas, Iowa “We’ve been in business for 15 years.

“The average size of our inventory was 70 pre-COVID; post-COVID, 35. Our sales were 25-30 a month pre-COVID, post-COVID it’s 15-20.

“Pickups have been a hot ticket for a long time, now gas keeps going up every day.

I was just watching an online auction and they were asking $5,000 over full list for a Honda Fit, because it’s little pocket-sized car. The fuel prices will cause the market to shift, almost overnight, to the fuel-efficient vehicles.

“Starting out now in the car business would be like starting out farming and not having any land. Buildings, property, rental, everything has doubled since I got into

8

the business.

“It’s hard to find inventory. I was just dealing with a guy who wanted to trade down. I said ‘that’s fine, we can do that, your truck is worth $40,000 as a trade-in.’

He said, ‘that’s funny I paid $35,000 for it two years ago.’

A lot of the market is speculation and fear driven.

“Someone who is bringing in a PT Cruiser that needs a new timing belt for $1,000. Well, he thinks that’s not worth fixing, it’s only a $1,500 car. I say to him, well, what are you going to buy for $1,000?

“I’ve been buying most of my high-end stuff online.

The auction I usually take stuff to, if I want to get the best bang, is the Des Moines Auto Auction.

“As far as recon, one car may need very little and the next one needs windshield, tires, brakes, sparks plugs.

Parts are hard to get.

“Most industrial workers, factory workers, are living paycheck to paycheck and all of a sudden, their gas bill doubles. My wife and I used to drive separate to the store here, now we drive together.

“I do some advertising on the local radio stations.

“My import inventory is very low. Coming into the fall, the crossovers were big, the Traverses, Equinoxes.

Also, the Ford Escape and Ford Edge.

“The last car I sold was a 2014 Silverado crew cab with 130,000 miles. That’s the guy who traded down and I’m going to be writing him a check. ”

MICHIGAN

Shannon Keefer, owner, Encore Motor Cars, Grand Rapids, Mich.

“I’ve been in business for 15 years, two locations. I

managed a Lexus dealer before that.

“I used to keep about 25 cars in inventory, now I’m down to about 10-12. It’s so hard to find cars and they’re so expensive. You can’t sell out of an empty basket. One good thing is that Kelley Blue Book and NADA have finally caught up to the value increases.

“The cars that were affected the most were the 3- to 4-year-old cars with under 100,000 miles.

“I don’t like to finance my cars, and I do a lot with private parties “I spend about $300-400 on reconditioning. The detailing is $150. I have a retired master tech doing all the safety checks.

“You want to make the cars nice; you don’t want them to come back with problems.

Just fix it. You might make a little less on the car, but

you’ll have a happy customer.

“If someone has a good experience, they might tell two people.

“If they have a bad experience they tell 10 people.

“We advertise on AutoTrader, Craigslist and Facebook Marketplace. Sometimes there are opportunists out there.

They’ll leave the title open, saying ‘oh, I don’t know if the car is going to my aunt or my cousin.’

“It’s not a big deal but it’s not right. You’re supposed to put it in your name and pay the sales tax. And then they’ll just flip the car, and that can give the car business a bad name.

“It’s still a fun business and I enjoy it, and maybe in four or five years I can retire.

“The last car I sold was a 2004 LX250 with 105,000 miles, I sold it for $27,995.”

SVR502

619–639–0245

Wholesale Markets 3/28/2022 Compiled by Jeffrey Bellant

MINNESOTA Rob Thompson, owner, Mid-State Auto Auction, New York Mills, Minn.

“It has been very snowy and cold from the end of December through March “We’re in our 39th year. We have four lanes. But we’ve been running about 450 cars through three lanes. “(Despite COVID) 2020 was the best year we had up until that point. Then last year, we blew the doors off 2020.

“It has gotten a little tougher this year. I don’t know if it’s just supply or because it’s been so bitter cold here.

“This week (mid-March) is the first week we’ve had some nice weather, and our consignment has been strong.

“Conversion rates have been really consistent, in the 65-68% range.

10

“We’re drawing about 200 to 250 dealers in the lanes, depending on the weather.

“I’m talking to dealers recently and it sounds like the tax money is starting to come and it’s picking up. ““Pre-COVID our average price was probably in the $7,000 to $8,000 range. Now we’re closer to $12,000.

“We’ve been selling a lot of cars online. We use Edge Pipeline.

“I would say 80% of our cars are dealer consignment.

“But we’ve been picking up some more commercial accounts recently.

“We had a huge lull in repos and they’re starting to trickle back.

“We also have a GSA sale once a month. Typically, we don’t get huge numbers until the end of March. Those cars have been selling well and the bidding has been robust. As we move into the

better months, we will get 100 to 150.

“Overall, the supply is still not where it used to be. I’m still seeing cars sell feverishly.

“I’m pretty optimistic.

WISCONSIN

Kristie Letizia, president, Greater Milwaukee Auto Auction, Milwaukee, Wis. “We’ve been in business 19 years. We have five lanes and we’re running five lanes.

“You know, our volumes are growing again. We fell initially because of the consignment drop during COVID. Now we’re starting to grow again.

“Dealers were so happy to have the live auction back and they thank us all the time for that.

Also, Ally Financial, our fleet/lease account is happy to have the cars cross the

(physical) block. It’s very important to them because more and more dealers are coming into the lanes.

“We have almost 400 dealers in the lanes, on top of people across the whole country bidding online.

We’ve got at least 100 bidders online. We use Edge Pipeline.

“We’re cultivating better relationships, stronger relationships and improving our processes as we’re growing back now.

“We’re going to run about 550 this week (at press time). We fell to 400 at one time during the winter, but we’re getting back up.

“Every week it’s growing stronger and stronger. So, we’re excited. “(Our mix) is probably 75% dealer consignment and 25% fleet/lease.

“In addition to Ally, we’ve got CNAC. We’ve got quite a

few repos and donation cars.

“We also have a lane – which specializes in latermodel cars – where a dealer can run their cars along with the Ally Financial cars.

“Our average price across the block has gone from $3,000 pre-COVID to $12,000.

“A lot of times in the past, a dealer would buy a car 60 or 90 days ago and normally they couldn’t get out of it.

“Now, if they bought a car – 60 days ago – even a couple of weeks ago – they make money on it. The market is just going up every week.

“This has never happened in my lifetime and I’ve got 30 years’ experience. None of us can believe it – an appreciating value in used cars.

“We’re still seeing a demand for trucks. A guy driving a truck isn’t going to get out of his truck because of gas prices.”

Wholesale Numbers 3/28/2022 seg/type ---------Car Car Car Car Car Car Car Car Car Car Truck Truck Truck Truck Truck Truck Truck Truck Truck Truck Car Car Car Car Car Car Car Car Car Car Truck Truck Truck Truck Truck Truck Truck Truck Truck Truck Car Car Car Car Car Car Car Car Car Car Truck Truck Truck Truck Truck Truck Truck Truck Truck Car Car Car Car Car Car Car Car Car Car Truck Truck Truck Truck Truck Truck Truck Truck Truck

make/model/name ---------- ---------Honda Civic Toyota Camry Toyota Corolla Nissan Altima Nissan Sentra Hyundai Elantra Chevrolet Malibu Hyundai Sonata Ford Fusion Ford Mustang Ford F150 Chevrolet Silverado 1500 Jeep Grand Cherokee Honda CR-V Ram 1500 Toyota RAV4 Toyota Tacoma Ford Explorer Ford Escape Chevrolet Equinox Honda Civic Toyota Camry Toyota Corolla Nissan Altima Nissan Sentra Hyundai Elantra Chevrolet Malibu Hyundai Sonata Ford Fusion Ford Mustang Ford F150 Chevrolet Silverado 1500 Jeep Grand Cherokee Honda CR-V Ram 1500 Toyota RAV4 Toyota Tacoma Ford Explorer Ford Escape Chevrolet Equinox Honda Civic Toyota Camry Toyota Corolla Nissan Altima Nissan Sentra Hyundai Elantra Chevrolet Malibu Hyundai Sonata Ford Fusion Ford Mustang Ford F150 Chevrolet Silverado 1500 Jeep Grand Cherokee Honda CR-V Toyota RAV4 Toyota Tacoma Ford Explorer Ford Escape Chevrolet Equinox Honda Civic Toyota Camry Toyota Corolla Nissan Altima Nissan Sentra Hyundai Elantra Chevrolet Malibu Hyundai Sonata Ford Fusion Ford Mustang Ford F150 Chevrolet Silverado 1500 Jeep Grand Cherokee Honda CR-V Toyota RAV4 Toyota Tacoma Ford Explorer Ford Escape Chevrolet Equinox

2021-03-01 ---------10300 11800 9350 9550 7950 8300 11425 10000 10300 15375 27000 28700 19700 16750 25600 14050 25625 19875 10675 11675 12100 14300 11150 11000 9450 9550 12450 11550 11450 16650 29500 30700 21075 18775 27400 15775 27225 21350 12425 13450 13350 15050 12700 13575 11550 11300 13650 13450 12750 18100 31500 35200 22350 21025 18950 29200 22825 14500 15175 14750 17100 14300 15325 13650 12450 15250 16600 14300 20350 34400 37200 26000 22400 20425 31350 28000 17575 17450

2021-09-01 ---------13550 14200 12450 12025 11250 11400 14225 12900 13750 20350 29000 31500 22350 20900 27500 17575 29050 22675 13675 14600 15300 17850 14750 14525 13200 13150 16175 15475 16300 21625 33800 34500 24425 22750 31500 20225 30775 25150 16325 18950 17050 18825 16850 18600 15650 14600 18150 17675 18250 23725 36500 38500 26975 25325 23875 33025 27950 18900 20425 19000 20750 18300 20025 18250 16200 19650 21225 20150 25175 40200 41500 31575 26850 25425 35200 33075 23000 22150

2022-03-01 ---------15250 15825 14275 13150 12050 12150 15100 13275 15275 19200 29100 31000 22900 22525 28200 19375 30350 24000 14275 15400 17150 20150 16325 15850 14575 14450 17725 17125 18350 21125 32000 35200 25625 25075 32000 22300 33150 26700 17875 20300 19000 22075 18450 20300 17450 16800 20000 19775 19950 23625 36900 39500 28375 28000 25900 34950 28775 20400 22050 21000 24500 20500 22250 20225 19075 22200 23900 22475 25400 40000 42700 32425 30800 28625 36825 33775 24675 24875

2023-03-01 ---------12225 12925 11400 10125 9075 9175 11200 10825 11900 15525 23950 25800 16750 18050 23450 15525 26400 18150 10950 11675 13825 16200 12975 12225 11025 11050 13225 13525 14100 17300 27000 29300 18975 20150 26550 17625 28825 20675 13600 15500 15500 17775 14700 15575 13000 12975 15350 15775 15700 19375 30575 33050 21450 22475 20675 30600 23025 15750 17300 17400 19625 16725 17125 15900 15300 17200 19100 17975 21500 34300 36025 25025 25000 23100 32375 27850 19550 19900

2024-03-01 ---------9700 10275 9050 7700 6775 6900 8275 8700 9100 12275 20325 22300 12325 14800 20250 12700 23550 14200 8500 9075 11025 12775 10325 9225 8175 8250 9775 10650 10700 13825 23425 25325 14025 16600 22950 14350 25775 16450 10450 12050 12525 14125 11650 11550 9600 9750 11550 12375 12075 15450 26700 28725 16150 18650 17075 27475 18875 12250 13725 14200 15500 13550 12750 12375 11725 13125 15175 13950 17700 30500 31675 19250 20925 19300 29175 23400 15550 16150

Actual Wholesale and Projected Residual Values

MY -----2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020

Source: Black Book

TIRED OF BEING TREATED LIKE YOU BOUGHT HALF PRICED TICKETS?

OUR PERSONAL TOUCH MAKES YOU FEEL LIKE A V.I.P. Our personal service and extensive experience is what sets us apart.

We partner with you to achieve your goals.

Your success is our success.

Auction Every Thursday at 9am In-person and Online daarockies.com 303.289.7716 | 7175 York Street | Denver

Auction Every Wednesday at 11:30am In-person and Online daasw.com 602.253.7766 | 1433 S. 19th Avenue | Phoenix

Disconnected Jottings From

Tony Moorby 3/28/2022

Tony Moorby Occasionally I used to let off steam in this column to express exasperation, frustration and every so often, congratulation over politics and politicians. I’m less inclined to do so nowadays and not just for fear of offending sensitive opposing views. It’s me that’s pulled in every direction in these times.

I was always a fairly committed conservative, favoring the philosophies of pulling your own boots on while allowing a civil and successful society to look after the less fortunate.

The older I get, the more I embrace the common good.

Don’t misunderstand me – I’m no socialist nor will I be.

Pandemic has drawn political sides to extremes of beliefs to the point of becoming selfish beyond previous norms and behaviors.

I lost my identical twin

brother at the outset of the spread of the coronavirus and trust me there is no human relationship that is closer or more attached. I say this, not for sympathy, but it set my stance on how I should deal with my social responsibilities and thus, put me at odds with many; friends, family, acquaintances and even strangers.

Those actions of masking and being vaccinated seemed to put me in some pre-disposed political camp.

Not so! I’m still a conservative but note the small ‘c’.

I’m no extremist so that puts me out of the Trump camp and I was never in the Biden camp, disproving that if you’re not in one, you must be in the other. I voted for neither – for the first time in my eligible life I didn’t vote at all. It’s an uncomfortable position and I’ll admit to a sense of be-

wilderment that no one in Congress represents or mirrors my views anymore.

Perhaps the current invasion of the Ukraine might re-align folks’ senses of being American and getting back to unity and (admittedly) old-fashioned values.

Remember the first couple of months after 9/11 when people were actually nice and polite to one another?

Many readers may be too young to recollect.

The Ukrainian conflict proves how small the world is as we watch the Russians flaunt every rule in the wartime playbook at the behest of a tyrannical maniac – Vladimir Putin, who has lied through his miserable teeth to fool his people his actions are right. Now he’s like a sewer rat in a corner – nowhere to go and even more dangerous. Perhaps his demise will resemble that of

33. Temperature control, for short 34. Luxury midsize sedan (maker and model) 38. Jeep premium SUV 40. Music system 44. Accountant, abbr.

45. Request to Vanna White, 2 words 46. Jaguar model, 2 words 47. VW SUV Down 1. GMC SUV 2. Honda hatchback 3. Rowing equipment 4. Toyota minivan 5. Hyundai compact sedan 6. Nissan subcompact 7. Dribble out slowly 9. Electron volt, for short 12. Honda SUV

14. Lamborghini sports car 17. Business degree, abbr.

19. Nissan pick-up truck 21. Fuel 23. Good buys 25. How you buy a used car, often, 2 words 26. Auto efficiency measurement, abbr.

27. Factor in the price 28. Rowing crew director 29. Hyundai subcompact 30. Florida neighbor, abbr.

32. Made in ____ 35. Off-roading vehicle, abbr.

36. Level 37. In the old days

1

2

power corrupting and ultimate power corrupting ultimately ends in “most great men are bad men.” The only great thing about Putin is the breadth of his (awful) influence. He sees his parallel in Stalin and Lenin.

Too close for comfort.

3

4 8

10

5

6

7

9 11

12 13

14

18

19

20

15

16

21

17

22

23

24

25

26

27 29

31

32

28

30

33

34

35

36

37 38

39

40

41

42

44 46

38. Optional part of a car wash service 39. In high spirits 40. Place to relax

1

9

K L

45

E

D

23

N X S

I

O

18

D

U

42. Cleaning cloth

29

A

S

U N

38

J

I

L

I

S

G

E R 28

G

M T

O 19

M

26

V

A

I

T

Y

N

C

S

S

K I

A

N 14

S

20

N S

33

O R

L

30

A

34

N

N

41

T

A

T T

24

C

C

O

R M

K

L

E

A

R

N

O

A

21

S

Y

C

I

A

R

K

36

G

31

L A

O

P

T

C

T

42

16

N

U

N

R

S

22

O

O

S

27

E

8

A

D

I

35

I

A

S T

R A

A

A

39

U

7

R

E I

I S

6

O

S

U U

E P

13

B

P

A

E

D

L

N A

5

A M B A

V

A

4

11

I

L

32

10

L

A T

F

40

T

S

L

E

A W E T

3

A

O

12 15

17

2

E

A

25

44. Copper symbol

O

O

41. Road surface 43. Lubricate

43

47

Solution to this puzzle in the 4/18/2022 issue. Call 1.800.794.0760 for a FREE subscription.

14

To see past columns from Tony Moorby, visit www.usedcarnews.com/ columnists/tony-moorby

Play Online at Us e d C a r N e ws. co m

By Myles Mellor

Across 1. Hyundai SUV 4. Alfa Romeo SUV 8. Hawaiian wreath 10. British luxury sedans of old 11. Hyundai midsize crossover 13. Made an electrical bridge 15. Former Saturn car 16. People working together to get the job done 18. Lug ___ 20. Excited 22. Miata and CX-5 makers 24. Cave dweller, frequently 26. Titanium and steel 27. Mercedes luxury compact 30. A while back 31. Crud

• 50-year veteran of the industry • President from 1997– 2000 of ADT Automotive • Served as ADESA’s executive vice president of sales and marketing • Moorby & Associates 2006–present • NAAA Hall of Famer • IARA Circle of Excellence

the Czars, once his folly is discovered by his populace.

The Russians have a history of revolution; maybe now’s a good time for another one.

At this writing, Volodymyr Zelenskyy’s Churchillian, heroic efforts have shocked the world – from comedian to capitalist crusader in the face of war criminals who are blindly following orders, probably in fear of their own lives on loan from a dictator.

Putin exacts revenge on oppositionists on his doorstep while bleeding his country dry as he siphons off billions for himself and his cronies. The average annual income in central Russia is less than that of the poverty-stricken people of India. If you’re earning less than $800 a year, sanctions don’t mean a whit. Let’s hope the oligarchs feel the pinch and quickly.

Lord Acton’s quote about

37

Y

E L

Solution to the 3/8/2022 puzzle

D

S

Online Auctions. Done Right.

PHOTOGRAPHER: @automotive_alex

7-day classic and modern collector car auctions Submit Your Vehicles For Auction Here

ATTENTION DEALERS: Submit your specialty and hard-to-move inventory for immediate 7 day sale: www.Autohunter.com/Sell-Your-Vehicle