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Looking for Young Leaders Program Seeks Auctions’ Next Generation

By Jeffrey Bellant

CHICAGO – Auction veterans and future leaders are being called to the classroom for a new venture dubbed Auction Academy.

Pierre Pons, president of remarketing consultancy TPC Management Co., introduced the plan during the recent National Auto Auction Association convention.

Pons said the idea came to him after talking with auction operators Lynn Weaver and Bob McConkey about how to train the next generation of auction leaders.

The solution was a twotrack program. One will be the Auction Performance Group for auction owners and general managers, which will act like a traditional 20 group, Pons said.

The second portion, called the Next Generation Leaders

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course, is what excites Pons.

The goal is to draw 10 to 15 students made up of sons, daughters and other family members of independent auction owners.

The program will include quarterly meetings, classroom assignments and other course work.

“But the dynamic of the program is this: you’ll have a group of 10 to 15 young people who will get to know each other,” Pons said.

“They’ll get to (talk) together and go through this together.

These students will be the next leaders of our industry.”

Pons said his hope is that veterans of the industry will participate by becoming faculty of the academy. He said the program will pick the brains of people who are the best in their areas of expertise.

For example, an auction veteran whose strength is in human resources would lead a course in that subject, while a general manager who’s the best in facilities design would teach that class.

Pons hopes to draw enough participants before the end of the year to open the program.

TPC Management will dedicate one full-time person to lead and manage the program, he said.

The initial plan is to have quarterly meetings, beginning in Nashville, where Pons is based.

Photo by Jeffrey Bellant WE WANT YOU: Pierre Pons, president of TPC Management Co., is calling for students and teachers for a new Auction Academy he is developing. The academy would serve as an MBA-type program for future leaders in the auction business. Pons announced the new program in Chicago last month.

The meetings would include auction tours, along with field trips.

For instance, there might be an excursion to a commercial leasing company to learn about that end of the operation, he said.

Pons earned an MBA through a weekend program at Vanderbilt University. He

sees a similar set-up for this program.

The Next Generation section would be a two-year program, starting chronologically with a course on facility design moving all the way to conflict resolution and reconditioning.

About 17 courses are planned for the program.

The cost and schedule will be determined, Pons said.

Pons expects the first session to kick off by the first quarter of 2012.

The Auction Performance 20 group would be dependent on the number of auctions interested, with a minimum of 10 needed, Pons said.

IN THIS ISSUE • Manheim CEO says parent company is committed to auctions. – Page 3

• Consultant advises dealers to improve underwriting. – Page 8

• Dealer teams with motorcycle club to help sick child. – Page 6

• Volkswagen issues recall on mostpopular models. – Page 12

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Auctions Still Manheim’s Focus “We probably would have had a sale if the roads weren’t Manheim President Sandy closed,” said Tim Janego, Schwartz learned a lesson Manheim’s regional vice about the resiliency of auto president of operations. auctions this past summer.

The visit to Skyline reflects

By Ted Craig

“I’m not a micromanager, but I am hands on.”

– Sandy Schwartz

Schwartz and other Manheim executives traveled to New Jersey from Atlanta in late August after Hurricane Irene flooded Manheim NY Metro Skyline.

Schwartz brought 35 pizzas with him. He found a staff building up a good appetite working to get the auction back up and running.

Skyline only lost one sale due to the efforts of the staff.

The only reason for that cancellation was a lack of access.

Schwartz’s management style.

“I’m not a micromanager, but I am hands on,” he said.

Schwartz took over the auction chain earlier this year, following the departure of long-time CEO Dean Eisner.

He may be new to the auction business, but Schwartz has spent the last quarter of a century working for Cox Enterprises, Manheim’s parent company.

He started his career as a reporter at one of Cox’s newspapers. That background shows in his approach to the new position.

“I ask a lot of questions,” Schwartz said.

There are plenty of questions being asked these days about the auction business.

One of them is, Will Cox stay in it?

It’s hard to imagine Cox exiting a business in which it’s built itself into the largest player in the world. Still, the company’s origins trace back to newspaper publisher James Cox and yet the private company now only prints three newspapers.

Schwartz said Cox’s owners love the automotive business and are dedicated to it for the foreseeable future.

The company is downsizing its physical presence after years of growth, however.

Manheim exited China after finding that market too difficult. In the United States, it closed a half dozen

auctions in cities where there was at least one other Manheim operation.

The company’s executives quickly pointed out the sales continue even if the facilities were shuttered.

There’s potential for more consolidation, the executives said, such as in the heavily saturated Florida market.

Any decision will be carefully considered, Schwartz said.

“We’re not going to close an auction to save a few dollars,” he said.

Even if Manheim keeps every existing facility open, Schwartz said he cannot see adding another lane, possibly ever.

That’s because more sales are moving to the Internet.

Schwartz said he sees a time when half of all sales take place online.

That means there will remain a place for physical auctions, he said. Manheim has no plans for moving every sale online the way salvage auction chain Copart Inc. did.

Schwartz said the goal is

being ready for the ebbs and flows of inventory and for the ways in which customers want to buy and sell those vehicles.

More often, those sales are taking place using mobile devices, such as smartphones.

The ability to offer a lot of inventory online is one way Manheim helps dealers cope with the overall lack of supply today, Schwartz said.

It provides access to vehicles outside their markets.

The shortage will end someday, said Nick Peluso, Manheim’s senior vice president of customer management. And Peluso believes that time will come sooner than expected.

“People have been driving these cars for a while and though they’re getting much better, years are still years,” he said.

Schwartz said whatever happens with inventory, his goal is to ensure Manheim processes what it gets in the most efficient and effective manner.

Wholesale Prices Down, Sales Up Wholesales prices continue to decline, but they’re still high by historical standards.

The Manheim Used Vehicle Value Index declined for the fourth consecutive month in September. It now stands at 122.9, which represents a 3.4 percent increase from a year ago.

The decline of 2.5 percent in wholesale prices during the third quarter was the sharpest since the fourth quarter of 2008. But overall wholesale values are higher than any reasonable historical measure, said Manheim chief economist Tom Webb.

That’s due to strong retail demand, despite the dismal economic backdrop, and low wholesale supplies, Webb said.

September offered some relief from the tight supply.

New vehicles sold at a seasonally adjusted annual rate of more than 13 million in September, an increase of 10 percent from a year ago. That led to more trade-ins and higher dealer consignment volumes.

According to CNW Marketing Research, used vehicle retail sales at franchised dealerships rose 11.5 percent in

September.

Total used vehicle retail sales (including independent and private-party transactions) rose 4.6 percent during the month, and were up 4 percent for the first nine months of the year.

September certified preowned sales were 141,516, up 4.6 percent from September 2010, and down 3.2 percent from the prior month.

September year-to-date sales were 1,307,041, up 6.2 percent from September YTD 2010.

Toyota once again lead the way with 27,193 ceritifed units sold.

A significant portion of September’s sales gain was the result of attractive incentives being used to pare down the inventory level of new pick-up trucks, Webb said.

Despite the incentive activity, wholesale valuations for used pickups outperformed the overall market in September due to the lack of supply of late-model units.

“With fewer two- and three-year-old pickups being offered in the wholesale market, the normal transmission mechanism by which incentives depress residuals was

disrupted,” Webb said.

Most other segments face little downward pressure from new cars.

TrueCar.com estimates the average transaction price for light vehicles in the United States was $29,439 in September, up $358 (1.2 percent) from September 2010 and down $17 (0.1 percent) from August.

In addition, TrueCar.com estimated that the average incentive for light-vehicles was $2,716 in September, down $24 (0.9 percent) from September 2010 and up $101 (3.9 percent) from August.

TrueCar.com estimated that the ratio of incentives to average transaction price for light-vehicles was 9.2 percent in September, down from 9.4 percent in September 2010 and up from 8.9 percent in August.

Off-rental volumes had their first significant yearover-over increase in September, and pricing remained high as the average sale price barely slipped below $14,000.

Expectations are that offrental volumes in the fourth quarter will be above the year-ago level and that pricing will remain firm.

Ford/Lincoln/Mercury Ford Lincoln/Mercury GM Buick Chevrolet GMC Pontiac Saturn Hummer Cadillac GM Total Chrysler/Dodge/Jeep Chrysler Dodge Jeep Total Domestics Honda Acura Nissan Infiniti Toyota Lexus Hyundai Kia Mazda Mitsubishi - EST Subaru Total Asian Audi Bentley - EST. BMW Jaguar Land Rover Mercedes-Benz MINI Porsche Saab Volkswagen Maserati Volvo Car Total European Total

Sept. ‘11 10,654 8,786 1,868 22,956 1,678 15,762 3,154 1,529 833 32 1,802 24,790 9,770 2,106 4,086 3,578 45,214 17,694 3,531 8,633 1,126 27,193 5,450 5,116 977 1,605 30 1,875 73,230 2,871 30 6,400 266 38 5,707 190 714 67 5,628 32 1,129 23,072

Sept. ‘10 10,064 8,635 1,429 22,064 1,551 13,656 2,757 3,238 862 69 1,998 24,131 8,938 2,343 3,474 3,121 43,133 18,204 3,679 7,411 885 24,988 5,609 2,195 562 1,250 47 1,776 66,606 2,275 30 9,189 387 232 6,248 132 621 206 4,869 29 1,363 25,581

141,516

135,320

‘11 YTD 96,591 80,802 15,789 213,584 15,022 139,520 29,944 20,091 9,007 508 17,860 231,952 86,010 23,506 32,393 30,111 414,553 172,289 36,989 67,216 9,746 251,948 52,501 33,650 6,443 13,822 380 17,673 662,657 28,389 270 64,496 2,987 1,353 57,363 1,606 6,597 787 55,954 261 9,768 229,831

‘10 YTD 101,444 86,792 14,652 208,105 14,355 130,215 26,168 29,379 7,988 968 19,234 228,307 80,161 21,601 31,688 26,872 409,912 153,756 33,363 61,618 8,562 234,290 50,015 15,904 5,387 6,250 410 14,673 584,228 21,025 270 85,169 3,219 2,230 60,968 1,630 5,647 2,097 40,618 188 13,615 236,676

1,307,041 1,230,816

Source: Autodata Corporation

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NEWS BRIEFS Edmunds Updates Android App

Edmunds.com has updated its Android smartphone app to allow for more thorough research of both new cars and used cars.

The used car features added to the latest update now offer users the ability to research the specifications of used vehicles and to configure and appraise them with trade-in, private party, and retail prices based on Edmunds.com’s True Market Value calculations.

In addition to used car pricing and specifications, the updated app has also added a new color options gallery that allows users to see pictures of a model in all of its available colors. The updated app also incorporates feedback from users that improves the way information is organized for both new and used cars.

NAAA Adopts Announcement Standard

In its ongoing efforts to standardize the remarketing industry for enhanced customer service and satisfaction, the National Auto Auction Association has adopted an Auction Block Announcement Standard.

The organization’s board approved the set of minimum recommended announcements at its conference last

month in Chicago.

Now in effect, the Auction Block Announcement Standard can be found online at the association’s web site, NAAA.com.

The standard represents a collection of the basic, commonly agreed upon Auction Block announcements compiled by the NAAA Standards Committee from the existing ones shared with reporting agencies and data services. The committee identified those that made the most common sense to communicate for fostering customer confidence.

NAAA, a trade association with more than 300 members representing the leading remarketers of used vehicles in the world, recognized the need for an announcement standard because that information potentially lives on with the vehicle, even outside the wholesale industry.

The announcement standard is neither all encompassing nor limiting, and does not mandate anything.

Both AutoCheck and Carfax have endorsed the standard.

C R O S S WO R D

by Myles Mellor

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CPS Closes Second Securitization, Third in Company History

four classes. Ratings of the notes were provided by Standard & Poor’s and were based on the structure of Consumer Portfolio Services Inc. the transaction, the historical perannounced the closing of its second formance of similar receivables and rated term securitization in 2011. CPS’s experience as a servicer.

The transaction is CPS’s third senior subordinate securitization since Silver Falls From Top Spot 1993.

PPG Industries, a manufacturer of In the transaction, qualified insti- transportation coatings, reported tutional buyers purchased $110 that white topped all colors as most million of asset-backed notes secured popular for vehicles globally. by automobile receivables purchased The company reported that 21

by CPS primarily in 2011. The sold percent of 2011 model-year cars notes, issued by CPS Auto worldwide were white.

Receivables Trust 2011-B, consist of Close behind were silver and black.

Published By General Media LLC USED CAR NEWS (ISSN 1555-7413) is published at

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of each month.

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 Please submit clear, legible copy. Payments from first time advertisers must accompany the insertion order. Distribution is guaranteed by U.S. Postal Carriers.

The advertising reservation deadline is 5:00 p.m. Friday, 10 days prior to the issue date. Camera ready ads must be received by noon on Monday prior to the issue date.

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Keep Staff Happy or Lose Them NEW YORK (AP) – In the early months of the recession, human resources consultants advised small business owners to take steps to boost their employees’ morale, or risk losing them when the economy got better.

That advice still stands.

As the economy weakens, many small companies still aren’t able to give out raises.

Many are still increasing workloads instead of hiring new staffers. All this is certain to take a toll on employees’ already sagging morale.

HR consultants say taking time to talk with your staff and listen to their concerns will go a long way toward helping you keep them. It might also help you make their jobs easier – and make them more productive.

Perhaps the most important thing you can do to help morale is “acknowledging the stresses and circumstances that your employees are feeling,” says Arlene Vernon, president of HRx Inc, an Eden Prairie, Minn.based HR consultancy.

That may sound familiar, because it’s the sort of advice consultants were giving out during the financial crisis.

They suggested company owners walk around the office, factory or selling floor and talk to workers. Ask them how things are going.

Listen to them vent about the economy. See if they have questions about the company.

These chats may not seem important, but they do go a long way toward helping employees feel better.

If workers have to sit on their feelings and just put on a bright face all the time, they’re just bottling up unhappiness and that can be a big morale-buster.

Employees also need to feel that they’re really being listened to, not patronized.

That means you need to take in what your workers are saying, and if they are upset about their jobs, see what the problem is and what you can do to help.

Owners also got this advice during the recession: Sit down with each of your workers and have a detailed

talk about their jobs. If you have many employees, then your top manager needs to help you with these talks.

Some small business owners have fallen out of the habit of checking in with staffers. The excuse is often, “I don’t have the time,’’ says Beverly Kaye, an employee retention consultant in Sherman Oaks, Calif. She calls that a smokescreen for the fact that many owners are scared of these conversations.

In that case, Kaye says, an owner needs to ask, “is there anything else I can give you?”

And keep asking until you can give staffers something they need or want, like flextime or a promotion.

Money isn’t the only reason for morale problems at work.

And, actually, many employees understand that raises are still hard to come by in this economy. The bigger problem may be that as you’ve had to cut back, you’ve asked your workers for more than they can reasonably get done. Even your hardest workers will feel bad if they can’t get the work

done well because there’s too much of it.

Vernon says owners need to tell workers, “let’s look at your job structure and see what we can do.” And, to let them know how you would change their jobs when the economy does get better and you get more business.

If the atmosphere in your company is depressed, you

can also make things better for employees by acknowledging the holidays.

If you haven’t had holiday observances the last few years, you should plan some events. They don’t have to be expensive. Many employees love the idea of pot-luck parties and will happily shop and cook for their coworkers.

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Dealer, Bikers Help Sick Child Dodge and Kia stores throughout the area.

As they began making plans for a Auto dealers and leather-clad motorcycle clubs don’t always enjoy fundraiser, Cornelius and Haddad the best public image, but don’t tell shared their intentions with their friend Mike Pena, a member of the that to Zoe Whipple.

The 10-year-old girl, whose family Hell’s Angels Motorcycle Club.

The group decided to have a lives in Bakersfield, Calif., was born with kidneys that wouldn’t develop motorcycle run to raise money for Zoe Whipple and as she grew up. her family.

Her mother has With the involvesince donated a ment of the Hell’s kidney, but the “I knew I had Angels, the event family has been told gained fast notorishe will likely need some friends ety, and soon it had another transplant hundreds of motorin seven years. who could cycle enthusiasts The cost of her from across the treatments in Los help...” state lining up to Angeles, along with travel expenses, – Kevin Cornelius participate.

The group ride have put her family was held on Sept. under financial 24. strain.

Each person paid As the situation became increasingly difficult finan- $15, with couples paying $20, to cially, Zoe Whipple’s grandmother participate in the run, which began passing out fliers all over included hundreds of Hells Angels and a few other motorcycle clubs town, asking for help.

The family caught a break when from throughout the state.

It covered about a nine-mile Bakersfield resident Kevin Cornelius stretch of road, starting at Coronado received a flier.

“When they handed me a flier, I Baptist Church, and ending with a knew I had some friends who could cookout at a ranch on Haddad’s property. help this family,” Cornelius said.

Overall, the event raised nearly Cornelius then shared the information with John Haddad, who owns $11,000.

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Chains Move into New Locations A pair of used-car chains are expanding.

America’s Car-Mart Inc. announced the opening of its two newest dealerships. The dealerships are located in Nicholasville, Kentucky and Columbus, Mississippi.

Britney Carter will manage the Nicholasville dealership and Matt Cook will manage the Columbus dealership.

The buy-here, pay-here chain now serves customers from 110 dealerships in nine states. It has added four dealerships since April and anticipates opening approximately six more locations by next April, which marks the end of Car-Mart’s

fiscal year.

CarMax Inc. is currently hiring for approximately 45 positions for the company’s new store in North Attleboro, Mass.

The 13,600-square-foot store opens on Nov. 16.

It is CarMax’s first store in Massachusetts.

CarMax stresses in its hiring announcement that auto sales experience isn’t required.

The company said many associates have worked for other major retailers.

Others have previous experience working in the restaurant industry, selling insurance or teaching school.

Bad Ads Cost Over $100,000 Deceptive advertisements will cost a Vancouver, Wash., marketing company and its owner more than $128,000 in penalties and fees.

The Washington State attorney general originally filed a lawsuit in 2009 against RGH Marketing Inc., and its owner Robert G. Hubbard Jr., a former manager of Interstate Auto Liquidators, alleging both violated Washington’s Consumer Protection Act, Promotional Advertising of Prizes Act and Dealers’ Licenses Act. The AG accused the defendants of misleading customers by falsely claiming that cars were being sold under distressed conditions by using

advertising terms such as “Pre-Auction Auto Sale,” “Repos,” and “Bank Asset Sale” when in fact the vehicles came from the dealer’s regular inventory.

Their ads also included promises of vehicle discount offers that did not exist, such as “50% off the MSRP” on used vehicles when the Manufacturer’s Suggested Retail Price (MSRP) is the industry pricing standard for new vehicles, not used.

The AG’s office also said advertising statements implying that customers could finance any car of their choice, regardless of a consumer’s credit rating, were also misleading.

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PAGE 8 – BHPH SPOTLIGHT

Smart Underwriting Boosts Profits

By Jeffrey Bellant

LAS VEGAS – Underwriting remains a critical factor in the buy-here, pay-here business and dealers need to have a system in place.

Butch Moore, senior vice president for Leedom and Associates, offered dealers a set of guidelines to good underwriting during a recent conference.

Moore said his average turnaround time for underwriting a deal is 45 minutes, using an internal scoring system that serves only as a guide.

Examining a deal at the front end is key to its success, he said.

“The time and effort that you put in at the beginning of a deal will greatly determine the outcome of the loan,” Moore said.

“If you spend five minutes looking at an application and then say ‘approved,’ the chances are the loan is not going to perform well.”

Customers need to understand guidelines and requirements in the beginning.

That starts with the right application form that answers specific buy-here, pay-here questions to give dealers the information they need for collections.

Moore said he requires a four-page application that must be completely filled out honestly and accurately. The form even includes a space

for the customer to draw a map of where they live.

It’s important for the dealer to know where the customer actually lives, which may be different from the address where they receive their mail.

Moore said that as a store manager he reviews every application to make sure the information is honest and accurate - if a customer lies right off the bat, there’s a likelihood they will continue to be dishonest.

When it comes to time on the job, customers must provide year-to-date pay stubs so the dealer knows the accurate average pay and time on the job, Moore said.

If the dealer just goes by one pay stub, and the customer happened to work 20 hours overtime that week, it’s not an accurate reflection of the customer’s actual pay for a year.

If it’s early in the year, Moore will ask for a W-2 for the prior year.

Three years of residence history and three years of job history are needed before Moore will move the application to underwriting.

“This is not for approval purposes,” Moore said. “It’s for collection purposes.”

Moore wants to know the time an applicant has spent at their job and in the field they work.

He doesn’t pull a credit bureau score because it doesn’t provide the specific information he wants.

Photo by Jeffrey Bellant MOORE TO THE POINT: Butch Moore of Leedom and Associates discusses how strategic underwriting will lead to successful deals and higher profits.

The down payment has little bearing on whether a loan will perform, Moore said. It may make some difference if it’s not from a tax return and shows the customer has saved, however.

“We will do deals with $100 down,” Moore said.

“But that’s in the case of a strong ‘stability score,’ where a customer has a lot of time in a job and residence.”

But Moore’s average down payment is $554.

As far as income requirements, if the customer’s car payment is more than 25 percent of net take home pay, then the loan is going to fail

more than 60 percent of the time, Moore said.

The distance from the lot is also critical information in a car deal.

If a customer lives 50 miles away from the dealership, how are they going to pay?

“You’re not going to drive 50 miles every Friday to make a payment,” Moore said.

They also verify six references.

The collection of the first payment will set the tone for the life of the loan.

Dealers must set the car payment for the customer’s payday to make sure they

have money when it’s due.

It’s important to know whether the pay period is twice a month, every week or every other week so the payment plan can be accurate, Moore said.

Customers who work through temp services can be approved, but it depends on the amount of time they’ve spent with the service and whether their current position has the potential to become a permanent position.

The deal should be structured to recover the actual cash value of the deal within one year, Moore said.

PEOPLE IN THE NEWS KAR Appoints New Openlane Management

KAR Auction Services Inc. announced three key appointments to the executive management team of Openlane.

In the U.S., Jason Ferreri has been appointed senior vice president in charge of commercial sales and Tim Zierden has added responsibility for Openlane’s dealer sales within his capacity as senior vice president of dealer services for ADESA, Inc. In Canada, Trevor Henderson has assumed the position of managing director for Openlane while retaining his eBusiness and business development responsibilities for ADESA. Previously, Ferreri was vice president of eBusiness sales and operations for ADESA, with responsibility for all of ADESA’s U.S. private label Internet remarketing initia-

tives. Prior to assuming his eBusiness role, Ferreri was vice president of sales for ADESA, where he focused on working with ADESA’s many commercial accounts.

Since joining ADESA in 2009, Zierden has led the company’s dealer services division, overseeing the growth in dealer consignment and related services across the ADESA U.S. organization.

Previously, Zierden held executive level positions with DealerTrack and the JM Family, as well as CarMax. Zierden will continue to report directly to Tom Caruso, chief executive officer and president of ADESA, and will provide an aligned solution for all dealer activity at ADESA and Openlane.

Henderson was vice president of eBusiness and business development for ADESA Canada, where he was responsible for guiding the develop-

ment and implementation of strategic online programs and services for ADESA’s commercial and dealer customers. Prior to joining ADESA, Henderson served in various product planning and strategic roles within a software development company NADA Elects Chairman, Vice Chairman

The National Automobile Dealers Association (NADA) has elected William P. Underriner as chairman for 2012.

Underriner, 59, president and coowner of Underriner Motors in Billings, Mont., operates Honda, Hyundai, Buick and Volvo franchises.

Underriner, NADA’s current vice chairman, has served three terms as NADA treasurer and represents Montana’s new-car dealers on the association’s board of directors.

The election was held at the Sept.

20 meeting of NADA’s board of directors in Washington, D.C. Underriner will take office at the 2012 NADA convention in Las Vegas, which runs Feb. 3-6.

David W. Westcott, a new-car dealer from North Carolina, was elected NADA vice chairman for 2012.

GM Names First Customer Experience Executive

Paul Copses will become the first U.S. vice president of customer experience at General Motors, charged with leading efforts to win and keep customers for Chevrolet, Buick GMC and Cadillac.

Copses, currently executive director of customer care and aftersales, began his new job Oct. 1, and will be tasked to ensure GM provides the highest levels of customer care in the U.S. automotive industry.

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Journalist Explains Media Bias A famous journalist explained to a group of independent auction owners why the media proves biased against business.

Fox Business News personality John Stossel addressed members of ServNet when they gathered in Detroit for a client luncheon.

Stossel said being suspicious of business comes naturally to most reporters.

“It’s intuitive,” he said.

Stossel himself trusted government more than business when he started as a consumer reporter for ABC News 30 years ago. But the longer he stayed on the beat, the more he

started to question the conventional wisdom.

Stossel reached the conclusion that regulators tend to overrate risk.

Sometimes, this can actually hurt consumers.

He used the example of the Federal Drug Administration approving a drug that would save thousands of lives a year. What that means, Stossel said, was thousands of lives have been lost while the drug went through the review process.

Stossel said there is a place for government in providing a rule of law.

But overreach can be worse than the original problems.

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Volkswagen Recalls Diesel Cars

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Volkswagen is recalling several of its diesel models due to a potential fire hazard.

The company is recalling certain model year 2009-12 Jetta and Jetta Sportwagen vehicles, manufactured from May 2008 through September 2011; model year 2010-12 Volkswagen Golf vehicles, manufactured from May 2009 through September 2011; and model year 2010-12 Audi A3 vehicles, manufactured from September 2009 through September 2011, that are equipped with a 2.0L TDI com-

mon rail diesel engine/clean diesel engine.

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The recall begins in November.

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RETAIL MARKETS CONNECTICUT

Todd Blonder, owner, T.J. Motors, New London, Conn.: “We’ve been in business for 31 years.

“We do straight retail. We also sell to non-prime, or ‘C’ and ‘D’ customers. They’re not really subprime customers since we can work with standard banks.

“We carry about 50 to 55 vehicles on the lot. That’s about the same as this time last year.

“We’re selling about 25 units per month. It’s comparable to this time last year.

“I used to keep more cars on the lot, but you have to work harder to fill the lot with inventory. “(In previous years), I could fill the lot by going to two or three auctions a week.

Finding them had not been a problem before.

“Now, I’m going to sales almost every day.

“Auctions are my primary source of inventory.

“My average priced vehicle is in the $10,000 to $17,000 range. That’s what works for our market.

“But that’s a challenge. For

example, I might go to the auction and see a car that would normally sell for $14,000 wholesale and guys are bidding it to $15,300, pricing out of what I want to pay.

“The average model year is two to three years old.

Average miles is 30,000 to 70,000. Mileage has crept up over the last year.

“We carry about 70 percent cars and 30 percent trucks, sport utilities and vans.

“About 60 percent of our vehicles are imports.

“We recondition all of the vehicles before they go out on the lot. We do an extensive service check and detail of our vehicles.

“Recon costs have gone up about 10 percent from this time last year.

“We only service our own cars. We don’t do any outside work.

“For advertising, we’ll use (third-party) Internet sites like Cars.com and AutoTrader, along with some of the local magazines.

“We don’t do television and radio advertising. We used to do it, but it’s really hard for a small dealership. The franchises have advertising

•

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Compiled By Jeffrey Bellant co-ops so they don’t have to spend as much for the same advertising. But 40 percent of our business is repeat and referral, so that’s something we work with.

“A recent vehicle we sold was a 2008 Honda Accord with 35,000 miles. It sold for $14,900.”

INDIANA

Ty l e r T r e n t , p r e s i dent, Trent Auto Sales, Vincennes, Ind.: “We started in 1971.

“We have one location.

“Our lot has about 15 to 20 vehicles. Our focus has moved more toward wholesale in the last couple of years, but we still have a retail business.

“A couple of years ago, we would keep up to 45 units on the lot.

“I sell about 10 to 15 per month. It’s about the same as this time last year. So many people can’t buy (because of financing).

“We don’t do any buy-here, pay-here. People bring their own money. There are a few credit unions and banks we’ll (connect) them with. “(In terms of inventory) the miles have gone up a little bit.

People are accepting higher mileage more often. We mostly carry model years 2006 to 2009. We have a couple of 2011s, but they don’t sell well.

“Mileage-wise, I would say we’re in the 50,000 to 80,000 range. That’s the same as last year, but they are harder to find.

“We keep mostly trucks and sport utility vehicles. I don’t think we have a car on the lot right now.

“Our lot is probably 80 percent Fords. We mostly carry Fords and General Motors units. We carry very few Chrysler products. Our vehicles are Ford F-150s, F250s, Ford Escapes, Ford Edges, things like that.

“I don’t like to sell something that I don’t know how to work on.

“We’ll get our vehicles from auctions. We’ll use Mt. Vernon I-64 Auto Auction in Illinois, ADESA I n d i a n a p o l i s, Ma n h e i m I n d i a n a p o l i s, Ke s l e rShaefer Auto Auction in I n d i a n a p o l i s , Wo l f e ’ s Te r r e Haute Auto Au c t i o n ( I n d i a n a ) a n d Wolfe’s Evansville Auto Auction (Illinois).

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“We’ll recondition vehicles before we put them on the lot. We have a mechanic and my son and I do some work, too. We’ll also send some work out. We can get about four or five cars in the building to work on. Our reputation is good in town.

“It’s pretty easy to spend $1,000 to $1,500 on a car if you’re going to get it on the lot to retail it. About everything needs tires and brakes.

Usually there will also be something wrong, like a power window that doesn’t work.

“When we bring cars to sell at auction, we get them ready to go. We have them detailed and make sure they’re are lot-ready.

That’s what dealers want when they go to a sale.

“We don’t really do much advertising. We’ll advertise on the radio, but it’s mostly goodwill stuff, for some of the local schools’ basketball and football games.

“We recently just sold a couple of pickups.

“One of the last vehicles we sold was a 2002 Ford F-250, crew cab, four-wheel drive with 90,000 miles on it. We got $14,000 for it.”

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WHOLESALE MARKETS GEORGIA

Dale Baxter, general manager, Albany Auto Auction, Albany, Ga.: “I’ve been general manager for 17 years. The auction will have been here 40 years next February.

“Our sales have been good.

“We run four lanes, though we have a total of five lanes.

“Like everyone else, our volume is down. It’s down about 22 percent.

“On an average non-promotional night, we’ll run between 350 to 400 units.

“Sales percentages are holding steady at about 61 percent to 64 percent. That’s a little bit better than this time last year.

“We’re averaging 280 to 300 bidder badges in the lanes. That is down some from this time last year.

“I attribute it to attrition and when the new-car market fell out, (causing) the new-car stores to make their living on selling used cars.

“We get buyers from north Florida, some from Mexico, Texas, Alabama and Tennessee.

“We’re getting dealers from places that we didn’t

see before.

“For example, we’ve got one dealer who travels here from Cleveland, Tenn., and attends two auctions here and then another one from Florida.

“Dealers are saying it was a lot more fun (before) and now it’s just a job. (But) they’re paying the light bill and paying the rent.

“It’s a little harder for the independents right now.

“We sell lease units for four different leasing companies, but the lease volume has really taken a licking.

“Lease and bank car volume makes up 28 percent of our total volume.

“Now, the lease units are way off, but the repossessions are way up.

“The fleet cars sell extremely well.

“We condensed our salvage sales into an in-op sale twice a month.

“We’ll run anywhere from 20 to 50 units.

“Some of those bring just stupid money.

“The best selling vehicles here are in the $4,000 to $6,000 range.

“That’s about the same as last year.

“Foreign cars with good miles are doing well in the lanes.

“If you get a 2008 or 2009 (import) with low miles, it brings gold.

“Cars like the Taurus and the Sable are struggling right now.

“But the Chevy Impala and the new-style Malibu are doing well.

“For a family car, the Chrysler 300 or Dodge Charger are doing well.”

IDAHO

Richard Johnson, owner/general manager, East Idaho Auto Auction, Blackfoot, Idaho: “We’ve owned the auction for approximately five months.

“Sales are going pretty good. I can’t complain.

Business has been good, though there is a little problem in getting cars.

“We have just two lanes.

“Our volumes are averaging about 160 units a week. I think we’re up by 10 percent from this time last year.

“We’re selling an average of about 52 percent each week.

We’re up from this time last year.

Compiled By Jeffrey Bellant “There are about 65 to 70 dealers in the lane each week.

“That’s increased. Our market here in Blackfoot, Idaho, seems to be more stable than in bigger cities like Boise or Salt Lake City.

So a couple of years ago, when we had the big downturn, our market stayed pretty steady. The reason is our (local economy) is based on farming and for the last five or six years, farming has been great.

“So the economy has been more stable than some other places.

“About 20 to 30 percent of our dealers come from Montana, another 20 percent from Utah and the rest are local.

“Dealers in the lanes still seem to be a little scared about the economy.

“Also, everyone is concerned about finding good cars at a reasonable price.

“In terms of the franchise dealers, everybody we’ve talked to said their businesses are up 10 to 15 percent.

“Most of the (independent) dealers within 100 mile radius of us seem to be doing

better than they did the year before. They’re not selling any more used cars but their gross profits are a lot better.

“Most of our value is made up of dealer consignment. At least 85 percent of our volume is dealer consignment.

“The rest of our volume comes mostly from small banks in our area, credit unions and title loan companies. Those units have declined a little.

“We’ll also run some powersports. We might run 10 bikes a month and five or six RV a month.

“The (hottest) vehicles for us are the $4,000 to $8,000 cars.

“Our average vehicles used to be around $5,400. Now it’s gone to $6,500 in the past five months.

“Suburbans, big sport utility vehicles have been doing well for us, along with all diesel products.

“The diesel products that have gone own are the ones with more than 150,000 miles.

“We recently had our ‘Big Shot Giveaway,’ during which we gave away several guns.”

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COMPILED BY JEFFREY BELLANT

ASSOCIATION HONORS LIFE-SAVING EFFORT

Photo by Jeffrey Bellant SPECIAL AWARD: Bruce Beam (center), general manager of Dealers Auto Auction of Oklahoma City, accepts the NIADA’s Auction of the Year award from Mike Linn (left), CEO of the National Independent Automobile Dealers Association. NAAA Chairman Jay Cadigan was also present during the ceremony in Chicago.

A life-saving effort at Dealers Auto Auction of Oklahoma City helped it earn the National Independent Automobile Dealers Association’s Auction of the Year award.

Bruce Beam, general manager, accepted the award on behalf of the auction and its owner, Gary Smith, Association CEO Mike Linn described the event that helped the auction earn the award.

On Dec. 23, 2010, Rose and Odell Morgan, the executive directors of the Oklahoma IADA, attended the auction during its regular sale day.

Early that morning, auction owner Gary Smith saw Odell Morgan fall to the floor. He checked his pulse and found none, Linn said.

Smith began chest compressions and staff members called for an ambulance. He continued CPR until the ambulance arrived.

Morgan went on to have quadruple bypass surgery and continues to recover from the incident. His wife, Rose, credited Smith and the auction’s staff for its efforts.

“Once in awhile, an auction will do something that truly sets it apart, sometimes even heroic,” Linn said. “Because of actions taken that day, the auction staff was able to save a life.”

AUCTION GROUP GROWS

ees and clients are our single most important asset and that aligns perfectly with the philosophy and practices of American Auto Auction Group.”

Connors is joining AAAG as president and as a member of its board of directors. He will be working closely with AAAG’s chief operating officer, Keith Lelux, in day-to-day operations.

We invite news items and top-quality photos from our readers to be considered for “Around the Block.” Please include the name of a contact person and a telephone number.

Send items and photos to: Jeffrey Bellant Mail: Used Car News, 24114 Harper Ave., St. Clair Shores, MI 48080.

Fax: (586) 772-9400 e-mail: jeff@usedcarnews.com

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American Auto Auction Group LLC has announced the addition of eight auto auction locations to its portfolio of auction businesses with the acquisition of Florida’s Your Auction Inc. Your Auction, Inc.’s flagship operation services the Tampa-St. Petersburg market and is now a 17acre, six-lane facility that runs 1,000 vehicles each Wednesday.

Additional Your Auction sites are located in Ft. Myers, Punta Gorda, Sarasota, Stuart, and Merritt Island, Fla., as well as Birmingham, Ala. “This is a perfect marriage for us,” said Gary Connors, Your Auction founder and president. “We are a ‘people first’ company. Our employ-

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October 17, 2011

USED CAR NEWS

ACTUAL WHOLESALE AND PROJECTED RESIDUAL VALUES OCTOBER 2011

SOURCE: BLACK BOOK

2010 Domestic Cars Buick LaCrosse CX 4D Sedan Cadillac DTS 4D Sedan Chevrolet Cobalt LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 Touring 4D Sedan Chrysler Sebring Touring 4D Sedan Ford Mustang Base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan Pontiac G6 4D Sedan Import Cars Acura TL Base 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Galant ES 4D Sedan Nissan Altima Base 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra Base 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Trucks Cadillac Escalade Base 4D Utility AWD Cadillac SRX Luxury 4D Utility AWD Ford Edge SEL 4D Utility Chevrolet Colorado LT Crew Cab 4WD Z85 Chevrolet Equinox LS 4D Utility FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D Utility 4WD Dodge Dakota Bighorn Ext Cab Dodge Grand Caravan SE Wagon Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Flex SEL 4D Utility Jeep Grand Cherokee Laredo 4D Utility 4WD

Oct-10 $21900 $32250 $9300 $13150 $16550 $12500 $16300 $22550 $26100 $12350 Oct-10 $30000 $28000 $74000 $16300 $12350 $29500 $41400 $12100 $14700 $16000 $11700 $14400 $11750 $14400 Oct-10 $47250 $33000 $21400 $20400 $18600 $21150 $30275 $15875 $16400 $19075 $22725 $19750 $22625 $20875

2009 Apr-11 $20250 $27600 $10250 $13100 $15400 $12000 $16650 $20550 $22300 $12000 Apr-11 $27200 $27300 $67700 $15700 $12900 $27600 $39600 $12300 $14500 $15800 $11650 $15300 $12800 $16000 Apr-11 $47300 $33200 $21300 $19850 $17900 $20050 $27875 $15175 $15000 $18275 $21575 $19000 $22075 $20575

Oct-11 $19900 $25400 $10000 $12550 $14700 $12450 $16000 $21100 $24200 $13350 Oct-11 $27000 $25600 $67100 $15000 $12500 $28300 $39400 $12300 $13800 $15100 $12950 $14250 $12150 $16100 Oct-11 $45000 $31400 $20200 $19150 $17275 $17400 $25875 $14375 $15100 $16525 $19175 $18100 $21975 $18225

Projected Figures Oct-12 Oct-13 $16450 $14250 $23400 $19200 $8300 $7200 $10400 $9000 $12550 $11200 $10050 $8500 $13700 $11700 $15900 $14500 $19150 $16150 $10400 $8800 Oct-12 Oct-13 $22200 $19000 $21950 $18700 $50200 $43200 $13125 $11250 $10650 $8950 $22300 $19300 $30100 $25100 $9050 $8350 $12000 $10750 $13000 $11750 $8800 $8075 $12650 $11250 $10300 $9100 $14100 $12150 Oct-12 Oct-13 $37850 $33350 $27150 $23850 $18525 $15975 $17825 $16525 $14875 $12025 $16200 $14450 $22750 $19825 $11725 $10300 $13050 $11250 $15800 $13925 $16950 $14725 $16575 $14950 $18875 $16225 $16500 $14300

Domestic Cars Buick LaCrosse CX 4D Sedan Cadillac DTS 4D Sedan Chevrolet Cobalt LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 Touring 4D Sedan Chrysler Sebring LX 4D Sedan Ford Mustang Base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan Pontiac G6 Base 4D Sedan Import Cars Acura TL Base 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Galant ES 4D Sedan Nissan Altima Base 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra Base 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Trucks Cadillac Escalade Base 4D Utility AWD Cadillac SRX 4D Utility AWD V6 Ford Edge SEL 4D Utility Chevrolet Colorado LT Crew Cab 4WD Z85 Chevrolet Equinox LS 4D Utility FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D Utility 4WD Dodge Dakota Bighorn Ext Cab Dodge Grand Caravan SE Wagon Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Taurus X SEL 4D Utility FWD Jeep Grand Cherokee Laredo 4D Utility 4WD

Oct-10 $12000 $21250 $6900 $9600 $14350 $8550 $12250 $12850 $19700 $8950 Oct-10 $20600 $18800 $35600 $13250 $9250 $21900 $26000 $9150 $12200 $12800 $9250 $11500 $9250 $12700 Oct-10 $36300 $21550 $16775 $16675 $12700 $17100 $23800 $12375 $11375 $14475 $16900 $16350 $14050 $16200

Apr-11 $12600 $22600 $8600 $11250 $15200 $9700 $13650 $12850 $19100 $10250 Apr-11 $24400 $22700 $60000 $14100 $10750 $24200 $32000 $10100 $13200 $14000 $10200 $13800 $11450 $14350 Apr-11 $38550 $23950 $19000 $18500 $14650 $18250 $24675 $13325 $12750 $16525 $18525 $17750 $16000 $17850

Oct-11 $12800 $20900 $8150 $10850 $14550 $9600 $14000 $12750 $19650 $11150 Oct-11 $24000 $21500 $58200 $13600 $10550 $24700 $31400 $10200 $12600 $13400 $11500 $12900 $10650 $14200 Oct-11 $36600 $20900 $17450 $18200 $14450 $16350 $23675 $12525 $12350 $15625 $15925 $16650 $16000 $15500

Projected Figures Oct-12 Oct-13 $11050 $9600 $19300 $15300 $7100 $6100 $8800 $7500 $12650 $10950 $8100 $6800 $11500 $10000 $10550 $9150 $16150 $13550 $8950 $7400 Oct-12 Oct-13 $19800 $16600 $18950 $15900 $43200 $36600 $11950 $10275 $8850 $7500 $19700 $16900 $23500 $19600 $8300 $7700 $10650 $9500 $11650 $10500 $7975 $7175 $11400 $9950 $8800 $7800 $12200 $10150 Oct-12 Oct-13 $33150 $28650 $19450 $16350 $15975 $13400 $16525 $14725 $11950 $9525 $14450 $12900 $20650 $17725 $10300 $8825 $11250 $9450 $13325 $11025 $14125 $12325 $14075 $12625 $13050 $11350 $14200 $12300

Apr-11 $9150 $14100 $6050 $7800 $11800 $7200 $10400 $8200 $14250 $7200 Apr-11 $15400 $16100 $28900 $10250 $7450 $18400 $20800 $6750 $10600 $11200 $7900 $11250 $8150 $10450 Apr-11 $27750 $17400 $15150 $14950 $10200 $14150 $19275 $10475 $8200 $11300 $13750 $13775 $9925 $13350

Oct-11 $9200 $13700 $5950 $7600 $11650 $6750 $10400 $8150 $14650 $8100 Oct-11 $15500 $16000 $28700 $9950 $7750 $18300 $20800 $6250 $9800 $10400 $8900 $10600 $8250 $10150 Oct-11 $25400 $16000 $13500 $14600 $10100 $13350 $17875 $9775 $7450 $10500 $11450 $12975 $9475 $11750

Projected Figures Oct-12 Oct-13 $8000 $6800 $11800 $9850 $4900 $4050 $5950 $4900 $8550 $7150 $5550 $4500 $8500 $7250 $6400 $5400 $11350 $9250 $6200 $4950 Oct-12 Oct-13 $12300 $10200 $12900 $10250 $21900 $17500 $8700 $7300 $6050 $5150 $14300 $11900 $15350 $12900 $5175 $4575 $7350 $6550 $8275 $7075 $6250 $5475 $8850 $7550 $6600 $5750 $8300 $7000 Oct-12 Oct-13 $22950 $19350 $13800 $11300 $10475 $7825 $13225 $12025 $6900 $4975 $11425 $9600 $15400 $13125 $8550 $7300 $6625 $5750 $8600 $6750 $9275 $6575 $10650 $9225 $8300 $6650 $9675 $7875

2007

2008 Domestic Cars Buick LaCrosse CX 4D Sedan Cadillac DTS 4D Sedan Chevrolet Cobalt LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 Touring 4D Sedan Chrysler Sebring LX 4D Sedan Ford Mustang Base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan Pontiac G6 Base 4D Sedan 4 Cyl Import Cars Acura TL Base 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan Lexus ES 350 4D Sedan Mercedes-Benz E Class E350 4D Sedan Mitsubishi Galant ES 4D Sedan Nissan Altima Base 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra Base 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Trucks Cadillac Escalade Base 4D Utility AWD Cadillac SRX 4D Utility AWD V6 Ford Edge SEL 4D Utility Chevrolet Colorado LT Crew Cab 4WD Z85 Chevrolet Equinox LS 4D Utility FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D Utility 4WD Dodge Dakota SLT Ext Cab Dodge Grand Caravan SE Wagon Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Taurus X SEL 4D Utility FWD Jeep Grand Cherokee Laredo 4D Utility 4WD

Oct-10 $14100 $25950 $8050 $11300 $16000 $10100 $13800 $15600 $21800 $10650 Oct-10 $26000 $23500 $65000 $14700 $10750 $25500 $32800 $9650 $12700 $13500 $10400 $12850 $10450 $14100 Oct-10 $40600 $24600 $20000 $18750 $15500 $19350 $26375 $13475 $14200 $17375 $20025 $18275 $17950 $18250

Apr-11 $10950 $18150 $7200 $9550 $13400 $8450 $12000 $10950 $17800 $8700 Apr-11 $18400 $18700 $34200 $12700 $8800 $21200 $25800 $8400 $12100 $12900 $9000 $12450 $9200 $12900 Apr-11 $34200 $21500 $16925 $16875 $12250 $16000 $22200 $12075 $10025 $14125 $16050 $15500 $12800 $15950

Oct-11 $11400 $17700 $7000 $9200 $13100 $8350 $12100 $10750 $18050 $9950 Oct-11 $18100 $19000 $33600 $12300 $9050 $21300 $26000 $8500 $11500 $12200 $10200 $11700 $9300 $13000 Oct-11 $32050 $19350 $15825 $16525 $12350 $14700 $21000 $11125 $9925 $13450 $14150 $14500 $12900 $13800

Projected Figures Oct-12 Oct-13 $9500 $8100 $15200 $12500 $5900 $4950 $7300 $6150 $10750 $9250 $6650 $5500 $9800 $8500 $8600 $7300 $13550 $11350 $7500 $6100 Oct-12 Oct-13 $14800 $12400 $15750 $12900 $27500 $21900 $10825 $9000 $7350 $6050 $16900 $14300 $19000 $15950 $5975 $5275 $9550 $8350 $10600 $9350 $7075 $6350 $9950 $8700 $7700 $6700 $9650 $8300 Oct-12 Oct-13 $27700 $23700 $16350 $14050 $13300 $10475 $14625 $13225 $9525 $6900 $12900 $11425 $18200 $15500 $10000 $8750 $8450 $7125 $11025 $8600 $12125 $9475 $11825 $10675 $11350 $8550 $12300 $9700

Domestic Cars Buick LaCrosse CX 4D Sedan Cadillac DTS 4D Sedan Chevrolet Cobalt LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 Touring 4D Sedan Chrysler Sebring Base 4D Sedan Ford Mustang Base 2D Coupe Ford Five Hundred SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan Pontiac G6 Base 4D Sedan 4 Cyl Import Cars Acura TL Base 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan Lexus ES 350 4D Sedan Mercedes-Benz E Class E350 4D Sedan Mitsubishi Galant ES 4D Sedan Nissan Altima Base 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra Base 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta Base 4D Sedan Trucks Cadillac Escalade Base 4D Utility AWD Cadillac SRX 4D Utility AWD V6 Ford Edge SEL 4D Utility Chevrolet Colorado LT Crew Cab 4WD Z85 Chevrolet Equinox LS 4D Utility FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D Utility 4WD Dodge Dakota SLT Club Cab Dodge Grand Caravan SE Wagon Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Freestyle SEL 4D Utility FWD Jeep Grand Cherokee Laredo 4D Utility 4WD

Oct-10 $10300 $16850 $5800 $8000 $12550 $7200 $10850 $9250 $15350 $7350 Oct-10 $16800 $16400 $30600 $10450 $7900 $19300 $21000 $7000 $10600 $11200 $7950 $10500 $8200 $10400 Oct-10 $29300 $18450 $15300 $14800 $10800 $15050 $20875 $10675 $8700 $12200 $14550 $14575 $11225 $13800

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Disconnected Jottings From Tony Moorby...

As most readers know, my political leanings are fairly right-wing - a dyed-in-thewool do-it-yourselfer with no expectation of handouts.

for nothing. I have no truck for these people while I do defend the observation that a successful society should provide a safety net to the

Tony Moorby • 40-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 • Awarded the Ring of Honor by NIADA • NAAA Hall of Famer

So why do I find myself in some considerable sympathy with the protesters on Wall Street, now spreading, with aid of social media, into other principle markets?

It’s mainly because a great deal of these OWlS (Occupy Wall Street) are not the normal mix of demonstrators. Sure, there are some of the brigade who turn up at these things as a matter of rote, invariably claiming that someone should fill their outstretched hands

truly indigent.

But that’s not what this is all about. These demonstrators are saying that they’re “99 percenters” - they represent a cross-section of today’s society and that their current position can be felt by any of us. In other words, there is more than intimation that this is no longer a successful society.

How can a society sustain its health, wealth and happiness when it’s being raped and pillaged at both ends? The financial tycoons

have feathered their nests at the cost of the tax-payer and the government is trying to pay for this largesse at the cost of the taxpayer.

The very pickle in which we now find ourselves was dreamed up by bankers with the certain knowledge that oversight of their thieving skullduggery would never be executed by authorities who had neither the knowledge of how nor the will to stop it. Any normal, thinking individual could be forgiven for believing that these were willing bedfellows, sharing a mutual booty. Suggestions that the man in the street was equally to blame is the same as saying a child would say “No” to a lifetime’s supply of free candy.

So now we have the same parties shrugging off blame and saying “how dare these people gather in front of my business”. This, while they’re working on plans to cloak more banking fees in some sweet-smelling mar-

C R O S S WO R D

keting package to pay for their mismanagement of the past. Are they helping to create new jobs? In a pig’s ear! Bank of America just let go 30,000 employees.

Meanwhile, there’s not one individual in the whole of our government smart enough to figure a way out.

On the basis that the love of money is the root of all evil, we’ll sell our souls to the devil and let India, China and the like buy our debt for 5 cents on the dollar.

Of course, Obama’s light at the end of the tunnel is provided by more taxes. If you believe that he only wants to tax the super-rich, then I’m sorry. The way this society is headed, we won’t be able to afford to feed the hungry, let alone build a

school, buy a library or fund an art gallery.

The folks who have been driven to voice their disconcert over Wall Street aren’t really venting about that alone. This cross section of society is giving everyone a clarion call to demand a return to fiscal normalcy with checks and balances and a government who actually gives a toss enough to make sure they’re in place and working properly instead of worrying about their own re-election probabilities.

No wonder the Capitol was built with such a large dome – it allows all that hot air to rise.

Now if you really want to get me going, let’s talk about the airlines ...

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

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October 17, 2011

USED CAR NEWS

CLASSIFIEDS

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UCN_19

10/10/11

10:28 AM

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USED CAR NEWS

BUY-HERE, PAY-HERE SPOTLIGHT Auto Manager ............................................ 22 AutoRaptor ................................................ 32 & 34 Autosave ...................................................... 20 & 21 C ar Financial Services, Inc. .................. 24 & 26 Credit Acceptance Corp. ........................ 23 & 25 Dealer Services Corp. .............................. 23 & 27 East Coast BHPH Conference .............. 20 & 30 Enfotrace GPS, Inc. ................................. 27 & 30 Finance Express ......................................... 29 & 34 Gordon Howard/Passtime ................... 21 & 30 GWC Warranty .......................................... 31 iMetrik Solutions .................................... 19 & 22 Leedom & Associates ................................ 27 & 33 Little Guy Worldwide ............................ 28 Micro 21 ...................................................... 32 & 33 National Auto C are ................................. 33 Northland ................................................. 20& 24 Payteck Technologies............................. 24 & 28 ShipC arsNow.com ..................................... 26 Small Dealers Assistance ....................... 22 & 31 Spartan Financial ..................................... 28 Sterling Credit Corp. ............................. 22 & 24 Vehicle Acceptance Corp. ...................... 21 & 26

October 17, 2011

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UCN_20

10/7/11

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October 17, 2011

USED CAR NEWS

B U Y - H E R E , P AY - H E R E S P O T L I G H T Auto Manager Page 22

Gordon Howard/ Passtime Page 21 & 30

Payteck Technologies Page 24 & 28

AutoRaptor Pages 32 & 34

GWC Warranty Page 31

ShipCarsNow.com Page 26

Autosave Pages 20 & 21

iMetrik Solutions Pages 22 & 32

Small Dealers Assistance Pages 22 & 30

Car Financial Ser vices, Inc. Pages 24 & 26

Leedom & Associates Pages 27 & 33

Spartan Financial Page 28

Credit Acceptance Corp.

Pages 23 & 25

Little Guy Worldwide Page 28

Sterling Credit Corp.

Page 22 & 24

Dealer Ser vices Corp.

Pages 23 & 27

Micro 21 Pages 32 & 33

Enfotrace GPS, Inc. Page 27 & 30

National Auto Care Page 33

Finance Express Pages 29 & 34

Northland Pages 21& 24

Vehicle Acceptance Corp.

Pages 21 & 26

Use your smartphone to scan these codes to be directed to each advertiser’s website.

UCN_20

10/10/11

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October 17, 2011

USED CAR NEWS

The Insanity of Financing Cars

Save-A-Deal Available to all Dealers

Autosave, the Original 5 year / 100,000 MileWarrantyCompanyhasintroduced1 &3yearwarrantyprogramsforconsumers who do not keep their vehicles for up to five years.

In addition to these new terms, Autosave has added A/C, Electrical and Seals and Gaskets optional coverage’s.

The competitive pricing structure of these products has increased Autosave’s salesandhasmadeAutosavetheindustry leader in this market segment.

One of the largest contributing factors tothisexceptionalgrowthistheincrease in franchised dealerships selling the Autosave Program.

OurnewSave-A-DealWarrantyFunding Platform is available to all dealers.

of the industry, assisting our dealers in delivering more units with more profit per vehicle.

Our lenders are lending between 500 and a 750+ Beacon. We have a home for your customers with pre-approved Autosave Warranty Funding for theses deals, giving your dealership that extra profit.

Autosave has over 180 agents throughout the U.S. that install our profitable programs.

Autosavecontinuestoofferthe“Dealer Cash Back Program” where enrolled sales personal from Autosave dealers receiveacashrewardonamonthlybasis.

Autosave supports our dealers in all facets of the industry including

There are no refunds or cancellations and dealers get paid within 72 hours of approval, go to saveadeal.com for more information and call us to enroll in this profitable Program.

All of our Warranty Programs, E-contracting, lending portals, and Warranty Financing are the forefront

warranty product training, program development,agentcertificationtraining, dealer relations, claims administration and customer relations.

Call Dealer Relations at 800-684-1175 to increase sales and profit for your dealership and its future with our programs.

UCN_21

10/10/11

9:51 AM

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USED CAR NEWS

October 17, 2011

Geo-Fencing Saves Money and Time

These days, with the price point for GPS tracking systems becoming more and more affordable, these devices have become common place in the automotive finance industry. Low price points have accelerated the dealer’s return on investment, making it easier to justify their use for asset protection and recovery.

As demand grows for these products, providers are developing innovative features to enhance the technology and offer additional value to customers.

to utilize a geo-fence is to focus on impound lots in the area. As many lenders know, a vehicle that gets caught in a impound yard often ends up costing more to retrieve than it is worth. Using geo-fencing around impound lots can be a useful way to lower costs and save time in the event a vehicle gets towed.

By creating a geo-fence around local impound lots, lenders can receive notification of which impound lot the vehicle has entered and when. By

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Spend a greater percent of your time selling vehicles.

What demands the greatest percentage of time in your BHPH operation? VAC can help manage

Geo-fencing is a feature in some GPS systems gaining popularity. A geofence is a software feature that allows the user to create a virtual boundary around a geographic area. When the geo-fence is created, a notification can be sent when the vehicle has crossed in to the boundary, out of the boundary, or both. With some systems, a lender can be notified by e-mail or text message when the vehicle crosses the geo-fence, giving them the opportunity to address the account.

There are many ways that geo-fence features can be used. One unique way

receiving this notice and acting quickly, the lender may be able to retrieve the vehicle quickly at minimal cost.

Geo-fencing can be a valuable tool to help assist lenders utilizing GPS tracking devices. The ability to create a virtual boundary can have many uses, including a focus on minimizing costly trips to the impound lot.

While there are many GPS tracking systems on the market today, some of these unique features and functionality surrounding these systems can help a lender choose the best system for their business.

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UCN_22

10/7/11

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USED CAR NEWS

O c to b e r 1 7, 2 0 1 1

iMetrik Rolls Out New Appreciating Asset Pay Share

iMETRIK, the global leader in embedded wireless solutions is proud to present their truly unique, interest-free finance program, Pay Share.

Thenameisderivedfrom partnerships with finance companies supporting the capital needs of buy-here, pay-here dealers, namely Vehicle Acceptance Corporation (VAC), CAR Financial and Small Dealers Assistance (SDA).

Finance companies that purchase,

“COLLECT”modelfor$39plusshipping. iMetrik COLLECT is a fully encapsulated device featuring internal starter interrupt, GPS locate, a permanently soldered SIM chip, and an integrated back-up battery. iMetrik COLLECT carries no annual renewal fees.

The dealer then pays $10 per month until the $199 device is paid in full or until the corresponding loan is sold to or advanced against with a Pay Share

New car dealers are not selling as many new cars. They are holding on to the nice trade-ins and shipping the inferior ones to auctions.

Vehicles cost $1,200 to $1,500 higher this year … if you can find them and overall quality has gone down.

Thisgoesagainsteverythingyouwere taughtinEconomics101–usedvehicles are now an appreciating asset due to one simple factor – supply and demand.

New car sales are slumping and the lasting effects of “cash for clunkers” hurt supplies.

South Carolina dealer Bob Cochran sums up the situation, “Inventory costs are choking me – it cost an extra $1,200

to $1,500 to buy the same car this year at auction. The only silver lining I see is that my repos are bringing a lot more at the sale this year.”

Higherinventorycostshaveleddealers to search further for capital sources.

Dealers who used to be able to fund most deals themselves now need assistance from a capital provider.

Gary Page, President of Small Dealers Assistance, a nationwide buy-here, payhere capital provider, says – “I’ve been in this business for over 20 years. I can’t remember a time when inventory costs were so high. Dealers have to work harder and pay more for inventory. We are not even in tax season yet!”

Best Tools in the Business or advance against buy-here, pay-here receivableshavetraditionallyhadlimited ability to encourage the use of GPS tracking technology.

Due to the tremendous performance difference available via GPS technology, CAR Financial, VAC and SDA have joined with iMetrik to change this.

The program is very simple.

After signing up with iMETRIK, the dealer obtains a top of the line

lending partner. In this regard, Pay Share allows a dealer to pay for GPS technology in a manner more fitting their own revenue model while offering a significant cost reduction when selling their portfolios.

For more information about iMETRIK Pay Share visit imetrik. com/payshare or inquire with your VAC, SDA or CAR Financial representative.

At AutoManager, we believe in-house financingshouldbeagreatsalesasset,not a distraction. That’s why DeskManager’s comprehensivesuiteofbuy-here,pay-here tools is designed to help all dealerships craft smart, flexible payment plans.

Our management software has been proven through 25+ years of tireless development. We’ve consulted with dealershipstoforgemanagementsoftware solutions that are simple, powerful and intelligent.

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©2011 Sterling Credit Corporation

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10/7/11

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Credit Acceptance Provides Real Alternatives for Buy-Here, Pay-Here Dealers Despite a slight economic upturn, many consumers are still struggling to find reliable vehicle financing sources in order to purchase a vehicle and establish a positive credit history. These consumers represent a growing market for used car dealers.

Yet, many dealerships are missing out on these potential sales, either unable to findfinancingorunsurehowtointegrate subprime into their existing business.

Many are considering buy-here, payhere as an alternative, but are skeptical due to the uncertainty of entering a new business and the costs associated with getting a buy-here, pay-here business up and running.

CreditAcceptanceallowsdealerstotake advantage of this growing opportunity without the time-consuming and costly investment in buy-here, pay-here. A provenleaderinsubprimefinancingsince 1972, Credit Acceptance allows dealers to offer Guaranteed Credit ApprovalSM to all consumers, regardless of their credit history. The company was ranked the 6th largest used car lender and 1st largestdeepsubprimelenderbyExperian Automotive (2nd Quarter, 2011), ranked the 30th fastest growing company by Fortune (2011), and is financially stable and publicly traded (NASDAQ: CACC).

What does Guaranteed Credit Approval really mean?

Good people incur bad credit for many reasons,despitetheirbestefforts. Credit Acceptance dealer-partners can offer financing to these consumers, allowing them to purchase a better vehicle than they could with cash alone. An even greater benefit for consumers is the opportunity to establish or re-establish their credit score by making on-time payments on their automobile loans, as Credit Acceptance reports to the major credit bureaus.

Byunderstandingconsumers’needsand constraints, and structuring affordable payments,dealer-partnerscanmaximize success – both for themselves and their customers. As a result, these customers tend to be very loyal and often return and provide referral business.

CreditAcceptancegivesitsdealer-partnerstheopportunitytosellmorecarsand positively impact their customers’ lives.

Between January of 1999 and August of 2011, Credit Acceptance paid dealerpartners more than $796 million in total Portfolio Profit, meeting its commitments and funding deals quickly.

Credit Acceptance provides all the benefits of buy-here, pay-here, without the hassles. Their Portfolio Program addressescashconstraints,givingdealers acash-positivepositionatdeliveryrather than having most of their money “on the street.” They manage all aspects of the collection process, allowing their dealer-partners to spend more time selling cars.

we don’t have to worry about capital constraints, make any collections calls or worry about repossessions. Credit Acceptanceallowsustofocusonsellingmore vehicles.” - Fred Seeley II, General Manager , Allstate Auto, Ohio

“Without the Portfolio Profit from Credit Acceptance, we may not be here today. The market got really rough for a while. There were not as many financing resources available and consumers were not buying vehicles. Fortunately, several ofmypoolswerepayingout,enablingusto keep our doors open. Business is back on “We have dabbled in buy-here, pay- trackandwereceivedmorethan$1million here but the primary problem is a lack in Portfolio Profit (backend money) from of capital - you can sell yourself out our Credit Acceptance contracts.” - LaVon of business that way quickly. Credit Schwartz,owner, KC’sAutoLand,Michigan Acceptance is a profitable alternative to buy-here, pay-here without tying up CanCreditAcceptanceworkforYOU? Credit Acceptance works with thouthe cash. Our initial business model was to supplement or add incremental sales sands of dealer-partners nationwide, through the program; but due to the per- from small buy-here, pay-here dealers formance of our loans, we now do between to some of the largest dealer groups in a third to half of our business with Credit the country. The company has created Acceptance.”-StuartLandsverk,Managing proven solutions to common dealerPartner, Arizona Auto Sales, Arizona ship needs.

The Credit Acceptance Difference Credit Acceptance dealer-partners make an up-front profit (unlike the To learn more about how average buy-here, pay-here deal) and share in total contract profits (Portfolio “There are a lot of benefits to doing Credit Acceptance can help you, call Profit), just as they would had they built businesswithCreditAcceptanceoverbuy- 800-873-0512 or visit www.credit their own buy-here, pay-here business. here, pay-here. With Credit Acceptance, acceptance.com.

DISCOVER THE DSC DIFFERENCE! “We don’t just lend you money, we go to work for you every day!”

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A Solid Source of Capital Dedicated to Buy-Here, In today’s current market condiIn addition to supplying our clients Pay-Here Dealers tions it is difficult to obtain financing, with access to cash and liquidity, especially for companies dealing with consumers with limited or impaired credit.

If you could use additional funding to invest into your business then consider selling your in-house accounts!

Sterling Credit Corporation is a buyer of non-prime retail automobile sales contracts from independent buyhere, pay-here dealers and finance companies.

Sterling Credit Corporation provides an immediate return from your own receivables;generatingfundingwithout incurring more debt.

we are proud to offer exceptional customer service, specifically designed to manage a buy-here, pay-here customer base.

The objective of our corporation is to build long-term relationships with dealers looking for a solid source of capital and a quality collection team for their customers. You can be confident that Sterling Credit Corporation is a stable source of funding to assist with your financial needs!

Check out our website for more information: www.sterlingcredit corporation.com.

Payteck’s Experience Shows Payteck has been in business for over ten years serving buy-here, pay-here dealerswithavarietyofstarter-interrupt systems . These years have provided a great foundation to develop products and software solutions for dealers.

Payteck is very proud of its products andWebsitethatallowsuserstospecify where they can login into the system, from work, home or anywhere else.

Payteck offers many reports to assist in site management and analysis, including batching commands by a singlemanager.Contractssoldtofinance companies can easily be transferred through the LINK feature.

The ability to program the “starter

off ” at different times is one of the most popular attributes of the Payteck starter-interrupt device. Experience has taught us that setting the “starter off” for the middle of the night is most effective.

Customers are easier to deal with in the morning before they leave home, than if, for instance, you shut off the vehicle when they’re taking their child to the doctor.

Call us today for a demonstration, 800-880-3081 or visit us at our Web site: Payteck@payteck.cc.

The Payteck Web site provides you with all the tools needed to manage your vehicles.

CAR Financial continues to expand its suite of services for the buy-here, pay-here dealer through continuous product enhancement. With capital becomingscarceranddealersstruggling to acquire inventory, CAR introducd a floor plan product in 2010.

RickPotter,PresidentofCARFinancial says “We introduced a robust floor plan lending platform to the top tier dealers to help them cope with today’s inventory challenges.”

“We continue to enhance our core products to accommodate dealer’s unique needs, including the planned introductionofapaymentshareproduct offering later in 2011.”

As CAR Financial strives to be the most consistent provider of solutions for the buy-here, pay-here industry, it has seen competitors come and go, often taking dealers with them as they cause the dealer to modify their business around a particular program.

Robert Chappell, Divisional VP says “In our case, we view the dealer as an essential part of our business model,

and work closely to understand the dealer’s cash flow needs to determine if we can customize a solution.”

CAR delivers vital solutions through a network of branches and dedicated industry professionals who have vast knowledge and experience operating in the buy-here, pay-here industry.

Unlike some finance companies that see buy-here, pay-here as a segment of the business, Potter exclaims, “At CAR Financial, buy-here, pay-here is our only business!”

Operating in 46 states, CAR has maintained a consistent approach to the market where others come and go.

“It is our intent to be in this market for the long term, reflected in our commitment to industry events, local, state, and national associations, and our participation in ongoing dealer education,” said Chappell.

Whether you need short term cash flow to buy inventory, expand your business, or to meet short term obligations, CAR is ready to provide capital to your business through one of its many buy-here, pay-here funding options.

Are you new to buy-here, pay-here and looking to make a long term commitment with a company that can grow with your business? Contact a CAR Financial Representative today at 877-570-8857, or visit us at www. carfinancial.com.

!"#$"%&'" ($)*)+,- ./"0 1,$ 2",/)+* 3$(*$,4 5)&'%678%/9::"//;9-%<",$/%(; %=,$&+"$)+* 5)&'%>",-"$/%,:$(//%&'"%.+)&"0%?&,&"/@ A( &( 555@+($&'-,+00",-"$/@:(4 &( 0(5+-(,0 B'" B(= C7 D)/:(+:"=&)(+/ (; E"+#B#F5+G%H%2",/"#B#F5+G !

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The more than $400,000 we’ve received in Portfolio

Profit from Credit Acceptance over the last four years has been our

primary revenue source. We’ve been

with Credit Acceptance for six years and I wish we’d signed up 16 years ago. It’s almost hard to believe the backend money could be this good, but when you follow their suggestions for implementing their program

”

into your business, it is.

- Todd Stewart President, Moore Stewart Motor Company, Inc. Selma, AL

Real Dealers. Real Profits. Real Fast!

• 4th largest non-captive used car

sub-prime lender in the U.S. (source: Experian® Automotive)

• Increased Floor Traffic & Sales • Increased Repeat & Referral Business

• 100% Non-Recourse Financing

• Marketing Materials & Strategies

• Say “Yes” to Everyone- approval in 30 seconds or less

• Easy, Fast Funding!

• Stable, Proven, Committed - since 1972; publicly traded on NASDAQ (CACC) • Increased Capital - cash positive position at delivery and you share in the profits down the road

Now H ir Natio ing... nwide !

Mark et A Mana rea gers See C lass for de ifieds tails

• Collection Management - no collection headaches; like BHPH without the hassle

creditacceptance.com

1-800-873-0512

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Financing Simplified America’s economy is paralyzed by complexity. Banks are offering the lowest mortgage rates in over sixty years, but few can make it through the loan approval, underwriting and closing processes. The federal government is so complex and divided that they can’t agree whether line items are revenues or expenses.

Buy-here,pay-heredealersunderstand that simple rules and processes build a successful business. They treat their customers with respect and dignity, providing reliable transportation, easyto-understand repayment terms, and clear collection efforts.

Personalserviceandadevotedfocuson

their local market keep people coming back and referring new customers to the dealer.

Dealers need a financing source that follows the same philosophy.

Vehicle Acceptance funds every deal, provides the dealer with great personal service, and helps all dealers maintain full compliance. Twenty two years of service to the buy-here, pay-here community has taught us how to listen to our dealers- we now provide cash and service solutions in thirty-seven states.

VAC keeps financing simplified.

Please visit www.VACorp.com/ UCN or call 214-818-4510 for more information.

Go Online forAdditional Pre-Owned Inventory ResultsfromtheThirdAnnualShipCarsNow 2011 Dealer Survey show that auto dealers are increasing their use of the Internet to purchase pre-owned inventory. Dealers also responded that they want better auto transportoptionsfromInternetauctionsites.

DealersIncreaseUseofInternetAuctions The adoption of online auto auctions as a source of inventory among dealers continues to expand. The majority of dealers cited convenience and vehicle availability as their top reasons.

Expanded Trading Range The data also show more dealers are expanding their trading range by buying

from auctions outside their local area.

Auto Transport Options Are Key to Online Trading As dealers buy cars online hundreds of miles outside their normal trading zone, the need has increased for quality, nationwide auto transport. When buying inventory online, dealers should use an auto shipper who is experienced and reliable, and who provides mulitmodal rail and truck options to meet price and timing requirements.

For more information about multimodal auto transport or a copy of the 2011 Dealer Survey Report, visit http://www.

ShipCarsNow.com/news or call toll free (866) 207-3360.

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The DSC Difference How do you think DSC’s people make a difference?

Geitner: There is a culture of collaboration between the company and its employeesatDSC.We believe in our people, Brian Geitner andtogetherwework toimprovetheirskills and quality of work life. We provide the basis for team building by showing respect, recognizing accomplishments and encouraging an entrepreneurial approach.

Why do you say “service” is your middle name?

Geitner: We know that steady and attentive customer service builds business and loyalty. We also believe every customer deserves our “Best in Industry” service. Attention to detail and relationship building at each and everyinteractioniskey. Throughasking aboutandunderstandingourcustomers’ business, we learn their needs, show we care, and build solutions.

As CEO, what do you do to make a difference?

Geitner: My job is to continue building acompanyofvalue. Ofcoursethisstarts with hiring great people, giving them the right responsibilities, empowering

them for success, and then getting out of their way. With the right people in place,DSCthrivesatprovidingproducts and services which help our customers build their business. I know this as I talk to new customers every week, learning about their business needs.

In10wordsorless,whatisDSCgoing to do in 2012 to make a difference?

Geitner:Innovateandcontinuetobuild value for our employees/customers.

How does DSC make a difference in their community?

Geitner: DSC actively invests in local communities through volunteerism and charitable contributions. We encourage our employees to volunteer and work side by side with the people of their city or town to make a “real” difference through their actions.

Summarize your goal for DSC. Geitner: Our goal is to become known for the positive way we conduct ourselves, the dynamic way we treat our customers, and the consistent way we perform in industry. Our goal is to “Be the Best!”

•

LeedomTwentyGroup Program Delivers BHPH Success, ROI

Five of the last seven NIADA National Quality Dealer honorees have participated in a buy-here, pay-here Leedom Twenty Group.

That one statistic tells us a couple of things: one, buy-here, pay-here has become a mainstream business

dealers can compare their financials to thebestintheirgroupinvariousaspects of their business, as well as to benchmarks from across the country.

Another feature of the Twenty Group meeting is the idea session.

Here dealers bring with them a proven

The bonus is you bring one idea and leave with 20. model and two, the education and training afforded dealers through this dynamic program has paid dividends in operational expertise and profitability.

Leedom Twenty Groups offer dealers the ability to meet with fellow retailers whosharesimilarbusinessmodelswith similar operational and portfolio size to share best practices and ideas. They meet three times a year at a location determined by the members. Leedom Groupmakessuretherearenocompetitive issues among the members within each group, as well as moderates and facilitates the meetings.

One of the keys to success of the meetings is the insistence each member provide detailed financial and operational information that is collected and shared with all members in the proprietary Leedom Composite.

By sharing this critical information,

business idea that has either generated additional revenue or reduced overhead expenses. Group members voteoneachideaandwinnerisselected.

Usually a small amount is wagered by the attendees. The bonus is you bring one idea and leave with 20.

Dealers not only get the expertise of the Twenty Group moderator and support with a host of products and services offered by the Leedom Group, they also get the expertise and business acumen of their fellow members, who they often call upon in between meetings for their thoughts and suggestions in making decisions.

If you would like to learn more about Leedom Twenty Groups or other Leedom Group products or services, contactDiannFlandersat800.966.8733 orsendherane-mailatdiann@leedomgroup.com. Visit Leedom’s web site, www.leedomgroup.com.

BECAUSE IT DOESN’T GROW ON TREES

GPS TRACKING WILL SAVE YOU MONEY

AFFORDABLE. GPS TRACKING SOLUTIONS

866-298-6333

Scan with your mobile device to learn more about EnfoTrace.

27

www.EnfoTrace.com

twitter.com/enfotrace

facebook.com/enfotrace

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powerful partnership Spartan Financial Partners specializes in providing capital solutions for BUY HERE PAY HERE dealers and Independent Auto Finance companies. our solutions include:

Lines of Credit Bulk Acquistions Your focus is GROWTH. Ours is helping you ACHIEVE it.

A partnership with Spartan Financial is a formula for success. Our expertise and unique approach to automotive finance enables us to provide a structured capital source tailored to fit your business needs.

Our team is available to answer any questions you may have and explain the benefits of our financing solutions.

Mark VanGeison, President { 864.580.1039 mvangeison@spartan-partners.com } Paxton Wright, Director of Client Management { 864.256.2226 pwright@spartan-partners.com } Jim Brinkley, Director of Business Development { 864.506.5242 jbrinkley@spartan-partners.com } Keith Kulas, Director of Business Development { 864.256.2158 kkulas@spartan-partners.com } Russell Corey, Director of Bulk Acquisitions { 864.590.2587 rcorey@spartan-partners.com }

Boost Foot Traffic and Profits Little Guy Worldwide recently forged a strategic marketing partnership that will benefit its entire dealer body. The CBS television show, “The Price Is Right” has been a stalwart in Little Guy’s advertising portfolio, however September marked the beginning of a new relationship when “Let’s Make a Deal” began featuring Little Guy teardrop camper trailers.

The Little Guy teardrop trailer is an eye-catchertostartwith–drawingmore people to the lot. To further stimulate interest, Little Guy routinely engages in this type of mass advertising. Currently,

Little Guy is in talks with prime time programming and pushing forward with a litany of national print media campaigns.

Our long term dealers in San Diego, CaliforniaandCenterRutland,Vermont, and our newest additions in Kokomo, Indiana and Thurmont, Maryland can attest to the validity and value of national advertising programs.

In the end, they enjoy high grosses from selling Little Guy teardrop trailers as well as increased foot traffic – which inevitably yields more sales volume. For more information, call 877.545.4897.

Expertise Makes Us Unique Spartan’sunderwritingisverysimple: no cookie-cutter approach. We understand that each and every buy-here, pay-here dealer or finance company is unique. They each have something different that they bring to the market.

We tailor our capital solutions to meet the underlying business philosophy and strategy of the borrower, which allows us to be very flexible in our dealer terms, advance rates, etc.

Why are we a unique lender? We are affiliated with a division of American Credit Acceptance, a large indirect

lender. ACA operates two different platforms within deep subprime auto so we’re buying point-of-sale contracts fromfranchisedandindependentdealers throughout the country every day. That knowledge of individual underwriting at the loan level, coupled with our expertise in collecting and serving those customers allows us to be a unique lender to the industry.

It’s that expertise that allows us to be a little more flexible and perhaps moreaggressivethantraditionallenders would be in subprime. In addition to revolving warehouse lines of credit, Spartan also purchases portfolios in bulk.

The best system for these unstable economic times!

Very competitive pricing Unparalleled service and support Unsurpassed quality Payteck has been a dependable, long term supplier for over 10 years.

Innovative Credit Solutions for High Risk Sales

(800) 880-3081

www.payteck.cc

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NABDAnnouncesFinalAgenda The Most Affordable Solution forAtlanta BHPH Conference in Today’s Market Houston,Texas–TheNationalAlliance of Buy Here, Pay Here Dealers (NABD) today released a final agenda and the details of its upcoming conference in Atlanta,GeorgiaonNovember6-8,2011.

Ken Shilson, CPA, founder and

“Our Goal Is Your Success” President of NABD, indicated that this will be a dual-track program for both new and experienced operators.

“This conference is for anyone who is interested in being successful in BHPH today! In fact, that is our conference theme,” he said.

Our educational sessions feature many of the nation’s leading experts and operators. All sessions include an operator’s perspective on each topic.

The conference focus is on compliance, capital, and finding the best inventory in the challenging automotive marketplace of today. All workshop sessions will be interactive so attendees can ask questions and get immediate answers to their questions and share

their knowledge with others.

Shilson indicated that the facilities for this conference are outstanding.

“We are delighted to have this venue at the Georgia International Convention Center (GICC) and the adjoining new GatewayMarriottHotel.Thesefacilities are connected to the Atlanta Hartsfield Airport by a dedicated sky train so attendees will not need ground transportation. “Attendees can be in their hotel room and at the show within 15 minutes after landing,” Shilson stated.

Our large exhibit hall contains all the latest products and services and features all the newest technology. All the products and services will help attendees increase cash flow and profits.

Several new capital providers will be exhibiting at the conference for operators who are seeking financing.

NABD has obtained discounted room rates of $129 per night while supplies last. Availability is limited so anyone interested is encouraged to register as soon as possible.

Registrations can be made online at www.bhphinfo.com or by calling NABD headquarters at 832-767-4759.

NABD is the only used car special interest group exclusively for the selffinance industry. Membership is open to anyone in the BHPH industry and to service providers. Members pay no dues.

Giventhecurrenteconomicsituation, buy-here, pay-here has become an extremelypopularoptionforconsumers, and auto dealerships are finding that to keep up their business, this is an option they need to offer. How do they gain assurance in this ever-changing economy?

This is where GPS vehicle tracking

GPS device a ranking place within the vehicle tracking industry.

Why not protect your dealership’s assetsbyinstallingaGPStrackingdevice into vehicles? If a payment is missed you can simply locate the vehicle from your computer and recover it, without paying numerous repossession fees. Of course, the goal is to encourage your

comes into play. This simple andaffordable solution allows dealers to know where their assets are at all times.

GPSVehicletrackingisbecomingwell known throughout the United States.

Dealers can put their worries aside knowing their assets are protected, while saving invaluable time and money.

Who represents the value leader for this popular solution?

EnfoTrace GPS has proven itself to be the most affordable solution in the market today. The unit is a small, self-contained device that can quickly and effectively locate any vehicle or mobile asset.

State of the art technology along with simplicity has given the EnfoTrace

customer to make the payment, but sometimes physically removing the vehicle from its location is the best recourse.

It’s not as complicated as it may seem! EnfoTrace’s device is small and sleek in design, which makes it easy to install and conceal.

Customer support and training videos are available 24 hours for your convenience.

In the “buy-here, pay-here” auto market GPS vehicle tracking has become key in keeping up with the competition.

To learn more about how your dealership can stay ahead of the game visit the EnfoTrace website www.enfotrace.com.

IS YOUR GPS DEVICE

MEETING EXPECTATIONS? Follow PassTime for the Right Solution.

“Since we started using PASSTIME GPS our job has been much easier and when we try to locate a vehicle, we find it the first time, every time!”

— Michael Garcia, Florida Auto Dealer

PassTime provides a complete suite of GPS and Automated Collection Technology products.

Visit us at: PassTimeUSA.com or call us at: 1-800-828-1564

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DemandIncreasesforReputableVSCProviders The stock market collapse. The tsunami in Japan. Flooding in the Midwest. All disasters directly unrelated to the used car market, but very impactful. The supply of used vehicles has been in sharp decline since 2008, and is not forecasted to bottom out until 2012-2013. Meanwhile, demand has risen dramatically, and with it, pricing.

Dealerships nationwide are struggling to maintain their inventories while accommodating their customers with competitive pricing.

Withhigher-mileagecarsbeingsoldat higher prices than ever, the value of partnering with a reputable vehicle service contract (VSC) provider that will help your customer in the instance of mechanical breakdowns has risen dramatically. GWC Warranty has seen a marked level of interest from dealers looking to partner with a financially secure, highly-regarded company to help them manage potential mechanical problems and increase customer satisfaction.

“The level of interest from dealers nationwide looking to equip their vehicles with GWC’s full suite of products has steadily risen,” said Rob Glander,GWCPresidentandCEO.“They understand the value in protecting their customers who have purchased

these higher-mileage vehicles, a niche in which GWC has specialized for 16 years.”

As the supply of used vehicles dwindles, partnerships with reputable VSC providers have reached critical mass.

Conversely, bad experiences with predatory VSC providers who offer programs that sound “too good to be true” have made the choice of provider more important than ever.

GWC is more than a service contract.

We’re a promise. We’re a promise that we will provide comprehensive, financially viable products that cater to your customers’ needs and help maximize your bottom line. We’re a promise to provide stability through good times and bad. We’re a promise that our expertise in this industry creates security for both you and your customers, both now and in the future.

In this economy, there is no intelligent alternative to partnering with a seasoned, reputable, financially sound VSC provider. It is fast becoming the primaryobjectivefordealersnationwide toalignthemselveswithGWCWarranty and gain the “No Worries. Just Drive” experienceforthemselves. We’reproud to be one of the most trusted names in the business, and to partner with dealerships of the same kind.

To learn more about us, visit us at GWCwarranty.com, or follow us at facebook.com/GWCwarrantyortwitter. com/GWCwarranty.

800·482·7357 x767 | GWCwarranty.com

Credit lines from $10,000 to $1,000,000.

pays up to 90% on the dollar, the industry’s highest advance dealer continues to collect no reserves no aging required weekly, bi-weekly, monthly contracts any make, model, mileage starter interrupt/ GPS devices welcome

At GWC, we cover the entire USA from coast to coast.

There are so many good reasons to ride with GWC: COVERAGE: With almost 700,000 claims totaling over $250,000,000 paid to date, you can rest easy knowing your customers will be covered

Maine PortlandOregon Portland

to

CONFIDENCE: We’ve been preserving peace of mind for over 1.2 Million drivers since 1995 TRUST: We’re a valued partner of over 20,000 franchise and independent dealers nationwide for more than 16 years and counting

ParisIowa ParisTexas

to

SUPPORT: We’re backed by companies rated A or A- (Excellent) by A.M. Best STRENGTH: Owned by CIVC Partners, a Chicago based private equity firm with over $1.3 Billion under management JUST GO!: You can be assured your customers will have “No Worries. Just Drive”.

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It’s Time to Change to Digital Data Management

Each segment of the automobile retail industry — franchise dealers, independent dealers, and buy-here, pay-here dealers has unique operating practices and processes.

While the systems and culture may vary, the fundamental practice of building customer relationships remains the same. Whenitcomestomosteffectively utilizingyourdealerships’mostvaluable asset—your customers—dealers across the board face the same challenges: how do we effectively and efficiently maintain all the information we have about our customers, and what is the best way to then use that information to help us sell more cars?

We’re talking about data management. Data management is universal, whether you’re a buy-here, pay-here dealer or multi-franchise.

Every customer comes to you at a cost: signage, web sites, advertising, anything that you use to drive traffic.

You’dbesurprisedtoseethetotalamount it costs you to get a single lead. It’s easy to recognize the importance of retaining customer information.

When you lose a lead’s contact information, or do not follow up, those missed opportunities translate into money lost. Adopting a system to maintain customer information and make follow-up simple is a worthwhile investment.

Havingagoodsystemforfollow-upand

relationship building is important.

You need a system that is tailored to your needs, gives you quick access to your information when you need it, and provides for accountability for your sales staff.

For those of you who are still using paper it is time to change to a digital solution.

The first step to reverse the paper trend is to acknowledge you are losing valuable information.

Has your staff been trained to collect thelead’sfullname,phonenumbersand email address? If not, make it a priority!

Missing email addresses reduce your ability to compete effectively.

The market place has a number of solutions to manage data. The applications are called Customer Relationship Management (CRM) or Internet Lead Management (ILM).

You need to set the tone to your salespeople that this is the way you are going to operate. If you leave the decision to them, you will fail and waste your money.

An added bonus of a digital solution is daily salesperson accountability. A web-baseddigitalsolutiongivesyouthe opportunity to see what is happening at your store, every minute of every day, allowing you to keep track of how your salespeople are spending their time, from your smartphone. Make the change today!

The Dealers’ Source for Industry News.

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Keep up with the latest happenings in the industry.

Sign up for our daily newsletters today!

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Makes Collections Effortless Micro 21 has been in the business of providing superior finance systems to automobile dealers since 1974. Since that time, Micro 21 has established itself as one of the leading players in dealer software. With its easy to use and intuitive buy-here, pay-here

module, dealers can count on Micro 21 to deliver a first-class product that makes collections effortless.

The program is customizable to suit each dealer’s individual needs.

If a dealer needs part of the program altered to his or her specifications, the knowledgeable support staff will work directly with the dealer to make it happen. This tailored approach has becomeahallmarkofMicro21’sprocess and has been a driving force in forging lasting business relationships between the company and its clients.

A reliable, top-quality collections program is essential for any buyhere, pay-here dealer, large or small.

With Micro 21, dealers receive the quality and reliability they need to effectivelymanagetheircollections. Fora free demo of the software, call (800) 647-1121.

NIADA Certified Program Grows The NIADA has partnered with NAC to create the NIADA Certified program, giving independent dealers the ability to compete with franchise dealers’ manufacturer certified pre-owned vehicles.

TheNIADACertifiedProgramincludes comprehensive 12 month, 12,000 mile warranty coverage with no deductible, 24-hour roadside assistance, towing, and rental, including most 10-year-old or newer vehicle models with less than 100,000 miles.

Once the car has passed inspection and meets the Program’s certification standards, the vehicle is then registered with NIADA Certified

through our unique online Express Lane™. The dealer then has access to a free AutoCheck® report, compliant Buyer’s Guide, a clean and professional inspection checklist, and the capability to export certified inventory to third party portals including eBay® Motors and EVERYCARLISTED.com®.

These exports provide the ability to advertise the vehicle as “NIADA Certified” and offer it with a limited warranty that begins when the vehicle is retailed to the consumer.

For more information on the NIADA Certified program, please call us at 800-840-2567 or visit www.niadacertified.com.

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Take Control of Challenging Issues Asadealerintoday’s market you are faced withmanyquestions: How do you stay on top of increasing compliance requirements? How do you source inventory in Jeff McCurry this current market?

Finance How do you grow a Express profitable portfolio?

How can you obtain capital for your business? Within all these questions, we find some of the most challenging issues affecting your dealership’s stability, profits and reputation.

Asalways,complianceremainsafocus.

Our industry is inundated with compliance requirements and you, the dealer, are charged with having to monitor these ever changing requirements.

Privacypolicy,creditscoredisclosures, Red Flags, state and federal regulations, usury, money laundering – the list becomes overwhelming.

Eachmistakeoroversightnotonlyputs your business at risk but you become more vulnerable to a world of audits and fines. What can you do?

Educationandawarenessareobvious.

Attend conferences, read publications, talk with other dealers – stay in the know. Buteducationandawarenessare only the start, it is imperative that you have written compliance policies and

procedures. Utilize systems that can incorporate these policies throughout your business process.

There are many solutions designed to assist you with your compliance requirements. However, the only way you can stay compliant is on a day to day, transaction to transaction basis.

It must be a part of your everyday business.

Noquestionanothermajorissuefacing your dealership is sourcing inventory.

There are a number of factors that have contributed to the shortage of vehicles, but regardless of the reasons, the fact is acquiring the right inventory has become an extremely challenging task. Costs have sky rocketed and ultimately you find yourself with older model, higher mileage, higher cost vehicles.

Short of flooding the market with used vehicles, there is no immediate remedy to this problem. With that said, it is more important than ever to make informative decisions when purchasing inventory.

There are many tools that give you instant vehicle information. Many of these solutions provide valuations, historyreports,andvehiclecomparisons directly to your mobile device.

Utilizethisinformationaspartofyour purchasing process. In addition, it has become necessary to branch beyond

your local acquisition channels, take advantage of online markets and auctions. These online channels provide a streamlined method for acquiring inventory.

Unfortunately the sourcing issue has directlycontributedtoathirdchallenge facing your dealership, growing your notes and mitigating your risk.

Tooffsetrisingcost,manydealershave increased sales prices. Unfortunately down payments have not increased, so to keep payments manageable, loan termshavebeenextended. Thismethod of maintaining profits has created a deferred issue, balances on the street are higher, vehicles are older with more mileage–yourreceivableshavebecome higher risk.

To some extent it may be advantageous to lower profits and maintain shorter terms. Incorporating scoring modelsandunderwritingtoolstoevaluate customer, vehicle, and loan risk has become an integral part of mitigating portfolio risk.

As always, staying on top of collections and utilizing collection tools is an absolute must. To reduce losses, you should consider incorporating payment protection and GPS devices.

These devices have proven results in extending the number of payments collected and recovering skips.

In addition to these challenges, you

need more capital. With the down economy, capital for this industry has been difficult to obtain. Banks and finance companies have been in turmoil, and obviously reducing risk has become their priority.

There is still money available but lenders are no different than you, they want lower risk and more control.

It is important that you demonstrate the ability to stay compliant, control costs,andofcoursereducelosses. Some lenders recognize the potential in this industry and are looking for dealers that not only recognize the challenges but have a plan that addresses these challenges. Ultimately, if you can prove to your lender you have proper controls in place to meet the challenges of this market, your access to capital increases.

We’veoutlinedsomeofthechallenges facing your dealership, as well as some solutions that can help you address these issues. Make it a point to incorporate these solutions into your business processes. Many of these tools may already be available within your DMS. A good system should integrate the “best of breed” solutions into every transaction. Gaining understanding and control will demonstrate to both auditors and lenders that you have controls in place to meet the challenges of this market.

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CELEBRATING 25 YEARS!

25 years of experience, 25 years of knowledge, 25 years of expertise... financing inventory to help dealerships grow their business.

Our Service Will Floor You!®

1-888-335-6675

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Helping you grow your business is our business.

Introducing TD Auto Finance As one of North America’s top bank-owned auto finance companies, TD Auto Finance brings you over 45 years of expertise you can count on. And with the backing of TD Bank Group, we also offer stability you can trust. We understand your business and are committed to helping it grow – today and into the future.

We’re ready for your business, now open 7 days a week. Call TD Auto Finance today at 1-800-200-1513 or visit us online at www.tdafdealer.com

Part of the TD Bank Group, a Aaa-rated bank ranked as one of the safest banks in North America.

TD Auto Finance LLC, is a subsidiary of TD Bank, N.A. TD Bank Group is a trade name for The Toronto-Dominion Bank. Used with permission. For detailed credit ratings for The Toronto-Dominion Bank and TD Bank, N.A. visit http://www.td.com/investor/credit.jsp.

Credit Ratings are not recommendations to purchase, sell, or hold a financial obligation inasmuch as they do not comment on market price or suitability for a particular investor. Ratings are subject to revision or withdrawal at any time by the rating organization.