10/13/09
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October 19, 2009
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Toyota’s Back In First for Certified Sales By Ted Craig
Toyota dealers were the biggest sellers of certified vehicles in September and the brand is poised to claim the sales crown for the year. Dealers sold 20,883 certified pre-owned Toyotas last month, according to AutoData Corp. Chevrolet finished as the number two brand with 13,064 certified units sold. Toyota dealers have sold 204,171 certified units so far this year. The brand led the industry for years in certified sales, but fell behind Chevrolet a few years ago. Both experienced a decline this year, but Toyota’s was less. Toyota even outsold the five brands within the GM Certified Used Vehicles program. Cadillac, Saturn and Hummer are counted separately. Dealers in the GM program sold 19,866 certified units in September. The discontinued Oldsmobile brand contributed the least, with only one certified used sale for the month.
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Toyota’s September sales were hurt by a lack of inventory and floor traffic, said Norm Olson, sales operations manager for the used-vehicle operations department of Toyota Motor Sales U.S.A. “We thrive off new-car walkin traffic that can’t buy a new car,” Olson said. The Cash for Clunkers program stirred up so much business in August that the month was the third best ever for Toyota certified. Longo Toyota in El Monte, Calif., and Toyota of Roseville, Calif., continue duking it out for first place in certified sales. A relative newcomer, Michael’s Toyota of Bellevue, Wash., has moved into third. “It’s very good being in that crowd,” said Michael’s vice president Erik Paulson. Paulson made what he calls a “culture change” a few years ago to turn the store into a true certified dealership. The first step in that direction was hiring away Kevin Breault from Beaverton Toyota. The Oregon store was the top certified dealer in the region at that time. It took a few years for Paulson and Breault to re-invent Michael’s approach to certified sales. Now the effort has paid off. Paulson said almost all of the store’s used Toyota inventory is certified. Michael’s keeps between 180 and 200 used vehicles on the lot, of which about 75 percent are certified preowned. Stocking those vehicles proves a challenge for Michael’s today, as for all dealers. One way the store has responded is boosting the size of its Toyota rental fleet to 120 units from 50. The dealership also more aggressively pursues trade-ins.
Photo courtesey of NAAA PARTNERS IN PROGRESS: NAAA President David Angelicchio presents Chairman Bob McConkey, Jr., with a token of appreciation from the association for his year of service. Manheim’s Jay Cadigan was named presidentelect at the convention and Charlotte Pyle, co-owner of two West Virginia auctions, was elected vice president.
Auction Association Revises Standards
SAN FRANCISCO – The big news coming out of this year’s National Auto Auction Association convention was new industry standards for electronic condition reports and arbitration. The association has attempted moving toward standards for both for several years. Its officers feel they finally accomplished this goal by taking a more focused approach. Rather than having a volunteer committee create a set of standards that pleases all parties, the NAAA hired an outside firm that developed standards that work for all parties, explained NAAA President David Angelicchio. Another important difference this time is the association gained the support of Manheim and ADESA. Some of this was achieved through fairly simple steps. For example, the NAAA eliminated the optional “white light” designation for a vehicle that Manheim never used. The red, yellow, green and blue lights remain in place. NAAA’s mission now is spreading word to the dealers about the new standards. Information about both, including a full copy of the arbitration standards, can be viewed at NAAA.com. Kristie Griffin, president of Greater Milwaukee Auto Auction, suggested creating a laminated poster each auction could place in its arbitration office. This would settle many dealer disputes, she said. Continued on Page 3
IN THIS ISSUE • ADESA creates new division to focus on dealer consignment. – Page 4
• Wholesale prices started easing down this month. – Page 6
• Criminal poses as transporter to steal car from auction. – Page 5
• Remarketers from the auto manufacturers share insights. – Page 8