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1-800-554-1026 October 19, 2015

ON THE WEB: Cox Automotive Closes Dealertrack Purchase

www.usedcarnews.com

Dealer Aids Rainsoaked Community

Cox Automotive Inc. has completed its acquisition of Dealertrack Technologies Inc. in an all-cash deal. The deal closed on Oct. 1, several months after it was originally scheduled to close.

Creditor Enters New Warehouse Facility

Credit Acceptance Corp. announced the completion of a $75 million revolving secured warehouse facility with an institutional investor. The company’s contractual relationships with its dealers remain unaffected, with the dealers’ rights to future payments of dealer holdback preserved.

Wholesale Prices Rise In September

Wholesale used vehicle prices increased for the fourth consecutive month in September. This brought the Manheim Used Vehicle Value Index to a reading of 124.8, representing an increase of 2.8 percent from a year ago.

Rush - Dated Material

UNDERWATER: A car suffers flood damage during the recent 1,000-year rain in South Carolina. By Ted Craig

Dealers in the Carolinas are rallying to the aid of South Carolina’s residents following the devastating floods in the state. The Carolinas Independent Automobile Dealers

Association is asking for donations from its members and local auctions to help those in need. Luke Godwin, the president of the association, is leading by example. Godwin owns Godwin Motors in Columbia, the

state’s capital and center of the hardest hit region. The area received almost eight inches of rain in 24 hours the first weekend in October. The 1,000-year storm flooded towns, destroyed dams and caused bridges

Photo by The Associated Press

to collapse. “Monday was bad for everybody,” Godwin said. He went down to his store, which was spared any damage because of its location, to see if he could help out those in need. Continued on page 6

CFPB Mulls New Arbitration Rules to Make Class Action Easier The Consumer Financial Protection Bureau is consid- and services that the CFPB oversees, including certain ering proposing rules that would ban consumer financial auto loans. companies from using arbitration clauses to block classThe proposals being considered would allow arbitration action lawsuits. clauses as long as they explicitly state that they do not apply The bureau is publishing an outline of the proposals in to cases filed as class actions unless a court denies classpreparation for convening a Small Business Review Panel action certification or dismisses the claims. to get feedback. The proposals under consideration would also require This is the first step in the process of a potential rulemak- that companies that choose to use arbitration clauses for ing on this issue. individual disputes submit to the CFPB the arbitration The proposals being considered would ban companies claims filed and awards issued. B:7.175” The Bureau is considering publishing the claims and from including arbitration clauses that block class-action lawsuits in their consumer contracts. awards on its website so the public can monitor them. T:7.175” This would apply to most consumer financial products S:7.175” (See more about the CFPB inside.)

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USED CAR NEWS



New Federal Regulations Place Cars Out of Reach By Jenny King

DETROIT – Government actions affecting vehicle financing and the fuel efficiency of future cars and trucks will have unintended consequences. They will make it more difficult for thousands of consumers to purchase the vehicles they both need and desire. New York multi-franchise dealer Bill Fox, who currently serves as chairman of the National Automobile Dealers Association, told members of the Automotive Press Association here recently that federal regulations as well as proposed ones will impact the ability of consumers to buy new and used cars at prices they can afford. The 2013 Consumer Financial Protection Bureau guidance threatens to eliminate a dealer’s flexibility to discount auto loans in the showroom, Fox said. By limiting auto loan competition, this guidance “will likely raise the cost of credit for car buyers,� he said. “Consumers always have

the right to seek a better deal,� Fox said. Dealer-assisted financing is threatened by the CFPB stand. As many as 80 percent of new-car buyers take advantage of the one-stop shopping dealer-assisted financing offers. “It would lead to higher interest rates for customers,� said Fox. NADA is lobbying Congress to pass a bill (H.R. 1737) that would rescind the 2013 finance guidance. The fuel economy standards issued by EPA and NHTSA that raise the average fuel economy requirements for light vehicles to 54.5 miles per gallon by model year 2025 will greatly increase the cost of each new vehicle, Fox said. “It would add $3,200 to the average price of a new car and could push seven million consumers out of the new-car market,� Fox said. NADA expects sales of 17 million new cars and 12 million used vehicles by its members this year. “We need to keep auto Photo by Jenny King retailing affordable for car DEFENDING DEALERS: NADA Chairman Bill Fox tells reporters in Detroit that new government regulations covering everything from credit practices to recalls will increase costs to consumers. buyers,� Fox said.

Westlake’s Collection Practices Draw CFPB’s Scrutiny

The Consumer Financial Protection Bureau announced an enforcement action against Westlake Services LLC and its auto title lending subsidiary, Wilshire Consumer Credit LLC, for pressuring borrowers using illegal debt collection tactics.

and family. The bureau ordered the companies to overhaul their debt collection practices and to provide consumers $44.1 million in cash relief and balance reductions. The companies will also pay a civil penalty of $4.25 million.

This is a practice known as “spoofing.� “There’s no excuse for lying to your customers, and today’s action will provide millions of dollars in relief for borrowers caught up in Westlake and Wilshire’s deception,� said CFPB Director Richard Cordray.

“Consumers struggling to pay their bills deserve to be treated with respect, not subjected to illegal threats and deceptive phone calls� Richard Cordray The CFPB found that the companies deceived consumers by calling under false pretenses and using phony caller ID information, falsely threatening to refer borrowers for investigation or criminal prosecution, and illegally disclosing information about debts to borrowers’ employers, friends

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In a release, Westlake said it consented to the order to avoid lengthy and costly litigation. The CFPB found that Westlake and Wilshire deceived borrowers into thinking they were being called by repossession companies, other third parties, or even the borrowers’ own family and friends.

“Consumers struggling to pay their bills deserve to be treated with respect, not subjected to illegal threats and deceptive phone calls. We will continue to clean up the debt collection market and root out these illegal and inexcusable practices.� The CFPB’s investigation found that the companies’ debt collectors used a web-

based service, Skip Tracy, to place outgoing calls and choose the phone number and caller ID text that the call recipient would see. Since January 2010, Westlake and Wilshire debt collectors have used Skip Tracy to place or receive calls associated with over 137,000 loan accounts. Some fake accounts presented themselves on caller IDs with terms such as “Pizza Delivery� and “Flower Shop.� Employees would then asks questions to get information about where a car was located so it could be repossessed. The CFPB said that when consumers returned some of these calls they were told they were coming from a repossession company, rather than an attempt to collect on a finance contract. The bureau also found that the companies unlawfully disclosed information about borrowers’ debts to employers, family and friends.

The companies also failed to disclose the annual percentage rate on certain loans as required by law. In some cases, the companies changed the due dates or extended the terms of loans without borrowers’ permission, causing more interest to accrue, while telling consumers that the extensions would have a positive effect. These practices violated the Fair Debt Collection Practices Act, the Truth in Lending Act, and the DoddFrank Wall Street Reform and Consumer Financial Protection Act. Westlake stated these practices were ceased long ago. Westlake also states it has voluntarily taken a number of steps since 2010 to enhance its operational compliance program and improve its compliance management system. This includes hiring a chief compliance officer with experience using compliant debt collection practices.

10/12/15 4:13 PM


1+') 

USED CAR NEWS

NEWS BRIEFS Carfax Partners with vAuto

IAA Adds Total Loss Tools

Carfax and vAuto have completed an integration that matches Carfax data and insights to auction vehicles. The integration gives Carfax Advantage dealers on vAuto Provision and AuctionGenius an instant view of a used vehicle’s reported accident, ownership, service and usage history to make betterinformed auction decisions. Through the integration, vAuto’s Provision and AuctionGenius tools show icons for each unit at auction that indicate reported accidents, available service records, number of previous owners and ownership type (i.e. lease, rental, etc.). If dealers want more information, they can view the full Carfax Report inside vAuto’s platforms. Provision and AuctionGenius users also can filter auction vehicles based on specific Carfax information.

PassTime Rolls out Latest Version PassTime announced that Trax 4 has been released. This is the fourth version of its GPS tracking system. Trax was first introduced in late 2010. Trax 4 boasts an all-new design and a smaller form factor.

Insurance Auto Auction Inc. announced the launch of IAA Total Loss Solutions, a suite of products for the total loss claims process. The first two product lines the company has launched are IAA Inspection Services and IAA Title Services. IAA Inspection Services was developed to reduce the cycle time from date-of-loss to total loss determination. Three offerings are included: Enhanced Images, Condition Report and Appraisal. These offerings are designed to allow direct towing to the salvage auction, where high-resolution imagery can support virtual inspection of vehicles, resulting in faster cycle time and reduced claims cost. Efficiencies within the inspection process can be further leveraged by IAA providing a pre-loss vehicle condition and option report, and a vehicle valuation to provide a comprehensive solution to the total loss claims process. IAA Title Services includes three offerings, all designed to suit the specific needs of the customer, including: Title Procurement, Title Solutions and Title Direct. Title Procurement can be used by

carriers to manage the document procurement process on all total loss claims. Title Solutions can be utilized on those complex claims with unresolved title and document issues. Title Direct is a service that allows documents from multiple sources, typically the insured and lienholder, to be sent directly to an IAA Branch, reducing cycle time and cost for the carrier.

Westlake Expands in Dallas

Westlake Financial Services announced plans to expand its servicing team to the WFS Production Center in Dallas. Since its inception in January, the Production Center has increased support for Westlake’s dealer partners. Westlake Financial Services plans to hire 85 employees by mid-2016. Recruitment and training of new hires has started. Once training is complete, employees were to begin servicing accounts by mid-October.

$57.41 million for its latest quarter. Gross margins widened to 41 percent from 39 percent the same quarter last year. Operating margins rose to 34.74 percent from 31.26 percent.

Kelley Offers VIN Tool Kelley Blue Book now offers customers a new self-service interface for access to new- and used-car Kelley values and configuration data by vehicle identification number (VIN) within its suite of businessto-business solutions. Customers can obtain current vehicle valuations in real time by inputting the desired batch VIN information using a Web-based interface. All VIN-related information is obtained from factory data. Kelley Blue Book also provides all associated VIN trims, if more than one is identified from the decoding process. C R O S S WO R D by Myles Mellor

PAGE 20

Copart Sees Strong Results

Copart Inc reported revenues of $282.29 million and net earnings of Published By General Media LLC USED CAR NEWS (ISSN 1555-7413) is published at 24114 Harper, St. Clair Shores, MI 48080 Phone: 586-772-5200 or 800-794-0760 Fax: 586-772-9400 www.usedcarnews.com Charles M. Thomas - Founder (1947-2002) Lynda R. Thomas, Publisher Colleen Fitzgerald, General Manager

DMS Software

Dealer Marketing Solutions

AutoManager Mobile App

Editorial: Ted Craig, Managing Editor Jeffrey Bellant, Staff Writer

Advertising: Shannon Colby, Account Manager Megan Frump, Account Manager Marie Hingst, Account Manager

Contributing Writers: Ed Fitzgerald, Jenny King, Sheila McGrath

Circulation: Emily Brown Baker, Helen Thomas

Columnist: Tony Moorby

Production: Josie Godlewski, Media Manager Tim Montie, Graphic Designer

'$1' Used Car News is published the first and third Monday 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.

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

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USED CAR NEWS



Another Bank Agrees to Cap Dealer Participation By Ted Craig

Another finance source has agreed to cap its dealer participation as part of a settlement with the Consumer Financial Protection Bureau. Fifth Third Bank agreed to change its pricing and compensation system to minimize the risks of discrimination. The bank will reduce dealer discretion to mark up the interest rate to only 1.25 percent above the buy rate for auto loans with terms of 5 years or less, and 1 percent for auto loans with longer terms. Fifth Third also has the option under the order to move to nondiscretionary dealer compensation. This action spared the bank from having to pay penalties to the CFPB. “Fifth Third’s move to a new pricing and compensation system represents a significant step toward protecting consumers from discrimination,” said CFPB Director Richard Cordray. Fifth Third is one of the nation’s largest automotive creditors, according to Experian Automotive. The CFPB called Fifth Third’s pricing and compensation structure illegal and discriminatory. Fifth Third allowed its dealers to charge a higher rate to black and Hispanic consumers regardless of

the creditworthiness of the borrowers, the CFPB claimed. The regulator said the practices meant thousands of minority borrowers were charged, on average, more than $200 extra for their auto loans between January 2010 and September 2015. Fifth Third will pay $12 million into a settlement fund that will go to harmed black and Hispanic borrowers. The bank gets credit for $5 million already paid out to consumers, but must bring its total payment to $18 million. A settlement administrator will contact consumers, distribute the funds, and ensure that borrowers who were harmed receive compensation. The bureau will provide contact information for the settlement administrator once that person is chosen to address questions that consumers may have about potential payments. This settlement is the latest action by the CFPB that directly affects dealer participation. “If the CFPB had its way, it would do away with dealer mark-up all together,” said Zane Gilmer, an attorney with Stinson Leonard Street. “This is a middle ground.” Congress exempted auto deal-

ers from the CFPB’s oversight, but Gilmer and others see these actions as a way for the agency to get around that limit. He said banks want to reduce their risk of an enforcement action and they do that by limiting dealers’ discretion. Banks are already used to accommodating all kinds of regulators, Gilmer said. For them, dealing with

the CFPB just means learning how to play by another set of rules. It’s a different story for finance companies. They have experienced less regulation over the years. The CFPB changed that with its largest participant rule. The rule covers about 90 percent of all non-bank auto financing, Gilmer said.

Rights Groups Support CFPB (The following is a letter sent out by a coalition of civil rights groups defending the CFPB.) On behalf of The Leadership Conference on Civil and Human Rights and the undersigned organizations, we write to urge you to oppose H.R. 1737, the “Reforming CFPB Indirect Auto Financing Guidance Act.” The sole purpose of this bill is meant to undermine the ability of the Consumer Financial Protection Bureau (CFPB) to enforce laws against discrimination in auto lending. In our view, a vote for H.R. 1737 is a vote to condone discrimination in the auto lending market. For at least the past two decades, financial services regulators have known about discrimination in the auto finance marketplace. The

CFPB is the first and only regulator to directly address this discrimination and its underlying cause, dealer interest rate markups. Car dealers receive a substantial bonus from lenders for increasing the interest rate above that for which the borrower otherwise qualifies. Car dealers sell their loans to lenders, and contact lenders during the course of the transaction to see who will be willing to buy these contracts. Lenders send the dealer the interest rates they will accept based on the borrower’s risk profile, also called the “buy rate.” However, the dealer can then add as much as 2-2.5 percent to the buy rate, and keep some or all of the difference as compensation. Continued on page 6

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Rights Groups To give a sense of scale, the Center for Responsible Lending (CRL) estimates that consumers who took out car loans in 2009 will pay $25.8 billion in additional interest over the lives of their loans due to these markups. In the mid-1990s, a series of lawsuits were filed against the largest auto finance companies in the country alleging discrimination. The data from those lawsuits showed that borrowers of color were twice as likely to have their loans marked up, and paid markups twice as large as similarly situated white borrowers with similar credit ratings. Because of that history, and with current data showing continued discrimination, the CFPB has issued guidance telling lenders that they could eliminate the risk of fair lending violations by paying compensation to dealers in ways that do not involve manipulations of the interest rate. If, however, lenders chose to continue allowing dealers to increase the interest rate for compensation, then the lender would need to take steps to ensure that discrimination does not occur. In short, the CFPB’s guidance acknowledges...pricing discretion leads to discrimination. Naturally, lenders and their car dealer clients

– Continued from prior page

would prefer that the CFPB did not take these steps. They also know that many members of Congress would not sign on to a bill calling on the CFPB to stop enforcing antidiscrimination laws, so they have championed a bill that masks its true intentions behind process and theories of regulatory jurisdiction. Members of Congress should not be mistaken, however: the real effect of H.R. 1737 is to undermine the ability of the CFPB to root out discrimination, something that has no place in our lending markets. Congress should be applauding the CFPB’s efforts, not trying to stop them. The CFPB has repeatedly shown it is fully capable of listening to industry concerns and calibrating its policies in response. It does so on the basis of hard evidence, however, and not on the basis of a politicized process in which the interests of vulnerable consumers are routinely overrun. If there are any problems with the details of the CFPB’s guidance on auto lending, the Bureau should be given an opportunity to refine them through the careful and fact-based process it has utilized in other areas of consumer finance. For the above reasons, we urge you to oppose H.R. 1737. The Leadership Conference on Civil and Human Rights

Floods – Continued from page 1 C

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He sent his father to a town 45 minutes north of Columbia and had him buy all the bottled water he could find. Godwin spent the rest of the day handing it out at the store. Godwin was one of the lucky ones. Not only was his store safe, but his house is located on a ridge above the flood zones. Many of his neighbors were less fortunate. He sees plenty of devastation. “It’s kind of scary and surreal,� Godwin said.

The eight-inch downpour was the worst of it, but Godwin said he didn’t see the sun from Sept. 22 until Oct. 6. With the worst of the crisis passing, Godwin now must look at the effect on his business. As a buy-here, pay-here dealer, he had 500 accounts out in the rain. He knew of two vehicles totaled in the storm right away. The driver of one of those vehicles had cancelled his insurance just days before the flooding.

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DEALERSOCKET CEO: MORE ACQUISITIONS Jonathan Ord, co-founder and CEO of DealerSocket, discussed the growth of the company and its several acquisitions during an interview at the Innovate Independent Dealer Industry Conference in Fort Worth, Texas, last month. UCN: Your company started in 2000. What was your vision then? Ord: The vision was to create a platform for helping the dealers create a better customer experience. We had a pretty complex background in customer relationship management, not from the seller’s perspective but from the buyer’s perspective. We came out of the world of implementing big CRM solutions. Seeing business from the buyer’s perspective helps us find the ideal experience that they hope to have. I’m half accountant and half techie. I have a master’s degree in accounting with an emphasis in information technology. I’m also part sales guy, so I’m screwed up. UCN: You’ve been busy on the acquisition side. Ord: We’ve completed four in the last 12 months and we’ve got a couple of more on the docket. We have DealerFire, which includes websites, a little bit of inventory management and digital marketing. Then we have all of our original CRM applications and modules, which includes everything from Internet lead management to showroom track-and-control, to service and fixed ops management. That goes down to our desking application, CSI and social media (tools). Going back to the DMS, we’ve added all the DMS functions of Finance Express and AutoStar. Now, we’re just closing on the new acquisition which is American Auto Exchange and Inventory Plus, which is inventory management, merchandising and pricing of used inventory as it goes through the cycle.

UCN: When you started, were you more targeted toward the franchise dealers? Ord: Yes, we originally started in the franchise world and drove that hard. We were opportunistic in the used-car and buy-here, pay-here space, so we did have quite a few used-car stores or buy-here, pay-here stores that were attached to franchise dealers or heard about us through a friend who was a franchise dealer. It wasn’t until about two years ago that we strategically went after the independent buy-here, pay-here space. We knew it was a little different product, so we didn’t want to do it (half-heartedly). We wanted it to (help) usedcar dealers to do what they needed to do and how they wanted it done. UCN: What was the adjustment like to move into the independent market? Ord: Some of the adjustment was around DMS, which is one of the reasons we bought Finance Express and AutoStar. Other areas were the access to lender relationships, compliance data and access to inventory in a different way than franchises use it. Then the training and the usability of the application was much more mobile-enabled because the used-car dealer normally has three to five sales reps, if that, and they’re working 24/7 on their mobile devices. So we had to have a better solution to that, which we launched about four years ago. Now anyone can run their whole business inside DealerSocket on their mobile device. UCN: What percentage of your dealers are independents? Ord: Right now, about 20 percent of our dealers – a little over 2,000 – use DealerSocket on the independent side. About 70 percent of those are buy-here, pay-here stores. UCN: Does the cost of your product limit the growth you have on the in-

dependent side? Ord: We thought that our price point was going to be a potential issue in the independent space. But what we’ve found is that the independent dealers are much more sophisticated than people give them credit for and they’re willing to pay where value is delivered. There are different levels of pricing based on the size of the dealership. We will not be the (least expensive) tool in the industry. We already have two really good players in that space, with Frazer Computing Inc. and Reaves, which do a really good job. UCN: What was the response of AutoStar dealers and Finance Express dealers when the acquisition was announced? Ord: Everything from concern to disdain to excitement. The difference was education. We explained that we’re a small, nimble entrepreneurial company. We’re just doing a lot of revenue now and we have lot of customers. But at heart, we’re an entrepreneurial company. There were two of us that started in a garage. Also, now we feel we have the best of both worlds with Finance Express and AutoStar but we’re not going to sunset (either product). What we’re really doing with our new iDMS product, is loading the best (of those systems) into one Internetbased application that allows a dealer to do everything they need to do. That will be released in Q2 2016.

INDEPENDENTS FUEL DMS EVOLUTION By Jeffrey Bellant

Dealer management systems grew from simple systems that improved efficiency to elaborate ones that encompass numerous tools and applications. Frazer Computing Inc. was founded in 1985, when President Mike Frazer wrote software for its first car dealer. “Nobody had software back then and a buy-here, pay-here dealer said to me, ‘I need something that will print receipts,’” Frazer said. From that modest start, Frazer has now grown to a DMS provider with

15,000 dealers, half of whom are buy-here, payhere dealers. DealerCenter started as an interface with Westlake Financial. It evolved into a DMS platform in 2006. Jesse Martin, DealerCenter’s senior vice president of sales and marketing, said the company has been steadily adding to the features and functionality since then, becoming a nationwide full-service DMS. Mark Stansbury, marketing manager for AutoManager, said the 30-year-old company’s first product was an internal management system that kept Continued on page 12

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USED CAR NEWS

Survey Spotlights Independents By Jeffrey Bellant

FORT WORTH, Texas – Independent dealers turn used cars 27 days faster than franchise dealers and 40 percent offer buyhere, pay-here financing. These figures come from the Independent Dealership Action Report, a survey of DealerSocket’s 2,150 independent and buy-here pay-here dealers released during the company’s Innovate Industry Conference here in September. But the report illustrates the challenges independent dealers face from franchise dealers, said DealerSocket’s Marylou Hastert, during a media roundtable luncheon. “The warning is the competition is going to increase,” Hastert said, “not just among (independents), but you’re now going to be competing more with franchise dealers.” The report states that franchise dealers have a higher gross profit margin on used cars than independents, but didn’t quantify that figure. It adds that by leveraging technology such as CRM (customer relationship management), independents can increase profits and narrow the gap. According to the report, more than 60 percent of independents are not using a CRM. Using tools to reach out to customers is important, Hastert said. DealerSocket customers saw a 20 percent increase in business in the first year of using a CRM. Franchise dealers have a huge incentive to sell used cars, as the return-on-investment for them is 617 percent higher than on new

cars. Franchise dealers also sell used cars 16.5 days faster than new cars, on average. More than half of all dealers surveyed cited inventory acquisition and capital as the top problems facing their businesses. Inventory acquisition may get easier as J.D. Power reports that 800,000 lease maturities will be coming to market in 2016. DealerSocket reported that there are more than 1,000 potential lenders available through lender portals. Only 13.5 percent of independents polled are utilizing a loan portal. Overall, Experian reports that more than 35 percent of used-car financing comes through banks, followed by 23.5 percent through credit unions, nearly 21 percent through finance companies, 12.5 percent through buy-here, pay-here lots and 7.7 percent through captives. Independents face a bigger challenge as their average customer has a 570 credit score. Dealers surveyed by DealerSocket reported that ROI/Revenue growth is their top initiative. The survey also showed that the inventory page on a dealer’s website ranks as the No. 1 most viewed page. Only 37 percent of independent dealers surveyed by DealerSocket have websites. However, DealerSocket’s customers are only a segment of independents. The National Independent Automobile Dealers Association has reported that 83 percent of its members have a website. The NIADA reports more than 20,000 members.

Q:

What are your dealership’s top two initiatives/goals for 2015?

ROI / Revenue Growth

25%

Customer Retention

18%

Increase Visibility/ Digital Presence

14%

Increase Inventory

10%

Improve Efficiencies/ Software Consolidation

10%

Acquire Capital

8%

Become More Competitive with Franchise Dealers

8%

Q:

Compliance

7%

What is the most important problem facing your dealership today?

Inventory Acquisition

31%

Capital to Finance Inventory

21%

Lack of Customer Prospect Traffic/Leads

20%

Government Regulations/ Compliance

16%

Competition from Franchise Dealers

12%

SOURCE: DEALERSOCKET INDEPENDENT SURVEY

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12 • October 19, 2015

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DMS – Continued from page 8 records of contracts, contacts and other information. The company today offers DeskManager, a software program, and WebManager, a web-platform marketing database. Dealers use a DMS for different purposes. “The biggest reason people buy a DMS, in my opinion, is forms printing,” Frazer said. “That’s huge. That’s why we have the finance companies recommending us. “It’s crucial that all that paperwork is legal and compliant.” Frazer uses the Hudson Cook law firm to ensure that its forms are compliant in the states Frazer offers them. Dealers like other features, too. “We’re actually probably one of the only credit-bureau resellers within a DMS platform for the independent dealer,” Martin said. “We have direct billing relationships with Experian, TransUnion and Equifax.” But Stansbury said it’s just about making a dealer’s job easier. “Dealers really love as much automation as possible,” Stansbury said. “It’s why dealers are using not just our DMS but our WebManager, too. “They want an all-in-one-solution.” Firms seek out dealer input to improve their products. A year ago, Martin said the company wanted to “really step it up.” “We held dealer councils,” Martin said, “inviting dealers from all across the country to visit our headquarters in Los Angeles to get their input. So it’s really a dealer-driven DMS platform. Everything that’s designed in here is derived from specific dealer feedback and input.” The firm redesigned products from the ground up, with a new infrastructure and new data center to support the web-based system, scheduled for release this month. The web-based system will allow a dealer to use it on an iPad or iPhone. Accounting integration and an interactive CRM will allow dealers to track all of the activity with

customers, send payment reminders and accept responses. Although technology has grown over the years, dealers don’t always take advantage of the tools. “I think things change a lot slower than you think,” Frazer said. “The dealers don’t want it to change and they’re not grasping the changes as fast as they might.” For example, Frazer provides everything from tax forms like the Form 8300 to the OFAC (Office of Foreign Assets Control) list. Those compliance issues are not in the forefront of the dealer’s mind, but Frazer hopes they help protect a dealer. “One of our biggest goals is that when an auditor goes into a dealership and sees the dealer is using Frazer, the auditor can relax a little bit and know that this guy is covered,” Frazer said. He said it’s amazing to him how there are still many dealers that don’t use a DMS. “Their forms can’t be right,” he said. “Their numbers can’t be right. We did a survey along a stretch of highway where there were about 30 car dealers and only two of them had a DMS.” There’s still a huge market out there, as Frazer’s recent activity has shown. “We signed up 400 dealers in September, which is a record for us,” Frazer said. “So we’ll sign up 4,300 dealers this year alone.” Dealers who don’t have a DMS learn that vendors who offer other products, such as GPS, will tell dealers that to use these products, a DMS is critical. “No finance company is going to touch a dealer if they don’t have a DMS,” Frazer said. Servicing customers with a DMS is not easy, Frazer said. He said Manheim gave up on its Tracker DMS, eventually selling it to Finance Express in 2007. “Manheim couldn’t manage it,” Frazer said. “They had 10,000 customers and 110 people on the phones and they couldn’t keep up.”

Fugitive Faces Bank Fraud Claims LOS ANGELES (AP) – A Southern California man who spent nearly three decades on the run has pleaded guilty to defrauding banks out of nearly $50 million while running the nation’s third-largest car dealership. Seventy-one-year-old Eminiano Reodica Jr. entered the plea Oct. 5 in Los Angeles to federal charges of bank fraud and lying to banks. He could face up to 79 years in prison and a $6.5 million fine. In the 1980s, Reodica ran a com-

12_UCN.indd 1

pany that owned Grand Chevrolet of Glendora. Authorities say he promised the same car contract to separate banks, repossessed and resold cars without telling the banks, and had employees seek loans for cars they weren’t buying. The dealership went bankrupt in 1988. Reodica fled to his native Philippines. He was arrested in Los Angeles in 2012.

10/12/15 4:51 PM


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6/2/15 9:42 10/12/15 4:37 AM PM


4"/+!$- 

USED CAR NEWS



+2 0/+)+/'1$ )$.'* *"' ( $-1'"$.-$.'#$*/

Cox Automotive has named Brian Geitner as president of financial services and NextGear Capital. This move creates a financial services company that services more than 22,000 deal -' * ers throughout $'/*$North America, the United Kingdom and Ireland. Geitner will report to Sandy Schwartz, president of Cox Automotive. Previously Geitner served as president of NextGear Capital, directing the company’s strategic planning, operations and growing customer base. His expanded duties were added when Patrick Brennan, formerly group vice president of financial services, was promoted to senior vice president of operations at Cox Automotive and chief integration officer for the recent Dealertrack acquisition. Geitner will collaborate with Go Financial to influence both organizations’ teams and technology to provide simpler ways for dealers to finance their subprime customers. He will also continue to lead NextGear Capital’s U.S. operations and international growth to create more efficient ways for dealers to access cash. Go Financial is a joint venture owned in part by Cox Automotive. Geitner joined Cox in 2012 as chief executive officer of Dealer Services Corp., a used-vehicle floor plan company for independent dealers, before becoming president of NextGear Capital. Prior to that, he co-founded DSC as chief operating officer and later became president of the company.

+(0)!0. '- )$. 

Greg Levi has joined Columbus Fair Auto Auction as chief operating officer. Levi will be directing CFAA’s growth in the 11-lane Wednesday sale. This growth includes managing the auction, body shop, recon department and mechanic shop. Levi left Columbus Fair in November 2013 to become executive vice president at Finance Express before that company’s acquisition by DealerSocket.

& '* ,,+'*/.*#0./-3$/.

XLerate Group announced the addition of two automotive remarketing veterans to its corporate sales team. Kelly McAllister, promoted to

14_UCN.indd 1

director of business development, joins new hire, Julie Heichel, director of sales operations. Both McAllister and Heichel will report to senior vice president of sales, Pat Dudash. McAllister $((3 transfers to the " (('./$XLerate corporate team from XLerate’s Texas Lone Star auction. McAllister has managed, directed and grown new and existing private-label auctions for the company. His experience also includes 10 years as the AutoNation accounts manager for Manheim and two years at Dealertrack. Heichel comes to XLerate from Automo0('$ tive Finance $'"&$( Corp., where she served as sales director. Prior to that, Heichel spent 10 years at ADESA, where she worked closely with auctions and institutional/commercial customers.

+-)$-

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Jay Cadigan, vice president of industry relations for Manheim, was inducted into the National Auto Auction Association Hall of Fame during its recent convention in Orlando, Fla. Membership in the Hall of Fame, established in 1968, recognizes individuals whose long-term service to the auto auction industry and NAAA has contributed improvements to remarketing as a whole, has worked with the trade organization to benefit its members and has consistently followed the high standards of the association’s Code of Ethics. Beginning his automotive career working at a car dealership during high school and college, Cadigan has spent four decades serving his industry not only as an executive in both the corporate auction and the leasing and rental car remarketing businesses, but also in volunteer leadership roles as a NAAA member. Cadigan served as NAAA president in 2010-2011. He is also a past president of the Eastern Auto Auction Association. During his term as president, Cadigan focused on establishing standards, promoting teamwork and fostering the next generation of association members through education, training, networking and mentoring.

10/12/15 9:05 AM


4"/+!$- 

USED CAR NEWS



+2 0/+)+/'1$ )$.'* *"' ( $-1'"$.-$.'#$*/

Cox Automotive has named Brian Geitner as president of financial services and NextGear Capital. This move creates a financial services company that services more than 22,000 deal -' * ers throughout $'/*$North America, the United Kingdom and Ireland. Geitner will report to Sandy Schwartz, president of Cox Automotive. Previously Geitner served as president of NextGear Capital, directing the company’s strategic planning, operations and growing customer base. His expanded duties were added when Patrick Brennan, formerly group vice president of financial services, was promoted to senior vice president of operations at Cox Automotive and chief integration officer for the recent DealerTrack acquisition. Geitner will collaborate with Go Financial to influence both organizations’ teams and technology to provide simpler ways for dealers to finance their subprime customers. He will also continue to lead NextGear Capital’s U.S. operations and international growth to create more efficient ways for dealers to access cash. Go Financial is a joint venture owned in part by Cox Automotive. Geitner joined Cox in 2012 as chief executive officer of Dealer Services Corp., a used-vehicle floor plan company for independent dealers, before becoming president of NextGear Capital. Prior to that, he co-founded DSC as chief operating officer and later became president of the company.

+(0)!0. '- )$. 

Greg Levi has joined Columbus Fair Auto Auction as chief operating officer. Levi will be directing CFAA’s growth in the 11-lane Wednesday sale. This growth includes managing the auction, body shop, recon department and mechanic shop. Levi left Columbus Fair in November 2013 to become executive vice president at Finance Express before that company’s acquisition by DealerSocket.

& '* ,,+'*/.*#0./-3$/.

XLerate Group announced the addition of two automotive remarketing veterans to its corporate sales team. Kelly McAllister, promoted to

14_UCN.indd 1

director of business development, joins new hire, Julie Heichel, director of sales operations. Both McAllister and Heichel will report to senior vice president of sales, Pat Dudash. McAllister $((3 transfers to the " (('./$XLerate corporate team from XLerate’s Texas Lone Star auction. McAllister has managed, directed and grown new and existing private-label auctions for the company. His experience also includes 10 years as the AutoNation accounts manager for Manheim and two years at DealerTrack. Heichel comes to XLerate from Automo0('$ tive Finance $'"&$( Corp., where she served as sales director. Prior to that, Heichel spent 10 years at ADESA, where she worked closely with auctions and institutional/commercial customers.

+-)$-

-$.'#$*/+'*.

..+"' /'+*. ((+% )$

Jay Cadigan, vice president of industry relations for Manheim, was inducted into the National Auto Auction Association Hall of Fame during its recent convention in Orlando, Fla. Membership in the Hall of Fame, established in 1968, recognizes individuals whose long-term service to the auto auction industry and NAAA has contributed improvements to remarketing as a whole, has worked with the trade organization to benefit its members and has consistently followed the high standards of the association’s Code of Ethics. Beginning his automotive career working at a car dealership during high school and college, Cadigan has spent four decades serving his industry not only as an executive in both the corporate auction and the leasing and rental car remarketing businesses, but also in volunteer leadership roles as a NAAA member. Cadigan served as NAAA president in 2010-2011. He is also a past president of the Eastern Auto Auction Association. During his term as president, Cadigan focused on establishing standards, promoting teamwork and fostering the next generation of association members through education, training, networking and mentoring.

10/12/15 4:44 PM


Your source for quality, value, selection: Chase. A broad selection of pre-owned vehicles from an industry leader. November 2015 Chase High Lines, featuring Jaguar Land Rover Financial Group

Chase ADESA Boston November 6, 20 508-626-7000

Columbus Fair AA November 4 614-497-2000

ADESA Charlotte November 12 704-587-7653

Manheim Atlanta November 11, 12 404-762-9211

ADESA Cincinnati/Dayton November 24 937-746-4000

Manheim Dallas November 4, 18 877-860-1651

ADESA Golden Gate November 10, 24 209-839-8000

Manheim Denver November 18 800-822-1177

ADESA Houston November 11, 25 281-580-1800

Manheim Detroit November 12 734-654-7100

ADESA Indianapolis November 10, 24 800-925-1210

Manheim Fredericksburg November 5, 19 540-368-3400

ADESA Kansas City November 10, 24 816-525-1100

Manheim Milwaukee November 4, 18 262-835-4436

ADESA Lexington November 12 859-263-5163

Manheim Minneapolis November 11 763-425-7653

ADESA New Jersey November 12 908-725-2200

Manheim Nashville November 3, 4, 18 877-386-5004

ADESA Tulsa November 13 918-437-9044

Manheim Nevada November 24 702-361-1000

ADESA Washington DC November 18 703-996-1100

Manheim New Jersey November 4, 18 609-298-3400

America’s AA-Chicago November 25 708-389-4488

Manheim New Orleans November 4 985-643-2061

Manheim Orlando November 3, 10, 17, 24 800-337-8491 Manheim Pennsylvania November 12, 13, 24 800-777-2053 Manheim Phoenix November 5, 12, 19, 24 623-907-7000 Manheim Pittsburgh November 18 724-452-5555 Manheim Riverside November 17, 19 909-689-6000 Manheim Seattle November 11 206-762-1600

ADESA Boston November 20 508-626-7000

Manheim Milwaukee November 18 262-835-4436

Manheim Riverside November 19 909-689-6000

ADESA Golden Gate Manheim Nashville November 18 November 10 877-386-5004 209-839-8000 Manheim Atlanta November 11 404-762-9211

Manheim Orlando November 17 800-337-8491

Manheim Dallas November 4 877-860-1651

Manheim Pennsylvania November 12 800-777-2053

Mazda Capital Services ADESA Boston November 6, 20 508-626-7000

Manheim Detroit November 12 734-654-7100

Manheim Southern California November 12, 25 909-822-2261

ADESA Golden Gate November 24 209-839-8000

Manheim Fredericksburg Manheim Pennsylvania November 5 November 13 540-368-3400 800-777-2053

Southern AA November 18 860-292-7500

ADESA Houston November 11 281-580-1800

Manheim Milwaukee November 4 262-835-4436

Manheim Pittsburgh November 18 724-452-5555

Columbus Fair AA November 4 614-497-2000

Manheim Nashville November 4 877-386-5004

Manheim Riverside November 17 909-689-6000

Manheim Atlanta November 12 404-762-9211

Manheim New Jersey November 4, 18 609-298-3400

Manheim Seattle November 11 206-762-1600

Brasher’s Salt Lake AA November 3 801-322-1234

Choose Chase on ADESA.com and OVE.com for quality bank-sourced vehicles. Contact auctions directly for current sale information.

Manheim Orlando November 24 800-337-8491

Subaru Motors Finance ADESA Boston November 6 508-626-7000

Manheim Detroit November 12 734-654-7100

Brasher’s Salt Lake November 3 801-322-1234

Manheim Fredericksburg Manheim Pittsburgh November 19 November 18 540-368-3400 724-452-5555

Columbus Fair AA November 4 614-497-2000

Manheim Milwaukee November 18 262-835-4436

Manheim Seattle November 11 206-762-1600

Manheim Dallas November 4 877-860-1651

Manheim New Jersey November 4 609-298-3400

Manheim Southern CA November 12 909-822-2261

Manheim Denver November 18 800-822-1177

Manheim Orlando November 17 800-337-8491

Southern AA November 18 860-292-7500

Manheim Pennsylvania November 13 800-777-2053

*The tradename “Subaru Motors Finance” and the Subaru logo are owned / licensed by Subaru of America, Inc. and are licensed to JPMorgan JPM organ Chase Bank, N.A. (“Chase”). Retail / Loan and lease accounts are owned by Chase. *The Jaguar word mark, the Jaguar logo, and Jaguar Financial Group are trademarks of Jaguar Land Rover Limited and any use by Chase is under license. The Land Rover word mark, the Land Rover and Oval logo, and Land Rover Financial Group are trademarks of Jaguar Land Rover Limited and any use by Chase is under license. Retail / Loan and lease accounts are owned by Chase. *The tradename "Mazda Capital Services" as well as the Mazda and Mazda Capital Services logos are owned by Mazda Motor Corporation or its affiliates and are licensed to Chase. Retail / Loan and lease accounts are owned by Chase. JPMorgan Chase Bank, N.A. Member FDIC ©2015 JPMorgan Chase & Co. (14-723) 10/14

15_UCN.indd 1

10/9/15 2:24 PM


&$!#

USED CAR NEWS

RETAIL MARKETS ing out there. “We do subprime, a little buy-here, pay-here and quite a few cash deals. It’s not easy to compete (with franchises) on subprime business. My son, Nick, works on the financing just about every day. “Our average model year is a 2007 or 2008. We used to keep it five years and older. (Lenders) have requirements you have to go by, so you buy the car according to the requirements they set. “Average mileage is up. It’s probably running close to 100,000. “It’s probably (split) between domestics and imports. “Right now, on my lot, it’s probably 40 percent trucks. About 80 percent is twowheel drive and the rest are four-wheel-drive. “Reconditioning costs are probably as high – if not higher – than they’ve ever been. You’re probably looking at $300 a car by the time you have it serviced. “Anytime you have longev-

 

Larry Lewallen, president, Rainwater Motor Co., Douglasville, Ga.: “I’m chairman of the board of Georgia IADA and I just received the state Quality Dealer of the Year. “We’ve been in business since 1980. We have one location. “We keep around 100 to 110 on the lot. We’re carrying a few more cars than we were this time last year. The biggest factor is that we’re just doing more business. “We buy a lot of our cars through auctions. Probably 75 percent of them are coming from auctions. We buy dealership trade-ins, which are getting harder and harder to find. We’re also buying them from individuals, or wherever we can find them. “We’re selling, on average, over 50 a month – probably closer to 60. We’re probably up 20 percent over last year. “It’s been a good year. It’s the economy and the availability of money. There’s a lot of good financ-

ity, you want to sell a good car. So, we have a check system that we go through. Once it’s gone through that check system – and everything’s been serviced and changed – if you can come out of it for $300, you’ve done well. Most people probably average $500. “We have our own service center and our own detail center. We have eight stalls. “We advertise through television, newspaper and we do all the computer stuff online. We do a little bit of everything. But we’ve been real successful with television commercials. The best kind of advertising is word of mouth. “Mid-sized SUVs and trucks are doing well. With the gas prices coming down, the full-size SUVs have really taken off. “We recently sold a 2008 Dodge four-door pickup – Hemi 5.7 SLT – with 122,000 miles. We sold it for $10,500. “We feel good about the rest of the year.�

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Travis Baldwin, area sales manager, Best Deal Auto Sales, Ft. Wayne, Ind.: “We have five locations. My dad started the business 16 years ago. “We keep a little over 400 cars (across) all of our stores. We get our cars from auctions, independents – we get them from everywhere. We do a lot of shopping. “We’re selling over 150 every month. “Most of our cars are (traditional) finance. We do some subprime, as well. It’s probably 20 percent of our business. “We do very little buyhere, pay-here. “The average model year is 2010. The average mileage is probably 70,000. Since Cash for Clunkers, the price for (lower-mileage) cars was definitely driven up. “We probably carry 40 percent trucks and SUVs. We’d like to have more trucks, obviously. Trucks are very high.

“We probably consistently keep 30 percent import compared to 70 percent domestic. “I would say $400 per vehicle is probably a good average for our recon costs. We do that all in-house. “Actually, we’ve got a body shop we’re opening up next month. That’s just for cosmetic damages: bumper scraps, things like that. “We have some state-ofthe-art detail facilities. We also have three fully staffed service garages, in addition to our lots. “For marketing/advertising, we obviously use all the big names on the Internet. We use cars.com, AutoTrader and we just picked up Cargurus. We also use Carsforsale.com and do a lot of television advertising. “We also sponsor a local professional hockey league team, the Ft. Wayne Komets. “We recently sold a 2011 Acura MDX. It had 65,00 miles. We sold it for $25,500.�

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16_UCN.indd 1

10/12/15 4:48 PM


USED CAR NEWS

WHOLESALE MARKETS GEORGIA

Donnie Bazemore, general manager, Southeastern Auto Auction of Savannah, Ga.: “We’ve been in business 19 years. We have four lanes. “We’ve been running about 650 cars per week. That’s up probably 15 percent from this time last year. We’re just doing more advertising and we added a couple of sales people. “We’re selling in the low 60s (percent), but it seems like the more you run, the percentages come down. “This third quarter, as a matter of fact, we were up 25 percent. For the year, we’re up 15 percent (at press time). “About 90 percent of our volume is dealer consignment. “We also run repos, some county cars, stuff like that. “Right now, we’re averaging about 350 dealers in the lanes. That’s similar to last year. They’ll come from the East Coast mostly. “We also have a lot more

Internet business than we used to have. That’s both bidding and buying. We use Auction Pipeline, OVE, OpenLane, etc. “One of our big things is a post-sale inspection that does really well. We do a tremendous amount of post-sale business. We push it pretty hard, but we also have a lot of people who recommend it. I think it keeps people coming back. “We weren’t affected by (Hurricane Joaquin). Charleston, S.C., is not that far from us and I think guys in that area and Columbia, S.C., had a tough time. “We have an in-op sale every Wednesday morning. We’re running around 60. It was low, about a 25 percent sale. It used to sell 65 to 70 percent. But the price of steel is low. “We have a public sale every Thursday. The turnout has been high. We run about 150 cars. “The average price in the regular sale is $7,500. It’s up about $1,000.

“We do really well with trucks and SUVs. With trucks, we’ll sell both fourwheelers and two-wheelers. We also sell a lot of imports because we have several new-car dealers. We’ve got three BMW dealers who send all of their trades out here. “I feel really good about the rest of the year. It’s very positive.�

MONTANA

Terry Scheetz, general sales manager, Auto Auction of Montana, Billings, Mont.: “We’re going on 12 years. “We’re running four lanes. We had been running three, but we opened it up about a month or so ago and stated running all four lanes. “We’re consistently running 600-plus units. We’re getting a lot of Canadian (vehicles) down here so we’re running more of those. The exchange rate is such a big difference right now. (At press time, it was $1 U.S. to $1.30 Canadian.)

I’d rather be on this side than the other right now. Those cars have to be converted and have an American title. “We run our anniversary weekend (in October) and we’ll run 1,000-plus in a two-day event. “(Conversion rates) are about 50 percent, give or take a little bit. It’s anywhere from 47 to 53, but it’s consistently in that range. “We still draw 200 to 250 dealer in the lanes. “The Internet is getting better all the time. We’re doing about 15 to 18 percent. We’re going to pursue that actively; it’s doing so good. We’ve been with Online Ringman and we also joined up with Pipeline and OVE. “Those cars sell all over. All the lanes are on the Internet. We’re also changing how they do the condition reports (to help). “It has slowed down in the oil fields, as you know. But, we still get all of those vehicles. So we’re still doing a big volume out of the Dako-

&#%(

Compiled by Jeffrey Bellant tas. They are still a big part. But it’s not crazy like it was. “About 30 percent of our volume is fleet-lease, companies like Enterprise and Midwest Car Corp. and others. “We’ve got 60 acres here and we’ve got full mechanical, full body shop and detail. It never slows down. We’ve got to work through the weekend most of the time. We’ve also got a stateof-the-art body shop. “We also run a GSA sale. Our next one is Oct. 21 and we’ll run 100-plus. They run all year round. But the volume (varies). Another time it might be 30 or 40. Usually, though, we’ve been running 80 to 100 once a month. “We’re known for having a lot of trucks. They sell all year round for us. “The average sale price for the year (at press time) is $12,700. That’s up from last year. “We’ll finish off strong this year.�

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10/12/15 9:02 AM


USED CAR NEWS

WHOLESALE MARKETS GEORGIA

Donnie Bazemore, general manager, Southeastern Auto Auction of Savannah, Ga.: “We’ve been in business 19 years. We have four lanes. “We’ve been running about 650 cars per week. That’s up probably 15 percent from this time last year. We’re just doing more advertising and we added a couple of sales people. “We’re selling in the low 60s (percent), but it seems like the more you run, the percentages come down. “This third quarter, as a matter of fact, we were up 25 percent. For the year, we’re up 15 percent (at press time). “About 90 percent of our volume is dealer consignment. “We also run repos, some county cars, stuff like that. “Right now, we’re averaging about 350 dealers in the lanes. That’s similar to last year. They’ll come from the East Coast mostly. “We also have a lot more

Internet business than we used to have. That’s both bidding and buying. We use Auction Pipeline, OVE, OpenLane, etc. “One of our big things is a post-sale inspection that does really well. We do a tremendous amount of post-sale business. We push it pretty hard, but we also have a lot of people who recommend it. I think it keeps people coming back. “We weren’t affected by (Hurricane Joaquin). Charleston, S.C., is not that far from us and I think guys in that area and Columbia, S.C., had a tough time. “We have an in-op sale every Wednesday morning. We’re running around 60. It was low, about a 25 percent sale. It used to sell 65 to 70 percent. But the price of steel is low. “We have a public sale every Thursday. The turnout has been high. We run about 150 cars. “The average price in the regular sale is $7,500. It’s up about $1,000.

“We do really well with trucks and SUVs. With trucks, we’ll sell both fourwheelers and two-wheelers. We also sell a lot of imports because we have several new-car dealers. We’ve got three BMW dealers who send all of their trades out here. “I feel really good about the rest of the year. It’s very positive.�

MONTANA

Terry Scheetz, general sales manager, Auto Auction of Montana, Billings, Mont.: “We’re going on 12 years. “We’re running four lanes. We had been running three, but we opened it up about a month or so ago and started running all four lanes. “We’re consistently running 600-plus units. We’re getting a lot of Canadian (vehicles) down here so we’re running more of those. The exchange rate is such a big difference right now. (At press time, it was $1 U.S. to $1.30 Canadian.)

I’d rather be on this side than the other right now. Those cars have to be converted and have an American title. “We run our anniversary weekend (in October) and we’ll run 1,000-plus in a two-day event. “(Conversion rates) are about 50 percent, give or take a little bit. It’s anywhere from 47 to 53, but it’s consistently in that range. “We still draw 200 to 250 dealer in the lanes. “The Internet is getting better all the time. We’re doing about 15 to 18 percent. We’re going to pursue that actively; it’s doing so good. We’ve been with Online Ringman and we also joined up with Pipeline and OVE. “Those cars sell all over. All the lanes are on the Internet. We’re also changing how they do the condition reports (to help). “It has slowed down in the oil fields, as you know. But, we still get all of those vehicles. So we’re still doing a big volume out of the Dako-

&#%(

Compiled by Jeffrey Bellant tas. They are still a big part. But it’s not crazy like it was. “About 30 percent of our volume is fleet-lease, companies like Enterprise and Midwest Car Corp. and others. “We’ve got 60 acres here and we’ve got full mechanical, full body shop and detail. It never slows down. We’ve got to work through the weekend most of the time. We’ve also got a stateof-the-art body shop. “We also run a GSA sale. Our next one is Oct. 21 and we’ll run 100-plus. They run all year round. But the volume (varies). Another time it might be 30 or 40. Usually, though, we’ve been running 80 to 100 once a month. “We’re known for having a lot of trucks. They sell all year round for us. “The average sale price for the year (at press time) is $12,700. That’s up from last year. “We’ll finish off strong this year.�

Helping dealers since 1991

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MONTHLY DEALER CONSIGNMENT AVERAGES

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MOBILE DEVICE USEDCARNEWS.COM/READ

AVG. PRICE AVG. MILEAGE

Jan 2015 Feb 2015 Mar 2015 Apr 2015 May 2015 Jun 2015 Jul 2015 Aug 2015 Sep 2015 YTD AVG:

$5,631 $5,759 $5,838 $5,847 $5,680 $5,417 $5,370 $5,145 $4,929 $5,517

100,110 100,463 100,814 100,439 101,408 102,020 101,088 102,749 104,263 101,475

Jan 2015 Feb 2015 Mar 2015 Apr 2015 May 2015 Jun 2015 Jul 2015 Aug 2015 Sep 2015 YTD AVG:

$13,878 $14,163 $14,722 $15,336 $15,457 $15,219 $15,569 $15,639 $15,778 $15,099

111,267 110,360 108,827 106,979 106,472 107,962 106,136 106,530 104,064 107,564

Jan 2015 Feb 2015 Mar 2015 Apr 2015 May 2015 Jun 2015 Jul 2015 Aug 2015 Sep 2015 YTD AVG:

$4,266 $4,007 $4,240 $3,984 $4,101 $3,879 $3,749 $3,859 $3,809 $3,992

108,579 113,914 114,926 115,364 112,518 113,940 115,275 114,560 113,866 113,729

Jan 2015 Feb 2015 Mar 2015 Apr 2015 May 2015 Jun 2015 Jul 2015 Aug 2015 Sep 2015 YTD AVG:

$15,397 $15,515 $16,798 $17,604 $16,827 $16,548 $16,418 $15,516 $14,745 $16,218

79,602 79,439 74,113 73,174 74,225 74,959 75,069 75,340 77,307 75,731

$12,359 95,856 Jan 2015 $11,597 99,198 Feb 2015 $12,384 98,340 Mar 2015 $13,143 96,601 Apr 2015 $12,656 96,794 May 2015 $12,181 98,550 Jun 2015 $12,134 98,035 Jul 2015 $11,540 99,077 Aug 2015 $11,175 100,395 Sep 2015 $12,159 98,042 YTD AVG:

$11,557 $11,244 $11,773 $12,013 $11,969 $11,504 $11,596 $11,349 $11,141 $11,572

105,666 108,480 107,167 106,891 106,082 107,536 105,898 107,263 107,783 106,973

$6,420 $6,416 $6,731 $6,815 $6,625 $6,381 $6,393 $6,390 $6,100 $6,483

118,412 120,345 117,782 118,258 120,019 120,903 120,015 120,320 122,367 119,763

LUXURY CAR Jan 2015 Feb 2015 Mar 2015 Apr 2015 May 2015 Jun 2015 Jul 2015 Aug 2015 Sep 2015 YTD AVG:

SPORTS CAR

SUV

MIDSIZE CAR

VAN

Jan 2015 Feb 2015 Mar 2015 Apr 2015 May 2015 Jun 2015 Jul 2015 Aug 2015 Sep 2015 YTD AVG:

Jan 2015 Feb 2015 Mar 2015 Apr 2015 May 2015 Jun 2015 Jul 2015 Aug 2015 Sep 2015 YTD AVG:

$6,156 $6,211 $6,387 $6,475 $6,298 $6,114 $6,085 $5,909 $5,668 $6,153

108,790 109,109 109,546 108,702 108,902 109,733 108,396 109,747 111,452 109,367

CURRENT YTD, THROUGH OCTOBER 2015

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AVG. PRICE AVG. MILEAGE

SOURCE: MANHEIM CONSULTING

10/8/15 12:12 PM


ACTUAL WHOLESALE AND PROJECTED RESIDUAL VALUES OCTOBER 2015

SOURCE: BLACK BOOK

2013 MODELS DOMESTIC CARS Buick LaCrosse 4D Sedan Cadillac CTS 3.6 4D Sedan Chevrolet Cruze LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 base 4D Sedan Chrysler 200 Touring 4D Sedan Ford Focus SE 4D Sedan Ford Mustang base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln MKS 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 2.4 Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Lancer ES 4D Sedan Nissan Altima base 4D Sedan Nissan Altima S 4D Sedan 3.5 Nissan Sentra S 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan TRUCKS BMW X3 XDrive28i 4D SAC Cadillac Escalade base 4D Utility AWD Cadillac SRX Luxury 4D Utility AWD Chevrolet Equinox LS 4D Utility FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D Utility 4WD Dodge Grand Caravan SE Wagon Ford Edge SEL 4D Utility Ford Escape SEL 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Flex SEL 4D Utility Honda CR-V LX 4D Utility AWD Honda Odyssey LX Wagon Honda Pilot EX-L 4D Utility 4WD w/RES Jeep Grand Cherokee Laredo 4D Utility 4WD

Oct ‘14 $18,950 $24,400 $10,300 $11,550 $18,000 $11,800 $11,600 $15,200 $16,300 $23,650 Oct ‘14 $22,500 $25,650 $63,300 $16,100 $12,850 $30,800 $32,100 $10,900 $12,300 $15,600 $11,800 $14,300 $12,150 $15,200 Oct ‘14 $30,000 $44,500 $29,800 $15,750 $20,600 $28,200 $14,000 $21,800 $18,200 $27,000 $21,300 $21,700 $18,900 $20,850 $29,300 $23,900

Apr ‘15 $17,050 $22,000 $10,350 $10,900 $18,100 $11,400 $10,950 $16,100 $15,450 $21,600 Apr ‘15 $20,600 $25,100 $53,300 $15,200 $12,750 $27,200 $31,500 $9,850 $12,100 $15,400 $11,400 $14,100 $12,350 $15,200 Apr ‘15 $28,950 $40,250 $25,950 $14,850 $22,600 $27,200 $13,000 $20,100 $18,600 $27,500 $21,000 $22,500 $17,950 $19,150 $27,500 $22,800

2012 MODELS Oct ‘15 $16,550 $20,700 $10,100 $9,400 $17,050 $10,300 $9,800 $13,500 $14,000 $19,900 Oct ‘15 $19,050 $22,000 $47,800 $14,150 $10,950 $25,600 $28,000 $8,700 $10,700 $13,800 $9,950 $12,350 $10,950 $14,050 Oct ‘15 $27,700 $40,450 $25,750 $12,750 $23,500 $29,000 $12,900 $18,300 $17,350 $25,950 $21,700 $22,300 $17,550 $17,850 $28,450 $22,350

Projected Figures Oct ‘16 Oct ‘17 $14,325 $12,200 $18,050 $15,300 $8,375 $7,025 $8,350 $7,100 $14,225 $11,700 $8,925 $7,475 $8,700 $7,275 $12,550 $10,875 $12,475 $10,450 $18,025 $15,600 Oct ‘16 Oct ‘17 $16,250 $13,750 $18,950 $15,525 $41,225 $34,250 $12,475 $10,375 $9,550 $7,950 $21,475 $17,725 $24,000 $20,375 $7,675 $6,425 $9,575 $8,175 $12,000 $10,150 $8,300 $6,850 $11,025 $9,525 $9,225 $7,825 $12,400 $10,550 Oct ‘16 Oct ‘17 $22,575 $18,575 $33,725 $28,125 $21,550 $18,225 $10,875 $8,850 $19,050 $15,525 $24,025 $19,425 $10,200 $8,175 $15,500 $12,850 $14,325 $11,500 $21,650 $17,650 $17,950 $14,425 $17,175 $14,100 $14,675 $12,225 $15,350 $12,875 $23,675 $19,825 $18,175 $14,850

2011 MODELS DOMESTIC CARS Buick LaCrosse CX 4D Sedan Cadillac DTS 4D Sedan Chevrolet Cruze LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 base 4D Sedan Chrysler 200 Touring 4D Sedan Ford Focus SE 4D Sedan Ford Mustang base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 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 2.4 Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Lancer 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 BMW X3 XDrive28i 4D SAC Cadillac Escalade base 4D Utility AWD Cadillac SRX Luxury 4D Utility AWD 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 Grand Caravan Express Wagon Ford Edge SEL 4D Utility Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Flex SEL 4D Utility Honda CR-V LX 4D Utility 4WD Honda Odyssey LX Wagon Honda Pilot EX-L 4D Utility 4WD w/RES

19_UCN.indd 1

Oct ‘14 $12,200 $16,900 $8,800 $8,550 $14,100 $9,900 $8,250 $12,100 $13,600 $19,650 Oct ‘14 $18,350 $17,750 $37,800 $11,450 $10,450 $20,350 $23,800 $8,800 $9,550 $10,850 $9,100 $11,250 $9,800 $11,600 Oct ‘14 $24,950 $34,700 $22,650 $18,550 $11,050 $17,900 $24,400 $11,100 $16,600 $12,150 $22,400 $18,000 $17,400 $14,500 $15,850 $23,450

Apr ‘15 $11,150 $16,100 $8,050 $8,100 $13,950 $8,800 $7,250 $12,700 $12,300 $18,850 Apr ‘15 $16,400 $17,400 $32,900 $10,700 $9,650 $18,200 $23,300 $7,750 $8,300 $9,600 $7,600 $10,400 $9,450 $10,850 Apr ‘15 $22,950 $31,700 $19,900 $17,100 $10,050 $18,800 $23,200 $10,000 $15,900 $11,550 $22,200 $17,800 $16,500 $13,550 $13,650 $21,450

DOMESTIC CARS Buick LaCrosse 4D Sedan Cadillac CTS 3.6 4D Sedan Chevrolet Cruze LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 base 4D Sedan Chrysler 200 Touring 4D Sedan Ford Focus SE 4D Sedan Ford Mustang base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln MKS 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 2.4 Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Lancer 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 BMW X3 XDrive28i 4D SAC Cadillac Escalade base 4D Utility AWD Cadillac SRX Luxury 4D Utility AWD 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 Grand Caravan SE Wagon Ford Edge SEL 4D Utility Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Flex SEL 4D Utility Honda CR-V LX 4D Utility AWD Honda Odyssey LX Wagon Honda Pilot EX-L 4D Utility 4WD w/RES

Oct ‘14 $16,900 $20,900 $9,500 $9,750 $15,800 $10,800 $10,150 $13,500 $15,500 $19,700 Oct ‘14 $20,300 $23,700 $46,900 $13,000 $11,650 $23,900 $27,400 $10,000 $10,850 $12,150 $10,100 $12,900 $11,250 $13,250 Oct ‘14 $27,100 $39,500 $25,550 $20,550 $12,900 $19,300 $27,200 $12,500 $19,800 $14,000 $24,800 $20,000 $20,300 $17,250 $18,750 $27,000

Apr ‘15 $15,300 $18,550 $9,050 $9,200 $15,550 $9,900 $9,350 $14,100 $13,900 $18,800 Apr ‘15 $18,400 $22,100 $41,100 $12,050 $11,150 $21,600 $27,100 $8,800 $9,500 $10,800 $9,150 $12,800 $10,350 $12,400 Apr ‘15 $25,850 $35,000 $23,050 $19,300 $11,450 $20,800 $25,200 $11,000 $18,500 $14,200 $24,500 $19,500 $19,500 $16,150 $16,300 $25,400

Oct ‘15 $14,300 $18,400 $9,150 $8,350 $14,400 $8,900 $8,300 $12,300 $12,300 $17,300 Oct ‘15 $16,900 $19,400 $36,500 $11,100 $9,400 $20,100 $24,000 $7,650 $9,400 $10,700 $8,250 $11,400 $9,550 $11,650 Oct ‘15 $25,000 $33,550 $22,800 $18,750 $10,700 $21,000 $26,000 $10,450 $17,300 $13,900 $23,800 $20,500 $19,000 $15,500 $15,200 $25,100

Projected Figures Oct ‘16 Oct ‘17 $12,450 $10,425 $15,200 $12,850 $7,350 $6,050 $7,375 $6,250 $11,975 $9,750 $7,650 $6,275 $7,550 $6,275 $11,250 $9,600 $10,700 $8,800 $15,175 $12,625 Oct ‘16 Oct ‘17 $14,375 $12,050 $16,025 $13,200 $31,975 $26,600 $9,825 $8,450 $8,125 $6,675 $17,200 $14,400 $19,975 $16,450 $6,700 $5,575 $8,025 $6,750 $9,025 $7,525 $6,950 $5,800 $10,025 $8,600 $8,025 $6,675 $9,950 $8,425 Oct ‘16 Oct ‘17 $20,150 $16,425 $28,250 $23,475 $18,875 $15,450 $15,975 $13,275 $8,750 $7,125 $17,325 $13,900 $21,300 $17,350 $8,175 $6,525 $14,075 $11,425 $11,250 $9,050 $19,400 $15,625 $16,475 $13,200 $15,125 $12,275 $12,875 $10,850 $13,075 $11,000 $20,450 $16,875

Oct ‘15 $9,350 $10,750 $4,350 $6,200 $8,000 $5,700 $5,350 $10,100 $9,300 $12,500 Oct ‘15 $13,300 $12,000 $25,500 $8,450 $5,600 $14,300 $18,500 $5,250 $6,500 $7,800 $5,500 $8,200 $6,950 $8,000 Oct ‘15 $18,250 $27,650 $16,300 $14,800 $7,675 $16,000 $19,500 $7,450 $10,950 $9,100 $10,800 $15,000 $12,500 $12,000 $9,300 $16,900

Projected Figures Oct ‘16 Oct ‘17 $7,775 $6,525 $9,025 $7,300 $3,850 $3,275 $5,575 $4,650 $7,400 $6,125 $4,725 $3,825 $5,000 $4,175 $8,850 $7,400 $8,100 $6,525 $10,500 $8,525 Oct ‘16 Oct ‘17 $10,925 $8,875 $10,575 $8,800 $22,300 $18,300 $7,500 $6,350 $4,875 $4,150 $12,250 $10,275 $14,950 $11,950 $4,925 $4,000 $5,850 $5,025 $6,850 $5,800 $4,800 $4,000 $7,025 $5,925 $5,925 $4,900 $6,900 $5,725 Oct ‘16 Oct ‘17 $15,000 $12,125 $22,150 $17,850 $13,350 $10,825 $12,275 $9,875 $6,275 $5,050 $13,550 $11,100 $15,975 $13,100 $5,925 $4,650 $9,350 $7,875 $7,475 $6,025 $9,275 $7,500 $12,175 $9,850 $10,425 $8,425 $9,725 $8,075 $8,050 $6,825 $13,950 $11,475

2010 MODELS Oct ‘15 $10,400 $13,450 $7,500 $7,250 $12,750 $7,550 $6,100 $11,300 $10,700 $16,450 Oct ‘15 $15,000 $15,000 $29,300 $9,800 $8,000 $16,900 $20,800 $6,450 $7,950 $9,250 $6,400 $9,300 $8,250 $9,950 Oct ‘15 $22,150 $29,050 $19,150 $16,500 $9,000 $19,000 $22,500 $9,100 $14,500 $10,600 $20,800 $16,500 $15,000 $13,550 $12,600 $20,600

Projected Figures Oct ‘16 Oct ‘17 $8,875 $7,450 $11,275 $9,075 $6,300 $5,200 $6,350 $5,300 $10,500 $8,500 $6,625 $5,400 $5,725 $4,825 $10,200 $8,700 $9,200 $7,475 $13,600 $11,025 Oct ‘16 Oct ‘17 $12,550 $10,350 $12,725 $10,400 $25,925 $21,500 $8,725 $7,600 $6,975 $5,675 $14,600 $12,300 $17,050 $13,825 $5,725 $4,700 $6,925 $5,950 $7,950 $6,725 $5,825 $4,850 $8,150 $6,975 $7,050 $5,850 $8,525 $6,925 Oct ‘16 Oct ‘17 $17,725 $14,375 $24,075 $19,725 $15,725 $12,825 $13,750 $11,350 $7,350 $6,025 $15,700 $12,550 $18,675 $15,250 $7,250 $5,775 $12,225 $10,050 $8,800 $7,250 $16,950 $13,600 $14,375 $11,500 $13,175 $10,550 $11,050 $9,200 $10,700 $8,975 $16,675 $13,725

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 Focus SE 4D Sedan Ford Mustang base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 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 Lancer 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 BMW X3 XDrive30i 4D SAV Cadillac Escalade base 4D Utility AWD Cadillac SRX Luxury 4D Utility AWD 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 Grand Caravan SE Wagon Ford Edge SEL 4D Utility Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Flex SEL 4D Utility Honda CR-V LX 4D Utility 4WD Honda Odyssey LX Wagon Honda Pilot EX-L 4D Utility 4WD w/RES

Oct ‘14 $11,250 $13,400 $5,800 $7,750 $11,150 $7,100 $7,500 $10,800 $12,350 $15,400 Oct ‘14 $16,400 $14,300 $31,250 $10,000 $7,500 $17,400 $21,200 $7,600 $8,400 $9,700 $7,500 $9,950 $8,500 $9,600 Oct ‘14 $21,400 $32,450 $19,350 $16,650 $9,425 $16,600 $21,300 $9,700 $13,000 $10,200 $14,000 $16,000 $13,600 $12,650 $11,800 $19,300

Apr ‘15 $9,850 $12,850 $4,700 $7,200 $9,750 $6,400 $6,500 $11,100 $11,000 $14,550 Apr ‘15 $14,450 $12,900 $27,750 $9,500 $6,700 $15,600 $20,500 $6,750 $7,200 $8,500 $6,250 $9,250 $7,850 $8,900 Apr ‘15 $18,700 $29,250 $16,700 $15,350 $8,175 $17,000 $20,000 $8,000 $12,200 $9,750 $13,000 $14,200 $13,000 $12,000 $9,950 $18,000

10/8/15 12:08 PM


 

DISCONNECTED JOTTINGS FROM “It was the doing of a couple of wayward software e n g i neers.” So say the top executives at VW, referring to the scandalous, miscreant deeds of the company’s cheating over diesel emissions tests. I’m sure the engineers’ Germanic retort would go something like, “I was only following orders!” They even tried to sway a congressional investigation committee with that one. Seriously? The implication that a multi-billion dollar, international organization would allow a couple of goofy boffins to design, engineer, develop, test, confirm, manufacture (by an outside contractor or not) and install in production, a piece of equipment to steal a march on the competition and authorities, is insulting

TONY MOORBY

in the extreme. At a time when VW had just snared the leadership position in worldwide sales from Toyota, this gaffe will surely put them back decades. Think of the immediate consequences, apart from the prying of every process they now use, the fines from government authorities in every country in which they do business will be financially debilitating, if not catastrophic, leeching development funding for future products. New vehicle sales, not just of diesel products, are already at a standstill. Residual values of their used cars will plummet and suffer the consequences of the market at resale time, whether that’s a trade-in or lease end-of-term. Subsidies and handouts will have to support an otherwise ugly spiral of diminished values and flagging sales. This, of course, does nothing to enhance the

C R O S S WO R D

long-term perceived value of a product; quite the contrary. The major manufacturers here have struggled with that before – it takes years to rebuild the name and value that follows a car or truck throughout its lifespan, not when it just rolls over the curb for the first time. Dealers will have to bear the floor plan charges of unmovable inventories – the very plague of many a dealer’s demise, when new vehicles aren’t moving. VW has been busy on the fleet scene too, with sales to rental and leasing companies, giving them another potential glut and price decline of its residuals. What about employment? I was present at the grand opening of VW’s new plant in Chattanooga. The much-vaunted production and sales plans playing a major part of the employment message. The sales folks touted a million VW unit sales in the U.S., which seemed doable at

1. Air ___ (safety features) 3. Toyota subcompact 7. ____ Charger sedan 10. Industry slang 12. Subaru sedan 14. Hyundai sedan 15. Nissan Xterra ___ 16. Type of entry 19. Type of car like a Camaro or Mustang 21. Mountain, for short 22. Guzzled by SUV’s 23. Chevy sedan 25. Part of A.P.R. 27. Scion ___

31. ____-size SUV 32. You might do this as part of buying another car, 2 words 33. Inner tube filler 34. Saturn 4 doors 36. Shock ____ (part of suspension systems) 37. Places where cars are displayed 41. Not easily available 43. Philadelphia’s state 44. Overnight stay place 46. Road-crew supply 47. E-____ Jaguar 48. Company that made the Bulldog

Down 1. Brand that produced the GNX 2. It’s an ATV built by Maruti/Suzuki in India, it also means wanderer

the time when people were looking beyond recessions and getting back to market growth. The economic wake of VW’s presence was more than a rising tide to an already growing community. Suppliers, both local and international, swarmed into the market. I remember more than once saying “Guten morgen” in a hotel lobby or “Wie geht es?” in the supermarket. German was becoming a second language in the town and companies were either paying their staff to learn or had lessons on site. I can hear “Ach, scheisse!” now instead! Apparently, some executives and managers were made aware of this software problem as far back as 2012. They must be walking around with buttocks so tight you’d need a sev-

en-pound club hammer to drive a nail in there! Now we see the price of keeping the whistleblowers’ lips just as tightly closed. Actually we can’t. It’s incalculable. And it’s unfathomable to think that the public should be so blatantly hoodwinked in such a callous manner. One of my first cars was a 1958 Beetle and in spite of its age and mileage, I flogged it around the countryside for a couple of years with nary a concern for its roadworthy reliability and sold it for more than I paid for it. They were happy days of simple technology and fond memories for the product and name. Ironically, the day the scandalous news broke I saw an advert for Audi with the tag line “Truth in Engineering.” Really?

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

Sponsored by INSURANCE AUTO AUCTIONS

By Miles Mellor

Across

USED CAR NEWS

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4. Mercedes Benz C-_____ Sedan 5. Maui state (abbr.) 6. Happening, of an event 7. There may be 2 or 4 in the usual car 8. Lamborghini model 9. They set emissions targets 11. Lexus __ 350 13. Honda SUV 17. ____bud, listening device 18. Wall __ 19. Makes more desirable to a consumer 20. Made in the ____ 23. Jeep ____ Sport 24. Paint layer 26. Toyota pickup 28. They made the Crossfire sports car 29. VW van

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Answers to the 10/5/15 puzzle

30. MC 12, for example 35. ___ down an engine 38. Engine strength measurement, abbr. 39. Metallica’s first hit 40. Go downhill fast 42. Dodge model 45. British sports car

Answers to this puzzle in the 11/2/15 issue. Call 1.800.794.0760 for a FREE subscription.

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10/9/15 4:54 PM


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250+ Units From Your Favorite Sellers: Enterprise Holdings, Purple Heart, DT Credit, Hertz, Avis, Assorted Lease and Dealer Consignment

Located on CONE Rd. Sale Every MONDAY 9:30 am Over 180+ units weekly Indoor VIDEO SALE located at Cone Rd.

FREE Breakfast 8:30 am

Proudly featuring: Ford Credit, Progressive, All State, Geico, State Farm, and various Fleet Lease

For More Information Please Call Manheim Georgia Auto Auction 404-349-5555

(813) 247-1666 5109 Cone Road Tampa, FL 33619

M

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TRANSPORTATION SERVICES

BUYERS

FACILITIES

LOMEN AUTO TRANSPORT Serving the upper Midwest 40 yrs, 10 car haulers 800-697-0757

WHOLESALE BUYER-REP 30 yrs exp. Fl based. Will travel, references avail. Call Michael P. 954-445-6589

USED CAR & FINANCE. Turn-key operations. 22 years. Retiring. Madison Hts., Mich. $70,000. 248-396-0475

CM

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AUCTIONS

K

Mendenhall

Metro Atlanta new car franchise dealer only auto auction every Monday.

Since 1962

4/23/10

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P.O. Box 7344 High Point, NC 27264 “America’s Top quality Auction School”

Write or call for free catalog

Ph: (336) 887-1165 • Fax (336) 887-1107

Find more log on to

www.myvipauctions.com

YOU CAN PLACE YOUR AD IN THIS SECTION FOR AS LITTLE AS $56!

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AUCTION SCHOOL

www.mendenhallschool.com email: menauction@aol.com

Contact Marie Hingst today at 800-794-0760 ext.107 or marie@usedcarnews.com

UPCOMING ISSUES OF USED CAR NEWS January 4

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Factory Focus

Floorplanning

“My Worst Decisions” – Dealer Stories

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Tax Season Preview Year In Review

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USED CAR NEWS

AROUND THE BLOCK

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SUNSHINE STATE STAR: ADESA Tampa general manager Curtis Farris, left, accepts the 2015 Auto Auction of the Year award from NIADA CEO Steve Jordan.

The National Independent Automobile Dealers Association named ADESA Tampa as its 2015 Auto Auction of the Year for the auction’s contributions to its community and the used vehicle industry. The award was presented to auction general manager Curtis

Farris, representing the ADESA Tampa staff, during this year’s National Auto Auction Association convention in Orlando, Fla. “Under the leadership of its general manager, this auction has gone above and beyond in its support of local charities, its associations and, most of all, its cus-

tomers,� said NIADA CEO Steve Jordan. NIADA has presented the Auto Auction of the Year award annually to an outstanding NAAA auction since 2008. The winning auction provides the highest level of customer service and resources for NIADA’s independent dealers, displays support for its state association and its dealer members, participates in dealer events and promotes the industry by showing exceptional service to its local community. A member of the Florida IADA for 10 years, the auction has hosted, sponsored and tirelessly promoted FIADA membership drives, town hall sessions and other events and programs. It recently added an FIADA Independent Dealer Lane, giving independent dealers a boost with premium lane placement and discounted sell fees on a bi-monthly basis.

Enterprise Honors Top Performers Enterprise Holdings, which operates the Enterprise Rent-A-Car, National Car Rental and Alamo Rent A Car brands, is honoring 9 auto auctions with its 2015 Auction Achievement Awards. This annual program recognizes auction partners for exceptional performance in the areas of communication, customer service, marketing and reconditioning, operational success and strategic planning. The 2015 Auction Achievement Award winners are: • ADESA Atlanta • ADESA Los Angeles • Manheim Georgia • Manheim Nevada • Manheim Omaha • Manheim Pennsylvania • Manheim Riverside • Manheim Southern California • Manheim Texas Hobby An additional five auctions were recognized for their salvage sales.

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

FULL SPECTRUMLENDING Financing for EVERY SINGLE retail customer.

RE-DESIGNEDWEB PLATFORM Dealer friendly online portal that can generate a simple approval for any retail customer.

ONE-STOPSHOPPING

The smartest programs combine for the simplest experience with the highest profit.

autouse.com

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(800) 873-2907

10/9/15 4:57 PM


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