Used Car News 11/3/14

November 3, 2014

ON THE WEB: Used Car Sales Decline

Total used car sales, including franchise and independent dealerships, and private party sales, are estimated to be 3,084,040 in October, according to TrueCar Inc.

www.usedcarnews.com

SEE OUR AD ON THE BACK COVER

Association Honors Industry Veterans

Ford, Carfax Expand CPO Partnership

Ford Motor Co. and Carfax have expanded their partnership in the Ford and Lincoln certified pre-owned programs.

Ford is continuing its commitment to provide free Carfax vehicle history reports to buyers and sellers of certified Ford and Lincoln vehicles. In addition, all Ford and Lincoln CPO cars will now be listed on Carfax.

CPS Reports Higher Quarterly Earnings

Consumer Portfolio Services Inc. announced earnings of $7.8 million for its third quarter.

This compares to net income of $5.9 million in the third quarter of 2013. During the third quarter of 2014, CPS purchased $279.3 million of new contracts compared to $211.4 million in the second quarter.

Rush - Dated Material

Photo by Josie Godlewski DIGNITARY: Joe Maltese, concierge manager at Manheim Detroit, and his wife, Charmain, display the first Nancy Chapman Dignity Award for dedication to the Michigan Independent Automobile Dealers Association.

By Jeffrey Bellant

The Michigan Independent Automobile Dealers Association recently unveiled a new award for non-dealers who support the industry.

Joe Maltese, concierge

manager at Manheim Detroit, became the first recipient at the Michigan IADA convention in Grand Rapids, Mich.

The new award, called the Nancy Chapman Dignity Award, is named after the former Michigan IADA

director who retired earlier this year, Michael said. The award is for the member that has displayed the greatest effort, time and dedication to the Michigan IADA. “The board felt that (Maltese) really deserved it,” said Michigan IADA execu-

tive director Lisa Michael.

Blake Hollenbeck Auto Sales in Greenville, Mich., won the Michigan Quality Dealer of the Year award, qualifying for the National Quality Dealer of the Year event next summer.

Continued on page 8

Takata Airbag Recall Affects Millions of Used Vehicles The National Highway Transportation Safety Administration is urging the owners of millions of cars of several makes and models to take action on an expanded airbag recall.

The recall involves more than seven million vehicles with Takata airbags.

The recall includes vehicles built by Toyota, Honda, Mazda, BMW, Nissan, Mitsubishi, Subaru, Chrysler, Ford and General Motors between 2000 and 2008.

NHTSA said its message is especially urgent for owners of vehicles affected by regional recalls in the following areas: 260-B-BBU-Ad-7.175x1.8-UsedCarNewsCvrStp.pdf 1 7/30/14 Florida, Puerto Rico, limited areas near the Gulf of Mexi-

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co in Texas, Alabama, Mississippi, Georgia and Louisiana, as well as Guam, Saipan, American Samoa, Virgin Islands and Hawaii.

“Responding to these recalls, whether old or new, is essential to personal safety and it will help aid our ongoing investigation into Takata airbags and what appears to be a problem related to extended exposure to consistently high humidity and temperatures,” said NHTSA deputy administrator David Friedman.

“However, we’re leaving no stone unturned in our aggressive pursuit to track down the full geographic scope of 4:08 PM this issue.”

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10/23/14 11:56 AM

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Salvage Auction Chain Tracks Wide Array of Info these days.

Kett said the repair indusAs more vehicles arrive at try has become much more wholesale auctions, fewer accepting of using seconddealers are visiting salvage hand parts.

As for metals, more and auctions to source more cars, from hybrids inventory. to highlines, are using J o h n rare metals.

IAA must keep track of Kett, CEO of Insur- many moving parts as a reance Auto sult of all these different Auctions, buyers. This means gathInc., said ering information on evm a n y erything from the market d e a l e r s for used cars to unrest in John shop at South Africa.

Kett “It’s fascinating to get unboth his sales and those of sister com- der the covers and see what pany ADESA. But the num- makes this market tick,” Kett said. ber has declined recently.

The company shares a “We’re not seeing as many used-car dealers looking at spotlight on this in a regularly released publication our inventory,” Kett said.

This is not a problem for called the Industry Report.

Kett ranks used-car prices sales at IAA, however, as more overseas buyers are as the most important data point because it drives the picking up the slack.

Also, buyers at salvage amount of inventory sent to sales are looking for more auction. Companies deterthan vehicles. They are mine if they want to scrap looking for sources of ve- a car by subtracting the rehicle parts and precious pair cost from the used-car metals, such as platinum value. The repair cost is usually much more steady, and palladium.

TAA_UCNad_9x6.125-Print.pdf 1 10/24/14 8:35 AM Both are in higher demand he said.

By Ted Craig

THE SALVAGE AUTO AUCTION INDUSTRY:

12.8

BY THE NUMBERS %

%

0.5

percentagepoint decrease in unemployment from January to June

1.4%

%

4.5%

decrease in platinum prices compared with last year

increase in new-vehicle sales compared with last year

2.3

%

increase in consumer income compared with last year

0.9

5.7

%

3.1

%

economic growth from January to June

1.4

increase in the U.S. dollar compared with last year

increase in purchasing power compared with last year

7.1

decrease in crushed-car prices compared with last year

decrease in gasoline prices compared with last year

0.1

%

increase in consumer spending compared with last year

8.5

%

decrease in aluminum prices compared with last year

8.1

%

%

increase in used-car prices compared with last year

decrease in palladium prices compared with last year

Source: Insurance Auto Auctions, Inc

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 Ă&#x203A;Ă&#x203A;Ă?Ă&#x203A;Ă&#x203A;November 3, 2014

USED CAR NEWS

NEWS BRIEFS Asbury Sees Higher Used Revenue

lutions will be able to take advantage of a new integration, which gives them access to VinSolutions CRM data in the vAuto Provision suite.

With this integration, dealers can access key customer insights from their CRM software as they use Provision.

gate share repurchase authorization of $3.8 billion since the initial announcement of the program in October 2012.

CarMax expects to fund the expanded share repurchase program through a combination of cash from operations, the companyâ&#x20AC;&#x2122;s credit facility and other additional indebtedness.

Sept. 19 to purchase up to 995,698 shares of CACâ&#x20AC;&#x2122;s outstanding common stock at a price of $125.54 per share, net to the seller in cash, without interest.

Based on a preliminary count, the total number of shares tendered in the offer was 8,940,429. Of the total shares tendered, 57,462 were tendered pursuant to the guaranteed delivery procedure.

Based on the preliminary count, Credit Acceptance expects to purchase 995,698 properly tendered shares at $125.54 per share, net to the seller in cash, without interest, for a total purchase price of approximately $125 million.

Asbury Automotive Group Inc. reported net income for the third quarter of 2014 was $32.5 million, compared to $22.7 million in the prior year period.

Used vehicle retail revenues were up 8 percent. Used vehicle gross profit was up 2 percent.

Asbury opened its second standalone used vehicle store branded CarMax Expands Again CarMax Inc. officially opened its as â&#x20AC;&#x153;Q autoâ&#x20AC;? in Jacksonville, Fla, Credit Acceptance Buys Shares during the third quarter. The com- first store in Tupelo, Miss.

The store is more than 8,000 Credit Acceptance Corp. anpany announced plans to open square feet, occupies more than fi ve nounced the preliminary results of third â&#x20AC;&#x153;Q autoâ&#x20AC;? store in Ft. Myers, Fla. before the end of the year. acres and stocks more than 100 used its tender offer, which expired on vehicles.

Oct. 20.

Also, the companyâ&#x20AC;&#x2122;s board of diThe tender offer commenced on Vinsolutions, vAuto Integrate Tools rectors has approved a $2 billion Cox Automotive announced that expansion of the companyâ&#x20AC;&#x2122;s share Published By General Media LLC customers of both vAuto and VinSo- repurchase program, for an aggre-

MILESTONES Auction owner Joseph â&#x20AC;&#x153;Joeâ&#x20AC;?

' -É&#x; /!" (, 84, Dickson City, Pa., died Oct. 9, at the VNA Hospice unit at Geisinger Community Medical Center, Scranton.

Gaughand opened the Scranton/Wilkes Barre Auto Dealers Exchange in 1985. He also owned Gaughan Auto Sales and S.W.A.D.E. Auto Sales Gene Scagliotti, co-owner of S.W.A.D.E., worked with Gaughan Carolina_UCN Nov3-PRETAX.pdf 1 for several decades. â&#x20AC;&#x153;The auto auction industry lost a

great man,â&#x20AC;? Scagliotti said.

Gaughan was an active member of the Pennsylvania Independent Automotive Dealers Association and had served on its board of directors.

C R O S S WO R D

by Myles Mellor

PAGE 16 10/27/14

10:01 AM

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 Editorial: Ted Craig, Managing Editor Jeffrey Bellant, Staff Writer Contributing Writers: Ed Fitzgerald, Jenny King, Sheila McGrath Columnist: Tony Moorby Advertising: Shannon Colby, Account Manager Megan Frump, Account Manager Marie Hingst, Account Manager Circulation: Helen Thomas

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Production: Josie Godlewski, Media Manager Tim Montie, Graphic Designer â&#x20AC;&#x201D;â&#x20AC;&#x201D;â&#x20AC;&#x201D;

)&ĹşÉ&#x;ŲŰÉ&#x;É&#x;É&#x;Ć&#x20AC;É&#x;É&#x;É&#x; )ĹşÉ&#x;Źž

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. É&#x; É&#x; É&#x;

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.

04_UCN.indd 1

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Most Auto Buyers Use Social Media to Shop More consumers are going online to shop for cars, but many dealers remain uncertain of how to reach them.

Digital Air Strike has released the results of its 2014 Automotive Social Media Trends Study.

With consumersâ&#x20AC;&#x2122; ever-expanding dependence on social media, this study details the specific usage trends of social media and online review sites when people select a dealership for a new-car purchase.

The study included an online survey of 2,000 consumers who had purchased a vehicle in the last six months.

The study revealed that the vast majority (91 percent) of car buyers surveyed used social media and review sites in their dealership selection search, and 75 percent found the Internet to be the most helpful source for research - surpassing all other traditional advertising and marketing mediums including radio, print and television.

Star ratings also serve an important role according to the study, with 83 percent of car buyers relying on review star ratings in search results, even if they did not read the actual reviews (up from 76 percent in 2013). This yearâ&#x20AC;&#x2122;s study also found that 45 percent of those surveyed consider review sites the

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most helpful medium, raking them â&#x20AC;&#x153;the most helpful or as helpful asâ&#x20AC;? the dealer-owned websites, whereas only 19 percent found dealerâ&#x20AC;&#x2122;s websites the most helpful.

The overall trend toward the increased use of mobile technologies among consumers also holds true in this study, with 56 percent of car buyers using a mobile device to search and/or read reviews about a dealership.

Additional findings include: Ć&#x20AC;É&#x;šŴÉ&#x;* , (.É&#x;) É&#x; ,É&#x; /3 ,-É&#x;-/,0 3 É&#x; would drive 20-60 miles to reach a dealership with good reviews, up from 63 percent the prior year. Ć&#x20AC;É&#x; ,-Ĺş )'É&#x;Ć É&#x; '/( -Ĺş )'É&#x; )(tinue to lead top review sites. Facebook has now jumped into the top five review sites for dealership reviews as ranked by car buyers. Mer " (. #, & É&#x; ** , É&#x; ),É&#x; ." É&#x; ĹŚ,-.É&#x; time on the list of top review sites and ranks in the top 10. Ć&#x20AC;É&#x; . ,É&#x; ))!& ĹťÉ&#x; ,-Ĺş )'É&#x; , (% É&#x; as the top mobile app used by car buyers to read reviews. Ć&#x20AC;É&#x;ŴŸÉ&#x;* , (.É&#x;) É&#x; ,É&#x; /3 ,-É&#x;- 3É&#x;." 3É&#x; would use the new â&#x20AC;&#x153;click to purchaseâ&#x20AC;? feature by Facebook for automotive purchases/discounts. Ć&#x20AC;É&#x; ųųÉ&#x; * , (.É&#x; ) É&#x; ,É&#x; /3 ,-É&#x; " 0 É&#x; clicked on a Facebook ad on a mobile device. Ć&#x20AC;É&#x; šžÉ&#x; * , (.É&#x; ) É&#x; ,É&#x; /3 ,-É&#x; - # É&#x;

they are more likely to trust a review from a friend on Facebook vs. a review on another site, from an unknown consumer.

Many dealers still grapple with how to reach these shoppers and they are not alone.

A recent survey by small business , #.),É&#x; É&#x; *#. &É&#x; ( ĹşÉ&#x; -")1-É&#x; that 38 percent of small businesses are looking to expand and/or try new forms of advertising/marketing activities within the next year,

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up from 31 percent last quarter.

Thirty percent also cite digital marketing as being very or extremely important.

However, they are still unsure about how to navigate this area, with 39 percent saying they have not optimized their businessâ&#x20AC;&#x2122; website for all mobile devices. Furthermore, only 31 percent cite social media marketing (such as Facebook ads) as being very or extremely important to their growth strategy.

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11/12/14 10:05 AM

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Sudden Shut Down Stuns Town

By Sheila McGrath

One of Ohio’s largest online usedcar dealers abruptly closed in October as a veteran TV news reporter was digging into a story about its finances.

The sudden closure left several buyers in the dark about the ownership status of their vehicles, and left Cleveland taxpayers out more than $160,000.

In early October, 19 Action News reporter Carl Monday tipped off the Greater Cleveland Regional Transit Authority that Autos Direct Online might have been underpaying its rent. Since the car dealers were renting a former bus garage owned by the transit authority, the money came out of taxpayers’ pockets.

RTA spokesperson Linda Krecic said they don’t know where Monday got the information about the underpayment. But after receiving Monday’s tip, the RTA staff looked into the rent being paid by Autos Direct Online and found that for 17 months, the car dealer had been paying them $150 per month, not the agreed-upon rent of $9,808.

RTA officials said a clerical error led them to bill Autos Direct Online’s rent at the wrong rate. The $150 figure came from a one-time occupancy fee the business paid when it

moved into the 118,000-square-foot bus garage in January 2013.

Monday later reported that in addition to the $160,000 underpayment of rent, the company also had unpaid utilities and penalties, bringing the total owed to about $255,000.

On Oct. 7, Autos Direct Online informed the Better Business Bureau of Northeast Ohio that they had ceased operations. As of Oct. 23, there were 139 complaints against the company on file with the Ohio Attorney General’s office, most of them related to titles.

In a news segment that aired Oct. 13, Monday asked Autos Direct Online co-owner Vince Hugo why they never brought the billing error to the RTA’s attention.

“We’re looking into it with RTA, and when we find out, we’ll let you know,” Hugo said.

Krecic said after the underpayment was discovered, the RTA offered to enter into a repayment plan agreement with the car dealership owners, and sent over the paperwork. But the signed agreement was never returned to RTA. There were about 75 vehicles inside the business when it closed, many of them luxury models, according to the news report.

Continued on page 10

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PAGE 8 - OTHER VOICES

CFPB Chief Talks About Auto Finance at Civil Rights Forum (Richard Cordray, director of the Consumer Financial Protection Bureau, recently delivered a speech at a forum titled “Economic Rights as Civil Rights” at Mcihigan State University.

The following are some of his comments about auto fiannce.)

The Bureau also has the duty to enforce the fair lending provisions of the Equal Credit Opportunity Act in the auto lending market.

Typically, when a consumer finances a car loan t h ro u g h Richard an auto Cordray d e a l ership, banks and other lenders grant the dealer discretion to determine how much to charge the borrower for the loan.

These discretionary pricing policies are conjoined with financial incentives for the dealer to “mark up” the rate in return for taking a cut of the resulting rate spread.

The way in which this discretion is exercised often results in African-American and Hispanic borrowers paying more for their auto loans than similar white borrowers.

Unless the lender can prove it has a legitimate business reason for those higher charges, such conduct is against the law.

Indeed, the same type of lending problem existed

in the mortgage market, where it was known as the “yield spread premium.”

Yield spread premiums have now been made illegal across the board, whether or not they result from discrimination.

Many studies show that people of color pay more than whites do for their car loans when the loans are financed through auto dealers.

Research done by the Center for Responsible Lending showed that minority borrowers attempt to negotiate and comparison shop just as much as, if not more than, their white counterparts – suggesting that the disparity cannot be pegged to a lack of bargaining.

Other research has shown that blacks and Hispanics get better deals when they negotiate auto loan pricing online, rather than in person.

Moreover, when researchers have sent test buyers into dealerships, they found that dealers quoted significantly lower prices to white males than to black or female test buyers.

These are recent examples, and they indicate that the problem of discrimination has not disappeared from our society.

But what recourse is open to borrowers who are charged more to finance an auto purchase than their creditworthiness would have justified?

The initial “buy rate” that lenders quote to the dealers is not disclosed to consumers, and so when that

initial rate is marked up by the dealers to a higher rate of interest, many consumers do not even realize they are paying more, let alone why.

Where statistical or other evidence indicates that this higher pricing of credit is occurring based on the consumer’s race or national origin or other prohibited characteristics under the Equal Credit Opportunity Act, then there are legal remedies available.

Whether or not consumers avail themselves of those remedies, it is also within the Consumer Bureau’s power to take direct action to enforce the law as well.

Under established law, the statute operates according to either of two prongs, and the Bureau has the authority to pursue lenders whose policies and practices either create disparate treatment or have an illegal disparate impact on communities of color.

Although these are two distinct theories by which to prove discrimination, in many ways the cases are very similar.

A disparate-treatment claim often will be grounded on evidence that presents some overt indication that the consumer was targeted for differential treatment based on prohibited characteristics.

A disparate-impact claim, by contrast, may not present any such evidence, but will be based instead on statistical evidence of differential treatment among a larger universe

of consumers.

The second prong, which has been settled law for over two decades, is under some pressure right now.

But the distinction between the two prongs is not as clear as it may sound. The statistical evidence that plays a central role in disparate-impact cases is also probative evidence that is quite relevant in disparatetreatment cases as well.

So it is not clear how much difference there is in practice between cases brought under either prong.

Barring some more overt evidence of discrimination, which is now rarely found in lender files, the same kind of statistical evidence would tend to bear strongly on discrimination claims framed under either approach.

Moreover, it is not clear how much the distinction between treatment and impact would necessarily matter to a consumer.

Certainly any more overt indicator of discrimination would likely add “insult to injury,” to borrow a common phrase. But if instead an auto lender simply set up its lending program in such a way as to systematically overcharge both this consumer and other members of the same minority group, then essentially the same injury would have occurred.

Accordingly, the same legal relief would appear to be justified in both instances if the consumer’s access to credit on fair and equal terms is to be protected under the law.

We have a duty to enforce the law, and the Equal Credit Opportunity Act has been the law of the land for forty years. So where we have seen problems, we have taken action.

Last December, we worked with the Department of Justice to resolve the largest set of auto loan discrimination claims in history.

Ally Bank was required to pay $98 million to address their discriminatory pricing practices (including an $18 million penalty), which had caused more than 235,000 minority consumers to pay more for their auto loans than white consumers who were similarly situated.

The bank also was required to implement a robust compliance management system to prevent such problems from recurring.

We have since announced that $56 million of consumer relief will be distributed to approximately 190,000 more consumers for discriminatory practices by other major auto lenders since the Ally matter was resolved.

This relief has come about as a result of work we do in our supervisory role over the larger banks, where Congress has authorized us to send in teams of examiners to monitor their operations for compliance with fair lending laws, including the Equal Credit Opportunity Act. All of this enforcement and supervision work in auto lending is important and it remains ongoing.

Michigan IADA Awards – Continued from page 1 Hollenbeck, who has been in business since 1998, said he was a little shocked by the award.

The dealership has stocked between 100 and 120 units in the past, with vehicles selling for less than $20,000.

“I’m right in the middle of a big construction project,” he said. “We’re doing a new parking lot and we’re putting a huge service addition, since we’re big into service.”

ÛÛÝNovember 3, 2014

08_UCN.indd 1

Hollenbeck said he’s been renovating the dealership for about a year and a half.

“It’s for more space for customer service work and a prep area for used cars.”

He also expects to add more cars into inventory and a showroom.

Guardian Warranty’s Joe Kuhta, who is also treasurer of the Michigan IADA, said Hollenbeck’s dealership is a “showplace.”

Kuhta, who serves on the

committee that helps pick the quality dealer award, said Hollenbeck does a large amount of charity work. “(Hollenbeck) is a guy who does nothing but give,” Kuhta said. “He’s the kind of guy who never says ‘no.’

He’s one of the best dealers we’ve ever chosen (for the award).”

Hollenbeck is a first-gen-

eral dealer who has several family members working at the store. He has two brothers, a daughter and two nephews that work in the business.

The Michigan IADA also gave scholarships to two students.

Nicole Hart from Marty Hart’s Auto Sales in Sturgis, Mich., won the Ray Ketel-

hut scholarship award. Hart is attending University of Michigan-Flint. She will be pursuing a career in English.

Meghan Wolter won the Greater Kalamazoo Auto Auction/Michigan IADA Scholarship award. She will be attending Grand Valley State University to pursue a career in nursing.

NEXT ISSUE: FACTORY FOCUS www.usedcarnews.com

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Grecic said the RTA filed a breach of contract claim to recoup the money, and after securing the site, allowed the dealership owners to come in and retrieve their property. â&#x20AC;&#x153;At the time we secured the property, we determined that because of the poor business practicesâ&#x20AC;Ś it was impossible to determine who owned what vehicles,â&#x20AC;? Grecic said. â&#x20AC;?There were secured interests far superior to ours, making our recovery of funds highly questionable.â&#x20AC;?

Customers were also caught in the middle, many of them left without

titles, warranties, and sometimes their vehicles.

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On Oct. 22, Michael Herrick, vice president of Liberty Auto, agreed to write off the unpaid balance on those vehicles so the buyers could get their titles.

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Mark Steffes, owner, Auto Acres, Billings, Mont.: “I’ve been in business since 1976. I’m a member and past president of the Montana Independent Automobile Dealers Association.

“I have one location. I keep about 70 units on the lot. We’ve increased our inventory quite a bit. We’ve increased our floor plan and we’ve been able to buy more vehicles.

“We’re selling about 25 units per month. That’s a little better than this time last year. “(We buy our vehicles) from Auto Auction of Montana. We also buy from a public auto auction. I also have different buyers around the country that buy for me.

“We do some subprime business. But that’s a pretty small part of the business – about 10 percent.

“The average retail price on the lot is about $7,500.

That really hasn’t changed much from last year.

“Our average model year is probably between 2002 and 2007.

“The average mileage is between 75,000 and 150,000. Mileage is an issue in that the low-mileage cars bring such a premium in price that I think they become unaffordable.

“For the consumer, there’s a much better buy on a 120,000-mile vehicle for $6,500, as opposed to the same vehicle with 50,000 or 75,000 miles that costs $9,000. I think the consumer gets a much better deal on price and utility on the vehicle with a few more miles on it.

“We pretty much carry all domestics. The imports bring a premium price. If you compare a Ford Ranger pickup to a Toyota pickup, the Toyota is going to be $4,000 more on a seven- to eight-year-old vehicle and I don’t think you get (a better) value on the Toyota.

“Over the years, I have developed my business primarily into a truck and SUV market. But over the last 12 months, we’ve taken a few

:gehad]\ÛZqÛA]^^j]qÛ9]ddYfl more automobiles into our inventory. Still, about 90 percent of our business is trucks and SUVs. “We try to buy vehicles that are ready to sell. So we probably spend, on average, about $200 for reconditioning. We do some of the work and farm out some of it. We don’t do outside service.

“We advertise with our own website and we use a local trading type paper.

“We recently sold a 2006 Chevy Duramax diesel pickup with 200,000 miles on it. We got $21,000.”

M@I>@E@8

Weldon Whitehurst, owner, VA Beach Truck Center, Virginia Beach, Va.: “We’ve been in business 25 years.

“I have one location. I carry light trucks and SUVs. That’s 100 percent of my inventory. That’s what I’ve always carried.

“I keep 10 to 15 (units) in inventory. That’s (typical) of this time last year.

“At this time, I’m selling about six vehicles a month.

That’s a little better than this time last year. We have a little better inventory.

“Everybody’s have kind of gotten used to the fact that if you’re going to buy a truck or SUV, you’re going to have to pay a premium for it. It took us a while to come to that fact.

“While we struggle to find the right inventory, I’ve found that if you find the right piece, as long as it’s within reason pricewise, you might as well just go ahead and buy it. The reason is you’re definitely going to be able to sell it, because there are not a lot (nicer trucks) out there.

“But, No. 1, trucks retain their value.

“Our vehicles are purchased at local auctions. ““Also, today’s vehicles are running so much longer mileage-wise.

“Now we’re buying cars with 120,000 to 140,000 miles and they still have a lot of service life left.

“The average model years here are 2006 to 2008. The average mileage is 100,000 to 140,000.

“With vehicles like SUVs, we have to pick through a little harder, because some of them are edgier. The reason is people kept those vehicles a little longer before they traded them.

“Ninety percent of my inventory is domestic.

“I carry about 75 percent SUVs and 25 percent trucks.

That’s mostly due to available inventory.

“The average retail price is $15,000.

“The cost of reconditioning continues to go up. We spend an average of $1,000 to $1,200 (per vehicle).

“But the cost of tires in the last year has actually gone down about 10 percent on a mid-line tire. There is a lot of petroleum-based material in tires and that has gone down in the last six months or so.

“We use Internet-only advertising. We’re changing our emphasis to Cars.com.

They seem to be the most customer-friendly business.

“One recent vehicle I sold was a 2006 GMC Yukon XL. It had 116,000 miles and sold for $14,000.”

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14-221 CAF RMTKT Used Car News Ad 4.437x6.125.indd 1

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6/3/14 3:44 PM

10/27/14 4:56 PM

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WHOLESALE MARKETS ARKANSAS

Shane Wood, general manager, 71B Auto Auction, Springdale, Ark.: “We just celebrated our four-year anniversary.

“We have five lanes and we’re running five.

“Our volumes are right around 1,000 a week. We’re up probably 300 cars from last year. I attribute that to customer service. We started this business as a hobby.

I used to be a wholesaler and bought cars from Brian Hunt, son of J.B. Hunt (of the trucking company). This all started over lunch one day. He had some property that was unused and had a building and two trailer houses on it. We thought we would get 100 cars a week.

But it’s grown into this.

It’s grown from a hobby into this.

“Since February, we’ve spent $10 million on renovations. We added two lanes and a state-of-the-art restaurant and new offices.

We also purchased another seven acres and blacktopped it.

“Sales percentages are

50 to 60 percent. We’re strictly dealer consignment.

We haven’t broken into the fleet-lease market yet.

“We do very few repos.

“About 75 percent of what we run is new-car trades.

The remainder would be wholesalers.

“Our big market is the $4,000 to $10,000 range stuff. America’s Car Mart’s corporate office is just a couple of miles down the street.

They buy strong here. “As we move into (the buy-here, pay-here buying season) in the next few weeks, we’ll be bumping into the 65to 70- percent sales range through April., “We’ll usually print 350 to 400 bidder badges. That’s a lot better than last year.

We’re draw dealers from all over. We recently spent 17,000 on mailers that we sent to every dealer in several states. We draw dealers from Louisiana, Oklahoma, Kansas, Missouri, Arkansas and Mississippi.

“In this market, the 2008 Chevy Impala is not selling, but the 2008 Z71 short-wide truck with (great) wheels and tires – a stud truck – is

Compiled by Jeffrey Bellant still selling.

“What I mean is, guys are not buying cars to stock their lot, they are buying cars they need.

“The average price coming through the lanes is $6,500. Last year, I think it was about $5,200. We’re just getting more later-model stuff.

“But the economy here is really good. There’s all kinds of business going on.”

IOWA

Mark Greb, owner, Plaza Auto Auction, Mt. Vernon, Iowa: “The year got off to a slow start, but since the end of the third quarter and the start of the fourth, business has really picked up.

“There’s been quite a few more cars and sales have picked up.

“I’ve owned the auction since 2003, but Plaza’s been in business over 51 years.

“We run four lanes, but we have the potential to run five.

“Volumes have been slowly picking up. We’ve been running about 340 to 360 (units).

“It’s considerably better than last year. It’s up about 60 cars.

“A little bit of the fleet business has increased.

There are more repossessions and we’ve attracted new consignment customers. It’s been an incremental increase.

“Sales percentages are 62 percent, year-to-date. We’ve had some in the 70s. That’s about the same as this time last year. But we had fewer cars last year. Maybe our percentages were just a little better last year.

“We’re averaging 175 dealers in the lanes. That’s up just a little from last year, maybe a 6 percent increase.

“From dealers, I’m hearing that franchise dealers are doing good.

“The independent dealers have said that traffic flow has been a little slow from time to time. But they know they need cars now because the tax season is just around the corner. They don’t want to wait until the last second when prices are inflated and (less) choice.

“About 15 percent of our cars are fleet-lease repos-

sessions – maybe 20 percent. That’s higher than last year.

“The average price coming across the block is just under $4,000. That may be up a little bit from last year.

“We cater a little more to the independent dealer.

Since we have a night sale, it allows those dealers to work the day and, after they close shop, come to Plaza.

We also have a good base of franchise dealers.

“Dealers are starting to use our reconditioning services a little bit more because they don’t have the time to get the cars ready.

We’ve gotten franchise dealers use the recon services more.

“We do a salvage sale during the first sale of the month. We don’t work that as much as we should.

“We also do a quarterly powersports sale. We’ve had four this year. We usually offer about 115 to 125 pieces. Sales percentages have always come in the 50s to low 60s. Those pieces are mostly motorcycles, fourwheelers, side-by-sides, things like that.”

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13_UCN.indd 1

10/27/14 4:54 PM

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MONTHLY DEALER CONSIGNMENT AVERAGES AVG SALE PRICE AVG. MILEAGE

COMPACT CAR

PICKUP

JAN 2014 FEB 2014 MAR 2014 APR 2014 MAY 2014 JUN 2014 JUL 2014 AUG 2014 SEP 2014 YTD AVG:

JAN 2014 FEB 2014 MAR 2014 APR 2014 MAY 2014 JUN 2014 JUL 2014 AUG 2014 SEP 2014 YTD AVG:

$5,755 $5,962 $6,262 $6,278 $6,067 $5,883 $5,711 $5,565 $5,154 $5,861

98750 98018 97843 98425 100231 100748 100783 101234 104756 100036

DECEMBER 1st - GIVING BACK Deadline: Thursday, November 20th DECEMBER 15th - YEAR IN REVIEW Deadline: Thursday, December 4th

$12,888 $13,003 $13,560 $14,012 $13,891 $13,740 $13,324 $13,342 $13,094 $13,430

FULLSIZE CAR

SPORTS CAR

JAN 2014 FEB 2014 MAR 2014 APR 2014 MAY 2014 JUN 2014 JUL 2014 AUG 2014 SEP 2014 YTD AVG:

JAN 2014 FEB 2014 MAR 2014 APR 2014 MAY 2014 JUN 2014 JUL 2014 AUG 2014 SEP 2014 YTD AVG:

$4,621 $4,600 $4,699 $4,713 $4,612 $4,552 $4,364 $4,123 $3,954 $4,482

108480 109110 110445 110363 110137 113245 110767 111043 112440 110614

LUXURY CAR

Upcoming Issues

AVG SALE PRICE AVG. MILEAGE

JAN 2014 FEB 2014 MAR 2014 APR 2014 MAY 2014 JUN 2014 JUL 2014 AUG 2014 SEP 2014 YTD AVG:

$11,917 $11,527 $12,531 $13,005 $12,849 $12,212 $11,542 $11,633 $11,322 $12,087

$6,032 $6,200 $6,742 $6,650 $6,593 $6,360 $6,143 $6,059 $5,699 $6,289

$13,512 $13,623 $15,602 $15,855 $15,713 $15,432 $14,819 $14,280 $13,725 $14,806

80347 81653 75672 75541 77103 76926 79231 81081 80898 78504

$11,234 $10,978 $11,761 $11,787 $11,821 $11,425 $10,902 $10,906 $10,574 $11,267

104338 107255 105343 106389 106139 107022 108084 107776 109375 106859

$6,068 $6,324 $6,574 $6,776 $6,629 $6,245 $5,981 $6,031 $5,768 $6,284

117578 116914 118528 117292 119137 120093 120756 120506 122352 119170

SUV 95362 98438 97045 97093 96645 98175 100437 99360 100002 97989

MIDSIZE CAR JAN 2014 FEB 2014 MAR 2014 APR 2014 MAY 2014 JUN 2014 JUL 2014 AUG 2014 SEP 2014 YTD AVG:

110336 111078 109817 108793 109730 110708 112826 112807 113048 110984

JAN 2014 FEB 2014 MAR 2014 APR 2014 MAY 2014 JUN 2014 JUL 2014 AUG 2014 SEP 2014 YTD AVG:

VAN 108140 109359 106756 108045 108355 108716 109257 109676 112301 108910

CURRENT YTD, THROUGH SEPTEMBER 2014

JAN 2014 FEB 2014 MAR 2014 APR 2014 MAY 2014 JUN 2014 JUL 2014 AUG 2014 SEP 2014 YTD AVG:

SOURCE: MANHEIM CONSULTING

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10/24/14 10:02 AM

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IN THE ARENA: Manheimâ&#x20AC;&#x2122;s Karyn Wrye and Scott Hurst, from left, meet with California lawmakers Jose Medina and Richard Roth at Manheim Riverside, along with Christopher Brown, general manager and Sam Attisha, vice president of public affairs, Cox Communications.

Š2013 Sterling Credit Corporation

Manheim hosted an auction visit and tour of Manheim Riverside for California State Sen. Richard D. Roth (D-Riverside) and State Assemblyman Jose Medina (D-Riverside) on Oct. 21.

The visit was scheduled to demonstrate the economic value that wholesale vehicle auctions provide to their local economy.

Roth and Medina toured the wholesale facility, and met with Scott Hurst, market vice president for Manheimâ&#x20AC;&#x2122;s Southern California Market; Christopher Brown, general manager for Manheim Riverside, and Karyn Wrye, senior director of Manheimâ&#x20AC;&#x2122;s government affairs. â&#x20AC;&#x153;I am proud to visit Manheim Riverside,â&#x20AC;? Roth said. â&#x20AC;&#x153;This tour provides an opportunity to speak directly with business owners and their employees and learn what the Legislature can do to help assist economic growth.â&#x20AC;?

Medina said that â&#x20AC;&#x153;state-of-the-art facilitiesâ&#x20AC;? like Manheimâ&#x20AC;&#x2122;s sale â&#x20AC;&#x153;are a beacon to the local economy.â&#x20AC;?

Hurst said the auction was honored to host the lawmakers.

Auction Event Supports At-Risk Youth Each September since 2009, Metro Auto Auction of Phoenix has sponsored the â&#x20AC;&#x153;Metro Caresâ&#x20AC;? two-day golf event, which includes a dinner reception as well as a live and silent auction. During this five-year span, more than $225,000 has been donated to Elevate Phoenix thanks to the dealers and vendors of the auction who have supported this event.

Auction owner Tom McDermott has made giving back to the community one of the auctionâ&#x20AC;&#x2122;s core values.

McDermott and professional golfer Tom Lehman are founders and board members of Elevate Phoenix, which is a locally based charity that works with at-risk urban youth.

15_UCN.indd 1

â&#x20AC;&#x153;Elevate Phoenix is totally funded by the private sector,â&#x20AC;? McDermott said. â&#x20AC;&#x153;Currently there are 4,800 students in the program and the cost of making a difference in a studentâ&#x20AC;&#x2122;s life is $222. The graduation rate of students in this program will make a difference in the (local) labor market and community for years to come.â&#x20AC;?

We invite news items and top-quality photos from our readers to be considered for â&#x20AC;&#x153;Around the Block.â&#x20AC;? 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

10/27/14 4:47 PM

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(This is the third-part of a three part series.)

For my part, I started washing cars when I was 11 and had a nice little business going, keeping me in spending money for sweets, sodas and cigarettes. I even had an-

the rest of the day.

Many celebrities lived nearby and I used to deliver a whole case of oranges to the Redgrave family to feed their exotic birds kept in an aviary downstairs. Vanessa Redgrave was charm personified and

Tony Moorby

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other boy working for me.

The winter of 1963 put an end to that. It was so cold that I tried putting salt in the water bucket to stop it from freezing. It didnâ&#x20AC;&#x2122;t. With arms chapped to the elbows, my mother insisted on me getting something different to do.

I ended up at the greengrocerâ&#x20AC;&#x2122;s, like my brother, delivering orders of fruit and vegetables with a bike so heavy it would have pleased the toughest fitness trainer. Keeping the displays stocked and tidy took

used to make me hot chocolate on winter days and chat about school and anything else that came to mind. Her sister, Lynn, just stayed in bed all day.

A walk along the high street in those days provided a dizzying dance for the eyes and a heady aroma, changing at every door, invited your custom and to step inside.

Cafes, more than restaurants (which were reserved for special occasions), added to the sensory onslaught and were often attached to baker-

C R O S S WO R D

ies. Breads of every shape and description beckoned you to indulge in cakes and buns.

You could put on weight just by looking.

Perhaps the most intriguing places to eat were Pie and Eel shops. Hangovers from history, when eels were cheap and readily available from The River Thames, hot stewed eels were sold from carts in the street. As an alternative, the vendor offered them cold, set in an aspic jelly to stop spoilage.

Because eels were cheaper but just as nutritious as meat, they were baked into pies for one of the original â&#x20AC;&#x153;takeawaysâ&#x20AC;? or an early rendition of todayâ&#x20AC;&#x2122;s food trucks. Eventually meat became more plentiful and eels were becoming scarce â&#x20AC;&#x201C; barges used to bring them from the Netherlands as The Thames was overfished and filthy.

Today, a few Pie and Eel shops remain, owned for generations by the same families. They are Victorian edifices with white and green tiles, housing white marble-topped tables and wooden benches, family style. A typical

Across 1. The dealer group that Buffett bought (2 words) 5. Rayton Fissoreâ&#x20AC;&#x2122;s SUV 9. Top driver 10. Luxury Ford 11. 2015 Jaguar ___ 12. â&#x20AC;&#x153;Not gonna happen!â&#x20AC;?

(2 words) 13. Itâ&#x20AC;&#x2122;s at the end of Benz 14. Cadillac model 15. 200 and 300 makers 17. The elder 18. Kia subcompact 19. Isuzu SUV 21. Hyundai sedan 23. S60 and S80 maker

Down 1. CC makers 2. iPod devices 3. One in Spanish

Road and treat ourselves to a double order of everything, rubbing shoulders with cab drivers to construction workers and students to seniors.

Nowadays the main street is a different story. The shops have gone to the malls and many eateries and restaurants are clustered nearby and cooking at home has now reached an inverse snobbery.

In England, many small town high streets now play host to charity shops selling coconut-smelling candles and castoffs and an Indian or Chinese take-away. Big cities, on the other hand, have restaurants boasting worldwide menus in abundance and Chelsea could be Chicago or London could be in Lebanon.

As a supreme irony to a food lover, Iâ&#x20AC;&#x2122;m now a few weeks into a strict diet.

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Sponsored by INSURANCE AUTO AUCTIONS

By Miles Mellor

25. A single time 26. New Yearâ&#x20AC;&#x2122;s ___ 27. Roof style 30. Augustaâ&#x20AC;&#x2122;s state 33. Volkswagen sedan 35. Hyundai SUV (2 words) 40. Ion and Vue, for example 44. System for auto emissions 46. Electric vehicle, for short 47. Go partying 49. Class luxury car, __ Baron 50. Completed negotiations 51. UK auto brand once owned by BMW 52. Letters before an alias

order would consist of a small minced beef pie, surrounded by a green parsley gravy that was used to stew the eels, segments of the stewed eel, cut to an inch long with mashed potatoes slid on to the rim of the plate with a wooden spatula to stop spillage. Condiments consisted of salt and white pepper along with peppered vinegar. Eels taste a little like catfish with just one cartilage-like bone and a wonderful texture that belies the original look. They arenâ&#x20AC;&#x2122;t slippery either.

At school, Robin and I ate at Taylorâ&#x20AC;&#x2122;s Pie and Eel shop in Hammersmith every day instead of risking the very questionable school lunches for two and a half years! Whenever I go back to England, Robin and I make a pilgrimage to Manzieâ&#x20AC;&#x2122;s on Tower Bridge

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17. Toyota Camry Hybrid ___ 20. Ding on the body 22. Honda model 24. Sporty British auto 28. ___ mode 29. ____ Kallista 31. Movie extraterrestrial 32. Provided 34. Whitewalls, e.g.

36. MDX maker 37. Additional option

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Answers to the 10/20/14 puzzle 1

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42. Website address 43. Reno state 45. Toyota Sienna ___ 48. â&#x20AC;&#x2DC;Behold!â&#x20AC;&#x2122;

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Answers to this puzzle in the 11/17/14 issue. Call 1.800.794.0760 for a FREE subscription.

16_UCN.indd 1

10/24/14 4:56 PM

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USED CAR NEWS

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10/27/14 10:55 AM

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SDA Provides Funding to Dealers Frustrated by Hassles of Buy-Here, Pay-Here? There’s a Better Way! Small Dealers Assistance (SDA) in Atlanta has been a consistent capital provider to the buy-here, payhere industry nationwide for over two decades.

In addition to being one of the oldest, most established, suppliers of capital to the buy-here, pay-here industry, SDA pays the highest advance in the industry – up to 90 percent.

SDA provides the money that buyhere, pay-here dealers need without the negative consequences usually associated with selling your accounts.

SDA provides dealers capital from $10,000 to over $1,000,000 and always lets the dealer continue to collect their notes.

SDA’s Income Stream Program is the ideal method for buy-here, pay-here dealers to raise capital without giving up control of their customer base.

SDA can help dealers upgrade their inventory, expand a new or existing lot, or load up on inventory prior to tax season.

To find out how SDA can provide your buy-here, pay-here dealership capital visit www.sdainc.net or call (800) 467-5172.

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The buy-here, pay-here business can be trying, with many obstacles to overcome in order to achieve long-term success.

Though the buy-here, pay-here business can help you with your ultimate goal of selling cars and creating a profitable business, the difficulties faced continue to increase in both quantity and complexity. Buy-here, pay-here dealers are faced with cash flow and collection issues, as well as ever increasing regulatory compliance mandates.

There is, however, another way. If you want the benefits of buyhere, pay-here without the hassles, Credit Acceptance can help.

Since 1972, Credit Acceptance has been an industry leader in subprime auto finance, approving over 7 million customers and paying out billions to dealers just like you!

Their Portfolio program provides dealers with the oppor-

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tunity to deliver an approval to any consumer within 30 seconds using a patented Credit Approval Processing System (CAPS®).

With CAPS®, dealers can structure competitive deals with both up-front and Portfolio Profits.

The initial Portfolio program Advance offered by Credit Acceptance can significantly increase your cash flow without sacrificing the benefits of the payment stream created by buy-here, pay-here.

Let Credit Acceptance help you grow your dealership and eliminate the need to navigate through the recent changes and uncertainty in regulations regarding the buy-here, pay-here industry. In addition to monitoring their own compliance with applicable laws and regulations, they have processes for monitoring dealer compliance. Their streamlined funding is fast and easy. Plus, Credit Acceptance collects on your contracts – allowing you to spend more time selling cars!

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20_UCNrevised.indd 1

10/27/14 9:48 AM

Special Advertising SectionÛ

USED CAR NEWS

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GoldStar CMS: Designed by Dealers for Dealers When it came to designing Spireon’s new GoldStar CMS, we went directly to the source to find out what features were wanted and needed.

With over 1.9 million subscribers, we weren’t hard-pressed to get feedback from our buyhere, pay-here dealers.

So what did our dealers want?

The answer was pretty straightforward: A collateral management system that tracks vehicles in real-time, lowers delinquencies and defaults, and reduces repossessions. Our dealers wanted to say “yes” to more customers, reduce their risks and grow their subprime auto lending business more profitably.

As for their typical day, our dealer customers made it more than clear that they didn’t want to be stuck behind a desk. They wanted to be out on the lot, interacting with customers and selling more cars.

With all of their feedback in mind, we designed a solution.

The new GoldStar CMS interface is now more intuitive and easier to use.

All vehicle information is just a few clicks away, making it faster to complete tasks than

ever before. Plus, it’s mobile optimized, allowing you to manage collateral from any smartphone or tablet.

To help streamline GPS device installation, the convenient VIN scanner mobile app decodes and auto-populates vehicle information directly into your GoldStar CMS account.

It’s faster than writing it all down and having to go back

eliminate redundancy and enable you to send batch commands on multiple cars.

With this convenient, timesaving feature, you’ll be back on the lot and selling more cars in no time flat.

When all the important things you need to know about your vehicles are all in one place, managing those vehicles is easy.

Always be in the know with the new Device Health Indicator. Built-in monitors tell you at a glance if a car’s battery is getting low, if the GPS signal reception is being affected, or if the vehicle is simply out of cell phone range. You’ll know when an issue occurs and if you need to take action right away.

It’s the smart and simple

through, decode handwritten information, and manually punch in all the numbers and details.

Want to make sure vehicles don’t wind up at an impound lot, racking up fees? Set up a GeoZone for your entire fleet with just one click.

Need to run a history report?

One click. Group Commands

The new GoldStar CMS Dashboard highlights the most important data on one screen, allowing you to see exactly what actions you need to take.

You’ll be able to manage inventory more easily and make sure your GPS devices are working when they need to be.

way to stay connected to your vehicles.

Do you wish you could save time (and money) calling to verify customer references?

Do your customers wish for a friendly experience where their employer or landlord won’t get a phone call? With Reference Genie™, your wish is our command.

If you want your cash to grow, Send your subprime apps to GO!

By electronically conducting each customer’s background analysis and auto-generating results, you can skip the phone calls, close out STIPs faster and increase cash flow.

If and when it’s necessary to recover a vehicle, it’s important to do it quickly and inexpensively.

That’s why we developed Location Genie™ – the GPS vehicle tracker that knows exactly where your cars are. No need to pay a recovery agent to search neighborhoods. The Location Genie speeds up the process while reducing the cost and number of attempts needed.

With GoldStar CMS, you can now work smarter and sell more cars. This brilliantly simple, incredibly powerful collateral management system has been designed and built to meet your unique business needs. And that’s just the way it should be.

Get ready to change the way you think about GPS tracking. Learn more by visiting GoldStarGPS.com or call 1-866-655-8825 to schedule your free, no-obligation test drive.

GO Financial’s innovative subprime lending program puts you in control.

It’s an end-to-end solution that provides up-front profit and future cash flow streams.

* No Sign Up Fees * No Monthly Software Fees * Non Recourse * Cash Out Now Get Started Today: Visit gofinancial.com or call 888-463-4626

21_UCN.indd 1

10/23/14 1:01 PM

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Skypatrol Adds Data Verification Tool to Award-Winning Platform Track and recover. Reduce loss. Increase revenue.

Mitigate risk. Boost Portfolio Performance. Worthy goals, but how can auto dealers and lenders really achieve that?

They need new tools in order to prosper and thrive in the current economic climate.

Many GPS companies are just stuck, trapped by their own technologies.

These are tools and techniques that are at least 10 years old â&#x20AC;&#x201C; locate, buzz, disable the starter. The sunk costs are just too high, making it impossible for them to innovate now.

Itâ&#x20AC;&#x2122;s how they have always done it and how they will continue to do it.

Skypatrol, has discovered the key to harnessing GPS technology for automobile dealers and subprime lenders is GPS software and attendant tools.

Skypatrol thrives on innovation coupled with reliability, and announces new innovative solutions every few months, all available to their Defender 2.0 customers.

When Skypatrol introduced its award-winning Defender 2.0 platform, voted the #1

vertical software platform at the 2014 M2M Evolution Conference, it was clear to all that the bar had been raised.

Defender 2.0â&#x20AC;&#x2122;s payment reminder is not an irritating buzzer or disabled starter.

Those are old school techniques that often served to drive an adversarial

stay in touch with borrowers. â&#x20AC;&#x153;With the Defender 2.0 Platform, our customers can maintain tight controls over their portfolio,â&#x20AC;? said Peters. â&#x20AC;&#x153;The results speak for themselves; customers that implement our entire Defender 2.0 platform have experienced improved portfolio perfor-

school verification methods,â&#x20AC;? said Peters. â&#x20AC;&#x153;It was a natural progression for us.â&#x20AC;?

DVT makes it easy for users to verify employment and residence, along with a comprehensive view of the borrower.

This capability comes from

wedge between borrowers and lenders. â&#x20AC;&#x153;Most consumers want to do the right thing,â&#x20AC;? said Mark Peters, senior vice president of sales at Skypatrol. â&#x20AC;&#x153;They often just need a little help building habits that keep them in good stead with the car dealers and lenders.â&#x20AC;?

With the Skypatrol Defender 2.0 Platform lenders can send real payment remindersvia email or SMS/text.

Almost everyone has a smart phone, and text messaging is a natural way for lenders to

mance as well as increased cash flows and a reduction in delinquency.â&#x20AC;?

Skypatrol has recently upped the ante again by introducing a Data Verification Tool (DVT).

This new capability comes with the Defender 2.0 platform, giving users an advantage when it comes to making a lending decision. â&#x20AC;&#x153;Moving up-stream in the loan origination process, by providing valuable verification data, means fewer dealers have to rely on old-

scouring millions of public records and social media networks for the Defender 2.0 users.

DVT gives Defender 2.0 users instant access to important data, so that better funding decisions can be made. â&#x20AC;&#x153;We worked very closely with our customers to design these DVT reports and capabilities. â&#x20AC;&#x153;We invested many hours to understand the needs and requirements of independent auto dealers and

vehicle lenders.

Then, with the help of the best data compilers in the world, our development team built and designed this comprehensive and reliable data verification tool.

Defender 2.0 users will have a way to quickly and inexpensively verify key information and put together a comprehensive risk assessment of prospective buyers or existing borrowers,â&#x20AC;? said Robert Rubin, Skypatrol CEO. Skypatrol is quickly becoming a formidable force in the GPS industry with unequalled tools and capabilities, combined with coverage provided by their comprehensive wireless carrier network anchored by CDMA capabilities through a partnership with Verizon.

For more information on how Defender 2.0 can improve your vehicle management protocol and help increase profitability, please visit www. skypatrol.com/defender.

To s c h e d u l e y o u r product demonstration, contact us today by phone at 800.369.5007 or email sales@skypatrol.com

The only finance company you canâ&#x20AC;&#x2122;t afford to live without! §

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â&#x20AC;&#x153;I opened my business in 1998 with about 15 different lenders and selling around 30 cars a month. In 2004 most of the lenders dried up and so did my volume and cash flow. My first Portfolio Profit Express check was $47,000.

Credit Acceptance not only saved my dealership, itâ&#x20AC;&#x2122;s allowed me to increase my sales. The program has been life-changing for me and my customers.â&#x20AC;?

Joe Kaisk

Magic City Motorcars (OH)

& & | 800.873.0512 | creditacceptance.com

22_UCN.indd 1

10/23/14 1:31 PM

DEFENDER 2.0

Copyright © 2014 Skypatrol, LLC. All Rights Reserved

ISN’T IT TIME YOU HAD A GPS HERO?

Best Vertical Platform M2M Evolution Conference Battle of the Platforms

Mitigate Loss l Boost Portfolio Performance š ,QWURGXFLQJ '97 'DWD 9HULıFDWLRQ 7RRO TXLFNO\ YHULI\ FXVWRPHU GDWD WR PDNH EHWWHU OHQGLQJ GHFLVLRQV š 1HZ ,QVWDOO $SS TXLFNO\ VFDQ LPSRUWDQW GDWD DQG FRQıUP HYHU\ *36 LQVWDOODWLRQ ZLWK D ıHOG WHVW š 2QH FOLFN SDWHQW SHQGLQJ VHFXUH UHSR PRGH POWERED BY

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23_UCN.indd 1

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Partner Program-Member

800.369.5007

|

www.skypatrol.com/defender

10/23/14 11:31 AM

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GPS Devices Benefit Consumers Too There has been a lot of media attention around the use of GPS and automated collection technology devices lately. Much of it has revolved around negative impacts to the consumer – it makes a compelling story.

While newspaper reporters or TV broadcasters may not be interested in the ways GPS and collection technology devices actually benefit the consumer, PassTime is interested in telling that side of the story.

First, GPS and collection technology devices are designed to mitigate risk.

Risk – meaning a consumer who is considered a credit risk is asking for a loan.

Traditional ways of mitigating this risk were to either accept the loan and charge a high interest rate, or to flat-out deny the loan application entirely.

Without devices like those PassTime provides, many high risk consumers may not have been approved for a loan at all.

And without a loan, that consumer would likely be without a vehicle.

Consumers may be able to take advantage of other benefits as well.

Because the device has helped mitigate the risk of the loan, the consumer may be able to purchase a higher value vehicle.

They may be able to put less money down when they buy their vehicle, and may even be able to get a better interest rate than they would have without the device.

Because the device helps remind consumers of their payment coming due, it could help them build a positive payment history in regard to their vehicle loan.

The use of a PassTime device is completely voluntary. While it may be a requirement of a certain dealership or finance company, consumers are provided information about the device in a written disclosure.

If the consumer does not wish to purchase a vehicle with a device included, they can choose not to.

In many instances, the consumer does in fact choose the benefits of the device and its ability to help them buy the vehicle they need.

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GWC Warranty Introduces Elite Dealer Program GWC Warranty is committed to helping dealers sell more cars by offering a “No Worries, Just Drive” experience through outstanding service and expansive coverage options.

Recently, GWC launched a new Elite Dealer Program that is built to offer top dealers access to even more exciting benefits.

“GWC has always been committed to providing unparalleled service and support to our dealer partners,” said Rob Glander, President and CEO of GWC Warranty. “The Elite Dealer Program demonstrates our appreciation to GWC’s top dealers and rewards them for their loyalty.”

Elite dealers have access to an expedited claims adjudication process with even faster service from GWC’s most experienced adjusters. “We appreciate the importance of claims service and are proud of the level of service we provide to all of our dealers and their customers each day,” explained Kate Eltringham, Director of Marketing for GWC. “We’ve elevated our already high level of claims service for Elite dealers to make it faster than ever, so that they can get back to selling cars.” Online claims service has also been added as an option for Elite dealers.

Another benefit is access to

discounted rates on GWC’s new Certified Pre-Owned Program.

“Our promise to dealers is that we help them sell more cars by giving car shoppers the confidence to become car buyers,” said Eltringham.

“GWC’s Certified Program is built to deliver on that promise and only Elite dealers have access to the most competitive rates.”

GWC’s Elite dealers can earn underwriting profits, receiving accelerated payouts from the company’s Dividend Program.

“We’re very excited about our new WealthBuilder Program,” she said. “It offers Elite dealers the ability to earn up to 100% of underwriting profits on an as earned basis. It’s an alternative to reinsurance without the risk and headaches.”

Richer incentive programs including dealer trips, and exclusive point of sale materials such as floor mats and banners, are other benefits for GWC Elite dealers.

GWC also announced that any new dealer who signs with the company will receive free access to these exclusive benefits for a limited time.

For more information about the GWC Elite Dealer Program, visit http://www.GWCwarranty.com/BeElite or contact GWC Warranty at 1-800-482-7357 x767.

GWC WARRANTY ELITE DEALERS GET A GREEN LIGHT TO EXCLUSIVE BENEFITS

GWC Warranty offers Elite Dealers an exclusive No Worries, Just Drive experience with access to exciting benefits:

800·482·7357 x767 | GWCwarranty.com/BeElite

3 Faster processing with our Concierge Claims Service 3 Special Elite pricing on GWC’s Certified Program 3 Faster access to underwriting profits, exclusive point of sale materials, richer incentive programs and more!

Find out how partnering with GWC can give you a green light to Elite!

24_UCN.indd 1

MOTOR TREND® Magazine is a registered trademark of SOURCE INTERLINK MEDIA, LLC. All Rights Reserved.

10/27/14 5:04 PM

USED CAR NEWS

Special Advertising SectionÛ

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Get your Floorplan in Place Before Tax Season

By Jonathan Neubauer President & CEO Vehicle Acceptance Corporation Vehicle acquisition costs are seasonal in nature. Prices will soon be at the lowest levels of the year. This is the time to buy.

Dealers are in a position to take advantage of a floorplan line of credit. Go after the good deals at the right time of year, and capture higher than usual profit.

With a VAC Floorplan, you can buy cars at any local or online auction or from other dealers and individuals and put it on the floorplan.

Since 1989 Vehicle Acceptance has been a one-stop shop for dealer’s financing needs.

Inventory financing, note servicing and receivable factoring are valuable tools to manage cash flow and get more cars on your lot.

VAC is flexible and strives to earn your business with competitive pricing, pleasant service and no curtailments.

There is still time to benefit from this year’s tax selling season. Visit VACorp.com/SignUp or call 1-888-571-7092 for more information.

Missed Payments: When GPS Is Not Enough While GPS is the newest, sexiest technology, it is not foolproof.

Unfortunately, you can still lose cars with it. So what’s a dealer to do?

First, understand that GPS is a “reactive” answer to the problem after things are already out of control.

Now you have to say, “We’ve had enough. Go get the car.” Obviously, most dealers would rather get paid than go through a repo.

Second, consider using a twopronged approach that adds a proactive component to the reactive GPS component. Add our PT2000 as a proactive behavior-modification device that encourages your customers to pay

as agreed.

The PT2000 can be used as an “active decoy” (ask us). Mounted right there on the dashboard, it is a visible daily reminder to your customers that they must make their payment by the due date. Having a PT2000 is like having your own proactive collector in each and every car so that you can modify bad behavior before an account becomes delinquent. Contact PayTeck at 1-800-880-3081 or www.payteck.com

Industry Professionals Provide Capital and Customer Service All dealers know that the biggest hurdle to entry into the buyhere, pay-here industry is the need for Capital.

Whether for the purchase of inventory, the financing of customers, or for operational cash flow, capital is number one on every dealer’s list.

Access to capital remains difficult for the buy-here, pay-here industry.

CAR Financial Services continues to support dealers’ short and long term capital needs using a comprehensive suite of services designed to support buyhere, pay-here dealers through the infusion of capital.

Whether you are new to the buy-here, pay-here business or you are looking to expand your current operations, CAR Financial Services can design a program to meet your needs.

These programs include: ƀɟ Bulk purchasing of both retail or lease receivables ƀɟ Purchasing of payment streams to meet short term cash needs ƀɟ Servicing of portfolios for dealers and finance companies ƀɟ Floorplans for the buy-

25_UCN.indd 1

here, pay-here industry, including a seamless floorplan to retail program ƀɟ Point of sale options for buy-here, pay-here dealers using CAR’s capital to establish your portfolio CAR Financial has a proven track record of over 25 years in the auto finance industry.

They can help you survive these difficult economic times by customizing a program that meets your needs through a single point of contact near your dealership.

CAR Financial strives to understand your day-to-day business.

Whether purchasing a stream of payments, all or part of your accounts outright, or simply servicing your buy-here, pay-here portfolio, the trusted professionals at CAR Financial will work with you.

CAR Financial operates in 45 states and is continually evolving its programs to meet the ever changing needs of the buy-here, pay-here market.

Interested in more information on CAR Financial Services’ programs and services?

Go to www.carfinancial.com or call 877-570-8857.

10/23/14 1:30 PM

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ECE Platform Offers Dealers 1300 Lenders!

Go Financial Offers Best of Both Worlds

E-Credit Express, Inc. (ECE) is the first and only retail installment sales contract software platform allowed to be used in the marketplace by the United States Patent and Trademark Office.

The platform lets dealers underwrite their own credit sale transactions based on consistent underwriting guidelines from their lender. They can subsequently be granted access to up to 1300 different lenders seeking to purchase existing credit sales within the ECE platform.

The E-Credit Express platform has many benefits including: ƀɟ OFAC, red flag and antimoney laundering protection. ƀɟ The ECE short form credit application pre-screens and accepts online applications from customers and identifies the requirement for a co-applicant. ƀɟ The platform automatically scores credit and instantly structures all deals to match lender guidelines, allowing the dealer to be consistent in charges such as rate and mark up on ancillary products. This also helps the dealer to avoid the appearance of disparaging lending practices.

GO Financial has created a unique subprime lending program that gives dealers the best of both worlds: up-front profit at the time the car is sold and a share of the payment stream over the life of the loan.

Over a third of today’s car buyers have subprime credit. Dealers can easily pick up incremental sales each month with the right opportunities to offer those customers.

By handling every step of the financing process from underwriting through collections, GO Dealer Partners have the ability to build a subprime portfolio without the headaches and heavy capital requirements that often stand in their way.

To succeed at subprime finance, you have to be able to understand and predict risk, and know when to balance it with reward.

Our GO Portal helps with that balance through our proprietary grading model which automatically updates terms and advance rates as the dealer adjusts term, price, APR and down payment to best meet their customer’s needs and meet the dealership’s profit goals.

After receiving the initial advance, each dealer’s loans are pooled together to create a unique portfolio, which GO services at

ƀɟ

With numerous CFPB builtin compliance tools, the platform can pull multiple credit reports. ƀɟ When applicable, it provides merged vehicle evaluation reports and incorporates all dealer specific ancillary products. ƀɟ ECE’s platform provides a built-in E-signature – no electronic pen pad needed!

The secure E-Vault holds original documents for lender requirements. ƀɟ No overnight fees where electronic contracting is allowed by the lender, with built in contracting forms for 51 jurisdictions that are insured for regulatory compliance, real-time compliance, and officer and audit reports that protect customer privacy. ƀɟ Dealers can easily fax or scan additional documents or lender stipulations to be instantly inserted into the funding package.

The ECE platform allows more opportunities for dealers to obtain financing, the ability to access more lenders, and identifies and protects lending policies consistently throughout the industry.

their national call centers.

As those loans are serviced, dealers receive a share of the payment stream from their pool as the payments are collected.

To provide flexibility with those pools, dealers have the option to tap into completed pools’ equity early through GO’s exclusive Cash Out Now option. This offers instant liquidity and peace of mind.

With a financing program that can approve all customers in an easy to use online portal, GO is creating a pathway to selling more cars.

GO Financial is licensed in 45 states and actively enrolling franchise and independent dealers.

GO has no sign-up fees and all loans are non-recourse. For a portal demonstration or for employment opportunities, contact us at 888-GO-Financial (888-463-4626) or visit us at www.gofinancial.com.

Over 1,300 Lenders Now Available! t OFAC, Red Flag and Anti-Money Laundering Protection t Easy short form credit application t Pre-screens applicant and automatically scores credit t CFPB compliance tools built-in t Structures all applications within Lender Guidelines t Incorporates Dealers ancillary products t Complete E-Signature packages with E-Vault t E-Funding Packages t No overnight Dealer fees

Fully Patented Call 855.525.8555 or visit us online at www.ecreditexpress.com

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10/27/14 3:06 PM

TAX SEASON WILL BE HERE BEFORE YOU KNOW IT

BUY NOW

SAVE LATER! As the holiday season approaches, NextGear Capital wants to remind you that THIS is the time to stock up and save!

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*All rights reserved. For complete details, terms and conditions, please see your local NextGear Capital representative. All advances are subject to the terms and conditions of any contract you have with NextGear Capital. NextGear Capital reserves the right to modify or terminate its terms and programs, at any time. All advances made in California by NextGear Capital are made pursuant to NextGear Capitalâ&#x20AC;&#x2122;s California Finance Lender License.

Inventory Finance Solutions. Simplified. nextgearcapital.com

855.372.2329

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10/23/14 11:40 AM

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New Technology Helps Control Costs It’s on everyone’s lips nowadays: 2G network is going to phase out as carriers are planning to sunset this technology for the benefit of 3G. This means that once the 2G shut down is fully completed, any 2G GPS devices will cease to function. To make a smooth transition from 2G to 3G, BHPH dealerships must start to plan today.

IMETRIK is here to help!

The good news is we now have an estimation of when carriers will sunset their 2G network: 2017 for AT&T, 2019 for T-Mobile, 2020 for Sprint and 2021 for Verizon.

Each generation of cellular evolution means enhancements and increased benefits. In fact, 3G technology is optimized for data transmission, which provides a higher network reliability and increased speed of data transmission.

Since 3G devices are compatible with 2G networks, there is no coverage downside if you switch today. Also, no GPS Provider can guarantee the longevity of its 3G devices, but historically

a cellular generation lasts between 10 to 15 years. However, it’s the carriers who decides when they sunset a network generation, just like it is happening now with 2G and in 2008 with Analog cellular network launched in 1983.

IMETRIK: Leading the industry in 3.5G Technology We, at IMETRIK, are proud to offer 3.5G units to our customers. Our devices use the HSPA standard of the GSM technology. By acquiring the IMETRIK 3.5G devices today, you will have the tools to better control your costs and expenses moving forward.

What is 3.5G? The acronym 3.5G, also known as “beyond 3G”, improves the performance of 3G. Completely based on HSPA (High Speed Packet Access), 3.5G is also faster than 3G, which means higher data-transfer speeds and capacity.

For more information, contact us at info@imetrik.com/866-276-5382 (ext. 5)

IMETRIK GPS SOLUTIONS

A GLOBAL LEADER IN ASSET MANAGEMENT AND PAYMENT ASSURANCE TECHNOLOGY Leading the Industry with 3.5G Technology No Renewal Fees

1-866-276-5382 imetrik.com

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10/24/14 3:58 PM

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GPS Tracking a Win-Win for Dealers and Their Customers Thanks to the instability of the current economy, many consumers have taken a hit to their credit scores. Unfortunately, a considerable number of people are losing their jobs, making them unable to make payments. This sometimes creates a catch-22 where individuals are unable to obtain cars or other items they need to pursue new work.

Whatever the reason for low scores, these applicants present a problem for auto dealers and finance companies. Buy-here, pay-hereâ&#x20AC;&#x2122;s goal is to put customers in a vehicle, but in these situations the dealer assumes all the risk. Charging higher interest rates accomplishes nothing if the customer ends up defaulting on the loan. Buy-here, payhere dealers end up incurring significant costs attempting to repossess the vehicle. If thatâ&#x20AC;&#x2122;s not possible, they end up with a total loss.

A reliable solution to reduce buy-here, pay-here exposure on these high-risk loans is a GPS tracking management system that provides a suite of advanced tools and metrics to help assure payments from customers

and mitigate risk. GPS tracking results in a win-win situation for the both the dealer and their customers.

Here are five ways the proper GPS system will streamline asset management and increase profitability for buy-here, pay-here dealers: 1. It can provide customized alerts for instant notification of an issue with any of your vehicles.

2. They can cut down on repossession time.

3. You will receive reports such as â&#x20AC;&#x153;Non-Reporting Unitsâ&#x20AC;? and â&#x20AC;&#x153;Vehicle Abandonment.â&#x20AC;?

4. Effective data security keeps information from falling into the wrong hands, giving you complete confidence in accuracy.

5. Customers benefit from having a way to retrieve their vehicle if it is stolen.

Buy-here, pay-here dealers and vehicle finance companies are seeing increased profits when they choose PositionPlusGPS.com for their cutting edge technology, robust and real-time GPS tracking solution.

To schedule an informative demo go to PositionPlusGPS.com or call toll free (844) 477-7587.

Egn]eZ]jĂ&#x203A;Â&#x20AC;Â&#x2022;Ă&#x203A; Â&#x2021;~Â Ă&#x203A;Ă&#x203A;Ă?Ă&#x203A;Ă&#x203A; Â&#x2020;

Used Car Leasing Trumps BHPH for Profits!

For the first time since Used Car Leasing was invented almost 25 years ago, a side by side comparison was performed showing the profit difference compared to BuyHere, Pay-Here. Not surprising, considering the tax implications of Buy-Here, Pay-Here, the results were clearly in favor of Used Car Leasing.

The analysis was performed

by Northland Auto Enterprises, Inc., the original founder of Renâ&#x20AC;&#x2122;Tâ&#x20AC;&#x2122;OwnÂŽ and Leaseâ&#x20AC;&#x2122;Tâ&#x20AC;&#x2122;OwnÂŽ using national averages as published by NABD-NCM Associates.

The comparison was conservative figuring 10 deals per month for 12 months and used the time frame of January thru December. The results were undeniably in favor of Leaseâ&#x20AC;&#x2122;Tâ&#x20AC;&#x2122;OwnÂŽ.

A few things to point out in the comparison: Ć&#x20AC;É&#x; #."É&#x; /3Ć? , ĹťÉ&#x; 3Ć? , É&#x; 3)/É&#x; pay taxes on the entire contract .É&#x; ." É&#x; ( É&#x; ) É&#x; ." É&#x; ĹŚ,-.É&#x; 3 ,ĹşÉ&#x; #."É&#x; Leaseâ&#x20AC;&#x2122;Tâ&#x20AC;&#x2122;OwnÂŽ you are paying Federal and State income taxes only on the payments received. The net profit difference is primarily due to Leaseâ&#x20AC;&#x2122;Tâ&#x20AC;&#x2122;OwnÂŽâ&#x20AC;&#x2122;s tax advantages. Ć&#x20AC;É&#x; .É&#x;." É&#x; ( É&#x;) É&#x;." É&#x; ,É&#x;ŹŝÉ&#x;." É&#x; /3Ć?

Here, Pay-Here model only profits $55,920 which isnâ&#x20AC;&#x2122;t much to buy cars for the next year compared to Leaseâ&#x20AC;&#x2122;Tâ&#x20AC;&#x2122;OwnÂŽâ&#x20AC;&#x2122;s profit of $224,090. Ć&#x20AC;É&#x; " É&#x; .É&#x; ,)ĹŚ.É&#x; ĹŚ!/, É&#x; #-É&#x; ), É&#x; deducting the cost of Bankruptcies and Repossessions. For Buy-Here,

Pay-Here, the national default , . É&#x; #-É&#x; -&#!".&3É&#x; )0 ,É&#x; ųŰƞźÉ&#x; #."É&#x; Leaseâ&#x20AC;&#x2122;Tâ&#x20AC;&#x2122;OwnÂŽ there are no repossessions since the dealer remains the titled owner of the vehicle.

There are also Federal Statute protections to prevent leased cars from being included in bankruptcies. Therefore, the Net Profit shown for Leaseâ&#x20AC;&#x2122;Tâ&#x20AC;&#x2122;OwnÂŽ reflects an accurate amount.

This was a very interesting and eye-opening comparison. Contact Northland Auto Enterprises, Inc. at 800-879-3433 to review the analysis in detail. They will also customize the analysis using your specific stateâ&#x20AC;&#x2122;s tax rates rather than an average.

Real Time Location - 100X More Data - Continous Updates

Better. Faster. Smarter.

TM

Specializing in GPS Tracking for

Buy Here Pay Here and Vehicle Finance.

The PositionPlus DiďŹ&#x20AC;erence One Second Locate (no spinning) Address VeriďŹ cation Impound NotiďŹ cation Non Reporting Units NotiďŹ cation Frequent Stops Report

Vehicle Abandonment Alert

Schedule Reports

GPS.com/UCN Schedule a FREE Demo Today... Toll Free (844) 477-7587

29_UCN.indd 1

10/23/14 3:22 PM

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Regulatory Issues Remain in the Spotlight The Consumer Financial Protection Bureau’s (CFPB) increased regulation of auto dealers and lenders has been one of the major storylines this year.

Recently, the CFPB held a field hearing in Indianapolis to discuss the state of the auto financing industry.

Held on the campus of Indiana University Purdue University Indianapolis, this hearing consisted of remarks from CFPB Director Richard Cordray, a panel discussion from various experts in the world of finance and testimony from consumer and civil rights groups.

Here are three key takeaways from the event: 1) Extension of oversight to captive lenders.

In his opening remarks, Cordray announced a proposal for CFPB’s reach to extend to larger nonbank auto lenders, which includes captive lenders.

According to Cordray, nonbank auto finance companies

have never been subject to any supervision at the federal level, despite lending hundreds of billions in credit to consumers.

“It should not matter whether you get a loan or lease from a company that has a banking charter versus one that does not – every auto lender should be following

Prior to the hearing, the CFPB released a new Supervisory Highlight report, in which the agency describes its fair lending supervisory activity in the indirect automobile lending market.

Within this report, the CFPB proposes several methods which dealers and lenders can undertake to help them

sion, concern was voiced over the CFPB’s recommendation to switch to a flat fee model to mitigate the risk of discrimination due to marked up buy rates.

The panel raised the issue that this one model does not consider the economic impact of altering the auto finance market, as switching to flat

the law and be subject to remain compliant and avoid the same level of oversight,” discrimination. he said.

These methods include: “This expansion of cover- ƀɟ Increase internal moniage is important to protect toring consumers, but it also will ƀɟ Eliminate dealer discreremove a distortion in the tion to markup interest marketplace and is a matter rates by switching to a of simple fairness to competiflat fee model tors who should play by the ƀɟ Develop and implement same rules in the same way.” more intensive compli2) Questions raised over ance management systems CFPB’s recommendations.

During the panel discus-

fees would increase the cost of credit for consumers and doesn’t solve the discrimination problem.

3) Transparency and education are vital for consumers.

Educating consumers and being more transparent was another hot topic during the panel discussion.

Because the car buying experience can be a lengthy and taxing process, with long

and complicated disclosures, many consumers don’t know what they’re getting into when they purchase a car.

While organizations such as the NADA have created publications for consumers promoting financial literacy, the CFPB would like to see dealers and lenders do a better job themselves of simplifying the process for the consumer.

The event was met with positive feedback from those in attendance and it’s apparent that many organizations within and outside the auto industry are supportive of the CFPB’s efforts to curb discrimination and bad lending practices.

While it remains to be seen what the end result will be from this proposed extension to regulate nonbank auto lenders, it is clear that dealers and lenders need to have their ducks in a row to ensure that all consumers are being treated equally and fairly.

THE GRASS REALLY IS GREENER!

THE HEAD HEAD--TO TO--HEAD PROFIT COMPARISON PROVES IT! MORE PROFITS Substantial Tax Savings

GET YOUR COPY OF THIS GROUNDBREAKING REPORT!

Increased Customer Loyalty No Repossessions Bankruptcy Protection Delinquency Leverage

30_UCN.indd 1

10/23/14 4:30 PM

WE PROVIDE YOU

MORE. MORE INVENTORY

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manheim.com | 866 Manheim Physical Auctions | Digital Auctions | Specialty Auctions | Salvage Auctions Floor Plan Financing | Reconditioning | Inspections | MMR

©2014 Manheim, Inc. All rights reserved. Manheim BUY. SELL. WIN. and the M logo are trademarks of Manheim, Inc.

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10/23/14 11:31 AM

260-B-BBU-Ad-9x13-UsedCarNews-BckCvr.pdf

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4:02 PM

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PROMO CODE 11803

10/23/14 12:46 PM