November 4, 2013
ON THE WEB: Enterprise Car Sales Airs First TV Spots
CR Ranks Toyota’s Brands Most Reliable
Enterprise Car Sales, a service of Enterprise Rent-A-Car, has debuted its first-ever television commercial as part of a broader campaign highlighting the Enterprise brand as a total transportation solution. The commercial focuses on the ease of a negotiation-free used car-buying experience, a strategy Enterprise pioneered in 1962. A preview of the spot is available on the Enterprise YouTube channel.
Consumers Start to Default on Loans
Data through September, released by S&P Dow Jones Indices and Experian for the S&P/ Experian Consumer Credit Default Indices, showed an overall increase in national default rates during the month. The national composite was 1.38 percent in September, slightly up from 1.34 percent posted in August. The auto loan default rate reported 1.15 percent in September, up from a 1.11 percent previous month level.
LEADER OF THE PACK: The redesigned Suburu Forester tops the annual Consumer Reports list of most reliable vehicles. At the other end of the spectrum, Ford saw its reliability scores plummet. By Ed Fitzgerald
GMC made a promising leap into the Top 10 of Consumer Reports’ annual reliability survey, as Ford posted its second straight poor showing. The magazine’s 2013 rankings were released Oct. 28 to the Automotive Press
Association in Detroit. The survey results managed to put a small dent in the Japanese automakers’ usual dominance, with GMC, Audi and Volvo all taking Top 10 spots. However, the top three spots went to Lexus, Toyota and Acura, respectively. The top predicted reli-
ability score went to the redesigned 2014 Suburu Forester. Jake Fisher, an engineer and tester for Consumer Reports, reminded the journalists in Detroit how the magazine conducts its survey. The data is collected from CR subscribers’ experi-
ences with over 1.1 million vehicles. Obviously CR subscribers might be more critical. Fisher said drivers’ various complaints are viewed accordingly. “It’s not all about ‘we don’t like the cup holders,’’’ he said. Continued on page 12
Rush - Dated Material
Sonic Plans National Chain of Used Car Stores Sonic Automotive seeks to succeed where others have failed – launching a nationwide used-car chain. While CarMax Inc. has thrived in recent years, AutoNation shuttered all its used-car superstores at the start of the 2000s. Attempts by Asbury and Lithia both ended almost before they began. Even CarMax overcame a shaky start. “They have a very high fence to climb,” said George Hoffer, an economics professor at the University of Richmond. Still, Sonic executives are confident their plan will succeed. “We have been preparing for this moment over the last
several years and are excited to be in a position to share our plans,” said Scott Smith, Sonic’s president and co-founder. “In particular, we are confident that our new model will not only enhance the value of the business for our stockholders and associates, but it will deliver an experience not yet seen in retail automotive.” The first target market is planned for Denver and will open in late 2014. Hoffer said while the fate of Sonic’s efforts remain yet to be seen, it should mean increased competition for CarMax. “CarMax has been fortunate to have an open highway for so long,” he said.
Imagine controlling your used car inventory from anywhere. With the SmartAuction® mobile app, you can. ©2013 Ally Financial. All rights reserved. SmartAuction is a registered service mark of Ally Financial Inc.
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10/28/13 9:56 AM
10/28/13 12:59 PM
November 4, 2013ÛÛÝÛÛ
USED CAR NEWS
Auctioneer Achieves Dream, Opens Independent Sale By Jeffrey Bellant
A career auctioneer has opened a new independent auto auction in his hometown of Bloomsburg, Pa. John Vance, who has auctioneered for 25 years, opened the Bloomsburg Auto Auction in August. Starting an auction has been Vance’s lifelong ambition. “Since I was in college, it was something I always wanted to do,” Vance said. “You do those business plans in college and that’s what I always wanted: to start an auto auction.” Vance, 44, has worked at auctions owned by Manheim, ADESA and ADT, along with some independents. He started out at SWADE Auto Auction in Scranton, Pa., and went on to work at, among others, ADESA Long Island in New York, Manheim New York Metro Skyline in New Jersey and Orangeville Auto Auction in Pennsylvania. For a while, Vance was content to be an auctioneer, waiting for the right time in
start his own sale. “As an auctioneer, I got to spend a lot of time with my family,” Vance said. “Now my kids (have grown up).” After an initial effort to buy a site fell through, Vance discovered a vacant trucking terminal in Bloomsburg – a mile and a half off Interstate 80 – and realized he found his site. “It had three bays and it had a lot of asphalt, so it turned out to be a prime (facility) for a small auction,” Vance said. The third bay is being used to wash cars, but can be opened as another lane in the future. The site has eight acres that are developed and seven acres that are still undeveloped. Like any independent sale, it’s been a challenge starting out. “Dealers have a routine, going place to place,” Vance said. “So getting them to break their routine to come to this new auction has been the hardest thing.” The other challenge is that in recent years, the bulk of
Photo Courtesy of Bloomsburg Auto Auction STARTING BLOCK: A Corvette hits the block at the recently opened Bloomsburg Auto Auction in Pennsylvania. The sale was started by longtime auctioneer John Vance.
Vance’s auctioneering has been in New York and New Jersey, so he’s not as familiar with nearby dealers. He said it’s just a matter of knocking on doors, meeting dealers and telling them about the sale. “The other thing is, you have to get cars to draw dealers, but you have to draw dealers to get the cars,” Vance said. “It’s a tricky
thing, if you have too many cars, then the sellers won’t come back and if you have too few cars then the buyers don’t want to come back.” The auction opened its first sale with 60 cars and a recent sale had 50 units. September was a rough month, but business improved in October, Vance said. The auction is drawing 30 to 40 dealers in the lanes
each week. But Vance isn’t alone. His auction is a family affair. “My father, Jim, is the auctioneer and my wife, Heather, runs the office,” Vance said. “My mother, Ruth, takes payments in the office. The rest of the staff is made up of family friends and other people that I have known. I haven’t had to place an ad in the paper.”
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10/28/13 2:58 PM
Â Ă›Ă›Ă?Ă›Ă›Ă›November 4, 2013
USED CAR NEWS
NEWS BRIEFS DriveItNow Offers Trade-In Tool
DriveItNow announced its new Trade-in Equity Analyzer is now available as part of its pre-qualified payment quoting service. DriveItNowâ€™s Trade-in Equity Analyzer lets the dealer and consumer easily see their trade-in value and the effect it will have on their new payment. This information is critical in giving them a more realistic view of the vehicles they can afford to purchase.
BBB Warns About Online Dealer
or failure to return a $500 deposit as promised. CDO typically responds by stating the consumer purchased the vehicle â€œAs Isâ€? with no warranty. CDO also has buyers sign an acknowledgement that they had â€œan adequate and full opportunity to inspect the vehicle and to have a third party or mechanic of [his] choice make the inspection.â€? The business has an â€œFâ€? rating at BBB due to the volume of complaints, failure to respond to or resolve some complaints, and failure to eliminate the causes of complaints.
The Greater Cleveland Better Business Bureau is warning consumers about an online dealer that Cars.com Improves Reviews Digital Air Strike announced a new is generating numerous complaints. partnership with Cars.com. Dozens of consumers have filed Digital Air Strike a direct customcomplaints with BBB about Cars Dier survey integration process that rect Online (CDO). CDO is located in Cleveland, but allows car buyers and service cussells vehicles nationwide at au- tomers to turn their dealership surtosdirectonline.com. Its website vey feedback into a Dealer Review claims, â€œYou will also find ... an ac- on Cars.com, all without leaving the curate, forthright representation Digital Air Strike survey environof that particular vehicle in our de- ment. This integration is available excluscriptions, including any defects or flaws.â€? In the past 36 months, BBB has reC R O S S WO R D by Myles Mellor ceived nearly 90 complaints, many citing issues with damage and rust PAGE 17 that was not depicted in photos of the vehicle posted online. Carolinatax-UCN oct7.pdf 10/25/13 8:48 AM Consumers also report repair1 issues surfacing soon after purchase
sively through Digital Air Strikeâ€™s newly released Review Surge 3.0 product. This solution automatically generates a survey after a patron buys or services a vehicle at the dealership. The dealershipâ€™s DMS triggers a survey with the option of seamlessly leaving feedback on Cars.com within 24 hours of each customer transaction, thus making the reviews generated â€œverified customer reviewsâ€?. For dealerships, this new product will help increase the number and frequency of reviews on Cars. com, providing a more robust view of their overall sales and service experience.
DataScan Adds Floor Plan Tool
DataScan Technologies has partnered with business manager software provider Appian to release Wholesale Management System (WMS) 4.x software suite. The software allows DataScan clients to more utilize in-depth workflow and document management capabilities, including the ability to connect documents with various data and transactions. Other advancements include configurable dashboards and more robust workflow reporting tools, such as audit trails, task escalations, and analytics that track when tasks are assigned and completed.
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 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
Production: Josie Godlewski, Media Manager Tim Montie, Graphic Designer â€”â€”â€”
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.
10/28/13 2:56 PM
November 4, 2013 ÝÛÛ
USED CAR NEWS
Group Honors Former Auction Owner with Special Award By Jeffrey Bellant
Sam Lafata, an auto auction pioneer, received a special award for his lifelong support of a charity that helps underprivileged and at-risk youth. Life Directions, a Detroitbased charity helping disadvantaged youths, honored Lafata on its 40th anniversary with a new award named after him – the Sam Lafata Prestigious Award for Investing in Life Directions. The award, given during the group’s annual golf fundraiser, will bear his name going forward. Lafata said during the ceremony teenagers who had been helped by Life Directions came and spoke about how the program had changed their lives. “It was very moving,” he said. “It’s a great organization. I really appreciate the job it’s doing. You just have to help them. You can’t sit back. “But I’ve had a lot of fun.” Lafata was president of Aptco Auto Auction in Melvindale, Mich. He grew
the auction into one of the biggest in the nation before selling (it is now Manheim Detroit). He also served as president of the Michigan Independent Automobile Dealers Association, president of the Midwest Auto Auction Association and on the board of directors of the National Auto Auction Association. He has always been a strong supporter of charities like Life Directions. “Sam was actually the first donor to the group,” said the Rev. John Phelps, CEO of Life Directions, which has branches in Chicago, New Orleans, San Antonio, Salem, Ore., and Tucson, Ariz. Lafata said he had first met Phelps at the Detroit Athletic Club, where Phelps gave a lecture on helping young people who were struggling in school and in poverty. “He gave a heck of a speech and it really got to me,” Lafata said. “I introduced myself and gave him a donation.” Lafata helped Phelps find a site to host the organization’s first fundraiser. Lafata also started a series of bocce
Photo Courtesy of Life Directions SAM I AM: Former auction owner Sam Lafata, left, is shown with Manheim Detroit’s Joe Maltese at a previous Life Directions event. The non-profit group honored Lafata with a special award for his lifelong service.
tournament fundraisers and eventually launched the Life Directions Annual Golf Classic to raise money for the group. During one of the fundraisers, Lafata also coaxed Phelps to participate in a special fundraising effort. “He actually put me in a dunk tank,” Phelps said. Lafata admitted that he
was giving out dollars to get participants to dunk Phelps. Lafata, who was also involved in the Detroit boxing world, drew in boxer Thomas Hearns and trainer Emmanuel Steward of the famous Kronk Boxing team to promote Life Directions. Phelps said Lafata also helped in strategic ways. “He really gave me some
common-sense insights in how to invest in young people so that we can reach more of the them,” Phelps said. The purpose of Life Directions is to “find young people rooted in (good) values to inspire young people who are rootless,” Phelps said. “We’ve reached over 163,000 youths and young adults (in the Detroit area).”
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10/29/13 9:46 AM
ÛÝÛNovember 4, 2013
USED CAR NEWS
Toyota Faces First Court Setback for Acceleration OKLAHOMA CITY (AP) – Toyota Motor Corp. teached a settlement with the victims of a deadly 2007 car crash, a day after an Oklahoma Country jury became the first in the country to find the company liable in a case of sudden unintended acceleration. On Oct. 24, the jury awarded a total of $3 million in monetary damages to the injured driver of the 2005 Camry involved in the crash, and to the family of the passenger, who was killed. The ruling was significant because it was the first case where plaintiffs argued that a car’s electronics – in this case the software connected to the Camry’s electronic throttle-control system – caused the unintended acceleration. The Japanese automaker recalled millions of cars, starting in 2009, following claims of sudden acceleration in Toyota vehicles. It has denied that electronics played any role in the problem. The Japanese automaker had won all previous unintended acceleration cases that went to trial. Legal experts said the Oklahoma verdict might cause Toyota to consider a broad settlement of the remaining cases, but that the company is likely to fight
a few more cases before making that decision. Judge Patricia Parrish announced the parties had reached a deal that eliminated the need for the second stage of the trial over punitive damages. The terms of the settlement were not disclosed, but Toyota agreed not to appeal the jury’s decision, said Jere Beasley, an attorney for the plaintiffs. “You can rest assured they did not want to go to the punitive phase,’’ Beasley said. Toyota has blamed drivers, stuck accelerators or floor mats that trapped the gas pedal for the sudden unintended acceleration claims that led to the big recalls of Camrys and other vehicles. No recalls have been issued related to problems with the vehicle’s onboard electronics. In the Oklahoma case, Toyota attorneys theorized that the driver, Jean Bookout, mistakenly pumped the gas pedal instead of the brake when her Camry ran through an intersection near Eufaula and slammed into an embankment. Toyota said in a statement that it disagreed with the verdict, and vowed to “defend our products vigorously at trial in other legal venues.”
But Sean Kane, who heads a safety research company in Massachusetts, said the ruling in the Oklahoma case could influence how Toyota proceeds with the dozens of pending lawsuits that target the vehicle’s electronics. “It’s important that this case is only one of many we’ve examined in which you can point to nothing other than the electronics system in the car,” Kane said. “The problem for Toyota in this
case was there was a preponderance of evidence to show this wasn’t a driver error issue, and it clearly wasn’t a floor mat.” On Oct. 24, the jury awarded $1.5 million in monetary damages to Bookout, 82, and $1.5 million to the family of Barbara Schwarz, who died. Their attorneys maintained Toyota knew about the problems, but concealed that information from the public.
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PAGE 8 - FRANCHISE DEALERS
Franchise Dealers Face More Scrutiny, Less Protection DETROIT â€“ Franchise dealers face new regulations at the same time they face challenges to the traditional franchise system. Dave Wescott, chairman of the National Automobile Dealers Association, addressed these issues during a recent appearance at the Automotive Press Association in Detroit. Dealers had secured an exemption from the Consumer Finance Protection Bureau when it was created by the Dodd-Frank Act. But today they face pressure from the regulator through their finance sources on the issue of disparate impact. This could lead to elimination of dealer flexibility in financing and the move to a flat fee system. Wescott said this move could increase the cost of credit for millions of consumers. â€œWhen it comes to indirect lending, dealers are price discounters,â€? he said. â€œWe donâ€™t understand how
removing 17,546 price discounters from the marketplace is a good thing.â€? At the same time the federal government is looking at making business more difficult, states are considering taking away the protections of existing franchise laws. Electric manufacturer Tesla wants to bypass the traditional system and sell directly to the public. This creates a problem for the NADA beyond just Tesla if other manufacturers use the opportunity to create factory-owned stores. â€œIf manufacturers were allowed to squeeze out independent dealers, the competition we create will give way to a handful of national and international corporations controlling pricing in your local community â€“ because there will no longer be intra-brand competition,â€? Wescott said. He said the existing manufacturers understand the value of the current system,
Photo by Ted Craig MEET THE PRESS: NADA Chairman Dave Wescott fields questions from reporters at a recent Automotive Press Association event. Wescott presented the strengths of the franchise dealer system during his remarks.
laws, Wescott said most conbut a new, large entry, such to repairs. as one of the Chinese autoWhile some critics attack sumers are very happy with makers, might not. dealers and their franchise their local dealers. Wescott said the strength of franchise dealers comes from their customer focus in every area from financing
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Failure to Report Costs Store The largest volume used-car dealership in the state of Washington pleaded guilty and was sentenced for failure to file a monetary transaction report. Zein Automobiles Inc., doing business as Independence Auto Sales and Best Bet Auto Sales with locations in Lynnwood and Everett, forfeited $1.5 million to the United States, paid a $250,000 fine and entered into a corporate integrity agreement to ensure the illegal conduct does not happen again. The car dealership was the subject of searches by law enforcement in September. As part of the plea agreement the corporation admits that between January 2010 and September 2013, its employees and agents entered into cash sales of vehicles in excess of $10,000 and failed to report those sales to the IRS. In a search warrant affidavit describing the Drug Enforcement Administration led investigation, undercover officers and confidential sources repeatedly purchased vehicles for cash at the two dealerships. Posing as drug traffickers, the undercover agents told salespeople they did not want the cash
transactions reported. The undercover agents were very clear that they wanted the vehicles for drug trafficking purposes. The salespeople assured the agents that they were familiar and comfortable with such transactions and proposed various schemes that they said would avoid the cash transactions reporting requirements. Such schemes are illegal. Under the terms of the corporate integrity agreement, the company is required to keep a log and report every cash transaction in excess of $10,000. Both the sales managers and title clerks are required to ensure the reports are made to the IRS. During a two-year probationary period, the company is subject to unannounced audits to ensure such reports are being made. The company has also agreed to publicize its guilty plea, penalties, and compliance plan in formats to be approved by U.S. Probation. The case was investigated by the Drug Enforcement Administration (DEA), the Internal Revenue Service Criminal Investigation (IRS-CI), the Seattle Police Department and the King County Sheriff â€™s Office.
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November 4, 2013ÛÛÝÛÛ~~
USED CAR NEWS
Cop Turned Dealer Avoids Jail CINCINNATI (AP) – The owner of a used-car store avoided jail time and was sentenced to probation stemming from his connection to a marijuana smuggling operation. Bryon Roos, formerly an officer in a Cincinnati suburb, admitted to depositing money meant to avoid bank reporting requirements as part of the operation that involved at least 10 other men. In exchange for his guilty plea in February, prosecutors dropped more serious charges. Roos was sentenced to two and
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half years of probation, including six months of home confinement, and ordered to pay a $5 million fine. Other men charged in the scheme received sentences ranging from four to 14 years in prison. Federal authorities said the conspiracy began around June 2006, when another defendant began receiving shipments of marijuana hidden in the gas tanks of vehicles at a Cincinnati auto business. He and Roos would operate used-car businesses to launder drug proceeds.
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USED CAR NEWS
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“It’s about what is really broken. If you have problems with the clock it gets different weight than if you have problems with the engine.” Fisher said problems with the primary components of a vehicle – such as the powertrain – have continued to drop through the years. Nowadays, the major factor dragging down models is problems with infotainment systems – most notable is Ford’s SYNC system. He also pointed to a dual screen entertainment system on some Honda models. Fisher said these problems are not small and could worsen as the vehicles age. He said the resale values will be affected. “Automakers are not Samsung or Apple,” Fisher said. “They are stumbling with these navigation, audio and communication systems. Electronic problems are increasing.” Testers have found that it can become a safety factor when the infotainment systems fail drivers. Fisher said the magazine has taken “a deeper dive” into examining the complaints about these systems. “We re-contacted respondents. We wanted to know if they were confused by the systems, or if there are actual failures. The young drivers – the power users – are more likely to say the systems don’t work. “The older drivers might not even be using all parts of the system –
– Continued from page 1
they wouldn’t even know if those parts are broken.” Some of the most common complaints regarding touch-screens were that they froze up, had too long of a lag time or failed to recognize a voice command, cellphone or an MP3 device. Probably most surprising in CR’s announcements were the models the magazine is no longer recommending, such as the popular Toyota Camry. “It doesn’t necessarily mean there is anything wrong with these vehicles, it’s just that there are now more and more cars that are better (in their segment).” Some of the cars that CR no longer recommends are: Toyota RAV4, Prius V, Audi A4, Chevrolet Malibu Eco, Mazda 2, Kia Sportage, Mitsubishi Outlander Sport, Chevy Equinox, GMC Terrain, Nissan Juke, Nissan Rogue and Volkswagen Passat 2.5. The top 10 makes overall are, in this order: Lexus, Toyota, Acura, Audi, Mazda, Infiniti, Volvo, Honda, GMC and Suburu. The bottom 10, ranked 19th through 28th, are: Ram, Volkswagen, Hyundai, Nissan, Jeep, Dodge, Cadillac, Ford, Lincoln and bringing up the rear, Mini. Out of 31 Ford vehicles tested, only the Ford F-150 with the 3.7liter V6 was rated above average.
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PPG Industries released its annual automotive color trend data, which shows that white continues to be the most popular car color globally based on 2013 automotive build data. According to PPG’s global data, white ranked first (up 3 percent from last year to 25 percent) and silver and black tied for second (18 percent each). These were followed by gray, red, natural hues, blue and green, all of which maintained the same share of popularity as in 2012. In North America, white remains most popular (21 percent), followed by black (19 percent), gray (17 percent), and silver (15 percent). These were followed by red, blue, natural hues and green. Sport models are most likely to
feature shades of red and blue. The largest percentage of gold and beige vehicles is in the minivan segment. Luxury vehicles, 57 percent of which were gray in 2013, are most likely to feature effect finishes in black metallic and white pearl. Color varies most across sport utility vehicles, with relatively equal distributions finished in shades of white, black, blue, red and gray. Looking ahead, drivers may see more blue in 2014 models. PPG’s data has shown increases in the popularity of blue for certain regions and vehicle types, such as an increase in North America this year and more than double the popularity in sport models there between 2011 and 2013.
10/28/13 5:18 PM
November 4, 2013 ÝÛÛ~
USED CAR NEWS
RETAIL MARKETS INDIANA
Travis Huber, owner, The Auto Store, Portage, Ind.: “We’ve been in business about two-and-a-half years. We have two locations. They are about a half hour apart. One lot doesn’t have very many cars. It’s just an appointment-only store. I live in that area, so people who know me can just go to that store. The other lot is our main store. “We carry about 25 cars on our main lot. That’s about the same as this time last year. “We’ve switched (our inventory) more toward sport utility vehicles and pickups. I only have about 10 percent cars. The rest are split pretty evenly between the trucks and SUVs. That’s just the type of client we have. We have a lot of mill guys, guys who work at the factories and the mills. Typically, those guys want trucks and SUVs. “We’re selling about 22 per month. I’ve got a little higher-dollar inventory than I did last year. We’re
selling about the same number of units. “I get vehicles from local auctions. “It’s been challenging to get cars. I’m not one of those dealers who is getting a ton of cars each week. I’m just buying four or five cars a week and I go to a couple of different auctions. I’m pretty selective. “I don’t do any buy-here, pay-here. I’d say about 80 percent of our business is subprime. I work with companies like Credit Acceptance Corp. “(For model years), my sweet spot is between a 2005 and 2008. Mileage is typically between 80,000 and 120,000. “I’m carrying almost all domestic. “My average reconditioning cost about $500. That’s about the same as last year. The normal stuff I do is the check engine lights and tires. I don’t typically buy anything with body damage. I shy away from that. “I farm that work out. I’ve always done that. “Outside of our website, I’m not doing any market-
Compiled by Jeffrey Bellant ing or advertising. We’re located on a heavy-traffic corner. Plus, we took over an existing business. So the name has been around a bit. “We do a lot of business during tax season. For example, last February we sold 50 cars. “I recently sold a 2006 Ford Expedition. It had 101,000 miles. We sold that for $11,900.”
Robert Pippert, president and owner, Pippert Cars & Trucks, Gladbrooke, Iowa: “Although we’ve been out here since 1985. We used to sell semis, trucks and had a grain business. After Sept. 11, our insurance got (expensive). I always liked cars, so about eight years ago I switched it from Pippert Trucking and Grain Ltd., to Pippert Cars & Trucks. “So now we sell used cars, trucks and SUVs, along with some classics. “Right now, I’ve got about 32 to 34 (vehicles) in inventory. We buy some from local dealers. We also go
to Manheim Omaha, Manheim Kansas City and ADESA Des Moines. I also buy some off the street. “Trucks are our big thing. I guess it’s because I like trucks. We carry pickups, diesels and quite a few SUVs. “We also sell some cars and some classics. “I like to get 10 to 12 (units) out each month. We’ve had months where we sold 15 and we’ve had some weeks that weren’t worth a darn. “We deal with higher-end cars and trucks. The problem is the new ones cost too much, so the used ones are bringing a lot of money, if they have decent miles. “We’re straight retail. I have two in-house credit unions. But we don’t do any subprime or any buy-here, pay-here. “Our average models years are probably 2006 to 2007. But I’ve got some 2012s and some 2005s. “When I started this, I was way under 100,000 miles (average unit). Now, the average mileage is anywhere from 50,000 to 80,000. Sometimes I’ll go over
100,000. Now, they run a lot longer. “We’re almost 100 percent domestic. I just do better with domestic. “My reconditioning costs are higher than they used to be. I’m kind of ashamed at times. We’re putting in anywhere from $500 to $1,200, on average. We do a lot of fixing on our own. “If it’s a major repair, it goes to our local Ford or General Motors dealership. “We have a small shop. But we’re not a repair shop. We’ll give our customers oil changes, which you just have to do nowadays. “We advertise in Wheels magazine. We’ve done some radio spots in the past, though I’m currently not doing that. “We run a strip ad in our local paper, which is pretty reasonable. We also have a website and advertise on Craigslist. “Our average retail price would probably be in the $15,000 to $18,000 range. “A recent vehicle we sold was a 2007 Chevy extended cab classic. It had 114,800 miles. I got $16,300 for it.”
10/28/13 2:25 PM
~Â Ă›Ă?Ă›Ă›November 4, 2013
USED CAR NEWS
WHOLESALE MARKETS GEORGIA
Donnie Bazemore, general manager, Southeastern Auto Auction of Savannah, Savannah, Ga.: â€œWeâ€™ve been here 25 years. â€œWe have four lanes and weâ€™re running all four. â€œFor our dealer sales, weâ€™re running around 550 cars. Weâ€™re selling in the 60 percent (area). â€œWeâ€™re up in consignment quite a bit. Itâ€™s up about 100 cars per week. We added a couple of salespeople and theyâ€™ve been going to areas farther out (than weâ€™d normally go). â€œWe also have a public sale where weâ€™ll run about 150 (units) and weâ€™ll sell about 50. â€œAt our Oct. 24 sale, we had around 280 (bidders), which was the first time we had dropped under 300 in a while. â€œDealer consignment is probably 80 percent of our volume. â€œThe rest is fleet-lease and repossessions. Weâ€™ve just joined the International Automotive Remarketers Alliance to help us build that up.
â€œWeâ€™ll do an in-op sale each week prior to our regular sale. We donâ€™t push it hard. We do it as an accommodation for the franchise dealers. Weâ€™re probably running around 30 cars. â€œWeâ€™re on the east coast. Weâ€™ll get dealers coming from a 150-mile radius. But since we added these two new salespeople, weâ€™ve got some dealers coming from Atlanta. We also got a guy who comes from Hickory, N.C., which is five hours away. He comes every week. He likes to sell and heâ€™s buying 10 to 15 cars a week. â€œThe new-car dealers seem to be doing well. The independents are being very careful about what theyâ€™re buying. â€œA lot of new-car guys are starting to buy the $5,000 and $6,000 stuff, which is a trend Iâ€™m seeing lately. â€œThe dealers are doing less (reconditioning) in my opinion, while the lease companies and the banks are doing more. Weâ€™re suggesting things to help dealers (recondition better) and some dealers listen and some donâ€™t. Weâ€™ve started
Compiled by Jeffrey Bellant a real push on it and are showing some results. â€œOur average price coming through the lanes is $7,800. We have a strong franchise base, which kicks that price up. Itâ€™s higher than last year.â€?
Scott Wall, president/ general manager, Missouri Auto Dealers Exchange Inc., St. Joseph, Mo. â€œIn January, weâ€™ll have been here nine years. â€œWe have a total of three lanes and weâ€™re running two currently. â€œOur volume is down a bit. Iâ€™ve talked with other (auction general mangers) around the country and it seems many of them are down, too. â€œOur volumes are probably down 25 to 30 percent from what would be good volumes for us. A good number for us would 160 to 180 cars a week. Thatâ€™s what we were doing. Before Cash for Clunkers, we had more than 200 per week. â€œSales percentages for us are around the low
50s (percentile). â€œWe are getting about 80plus bidders in the lanes, which is down. â€œThe mood of the dealers is mixed. Some pockets are doing fine. I recently talked to one new-car dealer and (his sales) are fine. But theyâ€™ve got different income streams within the group (which helps). I talked to another new-car store and theyâ€™ve just got the blahs. â€œWeâ€™ll have dealers come from a 100-mile radius consistently, but weâ€™ve got some dealers that come from farther away. Generally, weâ€™ll get dealers from Missouri, Iowa, Nebraska and Kansas. â€œThe majority of our consignment is new-car store trades and dealer consignment. â€œWe do have lease accounts, but those numbers are somewhat down at the moment. In July and August, we had a good number of lease cars. We were running up to 50 lease cars a week, but thatâ€™s down. Iâ€™m hearing that those numbers will increase. â€œTypically, this time of year, the lease volume will
pick up a little bit. â€œI expect it to pick up in November or December, or at least by early next year. â€œOur (commercial) accounts are Automotive Solutions and local credit unions. â€œWe also have an in-op auction every other week, the second and the fourth Wednesdays of the month. The average volume is about 12. Thatâ€™s a high percentage conversion (sale). â€œWe sell bank repossessions for many of the local lending institutions. â€œQuarterly, we sell (trucks and equipment) from the local counties, municipalities and the Missouri Department of Transportation. â€œWeâ€™re also contracted to sell for the General Service Administration. We had three GSA auctions in 2013 and they all had 100-percent conversion rates. We expect the same or better in 2014. We average 60 units per sale. â€œOverall, four-wheel trucks are selling right now. â€œThe average price sold in the lanes is $4,450. Thatâ€™s pretty close to last year.â€?
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Jaguar, the Jaguar logo, and Jaguar Financial Group are trademarks of Jaguar and any use by JPMorgan Chase Bank, N.A. (â€œChaseâ€?) is under license. Land Rover, the Land Rover logo, and Land Rover Financial Group are trademarks of Land Rover and any use by Chase is under license. Retail / Loan and lease accounts are owned by Chase.
The tradename â€œMazda Capital Servicesâ€? as well as the Mazda and Mazda Capital Services logos are owned by Mazda Motor Corporation or its affiliates and are licensed to JPMorgan Chase Bank, N.A. (â€œChaseâ€?). Retail / Loan and lease accounts are owned by Chase.
ÂŠ 2013 JPMorgan Chase Bank, N.A. Member FDIC. All rights reserved. (13-038) 02/13
10/28/13 10:10 AM
ACTUAL WHOLESALE AND PROJECTED RESIDUAL VALUES NOVEMBER 2013
SOURCE: BLACK BOOK
2012 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 Galant ES 4D Sedan Nissan Altima Base 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra Base 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Trucks 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
Nov-12 23100 30600 12900 13200 19800 15150 12500 17000 20200 25200 Nov-12 26400 32700 68600 15850 15750 31400 42000 12600 13950 15150 12500 17100 12850 16600 Nov-12 37650 52450 33400 20750 18750 21625 29950 15150 21900 19175 29325 22600 23025 19400 21600 31975
May-13 22000 27500 13200 12950 18650 13450 13300 16800 18350 24300 May-13 25800 30200 61000 16100 15300 29800 36600 11800 13100 14400 12200 15900 13300 15900 May-13 34650 48550 30350 20850 18100 20475 29900 15950 21950 18500 27550 21200 21300 19300 19850 29500
Nov-13 20950 23500 11450 11000 17100 11950 11650 15100 16300 22200 Nov-13 23400 26000 57000 14550 12700 28400 34600 12200 11450 12750 10900 14500 11850 14450 Nov-13 32400 45500 26800 20450 15400 19975 29950 14750 21025 15500 26850 20850 19500 17500 19450 27450
Projected Figures Nov-14 Nov-15 18150 15525 20375 16775 9725 8450 9800 8700 13700 11775 10100 8650 10025 8475 13575 12150 14100 12225 19600 17100 Nov-14 Nov-15 20025 17200 21175 17675 45525 38625 12550 11125 11275 9575 24175 21250 29275 24400 9750 8325 10475 9100 11550 10050 9450 8250 12325 10925 10075 8850 13075 11225 Nov-14 Nov-15 26500 22225 38650 32875 23825 20900 17600 15475 13125 11125 16825 15000 25450 22200 11550 9475 17225 14825 13925 11850 21750 18425 16700 14575 15575 13400 14950 13250 16650 14575 23650 20650
2010 MODELS Domestic Cars Buick LaCrosse CX 4D Sedan Cadillac DTS 4D Sedan Chevrolet Cobalt LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 Touring 4D Sedan Chrysler Sebring Touring 4D Sedan Ford Mustang 2D Coupe Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan Ford Focus SE 4D Sedan Import Cars Acura TL 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Galant ES 4D Sedan Nissan Altima 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra 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 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 Dakota Bighorn Ext Cab 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
Nov-12 16150 18500 8650 11000 13950 11050 13500 15900 18200 9600 Nov-12 21200 21500 53300 12850 10100 23950 33000 10200 10850 12150 10500 12600 10500 12600 Nov-12 27900 40850 28100 17625 14450 18725 24325 13425 12075 18100 15300 17975 17725 18700 15650 16600
May-13 14600 18500 8400 10200 13550 10300 13400 14950 17800 9600 May-13 20800 20600 42700 13150 10050 22600 27600 9200 10600 11900 10150 12650 10700 12750 May-13 26750 38850 25300 17075 14500 18175 23350 12875 12025 17800 14875 17725 17200 18200 15800 14800
Domestic Cars Buick LaCrosse CX 4D Sedan Cadillac DTS 4D Sedan Chevrolet Cruze LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 4D Sedan Chrysler 200 Touring 4D Sedan Ford Mustang 2D Coupe Ford Focus SE 4D Sedan Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan Import Cars Acura TL 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 Galant ES 4D Sedan Nissan Altima 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra 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 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/DVD
Nov-12 18600 27800 11800 12100 18150 13050 15200 11000 18400 22400 Nov-12 23800 25200 60200 14300 14150 27600 37200 11300 12050 13350 11450 14100 11700 15150 Nov-12 32400 47400 30800 19025 17150 19725 26875 14175 21325 16825 27650 19625 21300 17200 19800 28350
May-13 16700 24400 11800 11500 16800 11500 14800 11200 16450 22000 May-13 23200 23800 50300 14600 13850 26000 31600 10500 11900 13200 10900 14150 11900 14800 May-13 31550 43350 28000 18975 16550 19400 26775 14800 20975 16100 27400 19375 19450 17450 18500 27100
Nov-13 15050 21250 10250 9700 15650 10450 13450 9950 14500 21500 Nov-13 20800 20150 45400 13050 11350 24600 30400 10400 10200 11500 9650 12800 10550 13350 Nov-13 29200 41500 23900 18950 13100 18725 25600 12250 19725 13750 25625 19075 18800 15200 17300 24200
Projected Figures Nov-14 Nov-15 12950 11150 15775 13225 8475 7250 8375 7325 12275 10375 8575 7300 12200 10925 8200 6950 12175 10325 16425 13600 Nov-14 Nov-15 17275 14800 16775 14150 37325 31550 11100 9725 9675 8075 21275 18675 24500 20050 8150 6850 9075 7800 10075 8650 8175 7050 10875 9650 8850 7725 10900 9225 Nov-14 Nov-15 22850 18850 33525 28100 20250 17350 15725 13725 10750 9025 15525 13750 21600 18625 10175 8350 15475 13125 11825 9825 19750 16375 14800 12775 14325 12200 13100 11600 14150 12275 20175 17200
Nov-13 8750 14450 5750 7400 11050 5850 9900 8050 14400 6850 Nov-13 17000 14500 33500 10300 7250 18400 18800 7250 8350 9150 7350 10000 8250 9950 Nov-13 19800 31150 15300 15450 8475 14875 21350 9925 8600 13875 10400 13750 14525 7800 12400 11450
Nov-14 7050 11100 4900 6150 9675 4250 8800 6400 10825 5300 Nov-14 12750 12000 26125 8400 5925 15250 15700 5600 6875 7775 6050 8225 6575 7850 Nov-14 15200 23550 12250 12175 7250 12300 16175 8300 6925 10725 8050 10625 11450 6575 10150 9675
2009 MODELS Nov-13 13300 17600 7200 8350 12450 8550 12000 12950 17350 8550 Nov-13 18800 17650 38050 11650 8550 21400 26800 8800 9000 10300 8900 11400 9400 11400 Nov-13 24650 36400 22500 17200 11575 17200 22675 12025 10500 16875 12500 16650 16050 16900 14300 13700
Projected Figures Nov-14 Nov-15 11300 9500 13200 10975 5900 5100 7150 6150 10350 8775 5850 4625 10400 9100 10450 8700 13300 10850 6950 5575 Nov-14 Nov-15 15050 12400 14625 12175 31500 26375 9725 8400 7175 5925 18075 15325 20300 16300 6800 5675 7875 6700 8775 7450 7325 6175 9500 8300 7575 6600 9400 7925 Nov-14 Nov-15 19150 15750 28350 23175 18075 14850 13950 12175 9125 7375 13850 12075 18650 15725 9825 8575 8100 6550 12950 10975 9725 7950 13200 10700 12675 11175 12725 10825 11725 10250 11550 9800
Projected Figures Domestic Cars Buick LaCrosse CX 4D Sedan Cadillac DTS 4D Sedan Chevrolet Cobalt LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 Touring 4D Sedan Chrysler Sebring LX 4D Sedan Ford Mustang 2D Coupe Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan Ford Focus SE 4D Sedan Import Cars Acura TL 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Galant ES 4D Sedan Nissan Altima 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra 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 4D Utility AWD Cadillac SRX 4D Utility AWD V6 Chevrolet Colorado LT Crew Cab 4WD Z85 Chevrolet Equinox LS 4D Utility FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D Utility 4WD Dodge Dakota Bighorn Ext Cab Dodge Grand Caravan SE Wagon Ford Edge SEL 4D Utility Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Taurus X SEL 4D Utility FWD Honda CR-V LX 4D Utility 4WD Honda Odyssey LX Wagon
Nov-12 10700 16500 6950 9200 13000 8250 11500 11000 16200 8350 Nov-12 19000 18150 46000 11500 8500 20550 24200 8900 10300 11100 9700 11250 9200 11200 Nov-12 23000 35350 19750 16525 11725 15825 22675 11925 10050 16175 13225 14700 15425 11775 14150 15150
May-13 10200 15400 6750 9150 12250 7550 10950 9275 14700 8000 May-13 19000 17600 36500 11800 8600 19600 21000 7700 9600 10400 8350 11350 9200 11200 May-13 21200 34550 17550 15875 10975 15975 22400 11300 10025 14900 12975 14500 15850 11175 14350 12950
Nov-15 5975 9075 4250 5175 8100 3300 7600 5300 8950 4375 Nov-15 10425 9850 21500 7175 4825 13050 12525 4525 5750 6525 5075 7100 5625 6475 Nov-15 12350 18700 10000 10375 5900 10625 13225 7250 5550 9025 6400 8575 9825 5250 8900 8075
10/25/13 11:24 AM
~ÂƒĂ›Ă›Ă?Ă›Ă›Ă›November 4, 2013
USED CAR NEWS
Fast Track Your Cash Compiled By Jeffrey Bellant
Manheim Sells â€˜Duck Dynastyâ€™ Trucks Sterling Credit Corporation Offering Point-of-Sale and Bulk Purchase Programs BENEFITS: t.JOJNJ[FSJTL t1VSDIBTFJOWFOUPSZ t"DDFMFSBUFZPVSQSPmUT t3FEVDFDPMMFDUJPO SFTQPOTJCJMJUJFT t.FFUPQFSBUJOHDPTU HPBMT t(SPXZPVSCVTJOFTT
Sterling Credit Corporation is your key to turning in-house sales contracts into fast cash. Our seasoned understanding of the industry will help you generate a timely return. Our professional team of ďŹ nance experts can create a program designed exclusively for you and your dealership. Weâ€™ll get you the cash quickly, treat your customers with respect and free you from the hassles of collections, all with a personal touch. 8FDBOIFMQHFUZPVSDBTInPXCBDLPOUSBDL $BMMUPEBZ
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DUCK TRUCK: Zachary S. Ford, center, from Tyler Car & Truck Center, shows off his truck purchased from the â€œDuck Dynastyâ€? family. Ford is with, from left, David Robertson, Manheim Dallas general manager and Kent Abernathy, McKaig Chevrolet Buick. Also pictured are Christy Lopez, Manheim Dallas promotions; and, far right, Eddie Pope of Manheim Dallas.
Manheim Dallas sold two trucks previously owned by the Robertson family of the â€œDuck Dynastyâ€? TV show. Proceeds from the Oct. 23 sale will go to the charities selected by the foundation of McKaig Chevrolet-Buick of Gladewater, Texas, the consignors of the trucks. â€œWe (were) excited to offer these two trucks from the â€˜Duck Dynastyâ€™ show,â€? said Manheim Dallas General Manager David Robertson, no relation to the Robertson family. The 2011 Chevrolet Z71 and the 2010 Chevrolet Z71 trucks, which sold for nearly $72,000, were previously owned by Phil Robertson and his son Willie Robertson. The Robertsonâ€™s originally obtained both trucks through McKaig Chevrolet-Buick. The Robertson family operates Duck Commander of West Monroe, La., which produces duck hunting products. The family is featured on â€œDuck Dynastyâ€?, a reality show in its fourth season that airs on A&E starring Phil, Willie and many members of their extended families.
Enterprise Names its Top Auto Auctions
Enterprise Holdings, which operates the Enterprise Rent-A-Car, National Car Rental and Alamo Rent A Car brands, announced its annual Auction Achievement Awards for outstanding performance. â€œWe have been working with many of these auction partners for decades,â€? said Chrissy Taylor, senior vice president of North American Operations for Enterprise Holdings. Sixteen auctions were honored. The winners of the 2013 Auction Achievement Award in the whole car category were: ADESA Dallas, Manheim Mississippi, ADESA LA, Manheim New Jersey, Greensboro Auto Auction, Manheim Omaha,
Manheim Dallas, Manheim Pennsylvania, Manheim Fredericksburg, Manheim Riverside, Manheim Georgia and Manheim Texas Hobby. The winners of the 2013 Auction Achievement Award in the damage vehicle category are: IAA Dallas/ Fort Worth, TRA New Jersey, TRA Metro Dallas and TRA Tampa. We invite news items and top-quality photos from our readers to be considered for â€œAround the Block.â€? 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: firstname.lastname@example.org
10/28/13 10:03 AM
November 4, 2013Ă›Ă›Ă?Ă›Ă›~Â„
USED CAR NEWS
Disconnected Jottings From Tony Moorby... I canâ€™t think of a better case for term limits on political office than the disgraceful performance recently by all sides of the Congress. These pompous practitioners held the country hos-
point in laying them off in the first place. The supreme irony is that they increased the debt burden while trying to stave off its growth. These people think more of keeping their own jobs
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tage and to global ridicule, even causing a confidence crisis that is likely to drag on our international standing for a long time. Discussions have become more serious in banking circles to look at other currencies to set the standard instead of the dollar. If this were sports theyâ€™d be sent off and fined â€“ maybe banned. They cost you and me $24 billion in 16 days. The furloughed federal employees are getting back pay for their time off so what was the
than they think of upholding the rights and expectations of the folks that put their trust in them and voted for them. They didnâ€™t stop paying themselves either. They donâ€™t even have to concern themselves with healthcare â€“ if they serve for one day, itâ€™s theirs for life. Now that the Affordable Care Act is law letâ€™s hope they donâ€™t spend all our premiums on designing a website that works. Citing weight of traffic for the government website to crash is
total balderdash. Theyâ€™ve had years to design and build this thing and, even if you can get through, it gives spurious numbers for premiums. If this is indicative of the reliability of a government healthcare system then weâ€™d better stay fit and keep away. In the middle of all this the Tea Party tried to exert its influence and all they achieved was to strengthen the opposition by weakening the Republican Party. Maybe a three-party system will work in the future but for now itâ€™s just seen as taking votes away from Republicans. We had such an arrangement in Great Britain years ago with the Labour, Conservative and Liberal parties and now all we end up with is frail coalitions, hanging on for dear life between elections, so long as a vote-of-no-confidence doesnâ€™t bring them down in the meantime. No real policy ever gets fixed as swings in the government sway from side to side like a drunken bum in an alley.
C R O S S WO R D Down
1. ____ SQ5 TDI 3. ____ 500 Abarth 6. Kia compact 9. Classic chevy feature 10. Wheels support 12. VW Golf hatchback 14. Zodiac sign 15. Owing 16. â€œGuts and Gloryâ€? truck 18. Subaruâ€™s XV _____ 21. Require 22. Reporterâ€™s query 23. F 150 makers 24. Famous Acura model 27. 70s Ford compact 28. Innovated 29. Corroded 31. Car color choice
32. Stinger 33. Posh school 35. Third in a family 36. Material used in car interiors 37. Toyota subcompact 39. Itâ€™s under your feet in a car 42. G.M. brand discontinued in 2010 45. Classic car brand now owned by Chrysler 46. Compass point 47. Area for luggage 49. Old Dodge 50. Geo model
Really? And millions of French peopleâ€™s data from their cell phones? Seriously? Old fashioned â€œfishing expeditionsâ€? through peoplesâ€™ files and data, in case something incriminating was found, were disallowed by the courts. Now you donâ€™t even know itâ€™s being done. I appreciate that war is not now carried out in the same way but liberties are being taken with our liberty! There seems to be an eerie feeling of international distrust and discomfort. America was made of immigrants but you have to wonder who is now immigrating and why. Now, of all times, we need a government that looks strong to the world and not squander an authority that was earned over centuries of sensible self-determination.
To see past columns from Tony Moorby, visit www.usedcarnews.com/ columnists/tony-moorby
Sponsored by INSURANCE AUTO AUCTIONS
By Miles Mellor
Our international credibility is really going down the sewer. Iâ€™m not naĂŻve enough to believe that we donâ€™t spy on our neighbors and have done for years; you know that old saying about keeping your friends closer than your enemies â€Ś and I know that freedom isnâ€™t free. In spite of the presidentâ€™s protestations that Americans arenâ€™t being listened to and looked at, especially by the NSA, we are and we have been. They currently have the rationale, if not the outright reason, to carry all this out in the name of foiling terrorism. But what else is being picked up on the wires or should I say the Ethernet, these days? It turns out that George Orwell knew a thing or two. But listening to Angela Merkelâ€™s cell phone?
1. Toyota sedan 2. â€œBack to the Futureâ€? transport 3. One of the BMW Series 4. __ touch 5. Hyundai crossover 6. ______ GT500 (2 words) 7. NASCAR competitor 8. Self concept 11. Jaguar __ roadster 13. Dated 17. Business promotion 18. Jeep Cherokee makers 19. Corvette color, in song 20. Youngsters 22. Military officer, for short 23. Subaru crossover 25. Set 26. College e-mail address ending 27. Made it shine 30. Triangular traffic sign 32. BMW, in slang
Answers to the 10/21/13 puzzle 1
34. Ford Mustang ____ 38. Car buyerâ€™s option 40. Radio wave 41. Bright green color 43. Made in ___ 44. Musician Charles 48. __ and the Sunshine Band
O M 26
S H D
G B 36
O W N
A N 46
Answers to this puzzle in the 11/4/13 issue. Call 1.800.794.0760 for a FREE subscription.
10/28/13 12:50 PM
~Â…Ă›Ă?Ă›Ă›November 4, 2013
USED CAR NEWS
Advertisers are solely responsible for content of classified advertisements. To place an ad, or for more information, call the Classified Department: 800-794-0760 ext.107
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FACILITIES FOR SALE/LEASE Salvage Yard - Used Car Dealer for Sale or Lease. 2 acre yard on main highway located 10 miles from Metro Baltimore. Under current ownership since 1977, in business since 1946. Owners looking for exit strategy. 275 feet of main highway frontage with local access to MD695, US95 north, US95 south, MD Rt 3 - US 301. Mid 2000â€™s inventory. All Auto Recycling licenses plus Maryland Used Car Dealers license. Property zoning allows for most auto business applications including Gas & Go. Financing or lease options available. 443-829-1912 Sam Business & Lot for Sale Buy Here, Pay Here, lot in Southern Maryland. Excellent location with local demographics conducive to BHPH volume. Call Today, Ask for Ray or Bill at 301-609-9550
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2013/14 UPCOMING ISSUES December 2 - Collections Deadline Wed., November 20
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10/28/13 9:36 AM
AASC/AutoIms ........................................ 30 & AutoManager .......................................... 32 & AutoRaptor ..................................................... Autosave ........................................................ Columbus Fair Auto Auction ................... 28 & Credit Acceptance Corporation ............... 20 & Finance Express ...................................... 27 & Flex Capital Corporation ......................... 26 & Go Financial ........................................... 20 & Gordon Howard/Passtime ....................... 21 & GWC Warranty ......................................... 22 & NextGear Capital ................................... 25 & Northland ............................................... 20 & Payteck Technologies ............................ 28 & Small Dealers Assistance ...................... 28 & Spireon ................................................... 23 & Store Supply Warehouse ........................ 26 & Vehicle Acceptance Corporation ............. 32 &
31 33 22 24 29 24 34 33 30 32 34 26 33 30 30 31 33 33
10/28/13 10:47 AM
Â‡Ă›Ă?Ă›Ă›November 4, 2013
Special Advertising Section
Used Car Leasing Trumps BHPH for Profits! For the first time since used car leasing was invented 23 years ago, a side by side comparison has been performed showing the profit difference compared to buy-here, 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€™Tâ€™OwnÂŽ and Leaseâ€™Tâ€™OwnÂŽ using 2011 national averages as published by NABD-NCM
The net profit difference is primarily due to Leaseâ€™Tâ€™OwnÂŽâ€™s tax advantages. Ć€É&#x;.É&#x;."É&#x;(É&#x;) É&#x;3,É&#x;)(ĹťÉ&#x;."É&#x;/3Ć? here, pay-here model profit is only $55,920, which isnâ€™t much to buy cars for the next year compared to Leaseâ€™Tâ€™OwnÂŽâ€™s profit of $224,090. Ć€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 rate is -&#!".&3É&#x;)0,É&#x;ĹłĹ°ĆžĹşÉ&#x;#."É&#x; -Ć‰Ć‰1(Ć˘É&#x; there are no repossessions since the dealer remains the titled owner of
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€™Tâ€™OwnÂŽ. A few things to point out in the comparison: É&#x;Ć€É&#x;#."É&#x;/3Ć?",ĹťÉ&#x;*3Ć?",É&#x;3)/É&#x;*3É&#x; taxes on the entire contract at the end ) É&#x;."É&#x;ĹŚ,-.É&#x;3,ĹşÉ&#x;#."É&#x; -Ć‰Ć‰1(Ć˘É&#x; you are paying federal and state income taxes on only the payments received.
the vehicle. There are also federal statute protections to prevent leased cars from being included in bankruptcies. Therefore, the net profit shown for Leaseâ€™Tâ€™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€™s tax rates rather than an average.
USED CAR NEWS
Capital and Customer Service from an Industry Professional Go Financial has created a unique subprime lending program that gives dealers the best of both worlds: upfront 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 todayâ€™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 be able to succeed at subprime finance, you have to be able to understand and predict risk, and know when to balance it with reward. Go Financial created a proprietary grading system based on its experience financing hundreds of thousands of subprime loans. That credit scoring model became the basis of the GO Portal â€“ an online site that delivers approvals to all customers. The Portal instantly updates advance rates as the dealer adjusts the
APR, term, price and down payment to best meet their customerâ€™s needs and the dealershipâ€™s profit goals. After receiving the initial advance, each dealerâ€™s loans are pooled together to create a unique portfolio, which GO services at their national call centers. Dealers share in the future revenue from the pool as the payments are collected. What if a dealer doesnâ€™t want to wait for the payments to be collected? The dealer has the option to tap into pool equity early through GOâ€™s exclusive Cash Out Now option, offering flexibility with instant liquidity once their pool is closed. 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. All loans are non-recourse and GO has no sign-up fees. Go Financial is licensed in 44 states and currently enrolling franchise and independent dealers. For a demonstration, call 888-GO-Financial (888-463-4626) or visit www.gofinancial.com.
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10/25/13 9:56 AM
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10/28/13 10:25 AM
ÛÝÛÛNovember 4, 2013
Special Advertising Section
USED CAR NEWS
Stay Ahead of the Competition Quality Partners Treat Your Customer As Their Own While the economy is moving in a positive direction for most of the country, many consumers are employed at jobs that pay significantly less than before the recession. What does this mean for buy-here, pay-here dealers? Consumer’s jobs and income may have changed but they still want and expect the new car buying experience. This is an opportunity for buyhere, pay-here dealers to win some business if they understand these customers. Sub prime banks are now buying low credit consumers for new car dealers. New car dealers who sell used cars have adapted to working with consumers with poor credit ,providing the experience they expect. How can buy-here, pay-here dealers compete? By changing their dealer culture from top to bottom. Treat prospects correctly and they will stay with you for multiple sales. It is not just about the payments, it’s about the experience and the follow up by your staff. According to NIADA, 58% of sales originate from the Internet. That number is growing. You must have an online presence and a way to manage incoming internet leads. To successfully build a relation-
ship with these prospects and give them the experience they expect, use a CRM application. It’s the key component to building and maintaining a personal relationship with your customers. A CRM application is crucial if you want to squeeze every last ounce of business out of your leads and get the most return on your ad dollars. When you lose contact information, or don’t follow up, missed opportunities translate into real money lost. Adopting a system to maintain your customer information is a worthwhile investment. Regardless of what type of dealership you operate, you need a CRM application tailored to your needs, with quick access to your information that holds your sales staff accountable. Buy-here, pay-here dealers all across the country choose AutoRaptor CRM to manage their internet leads and customer follow-up. AutoRaptor CRM gives buy-here, pay-here dealers the tools they need to build relationships with their customers, convert more leads into sales, get more referrals and sell more cars. For your personalized business analysis or to find out more visit www.autoraptor.com or 888-421-6533.
As a dealer, you work hard to achieve the highest level of customer satisfaction. Satisfied customers are repeat customers, who often act as brand ambassadors supporting you through positive word-of-mouth advertising. It’s critical that you align with partners who understand the importance of ensuring your customer’s satisfaction. Your partners must understand that if your customer does business with them because of you, how they service the customer reflects directly upon you – good or bad. Selecting the right partner is most certainly important when it comes to vehicle service contract providers. You deserve a partner that is reliable, frees you from unnecessary headaches and gives you the confidence that your customers will be covered. There are over a hundred companies competing in the vehicle service contract industry and very few do it well and do it honestly. A quality vehicle service contract allows customers to buy with confidence knowing that they’re protected from unexpected repair costs with day one, mile one coverage. A vehicle service contract also provides your customers with the freedom to enjoy their purchase without worries. The right partner will offer your customers 24/7 roadside assistance and nationwide service facilities to ensure they are able to drive anywhere
worry free. Furthermore, knowing that in the unlikely event of a claim, it will be handled smoothly and paid promptly. Getting your customers back on the road quickly provides the reliability that both you and your customers need. Be sure that you partner with a vehicle service contract provider that allows you to offer your customers the service and support that they’ve come to expect from you. GWC is proud to be one of the most trusted names in the business and to partner with dealerships that also treat their customers well. About GWC Warranty: GWC Warranty was built on providing independent dealers and their customers outstanding service and personalized attention. A leading provider of vehicle service contracts, GWC Warranty was recently named Motor Trend® Recommended Best Buy for independent dealers. We have been a trusted partner of over 20,000 dealers nationwide and to date have paid over $300 million in claims. GWC Warranty is owned by Stone Point Capital, a Connecticut based investment firm with aggregate committed capital of $9 Billion. To learn more about how GWC can offer you and your customers outstanding service, visit us at www.GWCwarranty.com . MOTOR TREND® Magazine is a registered trademark of SOURCE INTERLINK MEDIA, LLC ©2013. All Rights Reserved.
10/28/13 10:23 AM
The Talon Challenge. Put Talon’s Quality & Performance to the Test for Yourself. Let’s get to the truth about The Talon GPS Tracking Device from GoldStar GPS. It’s still by far the best-performing and best-selling device in our market. The Facts Don’t Lie:
• 10th generation patented technology innovation • Over 500,000 units sold in less than 1 year — more than any other device in our market • Next to non-existent failure rate of just 0.4% • High quality, rugged, automotive-grade engineering and design • Water-resistant, integrated sealed cable for enhanced durability • Resettable fuse located in-device for greater protection • Meets & exceeds all required carrier certifications for receiving and transmitting cellular data
No wonder Talon is the dealers’ first choice for GPS tracking hardware. But we’re not stopping there. Stay tuned for the next-generation Talon CDMA device — with even faster speeds and bigger bandwidth from the leading MRM provider in the country.
NABD EAST BOOTH #1011
PUT TALON TO THE TEST. Call Today and Test The Talon Performance for Yourself.
1-866-655-8825 l GoldStarGPS.com/talonfacts ©2013 Spireon, Inc. All Rights Reserved.
10/24/13 11:42 AM
Â Ă›Ă?Ă›Ă›November 4, 2013
Special Advertising Section
Interested in Buy-Here, Pay-Here? Thereâ€™s a Better Way - Credit Acceptance!
Autosave and E-Credit Express Products Add to Your Bottom Line Autosave, the original 5-year/100,000 mile warranty company, has over 180 agents throughout the US and Canada that represent and sell our industry leading programs and platforms to dealers. Autosave has added 1- and 3-year
Cash Back Programâ€? where enrolled sales personnel at Autosave dealers receive a cash reward for their sales on a monthly basis. Autosaveâ€™s sister company E-Credit Express (www.ecreditexpress.com) has products that make all dealers TM
warranty terms with additional coverage for air conditioning, electrical and seals and gaskets, making a larger profit center for the dealer. The competitive pricing structure of these warranty products, E-contracting and the ability to accept online payments from dealers has made Autosave the industry leader in this market. Claims payments are made electronically to the repair facility. All Autosave warranty programs include E-contracting, marketing materials, interior signage and outdoor banners for the dealer to display.
USED CAR NEWS
red flag and OFAC compliant. With E-Creditâ€™s GUARANTEED electronic forms compliance in all 50 states and state specific E-forms that include all required initials and signatures â€“ without the costly need for electronic pads or pens. E-Creditâ€™s electronic forms are 100% compliant in every jurisdiction â€“ with a million dollar guarantee! E-Credit warrants that each deal submitted through its platform is 100% compliant each time a deal is submitted to a lender â€“ no more deals kicked back â€“ INCREASE YOUR SALES IMMEDIATLEY! Autosave supports our dealers in all facets of the industry with warranty product training, program training, claims and customer relations. Autosave is the industry leader in Call 800-684-1175 for more infordealer sales rewards with the â€œDealer mation on these programs.
The recent fiscal crisis and government shutdown have spurred economic uncertainty, leaving even more consumers struggling to establish credit or rehabilitate poor credit. Credit Acceptance, a proven leader in automotive financing since 1972, allows dealers to sell to consumers regardless of their credit history. It has all the benefits of buy-here, pay-here, with none of the issues. Credit Acceptance eliminates the need for the large capital outlays necessary for buy-here, pay-here, providing a business model that maximizes ROI. 24/7 technology approves and processes deals. Dealers benefit from sales to consumers who otherwise could not obtain financing; from repeat and referral sales; and from responses to credit-challenged advertisements. â€œWithout the Portfolio Profit from Credit Acceptance, we may not be here today. Business is now back on track and we just surpassed the $2 million mark in Portfolio Profit received from our Credit Acceptance contracts.â€?
- Lavon Schwartz, owner of KCâ€™s Budget Auto, Kalamazoo, MI
Without Credit Acceptance, consumers are often unable to purchase
a reliable vehicle. An important benefit is an opportunity to improve credit scores through on-time payments, hopefully moving on to traditional sources of financing in the future. â€œNobody would extend me any credit after my bankruptcy â€“ until I found a Credit Acceptance dealer. I never missed a payment and I was able to buy a new car and a house!â€? -Janet S., Credit Acceptance Consumer Credit Acceptance provides dealerpartners nationwide with: Ć€É&#x;/*,#'É&#x;ĹŚ((#(!É&#x;1#."É&#x;/(*,&leled funding for buy-here, pay-here consumers, giving dealers a cashpositive position and a share in total contract profits. Funding is straightforward and fast. Ć€É&#x;)'*,"(-#0É&#x; )&&.#)(É&#x; '(agement, managing all aspects of the collection process. Ć€É&#x;(É&#x;2#.É&#x;-.,.!3ĹťÉ&#x;*,)0##(!É&#x;&,Ć? partners with money from collections in retirement. Ć€É&#x; (,-É&#x; *,)ĹŚ.-É&#x; .",)/!"É&#x; ."É&#x; ability to market Guaranteed Credit Approval*, increasing floor traffic, sales, and profits. Visit www.creditacceptance.com (click on â€˜Become a Dealerâ€™ under Dealers) or call 1-800-873-0512. *Some states prohibit the use of â€œGuaranteed Credit Approval.â€? Alternate marketing materials are available.
1 - 3 - 5 YEAR WARRANTIES ADDITIONAL COVERAGES AIR CONDITIONING ELECTRICAL SEALS & GASKETS CHECK OUT ECREDITEXPRESS.com Guaranteed Form Compliance in ALL States WWW.AUTOSAVE.COM
10/28/13 10:27 AM
I listen to my dealers. .BSJOB$PMMJ
Account Executive, NextGear Capital San Diego, California
&BDIPOFJTVOJRVF"OEXIBU*MPWF BCPVUNZKPCJTUIBU*DBOPGGFSUIFN NZZFBSTPGLOPXMFEHFBOEFYQFSUJTF UPIFMQUIFNDIPPTFUIFÃ½PPSQMBOUFSN UIBUCFTUÃ¥UTUIFJSCVTJOFTTNPEFM /FYUHFBS$BQJUBMNBLFTJUQPTTJCMFCZ QSPWJEJOHUPPMT QFPQMFBOEUFDIOPMPHZ UIBUDBOCFBDDFTTFEBUBOZUJNF BOZXIFSF 3FUBJMt8IPMFTBMFt4BMWBHFt4QFDJBMUZ
See Marinaâ€™s story at
Inventory Finance Solutions. Simplified.
10/24/13 11:48 AM
ÛÝÛÛNovember 4, 2013
Special Advertising Section
USED CAR NEWS
Save Time and Simplify Your Business with Floor Plan Financing Floor plan financing allows dealers to expand their new and used offerings, free up capital for other uses and make the best use of their time. Recent advances in technology – such as the use of mobile devices – have made floor planning a powerful tool for dealers, saving time and simplifying the process of buying and selling inventory. Mobile technology allows dealers to conduct business anywhere and at any time, making floor planning easy and efficient. Dealers have a variety of options for financing inventory purchases. As a dealer, your time is at a premium. You need simple solutions to effectively and efficiently run your business, and your lender should be part of the solution, not the problem. With this in mind, consider how your floor plan financing options make your business more successful and your life easier, allowing you more time to run your business. For those not familiar, “floor plan” is an industry term used to describe short-term inventory financing provided by a finance company, bank or private equity firm. Dealers use floor plan lines of credit to acquire and/or refinance
inventory for their wholesale/retail remarketing operations. Generally, the dealer grants the lender a security interest in the dealer’s assets and properties, including the inventory specifically financed with the line of credit, in order to secure repayment of the obligations. When vehicles are sold, the sale proceeds may be sent directly to
an excellent means to expand your selection of desirable offerings to prospective clients. Without the benefit of a flexible floor plan, purchasing from these sources can be a significant drain on your cash flow. A flexible floor plan line of credit may be the solution to cover these various inventory types without drawing on your cash reserves.
the lender to reduce or pay off the related loan balance. When a vehicle is sold, the related advance must be satisfied. Depending on the terms of the floor plan agreement, the dealer may be required to pay off a specific advance before the vehicle is sold. Whether buying new or used vehicles, a flexible floor plan allows you to finance trade-ins, auction purchases, wholesale units, dealerowned inventory, and even private owner purchases. These sources of inventory can be
The ability to floor plan vehicles from anywhere at any time is essential. Whether from your office, on your smartphone or from your tablet, you need that level of flexibility. Today’s technology offers dealers 24/7 access to floor plan services via mobile apps and online accounts. The more flexible your floor plan line of credit, the better chance you have of saving time and money. It is strongly recommended that you pay close attention to the length of time taken by your floor plan pro-
vider to service your requests. You should expect and receive timely and efficient service. A flexible floor plan line of credit may help free up cash for other expenses, and should also help you continue operations without the added strain on your cash reserves. Using flexible floor planning can allow you to create a cash reserve for unexpected downturns. Cash reserves can significantly reduce the negative impact of lethargic economic periods. A strong cash reserve keeps you flexible and able to quickly react to market fluctuations. Last but certainly not least, is the all-important level of customer service your floor plan company provides you. It is important that the company you select has a vested interest in serving the industry. A floor plan lender that offers these products or services, and does so with a sincere dedication to your business and the industry as a whole is worthy of your consideration. The simplicity of the service should help you free up time you need to focus on attending to other tasks and growing your business.
Need More Cash?
www.sellbhph.com At Flex Capital Corporation, we help dealers turn their buy-here/pay-here receivables into cash. Current, Past Due, BK notes.
Weekly, Biweekly, or Monthly notes.
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We offer Fast Pricing...and even Faster Closing!
Contact us at: 702-659-9100 or email email@example.com
10/28/13 10:22 AM
10/24/13 11:53 AM
Â…Ă›Ă?Ă›Ă›November 4, 2013
Special Advertising Section
USED CAR NEWS
Online or In-Lane, CFAA Has it All In an evolving effort to provide dealers the best marketplace to buy and sell vehicles, Columbus Fair Auto Auction has added a 3-lane Monday Madness sale and a unique Simulcast Suite auction venue to its weekly line-up. All vehicles are available for preview and bidding both online and in-lane. Monday Madness This new sale starts at 3 p.m. every Monday, featuring rental/fleet units in Lane 1, dealer consignment units in Lane 2, and as-is units in Lane 3. Smart dealers are using this opportunity to jump start their week at CFAA. Auction Everywhere Auction Everywhere is a virtual auction held every Tuesday at 1 p.m. EST. The Auction Everywhere format allows inventory to stay grounded and â€œretail-readyâ€? while being presented in a virtual auction. Using proprietary technology, Columbus Fairâ€™s Auction Everywhere (CFAE) staff can accept a feed of inventory and images. They will also visit a dealership to create listings. Auction Everywhere offers dealers the choice of sitting in the â€œSimulcast Suiteâ€? on CFAAâ€™s second floor, or they can log into the sale through the AWG simulcast platform. Typically, up to 130 front-line ready vehicles are available for sale. All buy
and sale fees are flat rated at $175, regardless of the cost of the vehicle, garnering the attention of both buyers and sellers alike. Wednesday Sales Columbus Fairâ€™s flagship Wednesday sale has 11 action-packed lanes, all equipped with multiple high definition cameras that can be toggled through the AWG Simulcast application. More than 90% of the vehicles presented each Wednesday have a minimum of 10 pictures and the majority have condition reports available. On any given Wednesday, over 1,000 bidder badges are issued. Almost 200 registered users from 33 different states attend via AWG simulcast. The typical lane composition runs from rental cars and fleet lease to dealer consignment, both late model and as-is. Once a month, CFAA hosts a â€œfloatâ€? sale, extending payment terms to 30 days. CFAAâ€™s public repo sale starts each Wednesday at noon, often running in multiple lanes. As an authorized GSA auction, CFAA hosts a monthly sale, also available to the public buyer. Beyond the Lanes Columbus Fair facilities include: Ć€É&#x; Secure 90-acre auction facility and
QUIT CHASING YOUR INVENTORY! Get Vehicle Protection from Payteck!
44-acre satellite storage lot, with embraced selling online by leveragguard gate ing the AWG Simulcast platform for Ć€É&#x; 11 lane auction building with admin- online bidding. istrative offices and convenient AWG Simulcast supports 125 aucintake facility tions throughout the United States, Ć€É&#x; All lanes are equipped with mul- Canada and Europe. tiple, high definition cameras Itâ€™s an easy-to-use interface that is Reconditioning intuitive and best-of-class technology. Columbus Fairâ€™s reconditioning deEvery vehicle registered at CFAA is partment is capable of detail work from run through our indoor photography highline to simple wash and vac. With center. A minimum of 10 pictures are 70 employees, the department has the taken of each vehicle. capacity to detail 300 cars a day. Most vehicles also have access to Mechanical Repair Columbus Fairâ€™s proprietary condiColumbus Fairâ€™s mechanical shop tion report. is a 10,000 square foot facility with These condition reports provide the 13 service bays, each with its own lift. online credibility that assure buyers With eight mechanics, the department they are â€œvirtuallyâ€? touching and feeling offers services ranging from simple the car online. oil changes, radiator and transmisWhann Technology Group sion flushing to complete engine or Dealers can leverage all available techtransmission replacement. nology assets to make their buying and Collision Services selling process efficient and profitable, Sixty employees work two shifts daily including using Whann Technology at the 56,000 square foot body shop. Groupâ€™s suite of online listing tools The impressive facility boasts 48 bays and condition report writing tools. and three state-of-the-art paint booths Whann Technology Group also with down drafts. offers an entire suite of technology Columbus Fair Auto Auction remains applications. poised to help dealers drive sales by These products utilize mobile matching dealer demand with avail- technology to produce condition able supply. reports and register vehicles for the sale. Online Simulcast The applications also create listings 2013_SDA Ad_UCNqtrpg.pdf PM Columbus Fair Auto Auction9/11/13 has for12:40:19 a variety of remarketing channels.
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10/28/13 5:01 PM
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10/28/13 3:58 PM
ÛÝÛÛNovember 4, 2013
Special Advertising Section
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. The PT2000 is 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 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. Call PayTeck at 1-800-880-3081 or visit: payteck.com
Keep those BHPH Customers Paying at Your Lot – Here’s Why… Studies show that almost 50% of dealership sales are from repeat and referral business. Savvy dealers really get to know their customer base – because those same customers will bring them more customers. Buy-here, pay-here dealers work really hard to bring customers to their lot – why would any buy-here, pay-here dealer disrupt that valuable customer interaction? Outsourcing your collection efforts by either selling off your accounts or hiring a third party to collect them may not be the smartest idea. Dealers do all they can to KEEP
their customers – not give them away. The tricky part is trying to feed a cash hungry machine called buy-here, pay-here and build your customer base at the same time. For over 23 years Small Dealer’s Assistance (SDA) has been the answer for dealers nationwide who want to control their customer base yet need to occasionally raise cash to keep their buy-here, pay-here business growing. SDA allows dealers to continue collecting their accounts and build their loyal customer base – unlike other buy-here, pay-here capital providers.
SUBPRIME LOANS REPRESENT OVER 33% OF VEHICLES SOLD TODAY. How much of that very lucrative slice of the sales pie are you getting? Go Financial has created a subprime lending program that puts you in control. It’s an end-to-end solution that provides up-front profit and future cash flow streams. And best of all, every loan is purchased non-recourse and there are absolutely no sign-up fees. Take the headaches out of making your subprime finance deals work. Sell more cars. Make more money.
USED CAR NEWS
The Future of Wholesale Remarketing Technology Wholesale remarketing – in lane or online – keeps getting easier. Sellers are taking advantage of electronic condition report data and photos, along with new tools that allow the broadcast of each vehicle to multiple platforms. They are increasing inventory exposure, getting more buyer ‘eyeballs,’ reducing days in inventory, and realizing the greatest value for every vehicle. If you are like many of the nation’s vehicle wholesalers, your process relies on a foundation of carefully selected physical auction partners as the cornerstone of a successful remarketing program. The lines between online and in lane are blurring.
Sellers need to have integrated tools to manage vehicle storage, transportation, repair authorizations, vehicle valuation, repossession law compliance, sale settlement and reporting. Unfortunately, spreadsheets and manual processes continue to rule
the day for many. Errors are frequent and often go uncaught thanks to lackluster reporting tools and inconsistent processes. Do you have one source of the truth? The end of the spreadsheet era may be in sight. These are just a few of the questions savvy remarketers are asking: ƀ Do I have an interactive dashboard for my entire wholesale inventory across all sales venues in one place? ƀ Can I easily drill down to see all pertinent vehicle details and history throughout the vehicle sales lifecycle? ƀ Do I have detailed reporting and analysis to effectively measure and manage remarketing performance? Sellers with any noticeable volume of vehicles who don’t have good answers to these questions can take a positive step in the right direction today by learning about AutoIMS.com. With over 500 member auctions AutoIMS.com has evolved considerably over the past 15 years. Over 1,200 sellers use the system to connect, communicate, and manage through the remarketing process. AutoIMS brings proven technology and process expertise to sellers of all sizes and shapes. As with most good technology partners, a great deal of value is derived from the consulting that comes with the software platform for which AutoIMS is known.
Can someone, for the love of profitability, tell me how to turn more of my subprime apps into cash?
Visit gofinancial.com/news for the whole story or call us at 888-GOFINANCIAL for a quick demo.
10/24/13 12:03 PM
USED CAR NEWS
Special Advertising Section
November 4, 2013ÛÛÝÛÛ~
2G Sunset: What It Means to the Automotive Industry On the surface, the automotive and wireless communications industries appear to have little in common. But recent announcements by a handful of major wireless carriers generated some concern in the automotive finance market. AT&T was the first to publicly declare its plans to phase out all of its 2G GSM wireless service by the end of 2016. Several other carriers have also announced plans to eventually sunset 2G, though not as aggressively or as quickly as AT&T. The reason for the push for 2G sunset is simple: wireless carriers are looking to “refarm” the towers in their network for 3G and 4G service that delivers much faster speeds and larger bandwidth. There are some downsides to the 2G sunset, however, specifically for the automotive finance industry. 2G (second generation) is the cellular technology behind the vast majority of machine-to-machine (M2M) devices used by businesses across a wide range of industries. Members of the automotive finance industry currently mostly use 2G devices for their vehicle tracking efforts. As of today, 2G offers the lowest price point for the widest coverage. While slower than 3G and 4G networks, 2G data speeds are more than enough to meet the needs of most
GPS vehicle tracking system users. So when the news came that carriers like AT&T plan to retire 2G, many providers and users of GPS vehicle tracking systems voiced their concerns. Before panic sets in, let’s take a closer look at what the 2G sunset really means for the automotive finance industry. First, it is important to differentiate between the two mobile communication standards used by major carriers today for 2G: GSM and CDMA. GSM is the most common mobile communication standard used throughout the world, making it a popular choice for businesses that need to track assets that move across borders, but its main downside is that 2G GSM devices will be the first to become obsolete. CDMA is adopted by five of the seven top cell phone carriers in the U.S. Compared to GSM, CDMA provides greater coverage in the U.S. and Canada, higher security, more reliability and better quality of services, but its drawback is its lack of coverage outside the U.S. and Canada. The truth is, the complete demise of 2G is farther away than it seems. While AT&T has been vocal about its plans to shut down 2G GSM by the end of 2016, many other wireless carriers have been less hasty.
Sprint and Verizon have all publicly said they will continue to support 2G CDMA, while T-Mobile has also stated their continue support of 2G GSM well into the future. All wireless carriers, AT&T included, have vowed to work closely with device providers and their end users to ease the transition from 2G to 3G and eventually 4G. The fact is, demand for 2G remains high. As long as the demand is there, wireless carriers will continue to support 2G. But that doesn’t mean you should just sit back and ignore this topic all together, either. Now is the time to start planning a migration strategy that will minimize the impact on your business operations and bottom line. The first step is to talk to your solutions provider to understand their future roadmap and migration strategy. Be sure you’re asking your provider the right questions about your current wireless carrier and technology, and how long the carrier plans to support that technology. Find out if your provider plans to take a phased approach that eases your transition to
next-generation cellular technology to ensure you continue to enjoy wide coverage without dramatically increasing your costs. Beware of the provider who pushes you to jump ship to 3G right away — before the costs come down and the service is widely available. Your provider should clearly explain all the technologies available and help you identify the right technology for your needs, and develop a practical plan for moving you toward newer technologies. At Spireon, we’re collaborating closely with major wireless carriers to offer flexible solutions that protect current 2G investments while paving the way for a seamless migration to next-generation networks through its leading brand GoldStar GPS. Contact Spireon today to discuss your migration strategy. Call (866)-655-8825 or visit www.spireon.com.
10/25/13 6:32 AM
ÛÝÛÛNovember 4, 2013
Special Advertising Section
USED CAR NEWS
Disclose the Use of GPS Devices By Jeff Karg, Director of Corporate Communication
In today’s technology driven world, using GPS to track assets as well as collection technology to help customers make their payments and assist in vehicle recovery is a common practice. Informing the consumer of the device, how it operates, and how it will be used by is essential to maintaining a good customer experience and addressing compliance and liability concerns for the lender. PassTime, a leading provider of GPS tracking and automated collection technology devices takes compliance seriously. The company provides written disclosures free of charge and also takes measures to stay involved in state and federal legislation impacting the industry. If you are not disclosing, your argument against it is either the customer will object to the device and you will lose a sale or the customer will tamper with the device if they know it is in their vehicle. There are two reasons that you should be fully disclosing these devices. First off, it’s a good business practice. Disclosing the device in a positive way can help get “buy-in” from the customer, which can reduce the
likelihood they will become delinquent. Many technology providers offer written disclosure forms for lenders to have customers sign at the time of installation. These documents provide information about the devices, how they operate and what responsibilities the customer has in relation to the devices. A signed consent is the best way to ensure that the customer understands and agrees with the use of a device. Additionally, a benefit of disclosure is the psychological aspect that affects a customer who knows a device is installed on their vehicle. When a customer knows their vehicle has a GPS device that can determine their location and/or prevent them from driving if they do not stay current on their loan, they have good incentive to make payments. If you don’t disclose the device, this psychological tool disappears. A recent, independent survey study conducted by the National Alliance of Buy-Here-Pay-Here Dealers (NABD) addressed the issue of disclosure. 94% of NABD survey respondents indicated that they use written disclosure forms from device providers. You may think you will lose customers if you tell them about the device.
The NABD survey study found that customers rarely object to the device. Specifically, only 1% answered that their customers objected to a device as a condition of financing. Disclosing is a good business practice, and customers rarely object to the device as a condition of their loan. The second and most important reason to disclose the use of GPS and collection technology devices is to reduce your legal liability. The type of device you are using and its features may determine how far your legal obligations go with customer disclosure. Right to Cure laws, Consumer protection acts, Consumer Privacy Acts, could open you up to legal issues such as fines or even civil action if you don’t disclose the use of the device. Even if you are reluctant to disclose based upon the possibility of tampering, the risk of legal liability greatly outweighs it. Tom Hudson, partner at law firm Hudson Cook LLP encourages disclosure. “Every state that has legalized devices by statute has also required a dealer or finance company to disclose that a vehicle has been equipped with a device. “Further, more than one state has fined dealers for failing to disclose the devices for engaging in an unfair,
deceptive or abusive act or practice. You’d have to be brain dead not to disclose the presence of the device,” he says. Additional interest in the buyhere, pay-here industry by various governmental agencies has brought legislation to the books in California and other states, seeking additional regulation on the industry. While there may not currently be a law in your state that expressly requires the disclosure of the device, there could soon be. It makes sense to get ahead of any additional regulations and cover your business before it becomes an issue. Having a customer sign a written disclosure helps reduce the liability of your company that could prevent a lawsuit or other type of consumer complaint. It is also a good business practice, increasing the likelihood of repeat or referral business. The NABD survey proves customers rarely object to the installation of a device as a condition of a loan. Many device providers offer dealers access to disclosure forms they have created, so you’ll not likely need to create your own. To find out more about how PassTime devices can help you stay compliant, contact us at 877-727-7846 or firstname.lastname@example.org.
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>>>>>>> > >> Point your camera at any vehicle identification number (VIN), and the app loads the vehicle into your inventory.
>>>>>>> > I Run CARFAX®, AutoCheck™ and NMVTIS title reports or look up Black Book® values from anywhere—even the auction.
>>>>>>> > Browse your lot by make and model, and make edits to your vehicle details.
>>>>>>> > > Need help with any of our products? Access our tech support line in seconds for expert assistance.
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10/25/13 9:09 AM
November 4, 2013ÛÛÝÛÛ
Special Advertising Section
USED CAR NEWS
Mobile App Makes Dealerships More Efficient The best technology makes life simpler. That’s why dealers love AutoManager.Mobile. With this free app for Android and Apple smartphones and tablets, you can take cars from the lot to the Web faster than ever. AutoManager.Mobile takes pictures of each vehicle, scans and decodes the VIN, runs title/history checks, conducts Black Book valuations then beams all that information back to WebManager, AutoManager’s online marketing platform. From there, your listings can be sent to more than 100 popular vehicle marketplaces or copied
into DeskManager dealer management software, where you can build a deal. “Online marketing is essential to the modern dealership,” AutoManager CEO Kami Tafreshi said, “but it requires maintenance to really succeed. Now that you can take care of these things right from the auction with an easy-to-use mobile app, you won’t be chained to a computer all day updating listings and researching inventory values. It saves dealers a huge amount of time and money.” To learn more or download AutoManager.Mobile, visit www.automanager.com.
Find the Capital for Tax Season Inventory It is difficult for many operators to maintain desired inventory levels for their normal course of business and at the same time plan ahead for tax season, especially with record inventory prices. With a fixed dealership size and a steady level of capital in the business, it is challenging to keep the lot full to be properly prepared for seasonal fluctuation in sales volume. You most certainly do not want to miss those golden sales opportunity days. Luckily, additional capital is available in the marketplace for inventory financing – for all dealers, big and small. Acquiring a new or additional credit
facility will allow a dealer to reach beyond their current capital limitations and buy cars in preparation for tax season. You have to have cars to sell cars. In the next couple of months, consumers will receive their tax refund checks, and they will be in their best position to buy. Expand your capital resources far enough in advance so you have everything in place to take advantage of the most predicable sales season in the used car industry. Visit www.VACorp.com/UCN or call 888-573-4248 for information regarding our floorplan today.
Turn Your Notes into Cash Supplies to Enhance Your Business to buy the lot your dealership is on? At Flex Capital Corporation we help dealers solve these concerns every day. We help buy-here, payhere dealers turn their auto notes into cash. We help provide the capital to stock up on inventory, pay off existing loans and flooring lines, or to increase advertising to drive more customers to your lot. Whatever your cash flow need, Chris Shearer, with Flex Capital Corporation can help. Call Chris at 702-659-9100.
Have you ever thought, “I have too much cash on hand, I wish I had less.” Of course not! Running an independent dealership takes a lot of cash flow. Floor plan expenses, advertising expenses, parts and mechanical shop needs – the list goes on and on. If you were able to access more cash, you could take control of your inventory needs and costs. Have you ever thought of opening another location, only to decide the startup costs are too much right now? What if you could access the cash
SSW Dealer Supply is a new affiliate of Store Supply Warehouse. SSW Dealer Supply maintains a sharp focus on the always growing, ever changing auto sales industry. The business includes an online website and catalog of merchandise for dealers to enhance their business. With a wide range of products including (but not limited to) die cut window numbers, message flags, dealer signage and service department supplies, SSW Dealer Supply’s
showroom and warehouse are both located in Bridgeton, Missouri. Showroom hours are MondayFriday 7:00am-5:30pm and Saturday 8:00am-12:00pm. Orders received by 3:00 pm CST are shipped the same day, and usually are filled within minutes of receipt. SSW Dealer Supply also offers a vast variety of custom products. Their friendly customer service representatives can be reached at 800-269-9704 or visit them online at www.sswdealersupply.com.
Side by Side Income Comparison! BHPH vs Northland’s Lease’T’Own® Buy-Here-Pay-Here Don’t Forget to deduct the cost of Bankruptcies & Repossessions from this total!
End of Year 1 End of Contract Cost of Cars NET PROFIT
$55,920 End of Year 1
$846,370 End of Contract
- $570,360 Cost of Cars $276,010 NET PROFIT
Analysis Assumptions: 10 cars per month for 12 months (Jan—Dec). The average cost per vehicle is $4,753.00. The average weekly payment is $86.00 per week . The average length of contract is 31 months Taken from the National averages for 2011. SOURCE: NADB-NCM
Get your “No Obligation” Profit Analysis based on your Federal and State Income Tax rates.
- $570,360 $380,570
CASH IS KING No Bankruptci es! No Repossessio ns!
Lease’T’Own® Additional Benefits Complete Turn-Key Program Training & ongoing support included 20+ Years of Experience We track your customer’s insurance status! PROFIT…..PROFIT…..PROFIT!
r Registe for our FREE r! Webina
10/24/13 12:46 PM
ÛÝÛÛNovember 4, 2013
Special Advertising Section
USED CAR NEWS
Maximize Your Productivity with Work Queues We all have a daily routine. Whether it’s the way we brush our teeth, the route we take to work, or the workout we do at the gym– we’re all creatures of habit. Our routines at work are no different. We come to work and do a similar variety of tasks each day. In collections this is especially true. How can we structure our tasks to work efficiently and effectively? The key is organizing your collection workload so you’re contacting the right customers at the right time. How do you do this? The traditional approach is to run a series of reports.
You pull the data, print the report and go through accounts one by one. However, as soon as you need to call the customer, you leave the report, look up the customer and make notes on your DMS. What if the customer wants to make a payment or they refuse to pay and now you have to place them out for repo? As soon as a customer calls in and a change to their account is made, your report is now dated. You don’t have the most live up to date information that you need. Who wants to call a customer to ask them for payment only to have them tell you they just made it 5
800·482·7357 x767 | GWCwarranty.com
minutes ago online? A report has provided you with nothing but a static list of names and information. The better way is a system generated interactive work list, or queues as we like to call them, giving you the ability to take action and document your efforts all from the same screen. These types of lists can be used and accessed all throughout your dealership. You now have the ability to take payments, make notes on accounts, and email customers right at your fingertips. Maybe you need to manage your aged inventory, or pull up a list of
customer prospects. Maybe you’d like to send a welcome letter to your new buy-here, pay-here accounts, or perhaps you want to work and review your first payment defaults. Whether its managing collections, sales or inventory, queues are an effective way to quickly and easily see the job at hand and take the appropriate action. We’re all looking for ways to streamline our processes, save money and making the best use of our time. Queues ensure consistency while maximizing productivity and efficiency in your dealership.
At GWC, we cover the entire USA from coast to coast. There are so many good reasons to ride with GWC: COVERAGE: With over 800,000 claims totaling $300,000,000 paid to date, you can rest easy knowing your customers will be covered
Maine PortlandOregon egon Portland
CONFIDENCE: We’ve been preserving peace of mind for over 1.4 Million drivers since 1995
ParisIowa wa ParisTexas
TRUST: We’re a valued partner of over 20,000 franchise and independent dealers nationwide for more than 18 years and counting SUPPORT: We’re backed by companies rated A or A- (Excellent) by A.M. Best STRENGTH: Owned by Stone Point Capital, a Connecticut based private equity firm with over $9 Billion under management JUST GO!: You can be assured your customers will have “No Worries. Just Drive”.
10/28/13 10:22 AM
10/25/13 3:41 PM
FLIP YOUR DINNER AND YOUR USED INVENTORY, ALL AT THE SAME TIME.
With the SmartAuction® mobile app, you can run your life and your used vehicle inventory together. Conduct basic or advanced searches. Access saved searches from your profile. Place bids. View and respond to pending offers. Update price and auction status. And much more. All from virtually anywhere. Download the app for your iPhone® or Android™ mobile device at allysmartauction.com/mobile. Or call 877-273-5572 to learn more.
SmartAuction Mobile App from
©2013 Ally Financial. All rights reserved. SmartAuction is a registered service mark of Ally Financial Inc. iPhone is a registered trademark of Apple Inc. Android is a trademark of Google Inc.
9/9/13 4:12 PM
10/28/13 9:27 AM