Used Car News 11/5/12

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November 5, 2012

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DETROIT – The Consumer Reports Auto Reliability Survey for 2012 saw Ford slip dramatically while Audi and Cadillac were on the ascent.

Ford tumbled to the nextto-last position among the 28 car brands ranked by the independent product testing organization, while Lincoln was number 26.

Cadillac was up 14 places to number 11 and Audi soared 18 spots to eighth position.

Jaguar continued to occupy last place.

“Sixty percent of Fordbranded models and half of Lincolns were below average in predicted reliability, and none placed above average,” Jake Fisher, director of automotive testing for Consumer Reports told members of the Automo-

tive Press Association.

The most recent annual reliability survey is based on subscribers’ experiences with 1.2 million vehicles.

Consumer Reports is primarily interested in the pluses and minuses of cars built within the last three years for its projection of the reliability of these nameplates going forward.

It bases its predictions on subscriber feedback.

In spite of record recalls and multiple problems, Toyota excelled in the latest ratings. Scion, Toyota and Lexus nabbed the top spots among the 28 brands.

Mazda, Subaru, Honda and Acura took the next spots.

All top seven had average STILL AN ISSUE: Ford’s much hyped MyTouch system continues to cause the automaker problems or better reliability, accord- in quality rankings. Last spring’s J.D. Power Intial Quality Study reached the same results as the newly released findings from Consumer Reports. ing to Consumer Reports.

Audi had its best show“came out of the gate with tainment system hurt the bos are showing signs of ing ever and earned the more problems than nor- company’s ratings. problems, Fisher said. title of most reliable Euromal,” Fisher reported.

Chrysler, Jeep and Dodge Their listed fuel economy pean make and the top nonThis was based on feed- all were down this year, ratings don’t always jive Japanese product. back from Consumer though Consumer Reports with the real-world numThe German automaker Reports subscribers who did put the Chrysler 300C bers. bested rivals Mercedesparticipated in the survey. with V-6 and the latest Ram The survey, he reiterBenz and BMW; they ocNissan in general did not pick-up truck on its recom- ated, is based on problems cupied 14th and 16th places fare well in the 2012 survey. mended list. respondents have been respectively.

Ford’s dual-clutch PowDodge’s Challenger and having with their vehicles.

Six of seven Audis in the erboost transmission and Charger and Jeep products “They tell us exactly what survey rated average or its beleaguered MyFord were on the “not” list. they think about their cars,” better; and l0 of 12 BMWs. To u c h c o m f o r t / i n f o Small-displacement tur- Fisher said.

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USED CAR NEWS

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Leasing Returns as Financing Option

By Ted Craig

Leasing is once again being considered as an alternative for buy-here, payhere dealers.

AutoStar recently added leasing tools to its dealer management software.

AutoStar CEO Allen Dobbins said the move was demand driven.

The pros and cons of moving into this form of finance were discussed at the company’s recent users conference.

“Leasing is very state and even county specific.”

Michael North Bob Oakley, owner of Oak Motors in Indiana, switched two of his five operations to leasing from buy-here, payhere in the past few years.

Oakley said he started of-

fering both sales and leasing at these stores, but consumers almost always opted for leasing.

The biggest hurdle for used-car leasing of any kind has always been the uncertainty of residuals. Projecting a car’s value at end of term has proven challenging enough on the new-car side, which has a set starting point.

Dobbins said the values of traditional buy-here, payhere cars are so low the downside risk of missing the residual value is low.

Dobbins said the minimum a dealer can set for a residual is 10 percent, but he recommends staying above 20 percent to avoid regulatory issues.

George Klinkey, director of business development for LHPH, said leasing allows dealers to offer higher end vehicles, just as newcar leasing favors luxury marques.

Dealers who lease like it because they retain ownership of the vehicle.

There are also tax advantages in certain states. That is what attracted Oakley

to leasing.

Michael North, a C.P.A. with Katz Sapper & Miller, said dealers need to evaluate the tax situation in their own states before deciding to enter leasing.

If a dealer decides to move into leasing, taxes are just one of many areas to consider.

Attorney Nicole Munro said leasing falls under an entirely different set of federal regulations from retail installment contracts: Reg M vs. Reg Z. Munro said article 2A of most states’ commercial code usually applies to leasing.

Leasing may require special licensing in some states.

“Leasing is very state and even county specific,” North said.

It also requires different insurance.

Oakley said dealers need to make sure their accountants and attorneys are familiar with leasing regulations.

Leasing a car requires a different skill set from selling a car, Dobbins said.

The entire dealership staff needs to understand

the product and commit to the process.

Capital sources like leasing less than traditional financing.

Very few will fund it, Dobbins said, although more are dabbling.

Dealers also need additional insurance if they start leasing.

Oakley said he is very enthusiastic about leasing despite these challenges.

But he said dealers need to make a full commitment.

LIKING LEASING: AutoStar Solutions CEO Allen Dobbins explains some of the new features of the firm’s DMS, including leasing capability. More dealers are considering leasing as an alternative to buy-here, pay-here.

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10/30/12 12:27 PM

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USED CAR NEWS

NEWS BRIEFS Used Car Chains Expand

Both of the publicly traded usedcar chains recently opened new stores.

CarMax Inc. opened its first auto superstore in Oxnard, Calif.

The newest CarMax is more than 41,000-square-feet, occupies more than 12 acres, employs more than 40 associates and stocks approximately 300 used vehicles.

The superstore group also moved in the Iowa market with a store in Des Moines. The store is more than 44,000 square-feet, employs more than 60 associates.

Buy-here, pay-here chain Americaâ&#x20AC;&#x2122;s Car-Mart announced the opening of its 117th dealership, which is located in Oxford, Miss. This is the chainâ&#x20AC;&#x2122;s fourth location in the state.

CPO Programs Add Histories

Two certified pre-owned programs announced deals with vehicle history companies Ford and Carfax have agreed to provide Carfax Vehicle History Reports for the Ford and Lincoln Certified Pre-Owned (CPO) programs.

Starting Jan. 1, Ford and Lincoln Certified Pre-Owned Vehicles will

MILESTONES Matt Marks, long time executive director of the International Automotive Remarketers Alliance, died Oct. 28 from a heart attack.

Marks was the original director of IARA, overseeing the organizationâ&#x20AC;&#x2122;s expansion and establishing it as a voice within the remarketing industry.

Earlier in his career, Matt had been president of ITS (the inspection company now known as SGS).

The executive director of Ontarioâ&#x20AC;&#x2122;s independent dealers association has died.

Along with six other used car ad.pdf 1 10/25/12 dealers, AAA_GSA-UCN Bob Beattie founded the

Used Car Dealers Association in 1984. Since then, Beattie has transformed it into one of the largest motor vehicle dealer associations in North America.

He was influential in development and implementation of industry self management in 1996 and the new Motor Vehicle Dealers Act regulations.

C R O S S WO R D

by Myles Mellor

PAGE 21 2:29 PM

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BMW of North America has named Experian Automotiveâ&#x20AC;&#x2122;s AutoCheck as a provider of vehicle history reports for its BMW Certified PreOwned and Mini Next programs.

BMW and Mini dealers certifying vehicles with an AutoCheck report may extend their customers Experian Automotiveâ&#x20AC;&#x2122;s buyback protection, which safeguards against major hidden title brands on AutoCheck Assured vehicles.

gun its full-scale launch as a national third-party servicer of subprime automotive loans.

LPS specializes in helping start-up finance companies and those with small- to mid-sized portfolios.

LPS has actively serviced loans since January 2011 and is currently managing approximately $50 million in auto portfolios.

Each client receives daily customized reporting as well as real-time access to performance data.

CEO Scott France is an industry veteran with more than 25 years of loan servicing experience at Triad Portfolio Company Launches Financial, AmeriCredit and World Loan Portfolio Servicing has be- Omni.

Published By General Media LLC (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: Emily Caswell, Sheila McGrath, Jenny KIng 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&#x20AC;&#x201D;â&#x20AC;&#x201D;â&#x20AC;&#x201D;

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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.

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USED CAR NEWS

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Dealers Must Go Mobile

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By Jeffrey Bellant

Eight out of 10 auto shoppers use their smartphone to shop; so independent dealers need to embrace this technology now.

John Possumato, founder and CEO of Automotive Mobile Solutions, cites some other eye-popping numbers to show the opportunity for marketing via smartphones and tablets.

For example, one survey shows the number of consumers that used mobile Internet in 2012 jumped to more than 104 million from more than 62 million in 2009.

The figure is expected to reach 135 million by 2015.

Gartner, a technology research firm, predicts most people will access the Internet via a mobile browser by next year.

Possumato said mobile Internet use is almost as high inside the home (89 percent) as outside at 93 percent.

Possumato compared this market to what the Internet was a few years ago. Dealers who embraced the Internet back then were ahead of their competitors who were slow to respond.

Now, the same is happening with mobile tech.

Nearly half of mobile auto shoppers used a mobile device for initial research and about a quarter of shoppers used tools to: review financing; contact a dealership; look up promotions; and research safety information.

More importantly, 44 percent use their device to compare prices while on the lot and nearly half looked up dealer information on a mobile device.

Possumato said the critical factor is when customers are on a mobile phone, they are most likely already on a lot.

“You’ve got shoppers, not browsers,” he said.

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The opportunity for business is especially high with the millennial generation, Possumato said.

One study showed people ages 13 to 24 text much more than make traditional calls.

Possumato added that 31 percent of U.S. mobile customers prefer offers via text message than any other method, according to one study.

Typical tools used with mobile marketing include: mobile web sites, mobile apps; text messaging; customized QR codes; even window sticker texting.

Customers can contact dealers through a “click-to-call” button, where they can immediately connect with a dealer via text or phone call.

Possumato said a dealer’s mobile website should be different than the regular website. The size, scale and even the content must be customized for a mobile screen.

The site should show inventory and detailed listings, along with communication via texting, clickto-call and email.

Dealers should offer TextChat, a short messaging service that allows them to chat one-on-one with a customer and capture a customer’s cell number. A dealership manager can use it to see the text between customers and staff. The dealer can also archive those conversations and place the information directly into their CRM program.

Possumato said texting draws a much faster response than emails.

He said while email responses may come within 24 hours, with a response rate of 15 to 20 percent, about 97 percent of those who respond to a text do so within 15 minutes.

Separate from a mobile website, a dealer should have a dealership app, since it can provide specific tools that utilize smartphone technologies, such as geolocation.

Continued on next page

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USED CAR NEWS

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Having “push notifications” are important with an app. With a customer’s permission, these would allow the app to send automatic updates on sales, for example, or service updates.

An app should provide customers with tools that can do everything from find the cheapest gas to find the nearest parking lot.

While it seems like a lot of work, Possumato said the cost is small compared to the benefits.

“Unlike marketing and promotion in the past, mobile marketing requires skill, not the most capital, to

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win,” Possumato said.

For example, key words used in mobile marketing are actually less expensive than those used in a traditional non-mobile search.

Dealers can install a platform and the tools required for about $1,000, and maintain it for under $1,000 per month, Possumato said.

He said some of the best dealers integrate mobile marketing with their traditional advertising.

Adding a text keyword to a television ad can bring an immediate response, one that can be tracked and stored.

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PAGE 8 - BHPH Spotlight

Dealer Followed Dream Martin Ingram always wanted to sell cars, but his parents pushed him into something more respectable.

He went into the insurance business instead. Then one night in 1958, he saw a Ford for sale priced at $55 on his drive home.

Ingram knew the price was too low. He bought the car and sold it the next day for $165.

He quit his job and told his wife that he was going into the used-car business. What is more, he was going to finance the sales himself.

She gave her approval despite a new baby and a new mortgage.

Then Ingram went to two high school friends who worked at a bank. They also gave their approval, this time for a loan.

Ingram proved worthy of all these peopleâ&#x20AC;&#x2122;s trust. He

grew his business into what is today Auto City, a group of used-car stores in Dallas.

Ingram died in 2010, but his son Blake still runs the operation. Blake Ingram was on hand last month when the National Alliance of Buy-Here, Pay-Here Dealers inducted his father into its hall of fame. â&#x20AC;&#x153;His Southern manners and soft-spoke style hid a toughness,â&#x20AC;? said dealer Ingram Walters in his induction speech.

Ingram earned through more than his own success.

He helped many other dealers in Dallas over the years.

Ingram served as a mentor, but he went beyond that. He financed many other dealers in the area.

Blake Ingram said his fatherâ&#x20AC;&#x2122;s strong personality carried over to his private life. Blake Ingram shared the story of the time he

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was in college and developed a crush on a girl who was already engaged to

somebody else.

His father said to him, â&#x20AC;&#x153;Sheâ&#x20AC;&#x2122;s not married yet.â&#x20AC;?

Today, Blake Ingram and that girl have been married for more than 20 years.

Payment Devices Now Mainstream

By Ted Craig

ATLANTA â&#x20AC;&#x201C; Payment assurance technology has come a long way and is now common in subprime finance. So common that the technology creates new challenges of its own.

A panel at the recent National Alliance of Buy-Here, Pay-Here Dealers conference looked at the current state of starter-interrupt and GPS devices.

These devices are an extension of the cell phone industry. The prices of payment assurance devices have declined over the years as a result.

There remain differences in quality, however, and the price of various units reflects that.

Kevin Christensen of CalAmp asked dealers if they really wanted to save a few dollars on a device designed to protect an asset worth thousands of dollars.

Mark Behnke of Spireon reminded the audience that several low cost providers failed to make the switch to digital service when analog phased out.

This left dealers with hundreds of useless devices. â&#x20AC;&#x153;If the company is not there tomorrow, the device isnâ&#x20AC;&#x2122;t functioning,â&#x20AC;? Benke said.

Alan Rumm of iMetrik said another way payment assurance devices were like cell phones is dealers expect them to do more all the time.

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Payment assurance providers are adding new features all the time, such as parking histories.

Still, the companies donâ&#x20AC;&#x2122;t need to perform at the same level as smartphones. Thatâ&#x20AC;&#x2122;s why most still use 2G networks.

The technology has changed and so have attitudes toward the devices.

Many finance companies wanted nothing to do with these devices in the early days and refused

to buy contracts for vehicles that had them.

Now dealers are facing the issue of finance companies requiring a different device than the one they use in order to get the paper bought.

Consumers have come to learn to live with the devices as well.

The fear all along was customers tampering with the devices to make them inoperable. Industry studies, however, put the tamper rate at less than 1 percent.

Dealers face logistical challenges the more common the devices become.

Sometimes one will get left on a vehicle sent to auction, for example.

The dealer canâ&#x20AC;&#x2122;t turn on the GPS to find it, even though thatâ&#x20AC;&#x2122;s what itâ&#x20AC;&#x2122;s designed to do, Behnke said.

He recommends working with the auction to track down the buyer.

Sometimes it may turn out the buying dealer uses the same devices and the two can work out a deal.

IRS Ups Audits on Operations

By Ted Craig

The federal government is increasingly looking into auto retail operations and that includes increased dealer audits by the Internal Revenue Service.

Steve Goldberg, a C.P.A. with Houston-based SG&C, said he has seen three times as many audits of buy-here, pay-here dealers in the past year than ever before.

Goldberg said most of the audits focused on related finance companies.

The good news is most of these audits ended well, he said. â&#x20AC;&#x153;As long as you know what theyâ&#x20AC;&#x2122;re looking for and youâ&#x20AC;&#x2122;re prepared, you can have a favorable outcome,â&#x20AC;?

Goldberg said.

Bad debts are the area auditors

seem most concerned about.

Goldberg said dealers must avoid

â&#x20AC;&#x153;As long as you know what theyâ&#x20AC;&#x2122;re looking for and youâ&#x20AC;&#x2122;re prepared, you can have a favorable outcome.â&#x20AC;? â&#x20AC;&#x201C; Steve Goldberg using an arbitrary amount for write-downs.

He said they must use a guidebook

to figure the cost.

Goldberg said dealers must deduct their bad debts in the right year. The IRS is working with state Departments of Motor Vehicles to verify when dealers register ownership of a repossessed vehicle.

The IRS wants to make sure dealers send bad debtors 1099-C forms, as well.

Another area to watch is making sure workers are properly classified.

For example, independent contractors better be just that and not part-time workers.

Dealers who keep up to date can make it through the process fairly easily.

But Steve Carstens, one of Goldbergâ&#x20AC;&#x2122;s partners, said some still operate in the past. www.usedcarnews.com

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USED CAR NEWS

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Toyota is recalling more than 2.5 million model year 2007-2009 Camry, Camry Hybrid, RAV4, Corolla, Corolla Matrix, Tundra, Sequoia, Highlander, Highlander Hybrid, Yaris, Scion xB, Scion xD and Pontiac Vibe vehicles.

The power window master switch assemblies in some of these vehicles were built using a less precise process for lubricating the internal components of the switch assemblies. Irregularities in this lubrication process may cause the power window master switch assemblies to malfunction and overheat.

If the switch overheats, it may melt, possibly resulting in a fire.

Toyota will notify its owners, and dealers will inspect the switch and apply special grease that inhibits heat build up or replace any switch damaged by the defect, free of charge. Toyota owners that experience a problem with a switch should not attempt to make repairs, but should contact their Toyota dealer or the Toyota Customer Experience Center at 1-800-331-4331.

General Motors will contact the Pontiac Vibe owners affected by this recall and GM dealers will inspect and repair switches as necessary.

Those owners may contact Pontiac Customer Care at 1-800-762-2737.

Honda is recalling 268,655 model year 2002-06 CR-V passenger vehicles, manufactured from Feb. 19, 2002 through July 28, 2006. The driver-side power window switch may fail or melt.

If the switch fails, it could overheat, smoke, and cause a fire. A switch failure, and a fire, could occur even if the vehicle is not in use.

As a precaution, owners are advised to park outside until the recall repair has been performed.

Honda will notify owners, and dealers will inspect and repair the switches, as necessary, free of charge.

The safety recall is expected to begin on, or about, Nov. 2.

Hondaâ&#x20AC;&#x2122;s campaign recall number is S61.

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In other recall news, BMW is recalling 7,485 model year 20052007 7-Series vehicles, equipped with both comfort access and soft close automatic options, and manufactured Aug. 23, 2004, through Sept. 3, 2007.

Due to a software problem, the doors may appear to be closed and latched, but, in fact, may inadvertently open.

The door may unexpectedly open due to road or driving conditions or occupant contact with the door.

The sudden opening may result in occupant ejection or increase the risk of injury in the event of a crash.

BMW will notify owners and dealers will update software.

The recall is expected to begin in November.

BMW is also recalling 2,062 model year 2007-08 K1200 S, K1200 R and K1200 R Sport motorcycles.

In certain riding conditions, the brake fluid in the front brake fluid reservoir can foam.

Brake fluid that foams could lead to a reduced braking capability of the front brake system, possibly resulting in a crash.

The front brake fluid reservoir will be retrofitted with a screen insert, free of charge. The recall is expected to begin during November.

This recall is an expansion of safety recall 09V-202.

Chrysler is recalling 44,300 model year 2009-2010, Ram 1500 and Dodge Dakota trucks, manufactured from July 1, 2009, through Nov. 30, 2009, because a rear axle pinion nut may loosen due to a lack of adhesive.

If the rear axle pinion nut loosens, the axle can lock up and cause a loss of vehicle control and/or a vehicle crash with little warning.

Chrysler will notify owners, and dealers will install a pinion nut retainer, free of charge. The recall is expected to begin in November.

Chryslerâ&#x20AC;&#x2122;s recall campaign number is M34.

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USED CAR NEWS

Politics Draws in Industry

By Ted Craig

Manheim economist Tom Webb said at a conference earlier this year that he never factored in government policy when he started forecasting auto sales 40 years ago.

Times have changed.

Participants in the used-car business now find themselves directly affected by actions in Washington.

Representatives of the National Automobile Dealers Association, National Auto Auction Association and National Independent Automobile Dealers Association gathered at the recent NAAA conference to discuss legislative issues.

“Far more often, we have common economic interests,” said David Regan, NADA’s vice president of legislative affairs.

Sandy Esposito, the lobbyist for both the NAAA and the NIADA, said the key to success is knowing the issues and knowing the players. Esposito used the example of a recent attempt by Sen. Mark Pryor (D-Ark.) to add an amendment to a highway bill.

The amendment dealt with access to bidder information at auction.

Pryor sponsored the amendment in response to Federal Bureau of

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Investigation concerns about vehicles being exported out of the country and then sold to raise money for terrorists.

Although the intentions were good, the record keeping required by the amendment would create a major burden for the auctions.

Esposito and NAAA representatives took Pryor’s staff to ADESA DC and showed them how the auctions already can provide much of the data the FBI wants.

NAAA chairman Charlotte Pyle said the amendment could have easily slipped past the association.

That’s why the industry needs to keep a much closer eye on the political process.

Recently the NAAA surpassed its fundraising goal for its new Political Action Committee, NAAAPAC. A benefit raffle held at the NAAA annual conference earlier this month in Orlando, Fla., netted a total of $20,600 from members.

“We appreciate participation in this benefit event (of ) all the members who made our initial fundraiser for NAAAPAC a great success by exceeding our $20,000 target,” Frank Hackett, CEO of NAAA.

We want to be your

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Brandon Steven Operating Partner, Suzuki of Wichita

Brandon’s story ...

“I BELIEVE IN DOING BUSINESS WITH A TEAMMATE. SOMEONE WHO’LL GROW WITH US, NOT LIMIT US.”

Hear more of Brandon’s story

FPO

©2012 Ally Financial. All rights reserved.

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USED CAR NEWS

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NADA Raises Concerns About Incentives’ Effect

By Jenny King

DETROIT – The National Automobile Dealers Association and the car makers are like some old marrieds: they spar and squawk, but they respect one another and can’t get along without each other.

The current issues on their table include two-tier pricing

esty of the first dealer.

This is what happens with two-tier pricing, he said.

Underriner credited some OEMs with being flexible with their incentives programs, though he did not name those automakers.

Manheim chief economist Tom Webb said stair-step, or

“The customer doesn’t care about the tile on the floor. The customer cares about things like service and cleanliness.”

– Bill Underriner

or “stair-step” incentives and mandated dealership updates.

NADA chairman Bill Underriner labeled two-tier pricing “unfair,” in his remarks before the Automotive Press Association here in October.

These programs are “bad for dealers, for the automakers and for customers,” he said.

Underriner said two-tier pricing hurts brand credibility, dealers of all sizes and it destroys consumer confidence in both dealers and the automakers.

The multi-franchise dealer in Billings, Mont., gave the example of two dealers at the end of a month: one is far from the sales goal, the other only one car away.

So the consumer who shops both locations and is offered a significantly different (and lower) price from the second is likely to wonder about the hon-

two-tier, pricing has the potential to depress the residual values of late-model trades, particularly those of new models affected by the incentives program.

He affirmed that dealers active in the factory incentives programs likely are taking in more trades.

Some are forced to sell new vehicles at a loss.

Webb said the recent incentives programs haven’t fully played out in the market and that used car values continue to be strong.

And then there is the question of bricks-and-mortar updates that can run into outlays of up to seven figures. NADA continues to question the business sense of the facilities improvements and renovations automakers are requiring of their franchise dealers.

Where’s the return on invest-

ment, dealers are asking.

Responding to dealer concerns, NADA commissioned a study on the subject, the first phase of which recommends that the automakers “better demonstrate and quantify the value of dealer investment in facilities,” Underriner said.

“Overall, this is an area of disappointment with most manufacturers failing to show the value of facility image programs,” he said.

A second phase of the study, concentrating on data, is currently under way.

“We’ll (also) talk to dealers who took on facility image programs, and to some who did not,” Underriner said.

The dealership association study suggests that the factories get more dealership input into the image programs and get it early-on — “before the cake is baked.”

“Do we really want buildings that all look alike?” he asked.

Would a New York City dealership look out of place in New Mexico? Has branding gone too far?

Is it relevant for the small rural dealer whose customers are more interested in product and price than the appearance of the dealer’s facility?

“The customer doesn’t care about the tile on the floor,” he said.

“The customer cares about things like service and cleanliness.”

Underriner spoke briefly about the dealership of the future. In Billings he is spending more on the back end, he said.

Service is becoming increasingly important.

It’s more than our name, it’s our promise

At Ally, we don’t believe in barriers, we find solutions and stick by your side until it gets done. It’s more than our deep automotive experience and innovative products that make us full service; it’s our unwavering desire to see you succeed.

Visit ally.com/dealer or contact an Ally Account Executive.

Feds Warn About Airbags The U.S. Department of Transportation’s National Highway Traffic Safety Administration has issued a consumer safety advisory to alert vehicle owners and repair professionals to the dangers of counterfeit air bags.

NHTSA has become aware of a problem involving the sale of counterfeit air bags for use as replacement parts in vehicles that have been involved in a crash. While these air bags look nearly identical to certified, original equipment parts-including bearing the insignia and branding of major automakers - NHTSA testing showed con-

sistent malfunctioning ranging from non-deployment of the air bag to the expulsion of metal shrapnel during deployment.

NHTSA is not aware of any deaths or injuries connected to counterfeit air bags.

While the full scope and scale of the problem of counterfeit air bags is uncertain from currently available data, NHTSA has identified certain vehicle makes and models for which these air bags may be available and believes this issue affects less than 0.1 percent of the U.S. vehicle fleet. Only vehicles which have had an air bag replaced within the past three

years by a repair shop that is not part of a new car dealership may be at risk.

Consumers whose vehicles have been in a crash and had their air bags replaced by a repair shop that is not part of a new car dealership within the past three years or who have purchased a replacement air bag online should contact the call center that has been established by their auto manufacturer to have their vehicle inspected at their own expense and their air bag replaced if necessary. The full list of call centers is available at www.SaferCar.gov.

©2012 Ally Financial. All rights reserved.

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USED CAR NEWS

PEOPLE IN THE NEWS ADESA Names Vice President ADESA recently named Tom Haeberer as vice president of U.S. dealer sales for ADESA.com. He will report directly to Jeff Bescher, senior vice president of CRM and inside sales.

In his new role, Haeberer will oversee the company’s dealer participation and sales efforts across all online platforms.

He will also be instrumental in ,* ADESA’s con " "/"/ tinued integration efforts with recently purchased OPENLANE as the two companies merge to build a single marketplace.

“This position requires a unique skill set of vastly diverse talents,” said Bescher. “Tom’s not only an experienced remarketing executive and sales leader, but he also brings a strong background in Internet technology and strategic implementation to this role.

“That - combined with his ability to effectively interact with senior executives, commercial accounts, dealer customers and employees makes Tom the ideal candidate.”

Haeberer most recently served as the company’s executive sales

director, a role he held since 2007.

Prior to joining ADESA, he had key management and executive positions at organizations such as Toyota Financial Services and Auction Broadcasting Co. Service Contract Firm Sets Top Management National Auto Care announced the appointment of Christina Schrank as president.

NAC is an administrator of service agreement products and the development of online dealer contracting technology.

Schrank, who joined the company in 1995, has held several management positions in marketing research, client relations and operations.

For the past 2 years, Schrank has held the position of vice president of marketing/account support.

Schrank has been instrumental in building strong relationships with NAC’s agency network and industry partners.

“Schrank is a dedicated, accomplished veteran within the industry,” said Bill Speaks, co-chairman of the company’s board of directors.

“She is a valued member of NAC’s team and has played a key part in our continued success.

“We’re excited for her - and for NAC - and confident that, with her

500 Cox Road Cocoa, FL 32926 321-636-2233 | Fax: 321-636-9212 www.cocoaautodealers.com General Manager Office Manager

John Puhl, ext.230 Kathy Cramer, ext.226

Sale Day Information: Every Thursday at 4:30pm. 500+ weekly consignments in 4 lanes. Specializing in new car dealer trades. Restaurant and transportation lot.

at the helm, we will see this company move to a whole new level.”

Schrank received a Bachelor of Science degree in Business Administration from Franklin University.

She is a member of the National Association of Professional Women, and was a 2010 nominee for Automotive News’ 100 Leading Women in the North American Auto Industry.

NAC also promoted Paul Leary to executive vice president as of Nov. 1.

He will have the primary responsibilities of overseeing operations, product/risk and marketing, and will be actively involved in developing and expanding NAC’s programs and services.

Leary, who joined NAC in 2010, has over 20 years of experience within the vehicle service contract industry.

Over the past 2 years he has held the position of national sales manager/strategic relationship manager at NAC. Leary has been instrumental in working with agents, leading expansion efforts, and seeking out new partnering opportunities and initiatives throughout North America.

Leary received a bachelor degree in business administration from American Intercontinental University.

2851 St. Johns Parkway Sanford, FL 32772 407-328-7300 | Fax: 407-321-4466 www.sanfordautodealers.com General Manager Office Manager SmartAuction

Joe Killory, ext.112 Tara Napier, ext.135 Sean Callahan, ext.104

Sale Day Information: Every Tuesday at 2pm, 2000+ consignments every week, ALLY Auto Remarketing & SmartLane at 3pm in lane six and online. GSA Sale, second Tuesday of every month. Sell inventory all week long with SmartAuction. Online sales at www. auctionpipeline.com.

Manheim Names Managers Manheim has selected two new managers in the Northeast and Southwest.

Bill Harbourne was named general sales manager for the Northeast market, and Nicole Graham-Ponce has been named general manager at Manheim Dallas-Fort Worth.

Harbourne will lead Manheim’s Northeast field sales team and continue to build upon relationships with dealers. Graham-Ponce will be responsible for all business, employee and customer operations.

Graham-Ponce began her career in the car business running an independent dealership with her father.

In 1998, she joined Omaha Auto Auction, which became Manheim Omaha, as a dealer sales representative and was quickly promoted to positions of greater authority, including general sales manager, assistant general manager and, most recently, market general sales manager.

Harbourne joined Cox in 2004 with AutoTrader.com and has held a number of roles with increasing responsibility since joining Manheim in 2007. Harbourne most recently served as an account manager for the major dealer team. Prior to joining Cox, he spent three years as a general manager of a multi-line import dealership in metro New York City.

1205 Northwest 27th Avenue Ocala, FL 34475 352-368-5900 | Fax: 352-368-2051 www.ocalaautodealers.com General Manager Office Manager

Richard Galway Dawn Hensley

Sale Day Information: Every Wednesday at 5pm. 500+ weekly consignments specializing in new car dealer trades.

We Appreciate Your Business!

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USED CAR NEWS

RETAIL MARKETS ALABAMA

Paul Claborn, president, Wholesalecars.com, Albertville, Ala.: “We’ve been in business 31 years. We have one location.

“There are about 80 (units) in inventory.

“That’s probably a mirror image of last year.

“We’re about 70 percent buy-here, pay-here and 30 percent wholesale.

“We’re selling about 38 per month.

“That’s up about five per month compared to last year.

“I attribute that to being just a little more aggressive in the area of down payments.

“Our average down payment is about $900, which is down from last year.

“So, we just have to extend the months, that’s all we can do.

“Our average term is 48 months.

“The average retail price is $11,900.

“Probably 70 percent of our vehicles come from auctions and 30 percent from wholesalers.

“The price of vehicles

(for wholesale) is not getting better.

“The mileage parameters have gone up. I actually bought a truck the other day off the street. It was a Chevrolet Avalanche. I didn’t trade for it.

“I actually made a concerted effort to buy it. It had 240,000 miles on it. But we sold it within four days.

“The average model year is about 2007.

“The average mileage is 110,000.

“The mileage is about the same as last year.

“Our inventory is about 75 percent domestic and 25 percent import.

“About 75 percent of our inventory is passenger cars and 25 percent trucks.

“We’re averaging about $600 per unit, which is also up from last year.

“In addition to our website, we do TV and we also do a live morning spot on the radio. Those are things we’ve done in the past. They work for us.

“We recently sold a 2008 Jeep Compass. It had about 80,000 miles.

“I sold it for $14,900.”

Compiled by Jeffrey Bellant PENNSYLVANIA

Jeff Dreier, owner, Dreier Auto Sales, Shavertown, Pa.: “I’ve been in business about 37 years.

“We have one location. We had two, but we downsized a few years ago to one location. That’s when gas prices got crazy and if you had a lot full of trucks – which we had – you couldn’t give them away. Now you can’t buy them.

“We’re carrying about 20 vehicles. We used to carry 50 before we scaled back.

“Just about all of our inventory comes from the auctions or from trade-ins.

“If someone wants to trade something in that’s rather nice, we’ll keep that (to retail). But it’s getting to the point now where everything’s got 190,000 miles on it.

“On a good month, we’re emptying the lot (with 20 sales). But recently it’s gotten slow. It’s been my experience that prior to a presidential election, everything grinds to a halt. That’s what’s happened and everyone I’ve talked to in the

industry has said the same thing to me. I keep reassuring them that once the election is over, everything will perk back up.

“We’re a straight retail business. We do all bank financing. We buy one-, twoand three-year-old vehicles.

I try to shoot for low mileage. It’s been difficult, because the cars are costing a lot of money.

“My average model year is 2010 and 2011.

“The average mileage is closer to 20,000. The cars are out there. There are plenty of cars. But it’s very hard to find nice, clean lowmileage cars.

“About 99 percent of my vehicles are imports.

“We carry cars, primarily.

The only sport utility vehicles we carry are Toyota RAV4’s and Honda CRVs. “The average retail price here is $20,000. It’s about the same as last year.

“We’ve hesitated to buy the cheaper cars. We’ve worked our way up to the point where we like selling the really nice, low-mileage cars. But, the guys who are selling the cars that cost

below $7,000 are knocking them dead. But for that, you pretty much have to be in buy-here, pay-here.

“Something that has helped me, as a board member of the Pennsylvania Independent Automobile Dealers Association, was our recent regional conference in Atlantic City. Not enough people attended, but the speakers, education and programs presented were outstanding. I got a few ideas that I’ve used to great success. So we’re going to attend again next year.

“We do our reconditioning here. We have a fulltime detailer. We’ve also done mechanical repairs on imports for more than 40 years. Our average recon costs $300 to $400 with the nicer cars that we get.

“For marketing, we use AutoTrader.com and Cars. com. An idea we picked up from the convention is usedcars.com.

“We recently sold a 2011 Subaru Forester. It had 41,000 miles on it. We got $20,000. It was a very nice vehicle.”

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10/29/12 2:54 PM

USED CAR NEWS

,3"* "/ <H 9A89 b 19

WHOLESALE MARKETS MASSACHUSETTS

Stanley Paine, chairman, Paine Auto Auction, Lynn, Mass.: â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve been in business for six months. But Iâ&#x20AC;&#x2122;ve been in the auction business for 25 years doing industrial and business liquidation auctions (as an auctioneer). â&#x20AC;&#x153;I thought this auction was an opportunity for my family to be in business together. My three sons and my wife are involved, along with Greg Kobel. â&#x20AC;&#x153;The auctionâ&#x20AC;&#x2122;s facility was operational for about 15 years with another operator. They closed (in August 2011), and then opened a new site about 50 miles away. â&#x20AC;&#x153;But dealers in the area loved the location and wanted to see another auto auction running here. So we (opened up) here and ran our first sale July 31. Weâ&#x20AC;&#x2122;ve been running every Tuesday since then. â&#x20AC;&#x153;The auction has five lanes, but weâ&#x20AC;&#x2122;re currently operating two lanes. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re currently running about 215 units on average through the lanes.

â&#x20AC;&#x153;Our goal was to have 200 cars to run at our first auction and thatâ&#x20AC;&#x2122;s what we did. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve been growing a little bit every week. Weâ&#x20AC;&#x2122;ve been increasing dealers and buyers. â&#x20AC;&#x153;Our goal is just to continue to grow. But weâ&#x20AC;&#x2122;re where we wanted to be after three months. â&#x20AC;&#x153;The vehicles are all newand used-car dealer consignment. â&#x20AC;&#x153;New-car dealer (units) are probably 90 percent. â&#x20AC;&#x153;Overall, our average sales percentage in the lanes is 52 percent. â&#x20AC;&#x153;We probably get about 100 dealers in the lanes on sale day. â&#x20AC;&#x153;(Although dealers are used to having an auction here), weâ&#x20AC;&#x2122;ve also done a tremendous amount of promotion. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve also modernized the facility. We have a new security system, along with new software. Weâ&#x20AC;&#x2122;ve (improved the) building. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve (resurfaced) the parking lot, so itâ&#x20AC;&#x2122;s modern and state-of-the-art. â&#x20AC;&#x153;We draw our dealers from Massachusetts, New

Compiled by Jeffrey Bellant

Hampshire, Maine and Rhode Island. â&#x20AC;&#x153;The dealers are pleased with the improvements.

Theyâ&#x20AC;&#x2122;ve said we did a great job. Weâ&#x20AC;&#x2122;re a family operation, so theyâ&#x20AC;&#x2122;re getting tremendous customer service from us. â&#x20AC;&#x153;They come in and we know everybody. Our fees are excellent, because they are some of the lowest in our area, so nobody complains. â&#x20AC;&#x153;We give great customer service. â&#x20AC;&#x153;As we grow our business, we would like to get into the fleet business or a factory sale. But they will come in time as we grow. â&#x20AC;&#x153;We do reconditioning and we have mechanics on site to do post-sale inspections. â&#x20AC;&#x153;Our average selling price has been about $2,800. â&#x20AC;&#x153;Dealers like the Toyotas and Hondas. Theyâ&#x20AC;&#x2122;re doing well. They also like the higher-end vehicles, like Mercedes and BMWs. â&#x20AC;&#x153;Some of the bigger sport utility vehicles havenâ&#x20AC;&#x2122;t been doing as well because of the gas prices.

â&#x20AC;&#x153;But weâ&#x20AC;&#x2122;re drawing a full range of customers, from used-car dealers to exporters. â&#x20AC;&#x153;Our new-car dealers â&#x20AC;&#x201C; who have come to rep their vehicles for sale â&#x20AC;&#x201C; have also been active in buying. So they are not only consigning, but are buying some of the nicer used cars.â&#x20AC;?

MONTANA

Terry Scheetz, general manager, Auto Auction of Montana, Billings, Mont.: â&#x20AC;&#x153;This is our ninth year in business. â&#x20AC;&#x153;We have four lanes. Generally, weâ&#x20AC;&#x2122;ve been running three lanes, though we ran four during our recent anniversary sale. â&#x20AC;&#x153;At our anniversary sale, we ran 1,200 cars and sold 714. That was a good sale for us. â&#x20AC;&#x153;During our regular sales, we sell between 500 and 600 units. â&#x20AC;&#x153;There are bidders coming out of the woodwork. â&#x20AC;&#x153;On average our percentages have been in the 40s and 50s. Thatâ&#x20AC;&#x2122;s about the same as this time last year. â&#x20AC;&#x153;Those numbers are close

to what they were last year.

Weâ&#x20AC;&#x2122;ve been fortunate. â&#x20AC;&#x153;In the lanes, weâ&#x20AC;&#x2122;re getting about 200 dealers. Although that hasnâ&#x20AC;&#x2122;t changed much from this time last year, we are starting to see some new faces. A lot of the dealers weâ&#x20AC;&#x2122;ve always had donâ&#x20AC;&#x2122;t travel like they used to. We still have them, though, they bid online through Online Ringman. â&#x20AC;&#x153;Our dealers are coming from all over. We usually get dealers from Montana, Wyoming, Idaho, North Dakota and South Dakota, â&#x20AC;&#x153;But weâ&#x20AC;&#x2122;re getting quite a few dealers from Colorado that we never used to get.

Weâ&#x20AC;&#x2122;re getting them from as far away as Casper, Wyo., and Cheyenne, Wyo. â&#x20AC;&#x153;They used to go to Denver. Iâ&#x20AC;&#x2122;m sure they still do, too. But people are looking for cars. â&#x20AC;&#x153;In the lanes, dealers are saying, â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re still buying cars, but business (stinks). â&#x20AC;&#x153;Most of our volume is dealer consignment. We might run 150 to 200 fleetlease, which include the repossessions. â&#x20AC;&#x153;We also run a GSA sale.â&#x20AC;?

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USED CAR NEWS

COMPILED BY JEFFREY BELLANT

AUCTION CELEBRATES 63 YEARS IN BUSINESS Rent To Own Program

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Brasherâ&#x20AC;&#x2122;s Portland Auto Auction celebrated Brasherâ&#x20AC;&#x2122;s 63rd anniversary recently with a big sale that drew customers from all over the West.

More than 900 vehicles crossed the block that day, and enthusiastic bidding resulted in a 60 percent sales percentage. â&#x20AC;&#x153;We are proud to be a part of the Brasher family of auctions, one of the longest-running auction companies in the country, and one that has earned a reputation for integrity and service over more than six decades,â&#x20AC;? said Jerry Hinton, general manager. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re honored to play a part in continuing to build the Brasher familyâ&#x20AC;&#x2122;s legacy here in the Pacific Northwest, and we know that it is because of the loyalty and support of our customers that we have been able to do that for many years. This yearâ&#x20AC;&#x2122;s anniversary sale provided us with a wonderful opportunity to thank those customers for the part they play in our success.â&#x20AC;?

Special promotions were held throughout the day in each auction lane, with prizes including Oregon Ducks football game tickets.

Chase is your source for quality, value and selection.

When youâ&#x20AC;&#x2122;re searching for a broad selection of preowned vehicles when and where you want them, look to an industry leader â&#x20AC;&#x201D; look to Chase. Â&#x2021; $ ZLGH YDULHW\ RI YHKLFOHV ² IURP HFRQRP\ WR OX[XU\ Â&#x2021; &RQYHQLHQW RQOLQH DQG LQ ODQH YHKLFOH DYDLODELOLW\ ZLWK RQ VLWH &KDVH UHPDUNHWHUV Choose Chase on:

Sale Hosts Black Tie Event

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The tradename â&#x20AC;&#x153;Subaru Motors Financeâ&#x20AC;? and the Subaru logo are owned/licensed by Subaru of America, Inc. and are licensed to Chase Bank USA, N.A. (â&#x20AC;?Chase USAâ&#x20AC;?) and JPMorgan Chase Bank, N.A. (â&#x20AC;&#x153;Chaseâ&#x20AC;?).

Retail / Loan accounts are owned by either Chase or Chase USA and lease accounts are owned by Chase.

1

Jaguar, the Jaguar logo, and Jaguar Financial Group are trademarks of Jaguar and any use by JPMorgan Chase Bank, N.A. (â&#x20AC;&#x153;Chaseâ&#x20AC;?) 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.

2

The tradename â&#x20AC;&#x153;Mazda Capital Servicesâ&#x20AC;? 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&#x20AC;&#x153;Chaseâ&#x20AC;?).

Retail / Loan and lease accounts are owned by Chase.

3

Š 2012 JPMorgan Chase Bank, N.A. Member FDIC. All rights reserved. (12-380) 06/12

12-380 CAF Remarketing Used Car News Ad.indd 1

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ADESA Golden Gate employees and customers donned their fanciest formal wear for a special black tie event at its 10th anniversary sale on Oct. 9.

More than 2,500 units were offered and dealers who purchased units at the special auction were entered into a raffle for prizes. Winning dealers walked away from the event with iPods, iPads, 60-inch Samsung TVs, a MacBook Air and gift cards.

One lucky customer left with a Rolex watch. Dealers who entered the auction were greeted with special anniversary wine glasses and sparkling cider. Customers also had the opportunity to have their photo taken in front of a custom ADESA Gold-

en Gate backdrop. Highline consignors included: Mercedes-Benz Financial Services, U.S. Bank, BMW Financial, ZIPCAR, Kia, Suzuki, Chase, OneMain, GM, Chrysler, VW Credit, Inc., Avis, Enterprise, Dollar Thrifty Group, California Superstores, Hendrick Auto Group, LHM, Hyundai Capital, Bank of the West, Wheels, ARI, Donlen, Emkay, Leaseplan and others.

We invite news items and top-quality photos from our readers to be considered for â&#x20AC;&#x153;Around the Block.â&#x20AC;? Please include the name of a contact person and a telephone number.

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

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

6/5/12 1:46 PM

10/26/12 3:44 PM

USED CAR NEWS

,3"* "/ <H 9A89 b 21

Disconnected Jottings From Tony Moorby...

No wonder health-care costs are out of control. I was listening to a news program on National Public Radio the other day â&#x20AC;&#x201C; I know, youâ&#x20AC;&#x2122;re thinking â&#x20AC;&#x2DC;He listens to that socialist organ of the

of the hospital tally. The sling, a simple piece of navy blue fabric, about three feet square, was billed from the hospital at a whopping $107, his co-pay being $27. The chap presumed that a simple

Tony Moorby

Ć&#x20AC;É&#x; Ĺ´Ĺ°Ć?3 ,É&#x;0 . , (É&#x;) É&#x;." É&#x;#( /-.,3 Ć&#x20AC;É&#x; , -# (.É&#x; ,)'É&#x;ŹŚŚšĆ&#x2018;ŲŰŰŰÉ&#x;) É&#x; É&#x;É&#x; É&#x; /.)').#0 Ć&#x20AC;É&#x; ,0 É&#x; -É&#x; Ć&#x2030;-É&#x; 2 /.#0 É&#x;0# É&#x;É&#x; É&#x; *, -# (.É&#x;) É&#x;- & -É&#x; ( É&#x;' ,% .#(! Ć&#x20AC;É&#x; )), 3É&#x;Ć É&#x; --) # . -É&#x;ŲŰŰŜĆ&#x2018;*, - (. Ć&#x20AC;É&#x; 1 , É&#x;." É&#x; #(!É&#x;) É&#x; )(),É&#x; 3É&#x;É&#x; É&#x; Ć&#x20AC;É&#x; É&#x; &&É&#x;) É&#x; ' ,

state?â&#x20AC;&#x2122; â&#x20AC;&#x201C; but theyâ&#x20AC;&#x2122;ve gotten a lot more even-handed in their stance these days and they have really interesting programs throughout the day. I got fed up listening to all those talk-radio, selfinflated windbags who, once theyâ&#x20AC;&#x2122;ve made a point, repeat it ad nauseam.

Anyway, this program pointed out that a fellow who had had shoulder surgery was given a sling to wear as he left the hospital. A few days later, he received a bill for his portion

error had been made in the bill and phoned the hospital to bring it to their attention.

After the usual song and dance of trying to speak to a human being he politely pointed out the now-obvious error and would they be kind enough to re-bill him. â&#x20AC;&#x153;Oh noâ&#x20AC;?, said the billing clerk, â&#x20AC;&#x153;thereâ&#x20AC;&#x2122;s been no mistake â&#x20AC;&#x201C; thatâ&#x20AC;&#x2122;s how much it is.â&#x20AC;? With the right amount of incredulity he took issue with the clerk who told him she was only doing her job and that he would have to

speak to someone higher up.

He did and was given same answer and when asked why it was so expensive was told, â&#x20AC;&#x153;thatâ&#x20AC;&#x2122;s the way things are these days.â&#x20AC;?

Iâ&#x20AC;&#x2122;ll cut a long story short and tell you that his investigation found that the original product (made overseas, of course), in the warehouse, ready for retail distribution, was $3.50. Now, as a businessman, I recognize the need for covering costs for each of the parties involved as middlemen, but seriously? Shouldnâ&#x20AC;&#x2122;t the buyer at the hospital be questioned over his skills and talents?

Being something of a skeptic these days, one has to wonder whoâ&#x20AC;&#x2122;s doing the skimming here and are they in cahoots? The hospital?

The insurance company?

The government? Itâ&#x20AC;&#x2122;s probably a combination of all of them and no one is looking after their part of the store.

This is the sort of practice that starts vicious circles.

Someoneâ&#x20AC;&#x2122;s sticking it to the hospital - because they can. Theyâ&#x20AC;&#x2122;re sticking it to

C R O S S WO R D

the insurance company because they donâ&#x20AC;&#x2122;t give a darn and someone will eventually cough up. In the end, the government gets part of the bill for their share.

So we have all these paymasters who donâ&#x20AC;&#x2122;t seem to have to answer to the patient and sensibly substantiate their outrageous bills because they canâ&#x20AC;&#x2122;t.

The very thought of the government getting more deeply involved in this embroglio sends enough shudders down my spine to require a back brace. Anyone want to take a stab at what that might set me back?

Raises in health-care costs bear no relation to inflation.

Remember, weâ&#x20AC;&#x2122;ve hardly had any of that for the last five years. Anthem Insurance wanted to raise their premiums by between 39 percent and 56 percent, de-

pending upon which state theyâ&#x20AC;&#x2122;re trying to stick it up and thatâ&#x20AC;&#x2122;s only for the year.

The states said, â&#x20AC;&#x153;explain these increasesâ&#x20AC;? and of course the insurance company backed off.

If I went to my auction customers and said Iâ&#x20AC;&#x2122;m going to increase their fees by 46 percent, Iâ&#x20AC;&#x2122;d be looking at an empty lot the very next week.

Rather than look internally for savings, all these entities just keep on sticking it to the customer, the patient. And they have the gall to say they need to raise rates.

Itâ&#x20AC;&#x2122;s hard for a patient limping out of hospital to shake an indignant fist at those who just enabled him or her to do that. There needs to be an ombudsman, an evenhanded inquisitor on the publicâ&#x20AC;&#x2122;s behalf who can say â&#x20AC;&#x153;enough.â&#x20AC;?

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

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Buy-Here, Pay-Here

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USED CAR NEWS

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Not Your Average Lender Spartan Financial Partners provides capital solutions for buy-here pay-here dealers and independent auto finance companies.

As one of the only lenders in the industry to offer both lines of credit and bulk acquisitions, Spartan Financial has developed a formula that tailors financing solutions to each client’s specific needs all under one roof.

Discover your inner genius.

It’s easy to make smarter business decisions with Dealer Services Corporation by your side.

Like DSC’s exclusive Universal Source Network.

When you’re ready to purchase inventory, why not empower yourself with the most trusted remarketers in the industry? DSC lines of credit are accepted at more than 1,000 inventory sources nationwide.

The DSC advantage: t 'MPPSQMBO *OWFOUPSZ 'JOBODJOH MJOFT PG DSFEJU GPS Retail, Wholesale, Rental and Salvage

This personal and unique approach, combined with Spartan Financial’s expertise, helps to create a smooth and simple transaction when selling notes from the line of credit to their bulk purchasing team.

Your selling process is completed and funded in days instead of weeks and all without the aggravation of organizing and shipping loan files from your lender to a separate buyer.

“They do both ends of the spectrum,” said Ron Janbash of Auto Masters in

Nashville, TN. “So when I am ready to sell, they have all the information in-house and it is a no-hassle, quick process.”

Even more important than offering the advantages of both lines of credit and bulk acquisitions, is the manner in which Spartan Financial handles the transition of servicing your customers.

They take great pride in offering industry leading dealer and customer relations.

This means clients of Spartan Financial can sleep easy knowing their customers are being cared for by a skillful team with excellent customer service.

Janbash relies on repeat business, and needs to know that his customers are well cared for when selling his contracts.

“I am happy to turn my long-time customers over to them. I know they will be taken care of,” he said. “They treat my customers as well as I do.”

When searching for the right lender, select a company with a demonstrated ability to offer lines of credit, bulk acquisitions, and overwhelming customer support.

Spartan Financial Partners offers the whole package and is a win-win solution for everyone involved.

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USED CAR NEWS

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GPS: Your Tool for Optimizing Dealer Operations In todayâ&#x20AC;&#x2122;s still struggling economy, the most successful dealerships have found creative ways to bring in â&#x20AC;&#x201D; and say yes to â&#x20AC;&#x201D; more consumers, including those with credit challenges.

As a dealership, how do you meet the needs of your credit-challenged car buyers, without incurring the risks that typically accompany higher-risk financing?

As increasing numbers of dealerships search for solutions to expand their loan portfolios while controlling costs, GPS technology has begun to play a more central role in operations. In this article, we examine why.

What Dealerships Have to Gain from GPS You and your customers are no doubt familiar with GPS (Global Positioning System) used in vehicle navigation systems.

Letâ&#x20AC;&#x2122;s take a closer look at the technology behind how GPS works â&#x20AC;&#x201D; and how this technology can be put to work for dealerships like yours.

Developed by the U.S. Department of Defense, GPS is a space-based satellite navigation system used to pinpoint the location of vehicles, anywhere in the world.

GPS satellites orbiting the planet broadcast location information to GPS receivers or devices. These devices then use this information to determine their location here on Earth.

Special online software translates this information into a format users can understand â&#x20AC;&#x201D; maps, for example â&#x20AC;&#x201D; to track a vehicleâ&#x20AC;&#x2122;s movement and location.

How are dealerships capitalizing on GPS technology, beyond offering it to their

a place of work), or when a car is stopped overnight (mostly likely at the home). This feature makes it easy to confirm STIPS, and quickly recover the car.

Geographic Boundaries: The best GPS solutions will allow you to set up geographic boundaries then receive alerts whenever a vehicle enters or leaves those boundaries â&#x20AC;&#x201D; another powerful tool for streamlined repossession.

Starter Disable: GPS solutions that offer a starter disable feature allow you to disable a delinquent vehicle once itâ&#x20AC;&#x2122;s stopped, making it easier to locate and recover if the need arises Payment Reminders: GPS solutions Spend Less Time, Money and that offer automated payment reminders Resources on Recovery bring additional value. These remindAn effective GPS vehicle tracking system ers alert customers when payments are will make it quick, easy and cost-effective pending or overdue, reducing loan delinto recover delinquent vehicles when re- quencies. Research has shown that this possession is unavoidable. Look for a GPS feature helps your customers stay on system that provides the following checklist track with payments and helps to rebuild their credit. of features and functionality.

On-Demand, Real-Time Tracking: You should instantly be able to pinpoint the More Loans for More Customers location of a vehicle at any given moment, Combined, these features will make 24/7, using your smart phone, laptop or it possible â&#x20AC;&#x201D; and profitable â&#x20AC;&#x201D; for you to desktop.

Flexible Mapping Features: GPS solu- expand your loan portfolio by offering special tions that come with mapping features, financing to more car credit challenged including hybrid views, make it even easier shoppers with reduced risks and costs.

Lower Repossession Costs: An effective to locate and recover delinquent assets.

Drive Reports: Your GPS solution GPS solution will shorten the time it takes should provide a comprehensive suite of to repossess your asset by equipping you reports that give you access to valuable with the information you need to quickly information you can act on. Especially recover a delinquent vehicle.

Reduce Staff Requirements: Your GPS important are Drive Reports, which tell you when a car is parked for six solution should also enable you to improve hours or more (most likely at staff allocation by requiring fewer staff customers as an added option?

More and more dealers are installing GPS devices in vehicles sold to customers through special financing. These devices track the vehiclesâ&#x20AC;&#x2122; movements and locations once they leave the lot, allowing dealerships to quickly and easily recover delinquent vehicles should the need arise.

As a result, dealerships that employ GPS technology to track and protect vehicle assets are saving thousands of dollars normally spent on outsourcing repossession and skip-trace professionals, not to mention countless man hours in manually tracking down and recovering delinquent vehicles.

members to track down and locate delinquent vehicles.

G o l d S t a r G PS : Prove n Te c h n o l o g y Built on Indu str y Exper ience When comparing GPS solutions, itâ&#x20AC;&#x2122;s also important to compare providers carefully.

Look beyond the price tag, and ask yourself which solution delivers the greatest value and quickest ROI? The long-time industry leading brand with more than 15 years experience in the automotive finance industry, GoldStar GPS delivers the simplicity, features and reliability you want in a GPS solutions provider.

Offered by Spireon, a leading provider of Mobile Resource Management (MRM) and Business Intelligence Solutions, GoldStar GPS also brings: Ć&#x20AC;É&#x; . (. ĹťÉ&#x;*,)0 (É&#x;. "()&)!3 Ć&#x20AC;É&#x; )''#.' (.É&#x;.)É&#x; )(.#(/ &É&#x;*,) / . innovation Ć&#x20AC;É&#x; #( ( # &É&#x;-. #&#.3É&#x; ( É&#x;* , ),' ( Ć&#x20AC;É&#x; 0 ,É&#x;ŹźžÉ&#x;'#&&#)(É&#x;/(#.-É&#x;#(-. && Ć&#x20AC;É&#x; ),& Ć? & --É&#x;, -*)(-#0 É&#x; /-.)' ,É&#x;-/**),. #( É&#x;)/.É&#x;")1É&#x; )& . ,É&#x; É&#x; (É&#x;" &*É&#x; you optimize your dealershipâ&#x20AC;&#x2122;s operations.

Visit GoldStarGPS.com.

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USED CAR NEWS

DeskManager Caters to BHPH Dealers

At AutoManager, we believe buyhere, pay-here financing should be an attractive sales asset for your dealership, not a headache. DeskManagerâ&#x20AC;&#x2122;s suite of buy-here, payhere solutions is designed for dealerships of any size.

DeskManager dealership management software has been crafted from over 25 years of tireless development. Since 1984, weâ&#x20AC;&#x2122;ve consulted with franchise and independent dealerships to forge solutions that are simple, powerful and intelligent.

We have the best buy here, payhere tools in the business, and we can prove it. Try DeskManager 11.92 FREE for seven days, and see

how easy in-house financing can be.

Features include: Ć&#x20AC;É&#x;É&#x; . ( , É&#x;),É&#x; /-.)'#4 É&#x;* 3' (.É&#x; schedules/terms. Ć&#x20AC;É&#x; 2*),.É&#x; #, .&3É&#x;.)É&#x; /# % ))%-Ƣź Ć&#x20AC;É&#x; (Ć?*,)!, 'É&#x; , #.É&#x;- , (#(!É&#x;Ć&#x2DC;0# É&#x; 2* ,# (ƢŝÉ&#x; , (- (#)(ƢŝÉ&#x; +/# 2ƢŝÉ&#x; É&#x; ( É&#x; , )Ć&#x2122;Ĺş Ć&#x20AC;É&#x; , #.É&#x;, *),.#(! Ć&#x20AC;É&#x; , Ć? /#&.É&#x; ( É&#x; /-.)'#4 & É&#x;#(0)# -ĹťÉ&#x; payment coupons, late notices and letters. Ć&#x20AC;É&#x; , . É&#x;(). -ĹťÉ&#x;, '#( ,-É&#x; ( É&#x;. -%Ć&#x20AC;É&#x; /3 %ĹťÉ&#x;/(1#( ĹťÉ&#x;, *)É&#x; ( É&#x;1,#. Ć? off procedures. Ć&#x20AC;É&#x; , É&#x; ( É&#x;*)-.Ć?- & É&#x; )-.É&#x; ( É&#x; 2* (- É&#x; tracking. Ć&#x20AC;É&#x; , É&#x; )1(&) ĹźÉ&#x;111Ĺş /.)' ( ! ,Ĺş com/demo

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

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

The program is customizable to suit each dealerâ&#x20AC;&#x2122;s individual needs.

If a dealer needs part of the program altered to his or her specifications, the knowledgeable support staff will work directly with the dealer to make it happen. This tailored approach has become a hallmark of Micro 21â&#x20AC;&#x2122;s process and has been a driving force in forging lasting business relationships between the company and its clients.

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

With Micro 21, dealers receive the quality and reliability they need to effectively manage their collections. For a free demo of the software, call (800) 647-1121.

Cash Flow is King You run a great business. Your customers are happy and you make a good living. Sure, itâ&#x20AC;&#x2122;s hard work and long hours , but you love what you do and you are a true entrepreneur â&#x20AC;&#x201C; the backbone of the American economy.

Your bookkeeper tells you that you are making money. But do you ask yourself, â&#x20AC;&#x153;If I am profitable why am I always stretching to make payroll or buy that next auction unit?â&#x20AC;?

The answer is cash flow. And cash flow is king.

Profits are great, but what you operate your business on every day is cash flow.

Cash flow is the lifeblood of your business and the fuel for your growth.

Youâ&#x20AC;&#x2122;ve heard the term, â&#x20AC;&#x153;I was so successful selling cars that I went out of business.â&#x20AC;?

Why does that happen? It happens because every time you sell a car you are out of the money until you are paid by your customerâ&#x20AC;&#x2122;s lender, which can take weeks!

The more cars you sell, the more â&#x20AC;&#x153;cash flowâ&#x20AC;? you need.

Think of it this way. Letâ&#x20AC;&#x2122;s assume your average cash in deal is $7,000 and you sell eight vehicles per week.

Each week your cash flow needs are $56,000 ($7,000 x 8) just for inventory.

If your customerâ&#x20AC;&#x2122;s lenders donâ&#x20AC;&#x2122;t pay you for two weeks after the sale, you

need $112,000 in cash ($7,000 x 8 x 2) in your business just to cover your cars, not to mention payroll and other expenses.

If you successfully grow your sales to 10 per week you will need $140,000 in cash ($7,000 x 10 x 2). That is another $28,000 for selling two more cars per week. This is why growing your business takes money!

Floorplanning is the answer to this issue and can provide the cash flow to grow your business. Floorplanning provides you the ability to buy that next auction unit and keep your lot full - full of cars and customers.

Keep your money working for you in your business and not sitting idly on your lot.

Take your business to the next level by giving your customers more vehicle choices to drive more sales through floorplanning.

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-Print Any Form-Track All Customers And Payments-Set Late Fees And Times-Partial Payments With Accurate Calculations-Back Out And Correct Payments Including NSF Checks-Complete Amortization Tables-Track Exposure On Individual Deals Or Entire Portfolio-Inventory Control-Multi Lot Connectivity-Credit Bureau Reporting-

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GPS SOLUTIONS THAT

PACK A PUNCH! As the leader in GPS Tracking, we craft solutions that connect dealers to their inventory to help manage risk and improve collections. Our solutions give you the power to increase your profits and knock out your risks.

Ask About the most powerful GPS Solution today! Call: 1-866-655-8825 . Visit: GoldStarGPS.com

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Scan this code with your Smartphone’s QR Code Reader app to see how GPS devices can protect your dealership.

©2012 Spireon, Inc. All Rights Reserved.

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USED CAR NEWS

Interested in Buy Here, Pay Here?

There’s a Better Way - Credit Acceptance!

Uncertainty still looms in today’s economy with 46% of consumers struggling to establish credit or rehabilitate poor credit (Equifax, March 2012). Credit Acceptance, a proven leader in automotive financing since 1972, has a well-rounded strategy that provides automobile dealers with a financing program that enables them to sell vehicles to consumers, regardless of their credit history helping both dealers and consumers. This program has all the benefits of Buy Here, Pay Here (BHPH), with none of the uncertainties or issues.

Credit Acceptance eliminates the need for large capital outlays necessary to do BHPH, providing a cashefficient business model that maximizes ROI. It also provides 24/7 technology to efficiently approve and process deals, recommendations to improve your business with highly trained in-field professionals, and tools to help you monitor your business and purchase inventory that works with the Credit Acceptance program.

Dealers benefit from vehicle sales to consumers who otherwise could not obtain financing; from repeat and referral sales; and from sales to consumers responding to credit-challenged advertisements who end up qualifying for traditional financing.

Frazer Reaches Milestone

Frazer Computing reached yet another milestone in September as the number of dealers using Frazer Dealer Management Software (DMS) rose above the 9,000 mark. Frazer provides a full featured DMS to used car dealers in all 50 states.

“We have a rather unique formula for - Lavon Schwartz, owner of KC’s our industry. We combine an exceptional Budget Auto, Kalamazoo, MI product and exceptional service with an exceptional price,” said Michael Frazer, Without Credit Acceptance, consumers president. “None of our competitors are are often unable to purchase a vehicle offering all three, and dealers around or they purchase an unreliable one. the country are responding amazingly Further, as they report to the three well to it.” national credit reporting agencies, an Over 2,600 dealers have purchased the important benefit of the program is Frazer DMS in the past year, exceeding that consumers have an opportunity to improve their lives by improving their credit score through on-time payments and can often move on to more traditional sources of financing While traditional bank financing is still in the future. quite tight, some buy-here, pay-here dealers “Without the Portfolio Profit from Credit Acceptance, we may not be here today. Business is now back on track and we just surpassed the $1 million mark in Portfolio Profit received from our Credit Acceptance contracts.”

Frazer’s expectations.

“We are now integrated with 11 finance companies. Our software provides automatic vehicle and photo uploading to 86 different online inventory management and marketing systems, and those numbers continue to climb. It’s all very exciting around here.”

For more information on the Frazer Dealer Management Software go to www.Frazer.biz.

Avoid Buy-Here, Pay-Here Pitfalls

lured by attractive purchase offers may “Nobody would extend me any credit decide to sell off some of their notes – but after my bankruptcy…until I found a Credit Acceptance dealer. And, because there are pitfalls.

Dealers need to go into these transactions I never missed a payment, I was able with their eyes wide open. What initially to buy a new car and a house!” might look like a really sweet deal has the - Janet S., Credit Acceptance potential to turn sour.

• Dealers need to be wary of “reserve Consumer accounts.” Sometimes these are structured as pools and have many restrictions that never For more information visit www.credi- allow the dealer to get any of these funds. tacceptance.com (click on ‘Become a Dealer’ under Dealers) or call 1-800• Many companies will tack on other fees 873-0512. that lower your net check amount. These

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include broker fees, title fees, transaction fees, ect.

• Most note sales include a period of recourse and those non-performing notes (buy backs) can leave the dealer owing the finance company thousands of dollars. A customer that paid a dealer perfectly for years can suddenly become non-performing when sold – it happens all the time.

There are other companies, such as Small Dealers Assistance (SDA), that allow the dealer to continue collecting their accounts – often a smart alternative for a dealer attempting to raise capital.

10/25/12 11:27 AM

Buy Here, Pay Here?

There’s a 1 Since 972

Better Way!

YEARS

Credit Acceptance

800-873-0512

www.creditacceptance.com

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USED CAR NEWS

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Protection from High Loss Rate

Youâ&#x20AC;&#x2122;ve been doing buy-here, payhere for years.

You understand the customer. Youâ&#x20AC;&#x2122;ve learned how to identify risky applicants.

You get how to structure the deal.

You understand collections.  Unfortunately, youâ&#x20AC;&#x2122;ve also learned to accept the 30.39% loss rate as a part of doing business.  What if you looked at this from a fresh angle, made a few small adjustments, and protected yourself from that high loss rate?

Twenty-one years ago, in direct response to the feedback and concerns of buy-here, pay-here dealers, Al Lentsch developed Renâ&#x20AC;&#x2122;Tâ&#x20AC;&#x2122;OwnÂŽ, the original used car leasing program. Â Although very similar to the buy-here, pay-here model, Renâ&#x20AC;&#x2122;Tâ&#x20AC;&#x2122;OwnÂŽ provides a win/win for both the customer and the dealer. Â So whatâ&#x20AC;&#x2122;s the angle? Â With Renâ&#x20AC;&#x2122;Tâ&#x20AC;&#x2122;OwnÂŽ,

the vehicle remains titled to the dealership throughout the term of the lease. Â Â Itâ&#x20AC;&#x2122;s as simple as that!

As titled owner of the vehicle, and with the unique Renâ&#x20AC;&#x2122;Tâ&#x20AC;&#x2122;OwnÂŽÂ lease contract: Ć&#x20AC;É&#x; )/É&#x; , É&#x; & É&#x;.)É&#x;- ,0# É&#x; /-.)' ,of all credit backgrounds Ć&#x20AC;É&#x; )/É&#x;" 0 É&#x;& 0 , ! É&#x;)0 ,É&#x; &#(+/ (. payers Ć&#x20AC;É&#x; )/É&#x;" 0 É&#x;*,). .#)(É&#x; ,)'É&#x;3)/,É&#x; customerâ&#x20AC;&#x2122;s bankruptcies Ć&#x20AC;É&#x;É&#x; )/É&#x; &#'#( . É&#x;." É&#x; 2* (- É&#x; ( É&#x;É&#x; time consuming process of repossessions Ć&#x20AC;É&#x; )/É&#x;, / É&#x;. 2É&#x; /, (Ć&#x20AC;É&#x; You can claim depreciation on the Renâ&#x20AC;&#x2122;Tâ&#x20AC;&#x2122;OwnÂŽ vehicles Ć&#x20AC;É&#x;É&#x; )/É&#x; , É&#x;." É&#x;)(&3É&#x; & ,É&#x;." É&#x; customer can go to if they want to trade

M2M leading the machine to machine revolution

Northland isnâ&#x20AC;&#x2122;t suggesting that you make a big change in how you do business, just presenting a fresh angle that will make a big difference in your protection and profit.

Learn more about the benefits of Renâ&#x20AC;&#x2122;Tâ&#x20AC;&#x2122;OwnÂŽ by contacting Northland at 800-879-3433 or online at www. northlanddealers.com or www.rtolto. com.

Best practices, dealer testimonials and educational information about used car leasing can be found on our blog: www.theoriginalusedcarlease.com.

Best GPS on the market

Dealer management software so complete and easy to master it practically teaches you to use it. Call or visit our web site today to request your FREE DEMO!

Toll Free 1-888-963-5369

www.Frazer.biz

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1.866.276.5382 www.imetrik.com 10/26/12 11:03 AM

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USED CAR NEWS

No Worries, Just Drive

As a dealer, you work hard to make a sale and to keep your customer happy.

When done right, adding a service contract to the sale can be great insurance that your happy customer will stay that way. Unfortunately, when your customer runs into problems with a service contract you’ve sold, you’re often the one who has to deal with unnecessary stress and frustration.

GWC Warranty understands that, as a dealer, you need to minimize these instances. Time spent solving these important claims issues means less time spent making new sales. On top of this, we’re all familiar with the old adage that a happy customer tells one friend, an unhappy customer tells everybody.

GWC Warranty exists to help your business run smoothly and make the lives of your customers easier. We understand that you need to be able to trust your vehicle service contract provider and the products they offer your customers.

Call Now! Michael Diaz

1.800.467.5172

www.sdainc.net

Having been in business for 16 years, GWC understands your customers’ concerns. That’s why we’ve crafted the “No Worries. Just Drive”

experience around them.

In the past two years, GWC has expanded our suite of products to include options designed to meet the needs of every customer who walks through your dealership’s doors.

We’re expanding as a company with you and your customers in mind. Our employee sales force and in-house claims department come to work every day wanting to assist your customers and help you sell more vehicles.

Additionally, in this economy, it’s important to know that GWC has exceptional financial backing. GWC products are insured and backed by companies with an “A- Excellent” or better A.M. Best rating, which lets you as a dealer offer your customers vehicle service contracts that you can be proud to stand behind.

As evidence, GWC is proud to have paid almost a quarter of a billion dollars on over 700,000 claims while offering the “No Worries. Just Drive” experience to dealers and customers nationwide.

There are many vehicle service contract companies in the automobile industry; and very few do it well and do it honestly. GWC Warranty is proud to be one of the most trusted names in the business.

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

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800·482·7357 x767 | GWCwarranty.com

9/26/12 9:17 AM

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

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

Maine PortlandOregon Portland

to

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

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to

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

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USED CAR NEWS

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Silicone SIM Chip Provides High Level of GPS Reliability

By Mark Foster – Director of Sales, iMetrik Automotive Solutions, Inc.

Long term users of GPS tracking technology are beginning to find that devices while initially reliable, are now showing poor reliability over time. Why is this? Think of your GPS tracker as an industrial cell phone.

When you attempt to locate your asset you are essentially making a call to the device.

As with cell phones, most devices are equipped with a SIM card that serves as the gateway through which the device is connected to its’ network.

As many users of cell phones are aware, occasionally a SIM card might need to be removed and reinserted into the phone to reestablish proper connection.

GPS tracking devices lead a rough life filled with constant vibration and extreme temperatures. A Plastic SIM card pushed into a slot inside the device is a weak link that over time causes a substantial portion of those “failure to locate” messages.

It was for this reason that several years ago iMetrik Automotive Solutions transitioned to a fully soldered heat resistant silicone SIM chip.

This means that all iMetrik devices have the SIM imprinted on a chip that is permanently fixed and that all iMetrik

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customers will continue to see the same high level of reliability as the months and years go by.

Long term users of the devices are taking note and the days of pushing off the shelf product into an application for which it is not intended are coming to an end.

About iMETRIK Automotive Solutions Inc. iMETRIK Automotive is a global leader in machine-to-machine (M2M) embedded wireless solutions that enables companies to reduce cost and increase control of remote assets. The company designs and manufactures compact devices with more processing power and faster wireless connectivity.

Customers access the company’s solutions through Internet-based web applications and reports using an open standard architecture. This architecture easily integrates customer information systems to allow ease of usage and instant data access. The company acts as a wireless carrier or mobile virtual network operator (MVNO) to complete its end-to-end quality delivery model.

Manage Leads, Build Customer Relationships advertising. In terms of dollars and cents, adopting a system to mainEach segment of the automobile tain customer information, making retail industry — franchise dealers, customer follow-up simple, is independent dealers, and buy-here, a wo r t hw h i l e i nve st m e n t . pay-here dealers — has unique operating practices and processes. The best way to manage customer data While the systems and culture may Having a good system for managing vary, the fundamental practice of building customer data for continued follow-up customer relationships remains the same. and relationship building is important.

When it comes to most effectively You need a system tailored to your utilizing your dealerships’ most valuable needs, one that gives quick access to asset — your customers — dealers across information when needed, and provides the board face the same challenges: for accountability for your sales staff. to effectively and efficiently maintain The first step to reverse the paper customer information, and how to use trend is to acknowledge you are losing that information to sell more cars. valuable information. Has your staff been Data management is universal, trained to collect the lead’s full name, whether you’re a single-rooftop buy- phone numbers and email address? here, pay-here dealer or an auto group.

Make it a priority to demand the collection of data as a way to operate Why manage data? your business. The lack of collecting Customers are a dealership’s most email addresses is a common problem valuable asset. Each lead, walk-in, in- in today’s automobile marketplace. ternet request or phone call comes at It reduces your ability to compete a cost. Money spent on signage, web effectively. Teach it, demand it, and sites, advertising costs, anything used use it to sell more cars. to drive traffic. Add up those expenses Buy-here, pay-here dealers all across and divide that by the number of leads the country choose AutoRaptor CRM that came your way. to manage their internet leads and for You’ll be surprised to see the total short- and long-term customer follow-up. amount it costs you to get a single lead.

AutoRaptor CRM gives buy-here, It’s easy to recognize the importance pay-here dealers the tools they need of getting and holding on to customer to easily build relationships with their information. customers, convert more leads into sales, Customer information is crucial to get more referrals and sell more cars. squeeze every last ounce of business out Find out more at www.autoraptor. of leads and get the most return from com or 888-421-6533.

by Howard Leavitt, AutoRaptor CRM

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USED CAR NEWS

Quality and Innovation Makes the Difference Payteck, in business for fourteen years, provides quality, innovative solutions to the buy-here, pay-here industry.

Payteck is pleased to introduce their newest generation of products with the all new Payteck GPS II. Payteck’s new Generation II offers a better antenna that will improve connectability, a smaller package for easy installations and real time vehicle tracking.

Payteck also offers “batch” commands to help save time and control security.

Make sure you compare PayTeck products before you make a final decision. Ask your provider if they offer all, or even most of the features found in PayTeck products.

Go ahead. Take the challenge.

You will find PayTeck is one of the most complete systems available, with excellent coverage at a better price.

Payteck represents value. PayTeck has quality.

Payteck also offers the ability to run two different systems on a single vehicle on one internet site.

Dual systems are good for high value vehicles and or higher risk customers.

Payteck offers real systems rather than decoys at affordable prices.

PayTeck will work with your staff to insure proper installation and long term usage of your starter interrupt or GPS investment.

Call or E mail PayTeck 800-880-3081 or payteck@payteck.cc.

Collections Experience Matters

by Jonathan Neubauer, CEO Vehicle Acceptance Corporation As a buy-here, pay-here dealer, your business depends principally on two major components – cash and collections.

If you can’t collect your receivables effectively, you are going to have a really hard time with your cash flow and your business is going to suffer.

Collections are a disproportionately high expense for smaller operators.

It is very difficult to be a bill collector and a customer’s best friend at the same time. You really want to sell a car to their mother, brother and cousin; but the message you need to

send them is they are past due and their vehicle is at risk.

With experienced third party servicing, you can maintain a cordial and pleasant relationship with your customers while referring the negative aspects of collections to the servicer.

Vehicle Acceptance Corporation has 23 years of experience encouraging customers to make their car payment their highest priority bill every week, paycheck or month. VAC charges a flat rate only on what we collect for you, the buy-here, pay-here dealer.

Please visit http://VACorp.com/UCN or call Mr. Dan Sauter at 888-573-4248 for more information.

Y A D O T P SIGN UCEIVE OUR TO RE

! s r e t t e l s eNew The best system for these unstable economic times!

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

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(800) 880-3081

www.payteck.cc

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USED CAR NEWS

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Get More From Your GPS Device with ACT In the subprime lending space, GPS tracking devices are becoming more popular than ever. With the cost of the technology dropping into the $100 - $300 range, these devices have a much quicker ROI than in years past and more lenders are willing to try them out.

The low price points, overall improvement in technology and features surrounding the devices have made them a common addition to many financers’ business models.

Many different devices and device providers have entered the market.

Their primary function is to provide location information about the vehicle it is installed upon. Many additional features and functionality have been made available such as starter enable/ disable, audible warning tones and software features like geo-fences and automatic locates.

More innovative solutions are available now than ever before.

One such innovation is offered from the device provider, PassTime.

Automated Collection Technology (ACT) is offered as a stand-alone product or in combination with PassTime’s GPS device.

ACT automatically warns a customer when they have an upcoming or late payment and can be programmed to disable the vehicle’s starter, rendering it unable to start if payment is not received.

PassTime promotes the benefits of using ACT in addition to simply using GPS. The primary difference between GPS and Automated Collection Technology is that GPS is a reactive solution acquired more for locating and repossessing the vehicle, whereas ACT is a proactive solution, designed to help collect payments.

PassTime’s most popular product offering, Elite Pro,is unique to the market from a device standpoint, as it combines ACT and GPS in a single unit, providing both proactive collections assistance as well as GPS functionality in case a repossession is required.

ACT is an automated system that allows lenders to program the device based upon the customer’s unique payment cycle.

The appeal of the device is that nearly all of the work is done for the lender. The device is programmed at the beginning of each payment cycle and the rest is done automatically for the lender.

The commands are sent wirelessly to the device, warning tones are automatically enabled and the device will even disable the starter if need

be, all automatically.

GPS features can also be automated from frequent auto locates to utilizing PassTime’s patented geo-fence functionality to be notified when a virtual boundary is crossed.

Nearly every aspect of the system can be programmed to operate automatically throughout the payment cycle.

By using an ACT system like Elite Pro, a lender can improve their collection process by becoming more efficient.

For example, a lender using a standard GPS device, or no technology at all, may have to look through their entire portfolio each day to determine who is delinquent.

They would then need to manually send a payment reminder or locate the vehicle.

With ACT, the device automatically does the work for the lender, including sending payment reminders and disabling the vehicle if necessary.

By allowing the device to do the work, a lender can focus collection efforts on the small percentage of the portfolio that need additional attention.

Automated Collections Technology

improves customer payment performance, helps reduce delinquencies and keeps customers paying on time.

By combining ACT with GPS, the lender has a solution that facilitates improved customer payment performance with the added benefit of GPS location features for the accounts that do require it.

As GPS devices become more affordable and more commonly used, it becomes increasingly important for device providers to continue to provide innovative products and solutions to their customers.

PassTime has developed Automated Collection Technology to enhance its GPS device features.

By coupling GPS with ACT, PassTime’s Elite Pro has the powerful combination of Automated Collections Technology added to the reliability and familiarity of GPS tracking capabilities.

The proactive approach of collections technology helps keep customers making their payments.

The security of GPS provides the lender an additional layer of protection if the account does go delinquent.

Having it all in a single device makes PassTime’s Elite Pro one of the most powerful solutions available.

The Elite Pro as well as PassTime’s entire product suite is available for purchase by contacting PassTime at 877-PASSTIME or sending an email to sales@passtimeusa.com.

We have what you need RIGHT HERE! Used Car Leasing Program Ren’T’Own® & Lease’T’Own® - The better alternative to BHPH

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Worry less about payments.

In business for over 20 years, PassTime is your trusted name for payment assurance devices. PassTimeâ&#x20AC;&#x2122;s reliable GPS tracking and Automated Collections Technology were not only designed and developed to track vehicles but to help ensure regular payments from your customers. When

Help customers stay current.

Count on PassTime for: t 3FMJBCMF (14 5SBDLJOH t "VUPNBUFE $PMMFDUJPO Technology t -JWF $VTUPNFS $BSF t ZFBST JO CVTJOFTT

you need payment assurance technology, count on PassTime.

Just ask the GPS and Collections Technology experts.

passtimeusa.com 1-800-828-1564

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