Used Car News 12/5/11

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Domestics Perform Well in Resale Awards; Japanese Cars Still Tops Chevrolet made a major breakthrough in its battle to improve its resale reputation.

The largest domestic brand won four resale value awards from Kelley Blue Book.

That ties for first in individual category winners with Honda.

Toyota and Lexus won the overall categories, with four first-place finishers among the two brands.

The awards are based on projections from the Kelley Blue Book Official Residual Value Guide and determined by a panel of automotive analysts.

Factors include vehicle and sales data, market conditions, competition within the segment, regional preferences and expectations of the future economy.

“For our customers, a vehicle purchase represents one of their greatest investments, so awards such as these continue to help us tell our great Chevrolet quality and value story,” said Chris Perry, Chevrolet’s vice president for global marketing and strategy.

Nine brands were named to

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the top spot in 19 categories.

Eric Ibara, Kelley’s director of residual consulting, said this shows the strength of today’s car market.

“All of the car manufacturers have raised the bar over the last few years with their content and design,” Ibara said. “Vehicles today are holding their value very well.”

ALG also gave out its Residual Value Awards, which honor the vehicles in each segment that are predicted to retain the highest percentage of their MSRP after a conventional threeyear period.

This year’s awards are based on 2012 model year vehicles, and winners were chosen after a careful evaluation of vehicle criteria,

including segment competition, historical vehicle performance and industry trends.

Lexus won here again, being named the best luxury brand.

“Lexus has fully bounced back from its recent challenges, proving that it is one of the strongest brands,” said ALG’s Raj Sundaram. “The brand is extending its reach with exciting and affordable new models like the CT 200h, while continuing to provide great luxury and

value across the lineup. ” Subaru of America won the Mainstream Brand Residual Value Award, landing at the top of the segment for the third year in a row. Two Subaru models also received individual segment awards: the Legacy (in the midsize car category) and the Outback (midsize utility vehicle category).

“The consistently high quality of Subaru products, and the brand’s ability to remain progressive and practical in their redesigns,

continue to draw fiercely loyal customers,” said Mr. Sundaram. “With high sales, Subaru consistently has low incentives and fleet sales, which have enhanced the brand’s used value and helped it hold on to the top spot among mainstream brands again this year.”

Audi of America took home the most segment awards of any brand, winning three for the A6 (luxury car), the S5 (luxury sports car) and the Q7 (luxury full-size utility vehicle).

IN THIS ISSUE • Buy-here, pay-here cars, customers better than image. – Page 3

• Automotive Finance Corp. prepares to mark a major milestone. – Page 8

• City works with dealers to offer test track. – Page 5

• Auction honors auctioneer for dedicated service. – Page 12

TD Auto Finance

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USED CAR NEWS

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Industry Deserves Better Image

By Ted Craig

The buy-here, pay-here business has been getting a lot of attention lately – all negative.

Following a three-part series in the Los Angeles Times, several newspapers and websites have followed with stories bashing in-house finance. An editorial in The Sacramento Bee even called for increased regulation.

Speakers at the recent National Alliance of Buy-Here, Pay-Here Dealers conference addressed the sector’s image.

Keith Whann, counsel for the National Independent Automobile Dealers Association, said buy-here, pay-here plays a vital role in getting people back to work and keeping them employed.

“If you want to get the economy growing, people need access to affordable transportation,” Whann said.

Of course, critics say dealers lock consumers into contracts doomed to failure and then repossess the vehicle for resale.

Consumers fall into this trap because they’re desperate and ignorant, the story goes.

But Melinda Zabritski of Experian Automotive said her company’s analysis found buy-here, pay-here attracted better vehicles and better customers than many believe.

Only 8 percent of the cars in the buy-here, pay-here deals Experian looked at had major issues reported

in AutoCheck vehicle history reports.

That’s higher than traditional usedcar sales, but half of the rate for cash sales.

Most buy-here, pay-here customers are locked out of the traditional market due to their low credit scores, Zabritski said.

Most, but not all. She said about 6 percent of the customers who buy from buy-here, pay-here dealers actually have prime credit.

These customers keep shopping at buy-here, pay-here stores because they like the service.

“Imagine that, people actually buy cars from people they trust,” Whann said.

The number of prime credit customers at buy-here, pay-here stores also shows they’re making a smart decision.

“These are not ill-informed customers,” Zabritski said.

In fact, about a third of them have college degrees.

Some perceptions hold up.

Minorities and the working poor make up most of the customer segment. Many are single mothers.

In many cases they rent, but a sizable portion own their homes.

Most rent because they’re younger than the general population.

So, there is potential to grow with customers as their credit improves.

“People aren’t born with bad credit,” Whann said. “They’re born with no credit and then things happen.”

70%

Average Values on Used Vehicles 61.0%

60% 50% 40% 30%

28.5%

25.1% 21.7%

20%

17.0%

14.0%

10%

8.1%

0%

<$5,000

8.9%

6.5% 0.8% $5k - $9,999 $10k - $14,999 $15k - $19,499 $20k - $24,999 $25,000+ 3.7%

BHPH

1.5%

OTHER LENDERS

Source: Experian Automotive

900

Average Credit Scores for Automotive Finance

800 700 600 500

704 539

763 725

668 538

400 300

NEW

TOTAL BHPH

USED

OTHER LENDERS

Source: Experian Automotive

Folks Pay More For Small Differences

By Ted Craig

How much difference does 100 miles make on a vehicle’s price? It depends where the 100 miles is on the odometer.

In a new paper, economists Nicola Lacetera, Devin Pope and Justin Sydnor found significant price drops at auction for each 10,000-mile mark up until 100,000 miles.

For example, cars with mileage between 79,000 and 79,099 sold for about $210 more than those with mileage between 80,000 and 80,100 miles.

But they only sold for $10 less than cars with odometer readings between 79,800 and 79,899.

Logic dictates there’s less of a difference between a 79,899-mile vehicle and an 80,000-mile vehicle than between a 79,099-mile vehicle and a 79,899-mile vehicle.

But that’s not how the mind works.

“When you think of a number, you tend to pay more attention to the left most digit,” Lacetera said.

This is called left-digit bias.

It’s a common phenomenon, Lacetera said, which is why so many prices are $9.99.

The trio noticed the quirk while looking at a large amount of data from Manheim.

They looked at vehicles sold in both the in U.S. and Canada.

It didn’t matter if the odometer reading was in miles or kilometers.

One would think professional buyers like dealers at auction wouldn’t be so easily tricked.

When talking to dealers, Lacetera found most knew of the bias.

They based their pricing on what consumers pay when they’re duped by their own brains.

More experienced buyers were especially aware of

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what they were doing.

Consignors know this trick, too. That’s why defleeting peaks before vehicles reach the 10,000-mile mark.

Dealers actually want vehicles that aren’t too close to the 10,000-mile mark because test drives will push t h e o d o m e t e r o v e r.

Sometimes they go so far as to park vehicles on the lot in a way to discourage test drives.

Lacetera said the trio also found pricing differences on websites that give year and month of registration. People paid more attention to year than month.

A car registered in January and another in December of the same year sell closer in price.

However, the one registered in December sells for less than one registered in January of the next year, even though they are only a month apart in age.

Lacetera said the findings

were somewhat surprising They proved interesting given the competitiveness of enough for publication in the the used-car market, offering American Economic Review, big-ticket items. a leading journal.

December 5, 2011

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USED CAR NEWS

December 5, 2011

NEWS BRIEFS White Ranks as Favorite Paint Color

White/white pearl, with 23 percent market share, dominated North American vehicle color for the fifth consecutive year, according to the 2011 DuPont Automotive Color Popularity Report.

The color is especially popular in the truck/SUV segment, with 29 percent of the market.

The intermediate/CUV segment found white to rise from 16 percent in 2010 to 18 percent in 2011.

Black/black effect captured 18 percent in the region, and led popularity in the luxury vehicle segment,

while black effect continues to increase over solid black on luxury segments.

Silver decreased with 16 percent share overall in the region, but continued to lead the compact segment in North America with 20 percent.

Gray had 13 percent of the market and was in fourth position across all segments, and red maintained its fifth place rank with 10 percent of North American market share overall.

High impact colors of bright blues and yellows with tempting hues of brown/beiges and greens continue to fill the region with colorful choices.

OT H E R VO I C E S Bob Mitchell, used-car manager at Mercedes-Benz of Huntington, N.Y., responds to Los Angeles Times writer Ken Bensinger’s call for more charity lots to replace buy-here, pay-here dealers: Small wonder that Mr. Bensinger takes the absurd position that nonprofit should be the operating credo of the auto dealer.

The Tribune Company (parent of LA Times) has been operating under protection of the bankruptcy courts for a while!

In accurately pointing out that nosuch operation exists in California,

CarMax Moves into Massachusetts

which included a pack-the-trunk event.

CarMax Inc. officially opened its CarMax donated $1,000 to each first used-car superstore in North participant’s charity, and the Attleboro, Mass. winner’s charity received an addiThe store is more than 13,600 tional $1,000. square feet, employs more than 50 associates and stocks about 300 used Cars.com App Wins Award vehicles of nearly every make and Cars.com has been awarded a model.

MarCom Platinum Award for the More than 200 local dignitaries site's popular app for iPhone. and CarMax associates attended a MarCom is an award administered grand opening preview event at the annually by the Association of North Attleboro location Nov. 16.

Marketing and Communication The event included a “Road Rally” Professionals. for charity featuring local television The Platinum Award is MarCom’s personalities competing in contests, highest honor.

Published By General Media LLC

perhaps Mr. Bensinger should offer his services “gratis” as a real demonstration of his apparent concern for his fellow man/woman.

(Letters to the editor can be sent to info@usedcarnews.com. All letters are subject to editing.)

USED CAR NEWS (ISSN 1555-7413) is published at

24114 Harper, St. Clair Shores, MI 48080 Phone: 586-772-5200 or 800-794-0760 Fax: 586-772-9400 www.usedcarnews.com Charles M. Thomas Founder (1947-2002) Lynda R. Thomas, Publisher

C R O S S WO R D

by Myles Mellor

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Colleen Fitzgerald, General Manager Editorial: Ted Craig, Managing Editor Jeffrey Bellant, Staff Writer Contributing Writers: Emily Caswell, Sheila McGrath, Dave Piestrzynski Columnist: Tony Moorby Advertising: Shannon Colby, Account Manager Megan Frump, Account Manager Marie Hingst, Account Manager Circulation: Helen Thomas Production: Cliff Bennett, Production Manager usedcarnews.com: Josie Godlewski, Media Manager —

Vol. 17 • No. 17 Used Car News is published the first and third Monday of each month.

Subscribers: We print advertisements as sent to us by auctions and other advertisers.

It is not possible to verify the correctness of listed vehicles in auction ads. Most lists are partial and all lists are subject to last minute changes by auto auctions, so before travelling a long distance for a particular auto auction event, contact the auction by telephone for a fax of vehicles in the sale.

Used Car News assumes no guarantees or liabilities concerning the accuracy of any advertisements. All Rights Reserved. Reproduction in any form is prohibited without the written consent of the publisher.

OUR ADVERTISING APPROVAL POLICY Please submit clear, legible copy. Payments from first time advertisers must accompany the insertion order. Distribution is guaranteed by U.S. Postal Carriers.

The advertising reservation deadline is 5:00 p.m. Friday, 10 days prior to the issue date. Camera ready ads must be received by noon on Monday prior to the issue date.

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USED CAR NEWS

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Town, Dealers Develop Track

By Emily Caswell

Popcorn, candy, free pens.

Car dealers try all sorts of gimmicks to get customers to test drive a vehicle.

Dealers in Naperville, Ill., can offer up something even better – a test drive on a private track.

The idea for the Naperville Test Track facility was actually born out of concerns about safety rather than sales.

The city and the Naperville Development Partnership (NDP) came up with the idea in 2002 as a way to reduce the number of test drives being conducted within residential neighborhoods, said Erik Hallgren, administrative analyst for Naperville’s Department of Public Works.

It was easy to find dealers who were also interested in the track. The next step was finding the land.

That became available when Burlington Northern Santa Fe Railroad sold its 60acre auto storage facility to a consortium that included the city and local car dealers.

A focus group then collec-

tively worked to determine which features and amenities should be included in the design. A design team took the ideas and incorporated them, along with addressing safety and maintenance issues.

“It enables us to provide an extra ‘Wow’ experience.”

– Joel Weinberger

A project this size came with a large price tag.

The land was close to $2 million, engineering was around $150,000 and construction was just more than $1.5 million - all of which the city covered.

A group of 12 dealerships signed on to use the track and split the annual $50,000 operating costs. Ten cur-

rently belong to the group.

All of it is definitely worth it, especially to dealers like Danny Wolf of Dan Wolf Automotive Group.

Wolf ’s Lexus and Toyota stores are the main users of the test track, accounting for roughly 65 percent of each month’s use. Wolf serves as president of the Naperville Test Track Association, as well.

“I have been in the automobile business for nearly 25 years now,” he said. “This is the first I’ve heard of something like this where the city and the dealers formed a partnership to build and maintain such a facility.”

The track’s popularity among customers can’t be denied.

“It gives us a unique opportunity and environment to demonstrate our vehicles and their features,” said Joel Weinberger, dealer principal at the Continental Motors Group.

“It enables us to provide an extra ‘Wow’ experience during the test drive phase that cannot be duplicated by our same-brand competitors

RIDE AND DRIVE: A group of dealers in suburban Chicago worked with local officials to create this trackwhich theyuse fortest drives. It solved safety concerns and provided a new marketing tool.

in the Chicago market.”

Weinberger uses the track and he serves on the executive committee of the track association.

The track benefits the city, too.

“It reduces congestion on our roads and provides a safe driving environment for potential car buyers,” said Hallgren.

“It is a great economic development tool that supports our local car dealerships.”

The track is used for community events along with test drives. A local politician used it recently for a green car show, which highlighted the Naperville Green Fuels

Depot project.

Weinberger said cities that follow in Naperville’s footsteps need to be sure to utilize a track if they invest in one.

“It can be a valuable asset and differentiator to help attract business to the area, but only if supported by the dealer body through consistent usage and making sure the test track experience is an integral part of the sales process,” he said.

Wolf said he can’t see selling without the track.

“It works out well for us on so many levels,” he said. “I think we would be somewhat lost if it was taken away from us at this point.”

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USED CAR NEWS

December 5, 2011

NAAA Says Law Ripe for Fraud

By Jeffrey Bellant

Industry organizations and top auction chains are working with Indiana officials to change the rules regarding dealer licenses.

The effort is fueled by companies taking advantage of loopholes in the law that allow someone to obtain a license without having an actual dealership.

The National Auto Auction Association updated members during its convention in September about the problem of wholesalers “warehousing” at the same location.

According to the legislative report, Indiana’s requirements for obtaining a dealer license allow people to get them without even having a car lot.

Some companies are buying up warehouses and using them to provide multiple property addresses to people seeking dealer licenses.

Internet websites are available to help these dealers warehouse their business through web hosting facilities. So a “dealer” may rent an address at the warehouse that doesn’t even have an office, phone or desk.

The National Independent Automobile Dealers Association has also raised complaints.

NIADA CEO Mike Linn said these same dealers use the Indiana loopholes as an unfair advantage over more legitimate dealers.

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“They are curbstoning their cars, selling them on the street,” he said.

Auctions are also worried because it is difficult to track down one of these wholesalers if they commit some type of fraud.

For example, auctions in Massachusetts reported an unusually high number of Indiana dealer badges, according to the NAAA’s report. The concern is wholesalers with Indiana licenses might attend an out-of-state auction to sell vehicles and purposely bid up the price.

People just interested in getting a car at wholesale prices are also leveraging the loophole in the law.

NAAA representatives have spoken with the Indiana Secretary of State about the issue.

They are going to meet with lawmakers, as well.

Linn has written a letter on behalf of the NIADA raising his concerns to the Indiana Secretary of State.

AJ Feeney-Ruiz, spokesman for the Indiana Secretary of State, said the state has worked over the past year to improve its Auto Dealer Services Division.

“The secretary is spending a lot of time looking into this issue and others, meeting with interested parties through our newly re-booted Motor Vehicle Advisory Board and others to make sure whatever steps we take are both economically and statutorily sound,” he said.

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USED CAR NEWS

December 5, 2011

New Rules Could Prove Costly Using the wrong bankruptcy form now causes dealers to lose out on money and may even bring a fine.

The federal government issued new proof of claim forms that went into effect Dec. 1.

The forms were basically the same for decades with only small changes, according to bankruptcy attorney David Sicay-Perrow.

Concerns about the growth of third parties in bankruptcy proceedings brought on these major changes, Sicay-Perrow said.

Creditors, including buy-here, payhere dealers, who seek money in a Chapter 13 bankruptcy case need to For Cars, Trucks and Vans

learn all the details of filling out these new forms.

“If you don’t fill them out properly, you won’t get paid,” Sicay-Perrow said.

What’s more, the individual who fills out the forms improperly could face a $50,000 fine for fraud.

Expect little help from the bankruptcy trustee in figuring out the ins and outs of the forms.

“The trustees are maniacally adverse to giving legal advice,” SicayPerrow said.

He recommends dealers work with a bankruptcy attorney to make sure they follow the right procedures.

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PAGE 8 – FINANCE FOCUS

AFC Ready to Mark Milestone UCN: What is the history of AFC and where are you at in the market today?

Gottwald: AFC will be 25 in January. AFC comes from pretty humble beginnings as a source of working capital, what we commonly call floorplanning, for used-car dealers buying cars at auc-

mobile tools. Wherever a dealer is buying a car or selling a car, we can accommodate him. What our customers really like about our model is we don’t dictate to a dealer where and how he can do business. In addition to a really diverse group of nearly 1,000 auctions that

Don Gottwald

Gottwald is the president and CEO of Automotive Finance Corporation (AFC), a subsidiary of KAR Auction Services Inc. AFC is one of the largest independent providers of dealer floorplan financing in North America. AFC, as part of KAR Auction Services, Inc., provides financing solutions for automobile retail, wholesale, powersport and RV dealers, as well as salvage and daily rental operators. tions. We don’t want to imply there was no floorplanning available for the independent used-car dealer, but much more liquidity is available today than there was back then. Most of the floorplanning came from big banks and the captive finance companies. Typically, those sources didn’t provide funding for used car dealers.

Today, AFC is a much bigger operation, of course, and we’re much more diverse.

We offer dealers other financing solutions besides used-car purchases from auctions and we provide that financing to a broader base of dealers across other industries.

We finance recreational vehicle dealers, powersports dealers, marine dealers – what we often call the specialty markets. In 1987, we started financing in what became the ADESA auctions.

Today, our funding is available at auctions across the industry.

Back then, it was primarily a physical auction structure.

The idea of people buying and selling cars over the Internet may have been in somebody’s mind, but it certainly wasn’t a reality for us.

Today, we’re wherever the dealer wants to do business.

We have a local branch infrastructure that’s grown to about 100 branches throughout the U.S. and Canada.

We have web tools and December 5, 2011

our money is good at, we interact with dealers in our branches, on the web, over the phone, however they want to do business.

UCN: Credit has been a big issue for everybody in the past few years, including dealers. What kind of impact has that had on your business?

Gottwald: One thing we’ve seen change in the last 25 years is the access to credit and the access to capital.

There was very little floorplanning available 25 years ago for the used car dealer.

Today, there is a lot of financing available.

And while there may have been some market shifts in the last few years, there remains a lot more floorplan financing and a lot more retail financing available for dealers. That’s really helped the industry grow.

We certainly were not immune to the financial crises of the last few years.

The good news for us is we stayed very healthy during that period. Our access to capital is one of the strengths of our organization.

We have long-standing relationships, long-standing credit facilities, that were in place that allowed us to weather the storm with a lot fewer aftershocks than some others. There were some big finance companies in the floorplan business

that were hit pretty hard.

Our business today is stronger because of that. Our dealers had to make quick adjustments. The operators that weathered the storm are stronger.

They’ve taken out any excess in their businesses.

They get by on fewer days supply of inventory, which has some impact on us.

They’re financing fewer cars to sell the same number of vehicles they were before.

But that’s overall very healthy for the industry, so by extension us. We have been growing for the last two and a half years in a lot of different ways. We’ve been growing with our existing base by offering access to credit.

And we’ve diversified into the other asset classes I’ve mentioned and offered dealers in those industries credit. We had done that in ad hoc way before, but now we do it more formally.

We’ve grown our branch infrastructure and we’re doing it again.

We are expanding the number of branches we have and the number of employees serving our customers. A lot of suppliers to the auto business scaled back, cut their infrastructure, reduced their offerings, and took employees out of the mix in order to cut costs. We made adjustments, but lately we’ve been growing to improve our service to dealers.

UCN: What can AFC do for dealers today?

Gottwald: At the end of the day, we believe our value proposition is how we service our customers. We try to view our business from the perspective of helping our customers solve their problems. In floorplanning, that’s liquidity, but it’s also expertise.

Our branches are staffed by seasoned industry professionals that know their local market, auctions and dealers. We have expertise that a dealer might otherwise have to hire somebody to provide. For a very small business, which is our core customer, that’s an incremental expense they don’t need to take on when they do business with us.

It’s the same with capacity.

Because we have this huge infrastructure, we provide that. We really view our business as a service business.

Listening to our customers and hearing what their challenges are has led us to seek growth in other areas. We also really believe we can provide access to additional inventory sources.

Many of our customers are familiar with our sister company ADESA and its recent acquisition, Openlane.

But what we found a couple of years ago is not many customers were aware of our other sister company, Insurance Auto Auctions.

They provide access to a whole other source of inventory. Granted, the majority of that is salvage units, but they also have a large number of units that are clean-title vehicles.

We recently entered into a relationship with National Powersports Auctions.

Another area where we can help dealers is that we are one of the only players in the industry that will provide capital for purchases made outside an auction.

For example, trade-ins.

More and more dealers are looking at trades as a key source of inventory given how tight supply is.

We also help dealers expand. We have floor lines for rental fleets. More and more dealers are looking at other sources of revenue and rental is one of those.

We’ve also provided solutions around the buy-here, pay-here space for dealers that want to hold their own paper.

Many dealers continually

tell us our business practices and products help them become stronger operators.

Dealers who started with us with a $50,000 line have grown to many times that, but they say they still do business the way we asked them to do it back then because it’s a prudent way to operate.

U C N: W h a t d o y o u foresee for floorplanning in the next year?

Gottwald: Generally, we’re very positive. We see signs of health in the industry.

Everybody worries about double dips, and those issues are real, but we’re positive.

We all hope around the industry that we’ll continue to see positive growth yearover-year as the economy starts to recover.

That’ll translate into newcar sales and used-car sales.

For the next year inventory is forecast to remain tight, so wholesale values will likely remain elevated. That is going to make access to capital even more important for dealers and we plan to be there for them.

We continue to see a big opportunity in floor planning as many independent dealers today don’t use it.

They either aren’t aware of it or they don’t think they have a sizable enough business to justify it.

We’re really excited about the new tools and services we’re bringing to the market.

They’re all aimed at making it easier to do business with us. AFC is making its single largest investment in technology that we ever had in our 25-year history.

Hyundai, Volvo Top CPO List IntelliChoice recently announced the winners of its 13th annual ranking of manufacturer certified pre-owned programs.

For the fifth straight year, Volvo earned the top ranking among Premium manufacturers, while Hyundai was ranked highest among Popular vehicle brands.

“Since 2008, Hyundai had placed third overall in the Popular category, but was finally able to break into the top spot overtaking the two previous winners, Mini and

Volkswagen,” said Eric Anderson, senior analyst at IntelliChoice.

“While Volvo was able to retain its top ranking in the Premium category, Cadillac and Porsche are not far behind.”

IntelliChoice originally developed its CPO analysis methodology to address the significant growth of manufacturer CPO programs in line with its stated mission to provide consumers with comprehensive automotive analysis and advice.

WWW.USEDCARNEWS.COM

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USED CAR NEWS

December 5, 2011

Feds Claim Dealer Laundered Drug Money

Buy in the right lane — make the most of your time.

The right vehicles at the right time, online and in-lane.

The owner of a Newark, N.J., auto dealership and his father allegedly used the dealership to launder money from cocaine sales.

Gilberto A. Teixeira Sr., 48, of Secaucus, N.J., and Gilberto A. Teixeira Jr., 23, of East Newark, N.J., were arrested at GT Motor Sport LLC in Newark by special agents of the IRS and the DEA. An IRS undercover special agent met with Teixeira Sr. on April 27 at the dealership, claiming he was a cocaine trafficker looking to purchase a car with narcotics proceeds.

The agent negotiated to buy a BMW M5 for $50,000 and explained that he was concerned about paperwork

being filed in connection with the purchase. During the meeting, Teixeira Sr. told the agent that the contract would reflect a $9,000 down payment because a down payment of $10,000 would be “trouble.”

Teixeira Sr. assured the agent that he would not file any paperwork and explained that the contract would show the car was financed though the agent planned to pay cash in full.

Teixeira Sr. also explained to the agent that as the lien holder of the automobile, Teixeira Sr. would be able to claim the automobile if it were seized. The agent also told both Teixeiras that he wanted to put the car in his girlfriend’s name.

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USED CAR NEWS

December 5, 2011

Auctioneer Wins New Award

Photo Courtesy of ServNet KING OF THE BLOCK: R. Charles Nichols (left), president of BSC America, poses with Richard Murray, who won ARI’s first AuctioneerAchievement Award. ARI’s Chris Slaughter was also present for the event.

Richard Murray, auctioneer at BSC America’s Bel Air Auto Auction in Maryland, recently won ARI’s first Auctioneer Achievement Award.

ARI representative Chris Slaughter presented Murray with the award during the auction’s annual Harvest Day Sale.

R. Charles Nichols, president of BSC America, was present for the sale and award ceremony.

“Richard works hard with ARI at every sale to get their cars sold, and we congratulate him on being the very first recipient of ARI’s Auctioneer Achievement Award,” said Nichols, reporting that Murray has been a fixture on the auction block at Bel Air Auto Auction for more than 40 years.

Murray started his career with Bel Air Auto Auction in 1965 as a driver, Nichols said.

“But he had begun working with his father, Elmer Murray, as an auctioneer when he was 17,” he said, “and started selling cars at the auction in 1971.

“He has done a great job for us ever since.”

Murray thanked both ARI and the auction.

“I’m honored to receive this award from ARI,” said Murray. “I hate to think how long ago it began for this old fellow, but it’s still a lot of fun doing the auction cry, and I look forward to selling many more vehicles for ARI in the years to come at Bel Air Auto Auction.”

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11/23/11

11:47 AM

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USED CAR NEWS

December 5, 2011

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Dealer Settles Deceptive Ads Suit The owners of a Whatcom County, Wash., car dealership will pay penalties and attorney’s fees to settle allegations by the attorney general’s office of deceptive sales and advertising practices. Not admitting any wrongdoing, the owners agreed to comply with the law.

On Nov. 16, the attorney general’s Consumer Protection Division filed a complaint and consent decree with RHLI Inc., the owner of Dewey Griffin Buick-GMC-Subaru. In that complaint, the attorney general alleged that RHLI “power booked” loans.

The attorney general’s office made a series of additional accusations – that were denied by RHLI, but are

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• Failing to disclose conditions or restrictions related to sales offers by, for example, sending out mailers advertising vacation packages with each test drive without also mentioning that the prize required the payment of taxes and fees along with other restrictions.

• Misleading consumers with deceptive savings by advertising “40% off orig. MSRP” for used vehicles when the MSRP is not the industry standard for pricing used vehicles.

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December 5, 2011

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More Consumers Shop for Cars DETROIT (AP) – Car dealers are getting a surprise endof-the-year bonus: More Americans are replacing old cars and trucks, enlivening a normally sleepy time for auto sales and putting November on track to be the industry’s strongest month of the year.

Dealers and analysts say people are finally getting rid of cars and trucks they’ve held onto for more than a decade. That demand, plus attractive lease deals, an ample supply of Japanese models and promotions on remaining 2011 models have drawn buyers to showrooms in large numbers in recent weeks.

“We’re seeing the most showroom traffic that we’ve seen all year,” said Ed Williamson, part-owner of two Miami-area GM BuickCadillac-GMC dealerships.

The spike in activity comes after months of sputtering sales. Consumers have been reluctant to take on major debt such as car payments because of the uncertain job market. Unemployment has been around 9 percent for more than two years with no

sign of significant improvement.

Sales also suffered when Honda Motor Co. and Toyota Motor Corp. ran short of models during the summer and early fall because of factory disruptions caused by the earthquake in Japan and flooding in Thailand.

Now supplies are starting to return to normal, and customers have a better selection.

So far this year, sales have been better than 2010, an annual rate of 12.6 million compared with 11.5 million, but that’s still far short of the 2005 peak of 17 million.

Recent sales have been so strong that General Motors’ top sales executive predicts that November figures will hit an annual rate of around 13.8 million light vehicles in the U.S. That’s a big step up from last November, when the auto industry was just starting to recover from the economic meltdown. Back then, the sales rate was only 12.3 million.

After years of holding off on purchases, people are tiring of their old cars and

trucks. So despite a volatile stock market, high unemployment and worries that the European debt crisis could destabilize the global financial system, people are buying, said Jesse Toprak, vice president of industry trends for the TrueCar.com auto pricing website.

The average age of a car on U.S. roads is now a record 10.6 years, according to the Polk auto industry research firm. Vehicles are so old that people’s lives have changed and they need different models, or their cars are just worn out, he said.

“They just simply couldn’t wait any longer,” he said.

In Houston, physician David Vener was among those who kept an old car for a long time. But he parted Monday with his 1999 Lexus sport utility vehicle, which had 135,000 miles. He traded it in at River Oaks Jeep for a new Grand Cherokee.

The Lexus, he said, had been almost trouble-free for the last 13 years, but it was facing some expensive repairs. Also, it didn’t have side air bags and other safety fea-

tures that newer cars have, he said.

“After three teenage boys and a lot of miles, it was beginning to show its wear and tear,” Vener said. “It was getting a little long in the tooth.”

Lease deals also are drawing people into showrooms, Toprak said, with November leases approaching an annual high. Leases had been just above 20 percent of the U.S.

market during the year, but this month they’re running about 25 percent.

Low interest rates and strong resale values after leases have ended help car companies offer deals.

Also, dealers are clearing out the remaining 2011 models. And by this time of year, automakers normally offer good discounts to get them sold.

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USED CAR NEWS

December 5, 2011

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Manheim announced that Janet Barnard has been named executive vice president and chief operating officer. She will report to Sandy Schwartz, president of Manheim.

Barnard is a Cox Enterprises veteran with more than 24 years of experience, working in various senior leadership roles with Cox Communications. Most recently, she served as senior vice president and general manager of the Cox Communications Central Region.

Barnard’s areas of responsibility at Manheim will include overseeing the operations, sales and IT functions.

She will assume her new role in early December.

Law Firm Adds Partner

Hudson Cook LLP, a nationwide provider of legal compliance services for the financial services industry, recently announced the addition of Angela Maynard as a partner establishing the firm’s Cleveland office.

Maynard will focus her practice on federal and state consumer financial services laws.

Before joining Hudson Cook, Maynard worked as counsel for Chrysler Financial, and DeepGreen Financial where she was general counsel and chief compliance officer.

As general counsel at DeepGreen she

was a member of the executive team that developed strategic direction.

Maynard was with KeyBank in Cleveland for 10 years where she held the roles of senior counsel, senior vice president and chief privacy executive.

Maynard has developed expertise in consumer compliance and privacy law over the course of 20 years.

Maynard is a graduate of University of Detroit-Mercy School of Law where she earned both a law degree and M.B.A. J.D. Byrider Names Top Operators

J.D. Byrider recognized winners of the company’s annual awards at its November convention in Rancho Palos Verdes, Calif.

The Franchise of the Year winners were chosen in three categories – single (one location), mid (two-three locations) and multiple (more than three locations). The winners were: • Single: J.T. Gandolfo, for his location in Columbia, S.C. • Mid: Mark Bedgood, Bill Evans, and Fred Nichols for their locations in Longview and Tyler, Texas.

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11/29/11

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USED CAR NEWS

December 5, 2011

RETAIL MARKETS OHIO

Terry Reineke, owner, Rino’s Auto Sales, Celina, Ohio: “I’ve been in the auto business for 30 years. I’ve been at our new store six years as of Dec. 1. I was Ohio Quality Dealer in 2010.

“We stock an average of 60 units. It’s about the same as last year, maybe up a few units.

“The market has required me to attend more sales weekly – than what I’ve done in the past – to keep our inventory up. The vehicles are just not there like they were eight or nine years ago.

“We carry vehicles that are as close to new as possible.

It’s something I’ve built my dealership on in the 30 years I’ve been in business.

“About 50 percent of my inventory comes from franchise dealers. It could be a Honda dealer trading in a domestic vehicle, or a domestic dealer trading in a Honda. The franchise dealers don’t want to keep the late-model vehicles I sell because they are too much competition for their vehicles.

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Compiled By Jeffrey Bellant

“There’s probably only a handful of independents that deal in the type of vehicles that I sell, in terms of that late model product.

“We have Honda plants within a 25-mile radius. So 14 years ago, I started dealing in Hondas. It’s my No. 1 seller and the No. 1 vehicle I keep in stock. Of the 60 to 70 vehicles I try to stock, about 25 to 30 are Hondas.

“I also attend auctions.

During a recent week, I attended four sales, from Columbus Fair Auto Auction to Manheim and ADESA sales.

“Years ago, I could find what I needed by attending two auctions, now I’ve had to double the sales I attend to make sure my 11 employees have product to sell.

“On average, we’ll sell 630 to 650 units per year. I would say that we’re a little bit higher than last year.

“But the last three years in the industry have probably been the toughest years I’ve ever had to deal with.

“Our vehicles are 80 to 85 percent imports.

“Right now, we carry about 50 percent cars and 50 percent SUVs and trucks. But

that has to do with the season and winter coming.

The trucks are probably the toughest thing to find, so that part of my inventory is minimal.

“We have a full service department with three fulltime mechanics. It’s available for our own reconditioning and outside customers.

“I inherited the service department when I got this store six years ago. It’s the best thing I ever did.

“Service is a big part of the industry today. I would encourage any independent who isn’t in the service business to get into the service business tomorrow.

“For our late model vehicles, our recon costs are about $250 on average.

“We haven’t done much newspaper or radio advertising. It’s because of our success with the Internet.

We use AutoTrader and Cars.com. We were probably one of the first independents to put videos of the vehicles on our site instead of just photos.

“I just delivered a vehicle to Alabama a few weeks ago.

It’s not just our local people that are buying our vehicles.

“Our average retail price is probably $22,000 to $23,000.

The average vehicle is a 2010 model year with 20,000 miles.

“A recent car I sold was a 2011 Honda Pilot. It had 10,000 miles on it and sold for $32,800.”

TENNESSEE

Boyd Wilson, sales manager, Wilson’s Auto Sales, Knoxville, Tenn.: “Sales are going pretty good. We had a good month in November.

“We usually keep about 50 to 55 vehicles in stock. It’s about the same as this time last year.

“We’ve been out here for 15 years, so we’ve built a good trade.

“We average about 30 units sold per month. It’s about the same as this time last year.

It’s not what we’d want it to be. We’d prefer to sell 35 to 40.

“Our inventory comes more from auctions, about 90 percent of our stock. We buy some at local auctions. We also go to auctions in Orlando and Sanford, Fla. “Our inventory includes vehicles that are 2000

through 2008, 2009.

“Average mileage on our vehicles is about 75,000.

People are buying higher mileage cars than they were last year because that’s what’s available.

“The type of cars that we used to buy for $10,000 are now going for $12,000.

“We carry about 50 percent domestics and 50 percent imports.

“Our SUVs are selling well.

We’ll sell more trucks and SUVs than we sell cars.

“The dealership sells straight retail. We use credit unions mostly to finance customers.

“We’ll use the Internet to market cars. About a third of our business is repeat and referral.

“Before cars go on the lot here, we take them to a local mechanic and have them checked out completely. We make sure they’re road ready.

We’ll average about $300 to get a car ready and $100 for detail.

“The average retail price here is $12,000. That’s a little higher than this time last year.

“We recently sold a 2003 Toyota 4Runner for $13,000.”

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WHOLESALE MARKETS ARIZONA

Jim DesRochers, vice president, Dealers Auto Auction of the Southwest, Phoenix: “This is our eighth year here. We also have a sister auction in Colorado (Dealer’s Auto Auction of the Rockies) that’s been around for 13 years.

“We have six lanes. We’ve been running five or six lanes, depending on the week.

“Our volume is about 500 units. I know this is hard to believe, but we’re actually doing better this year than last year.

“The reason is the bulk of our niche is older cars and that’s what’s doing well right now.

“Our market, on the buy side, is the independent dealer and the buy-here, payhere dealer.

“On the seller side, we’re drawing cars from the franchise dealers. We also get repossessions from consignors like Fireside and CPS. “Sales percentages have been great. On the day before Thanksgiving, we ran 63

percent. We normally run 68 to 72 percent (on a nonholiday week).

“The Mexican business is starting to come back for us.

It’s nowhere near what it was two years ago. We’ve done a lot of different things in that time. We’re 100 percent Simulcast now, for example.

“We’re drawing a little over 300 dealers in the lanes, on average. I try to get at least 1 to 1.5 dealers in the lanes per car consigned.

“We’re up in every category this year. Through July, we were doing very well, better than last year. But I figured, ‘Here comes August, September and October (and things will cool off ).’

“But it got stronger than I could have imagined since August.

“We’ve got four salespeople on the road, so we’re hitting all of the buy-here, pay-here dealers and independents throughout Arizona.

“Dealers here are not selling a lot, but they’re buying and storing cars (for tax season). The franchise guys are not doing as well.

“Our volume is about 60 percent dealer consignment and the rest is lease and

repossessions, but mostly repos.

“Prices are going up, there’s no question. But our volume has still gone up.

“Four-by-four trucks are really hot, no question. We get guys from out of state all the time and they’re looking for 4x4 trucks.

“I think the only units that are struggling are domestics that are newer, from 2009 to 2011 model years. The units with low mileage are especially struggling.”

MASSACHUSETTS

M i c h a e l B . C o o l e y, general manager, Quincy Auto Auction, Quincy, Mass.: “We’ve been in business about 21 years. We have six lanes and we run all six. We just added a lane in the past year.

“Sales are going excellent.

We run about 1,000 cars a week.

“In volume, we’re up from 600 units this time last year.

It’s been a pretty strong market up here in New England.

“Sales percentages have been pretty steady with about a 70 percent conver-

Compiled By Jeffrey Bellant sion rate. That’s comparable to this time last year. I don’t think we’ve ever gone below 67 percent.

“Our bidder badge count in the lanes usually hovers around 850. That’s up about 100 dealers from this time last year. It’s due to a little bit of everything. We’ve put a few additional salespeople out on the road.

“We’ve reached out to more dealers and invited them in. The Internet helps a lot.

“Also, having the product – the inventory – to sell is the main thing.

“Our dealers are coming from all over New England.

We also have dealers coming from outside the region. We have a couple of guys who come in from Michigan. We get some dealers from Pennsylvania and a few people come up from the Carolinas.

“But, for the most part, it’s Massachusetts, Rhode Island and New Hampshire, places like that.

“Dealers’ moods are good since there’s product here to buy. They’re not wasting a trip to come here.

“One of the biggest (attrac-

tions) is having enough inventory so dealers can get the cars they need. We have a pretty interactive web site which dealers use a lot. They can pretty much work out their shopping list ahead of time.

“Almost all of our volume is dealer consignment. If we run 1,000 cars, there are maybe 100 that are fleetlease. Those (fleet-lease units) are mostly bank repossessions. That’s the same as this time last year.

“We’ve gone away from an individual RV sale. We still sell them in the lanes, but we don’t have a separate sale for them.

“We will occasionally have a specialty equipment sale, as long as we have the inventory.

“That sale will include anything from backhoes and front-end loaders to Bobcats, things like that.

“Our average price overall is between $3,500 and $4,500. That’s pretty comparable to last year.

“Fuel-efficient vehicles and economical units are doing well. But at this time of the year, the trucks and SUVs are starting to sell well, too.”

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11/29/11

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USED CAR NEWS

December 5, 2011

TRUE COST OF INCENTIVES (TCI) TMV does not include options

TCI Avg Equipped New TMV Model Years Old 1 2 3 TCI Avg Equipped New TMV Model Years Old 1 2 3 TCI Avg Equipped New TMV Model Years Old 1 2 3 TCI Avg Equipped New TMV Model Years Old 1 2 3 TCI Avg Equipped New TMV Model Years Old 1 2 3 TCI Avg Equipped New TMV Model Years Old 1 2 3 TCI Avg Equipped New TMV Model Years Old 1 2 3 TCI Avg Equipped New TMV Model Years Old 1 2 3 TCI Avg Equipped New TMV Model Years Old 1 2 3 TCI Avg Equipped New TMV Model Years Old 1 2 3 TCI Avg Equipped New TMV Model Years Old 1 2 3 TCI Avg Equipped New TMV Model Years Old 1 2 3 TCI Avg Equipped New TMV Model Years Old 1 2 3

October-10

October-11

Compact Car $1,950 $819 $19,667 $20,988 Avg Trade-in TMV* Avg Trade-in TMV $10,286 $12,051 $9,675 $11,311 $8,420 $9,516 Midsize Traditional SUV $1,358 $1,415 $34,853 $35,076 Avg Trade-in TMV* Avg Trade-in TMV $20,100 $21,040 $18,730 $17,745 $15,984 $16,772 Large Car $3,869 $4,005 $29,592 $31,894 Avg Trade-in TMV* Avg Trade-in TMV $14,009 $15,888 $12,469 $13,277 $10,983 $11,835 Entry Luxury Car $3,246 $2,802 $38,526 $39,809 Avg Trade-in TMV* Avg Trade-in TMV $25,804 $29,587 $22,170 $23,964 $19,638 $21,748 Compact Truck $1,872 $2,477 $24,751 $24,469 Avg Trade-in TMV* Avg Trade-in TMV $15,988 $18,272 $14,472 $15,867 $13,051 $13,144 Large Truck $4,134 $4,171 $35,044 $36,566 Avg Trade-in TMV* Avg Trade-in TMV $20,870 $22,454 $19,216 $19,244 $16,934 $17,895 Compact Crossover SUV $1,760 $2,009 $24,971 $25,097 Avg Trade-in TMV* Avg Trade-in TMV $15,554 $16,598 $13,800 $14,915 $12,206 $13,007 Minivan $2,355 $1,610 $30,642 $32,459 Avg Trade-in TMV* Avg Trade-in TMV $15,119 $17,299 $14,567 $15,896 $12,518 $13,981 Large Traditional SUV $3,827 $3,559 $49,213 $47,935 Avg Trade-in TMV* Avg Trade-in TMV $27,876 $31,324 $23,776 $24,270 $20,946 $20,843 Midsize Car $2,243 $1,940 $24,398 $25,451 Avg Trade-in TMV* Avg Trade-in TMV $13,888 $14,732 $12,610 $13,967 $11,368 $12,143 Midrange Sport Car $2,225 $1,847 $55,473 $60,606 Avg Trade-in TMV* Avg Trade-in TMV $36,982 $37,026 $28,221 $34,100 $25,225 $26,812 Midrange Luxury SUV $2,350 $1,097 $57,026 $58,659 Avg Trade-in TMV* Avg Trade-in TMV $42,940 $43,750 $34,852 $37,027 $29,087 $32,358 Subcompact Car $1,184 $388 $16,908 $18,485 Avg Trade-in TMV* Avg Trade-in TMV $9,246 $10,671 $8,793 $10,119 $7,873 $9,167

% Change ‘10-’11 -58.00% 6.72% % Change ‘10-’11 17.16% 16.91% 13.02% 4.20% 0.64% % Change ‘10-’11 4.68% -5.26% 4.93% 3.52% 7.78% % Change ‘10-’11 13.41% 6.48% 7.76% -13.68% 3.33% % Change ‘10-’11 14.66% 8.09% 10.74% 32.32% -1.14% % Change ‘10-’11 14.29% 9.64% 0.71% 0.90% 4.34% % Change ‘10-’11 7.59% 0.15% 5.67% 14.15% 0.50% % Change ‘10-’11 6.71% 8.08% 6.56% -31.63% 5.93% % Change ‘10-’11 14.42% 9.12% 11.69% -7.00% -2.60% % Change ‘10-’11 12.37% 2.08% -0.49% -13.51% 4.32% % Change ‘10-’11 6.08% 10.76% 6.82% -16.99% 9.25% % Change ‘10-’11 0.12% 20.83% 6.29%

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-53.32% 2.86% % Change ‘10-’11 1.89% 6.24% 11.25% -67.23% 9.33% % Change ‘10-’11 15.41% 15.08% 16.44%

Edmunds.com’s monthly True Cost of Incentives (TCI) report takes into account all of the manufacturers’ various United States incentives programs, including subvented interest rates and lease programs as well as cash rebates to consumers and dealers. To ensure the greatest possible accuracy, Edmunds.com bases its calculations on sales volume, including the mix of vehicle makes and models for each month, as well as on the proportion of vehicles for which each type of incentive was used. TCI data (and other Edmunds.com data products) can be viewed industrywide, import vs. domestic, by country of origin, by make, by model and by segment. True Market Value (TMV) is the transaction price for vehicles.

©2011 ProconGPS, Inc.

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December 5, 2011

COMPILED BY JEFFREY BELLANT

AUCTION’S FOOD DRIVE DRAWS DEALER SUPPORT

Photo Courtesy of Mid-South Auction DONATION: Bob Sullivan, general managerof Mid-South Auction, presents a check to Tara Lindsey, director of volunteer services for Stewpot Community Services.

Mid-South Auction in Jackson, Miss., presented the proceeds of its annual Brown Bag Food Drive to Stewpot Community Services during a recent sale.

Approximately $1,700 worth of groceries, as well as cash donations and proceeds from a golf tournament, will help the agency serve the homeless and hungry in the Jackson metropolitan area.

Tara Lindsey, director of volunteer services for Stewpot Community Services, said that the need for assistance always increases in the winter, especially during the holiday season.

In addition to operating several shelters in the area, Stewpot also has a soup kitchen and provides groceries to needy families.

“It takes an entire community to effectively fight homelessness and hunger,” Lindsey said. “Without the help of companies like Mid-South Auction, our agency would not be able to provide this assistance.”

Bob Sullivan, the auction’s general manager, believes that companies have an obligation to model good corporate citizenship.

“In these tough economic times it’s more important than ever to provide whatever assistance we can to help others,” he said.

Lindsey praised the auction for its efforts.

“Mid-South Auction, its employees, and its buyers and sellers are truly blessings to our organization and to this community,” she said.

SALE FEATURES HOT RODS BSCAmerica’s Bel Air Auto Auction recently held its 38th Annual Harvest Sale. The sale showcased the consignment of more than 1,500 vehicles, with more than 1,000 dealers attending the sale, both in the lane and online.

The final part of the day included a run of more than 40 hot rods and muscle cars.

“Our Harvest Sale was the highlight of the season,” said R. Charles Nichols, president of BSCAmerica.

“We had tremendous participation from new and used car dealers and national remarketers alike, and we all enjoyed the special events that

carried the flavor of the season: a pumpkin smash for cash and visits from two of the Baltimore Ravens’ cheerleaders.”

Major consignors included Ally, Mile One, ARI, PHH, Wheels, Jones Junction/Bel Air Nissan and Lindsay Automotive.

We invite news items and top-quality photos from our readers to be considered for “Around the Block.” Please include the name of a contact person and a telephone number.

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

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

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CLASSIFIEDS

Advertisers are solely responsible for content of classified advertisements. To place an ad, or for more information, call the Classified Department: 800-794-0760 Ext. 107 TRANSPORTATION SERVICES

DEALER SERVICES

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

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UPCOMING ISSUES: JANUARY 2 2012 FORECAST

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C L A S S I F I E D S

UCN_22

11/29/11

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3:11 PM

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USED CAR NEWS

December 5, 2011

Disconnected Jottings From Tony Moorby...

A couple of issues ago I was extolling the virtues of Occupy Wall Street with a c o u p l e o f c av e a t s .

Unfortunately, the bad apples have tended to make

they should all band together and establish a greater presence around the White House and its lawns; the political establishment being as much to blame for

Tony Moorby • 40-year veteran of the industry • President from 1997–2000 of ADT Automotive • Served as ADESA’s executive vice president of sales and marketing • Moorby & Associates 2006–present • Awarded the Ring of Honor by NIADA • NAAA Hall of Famer

the rest of the barrel rotten and have probably ended up doing a disservice to their combined causes. One of their main problems was that they didn’t have a unified agenda or mandate.

All the voices became clamorously muffled and therefore muted.

They haven’t underscored any message by staying longer than sanitary conditions would humanely tolerate and are now looking more like some radical, hippy horde.

Instead of housing themselves on various cities’ financial plazas perhaps

the mores we currently suffer.

What about this “super committee” that was supposed to overcome partisan politics to agree on a way forward that was acceptable to both parties and thus the American populace?

They didn’t do a bloody thing! If this were a business, they’d all be fired for lack of performance.

I get the impression that it was another wasteful attempt by the current administration to side-step its responsibilities and help in finger-pointing in the 2012 election speeches.

You can hear it now; “We gave them the opportunity…..” It’s nothing but another waste of the public purse that we’re now taking as an accepted form of political practice.

Well “Bah Humbug” to that.

How can we invest in the country’s future if we’re frittering away the money on a smoke and mirrors mockery and funding other people’s ideas of money well spent?

Part of the problem is that no one (with a half a brain in their head) is willing to explain where the money is being spent and why. This government’s capacity for communication is paltry, at best.

Maybe putting ten thousand troops in Australia is a fabulous idea – I just wish someone would explain the move, tell us how much it’s costing and how long it’s going to last.

I can’t think of anyone in Washington who has the political “cojones” to tell us without the fear of being run out of town or put in the stocks and pounded with rotten eggs!

Maybe we should redirect

C R O S S WO R D

this money to educate our own pupils (strictly and properly - not pandered to) and help build a future where we can still hold our heads high on the international scene.

If you want to see the evidence of a give-themanything-they-want from public money society then take a look at the sorry state of Great Britain today – it ain’t so great any more.

The recent riots had as many as fifty percent of the participants under the age of fifteen!

Their parents (if they have both of them) have very likely never had a job since leaving school at fifteen themselves but have educated themselves very effectively on ways to winkle money out of the system.

The government continues to spew funds on benefits ranging from hotel suites for immigrant families to paying for the groceries of people who continue to produce kids when they can’t afford one.

Discipline in schools no longer exists for fear of offending the pupils or their

parents – those that care enough to take any notice, that is.

My twin brother, who still lives in jolly old ‘Blighty’, assures me that the new Tory administration is attending to these lapses in governmental judgment and consequently coming down hard on getting back to basic common sense and education.

These are warning signs to which we should pay real heed so that we don’t go there.

If we are to pay our own way out of debt then we have to have the productive wherewithal to do it.

Meanwhile, Black Friday and Cyber Monday produced spending records. Or did we just pull forward money that was going to be spent anyway? We know how that goes in the car business!

There’s pent-up demand but an unwillingness to incur debt and pay the expensive piper that is the credit card company.

Maybe cash is king again and good disciplines are setting in.

Note well Washington.

Sponsored by INSURANCE AUTO AUCTIONS

By Miles Mellor

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1. Mini model 6. BMW competitor 10. 2011 ____ S80 11. Buy alternative 12. Compact Saturn 13. Internet laughter letters 14. Sign before Virgo 15. Ford compact 16. Shade of green 17. Bolt’s partner 18. Small distance (abbr.)

20. Put back on the market 23. It’s got bass and treble 25. Hit against

27. Atlanta’s state 28. Ford crossover 30. Blue shade 31. Raise 32. Indicates the manufacturer 34. Sales performance award 35. Wheel center 36. Certain compartment 37. Sprite, etc 39. Shade of white 41. Gas provider 44. Upshot 46. Very popular 47. Royal card 48. City transport 49. Station _____

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Honda crossover Opens, car door eg Mechanic’s equipment Popular Lamborghini color 5. GMC crossover that seats eight 7. UAW, for one 8. System for starting 9. Choose 15. C-MAX makers 19. Large 21. ____ IS C 22. Copper symbol 23. Spanish, for short 24. Toyota crossover (2 words) 26. ____ 62 S 29. MKX or MKT 30. Criticize a lot 32. Well known beer 33. Checked out

Answers to this puzzle in the 12/19/11 issue. Call 1.800.794.0760 for a FREE subscription.

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Answers to the 11/21 /11 puzzle

34. LaCrosse makers 35. Crosstour manufacturer 38. Display 40. Shakespeare’s you 42. Airport abbreviation 43. Lease alternative 45. Raleigh’s state

O I L C H A N G E

P T I O T A O N I U I M

B F E R U A S O N D S Y E S

I M A L L I B N U M E E F R A S A T E R

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S P O R E O E E X U S P I I A U G A T T I S E I N D R V T F E E T O L D O J U F R A R I A C C D U K A X L E U T O P E P A Y C

T I M R I R T A E T H E D M E E T

E N T U N H E

E R E U S T K A R F T I S T T C H E B A A P

UCN_23

11/23/11

11:38 AM

Page 1

Thank You for 25 Years!

We will be giving away 2 tickets to the 2012 Big Football Game in Indianapolis, Indiana to one lucky AFC Dealer!

AFC Dealers in good standing will receive one entry for each unit they floorplan with AFC between October 17 and December 16, 2011. Prize includes 2 game tickets, airfare, lodging, meals for two and more â&#x20AC;&#x201C; a package valued at $25,000!

Winner will be announced on December 21st, 2011.

Visit: AFCDealer.com to register for the Big Game or apply for your line of credit.

1-888-335-6675 Our Service Will Floor You!ÂŽ

NO PURCHASE NECESSARY. A PURCHASE WILL NOT INCREASE YOUR CHANCES OF WINNING. Must be a current AFC Dealer in good standing that operates their business within the fifty (50) United States, the District of Columbia, or a province of Canada (excluding Quebec). This Sweepstakes is not open to the general public. Sweepstakes ends 12/16/11. For entry and official rules with complete eligibility, prize descriptions, odds disclosure and other details, visit www.AFCDealer.com. Sponsored by Automotive Finance Corporation. Void where prohibited.

UCN_24

11/23/11

11:38 AM

Page 1

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Part of the TD Bank Group, a Aaa-rated bank ranked as one of the safest banks in North America.

TD Auto Finance LLC, is a subsidiary of TD Bank, N.A. TD Bank Group is a trade name for The Toronto-Dominion Bank. Used with permission. For detailed credit ratings for The Toronto-Dominion Bank and TD Bank, N.A. visit http://www.td.com/investor/credit.jsp.

Credit Ratings are not recommendations to purchase, sell, or hold a financial obligation inasmuch as they do not comment on market price or suitability for a particular investor. Ratings are subject to revision or withdrawal at any time by the rating organization.