December 16, 2013
www.usedcarnews.com
ON THE WEB: Study Shows Incentives Hurt Residual Values
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Recon Company Rolls into New Year
A new vehicle cash incentive of $1,000 reduces the price of a one-year-old used vehicle by nearly $600, according to the NADA Used Car Guide in its latest report, NADA Used Vehicle Price Report: Incentive Analysis and Impact. Comparatively, $1,000 spent on finance and lease incentives reduces the price of a one-yearold used vehicle by $165 and $89, respectively.
Drivers Clueless About Dashboard Lights
Almost half of drivers would not know what to do if their car’s tire pressure or brake system warning light flashed, and almost 20 percent of people don’t even know what the lowfuel light means, according to an Insurance.com survey.
Used Car Sales Fell By Almost Half a Million
True Car estimates that usedcar sales were 3,000,508 in November. That is down from 3,457,244 in October.
Photo Courtesy of Capital Automotive Reconditioning Services FINE CONDITION: Workers for Capital Automotive Reconditioning Services spruce up vehicles at one of the auctions the firm services across the country. CARS celebrated its 10th anniversary earlier this year. By Jeffrey Bellant
Ron Hope started his reconditioning business a decade ago, servicing cars at the former Butler Auto Auction in Pittsburgh. “We started with 12 employees and a legal pad,” he said. “By the end of that first day
we only had six employees.” But more than a decade later, Capital Automotive Reconditioning Services (CARS) has hundreds of employees at wholesale auto auctions around the country, with bigger plans in 2014. Hope, president and CEO of the business, said
services include: detailing, mechanical inspection/repair, paint/ body repair, sale-day arbitration, condition reports and inspections, and lot operations. “We staff the areas we’re operating,” Hope said. “We supply labor, management and materials.”
Hope said the goal is to have his reconditioning services work seamlessly within the auction. “The advantage to the auction is that we take care of all the scheduling of employees, the hiring/ firing and disciplinary action,” he said. Continued on page 14
Rush - Dated Material
Auto Finance Delinquency Rates Start to Rise
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The auto loan delinquency rate (the ratio of borrowers 60 days or more delinquent on their auto loans) increased to 1.04 percent in the third quarter, up on both a quarterly and yearly basis (from 0.87 percent in the second quarter and 1 percent in the third quarter of 2012). The delinquency rate, though, is well below the third quarter average of 1.22 percent observed between 2007 and 2013. Auto loan debt per borrower increased for the 10th straight quarter, moving up 4.7 percent from $15,943 in the third quarter of 2012 to $16,685 in the third quarter. On a quarterly basis, auto loan debt also increased from $16,410
in the second quarter. The data provided are gathered from TransUnion’s proprietary Industry Insights Report, a quarterly overview summarizing data, trends and perspectives on the U.S. consumer lending industry. The report is based on anonymized credit data from virtually every credit-active consumer in the U.S. The subprime delinquency rate increased to 5.6 percent in the third quarter from 5.3 percent in the third quarter of 2012. Despite the increase, the delinquency rate remains near levels observed in recent third quarters.
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December 16, 2013ÛÛÝÛÛ
USED CAR NEWS
Collectible Car Dealer Seeks New Downtown Home By Jenny King
Veteran dealer Jerry Hunt is on his way to opening a one-of-a-kind store on Benton Harbor, Mich.’s Main Street. Hunt, who owns Jerry Hunt’s Auto Center about a mile and a half away in Benton Township, plans to mix collectible older cars, motorcycles and motorbikes with some late-model, lowermileage used cars at a site in downtown Benton Harbor. “Buildings in the immediate area are being re-habbed with retail on the first floor and condos above,” Hunt said. But the developer of the property on Main Street, which Hunt owns, said a used-car dealership “doesn’t fit in,” Hunt says. And new zoning laws that took effect earlier this year will require Hunt to obtain a special use permit. The dealer says he already has submitted a $1,200 check toward a permit. Hunt has met the city’s emergency manager, Tony Saunders, who will have the
final say on a permit. The local zoning board in November voted 3 to 2 in Hunt’s favor. “I started in the car business at a Toyota store over 40 years ago,” says Hunt, whose current dealership, Jerry Hunt’s Auto Center on M139, stocks about 40 late-model cars with an average price of $7,000. Hunt, who plans to buy special cars and motorcycles from trader magazines and on-line, says he displayed vehicles from his own collection at the Auto Center last summer. They proved a great draw. A huge supporter of Benton OLD CARS SEEK NEW DIGS: Dealer Jerry Hunt’s dealership in Benton Harbor, Mich., fits in with the current Harbor, Hunt owns the build- surroundings. But Hunt wants to become part of a downtown revitilazation project. ing and property on Main Street. In anticipation of an eventual “yes” from the city, the dealer has dressed up the plain facade of the pre-war building. “This was once a gas CarMax Inc. is hiring staff ny’s new store in Frederick, is and will be CarMax’s 7th station,” he said. “We have in preparation of opening Md., scheduled to open in store in Maryland. remodeled it to draw crowds, three new stores. February 2014 In addition, CarMax is also currently using things like neon roping The used-car superstore CarMax is offering a sign- hiring for the company’s across the front.” chain is currently hiring ap- on bonus up to $5,000 for new stores the Sacramento, Hunt plans to call the busi- proximately 140 positions, technicians who apply be- Calif., area and in Dothan, ness Classy Cars On Main including 30 automotive fore Dec. 20. Ala. These stores will open Street. technicians, for the compaThe new Frederick store in Feburary and March.
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 ÛÛ�ÛÛÛDecember 16, 2013
USED CAR NEWS
NEWS BRIEFS DealerRater Marks Growth
DealerRater has surpassed 1.2 million submitted reviews. Reaching that milestone, DealerRater now maintains more car dealership reviews than the next five consumer sites combined. Specifically, DealerRater offers 43 percent more reviews than Google+, Yelp, Edmunds, Cars.com and Yahoo! Local combined. The company also announced it has surpassed 4 million monthly exposures, defined as the number of users exposed to either a DealerRater review or their branding each month. DealerRater also announced its integration with Kelley Blue Book. Kelley Blue Book’s Price Advisor now enables dealers to display DealerRater reviews and ratings. Both DealerRater Certified Dealers and non-certified dealers have the ability to display their DealerRater reviews on KBB.com.
GETTING IT STRAIGHT A story in the Nov. 6 issue titled “Dealer Admits to Laundering Cash� stated that Eddie L. Bynum Sr.’s dealerships were in Vancouver, Ore. Bynum is an Oregon resident, but the dealerships are located in Vancouver, Wash.
Ally Lessens Government’s Stake
Ally Financial Inc. has completed a private placement of 216,667 shares of Ally common stock for an aggregate price of approximately $1.3 billion. In addition, Ally completed the repurchase of all outstanding shares of the mandatorily convertible preferred securities held by the U.S. Department of the Treasury and eliminated the share adjustment provision. As a result, Ally has repaid the U.S. Treasury $5.9 billion toward the investment that was made in the company. The U.S. Treasury currently holds approximately 64 percent of the common equity in Ally, down from 74 percent, and the remaining 36 percent of the common equity is held by a diverse mix of existing and new institutional investors.
Finance Company Completes Securitization
notes in a transaction that closed Oct. 24. The offered notes were assigned ratings by Standard & Poor’s Ratings Services, Moody’s Investor Services Inc. and Kroll Bond Rating Agency Inc. The senior class of offered notes were rated A by S&P, A3 by Moody’s and AA- by KBRA. Deutsche Bank Securities and Credit Suisse were joint book-runners for the transaction.
operating income and net income were $279.9 million, $65 million and $41.4 million, respectively. These represent an increase in revenue of $41 million, or 17.2 percent; and decreases in operating income of $9.4 million, or 12.6 percent; and in net income of $4.4 million, or 9.6 percent, respectively, from the same quarter last year. Included in the financial results for the most recent quarter are the results of Copart’s QCSA acquisition, which closed on May 30. These Copart Reports Higher Revenue results included revenues of $17.2 Copart Inc. reported financial re- million and expenses, excluding sevsults for the quarter ended Oct. 31. erance and lease termination costs, For the three months, revenue, of $17.9 million. Published By General Media LLC USED CAR NEWS (ISSN 1555-7413) is published at 24114 Harper, St. Clair Shores, MI 48080 Phone: 586-772-5200 or 800-794-0760 Fax: 586-772-9400 www.usedcarnews.com
CarFinance Capital LLC has completed its second rated asset-backed securitization of $304 million of C R O S S WO R D by Myles Mellor
PAGE 21
Charles M. Thomas Founder (1947-2002) Lynda R. Thomas, Publisher Colleen Fitzgerald, General Manager Editorial: Ted Craig, Managing Editor Jeffrey Bellant, Staff Writer Contributing Writers: Ed Fitzgerald, Jenny King, Sheila McGrath
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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. É&#x; É&#x; É&#x; Please submit clear, legible copy. Payments from first time advertisers must accompany the insertion order. Distribution is guaranteed by U.S. Postal Carriers. The advertising reservation deadline is 5:00 p.m. Friday, 10 days prior to the issue date. Camera ready ads must be received by noon on Monday prior to the issue date.
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December 16, 2013 ÝÛÛ
USED CAR NEWS
High End Auto Auction Sets New World Records It took only two hours for two top auction houses to sell from an inventory of 31 cars, two motorcycles and seven pieces of automotive art for a total of $63 million. Art of the Automobile, run by RM Auctions of Canada and Sotheby’s of New York, drew hundreds of wellheeled bidders in person and online, plus onlookers, to Sotheby’s Manhattan headquarters. The Nov. 21 sale, characterized by “furious bidding,” featured highly collectible cars including the 1964 Ferrari 250 LM by Carrozzeria Scaglietti, which sold for a record for the model auction: $14.3 million. This was the top sale of day. A curvaceous, low-slung 1938 Talbot-Lago T150-C SS Teardrop Cabriolet by Figoni et Falaschi brought a winning bid of $7.15 million. This also was a record for the model at auction, RM said. RM and Sotheby’s reported that 93 percent of all lots sold to an international audience of bidders representing 17 countries. The auction houses said
theirs was the first major collector car auction to take place in Manhattan in over a decade. RM said a significant number of bidders had never participated in an RM sale. Other lots also set world records. The third highest seller of the night was another Ferrari: a 1959 250 GT SWB “Competition” Berlinetta Speciale with Bertone coachwork. Described as “one of the greatest dualpurpose sports racing cars of all time,” it sold for a winning bid of $7.04 million. Sixteen of the 31 automobiles at auction sold for over $1 million, and 11 cars HIGH ROLLER: This 1938 Talbot-Lago T150-C SS Teardrop Cabriolet by Figoni et Falaschi cost set world price records, RM the winning bidder $7.15 million during a recent auction in Manhattan. said.
More New Car Shoppers Consider Certified Pre-Owned According to the AutoTrader.com 2013 Certified Pre-Owned Study, conducted by Morpace, CPO consideration for new car shoppers is approaching levels seen for used-car shoppers. However, overall familiarity with specific aspects of
CPO programs has dropped considerably. Additionally, the study showed that the percent of shoppers who are willing to pay a premium for certified vehicles decreased. However, the study showed that shoppers’ will-
ingness to consider CPO increased when exposed to more information about CPO vehicles, pointing to the fact that education is key. Between 2012 and 2013, the percent of new car shoppers who are likely to
consider a certified vehicle increased from 43 percent to 55 percent. Used-car shoppers considering certified vehicles remained relatively flat during that time, going from 61 percent in 2012 to 60 percent in 2013.
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USED CAR NEWS
Hyundai Ranks as Most Reliable
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CarMD.com Corp. released its 2013 CarMD Vehicle Health Index Manufacturer & Vehicle Reliability Rankings –an annual ranking of manufacturers and vehicles with the lowest combined “check engine� repair incidents and costs. The Index ranks the top 10 manufacturers, top 100 vehicles overall, top vehicles by category and the most common repairs by make. This year’s Index is based on more than 151,000 specific repairs performed on model year 2003 to 2013 vehicles from Oct. 1, 2012 to Sept. 30 of this year. After two consecutive years ranked as No. 2, Hyundai unseats Toyota as the No. 1-ranked manufacturer. Rounding out the top five vehicle manufacturers of 2013 are No. 2 Toyota, No. 3 GM, No. 4 Chrysler and No. 5 Honda. “Hyundai strives to provide our customers with a worry-free car ownership experience by offering a lineup of vehicles that deliver on both quality and reliability, backed by the most competitive protection program in the business,� said Erwin Raphael, director of engineering and quality for Hyundai Motor America. “Earning the first place title in CarMD’s Vehicle Health Index Report proves that our recipe for combining high value vehicles with long-term vehicle protection is a success.� For the third consecutive year, the top-ranked vehicle is a Toyota, with the 2012 Camry ranked as the most reliable vehicle for 2013. Previously, the Corolla ranked No. 1 with the 2009 Corolla and 2010 Corolla earning top spots in the past two CarMD rankings. Four sedans, four compacts and two SUVs make up 2013’s top 10 list, with Nissan leading the pack with five vehicles, including the 2012 Altima (ranked no. 2), 2011 Rogue (no. 5), 2012 Rogue (no. 6), 2012 Sentra (no. 7) and 2011 Sentra (no. 9). Toyota has three cars in the top 10, including the 2012 Toyota Camry (no. 1), 2011 Toyota Corolla
(no. 3) and 2011 Toyota Camry (no. 4). Hyundai has one vehicle on the list – the 2010 Elantra (no. 8). Rounding out the list is the 2012 Mazda 3 (no. 10), marking the first time Mazda has had a vehicle in the top 10. This top 100 list represents the top 10 percent of more than 1,000 different 2003 to 2013 model vehicles on the road. The Index also ranks the top three vehicles by category: compact, minivan, sedan, full-sized SUV, wagon/ crossover, truck and luxuy. The 2012 GMC Sierra, ranked No. 1 in the truck category, unseated Ford from its sweep of the category last year. In the luxury category, Buick and Lincoln unseat Lexus and Infiniti with the 2011 Buick Lacrosse, and 2010 and 2007 Lincoln MKZ vehicles. Different vehicle makes tend to have a unique set of problems and common failures. The CarMD Vehicle Health Index reveals common problems and repairs by brand, providing a resource for vehicle owners as they maintain and repair their vehicles. “Replace Oxygen Sensor� accounted for 21.6 percent of Suzuki repairs and 13.75 percent of Hyundai repairs over the past year. In April, CarMD revealed that the no. 1 most common repair is “replace O2 sensor,� accounting for 8.31 percent of all check enginerelated repairs last year. O2 sensors measure the amount of unburned oxygen in the exhaust and tell a car’s computer when there is either too much or not enough fuel mixed with oxygen for ideal operation. If a faulty O2 sensor is not repaired, the car’s gas mileage can drop by as much as 40 percent. “Replace Ignition Control Module� accounted for 29 percent of Saab repairs last year; “Inspect/ Replace Battery and Charging System� accounted for 17.2 percent of Acura repairs; and 17.8 percent of check engine-related trips to the shop for Volvo owners were due to loose or damaged gas caps.
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PAGE 8 - A YEAR IN REVIEW
Used Car Sales See Strength; Finance Draws Increased Scrutiny It was a strong year for the used-car industry, with new sales records set and new auctions opening across the country. New-car sales neared the 16 million mark, but franchise dealers showed no signs of abandoning the used-car operations they’ve invested in over the past four years. Certified pre-owned sales topped 200,000 for the first time in August and are on track to top 2 million for the year. Franchise dealers continued to expand their usedcar operations in all segments. For example, the Russ Darrow Group opened a used-car superstore in Green Bay, Wis., earlier this year that included a J.D. Byrider franchise. Franchise dealers have reached these high marks for both new and used cars in part because of an abundance of financing, including subprime financing. Experian Automotive reported that a record 84.5 percent of consumers who acquired a new vehicle in the second quarter financed their purchase. The looser financing has cut into the buy-here, payhere business. Dealers of
all sizes, from standalone independents to chains like America’s Car-Mart, reported losing sales to subprime financing. “I’m seeing customers that three years ago couldn’t finance a bicycle buy brand new cars,” said Greg Goebel, CEO of Used Car University, in September. Goebel expects the subprime market will remain strong until the fourth quarter of next year. The downside of increased finance activity is increased regulatory scrutiny. The Consumer Finance Protection Bureau announced earlier this year it would take up the topic most dealers dreaded – dealer participation in finance. The CFPB’s main concern is dealers charge more to minority buyers as a result of participation. Dave Westcott, chairman of the National Automobile Dealers Association, said consumers actually get the best price because they go through dealers. “When it comes to indirect lending, dealers are price discounters,” Westcott said.
2013 MOVERS AND SHAKERS
Steve Jordan
Brian Geitner
Bruton Smith
Jordan took the reins of the National Independent Automobile Dealers Association in July, following the retirement of longtime executive Mike Linn. The NIADA’s new executive vice president had served as the association’s chief operating officer since 2011. Prior to that, he was executive director of the Florida IADA. The International Automotive Remarketers Alliance also named a new executive director this year. Former auction executive Tony Long filled that vacancy.
When Manheim merged its two floor plan components – Manheim Automotive Financial Services and Dealer Services Corp. – into one entity called NextGear Capital, Geitner became the finance arm’s president. Since that move in January, Geitner has overseen expansion in a number of ways. NextGear Capital added a second building to its operations in Carmel, Ind., to accommodate growth. The floor planner also moved into new markets, including RVs.
Sonic Automotive became the latest franchise dealer group to make a run at CarMax Inc. when the chain announced it would open a used-car superstore in Denver in late 2014. Smith, Sonic’s CEO and co-founder, has a reputation as a risk taker based on his experiences in the world of motorsports. It remains to be seen how this will all play out. Denver was the site of Lithia Motors Inc.’s failed attempt to start a chain of used-car stores aimed at unseating CarMax.
that city in 1954. All of McConkey’s sales belong to ServNet. The independent auction alliance celebrated its 25th anniversary this year. Not everybody is thrilled by the recovery of the usedcar industry.
A number of cities passed or considered freezes on issuing permits for used-car dealerships. These cities included Arlington, Texas, home of the National Independent Automobile Dealers Association.
On the wholesale side, auctions continued their recovery, with several new sales opening up. One of those was DAA Seattle, which was a homecoming for co-owner Bob McConkey Jr. His father had opened an auction in
COUP OF THE YEAR Tesla’s Model S drew rave reviews this year, so much so the electric car manufacturer made a bold guarantee about its resale value. The luxury sedan was named the car of the year by several critics, including Motor Trend, and earned a score of 99 out of 100 from Consumer Reports, becoming the magazine’s best car ever tested. Last spring, Tesla made a resale guarantee that the Model S would have the highest resale value of any premium sedan brand made in volume, including BMW, Audi, Mercedes, Lexus and Jaguar. Tesla also created plenty of controversy this past year by pushing for factory-
ÛÛÝ December 16, 2013
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owned stores and seeking changes to state franchise laws to make that happen. Dealers have fought these changes with mixed success. NADA chairman Dave Westcott told reporters last fall that dealers’ concerns were not about Tesla, but the precedent if a largescale manufacturer enters the U.S. market.
FLOP OF THE YEAR
Tesla also found itself dealing with recalls and questions about vehicle safety following several reports of fires caused by the cars’ batteries. The overall future of electric cars remains uncertain despite Tesla’s success. Fisker Automotive, anothelectric car maker, went bankrupt last spring.
This was not a banner year for big deals in the used-car industry. Cox Enterprises Inc. withdrew AutoTrader.com’s scheduled IPO, citing market conditions. The company replaced AutoTrader.com CEO Chip Perry with Manheim CEO Sandy Schwartz. Schwartz retained his role at the auction chain. DriveTime also called off a major deal that would have seen the buy-here, pay-here chain selling its portfolio to Santander. Company executives said the deal fell through be-
cause of “unsatisfied conditions on the closings of the transactions.” DriveTime also called off plans to sell its dealerships to a group of investors. This is the second time in the past few years DriveTime nixed a major ownership change. The company was preparing for its own IPO in 2010, but never went to market due to weak economic conditions. Wall Street really likes the used-car companies that are already public. Both CarMax Inc. and America’s CarMart Inc. saw their stock prices reach all-time highs.
NEXT ISSUE: FORECAST www.usedcarnews.com
12/9/13 5:18 PM
Marc Ray General Sales Manager/Partner, Grogan’s Towne Chrysler Jeep Dodge Ram
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USED CAR NEWS
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University Helps Launch Auction A university program designed to aid small businesses helped one man achieve his goal of opening an auto auction. With 10-plus years of experience working in the auto auction industry, Brock Elliott had always hoped to one day operate his own auto auction company. In 2012, Elliott began pursuing possible locations and available space in Kentucky. He met with a local lender who referred him to Kim Jenkins, management consultant at Morehead State University’s Ashland Small Business Development Center (SBDC). Ashland’s SBDC has been providing small business consulting services free-of-charge for nearly 30 years.
The two met about securing a loan to open an auto auction in the area. Elliott had located some commercial property for lease in Cannonsburg. Jenkins assisted him with business planning, financial forecasting, and loan packaging. As the plans were discussed, it became necessary to calculate his anticipated start-up costs. Jenkins also helped him project estimated sales/income potential and overhead expenses, as well as prepare a Small Business Administration loan application. In March 2013, Elliott was approved for SBA financing, and the grand opening of Bigg Deals Auto Auction was conducted in June.
Dealers Fight Proposed Fee Hike DES MOINES, Iowa (AP) – Car and truck dealers are planning to fight a possible fee increase suggested by the Iowa Department of Transportation. The Des Moines Register reports that the department has suggested increasing the fee to 6 percent for vehicle registrations. The current 5 percent fee is applied every time a customer buys a new or used car or truck. The DOT says the higher fee
would keep pace with the state’s current 6 percent sales tax. It would generate an estimated $60 million more each year for road construction projects. Iowa does not impose a sales tax on car and truck purchases. The Iowa Automobile Dealer Association’s 13-member board has voted unanimously to lobby lawmakers against the increase. The association represents about 400 Iowa dealers.
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ADESA Cincinnati/Dayton January 21 937-746-4000
Manheim Atlanta January 8, 9, 23 404-762-9211
ADESA Golden Gate January 7, 14 209-839-8000
Manheim Baltimore Washington January 14 410-796-8899
ADESA Houston January 8, 22 281-580-1800 ADESA Indianapolis January 7, 21 800-925-1210 ADESA Kansas City January 7, 21 816-525-1100 ADESA Lexington January 9 859-263-5163 ADESA New Jersey January 2, 16, 30 908-725-2200 ADESA San Diego January 9 619-661-5565 ADESA Tulsa January 10 918-437-9044 America’s AA-Chicago January 22 708-389-4488
Manheim Dallas January 15, 29 877-860-1651 Manheim Denver January 15 800-822-1177 Manheim Detroit January 9, 16, 23 734-654-7100 Manheim Fredericksburg January 16, 30 540-368-3400 Manheim Milwaukee January 15, 29 262-835-4436 Manheim Minneapolis January 8 763-425-7653 Manheim Nashville January 22, 29 877-386-5004
Manheim Pennsylvania January 9, 10, 23, 24 800-777-2053 Manheim Phoenix January 3, 9, 16, 23, 30 623-907-7000 Manheim Pittsburgh January 15 724-452-5555 Manheim Riverside January 2, 7, 14, 16, 21, 30 909-689-6000 Manheim Seattle January 8 206-762-1600 Manheim Southern California January 23 909-822-2261
* Only Jaguar and Land Rover vehicles will be sold on this date.
Mazda Capital Services ADESA Boston January 10, 24 508-626-7000
Manheim Detroit January 9, 23 734-654-7100
ADESA Golden Gate January 14 209-839-8000
Manheim Fredericksburg Manheim Pennsylvania January 16, 30 January 10, 24 540-368-3400 800-777-2053
ADESA Kansas City January 7 816-525-1100
Manheim Milwaukee January 15, 29 262-835-4436
Manheim Pittsburgh January 15 724-452-5555
Columbus Fair AA January 29 614-497-2000
Manheim Nashville January 22 877-386-5004
Manheim Riverside January 14 909-689-6000
Manheim Atlanta January 9 404-762-9211
Manheim New Jersey January 15, 29 609-298-3400
Manheim Seattle January 8 206-762-1600
Manheim Orlando January 7 800-337-8491
Southern AA January 15 860-292-7500
Manheim Nevada January 24 702-361-1000
Choose Chase on ADESA.com and OVE.com for quality bank-sourced vehicles. Contact auctions directly for current sale information.
Subaru Motors Finance Manheim Pennsylvania January 24 800-777-2053
ADESA Boston January 10 508-626-7000
Manheim Detroit January 9, 23 734-654-7100
Brasher’s Salt Lake January 7 801-322-1234
Manheim Fredericksburg Manheim Pittsburgh January 15 January 16 724-452-5555 540-368-3400
Columbus Fair AA January 22 614-497-2000
Manheim Milwaukee January 15 262-835-4436
Manheim Dallas January 15, 29 877-860-1651 Manheim Denver January 15 800-822-1177
Manheim New Jersey January 29 609-298-3400 Manheim Orlando January 14 800-337-8491
Manheim Riverside January 21 909-689-6000 Manheim Seattle January 8 206-762-1600 Southern AA January 15 860-292-7500
*The tradename “Subaru Motors Finance” and the Subaru logo are owned / licensed by Subaru of America, Inc. and are licensed to Chase Bank USA, N.A. (“Chase USA”) and JPMorgan Chase Bank, N.A. (“Chase”). Retail / Loan accounts are owned by either Chase or Chase USA and lease accounts are owned by Chase. *Jaguar, the Jaguar logo, and Jaguar Financial Group are trademarks of Jaguar and any use by JPMorgan Chase Bank, N.A. (“Chase”) is under license. Land Rover, the Land Rover logo, and Land Rover Financial Group are trademarks of Land Rover and any use by Chase is under license. Retail / Loan and lease accounts are owned by Chase. *The tradename “Mazda Capital Services” as well as the Mazda and Mazda Capital Services logos are owned by Mazda Motor Corporation or its affiliates and are licensed to JPMorgan Chase Bank, N.A. (“Chase”). Retail / Loan and lease accounts are owned by Chase. © 2013 JPMorgan Chase Bank, N.A. Member FDIC. All rights reserved. (12-381) 06/12
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12/6/13 4:04 PM
~ÛÝÛDecember 16, 2013
USED CAR NEWS
Ford Recalls SUVs, Sedans
We Sell Fleets of Vehicles With more than 30 years of experience, IAA’s targeted marketing attracts buyers in more than 110 countries and promotes healthy competition through our live and live-online auction. Sell more vehicles, including those that have clear titles, are repossessed, have high mileage or are damaged. At IAA, we showcase every vehicle.
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DETROIT (AP) – Ford is recalling the Escape small SUV again, this time to fix oil and fuel leaks that could cause engine fires. The hot-selling SUV has been recalled seven times since it was redesigned and went on sale in the spring of 2012. The first of two recalls announced affects more than 161,000 Escapes worldwide from the 2013 model year with 1.6-liter four-cylinder engines. Of those SUVs, fuel lines on about 12,000 may have been installed incorrectly. They could become chafed and leak gas. Many were repaired under a previous recall. Ford says the oil leaks caused 13 fires but no injuries. There haven’t been any fires from the fuel line problems. In documents filed with the National Highway Traffic Safety Administration, Ford said it began to get engine fire reports on Escapes in late August, and began investigating. Eventually it was able to duplicate the cylinder head cracking and decided to do a recall. During the investigation, Ford also found warranty claims of fuel line leaks and decided to repair them as well. In some cases, the fuel lines may have been installed incorrectly by technicians in a previous fuel line recall, the documents said. Auto safety advocates say the high number of recalls is out of the ordinary for a new model and a sign of quality problems. But Ford spokeswoman Kelli Felker disagreed. “We’re committed to providing our customers with top-quality vehicles and are equally committed to addressing potential issues and responding quickly for our customers,” she said.
The redesigned Escape has been recalled seven times since July of 2012 to fix carpet padding that can interfere with the brake pedals, fuel lines that can crack, coolant leaks, and child safety locks. Dealers will fix cooling and control systems or inspect and replace fuel lines for free. The recalls start in January. Ford is also recalling Ford Crown Victoria and Mercury Grand Marquis vehicles for steering issues. A recall notice, dated Aug. 26, notified NHTSA of a safety defect condition that may result in loss of steering in approximately 355,000 model year 2005 through 2011 Ford Crown Victoria and Mercury Grand Marquis vehicles built at the St. Thomas Assembly Plant; model year 2005 through 2007 Lincoln Town Car vehicles built at the Wixom Assembly Plant; and certain model year 2008 through 2011 Lincoln Town Car vehicles built at the St. Thomas Assembly Plant and that are currently registered or were originally sold in Connecticut, Delaware, the District of Columbia, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia, or Wisconsin (NHTSA Recall 13V-385, Ford Recall 13S08). Ford’s recall addresses a corrosion related defect in the lower intermediate shaft that may result in separation of the steering column lower bearing and loss of steering control. Ford’s recall will remedy the defect condition by instructing dealers to replace the lower intermediate shaft and to inspect and repair the upper intermediate shaft and steering column lower bearing as necessary. A retaining clip will be installed if the lower bearing has separated.
4/10/13 12:59 PM
12/9/13 3:03 PM
December 16, 2013 ÝÛÛ~
USED CAR NEWS
Credit Acceptance Earns Best Workplace Honors By Jeffrey Bellant
Subprime lender Credit Acceptance Corp., of Southfield, Mich., was named one of the best places to work in Michigan by the Detroit Free Press. The state’s largest newspaper ranked Credit Acceptance Corp. second among its top five winners in the large-company category just behind home mortgage firm Quicken Loans. The Free Press named five top companies in three categories: large, midsize and small. The winners, according to the paper, were ranked based on attributes such as innovation, flexibility, leadership and employee perks. John Neary, Credit Acceptance Corp.’s chief administrative officer, said the award is just the most recent honor and represents a team effort. “Our team members are understandably very proud of this accomplishment,” he said. “Creating a great workplace is a shared responsibility, one that we have all worked extraordinarily hard to accomplish together. “While it is gratifying for our team
members to see us achieve this workplace recognition, the actual quality of their daily experiences at Credit Acceptance counts for more than the awards themselves.” Neary credits the firm’s reputation in this area to a genuine commitment in creating a great workplace from the top down. “We survey our team members frequently to understand what they would like to see in their work environment,” he said. “We take action where it makes sense to do so.” In recent years, the company has implemented new core values, based on team member input, established a dedicated community service committee and launched a new intranet site to improve communications. It also improved the steps to welcome and train new employees. “It’s the ‘listening culture’ that led to the award that makes us a better company,” Neary said. “We encourage innovation and ongoing feedback from all team members. This culture leads to new ideas that ultimately improve how we support and otherwise deliver our financing packages to dealers who do business with Credit Acceptance.”
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UCN_13.indd 1
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12/9/13 4:48 PM
~ Û�ÛDecember 16, 2013
USED CAR NEWS
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Carolinatax-UCN_Jan6.pdf
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12/3/13
4:00 PM
Auction Recon
“The auction has no overtime exposure and they don’t own the detail supplies or paint supplies,� Hope said. “There is a firewall for the auction, as well,� Hope said. “The employees are ours, so if there is an issue, it is ours to deal with.� Typically, CARS receives payment based on a percentage of the revenue an auction collects from a consignor for recon services, Hope said. CARS, based in Franklin, Tenn., operates 35 shops, including 28 auction locations. “Our auctions range from as far as ADESA Boston in the northeast and as far west as Manheim San Francisco and lots of places in between,� Hope said. In some locations, CARS may just operate a detail shop, where other places may offer a full slate of services. Hope started out in the business working for a domestic manufacturer, but it became a training ground for his future recon company. Before opening CARS, Hope worked at Chrysler in Southern California in the 1960s. He worked in the Nu Car Prep Center and worked his way up to various senior management positions. He left Chrysler in the 1970s and joined Anglo-American Auto Auc-
– from page 1 tions (which later became ADT) where he oversaw the reconditioning facilities run and staffed by ADT. In 1995, Hope moved to ADESA as vice president of auction operations and later served as a consultant and director of client services for British Car Auctions. But with his family in the U.S. and Hope in England, the family decided they wanted to make their home in the U.S. Soon after returning to the U.S., Hope learned that Butler Auto Auction was looking to outsource its reconditioning services, which was not common. On that first day, as some staffers bolted, the firm had 300 Fords that needed recon, reflecting the challenge of that first year. “There were some long days,� Hope said. “I’m thankful for the patience people have shown us as we stubbed our toe and endeavored to do our best.� The challenge of working in multiple locations has meant also meeting the regulations and requirements of various state and municipal laws. “We have to make sure that we’re compliant from coast to coast,� he said.
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12/9/13 5:23 PM
December 16, 2013ÛÛ�ÛÛ~‚
USED CAR NEWS
PEOPLE IN THE NEWS KAR Names New ADESA CEO
KAR Auction Services Inc. announced that on Jan. 6, 2014, StĂŠphane St-Hilaire will be appointed the president and chief executive officer of ADESA Inc. Current CEO Tom Caruso will be appointed the chief client officer of KAR. St-Hilaire currently serves as StĂŠphane the president St-Hilaire and chief operating officer of ADESA Canada. He has worked for ADESA Canada for 15 years in positions of increasing responsibility, including the general manager of ADESA Montreal, one of ADESA’s largest auctions. In his new role, St-Hilaire will oversee the entire operation of ADESA and will report directly to Jim Hallett, chief executive officer of KAR. “StĂŠphane has been an exceptional leader and a driving force in building ADESA Canada,â€? Hallett said. “He has a vision for the increasing use of technology in the wholecar business and has been integral in the implementation of state-of-the-art information technology solutions which were incubated and piloted
by ADESA Canada. “StĂŠphane is extremely knowledgeable about ADESA’s operations, customers, products and employees, and is ready to assume the role as chief executive officer and president of ADESA.â€? In Caruso’s new role as chief client officer, he will continue to strengthen ADESA’s relationships with its customers, but also will further integrate service offerings to customers across all of their business units. Caruso will continue to report directly to Hallett in his new role.
CarMax Recognizes Employees
CarMax Inc. announced the 10 winners of the The CarMax Foundation’s fourth annual CarMax Cares Community Service Award. Associates across the country were nominated for the CarMax Cares Community Service Award for their personal volunteer efforts and leadership in community giving. Winners of the award were honored at the company’s largest associate recognition event of the year. Each winner selected a nonprofit organization to receive a $5,000 grant on their behalf from The CarMax Foundation. The CarMax Cares Community Service Award winners and the non-
profits selected are as follows: Mark Bowser, sales managerin-training, Laurel, Md. – Bowser chose Capital Parners for Education, which works with low-income youth in the Washington, DC area to get to and through college, to receive the $5,000 grant. Sarah Brown, buyer, Cincinnati, Ohio – Brown is a passionate supporter of The Dragonfly Foundation, an organization that brings comfort and joy to kids and young adults with cancer and blood diseases, and has selected this charity to receive the $5,000 grant. Richard Caudell, systems technology programmer/analyst, Richmond, Va. – Caudell has served as a volunteer emergency medical technician with the Ashland Volunteer Rescue Squad since 2011 and has selected this organization to receive a $5,000 grant. He has logged more than 1,000 hours each year in volunteer service to the County and was named Hanover County’s EMT of the Year in 2012. Nancy Eckert, management assistant, Baton Rouge, La. – Eckert has organized a number of events benefiting St. Vincent de Paul Society, which strives to understand and fulfill the needs of the poor in Baton Rouge and will receive a grant of $5,000.
Eileen Ingle, management assistant, Tucson, Ariz. – Ingle has selected Our Family Services, which provides shelter and support to homeless children and families, to receive the $5,000 grant. Jen Lignelli, management assistant, Sanford, Fla. – Lignelli has dedicated her time to programs hosted by Make-A-Wish Central and Northern Florida, which she chose to receive the $5,000 grant. Travis Lipsman, senior buyer, Des Moines, Iowa – Lipsman is passionate about animal welfare and has selected AHeinz57 Pet Rescue & Transport to receive the grant of $5,000. Nestor Lopez, senior buyer, Ontario, Calif. – Lopez selected Club 21 Learning and Resource Center to receive the $5,000 grant to support individuals with Down syndrome in reaching their true potential. Kim Ridings, management assistant, Fredericksburg, Va. – Ridings is a passionate supporter of the Greater Fredericksburg Habitat for Humanity, which she selected to receive the grant of $5,000. Kristin Roberts, buyer’s assistant, Stockbridge, Ga. – Roberts has helped renovate a home for a deserving family through Southern Crescent Habitat for Humanity, which she chose to receive the $5,000 grant.
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12/9/13 3:59 PM
~ÛÝÛDecember 16, 2013
USED CAR NEWS
RETAIL MARKETS ALABAMA
Corey Braxton, owner, Auto Professional 2 Car Sales, Midfield, Ala.: “I’ve been in business seven years. I used to be a sales manager at Anthony Underwood Automotive (in Bessemer, Ala.). I’m also a member of the Alabama Independent Automobile Dealers Association. “I have two stores, one in Midfield, Ala., and one in the East Birmingham area. “A majority of our business is subprime, but we do sell some prime (customers) as well. That’s always been the case. It’s about 80 percent subprime and 20 percent prime. “Between both locations, we carry about 150 (units). “We sell about 75 to 80 units at each location – so about 150 combined (each month). “That’s similar to what we were selling last year. “We get the majority of our inventory from different auctions in the southeast area – Tennessee, Mississippi, Georgia and Florida. “The average model year I carry is 2007. The average
Compiled by Jeffrey Bellant
mileage is about 124,000. “The (ratio) of cars and trucks/SUVs that I carry is 50/50. “We sell a majority of domestic vehicles. We don’t sell many foreign vehicles. “Our average reconditioning costs are about $400 a car. Last year it was a little bit more. But we were getting an edgier car. We’re going to a lot more auctions than we used to. “We have our own service shop. We have six bays. We use two of them for service work, two for cleanups and the two others for GPS and other work. “We only service our own vehicles. “(For marketing and advertising), we just do print and radio. Every now and then, we might do some television commercials, but the majority is going to be radio and print. The print will be (local) newspaper and American Classifieds. Sometimes we’ll also do ads in the Birmingham newspapers. “I just got finished structuring a deal on a 2012 Chevy Malibu. It had
52,000 miles. We sold that for $13,000. “Our average retail price is around $13,000. “Next year is looking good, but I am nervous about how this tax season is going to turn out. This past year it was drawn out and they’re saying it’s going to be somewhat similar because of the economy. “But I’m still excited about 2014. It seems like the finance companies are releasing a little bit more funds. Over the past four months, they seem a little bit more aggressive in buying deals.”
MISSISSIPPI
Breck Daniell, sales and finance manager, Daniell Motors, Hattiesburg, Miss.: “We’ve been in business since 1978. We have one location. “Our inventory varies, but typically we carry in the 50to 60-unit range. “On the year, we’re averaging about 20 per month. It’s always a little slower this time of the year. “We buy our vehicles from
traditional outlets. “We use Manheim sales and I have some wholesale dealers that we shop from out west. “Occasionally, I’ll buy one from the public, but not often. “Our average retail price has gone up. It’s probably in the $20,000 to $23,000 range. I’m selling a lot of vehicles in the $27,000 to $35,000 range. “But I’m also keeping some of our cheaper tradeins and selling them for $7,000, $8,000 or $10,000. I didn’t use to do that. “I carry probably 15 percent cars, 25 percent SUVs and 60 percent trucks. “(Most) of my inventory seems to be current year model, with 15,000 miles, or three-year-olds with 90,000 miles. “What I’d love to buy is a 2011 truck with 60,000 to 70,000 miles, but that’s just not available. “The gap (in price) between a 2012 truck with 50,000 miles and a 15,000mile 2013 truck is such that I’ll just buy the 2013 truck. “The trucks I carry are
almost exclusively domestic. The only imports I’ll carry are cars from Nissan, Toyota and Infiniti, which is a Nissan. “We believe our cars are nicer than those at new-car stores because of the time we put into them. My average reconditioning costs are about $600. “For example, if we get a car that doesn’t have factory floor mats, we’ll get factory floor mats. “We don’t do outside service. But we do have two bays and do light work here. We do our own prep here. “For advertising, because of the nature of our inventory, we focus hard on AutoTrader.com and Cars.com. “We have two talk radio stations that cater to the clientele we sell to so we advertise heavy on those stations. “We also advertise on a local TV station. The only print we do is a little magazine on the Gulf Coast. “We’re working on a deal (at press time) for a 2010 Chevy Silverado Z71 with 63,000 miles. That’s $21,900.”
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End of Year 1 End of Contract Cost of Cars NET PROFIT
Northland’s Lease’T’Own®
$55,920 End of Year 1
$224,090
$846,370 End of Contract
$950,930
- $570,360 Cost of Cars $276,010 NET PROFIT
- $570,360
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Analysis Assumptions: 10 cars per month for 12 months (Jan—Dec). The average cost per vehicle is $4,753.00. The average weekly payment is $86.00 per week . The average length of contract is 31 months Taken from the National averages for 2011. SOURCE: NADB-NCM
UCN_16.indd 1
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12/9/13 3:57 PM
December 16, 2013 ÝÛÛ~
USED CAR NEWS
WHOLESALE MARKETS LOUISIANA
Steve Chiasson, managing partner, Greater Shreveport-Bossier Auto Auction, Shreveport, La.: “We’ve been in business for seven years. We have two lanes and we’re running two lanes. “We’ve got a contract to add a third lane to the auction. “We’re hoping to get that done by Jan. 15. The logistics are tight with reference to the parking. I don’t want to lose any parking. “We’re at a time right now where we’re growing. “We passed last year’s (numbers) in October. “Business has increased. I hired two guys who are old pros in the game, guys that I trusted. “They know the game inside and out. I was fortunate enough to put them on staff when they became available. “Although they’re working primarily in the sales area, I would trust either one of these guys to run this auction. They’re that knowledgeable. “We’re looking to start av-
UCN_17.indd 1
eraging about 300 a week, as opposed to 220 to 240. (Our new people) have had that much of an impact. “Right now, we’re averaging 57 percent (conversion rates) and that’s basically straight dealer consignment, about 90 percent. “We don’t have the captive finance companies or the manufacturers. This is doing it the hard way. On the fleet-lease side, they are mostly rental units, coming in with 30,000 or 40,000 miles, from Avis and Enterprise. “They’re just coming off a little later than they used to. “On average, we’ll draw 150 dealers, but recently we drew 180. “That’s becoming more and more the norm. The numbers of dealers are increasing. “We draw dealers from a 200-mile radius, from Houston and Dallas, Little Rock, Ark., and a big group from Monroe, La., and across eastern and central Louisiana. “(On the salvage side) we’ll sell non-drivables. We do that as a convenience for
Compiled by Jeffrey Bellant the dealers. “We’re in the service business. We just park (the non-drivables) by the fence, the same place every week. We sell them live, not on video. “They do surprisingly well here. We get a core group that comes every week and the first thing they do is check those out. “A normal day for us would be less than 10 units (for non-drivables). “For our regular (non-salvage) sale, our average price is $4,900 and change. “That’s about the same as this time last year, maybe a little bit higher. “Any four- to five year-old unit with decent miles – under 100,000 – will bring all the money. It almost doesn’t matter what kind of car. “Recreational vehicles like jacked-up Jeeps and trucks – anything that would fit in a toy store – those things are insane around here. “They’ve been talking that the tax checks will be late, but we’ll adjust. “It’s just impossible to predict with the state of government today.”
OHIO
Chad Bailey, president, Akron Auto Auction, Akron, Ohio: “We had our 40th anniversary in July. “We have six lanes and we’re running six. “(Our volumes) are anywhere between 1,000 and 1,200 (vehicles). I would say we’re pretty much on the same pace as last year. “(Conversion rates) are in the low 60s to 65 percent. “Over 90 percent of our vehicles are dealer consignment. We’ve always been strong on the dealer consignment side. We’d always like to get more fleet/lease, and it would be a success here. We just haven’t had a lot of penetration in that area. “There are about 600 to 800 dealers that are actively doing business here. All things considered, it’s pretty consistent with last year. I don’t see tax season being like it used to be. But it’s probably due to technology, allowing people to get returns faster. “We’re pretty strong in drawing dealers from
northeast Ohio – like the Cleveland, Youngstown, Akron and Canton markets. “Our fleet-lease are bank and credit union repossessions. Those (vehicles) are a little bit of everything. “The average price coming through the lanes is between $5,500 and $7,500, but closer to $5,500. “We’re different compared to other independents in that we have our own in-house floor plan. But the deal is they have to buy through us. “We have a GSA sale. Our market for GSA is from April through September, which are (normally) monthly sales. We ran from 300 to 400 GSA units this year. I expect the same next year. I’d like to get more, but with our government, who knows? “We have simulcast in all six lanes and we have cars run through Online Ringman. “We were OVE’s top lister and seller in the independent market (for 2011 and 2012). Knocking on wood, this (could be) our third year in a row.”
12/9/13 3:24 PM
~ ÛÝÛÛDecember 16, 2013
USED CAR NEWS
Certified Pre-Owned Retail Sales DOMESTIC Ford/Lincoln/Mercury Ford / Mercury Lincoln GM Buick Chevrolet GMC Oldsmobile Pontiac Saturn Hummer Cadillac Saturn through 2009 Chrysler/Dodge/Jeep Chrysler Dodge Jeep Memo: Fiat Memo: Chrysler w. Fiat Total Domestics
Nov ‘13 19,424 17,689 1,735 27,985 2,305 20,837 4,511 209 123 1 1,558 10,835 2,185 4,964 3,686 40 10,875 59,803
‘13 YTD 209,436 189,505 19,931 316,754 25,221 236,720 48,374 4,255 2,184 12 16,833 112,737 23,220 51,991 37,526 291 113,028 655,772
‘12 YTD 156,701 138,866 17,835 253,373 19,724 181,892 37,274 9,322 5,161 86 15,012 103,618 20,525 49,424 33,669 119 103,737 528,790
ASIAN Honda Acura Nissan Infiniti Toyota Lexus Hyundai Kia Mazda Mitsubishi Suzuki Subaru Total Asian
Nov ‘13 19,229 3,493 9,930 1,103 30,855 5,780 6,118 3,094 3,529 64 3,413 86,608
‘13 YTD 228,405 38,374 105,786 10,613 342,209 66,502 69,912 31,479 34,719 712 33,565 962,276
‘12 YTD 220,564 40,212 97,335 10,836 302,480 61,966 63,810 18,047 24,460 595 23,046 863,351
EUROPEAN Audi Bentley - EST. BMW Fiat Jaguar Land Rover Mercedes-Benz Smart MINI Porsche Saab Volkswagen Maserati Volvo Car Total European
Nov ‘13 3,612 30 7,008 40 262 605 8,835 12 763 933 7,139 38 805 30,082
‘13 YTD 36,168 330 75,869 291 3,146 5,827 89,260 89 6,357 9,165 86,824 382 9,382 323,090
‘12 YTD 33,148 330 68,274 119 3,028 6,015 73,352 79 3,039 8,797 78,744 362 10,872 286,159
Total - EST.
176,493
1,941,138
1,678,300
Source: Autodata Corp.
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12/9/13 1:49 PM
ACTUAL WHOLESALE AND PROJECTED RESIDUAL VALUES DECEMBER 2013
SOURCE: BLACK BOOK
2011 MODELS
2012 MODELS Domestic Cars Buick LaCrosse 4D Sedan Cadillac CTS 3.6 4D Sedan Chevrolet Cruze LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 Base 4D Sedan Chrysler 200 Touring 4D Sedan Ford Focus SE 4D Sedan Ford Mustang Base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln MKS 4D Sedan Import Cars Acura TL base 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan 2.4 Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Galant ES 4D Sedan Nissan Altima Base 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra Base 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Trucks BMW X3 XDrive28i 4D SAC Cadillac Escalade Base 4D Utility AWD Cadillac SRX Luxury 4D Utility AWD Chevrolet Colorado LT Crew Cab 4WD Z85 Chevrolet Equinox LS 4D Utility FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D Utility 4WD Dodge Grand Caravan SE Wagon Ford Edge SEL 4D Utility Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Flex SEL 4D Utility Honda CR-V LX 4D Utility AWD Honda Odyssey LX Wagon
Dec-12 22800 29800 12900 13000 19000 14600 12300 16750 19800 25000 Dec-12 26400 32100 68300 15500 15200 31400 41500 12000 13700 14900 11950 16800 12900 16550 Dec-12 36450 50900 32400 20650 18250 21025 29375 15175 21750 19075 28125 22250 22750 19400 20950
Jun-13 21500 26700 12600 12600 18350 12950 12700 16600 17600 24300 Jun-13 25600 29800 59100 15750 14650 29500 36000 12000 12900 14200 11600 15550 13000 15700 Jun-13 33950 48150 30850 21075 17650 20325 29550 15875 22000 17900 27625 21100 20950 18600 20000
Dec-13 20250 22900 11150 11250 17250 11450 11300 14800 15800 21500 Dec-13 23300 26100 57600 14700 12500 28200 33800 11700 11150 12450 10650 14450 11700 14200 Dec-13 32300 45050 26200 20150 14400 19725 29300 14450 20100 15450 26575 20575 18600 17400 19000
Projected Figures Dec-14 Dec-15 18150 15525 20375 16775 9725 8450 9800 8700 13700 11775 10100 8650 10025 8475 13575 12150 14100 12225 19600 17100 Dec-14 Dec-15 20025 17200 21175 17675 45525 38625 12550 11125 11275 9575 24175 21250 29275 24400 9750 8325 10475 9100 11550 10050 9450 8250 12325 10925 10075 8850 13075 11225 Dec-14 Dec-15 26500 22225 38650 32875 23825 20900 17600 15475 13125 11125 16825 15000 25450 22200 11550 9475 17225 14825 13925 11850 21750 18425 16700 14575 15575 13400 14950 13250 16650 14575
2010 MODELS Domestic Cars Buick LaCrosse CX 4D Sedan Cadillac DTS 4D Sedan Chevrolet Cobalt LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 Touring 4D Sedan Chrysler Sebring Touring 4D Sedan Ford Mustang 2D Coupe Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan Ford Focus SE 4D Sedan Import Cars Acura TL 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Galant ES 4D Sedan Nissan Altima 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Trucks BMW X3 XDrive30i 4D SAV Cadillac Escalade 4D Utility AWD Cadillac SRX Luxury 4D Utility AWD Chevrolet Colorado LT Crew Cab 4WD Z85 Chevrolet Equinox LS 4D Utility FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D Utility 4WD Dodge Dakota Bighorn Ext Cab Dodge Grand Caravan SE Wagon Ford Edge SEL 4D Utility Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Flex SEL 4D Utility Honda CR-V LX 4D Utility 4WD Honda Odyssey LX Wagon
UCN_19.indd 1
Dec-12 15400 18300 8550 10850 14100 10850 13350 15500 18000 9350 Dec-12 20800 21200 51500 12800 9850 24200 32500 9550 10600 11900 9950 12550 10300 13000 Dec-12 27400 40450 27800 17525 13975 18350 24100 13175 11500 17975 15300 17675 17350 18500 15700 15950
Jun-13 14200 18300 8200 9900 13350 9850 13200 14400 17900 9600 Jun-13 20600 20600 41000 12800 9750 22500 27800 9000 10450 11750 9550 12250 10500 12500 Jun-13 26350 38600 25300 17850 13850 18050 22950 12800 12025 17900 14525 17550 17250 18400 15700 14850
Domestic Cars Buick LaCrosse CX 4D Sedan Cadillac DTS 4D Sedan Chevrolet Cruze LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 4D Sedan Chrysler 200 Touring 4D Sedan Ford Mustang 2D Coupe Ford Focus SE 4D Sedan Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan Import Cars Acura TL 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan 2.4 Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Galant ES 4D Sedan Nissan Altima 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Trucks BMW X3 XDrive28i 4D SAC Cadillac Escalade 4D Utility AWD Cadillac SRX Luxury 4D Utility AWD Chevrolet Colorado LT Crew Cab 4WD Z85 Chevrolet Equinox LS 4D Utility FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D Utility 4WD Dodge Grand Caravan Express Wagon Ford Edge SEL 4D Utility Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Flex SEL 4D Utility Honda CR-V LX 4D Utility 4WD Honda Odyssey LX Wagon Jeep Wrangler Sahara 2D Utility 4WD
Dec-12 18200 27000 11800 11900 17850 12700 14950 10750 17600 21800 Dec-12 23400 24400 58700 14100 13600 27700 36700 10700 11900 13200 10850 14050 11800 15300 Dec-12 31900 46150 30500 19025 16400 19825 26525 13875 20750 16775 26375 19225 20875 16800 19150 21975
Jun-13 16200 24000 11500 11200 16700 11200 14600 11100 15850 22200 Jun-13 23000 24200 48400 14250 13300 25900 31400 10600 11700 13000 10350 13750 11700 14800 Jun-13 30800 43200 27750 19600 16100 19525 26375 14300 20900 15550 26650 19450 19175 17050 18650 21525
Dec-13 14350 21100 9900 9550 15350 9950 13200 9700 14000 21600 Dec-13 20700 20450 44600 13200 11150 24400 29800 9900 9900 11200 9500 12750 10550 13250 Dec-13 29100 40700 23700 18650 12600 18575 24725 11950 18875 13400 25350 18900 18250 15600 16850 21575
Projected Figures Dec-14 Dec-15 12950 11150 15775 13225 8475 7250 8375 7325 12275 10375 8575 7300 12200 10925 8200 6950 12175 10325 16425 13600 Dec-14 Dec-15 17275 14800 16775 14150 37325 31550 11100 9725 9675 8075 21275 18675 24500 20050 8150 6850 9075 7800 10075 8650 8175 7050 10875 9650 8850 7725 10900 9225 Dec-14 Dec-15 22850 18850 33525 28100 20250 17350 15725 13725 10750 9025 15525 13750 21600 18625 10175 8350 15475 13125 11825 9825 19750 16375 14800 12775 14325 12200 13100 11600 14150 12275 18475 16000
Dec-13 8250 14400 5550 7100 10750 5600 9750 8200 14500 6700 Dec-13 16900 14300 33000 10300 7050 18200 18700 6800 8050 8850 7200 9850 8350 9850 Dec-13 19700 31100 15000 15250 8175 14625 20725 9775 8250 13425 10150 13550 14325 7500 12200 11400
Projected Figures Dec-14 Dec-15 7050 5975 11100 9075 4900 4250 6150 5175 9675 8100 4250 3300 8800 7600 6400 5300 10825 8950 5300 4375 Dec-14 Dec-15 12750 10425 12000 9850 26125 21500 8400 7175 5925 4825 15250 13050 15700 12525 5600 4525 6875 5750 7775 6525 6050 5075 8225 7100 6575 5625 7850 6475 Dec-14 Dec-15 15200 12350 23550 18700 12250 10000 12175 10375 7250 5900 12300 10625 16175 13225 8300 7250 6925 5550 10725 9025 8050 6400 10625 8575 11450 9825 6575 5250 10150 8900 9675 8075
2009 MODELS Dec-13 12600 17500 6950 8000 12700 8200 11800 13100 17450 8350 Dec-13 18700 17350 37650 11750 8300 21200 26200 8300 8700 10000 8950 11250 9450 11300 Dec-13 24550 36350 21600 16950 11275 17000 21875 11875 10150 16450 12200 16500 15875 16300 14100 13650
Projected Figures Dec-14 Dec-15 11300 9500 13200 10975 5900 5100 7150 6150 10350 8775 5850 4625 10400 9100 10450 8700 13300 10850 6950 5575 Dec-14 Dec-15 15050 12400 14625 12175 31500 26375 9725 8400 7175 5925 18075 15325 20300 16300 6800 5675 7875 6700 8775 7450 7325 6175 9500 8300 7575 6600 9400 7925 Dec-14 Dec-15 19150 15750 28350 23175 18075 14850 13950 12175 9125 7375 13850 12075 18650 15725 9825 8575 8100 6550 12950 10975 9725 7950 13200 10700 12675 11175 12725 10825 11725 10250 11550 9800
Domestic Cars Buick LaCrosse CX 4D Sedan Cadillac DTS 4D Sedan Chevrolet Cobalt LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 Touring 4D Sedan Chrysler Sebring LX 4D Sedan Ford Mustang 2D Coupe Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan Ford Focus SE 4D Sedan Import Cars Acura TL 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Galant ES 4D Sedan Nissan Altima 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Trucks BMW X3 XDrive30i 4D SAV Cadillac Escalade 4D Utility AWD Cadillac SRX 4D Utility AWD V6 Chevrolet Colorado LT Crew Cab 4WD Z85 Chevrolet Equinox LS 4D Utility FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D Utility 4WD Dodge Dakota Bighorn Ext Cab Dodge Grand Caravan SE Wagon Ford Edge SEL 4D Utility Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Taurus X SEL 4D Utility FWD Honda CR-V LX 4D Utility 4WD Honda Odyssey LX Wagon
Dec-12 10250 16300 6850 9350 13000 7950 11150 10400 15900 8050 Dec-12 18600 18150 44500 11600 8350 20800 23600 8450 9900 10700 8950 11250 9150 11100 Dec-12 22500 34950 19450 16425 11275 15525 22625 11725 9750 15875 13175 14425 15375 11875 13950 14500
Jun-13 9900 15200 6500 8800 12050 7150 10800 9100 14800 7800 Jun-13 18800 17600 35800 11450 8300 19500 21200 7500 9300 10100 8100 10950 8900 11000 Jun-13 21350 34300 17450 16375 10775 16075 22625 11200 9800 15000 12525 14325 15900 10775 14200 13000
12/9/13 1:50 PM
ÛÛÝÛÛÛDecember 16, 2013
USED CAR NEWS
Compiled By Jeffrey Bellant
UVA Opens Two New Sales
KNOW THE WAY?: Buyers bid at United Vehicle Auctions’ headquarters at Club Auto Sport in San Jose, Calif. UVA recently opened two more sales in Los Angeles and Salt Lake City.
Car dealers in Los Angeles and Salt Lake City have new opportunities to buy and sell frontline stock with United Vehicle Auctions opening of two new locations. “We are tremendously pleased to add these two new locations,” said John Brasher, president of Brasher’s Auctions, the parent company of UVA. “Now that we are hosting weekly sales in (six Western cities), dealers throughout the West have weekly opportunities to take advantage of the opportunities and benefits provided by United Vehicle Auctions.” UVA’s Booksheet sale is designed specifically to help new car dealers meet the challenges in today’s marketplace, explains Brasher. “Our UVA sales include inventory from new car dealers who are finding great success in selling their aged inventory in a trusted environment at a fair market price without have to remove it from their front line,” Brasher said. “Buyers benefit by knowing that every vehicle offered in the sale has a clean Carfax report, has a booksheet that is guaranteed to be accurate, and is front-line ready.”
ADESA Blog Wins PR Award
ADESA announced that its blog, “Overdrive,” was recently recognized in PR Daily’s 2013 Digital PR Awards. Overdrive received Honorable Mentions in two categories: Best Blog and Best Digital PR CampaignB2B Sector. “It is truly an honor to be acknowledged alongside so many wellknown companies,” said ADESA’s Tom Caruso. “Our goal was to create a unique and innovative digital space where our customers and employees can connect and share 24/7. “We look forward to continuing to build upon our success and offering our online community timely, useful
UCN_20.indd 1
and engaging information.” Winners of this year’s awards include a broad range of businesses from around the globe. Each was recognized for delivering bold and innovative online campaigns that “harnessed the power of digital communications to its fullest extent,” according to the PR Daily website. 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
12/9/13 3:25 PM
December 16, 2013ÛÛ�ÛÛ~
USED CAR NEWS
Disconnected Jottings From Tony Moorby... In order to see the future, you have to get a really good grip of the past. Many have been predicting the demise of the auto auction business since the onset of the Internet back
I’ve written before, extolling the virtues of the auction business and its ability to stabilize prices, keeping individual markets from over or under supply. That capacity has been even more
Tony Moorby
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in the late nineties. But like many industries, the resilience of the car business’ many facets is remarkable. The beauty is that it’s customer-led. Mind you, if you bake in the costs of keeping some of the manufacturers afloat you have to wonder at the real price of a GM or Chrysler product when you add the tax dollars we paid to buoy their market presence. I know – they’re paying it back‌!
advanced with the Internet – the knowledge of pricing and vehicle availability is instant. Sharing knowledge about an individual car or truck’s history is at the end of your hand-held-communication-device. Er, sorry, phone. And dealerships, moving from bragging about having an Internet salesperson, now launch whole departments trawling the web for information on cars, customers, prices, data-ware-
C R O S S WO R D
housing and worms. There is a sense that, if you’re not doing these things, then you are somehow deficient and that you’re unable to serve your market and customers. But with all the exquisite new challenges and opportunities, which I heartily support and endorse, I can’t help but get the feeling that some of the “old ways� still appeal to large audiences of dealers and their customers. I see it every week in a small auction in Chattanooga – whilst I can sell a car over the Internet to a dealer in Seattle, at a competitive price, with an underwritten description, guaranteed to describe the last nut and bolt with video and pictures akin to a proctology exam – most of the attendees come to see the market. Get a sense of its vibrancy – or the lack of it. Some just like to socialize, comparing notes and observations, seeing who’s there and who’s missing. My point is that it’s a ‘horses-for-courses’ thing and you now have a choice. Can you hear a Minneapolis
dealer’s son saying, “You did what in 20 degrees below? You went to an auction? Why?� Or the same in Phoenix in the summer? They’ll achieve the same thing from a sterile office a thousand miles away with a mocha latte at the end of their elbow! That’s a good thing because the auction industry can embrace a new, up-coming audience as efficiently as anyone else – and there are others. New competition abounds in the vehicle acquisition and distribution business and new ideas and innovations along with them. Hooray to that. I’ve long held what I call my “reversion theory� about the old-style auction business. It expresses a belief
To see past columns from Tony Moorby, visit www.usedcarnews.com/ columnists/tony-moorby
Sponsored by INSURANCE AUTO AUCTIONS
By Miles Mellor
1
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36. Big wine holder 37. Drivers’ licenses 39. Working out a deal 40. Mercury mid-size 42. ____ Spectra 44. Crash into 46. Reno’s state 48. Tech executive 50. Vauxhall ____ family car 51. Gets there 53. Sporty 50’s Sunbeam ____ 55. “Are we there ___?� 56. Little dent
Down 1. Its logo has three diamonds 2. Truck weight measurement 3. Seldom seen 4. Well-liked 5. Word that turns a prospect into a buyer
that auctions had a pretty good role in vehicle redistribution, even back before the eighties when some changes enlarged access to more vehicles. It was a huge industry then and, even with new players, it will still have a tremendous part to play but elementally dealing with the people that have always relied on weekly access to all the senses that can be sated by turning up and looking. It would appear that even Manheim is part of that reversion, re-entering the auction market at an ‘everyday dealer’ level with their latest announcement of Go Auctions. It looks like history is repeating itself with a glimpse into the future.
6. Streamlined 7. Yellow shade 8. Japanese car maker 10. Info 11. Mena’s state 14. In debt to 16. “Pain at the ___� 18. Sched. time 19. Disney’s auto movie 22. Its original slogan was “get to know ___� 23. Nissan truck 24. 100% (3 words) 29. Gas station identification 30. Part of detailing 32. Touring vehicle 33. Strikingly strange, like concept cars often 35. Mid-size Hyundai 38. BRZ maker 40. 9-5 for one 41. “Se7en� sin 43. ___ clip (2 words)
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Answers to the 12/2/13 puzzle 1
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Answers to this puzzle in the 1/6/14 issue. Call 1.800.794.0760 for a FREE subscription.
UCN_21.indd 1
12/9/13 3:04 PM
ÛÝÛÛDecember 16, 2013
USED CAR NEWS
Advertisers are solely responsible for content of classified advertisements. To place an ad, or for more information, call the Classified Department: 800-794-0760 ext.107
CLASSIFIEDS
VEHICLES FOR SALE
2014 UPCOMING ISSUES
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Deadline Thurs., February 20
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Call 877.201.7352
April 21 - Product Showcase Advertorial
CLASSIFIEDS
FACILITIES FOR SALE/LEASE
USED CAR LOT with auto facility located in Detroit suburb. 25 yrs in business, second floor apartment. Retiring. $115,000. Call Dave for more
CLASSIFIEDS
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BUYERS AUCTION BUYER. Flat fee purchasing. All cars checked for accident/damage. 18 years, Florida based but will travel. Licensed and bonded dealer. Global Auto Group Inc., 561-262-3008, STEKRA@AOL.COM WHOLESALE BUYER - REP 30 + yrs exp. Midwest based Call Glenn, 708-738-9255
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UCN_22.indd 1
- Dealers Guide to Top Auctions
Deadline Fri., February 14
March 17 - Payment Assurance Technology - Industry Vets
Buy Online. Buy Direct.
PERFECT Buy-Here-Pay-Here facility in Bullhead City, AZ: Showroom, 3 Service Bays/Lifts, Detail Bldg, Sun Shade Screens. Lease or Financing options available. 928-897-1354, ask for Rose
(Insert)
Serving the upper Midwest 37 yrs, 10 car haulers 800-697-0757
Manheim Tampa 4/9/10 SALVAGE AUCTIONS FLORIDA
Fastest Growing Salvage Sale in FLORIDA
3:25
Deadline Thurs., April 10
May 1 - Data Source Book Deadline Tues., April 1
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YOU CAN PLACE YOUR AD IN THIS SECTION FOR AS LITTLE AS $56! Call Marie Hingst today at 800-794-0760 ext.107 marie@usedcarnews.com
June 2 - How to Get a Life Off the Lot Deadline Thurs., May 22
June 16 - NIADA Issue Deadline Thurs., June 5
July 7 - NIADA Quality Dealer Deadline Thurs., June 26
July 21 - Auction Technology Focus Deadline Thurs., July 10
August 4 - Finance & Warranty Advertorial Deadline Thurs., July 24
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TO ADVERTISE PLEASE CALL 1.800.794.0760 EXT. 107 SCAN CODE WITH SMARTPHONE
CLASSIFIEDS
Deadline Thurs., February 6
12/6/13 1:25 PM
Best Selling. Best Performing. BEST OPTION! The Talon by GoldStar GPS. Still the best-selling and best-performing GPS tracking device around. Let’s get to the truth about The Talon GPS Tracking Device from GoldStar GPS. It’s still by far the best-performing and best-selling device in our market. But don’t take our word for it. Just take a look at the numbers. The Facts Don’t Lie:
DEALER’S CHOICE
• 10th generation patented technology innovation • Over 500,000 units sold in less than 1 year — more than any other device in our market • Next to non-existent failure rate of just 0.4% • High quality, rugged, automotive-grade engineering and design • Water-resistant, integrated sealed cable for enhanced durability • Resettable fuse located in-device for greater protection • Meets & exceeds all required carrier certifications for receiving and transmitting cellular data
No wonder Talon is the dealers’ first choice for GPS tracking hardware. But we’re not stopping there. Stay tuned for the next-generation Talon CDMA device — with even faster speeds and bigger bandwidth.
PUT TALON TO THE TEST. Call Today and Test The Talon Performance for Yourself.
1-866-655-8825 l GoldStarGPS.com/talon-best-option ©2013 Spireon, Inc. All Rights Reserved.
UCN_23.indd 1
12/5/13 11:20 AM
“Pennsylvania’s Largest Independent Auto Auction”
Featuring
1100 South York St. | Mechanicsburg, PA 17055 | 717-697-2222 www.harrisburgautoauction.com
UCN_24.indd 1
12/9/13 3:24 PM
