Used Car News 12/17/12

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December 17, 2012

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Consumers want quality vehicles, but what does that mean?

“Quality” ranked first for what most influences car buying decisions for the third year in a row, according to a survey by CarMax Inc. Forty-one percent of Americans who have purchased a vehicle say that quality had the greatest impact on their car buying decision, followed by price and safety. Resale value and environmental concerns both registered less than 5 percent.

“Consumers want to drive off the lot knowing they are in a high quality vehicle, and they also want to feel good about the price and safety of the vehicle,” said Troy Flaherty, CarMax’s Mid-Atlantic region vice president of purchasing.

In many quality surveys, however, companies are punished when new tech-

nology struggles for consumer acceptance.

For example, Ford fell in both the J.D. Power and Consumer Reports rankings due to issues with its MyTouch system.

Another study, Strategic Vision’s Total Value Index, attempts to correct for that.

The index puts a high value on what the company calls the Innovation Factor Score.

“Innovation is the strongest single predictor of which cars, brands and corporations are seen as the best value, or Total Value in our study,” said Strategic Vision president Alexander Edwards.

Ford had eight models finish near the top for their respective segments.

Volkswagen of North America ranked highest of all brands with its four segment winners: Golf, Jetta Wagon, CC and Eos. The extra weight given to innovation worked both ways.

American Honda Motor continues to do well in Total Value, finishing third overall. The Honda Ridgeline has been the Total Value winner among standard size pickups each year since being introduced, with Odyssey being a five-year consecutive leader among minivans.

However, Honda lagged in the innovation scoring.

“Corporations like Honda still do well, but must be careful when the driv-

ELECTRIFIED AND SATISFIED: Richard Harrison of Keego Harbor, Mich., charges his 2012 Volt at Serra Chevrolet in Southfield, Mich. Volt drivers really like their cars and would buy the same model again.

ing force in the algorithm for their score is mostly resale value and MPG factors,” said Darrel Edwards, co-founder and executive chairman of Strategic Vision.

“Both of these factors are important, but are increasingly becoming ‘up-forgrabs’ to the accelerated competition.”

The Chrysler/Dodge brands were named the most improved for Total Value.

Chevrolet also received credit for innovations, with

its Volt named special category leader.

The Volt has the second highest Total Value score in the industry.

The electric car is developing a strong following despite its low sales.

A Consumer Reports survey found 92 percent of respondents who own the Volt said they would definitely buy it again.

At the other end of the spectrum, the redesigned subcompact Nissan Versa sedan came in with the lowest score in the survey, with

fewer than half of its owners saying they would definitely buy it again.

Other low scorers include the V6 versions of the Chevrolet Silverado and GMC Sierra pickups, and the Nissan Armada, Suzuki SX4, and Mitsubishi Outlander SUVs. One of the features that didn’t seem to have a strong effect on owner satisfaction was brand nationality.

The 44 top-rated models include 16 American, 14 Asian and 14 European vehicles.

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11/27/12 10:25 AM

12/10/12 3:26 PM

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12/7/12 11:51 AM

USED CAR NEWS

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Hurricane Wiped Out Classics

By Jenny King

YPSILANTI, Mich. - Owners and admirers of collectible cars gather monthly at a plain, low-slung building here wedged between new apartments and the railroad tracks.

Inside they enjoy the eye candy of special vehicles in storage, many with their dust covers pulled back for the popular Saturday morning event.

Most of the cars likely are insured by Hagerty, the Michigan-based company that, among other things, offers coverage for unique vehicles and just plain old ones that are loved in spite of themselves.

McKeel Hagerty was the featured speaker in December and the news he brought was mixed. The bad news was Hurricane Sandy destroyed as many as 10,000 special cars.

The good news is the market for collector cars and trucks is weathering the recession and in some cases is extremely strong.

Cars with special coach-

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work or chassis configurations are the most valuable, Hagerty said.

Muscle cars have been an exception. Though perhaps over-valued before 2008, they have been hurt the most in subsequent years and have yet to recover.

Hagerty said Japanese cars are beginning to attract collector attention. For those interested in muscle cars he recommended models with mid-size engines.

“Seventeen percent of the vehicles we insure are pickups,” he said.

Younger buyers are showing an interest in “eventeligible” cars like a first year Audi Quattro.

While people in their 50s used to buy the highest numbers of collectible cars, now it’s those ages 70 and over. Octogenarians are heavy into Corvettes.

And while the multiple auctions in August in Monterey and Pacific Palisades (California) in 2012 recorded sales of $265 million, they were only about three percent of the market.

Ferraris continue to lead

EXPERT OPINION: McKeel Hagerty, CEO of insurance firm Hagerty, knows classic cars inside and out. He recently told a group of enthusiasts that Japanese cars are becoming the hot item in the market.

the pack in terms of prices, Hagerty said.

The most expensive to insure, Ferrari GTOs are valued at $30-$40 million each. Brassies like the Mercer are going up in value and vintage motorcycles are catching on as collectibles.

Buyers see them as period pieces and they are more affordable, he said.

There were no Mercers in the Ypsilanti storage facility that day but there was at least one bright red Ferrari.

Its wintertime companions ran the gamut from a 1927 Rolls-Royce Phantom I belonging to Guy Zaninovich to John Ottino’s 1967 Plymouth Hemi GTX 426, an early ‘50s Dodge Coronet, a disheveled 90-year-

old Buick touring car about to undergo reconstruction, a Fiat racer and Bill Milliken’s 1927 Chrysler coupe modified as a LeMans racer.

Ann Arbor resident Tom Kauper was standing beside his blue-and-white 1928 Chrysler rumble seat coupe.

Kauper said the monthly gathering is even better in warm weather.

12/10/12 3:10 PM

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USED CAR NEWS

NEWS BRIEFS Flat CPO Sales Enough For Record

November certified pre-owned sales were 147,860, about even with the prior month. This was enough to make last month the best November to date, according to AutoData Corp.

There were 25 selling days in November and 26 in the prior month.

November year-to-date sales were 1,677,863, up 5.9 percent from November YTD 2011. The full year is on track to pass the 1.8 million mark for the first time.

Subaru hit an all-new high.

Wholesale Prices Show Little Change

Wholesale used vehicle prices on an adjusted basis rose by 0.6 percent, according to Manheim Consulting.

Without the seasonal adjustment, prices were unchanged.

The November Manheim Used Vehicle Value Index stood at 122.6, which represented a 1 percent decline from a year ago, a 25 percent increase from the trough in December 2008, and a 4 percent decline from the all-time high reached in May 2011.

Due to Hurricane Sandy, most rental car companies partially delayed scheduled defleeting. Average auction prices for the available units remained steady in the $15,000 range.

Westlake Inks New Credit Facility

The franchisor also added Gerry last year.

Laneâ&#x20AC;&#x2122;s Payless Car Sales in Baton Westlake Financial Services an- Rouge, La., recently. The facility, Dealertrack Handles Titles nounced a new $30 million credit originally built as a Saturn store, is for Santander facility with MG Leasing Corp., a situated next to Gerry Lane Cadillac.

Dealertrack Technologies Inc. anJapanese leasing company. nounced that Santander Consumer The credit facility collateralizes Salvage Auction Reports USA will be moving its title adminWestlakeâ&#x20AC;&#x2122;s auto finance receivables. Higher Income istration processing to Dealertrackâ&#x20AC;&#x2122;s The agreement was executed on Copart Inc. reported the results Total Title Solution during 2013.

Nov. 8. for its quarter ended Oct. 31.

Santander made the decision to MGL is a joint venture of MarubeFor the three months, revenue, op- move their vehicle title management ni Corporation (which acquired a 20 erating income and net income were to Dealertrack to gain processing efpercent stake in Westlake Financial $238.9 million, $74.4 million and ficiencies and improve customer Services in July 2011) and Sumitomo $45.8 million, respectively. These satisfaction. Total Title Solution is Mitsui Finance and Leasing Com- represent increases in revenue of one of a family of collateral managepany Ltd., a subsidiary of Sumitomo $13.2 million; in operating income ment and digital document services Mitsui Financial Group. of $9 million; and in net income of offered by Dealertrackâ&#x20AC;&#x2122;s processing $4.7 million from the same quarter solutions group.

Payless Opens Largest Store Yet

Payless Car Sales Inc. announced the opening of a franchise location in Ft Myers, Fla., on Nov. 19.

Payless Car Sales of Ft Myers, located at 8900 Colonial Center Drive, is the newest and largest store in the franchise system to date. Located on four acres, the store stocks more than 300 pre-owned vehicles, and contains six vehicle service bays.

C R O S S WO R D

by Myles Mellor

PAGE 21

Published By General Media LLC (ISSN 1555-7413) is published at 24114 Harper, St. Clair Shores, MI 48080 Phone: 586-772-5200 or 800-794-0760 Fax: 586-772-9400 www.usedcarnews.com Charles M. Thomas Founder (1947-2002) Lynda R. Thomas, Publisher Colleen Fitzgerald, General Manager Editorial: Ted Craig, Managing Editor Jeffrey Bellant, Staff Writer Contributing Writers: Emily Caswell, Sheila McGrath, Jenny KIng Columnist: Tony Moorby

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

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

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12/10/12 3:32 PM

USED CAR NEWS

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State Ends Private Sales Tax Exemption

By Jeffrey Bellant

Georgia will end its casual sales tax exemption after March 1, 2013, leveling the playing field for dealers in the used-car market, one of several changes on tap for the coming year.

The state will also end collecting sales tax on vehicle transactions, as well as the annual ad valorem tax at that time, while replacing it with a new, one-time Title Ad Valorem (TAVT) Tax fee on all vehicle transactions which take place after March 1, 2013.

But the end of the casual sales tax exemption will be music to dealers’ ears.

It’s a change the Georgia Independent Automobile Dealers Association has supported the past few years, said Paul John, executive director.

“It seems like we’ve been working on it every year,” he said.

John said the law takes away the main incentive for consumers to buy from private sellers since they will have to pay the Title

Ad Valorem (TAVT) Tax Fee on those sales after March 1, 2013.

This change should drive more customers to dealer lots for convenience, inventory selection and financing assistance, John said.

However, he added there are “still some wrinkles to be smoothed out,” before the law goes into effect.

Some issues of implementation are still being discussed.

John said the change in the law isn’t just good for dealers.

Consumers will pay a one-time ad valorem fee up front on vehicle purchases after March 1, without having to pay it again.

The TAVT is based on 6.5 percent of the fair market value of each vehicle. That fee will replace the sales tax from previous years.

The fee will not be based on the sale price.

On March 1, 2014, the tax will increase to 6.75 percent and, to 7 percent on March 1, 2015.

A web site is available for

dealers to check the fair market value through the state.

In a report to dealers, John said in many cases, the fair market value ends up being less than the sale price, which means the title fee may be less than what the sales tax would be.

The trade-in credit will remain the same so the title fee will be calculated on the trade difference.

The new title fee will

apply to all vehicle purchases, including casual sales between individuals.

John said the association has been working with attorneys, lobbyists and the authors of the new law to get amendments giving buy-here, pay-here dealers the option of deferring fee payment over time.

That remains a big issue for the association.

Other changes in the Georgia Motor Vehicle Division include transition-

ing to an electronic lien and title system.

Georgia will be moving throughout the year to all electronic liens by 2014.

This means that that once a title application has been submitted to the tag office, that includes perfection of the lien, there will not be a title printed and mailed back to the lien holder.

In the event of a payoff or repossession, the title will then be printed and given to owner.

We want to thank all our customers for a great 2012 and we are looking forward to 2013.

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12/10/12 1:03 PM

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USED CAR NEWS

Car Salesmen Rank Among Lowest for Public’s Trust

By Ted Craig

Another year, another poor showing for car salesman in a public opinion poll.

A poll conducted by Gallup Inc. asked respondents to rank certain professions as high, average or low for honesty.

Car salesmen finished last for high (8 percent).

The good news, as it were, is more than half of respondents ranked salesmen as high or average.

And they didn’t finish with the highest percentage for low. That distinction belongs to the U.S. Congress.

The results prove little has changed for car dealers over the years.

Mike Devilling, president of PR firm The Devilling Group, said the reputation of car salesmen often suffers when other dealership staff create problems.

Devilling gave a personal example. He bought a used Jeep recently from a franchise dealer in metro Detroit.

The SUV had more than 150,000 miles on it, so Devilling knew issues would arise. He said the problem was how the service staff treated him when there was a problem.

Devilling also bought a new car recently.

“The experience with the salespeople both times was phenomenal,” he said.

Anybody will treat a customer nicely when they are buying something. The reputation of a dealership often comes from other employees.

“Every single dealership employee is a touch point,” Devilling said.

Devilling recommends the book “Customers for Life” by dealer Carl Sewell for advice on how to achieve that goal.

Overcoming the image problem proves challenging due to the nature of the business, however.

David Alfonso, national auction sales manager for Kia Motors America, said he never has a bad experience with any dealer he meets.

“The people I come in contact with are some of the finest people you ever want to meet,” Alfonso said.

They do want to get the best price on every deal, though. It works the same way on the selling side.

So car sales by nature creates a sort of confrontation.

The experience is completely different when people encounter nurses, the group ranked the highest for trust.

There are some things staff can’t be trained for.

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12/7/12 3:24 PM

USED CAR NEWS

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Vendor Helps Dealers Move To Electronic Tag System

By Jeffrey Bellant

The New Jersey Independent Automobile Dealers Association announced a new vendor partnership and is encouraging dealers to contact the association for help in working with the stateâ&#x20AC;&#x2122;s electronic temporary tag system.

The New Jersey IADA has partnered with Dealertrack to manage the electronic temporary vehicle registration tag (eTemp Tag) system put in place earlier this year, said Paula Frendel, executive director of the New Jersey IADA. Beginning in July, dealers were no longer permitted to issue the oldstyle temp tags, nor were non-resident temp tags allowed.

The new eTemp Tag, piloted by the stateâ&#x20AC;&#x2122;s Motor Vehicle Commission, allows dealers to print tags at their dealership as opposed to traveling to a motor vehicle agency to get new tags.

The Motor Vehicle Commission has said the eTemp Tags are more cost-effective for dealerships than the previous system. It also eliminates the need for dealers to mail hard copies of the issued etemp tags to the MVC and the need to worry about securing the temp tag inventory. Now dealers can print the items as needed, Frendel said.

Each dealer can securely control employee access to the system by assigning certain functions and is able to view reports of any and all temp tag activity occurring at the dealer location.

The system also allows dealers to create the tags 24 hours a day/ seven days a week at a dealerâ&#x20AC;&#x2122;s convenience.

The New Jersey IADAâ&#x20AC;&#x2122;s partnership with Dealertrack will benefit association members because of its ease and flexibility. â&#x20AC;&#x153;Dealertrack integrates with 30 different dealer management systems,â&#x20AC;? Frendel said.

It also simplifies the process since dealers who use it go directly to a single screen, she said, as opposed to multiple screens that open normally, which could be confusing to some, Frendel said.

Dealertrackâ&#x20AC;&#x2122;s Michael Audette said the companyâ&#x20AC;&#x2122;s specialty is automation and this new system is an example of this.

He said the company has started advertising to the independent market.

Sal Enea, president of Route 46 Auto in Lowdi, N.J., is hoping the Dealertrack system will make things easier. â&#x20AC;&#x153;(The new process) really is harder than the old system,â&#x20AC;? he said.

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12/10/12 4:07 PM

PAGE 8 - A YEAR IN REVIEW

Regulation Dominates News in ‘12 The biggest story of the year for the used-car business was increased attention from regulators.

And there was no more prominent example than the battle over new buy-here, pay-here regulation in California.

The state is the largest car market in the United States.

What’s more, it is seen as the birthplace of new laws.

Assemblymen Mike Feurer and Bob Wieckowski and state Senator Ted Lieu introduced three separate bills, each of which created new rules for different aspects of the business.

All came in response to a series of articles that appeared in the Los Angeles Times last year. Those articles, called “Wheels of Fortune” and written by automotive reporter Ken Bensinger, won the prestigious Loeb Award for business journalism this past spring.

Feuer’s bill started as the toughest. It originally included a ban on starter-interrupt technology, for example.

The industry worked with Feuer and some of the worst aspects, such as the ban, were removed.

In the final version, Feuer’s bill requires a 30-day warranty and prevents dealers from taking payments at their stores.

Wiecowski’s law requires

the posting of vehicle valuation. It fails to define the meaning of fair valuation.

Lieu proved the most difficult for the industry to work with and his bill was the only one vetoed by Gov. Jerry Brown. State analysts found it too costly in regard to sales tax.

The battle over the laws brought together many groups from the industry, including the National Independent Automobile Dealers Association, the Independent Automobile Dealers Association of California, the National Alliance of BuyHere, Pay-Here Dealers and the Community Automotive Finance Association. A group of local dealers also banded together to create their own grassroots lobbying effort.

Independent dealers found few allies among the bigger players.

Franchise dealers sat out the debate. Meanwhile, CarMax Inc. lobbied and won exclusion for its stores.

Buy-here, pay-here dealers face increased scrutiny even if no other state follows California’s lead as the Consumer Finance Protection Bureau ramps up.

Richard Hackett, the head of the CFPB’s installment and liquidity lending group, made the rounds at various industry gatherings this

COUP OF THE YEAR After greatly expanding through a series of acquisitions last year, AutoTrader Group filed with the Securities and Exchange Commssion for an initial public offering.

The IPO is expected to raise $300 million.

The stock will trade on the NASDAQ with the ticker symbol ATG. This is the second attempt

by AutoTrader to go public. It started the process in 2000, but withdrew when the dot-com bubble burst.

AutoTrader is majority owned by Cox Enterprises, 8 b " "* "/ 8>H 9A89

UCN_08.indd 1

which also owns auction chain Manheim.

Cox sold a stake in the company to a private equity firm in 2010.

AutoTrader continues adding components as it waits for its stock offering.

Subsidiary vAuto purchased the Auction Genius system that helps dealers find inventory in the wholesale market.

Automotive IPOs might be the big news next year.

For example, press reports say Santander might make an offering for its U.S. auto finance business.

2012 MOVERS AND SHAKERS

Austin Ligon The former CEO of CarMax Inc. spoke at the Democratic National Convention last summer.

Ligon defended the Obama Administration’s stance on business and praised the President for giving aid to the auto industry.

Not all dealers were as thrilled with how the bailout was handled, especially those who lost their stores as a result. Tamara Darvish wrote a book about her experience, “Outraged,” and spoke at the Conference of Automotive Remarketing. year, including the National Automotive Finance Association conference in June and the NABD conference in October. Hackett spoke at the NAF Association event, taking pre-approved questions from attendees.

The CFPB has yet to directly create rules for the buy-here, pay-here business, but it has issued general rules that affect the business.

For example, the CFPB

Hurricane Sandy

Pierre Pons

The devastation this storm created included the destruction of thousands of vehicles.

Car sales were cut short in October, but experts expect them to remain strong through the end of the year as consumers replace their vehicles.

The unexpected demand shows signs of driving up used-car prices.

Analysts for Black Book reported that no vehicle segment saw a price decline of more than $100 in the first weeks after Sandy. That hadn’t happened since August.

The TPC Management consultant helped create the Auction Academy, a program designed to help the next generation of industry leaders learn about the business.

The Academy was announced last year and started classes in January.

Industry veteran Randall McCatheren is overseeing the day-to-day activities.

Auction veterans have opened their sales and in some cases their own homes to the Academy’s students.

fined Capital One $210 million for deceptive marketing of credit card “add-on” products. This action affects all consumer creditors using third parties for marketing, including dealers.

The FTC is taking its increased oversight of automotive retailing seriously, as well.

“Recognizing that a car is second only to a home as the most expensive purchase

many consumers make, the FTC has been highly involved in auto-related consumer issues,” the agency stated in a recent press release.

The biggest splash came in March, when the regulator settled with five dealers for commercials that the FTC claims mislead consumers about paying off trade-ins.

All the commercials appeared on YouTube.

FLOP OF THE YEAR The Saab logo is disappearing from the auto landscape after a longshot attempt to keep the brand going.

Saab was bought by supercar maker Spyker from General Motors when that company shed assets during its bankruptcy.

The Dutch firm found no more success in expanding the quirky brand’s appeal and declared bankruptcy.

Saab’s used values were holding up fairly well through the year, according to Black Book.

But they still fell at twice

the rate of competitors such as Volvo.

“Despite its early cult-like following similar to Hummer, Saab’s wind down is much more like Oldsmobile,” said ALG vice presi-

dent Eric Lyman.

Saab wasn’t the only brand to disappear.

Suzuki also left the U.S. market this year, but will continue selling vehicles in other countries. www.usedcarnews.com

12/10/12 4:40 PM

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ADESA Houston January 9 281-580-1800

Manheim New Jersey January 16 609-298-3400

Manheim Riverside January 15 909-689-6000

Columbus Fair AA January 9, 30 614-497-2000

Manheim Orlando January 8 800-337-8491

Manheim Seattle January 9 206-762-1600

Manheim Pittsburgh January 16 724-452-5555

Southern AA January 9 860-292-7500

Manheim Nevada January 18 702-361-1000 Manheim New Jersey January 9, 16, 30 609-298-3400

Choose Chase on ADESA.com and OVE.com for quality bank-sourced vehicles.

Contact auctions directly for current sale information.

Subaru Motors Finance ADESA Boston January 11 508-626-7000

Manheim Detroit January 10, 24 734-654-7100

Manheim Pennsylvania January 18 800-777-2053

ADESA Charlotte January 24 704-587-7653

Manheim Milwaukee January 16 262-835-4436

Manheim Pittsburgh January 16 724-452-5555

Brasher’s Salt Lake January 29 801-322-1234

Manheim Nashville January 23 877-386-5004

Manheim Riverside January 22 909-689-6000

Columbus Fair AA January 9, 23 614-497-2000

Manheim New Jersey January 9, 30 609-298-3400

Manheim Seattle January 9 206-762-1600

Manheim Denver January 16 800-822-1177

Manheim Orlando January 15 800-337-8491

Southern AA January 9 860-292-7500

*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. © 2012 JPMorgan Chase Bank, N.A. Member FDIC. All rights reserved. (12-381) 06/12

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USED CAR NEWS

Dealer Wants Variance To Re-Open Store

By Sheila McGrath

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A Montclair, N.J., Chrysler dealer hopes to find out this month if he can reopen his business at the site where it operated for decades.

The property, at 665 Bloomfield Ave. in the central Montclair business district, has been home to car dealerships for 75 years. But when DeCozen Chrysler Jeep Dodge owner Frank Cerino moved to a bigger location about five years ago, he says he didnâ&#x20AC;&#x2122;t know he was giving up his right to use the space, which he still owns, to sell cars.

Now that he wants to use that space for an additional DeCozen location, township planners say his business can no longer operate there.

Montclair officials say they want to bring businesses to the district that either encourage walking or provide parking for shoppers. And theyâ&#x20AC;&#x2122;re hoping to lure businesses that will complement a new mixeduse development with apartments, retail spaces and offices that is under way nearby.

Cerino has filed an appeal in hopes of getting a variance that will let him reopen his dealership.

Janice Talley, director of planning and community development for Montclair Township, said a factfinding hearing is set for Dec. 19 to

determine whether Cerino is eligible for the variance. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve changed the zoning, so we would like to see something more pedestrian-oriented, not automotive- oriented,â&#x20AC;? she said.

Talley said the zoning rule isnâ&#x20AC;&#x2122;t new â&#x20AC;&#x201C; the change happened before Cerino relocated. But since he was there before the change, his dealership was grandfathered in â&#x20AC;&#x201C; until he moved out and let his sales license with the state of New Jersey lapse.

Before he can get his license reinstated, he has to get the Montclair plannersâ&#x20AC;&#x2122; blessing to reopen at his old address.

Cerino told The Montclair Times that he has been refurbishing the site over the last three years, putting on a new roof, installing a new electrical system and renovating the façade. He let his license lapse, he said, because he couldnâ&#x20AC;&#x2122;t sell cars there while the renovations were going on. He said he didnâ&#x20AC;&#x2122;t know that after a year of nonrenewal, local officials view the license as abandoned.

At some point after the new mixed-use development goes up nearby, someone may want to buy the property, he said. But until then, he told a Montclair Times reporter, he should be able to reopen the dealership on his own property.

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Š2012 Spireon, Inc. All Rights Reserved.

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12/6/12 4:53 PM

Ed Barlow President, Barlow Auto Group

Ed’s story ... “ TO SURVIVE IN THIS BUSINESS, I DEPEND ON SOMEONE TO PUT SOME SANITY IN AN INSANE WORLD.”

Hear more of Ed’s story ©2012 Ally Financial. All rights reserved.

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USED CAR NEWS

" "* "/ 8>H 9A89 b 13

FTC Mulls Changes to Guide Itâ&#x20AC;&#x2122;s more than our name, itâ&#x20AC;&#x2122;s our promise.

The Federal Trade Commission expanded its oversight of automotive retailing with the passage of the Dodd-Frank Act. The regulator has stepped up its activity in this area lately, including new look at the Used Car Rule.

The FTC is seeking public comment on proposed changes to the Used Car Buyers Guide required by the agencyâ&#x20AC;&#x2122;s Used Car Rule.

The commission is also issuing a final rule that makes technical corrections and revises the Spanish translation of the Buyers Guide.

The Buyers Guide gives consumers information about who will pay for repairs if something goes wrong with the car they buy.

The commission last reviewed and amended the Used Car Rule in 1995.

The Used Car Rule, formally known as the Used Motor Vehicle Trade Regulation Rule, has been in effect since 1985 and requires car dealers to display a window sticker on the used cars they offer for sale.

The buyers guide discloses whether the dealer offers a warranty and, if so, its terms and conditions, including the duration of the coverage, the percentage of total repair costs the dealer will pay, and which vehicle systems the warranty covers.

In states that do not permit sales of used cars â&#x20AC;&#x153;as is,â&#x20AC;? or without warranties, dealers must display an alternative ver-

sion of the Buyers Guide.

The FTC has sought public comment on the Used Car Rule, and based on a review of the comments, has concluded that the rule continues to benefit consumers and will be retained.

The commission is now seeking comments on potential revisions to the rule that would empower consumers without adding burdens to businesses, including: Ć&#x20AC;É&#x; #(!É&#x; É&#x; -. . ' (.É&#x; .)É&#x; ." É&#x; Buyers Guide encouraging consumers to seek vehicle history information and directing consumers to an FTC website for more information about vehicle histories; Ć&#x20AC;É&#x; #(!É&#x; É&#x;-. . ' (.É&#x;#(É&#x; * (ish to the buyers guide directing Spanish-speaking consumers to ask for a copy in Spanish, if they desire; Ć&#x20AC;É&#x; #(!É&#x; . &3.# É&#x; )(0 ,. ,-É&#x; and airbags to the List of Systems on the back of the buyers guide; and Ć&#x20AC;É&#x; & #(!É&#x; )2 -É&#x;)(É&#x;." É&#x; %É&#x;) É&#x; the buyers guide where dealers will have the option to indicate whether (1) the manufacturerâ&#x20AC;&#x2122;s warranty still applies; (2) the manufacturerâ&#x20AC;&#x2122;s used vehicle warranty, such as a manufacturerâ&#x20AC;&#x2122;s certified used car warranty, applies; or (3) some other used vehicle warranty applies.

The proposed buyers guide also makes some minor changes to improve readability.

The commission also invites comments on topics such as the nature and prevalence of deception in Internet used-car

sales and information the commission should make available on a new website.

To help protect consumers from potential post-purchase problems, both the proposed buyers guide and the current buyers guide recommend that consumers ask about an independent mechanicâ&#x20AC;&#x2122;s inspection before purchase, provide information about warranties, list a vehicleâ&#x20AC;&#x2122;s major systems and the major defects that may occur in them, and warn consumers that they should get all promises in writing because spoken promises are difficult to enforce.

The buyers guide disclosures are incorporated by reference into the sales contract, and govern in the event of an inconsistency between the buyers guide and the contract.

In addition to the proposed changes to the rule, the FTC is also announcing a new final rule that makes minor corrections to the Spanish translation of the buyers guide.

The Used Car Rule requires dealers to use Spanish-language versions of the buyers guide and to make related contract disclosures in Spanish when they conduct sales in Spanish.

The revised Spanish-language versions will take effect on Feb. 11, but dealers may use up any remaining supplies of the current buyers guide.

The revised Spanish translations of the Buyerâ&#x20AC;&#x2122;s Guide can be found on the Commisionâ&#x20AC;&#x2122;s website at business.ftc.gov.

Today, the car industry is more competitive and dynamic than ever.

The same can be said for the commercial customer. Thatâ&#x20AC;&#x2122;s why we offer an Ally Commercial Vehicle Line of Credit with specialized products like our third party guarantee and simplified billing.

Theyâ&#x20AC;&#x2122;re all part of a full line of products and services designed to make doing business in a complex world easier than ever. Thatâ&#x20AC;&#x2122;s our passion, our pledge and our promise.

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

Š2012 Ally Financial. All rights reserved.

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USED CAR NEWS

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Experian Automotive announced that Toyota grabbed top honors in the third quarter, claiming 14.09 percent of all new vehicles financed.

Findings from Experianâ&#x20AC;&#x2122;s analysis showed market share for nonprime, subprime and deep-subprime automotive loans for new vehicles grew by 13.6 percent and new vehicle leasing grew by 7.53 percent year over year.

The analysis found that loans financed for new vehicles to customers with nonprime, subprime or deep-subprime credit ratings increased to 24.84 percent in the

third quarter from 21.87 in the third quarter of 2011. For used vehicles, the total subprime financing market increased to 54.43 percent from 51.6 percent in the third quarter of 2011.

Findings from the report showed that lenders still are more risk averse than they were prior to the Great Recession. In the third quarter of 2007, the average credit score for a new vehicle loan was 749, compared with 755 in the third quarter of 2012.

Volvo buyers had the highest scores (818), Mitsubishi buyers the lowest (694).

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USED CAR NEWS

" "* "/ 8>H 9A89 b 15

High Profile Lemon Lawyer Runs for Supreme Court MADISON, Wis. (AP) – Noted lemon law attorney Vince Megna of Milwaukee says he is running for the Wisconsin Supreme Court.

Megna tells The Associated Press that he made up his mind and he’s committed to making a serious run for the office no matter how many other candidates get in the race.

Megna made a name for himself by representing consumers who bought faulty vehicles against car manufacturers and dealers. Megna said he has sued General Motors more than 500 times without a single loss.

In recent months Megna has become a vocal critic of Gov. Scott Walker and posted numerous satirical videos online attacking Walker’s policies.

Despite the videos, Megna says he is serious about the Supreme Court race.

Megna said he had nearly 100 volunteers ready to circulate papers on his behalf and he’s already hitting the circuit to speak with groups about his candidacy.

“The out-of-state forces could lose their majority,” Megna said in a statement.

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USED CAR NEWS

PEOPLE IN THE NEWS Online Auction Names President

Just4Dealers Inc. is re-launching its online wholesale auction with fresh leadership.

Just4Dealers appointed Amanda Kent to the position of president. Kent has a 17-year history in the auction industry, spending the last four years in the role of national heavy truck and equip * +! ment manager at Manheim. "+1 â&#x20AC;&#x153;Our commitment to improving the customer experience and expanding our online auction platform lead us to add Amanda Kent as our new president. Amanda shares our views of customer service, she also understands the remarketing industry as it relates to the customers needsâ&#x20AC;?, said Mike Sosnowski, founder of Just4Dealers.

Just4Dealers will conduct sales through the end of the year and continue into the New Year with expectations of weekly sales every Thursday.

Proxy bidding is available around the clock on all uploaded inventory.

Manheim Expands Leadership Team

Manheim has expanded its product development leadership team with new members.

Tony Markese, vice president of marketplace and affiliate management, has a wealth of auction location experience, having previously served as general manager of Manheim Central Florida for several years.

In his new role, Markese will collaborate with industry partners to increase customer access to Manheimâ&#x20AC;&#x2122;s marketplace.

Bonnie Hensler, vice president of product operations, brings to Manheim a strong product marketing background with experience in product launches, messaging and segmentation.

Hensler will be responsible for the development and implementation of comprehensive product operations strategies.

Kris Hart, vice president of product strategy, has extensive experience in the service and gaming industries, previously working for Harrahâ&#x20AC;&#x2122;s Entertainment, the wellknown casino and gaming company. In Hartâ&#x20AC;&#x2122;s new role, she is responsible for working with internal and external stakeholders to evolve and expand Manheimâ&#x20AC;&#x2122;s product roadmap.

Krista Marlatt, senior director of product portfolio management, specializes in evaluating products to ensure they align with customersâ&#x20AC;&#x2122; needs. Previously working for Manheimâ&#x20AC;&#x2122;s sister company, AutoTrader. com, Marlatt will be responsible for analyzing product families to make sure they reinforce Manheimâ&#x20AC;&#x2122;s commitment to enable customers to conduct business anytime, anywhere and in any way they choose.

The auction chain also announced the appointment of Racquel White to the position of vice president of communications and corporate affairs.

In her role, White will lead the efforts to amplify four strategic communications areas: internal, external, executive and corporate social responsibility.

White will report to senior vice president and chief people officer, Lilicia Bailey.

White brings 15 years of strategic communication experience in a variety of sectors to Manheim. Most recently, she served as vice president of internal and leadership communications across North America for The Coca-Cola Company. She held positions of increasing responsibility with Marriott International, the Smithsonian Institute and the Joint Center for Political and Economic Studies.

Consultant Joins Firm

Industry veteran Jay Prassel has joined the Leedom and Associates as a Twenty Group moderator, trainer and consultant.

Prassel, an Illinois resident who will move with his family to Southwest Florida, has worked in the automotive industry for more than 30 years.

He began his career selling vehicles at a large GM dealership, and rose through the ranks and served in every department over the next 16 years until becoming its vice president and general manager.

Prassel then established his own automotive training company, Advantage Training Systems Inc., in the early 1990s to serve the needs of GM dealerships. He transitioned to NCM Associates Inc. in 1997 where he served as a dealership management consultant, Twenty Group moderator, and an instructor for the Used Vehicle Academy.

For the past several years, he has worked with Premier Performance Group LLC. â&#x20AC;&#x153;We are very pleased and excited to have Jay join the group,â&#x20AC;? said Chris Leedom, the firmâ&#x20AC;&#x2122;s founder. â&#x20AC;&#x153;His extensive and extraordinary background in serving the automotive retail community will complement our existing staff add significantly to our bench strength.â&#x20AC;?

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UCN_16.indd 1

12/10/12 12:46 PM

USED CAR NEWS

" "* "/ 8>H 9A89 b 17

RETAIL MARKETS GEORGIA

Larry Mannion, owner, M&M Motors, Hinesville, Ga.: â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve been in business about 40 years. Iâ&#x20AC;&#x2122;ve been in Hinesville about 20-odd years. I was in Savannah, previously. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m a past president of the Georgia IADA and my daughter is a third vice president in the group. â&#x20AC;&#x153;I have two locations. One is downtown and the other is on the outskirts of town. â&#x20AC;&#x153;I usually keep 200 and 225 units between the two stores. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s been slow here lately.

Between the two stores, we sold about 40 to 45 cars last month. Normally, weâ&#x20AC;&#x2122;d sell 80 to 100 cars a month. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re mostly buy-here, pay-here, about 80 to 85 percent. We do some pointof-sale business. â&#x20AC;&#x153;But the biggest part of our business is buy-here, pay-here. â&#x20AC;&#x153;I buy a lot of vehicles on the Internet through Manheim Simulcast sales. I shop at an auction in Savannah, about 30 to 35 minutes away.

â&#x20AC;&#x153;I also shop the auctions in Atlanta and I shop auctions in Florida. Iâ&#x20AC;&#x2122;ll shop auctions from Ft. Lauderdale all the way up to Jacksonville. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s getting tougher to buy cars. If you want to find what youâ&#x20AC;&#x2122;re looking for, you either have to make a trip to auctions or learn to buy (over the Internet). â&#x20AC;&#x153;It took me a long time to go on Simulcast, but Iâ&#x20AC;&#x2122;ve been doing it now for quite a number of years. â&#x20AC;&#x153;I talk to dealers who still havenâ&#x20AC;&#x2122;t bought into it, but I tell them itâ&#x20AC;&#x2122;s the future. Itâ&#x20AC;&#x2122;s all going there. â&#x20AC;&#x153;The average model years we carry are from a 2004 to 2011. â&#x20AC;&#x153;On average, I try to get in units between 70,000 and up to 100,000 miles. I donâ&#x20AC;&#x2122;t wholesale. â&#x20AC;&#x153;I sell all my trades.

So I sell anything from a $2,000 or $3,000 car up to a $30,000 car. â&#x20AC;&#x153;The average retail car is about $12,000. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m selling more cars than trucks and SUVs. I probably carry about 20 trucks, 50 or 60 SUVs and the rest are cars.

Compiled by Jeffrey Bellant â&#x20AC;&#x153;I carry a lot of imports and some highline cars, just not the lower-mileage highlines. They are vehicles I can afford to finance. â&#x20AC;&#x153;It wasnâ&#x20AC;&#x2122;t something I could do when I first started out. â&#x20AC;&#x153;To advertise, we mostly use AutoTrader. We get a lot of calls from that. â&#x20AC;&#x153;We do all the reconditioning ourselves. I have my own shop, but I donâ&#x20AC;&#x2122;t do any retail service. I also get a post-sale inspection on everything I buy at auction. â&#x20AC;&#x153;I just sold a car yesterday.

It was a 2006 BMW 750Li. It had 82,000 miles. We sold it for $28,500.â&#x20AC;?

OREGON

Doug Blizzard, owner, Blizzard Motors Inc., Portland, Ore.: â&#x20AC;&#x153;We have one location.

Iâ&#x20AC;&#x2122;ve been in business for 20 years. â&#x20AC;&#x153;I keep about 35 units on our lot. Weâ&#x20AC;&#x2122;ve increased that amount a little bit from last year. â&#x20AC;&#x153;We try to increase the amount (each year), about four or five units each year. â&#x20AC;&#x153;We get our vehicles from

all over. Weâ&#x20AC;&#x2122;re kind of a niche market so a lot of our inventory finds us. â&#x20AC;&#x153;A lot of stuff weâ&#x20AC;&#x2122;ll get from repeat or referral customers. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re selling about 15 per month. Thatâ&#x20AC;&#x2122;s up from this time last year. â&#x20AC;&#x153;I attribute that to the fact that new-car sales have slowed down. â&#x20AC;&#x153;Plus, you start looking at a new Chevrolet Suburban and it costs $60,000, suddenly a pre-owned Suburban looks pretty inexpensive. â&#x20AC;&#x153;We do both retail and wholesale. â&#x20AC;&#x153;About 50 percent of our business is subprime. â&#x20AC;&#x153;We donâ&#x20AC;&#x2122;t do buy-here, pay-here. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve seen the guidelines for subprime become a little more lenient because thereâ&#x20AC;&#x2122;s more business out there. â&#x20AC;&#x153;Most of the stuff we have is between 50,000 miles to 100,000 miles. â&#x20AC;&#x153;The buying public no longer thinks that a 100,000mile car is dilapidated and done. â&#x20AC;&#x153;Cars are built a lot better

2 % ' + ( . "# % + #& ! " / $ (' (& /#," * 0 "#) *+ (/ ' % $ (($ %#'$+ 2 -* / +#, ' (-* +, * # %#'!- % +-) *+, *+

than they were in the 1960s, 1970s and 1980s. â&#x20AC;&#x153;The model years here are probably 2003 to 2008. â&#x20AC;&#x153;We donâ&#x20AC;&#x2122;t carry any trucks. Most of our stuff is cars and about 30 percent is SUVs. â&#x20AC;&#x153;All of our vehicles are high-end vehicles â&#x20AC;&#x201C; Mercedes, Jaguar, Porsche and BMWs, for example. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s all weâ&#x20AC;&#x2122;ve done for 20 years. â&#x20AC;&#x153;Our average retail price is between $15,000 and $20,000. â&#x20AC;&#x153;We farm out our service work. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s tough to say what the average reconditioning costs are, because every vehicle is different. â&#x20AC;&#x153;But youâ&#x20AC;&#x2122;re probably going to spend a minimum of $800 and a maximum of $2,500. We try to handpick the cars so we can keep our recon costs down. â&#x20AC;&#x153;Outside of our website, weâ&#x20AC;&#x2122;ll advertise with AutoTrader.com, Cars.com, Carsforsale.com and Craigslist. â&#x20AC;&#x153;Recently, we sold a 2006 Acura MDX with 32,000 miles. We got $24,600.â&#x20AC;?

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18 b " "* "/ 8>H 9A89

USED CAR NEWS

WHOLESALE MARKETS KANSAS

Brook Phillips, vice president, Mid America Auto Auction, Wichita, Kan.: “We’ve had the auction since 1982. We’ve been at the present location since 1998.

“We have five lanes. We’re running all of them.

“On average, we’re running right about 500 units.

It’s actually about the same as this time last year.

“Sale percentages are very good.

“Overall, they’ve been equal to this time last year, though the last couple of months have been a little off.

“However, we just had a 65 percent sale (on Dec. 5).

Of course, that was coming off a holiday, so I’d anticipate (strong numbers).

“The numbers have been comparable to last year because of the mild weather we’ve been having.

“It was 70 degrees here during (the last week of November).

“We’re drawing about 240 to 250 dealers in the lanes.

It’s probably down a little

bit from last year.

“I think we’ve seen some dealers go out of business over the last couple of years.

“That’s probably off 10 or 15 percent.

“Business has gotten so tough. We’re working a lot harder to get more penetration. If we weren’t, it might be worse. It might be down to 200 dealers.

“I’m not drawing many out-of-town dealers.

“I’m drawing dealers from a 200- to 250-mile radius, and from western Kansas.

I’m not getting as many Missouri dealers as I was.

“The moods of the newcar dealers are great. But that hasn’t translated down to the smaller dealers.

They’re still having a tough time.

“The problem is the newcar stores are keeping cars they normally wouldn’t keep in the past.

“They would have been auction cars that other dealers could have bought.

“It used to be, for new-car dealers, a car with 75,000 miles was the limit (to what they’d keep).

“Now they’re keeping cars

Compiled by Jeffrey Bellant

with 100,000 miles or more.

“So now, instead of getting 70 to 80 cars a week from new-car dealers, I’m getting 40 or 50.

“Now you’re seeing a whole lot of 140,000 to 160,000 mile cars.

“I hardly have any fleet units, but I do well with Enterprise (damaged units).

I’ll get eight to 10 of their damaged units and maybe 20 or 30 bank repos.

“The rest is all consignment.

“We’ll get about a dozen in-ops and probably another 12 to 20 with significant damage.

“In the regular sale, the average selling price is about $4,500 to $5,000.

That hasn’t fluctuated more than $1,000 over 15 years.

“We’ve always been a strong truck market.

“It doesn’t matter if it’s diesel, four-wheel drives or two-wheel drives.

“It’s just hard to sell cheap cars, though.

“That $800 to $1,200 car is almost impossible to sell “Even the cash-only sellers still want a $1,500 to $2,000 car.”

NEW MEXICO

Ray Vickers, owner, Farmington Auto Auction, Farmington, N.M.: “We opened in November 1994. We just had our 18th anniversary sale.

“We have two lanes, but we just use one. So we’re basically a single-lane sale.

“We’re running about 100 to 150 units a week.

“Those volumes are about the same, or a little higher, than this time last year.

“Our dealer consignment is not that strong. It’s our repossessions and fleet-lease which make up over half of our volumes.

“That mix has been about the same as this time last year.

“We’ll draw between 75 and 100 dealers per sale.

That’s up a little bit. We’ve had a higher attendance.

We’ll draw from New Mexico and southern Colorado.

We also draw a few out of Arizona.

“Business has been tough for dealers, but they’re still buying.

“A recent sale was about 62 percent. So (sales percentages) been in the 60s.

I’m going to say that’s up from this time last year.

“I attribute (the boost) to our GSA sale. We have a GSA contract that started this summer. That sale runs once a month. We’ve been running 150 to 200 of their units every month.

“We also have a simulcast sale, since GSA requires that, so our online activity has also grown. We use AWG. “The GSA provides sedans, like Pontiac G6s and Impalas, along with some sport utilities like Jeeps.

“We also get utility trucks like flatbeds and crew cab four-wheel drives. There is some really nice stuff in there.

“We had our best year ever (in 2012) because of GSA. “They promised us just under 600 cars in 2012, but we ended up having 1,000.

Next year they’re telling us we’ll have about 1,400 for the year.

“For our regular (nonGSA sale), the average price is about $3,200.

“For our GSA sale the average is about $10,000 or $11,000.”

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UCN_18.indd 1

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ACTUAL WHOLESALE AND PROJECTED RESIDUAL VALUES DECEMBER 2012

SOURCE: BLACK BOOK

2011 Domestic Cars Buick LaCrosse CX 4D Sedan Cadillac DTS 4D Sedan Chevrolet Cruze LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 Base 4D Sedan Chrysler 200 Touring 4D Sedan Ford Mustang Base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan Ford Focus SE 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 Cadillac Escalade Base 4D Utility AWD Cadillac SRX Luxury 4D Utility AWD Ford Edge SEL 4D Utility 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 Ram Dakota Bighorn Ext Cab Dodge Grand Caravan Express Wagon Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Flex SEL 4D Utility Jeep Grand Cherokee Laredo 4D Utility 4WD Jeep Wrangler Sahara 2D Utility 4WD BMW X3 XDrive28i 4D SAC

Dec-11 19500 29300 13900 12800 20950 15100 17300 21500 27700 12000 Dec-11 28200 29200 69800 15550 16050 31200 42200 13100 14100 15400 13250 15050 12150 17500 Dec-11 51900 33050 22325 20475 18700 18750 28175 15500 16950 18900 30450 20275 22425 22550 23425 34050

2010 Jun-12 20600 27100 14400 14450 20300 14700 17800 20050 26600 13800 Jun-12 26200 27800 63800 15700 15650 29600 41600 12900 13900 15200 13100 16000 14600 17200 Jun-12 50700 32800 22100 19725 18600 20925 30475 15875 16350 18150 30725 21325 21775 24400 22925 34300

Dec-12 18200 27000 11800 11900 17850 12700 14950 17600 21800 10750 Dec-12 23400 24400 58700 14100 13600 27700 36700 10700 11900 13200 10850 14050 11800 15300 Dec-12 46150 30500 20750 19025 16400 19825 26525 15175 13875 16775 26375 19225 20875 23825 21475 31900

Projected Figures Dec-13 Dec-14 15950 13400 20125 16750 10300 8625 10900 9525 14550 12750 10975 9275 13750 12025 15325 13025 18500 15350 9650 8225 Dec-13 Dec-14 19775 17050 21225 18150 50900 43475 12375 10875 11075 9075 23550 20525 29650 24450 9775 8275 9925 8550 11100 9650 9500 8000 12050 10625 10125 8825 12450 10500 Dec-13 Dec-14 39275 33250 25700 21925 17750 15275 17225 15425 13900 11325 16600 14800 23550 20425 13450 12050 12400 10575 14525 12300 21375 17475 16250 14150 18175 15650 18675 15800 19100 16725 26575 22575

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 Base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan Ford Focus SE 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 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 Cadillac Escalade Base 4D Utility AWD Cadillac SRX Luxury 4D Utility AWD Ford Edge SEL 4D Utility 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 Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Flex SEL 4D Utility Jeep Grand Cherokee Laredo 4D Utility 4WD Jeep Wrangler Sahara 2D Utility 4WD BMW X3 XDrive30i 4D SAV

2009 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 Base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan Ford Focus SE 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 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 Cadillac Escalade Base 4D Utility AWD Cadillac SRX 4D Utility AWD V6 Ford Edge SEL 4D Utility 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 Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Taurus X SEL 4D Utility FWD Jeep Grand Cherokee Laredo 4D Utility 4WD Jeep Wrangler Sahara 2D Utility 4WD BMW X3 XDrive30i 4D SAV

UCN_19.indd 1

Dec-11 12000 18900 7350 10000 13850 8800 12700 12550 19200 9100 Dec-11 22800 21100 57000 12650 10000 23800 29400 9700 11400 12200 10950 12300 9700 12900 Dec-11 37900 21150 16700 17800 13100 15850 23125 12250 11350 14825 15050 16250 15525 15000 18900 26650

Dec-11 18200 23100 8850 11400 14000 11450 14700 19800 23650 10150 Dec-11 25800 25200 65300 14050 11900 27400 37200 11500 12600 13900 11950 13650 11050 14800 Dec-11 45050 30950 18950 18525 16075 16850 25575 13900 13900 15675 18000 18000 20825 17325 20950 30800

Jun-12 17650 19700 9950 12500 15000 12400 15400 17350 22200 12100 Jun-12 23200 23600 58600 14200 12050 26000 37000 11300 12500 13800 11800 14500 12500 14700 Jun-12 42800 30600 18425 18250 15850 19325 26875 14150 14050 15950 19925 18675 19425 18850 21625 29400

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 40450 27800 17975 17525 13975 18350 24100 13175 11500 15300 17675 17350 18500 16775 20150 27400

Projected Figures Dec-13 Dec-14 13400 11250 15450 13100 7175 6125 9475 8150 11900 10250 8225 6525 11500 9900 13025 10950 15300 12475 8250 6900 Dec-13 Dec-14 17075 14250 18575 15775 44300 37600 10925 9450 8800 7250 20000 16825 24725 19600 8425 7050 8550 7575 9650 8725 8350 7000 10500 9125 8700 7550 10700 9075 Dec-13 Dec-14 33200 27950 22125 18175 15100 12925 15450 13750 11300 9100 15175 13325 20600 17475 11550 10200 10200 8400 12125 10125 15000 12400 14375 12425 15900 13600 15250 13275 17075 14800 23475 19825

Jun-12 9900 15200 6950 9000 12700 7850 11600 9650 16800 8350 Jun-12 16300 17400 30200 11600 8500 19400 21600 8150 10250 10950 9600 11900 9350 11900 Jun-12 30650 18600 15075 15700 10775 14550 21525 10825 9300 11950 13250 13550 10975 13625 17700 20900

Dec-12 8250 13800 5800 8000 11600 6400 9700 8200 14150 6700 Dec-12 14600 15600 27900 10500 7050 17600 18600 7450 8900 9600 8100 10100 7750 10200 Dec-12 29800 17050 13400 14575 9200 13225 19000 10125 7950 11000 12125 12700 9500 12075 16750 18750

Projected Figures Dec-13 Dec-14 7300 6300 10500 8850 4825 4075 6675 5400 9925 8250 4875 3800 8475 7175 7350 6150 10525 8650 5450 4275 Dec-13 Dec-14 11625 9400 13300 11100 20375 16075 8150 6825 5575 4475 14400 12150 14850 11700 5750 4650 6425 5500 7600 6325 5850 4800 7850 6625 6550 5525 7775 6225 Dec-13 Dec-14 22000 18000 13350 11000 10675 8275 11900 10125 7250 5525 11150 9625 14500 11700 8800 7625 7400 6050 8400 6600 10000 7900 10475 8950 8225 6700 10575 8675 12650 10525 16225 13625

2008 Jun-12 11600 16800 8150 10550 14200 9500 13300 11650 18650 10150 Jun-12 20600 19700 49900 12850 10050 22600 27000 9600 11450 12250 10700 13150 11300 13100 Jun-12 35700 21200 16375 17400 12525 17125 24275 12425 11675 14150 15325 16250 13300 15950 19550 25150

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 34950 19450 15875 16425 11275 15525 22625 11725 9750 13175 14425 15375 11875 15200 18000 22500

Projected Figures Dec-13 Dec-14 8950 7700 13550 11300 5850 4950 8050 6950 11800 9925 6325 5000 9825 8425 9200 7775 12600 10375 6850 5625 Dec-13 Dec-14 14525 12050 15650 13175 37050 30200 9525 8150 7200 5875 16825 14350 19475 15525 7075 5750 7575 6425 8750 7625 7075 5850 9150 7850 7625 6475 9075 7475 Dec-13 Dec-14 28175 23250 16525 13625 13150 10700 13950 12025 9375 7475 13475 11800 17750 14600 10125 8900 8900 7550 10525 8550 12225 9950 12400 10700 10275 8525 12700 10925 14525 12650 19325 16275

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 Base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan Ford Focus SE 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 Lexus ES 350 4D Sedan Mercedes-Benz E Class E350 4D 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 Cadillac Escalade Base 4D Utility AWD Cadillac SRX 4D Utility AWD V6 Ford Edge SEL 4D Utility 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 SLT Ext Cab Dodge Grand Caravan SE Wagon Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Taurus X SEL 4D Utility FWD Jeep Grand Cherokee Laredo 4D Utility 4WD Jeep Wrangler Sahara 2D Utility 4WD BMW X3 4D SAV 3.0si

Dec-11 10600 16500 6250 8700 12600 7550 10950 10550 17650 8000 Dec-11 17400 18800 32800 11350 8550 20400 23700 8200 10400 11100 9750 11100 8700 11800 Dec-11 32800 18700 15225 16200 11375 14300 21100 10875 9425 12900 13050 14100 12025 13350 17750 21050

12/7/12 11:33 AM

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USED CAR NEWS 9/10/12

12:51 PM

COMPILED BY JEFFREY BELLANT

STUDENTS LEARN IN LANES

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Photo Courtesy of Auction Academy SCHOOLHOUSE BLOCK: Students of the Auction Academy get an education in the lanes at Southern Auto Auction in East Windsor, Conn.

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Students of the Auction Academy’s inaugural class were treated to a behind-the-scenes look at the largest independent auto auction in the country as the group met for its third training session on Oct. 22 and 23 at Southern Auto Auction in East Windsor, Conn. Auction owner Larry Tribble and vice president Garrison Hudkins worked closely with Auction Academy chief operating officer Randall McCathren in developing a two-day curriculum, which provided insights into the detailed preparations and processes used by Southern Auto Auction.

“We thoroughly enjoyed hosting this session of Auction Academy,” Tribble said. “As a second-generation owner of a family business myself, I’m happy to see the next generation embracing our industry with such enthusiasm and dedication. I know many of their parents well, and I’m pleased to see their sons and daughters following in the footsteps of the people who have worked so hard to build successful businesses and a thriving industry.”

Auction Academy’s Next Generation Owner course is a two-year training and development program for the sons and daughters of today’s independent auction owners. It includes 16 students representing 13 independent auctions and one vendor company who will move together as a cohesive class over a two-year curriculum.

Sale Breaks Auction’s Record

Indiana Auto Auction recently posted the results of its $250,000 sale earlier this year.

“We knew we were looking at a fantastic sale, but never thought it would be a record breaking day for us,” said general manager Eric Autenrieth.

Indiana Auto Auction had 626 dealers in attendance and sold more than 600 units, both records for the new owner.

“We would like to thank our customers for coming out to be a part of the big event, as well as the staff at Indiana Auto Auction for their

UCN_20.indd 1

extraordinary efforts for the day,” Autenrieth said.

The day ended with three dealers getting a chance to win $250,000 in a special drawing.

Though no one won the grand prize, they walked away with $2,500 apiece.

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

12/10/12 11:27 AM

USED CAR NEWS

" "* "/ 8>H 9A89 b 21

Disconnected Jottings From Tony Moorby... â&#x20AC;&#x153;Nothing will work unless you do.â&#x20AC;? So said Maya Angelou. That seems particularly Ă propos at the moment. Putting higher taxes on the wealthy or extending the qualifying age for Medicare isnâ&#x20AC;&#x2122;t going to

The burden for government funding of the unemployed will be reduced to what it should be â&#x20AC;&#x201C; caring for those that canâ&#x20AC;&#x2122;t, not those who wonâ&#x20AC;&#x2122;t. Thatâ&#x20AC;&#x2122;s a double win for all. The government gets taxes instead of paying them

Tony Moorby

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

reduce the height of the â&#x20AC;&#x2DC;fiscal cliffâ&#x20AC;&#x2122; to any great degree. All those actions will do is to mollify the political parties that push either stance. These are 10-year programs supposedly to reduce our deficit. The world could end before then.

What we need to do is to put Americans back to work.

This government should have no other agenda than to achieve major employment gains in the next four years.

All those new taxes, across the employment board, will turn the cliff into a little leap.

out â&#x20AC;&#x201C; a dollar earned and a dollar saved. Who knew?

Seriously, work is stimulating all the way from the individual who wears the pride to go to work, to the economy of a fully engaged nation. Political bickering will subside on both sides of the aisle. When Ireland had twenty-some percent unemployment, â&#x20AC;&#x153;The Troublesâ&#x20AC;? abounded at the border between Northern Ireland and the South. When Europe funded the influx of capital â&#x20AC;&#x201C; the Celtic Tiger as it was called â&#x20AC;&#x201C; it put everyone to

work, including immigrants, and unemployment fell to a mere three percent. Fussing and friction between political entities went away â&#x20AC;&#x201C; no one had time for it.

We must recognize that the economy doesnâ&#x20AC;&#x2122;t turn on a dime. President Obama found that out in his last four years. A bit like an ocean liner â&#x20AC;&#x201C; the QE 2 took 22 miles to turn around â&#x20AC;&#x201C; but a kayak can turn on its own axis. That dexterity belongs to the small business owners; the people who can react to immediate market sentiment. My sense is that it doesnâ&#x20AC;&#x2122;t pay to take away incentives from employers by taxing them more heavily. We should be giving tax breaks to enlarge their employment pools. The government could then get its money through the normal, now expanded, workforce.

I was discussing this with a friend and colleague and he put it in a nutshell â&#x20AC;&#x201C; â&#x20AC;&#x2DC;Iâ&#x20AC;&#x2122;ve never been offered a job by a poor person!â&#x20AC;&#x2122; He wasnâ&#x20AC;&#x2122;t denigrating the poor but the point was well made; the economy needs a wealthy (and therefore healthy) segment of employers.

C R O S S WO R D

Maybe going over the cliff would suit this administration â&#x20AC;&#x201C; taxes go up and they can blame it on the Republicans and we slip further into the whirlpool of socialist dependency.

Work is good â&#x20AC;&#x201C; for the soul, for self-worth, for a society that takes pride in itself and its abilities to take care of the (truly) needy, for the luxury of indulging in the arts with museums and galleries, symphony orchestras that are not going broke, parks and recreation places that are a pleasure to walk in, safe too.

For education and funding foundations, for charities paid for by a generous and well-meaning people. In cities, downtown areas are repatriated from the seedy, dying slums into thriving, bustling markets and resi-

dences. A society that will no longer put up with cities that are the breeding grounds for crime and degradation; that can afford to plant flowers where marijuana once flourished.

Socialism can only last until capitalist money runs out. We need to tell the entrepreneurs that itâ&#x20AC;&#x2122;s OK to earn a fabulous living and spread the wealth through honest labor, not form a dole queue and take from a tightening fist.

One more quote, â&#x20AC;&#x153;The best way not to feel hopeless is to get up and do something.

Donâ&#x20AC;&#x2122;t wait for good things to happen to you. If you go out and make some good things happen, you will fill the world with hope, you will fill yourself with hope.â&#x20AC;? Thatâ&#x20AC;&#x2122;s from Barack Obama.

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

Sponsored by INSURANCE AUTO AUCTIONS

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Across 1. Studebaker coupe 4. Mp4-12C maker 9. Sephia maker 10. Classic car started in 1904 12. Nissan auto 13. Accelerates (2 words) 16. Press guy 17. Have the pink slip 18. Maxima maker 22. ____ stop 23. Ford ___ Victoria 25. AMC car from the 50s and 60s

26. Fusion maker 29. Unwanted engine noise 30. Jeep model 33. German auto pioneer 34. Plug-in hybrid electric vehicle 35. In a funk 38. One in Spain 39. Hyundai coupe 42. Brands 43. Portland state 44. Prius and Volt 45. Power source

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32. ____ on the dotted line 35. Japanese specialty food 36. Viper makers 37. Evil or No? 40. Shell out money for 41. ___ god! (teen cry)

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Answers to the 12/3 /12 puzzle M I T S U B I S H I S A A B

O T O R C O A U N D R A A E R T P U G A T T I O M E P O R T A V A T N E D S U E A B L E A N V R R I V E U Y E

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S M A R T L M O S E M B L Y E E O C K R U T A A R O P S C I O N S T L O I A T I O N N S A E H I T O V I V A L P I N E D I N G

Answers to this puzzle in the 1/7/13 issue. Call 1.800.794.0760 for a FREE subscription.

UCN_21.indd 1

12/7/12 2:50 PM

22 b " "* "/ 8> H 9A89

USED CAR NEWS

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January 21 - Tax Season Kick Off

Buy Online. Buy Direct. .com

USED CAR LOT FOR LEASE With bay and office located in Ft. Lauderdale, Fl for lease, established in 1994. Rent under $2,300 per month.

Upcoming Issues

Well, We’ve Got PLENTY of Reasons

TM

FACILITIES FOR SALE/LEASE

BUYERS WHOLESALE BUYER -REP 30 yrs exp. Fl based.

Will travel, references avail.

Call Michael P. 954-445-6589

Indoor VIDEO SALE located at Cone Rd. Proudly featuring: Ford Credit, Progressive, All State, Geico, State Farm, and various Fleet Lease

FREE Breakfast 8:30 am (813) 247-1666 5109 Cone Road Tampa, FL 33619

BUSINESS OPPORTUNITIES

April 1 - Fleet / Lease Focus Deadline Wed., March 20

April 15 - Dealer Management Software Deadline Wed., April 3

May 1 - Data Source Book Deadline Thurs., April 4

May 6 - NABD Convention Deadline Wed., April 24

May 20 - Product Showcase Advertorial Deadline Wed., May 8

June 3 - How to Get a Life Off the Lot Deadline Wed., May 22

TO ADVERTISE PLEASE CALL 1-800-794-0760 EXT. 107

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

Place a 4 line ad today and it will appear in 4 issues for a total cost of $56.00 - $14 for each additional line, plus the ad will appear on our website at no extra charge!

Call Marie Hingst today at 800-794-0760 ext.107 marie@usedcarnews.com

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12/6/12 3:00 PM

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12/6/12 4:02 PM