January 5, 2015
ON THE WEB: Ratings Agency Calls Auto Sector ‘Stable’
Fitch Ratings expects the credit profiles of U.S. auto manufacturers and suppliers to strengthen in 2015 despite slower growth in auto sales. Fitch’s ratings outlook is positive while the overall sector outlook is stable.
Pent-up Demand, Falling Rates Drive Subprime
Falling subprime rates and pent up demand through the recession have driven strong growth in subprime auto loans and leases, although buy-here, pay-here growth has remained relatively even, reports the Center for Financial Services Innovation and Core Innovation Capital.
Small Business Owners Grow More Confident
The NFIB Small Business Optimism Index jumped up 2 points to 98.1, just a tick lower than its historical average before the Great Recession. Expectations for business conditions six months out rose a huge 16 percentage points.
Rush - Dated Material
Manheim Announces President,Partnership Cox Automotive announced that Janet Barnard is taking on the role of president of Manheim North America, effective immediately. Barnard previously served as executive vice president and chief operating officer. In her new role, Barnard will continue to lead the company’s core vehicle auction business that includes 78 operating locations and a team of more than 18,000 employees. “Janet has done a tremendous job of reinforcing Manheim’s position as an industry leader and setting a vision for the company’s long-term success,” said Cox Automotive President Sandy Schwartz. Prior to joining Manheim, Barnard served as senior vice president and general manager for Cox Communications’ Central Region. Prior to that, Barnard served as senior vice president and general manager for other Cox Communications regional business areas, including Northern Virginia, Middle America and Omaha. Barnard joined Cox in
File photo IN THE DRIVER’S SEAT: Janet Barnard accepts a women in technology award during a recent ceremony. In addition to her new role as Manheim’s president, Barnard is active in various technology campaigns.
1988 as the accounting manager for Middle Georgia operations. Cox also announced that DriveTime has selected Manheim and Go Auto Exchange as exclusive remarketing partners. This partnership makes Manheim and Go Auto Ex-
change DriveTime’s primary source for remarketing wholesale inventory through its physical locations, mobile auctions and online. DriveTime operates 122 stores in 47 markets. Manheim and DriveTime have been working together for several years. This
includes the creation of Go Auto Exchange, a new wholesale auction company focused on independent dealers and the low-end vehicle segment, and Manheim’s equity stake in Go Financial. which provides dealers with financing options via NextGear Capital.
Regulators Continue to Turn up Heat on Auto Finance Credit Acceptance Corp. is the latest finance company to face regulatory scrutiny. Credit Acceptance executives announced that they have received a civil investigative subpoena from the U.S. Department of Justice directing the company to produce certain documents relating to subprime automotive finance and related securitization activities. Earlier in December, the company received a civil investigative demand from the Massachusetts attorney general relating to the origination and collection of non-prime auto loans in Massachusetts. More state regulators are following the federal govern-
ment’s lead. Recent press accounts said the New York Department of Financial Services is probing several high profile auto creditors, including Santander, TD Bank and several captives. The New York regulator is said to be looking at their exposure to autos financing, especially subprime financing. American Honda Financial Corp. also recently announced it was facing charges from the Consumer Financial Protection Bureau and the Justice Department for discriminatory credit practices. Honda Financial said the regulators are seeking monetary relief and changes to pricing practices and policies.
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CarMax Experiments with Financing Vehicles Used-car superstore chain CarMax Inc. reported improved performance at its stores in the latest quarter, which ended Nov. 30. Total used vehicle unit sales grew 14 percent and comparable store used unit sales grew 7.4 percent versus the prior year’s third quarter. Comparable store used unit sales benefited from a combination of factors, including our sixth consecutive quarter of growth in customer traffic, as well as improved conversion. The percentage of retail vehicles financed by thirdparty subprime providers (those who purchase financings at a discount), combined with those financed under the the CarMax Auto Finance loan origination test, declined from 17.7 percent in the third quarter of fiscal 2014 to 15.2% in this year’s third quarter. This test program originates loans for customers who typically would be financed by third-party subprime providers. During the quarter, CAF originated $12.3 million of loans in this
test, representing 0.5 percennt of retail unit sales. As of November 30, a total of $56.7 million of loans had been originated in this test. CarMax executives said the test program will continue. Wholesale vehicle unit sales grew 10 percent versus the third quarter of fiscal 2014. Wholesale unit sales primarily benefited from increased appraisal traffic and the growth of the company’s store base. Other sales and revenues increased $17.3 million yearover-year. Extended protection plan (EPP) revenues (which includes extended service plan and guaranteed asset protection revenues) rose $12.9 million versus the prior year’s quarter. Total gross profit increased to $446.6 million. Used vehicle gross profit rose 15.2 percent, primarily driven by the increase in total used unit sales. Used vehicle gross profit per unit rose $23 to $2,172. Wholesale vehicle gross profit increased 14.8 percent versus the prior year’s
quarter, driven by the combination of the increase in wholesale unit sales and an improvement in wholesale vehicle gross profit per unit, which rose $40, to $927. Other gross profit rose 30.9 percent reflecting the improvement in other sales and revenues. SG&A expenses increased 11.3 percent to $316.6 million. The increase primarily reflected the increase in CarMax’s store base since
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the beginning of last year’s same quarter (representing the addition of 20 stores) and higher variable selling costs resulting from the increase in comparable store used unit sales. SG&A per retail unit declined $52 to $2,243, as our comparable store unit sales growth generated overhead leverage. CAF income increased 6.9 percent to $89.7 million, driven by an increase in av-
erage managed receivables, partly offset by a lower total interest margin percentage. Average managed receivables grew 17.9 percen to $8.03 billion as CAF loan originations have continued to grow. The total interest margin, which reflects the spread between interest and fees charged to consumers and our funding costs, declined to 6.4 percent of average managed receivables.
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USED CAR NEWS
NEWS BRIEFS TransUnion Buys Drivers History
TransUnion announced the acquisition of a majority interest in Drivers History, a provider of traffic violations and criminal court data. Although it will retain its operational independence, Drivers History will be expanding its relationship with TransUnionâ€™s insurance business unit for the immediate benefit of both organizations. Financial terms of the deal were not disclosed. In March, TransUnion and Drivers History entered into a strategic relationship to offer the insurance industry a database of driversâ€™ moving violations and other offenses.
AutoTrader.com Teams with DealerRater for Online Reviews
DealerRater has partnered with AutoTrader.com to bring dealership reviews to the car shopping website. Beginning this month, DealerRater reviews and ratings will be featured on AutoTrader.com dealer profile pages. Shoppers on AutoTrader.com will also be able to click a â€œRate & Review This Dealerâ€? button that will direct them to the â€œWrite a Reviewâ€? page on DealerRater.com. Consumers can rate dealers on the criteria of customer service, quality of work, friendliness, price and overall experience. Once written and submitted, the
content is reviewed and verified by DealerRaterâ€™s content integrity team before appearing online. Dealers subscribed to DealerRaterâ€™s Certified Dealer Program as well as non-certified dealers have the ability to display their DealerRater reviews on AutoTrader.com. DealerRater Certified Dealers receive the added benefit of a twoweek reconciliation period for negative reviews when they can communicate with unsatisfied customers before the review is published. After the two-week reconciliation period, the review will go live on DealerRater.com and AutoTrader. com if the review has not been edited or removed by the consumer.
Americaâ€™s Car-Mart Opens Store
Americaâ€™s Car-Mart Inc. announced the opening of its 137th dealership. The dealership is located in Ada, Okla. Ada is the 25th dealership in Oklahoma. Jessica Sizemore will manage the Ada dealership. C R O S S WO R D by Myles Mellor
Chain Buys Harrisburg Auction
Americaâ€™s Auto Auction has acquired Harrisburg Auto Auction in Mechanicsburg, Pa. Lynn Weaver will continue in his role as general manager. The addition of Harrisburg Auto Auction brings Americaâ€™s Auto Auction to 11 locations. Harrisburg Auto Auction has been owned and operated by the Hoynitski family since its founding in 1982 by Stan Hoynitski.
IAA Opens Two Facilities
Insurance Auto Auctions Inc. announced the expansion of two branches in Tulsa, Okla., and
Des Moines, Iowa. Both locations add to IAAâ€™s capacity to service customers in key markets. IAAâ€™s Tulsa facility is located at 5311 W. 46th Street S. and will now utilize 24 acres with additional expansion opportunities. There is a fully functioning auction facility that includes a 10,000-square-foot building, and recycled asphalt was used for the top surface of the outside vehicle storage area in keeping with IAAâ€™s environmentally responsible culture. The Des Moines branch, located at 3277 Ute Ave. in nearby Waukee, Iowa, will now occupy 24 acres.
Published By General Media LLC USED CAR NEWS (ISSN 1555-7413) is published at 24114 Harper, St. Clair Shores, MI 48080 Phone: 586-772-5200 or 800-794-0760 Fax: 586-772-9400 www.usedcarnews.com Charles M. Thomas Founder (1947-2002) Lynda R. Thomas, Publisher Colleen Fitzgerald, General Manager Editorial: Ted Craig, Managing Editor Jeffrey Bellant, Staff Writer Contributing Writers: Ed Fitzgerald, Jenny King, Sheila McGrath Columnist: Tony Moorby Advertising: Shannon Colby, Account Manager Megan Frump, Account Manager Marie Hingst, Account Manager Circulation: Helen Thomas Production: Josie Godlewski, Media Manager Tim Montie, Graphic Designer â€”â€”â€”
Used Car News is published the first and third Monday of each month. Subscribers: We print advertisements as sent to us by auctions and other advertisers. It is not possible to verify the correctness of listed vehicles in auction ads. Most lists are partial and all lists are subject to last minute changes by auto auctions, so before travelling a long distance for a particular auto auction event, contact the auction by telephone for a fax of vehicles in the sale. Used Car News assumes no guarantees or liabilities concerning the accuracy of any advertisements. All Rights Reserved. Reproduction in any form is prohibited without the written consent of the publisher. É&#x; É&#x; É&#x; Please submit clear, legible copy. Payments from first time advertisers must accompany the insertion order. Distribution is guaranteed by U.S. Postal Carriers. The advertising reservation deadline is 5:00 p.m. Friday, 10 days prior to the issue date. Camera ready ads must be received by noon on Monday prior to the issue date.
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12/20/14 7:24 AM
Dealer Takes Spot on Board )6(&%*4$06/54
Stan Norton By Jeffrey Bellant
Stan Norton of City Auto Sales in Murfreesboro, Tenn., earned a special distinction as the first used-car dealer named to the stateâ€™s Motor Vehicle Commission in December. Tennessee Gov. Bill Haslam appointed Norton to the post and Bill Giannini of the Department of Commerce and Insurance made the announcement. â€œGov. Haslam made a fantastic choice by picking Stan Norton as the first official independent motor vehicle dealer on the Tennessee Motor Vehicle Commission,â€? Giannini said. â€œCity Auto Sales is an innovative industry leader due in large part to Stan Nortonâ€™s leadership and vision. He will be a tremendous asset to the commission, and we are grateful for his willingness to serve.â€? Norton is a principal partner of City Auto Sales where he has been for 13 years. â€œIâ€™ve been in the car business for 28 years,â€? Norton said. â€œSo Iâ€™ve got a lot of experience in everything from compliance to customer service and (legislation). â€œThere are 3,000 independents in
Tennessee and I feel very capable and confident in representing them. Iâ€™m glad we finally have a voice on the board. It only takes one voice to plant a seed to get an idea going.â€? He said the challenge in his new role is focusing on how the rules apply to dealers, as opposed to making law. â€œYou may understand the rules, but how you sit on the board and apply those rules is a whole other thing,â€? Norton said. â€œYou can have your own opinion, but itâ€™s all about what the statute says.â€? Although heâ€™s an independent dealer, Norton also serves on the board of the Tennessee Automotive Association, which represents newcar dealers. â€œIâ€™m the first independent on the TAA board as well,â€? he said. Norton hit the ground running with two hearings in December for the Motor Vehicle Commission, one of which involved Teslaâ€™s efforts to get licensed to sell cars in Tennessee. Darryl Noble, executive director of the Tennessee Independent Automobile Dealers Association, said Nortonâ€™s appointment is good for independents. â€œFor the used-car industry, this is something thatâ€™s been needed for a long time,â€? he said. Noble said heâ€™s been pleased with the work the commission has done, but itâ€™s good for the stateâ€™s used-car dealers to know they have representation on the commission. The Tennessee Automotive Association, representing new-car dealers, and the Tennessee IADA lobbied together on Nortonâ€™s behalf, Noble said. â€œI want to credit Bob Weaver (executive vice president of TAA), who was instrumental in working with us to make this happen,â€? Noble said.
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Carfax Earns Workplace Award Carfax has achieved distinction from its employees as one of the â€˜Best Places to Workâ€™ in the nation for 2015, according to Glassdoor. Carfax is one of only 50 smallmedium U.S. businesses to earn the Glassdoor Employeesâ€™ Choice Award. Carfax consistently ranks in the top two percent of U.S. companies for employee satisfaction. Members of Team Carfax take full advantage of a work environment that promotes socialization and collaboration, as well as a positive work-life balance. For example, employees often conduct meetings seated on beanbag chairs, enjoy a generous paid
leave and holiday schedule, and compete in fitness-oriented and team building outings together. Team Carfax also shares in the success of individual departments and the company. In addition to the award from Glassdoor, the firm has been named as one of the â€˜Best Places to Work in Virginiaâ€™ by Virginia Business for the fourth straight year. The company also won the â€˜Best Place to Workâ€? in 2011 from Inside Columbiaâ€™s CEO magazine and has been voted a â€˜Best Place to Workâ€™ by The Washington Post and The Washingtonian. Carfax was founded in Columbia, Mo., and is headquartered in northern Virginia.
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Court Exempts Auto Store ST. PAUL, Minn. (AP) – A federal judge says a Hastings auto dealership can’t be forced to provide employees with health insurance that covers certain forms of birth control. Citing a precedent the U.S. Supreme Court set this summer, U.S. District Judge Paul Magnuson ruled that Douglas Erickson, the owner of Hastings Ford and Hastings Chrysler Center, can’t be required to provide coverage that violates his religious beliefs.
Erickson says contraceptives that prevent a fertilized egg from being implanted in the uterus violate his belief that life begins at conception. It’s the latest in a string of court decisions across the country involving family-owned businesses that have sued to become exempt from the so-called contraceptive mandate in the federal Affordable Care Act because of their religious beliefs. Planned Parenthood is criticizing the decision.
More States Add EV Charging During the past few years, several models of plug-in electric vehicles (PEVs), including battery electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs), have been introduced in the light-duty vehicle market. PEVs are limited by driving range, which is related to battery capacity, and can usually travel between 60 and 200 miles before recharging. Therefore, charging infrastructure is crucial to the success of these kinds of vehicles. To address this issue, states have established plans to promote the development of infrastructure
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through financial incentives for the building of new public and private recharging facilities. In 2008, Washington and Oregon established plans to facilitate PEV travel by installing recharging stations at convenient intervals on major travel corridors, including along Interstate 5, the main north-south highway that runs from Canada to Mexico. Each station contains one 480volt direct current (DC) fast charger and one 240-volt Level 2 charger. Fast chargers take 15 to 30 minutes to charge a vehicle’s battery, while Level 2 chargers take about 4 hours.
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Auto Credit Set for Growth Despite Default Rise
Auto credit will grow in 2015, with more financing for subprime consumers as defaults remain relatively low. TransUnion’s annual auto loan forecast calls for auto loan debt to continue to rise to $18,244 at the end of 2015. This would mark 19 consecutive quarters of increases since the first quarter of 2011, when auto loan debt per borrower stood at $14,954. “We expect the auto loan market to continue to perform exceptionally well in 2015, with more sales leading to continued increases in auto loan debt per borrower as the national portfolio gets younger on average,” said Peter Turek, automotive vice president in TransUnion’s financial services business unit. “We anticipate the economy to continue to improve next year, with a better employment picture helping the auto industry. While the auto loan delinquency rate has slowly risen to a point where it will be above 2010 levels, we are still far off the peaks observed in 2008 and 2009 when delinquencies were more than 30 basis points higher.” The TransUnion forecast calls for the national auto loan delinquency rate (the ratio of borrowers 60 or more days past due) to end 2014 at
1.2 percent, and increase slightly to 1.27 percent at the end of 2015. Delinquency levels for subprime borrowers have grown from 4.2 percent in the third quarter of 2012 to 4.5 percent in the third quarter of 2013 to 5.3 percent in the third quarter of 2014. However, the contribution of this segment to the overall delinquency rate has been muted because their share has remained between 14 percent and 15 percent during this timeframe. Subprime share of balances had peaked in 2009 at just over 22 percent. “The auto loan market has been especially strong for lenders, as much of the growth observed in the last few years has come from prime or better risk tiers,” Turek said. “There is room for growth in the subprime sector as evidenced by more competition. “Prior to the recession the percent of subprime auto balances were nearly 5 percent higher than they are now.” On a state level, auto loan delinquency rates are expected to rise in 38 states. Auto loan debt is expected to rise in every state and the District of Columbia.
Auto Loan Delinquency Rate to Marginally Increase in 2015 Debt Levels to Continue Rising Trend
60-Day National Auto Loan Delinquency Rate (Q4 2014 and Q4 2015 include projections) 1.07%
Highest/Lowest Auto Loan Delinquency States
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Highest Lowest Oregon 0.62%
Rhode Island $14,243
Note: Q4 2014 also is a projected number as the quarter has not yet ended.
Highest Lowest Michigan $14,814
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PAGE 8 - FORECAST
FRANCHISE DEALERS WILL SELL MORE USED CARS The exact number of used cars sold in the U.S. proves a hard number to track, although all analysts agree it should finish next year higher. One category is well documented and that is certified pre-owned vehicles. CPO is on track to set a sales record for 2014 and should top that number this year. That’s good news for les-
sors, as the demand for CPO units will offset much of the increase in off-lease supply. Franchise dealers are buying up more used cars in general, said Alec Gutierrez, senior market analyst of automotive insights for Kelley Blue Book. The standalone used-car stores being launched by Asbury and Sonic will only add to this demand.
NO WORRIES ABOUT THE ECONOMY, MAYBE What worries Manheim chief economist Tom Webb the most about today’s economy is how little there is to worry about. Unemployment and energy prices are down. The dollar is strong. And business leaders from large corporations to small businesses have a positive outlook for 2015. Still, many consumers, especially low-income con-
USED CARS PRICES WILL SOFTEN, WON’T COLLAPSE Some Wall Street analysts are looking at the growing number of off-lease units and trade-ins and predict a collapse in used-car prices. Industry insiders see moderation far short of this doomsday scenario. Kontos said the talk of a flood of off-lease units fails to reflect the way those leases were generated. While they have grown to a higher level in the past few years, that change was gradual. “It’s not as if new-car sales have a V-shaped recovery,”
Kontos said. The market today differs from that of 10 years ago, however. Kontos said dealers today operate with a just-in-time mindset, using inventory management systems to stock units that turn quickly and online auctions to obtain them. Gutierrez said prices for one- to three-year-old units will be flat. Four- to six-yearold units will remain scarce, so prices should hold up for these, as long as credit remains available.
One of the biggest effects of higher off-lease volumes will be on the newcar side as lessors cut back on originations as residuals moderate. Spina said this is especially true of the captives that only recently entered leasing. Kontos worries about how consignors in general will react to lower prices at auction. He said there will be a temptation to seek new alternatives rather than accept fluctuations in the market.
sumers, continue to struggle even as the overall economy improves and wealthier consumers prosper, said Joe Spina, Edmunds.com director of remarketing. This is seen in used sales, where the more expensive certified units make up a larger percentage of overall sales. This means an economic setback could cause more problems than the overall numbers suggest.
LOW GAS PRICES WON’T HURT COMPACTS; OTHER FACTORS WILL Few people thought in 2008 that the conversation would ever focus around gas prices dropping to the $2 mark. The effect of gas prices is psychological in many ways, said Tom Kontos, ADESA’s executive vice president of industry analysis. They play a role in consumers’ thinking because they see the price as they drive to work and hear about it on the news. Many casual observers expect consumers to move from small cars to SUVs. There is less substitution among consumers than is sometimes simply stated. “Not everybody looking for a Civic is going to look for a truck,” said Cars.com chief analyst Jesse Toprak. Consumers are more likely to move up in the same cate-
gory. So, a Civic buyer would move up to an Accord. The opposite occurred when gas prices shot up in 2008, Toprak said. The biggest drag on compacts will be supply rather than demand, Kontos said. Manufacturers brought a lot more models to market when gas prices rose in 2008. Spina selects compact SUVs as a segment that should do well next year. They’ll benefit from lower gas prices and a good mix of units coming into the used market. Hoffer expects buy-here, pay-here dealers to benefit the most from lower gas prices for a number of reasons. One is that they can stock a wider array of vehicles as the cost to operate them will be lower.
INTEREST RATES, INCENTIVES WILL RISE, BUT NOT HIGH ENOUGH TO HURT The Federal Reserve should start raising rates in the middle of next year, but they’ll likely raise them slowly and are starting at an extremely low level. “Given where rates are today, that’s not a major item,” Webb said. The situation in the rest of the world remains less certain. The U.S. will increase rates at the same time other countries are lowering theirs. Higher interest rates mean incentives are less likely to
rise, said George Hoffer, an economics professor at the University of Richmond. Incentives currently cost manufacturers very little, Hoffer said, because their borrowing costs are so low. There is little motivation to boost incentives even with slower growth of new-car sales due to the current United Auto Workers’ contract. Manufacturers are no longer pushing inventory to dealers. “Before, since you already paid for the labor to build the
car, you might as well build the car,” Hoffer said. Incentives overall might rise little, but Spina sees differences among the segments. For example, there might be more incentive dollars for compacts and alternative-fuel vehicles to offset the effect of lower gas prices. Webb sees the yen as the biggest wildcard for the auto industry. A weakening yen could spark increased competition in the newcar market.
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Carâ€™s Future Lies in Mobility By Jenny King
PLYMOUTH, Mich. â€“ With annual global new car sales projected to reach 100 million units by 2020, and over one billion vehicles already on the road, where do we go from here? Bloomberg News reporters Jeff Green and Keith Naughton suggest solutions to increasing traffic gridlock, lack of parking and serious air pollution include automated cars that come when they are called. Car ownership, they told members of the Detroit Press Club and Women in Communications, may decline in the U.S., even as sales in China continue to outpace other markets. The migration to congested megacities will take a toll on sales. There are predictions, they said, that the current rates of growth will decline as problems with pollution, gridlock and parking increase. â€œGridlock is more than just frustrating,â€? Naughton said. â€œIt affects hospitals, it prevents trucks from delivering food and water; it freezes society.â€? Ride sharing and ownership sharing are likely to grow in the next few years. Another solution that seems futuristic but isnâ€™t really that far away are autonomous cars,
Naughton said. â€œCadillac said they are going to have one on the road in a few years,â€? he said. Mercedes-Benz and BMW also are ready with next-generation vehicles. The autonomous car, he said, will pick you up and take you where you want to go. You will not own the car. They could move like schools of fish, making transportation safer and more efficient. Car companies should stop thinking of themselves solely as car manufacturers and more as mobility solutions providers, the pair said. They will have to find ways to monetize other mobility solutions. Millennials -are shying away from the expense and inconvenience of owning a car, opting for the Uber approach of calling for a ride when itâ€™s needed and letting someone else do the driving, Green said. A growing number of young adults - as many as 30 percent - do not even have a driverâ€™s license. â€œIn major cities like Washington, D.C., Baltimore, San Francisco and Boston, 30 percent of households donâ€™t have a car,â€? Green said. â€œThereâ€™s a huge seismic shift coming,â€? Naughton said, â€œand itâ€™s not the economy.â€? The automakers need to be aware of this, he said.
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FTC Sues Dealers for Ads The Federal Trade Commission is taking action against two auto dealer groups operating in five states with more than two dozen retail stores for civil penalties for violations of FTC administrative orders, which prohibit them from deceptively advertising the cost of buying or leasing a car. Billion Auto, a chain of 20 familyowned automobile dealerships in Iowa, Montana and South Dakota, and a family-controlled advertising company, Nichols Media Inc., have agreed to settle charges that they violated a 2012 FTC administrative order. That order prohibits Billion Auto, and any companies in active participation with it, from misrepresenting material costs and terms of vehicle finance and lease offers and requires specific disclosures, as mandated by the Truth in Lending Act (TILA) and Regulation Z, and the Consumer Leasing Act (CLA) and Regulation M. The Billion Auto defendants have agreed to pay $360,000 in civil penalties to settle the FTCâ€™s charges. According to the complaint against Billion and Nichols, the dealerships and advertising company violated the 2012 FTC administrative order by frequently focusing on only a few attractive terms in their ads while hiding others in fine print, through
distracting visuals, or with rapidfire audio delivery. For example, some dealership ads promoted low monthly payments or attractive annual percentage rates and finance periods, while concealing other material items, such as low payments were for leases, not sales; major limits existed on who could qualify for discounts; and offers often included significant added costs. In a separate action seeking civil penalties, the FTC has charged Ramey Motors Inc., and three affiliated dealerships, in several locations in Virginia and West Virginia, with violating a similar 2012 FTC administrative order. Among other violations, Ramey Motorsâ€™ ads allegedly misrepresented the costs of financing or leasing a vehicle by concealing important terms of the offer, such as a requirement to make a substantial down payment. The complaint also charges Ramey Motors with failing to make credit disclosures clearly and conspicuously, as required by the TILA. The FTC also alleges that the auto dealer group failed to retain and produce appropriate records to the commission to substantiate its offers. Ramey Motors and its affiliates are subject to $16,000 in civil penalties for each alleged violation of the FTC administrative order.
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Subaru, the Subaru logo, and Subaru Motors Finance are trademarks of Subaru of America, Inc. (â€œSubaruâ€?) and any use by Chase Bank USA, N.A. (â€œChase USAâ€?) and JPMorgan Chase Bank, N.A. (â€œChaseâ€?) is under license. Retail / Loan accounts are owned by either Chase or Chase USA and lease accounts are owned by Chase. 2 Jaguar and Land Rover, their respective logos, and the financial group names (Jaguar Financial Group and Land Rover Financial Group) are trademarks of Jaguar and/or Land Rover and any use by Chase is under license. Retail/Loan and lease accounts are owned by Chase. 3 The tradename â€œMazda Capital Servicesâ€? as well as the Mazda and Mazda Capital Services logos are owned by Mazda Motor Corporation or its affiliates and are licensed to Chase. Retail/Loan and lease accounts are owned by Chase. ÂŠ 2014 JPMorgan Chase Bank, N.A. Member FDIC. All rights reserved. (14-221) 06/14 1
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12/18/14 4:15 PM
01 SvNt_UCN-JAN 2015Leadership.pdf
12/17/14 9:56 AM
Survey Names Spark Ugliest
DEALERSHIP SERVICES AVAILABLE
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The Chevrolet Spark EV was ranked the ugliest car in a survey by Carinsurance.com. Respondents gave the following as reasons why people would buy a Spark EV: The No. 1 reson survey respondents gave for why people would drive an ugly car was the drivers wanted to be different. Nine percent of respondents have declined a ride because the driverâ€™s car was too ugly â€“ and more men (14 percent) than women (5 percent) have refused a ride in a grimacemobile. But men are more likely to buy an ewwww-evoking car if it means saving money. Forty-one percent of drivers surveyed said they would buy an ugly car if it was less expensive than others on their list, and 45 percent of men, compared to 36 percent of women, said theyâ€™d do so.
When a friend or relative buys a frightful car, the majority of those surveyed said theyâ€™d respond diplomatically, although twice as many men as women said theyâ€™d be blunt about their opinion. The rest of the top ten were: Ć€É&#x;É&#x;É&#x;#É&#x;)/&É&#x; Ć€É&#x;É&#x;É&#x;#.É&#x;ĹľĹ°Ĺ° É&#x; Ć€É&#x;É&#x;É&#x; É&#x;#ĹłÉ&#x; Ć€É&#x;É&#x;É&#x; #.-/#-"#É&#x; #,!É&#x; Ć€É&#x;É&#x;É&#x;)3).É&#x;Ĺ´/((,É&#x; Ć€É&#x;É&#x;É&#x; #.-/#-"#É&#x;/.&(,É&#x; Ć€É&#x;É&#x;É&#x; *É&#x;",)%É&#x; Ć€É&#x;É&#x;É&#x;)(É&#x;),É&#x;&/!Ć?#(É&#x;3,# Ć€É&#x;É&#x;É&#x; É&#x;#Ĺ¸ &&É&#x; /.É&#x; ."É&#x; É&#x; #ĹłÉ&#x; (É&#x; #Ĺ¸É&#x; ')els in the survey cost well below the average new car price of $33,754 as ,*),.É&#x; 3É&#x; &&3É&#x; &/É&#x; ))%É&#x; (lysts. For example, the Spark EV is ĆŞĹąĹšĹťĹšĹšĹľĹťÉ&#x;."É&#x;#É&#x;)/&É&#x;#-É&#x;ĆŞĹąĹľĹťĹ´ĹšĹľĹťÉ&#x;."É&#x; #.É&#x;ĹľĹ°Ĺ° É&#x;#-É&#x;ĆŞĹąĹšĹťĹšĹ°Ĺ°É&#x;(É&#x;."É&#x; #,!É&#x; is $12,995.
Senate Confirms NHTSA Chief É&#x; Ć˜Ć™É&#x; Ć‘É&#x; "É&#x; (ate confirmed a new administrator to lead the governmentâ€™s auto safety agency, which faces complaints that regulators bungled two high-profile recalls involving faulty ignition switches and exploding air bags. ,%É&#x; )-%#(ĹťÉ&#x; ĹľĹšĹťÉ&#x; É&#x; &#(!É&#x; expert on human fatigue, was approved by voice vote to head the .#)(&É&#x; #!"13É&#x; ,ĹŹÉ&#x; .3É&#x; '#(#-.,.#)(ĹťÉ&#x; É&#x; (!&.É&#x; /.É&#x; critically important agency that is widely considered to be understaffed and underfunded. The previous administrator, David Strick&(ĹťÉ&#x;& .É&#x;#(É&#x; (/,3Ĺş Rosekind is currently a member of the National Transportation Safety Board, which investigates transportation accidents, and has led seven major investigations. While at the board, he persuaded fellow board members to make a controversial recommendation that states lower
the blood alcohol limit for drivers ,)'É&#x;Ĺ°ĹşĹ°Ĺ¸É&#x;.)É&#x;Ĺ°ĹşĹ°ĹľĹşÉ&#x;"É&#x;&)1,É&#x;#(.)2#cation threshold would bring the U.S. more in line with other countries, but is strongly opposed by the alcohol, restaurant and entertainment industries. So far, no state has adopted the recommendation. The biggest issue facing Rosekind at the agency will be revitalizing its oversight of auto recalls because ) É&#x; - .3É&#x; .-ĹşÉ&#x; 1'%,-É&#x; )'plain the agency is neither feared nor respected by the auto industry. Rosekind has a doctoral degree in psychology from Yale University and is a former director of Stan),É&#x; (#0,-#.3Ć‰-É&#x; (.,É&#x; ),É&#x; /'(É&#x; &*É&#x; -,"ĹşÉ&#x; (É&#x; ."É&#x; ĹąĹšĹšĹ°-ĹťÉ&#x; he conducted ground-breaking research of airline pilots and how they were affected by lack of sleep. É&#x; ,.É&#x; &,.(--É&#x; )&/.#)(-ĹťÉ&#x; É&#x; consulting firm on fatigue issues, #(É&#x;ĹąĹšĹšĹ¸Ĺş
12/19/14 9:19 AM
12/17/14 9:58 AM
RETAIL MARKETS DELAWARE
Rich Mason, president, Colonial Motors, Smyrna, Del.: “I’ve been in business 20 years. I have two locations, one in Smyrna and one in Camden, Del. They’re about 20 miles apart. The stores mirror each other. The only difference is that we have a repair shop in Smyrna. “We roughly keep 140 vehicles in inventory. (In 2013), we carried more than 200. I think cars were harder to buy in 2013, so we actually would buy more. We’d buy pretty much anything that we could get for the right price. Now we’re actually being a little more choosey and managing our inventory better. “We’re selling about 60 per month. That’s about the same as 2013, (even with the smaller inventory). “We do about 25 percent buy-here, pay-here. We also have two or three subprime lenders that we work with closely. We also offer traditional financing, starting out at about 2 percent. “The average down pay-
ment on a buy-here, payhere deal is probably $1,000. We try to keep the (contracts) under two years. “The average retail price is roughly in the $7,000 to $8,000 range. We try to buy a lot of trucks and sport utility vehicles. The average model year would be a 2007 or 2008. “On mileage, we try to stay under 120,000. Our sweet spot is anywhere between 80,000 and 120,000, if we can find them there. “We carry more domestics than imports. It’s probably 60/40. “Roughly, we’ll spend in the $400 to $600 range for reconditioning. The recon costs have actually come down a bit from 2013. It seems like we’re able to purchase a better car in the past year. Our service shop has three bays and three techs. We just service our own cars. “We have a website. We do online advertising through AutoTrader.com. We do some cable ads and some radio ads. That’s (the same mix) as last year.
:gehad]\ÛZqÛA]^^j]qÛ9]ddYfl “Pickup trucks always work well for us. Finding them is the trick. “We just sold a 2009 Chrysler 300. It had 82,000 miles. We got $13,900 for that. “I think things are improving slowly. It seems like the new-car guys are doing pretty well. So normally, there’s a trickle-down effect there.”
Jason Hawthorne, coowner/manager, Sam’s Used Trucks & Cars, Winnsboro, La.: “We’ve been here about 20 years in our one location. “On average, we probably keep 75 to 80 vehicles (in inventory). “Our sales are down some, but I’d say we’re averaging 15 to 20 sales per month. “The economy here is down from what it used to be, but we’re starting to stabilize. “I mainly buy from the auctions. I would say 10 percent of our inventory comes from trade-ins. “We do retail, subprime and buy-here, pay-here. I’m
going to say 50 percent buyhere, pay-here/subprime and then 50 percent retail. Overall, it’s the same as last year, except that sales are down a little bit. “The average down payment (on buy-here, payhere) is about $2,000. I want to say the average term length is 30 months. “Average retail price here is about $12,000 to $15,000. “The average model year is about a 2008 or 2009. The average mileage is between 80,000 and 90,000. “It’s more of a challenge getting the right car at auction. You have to search out to find the good, clean cars. You have to travel further and go to more auctions to get the same amount of inventory. That’s what’s hurting me right now. “I carry more trucks and SUVs during the summer and I carry more cars during tax time. I’ll say we carry about 40 percent trucks, 20 percent SUVs and the rest would be cars. “It’s about 50/50 domestics and imports. “We sell a lot of diesels
here because we have a lot of farmers in our market. “We’re spending an average of $300 to $500 to get vehicles ready for sale. That’s a little bit higher than last year. That’s because dealers are bringing cars to auction with missing hubcaps or needing window regulators or having hanging headliners. They used to fix that before bringing them to auction. But with the (shortage) of inventory, they don’t have to spend money because people are buying them anyway. People are still fighting over it. “We own a service center, a mobile quick lube and a tire center. “For advertising, we do radio and newspaper. We have done television in the past, but I didn’t do anything during the last quarter of 2014. They had so many campaign ads and so little space that they jacked the price up. So we laid off of that.” “I sold a 2007 Nissan Armada recently. It had 156,000 miles We got $9,800 for it.”
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12/18/14 4:17 PM
WHOLESALE MARKETS GEORGIA
Corey Sanford, general manager, America’s Auto Auction – Atlanta, Cartersville, Ga.: “We first opened (as an independent) in October 2003. America’s Auto Auction Inc. purchased the auction on April 1, 2012. “We’ve had the best year we’ve ever had. It’s gotten better every year. America’s Auto Auction Inc. has been amazing to work with. “We have just four lanes. We run a two-lane Tuesday night sale that’s open to the public and a fourlane dealer sale on Fridays. The majority of (bidders) at the public sale are dealers, though. “In our dealer sale, we consistently run about 800. It’s up a little. We also have a twice-a-month in-op sale. On those days we’ll run a total of 1,000 (units). “During the month of November and into December, we’ve had sales percentages as high as 64 percent and as low as 57 percent. “Seventy-five percent of our volume is dealer con-
signment and 25 percent fleet-lease-repossessions. Some of our commercial consignors include CNAC, Element (formerly PHH), Title Max and Coastal Credit. We have about 40 smaller companies that make up our fleet-lease-repos. “Fleet-lease volumes are steady and new-car trades are up. We don’t allow our dealer consignment is to go down. A dealer like Cobb County Toyota was running 25 a week in 2013 and they (were) running 45 a week by the end of 2014. “We’ve been averaging about 480 bidders. “The number of bidders in the lanes is up because of some of the new sellers we have. “The average price (in December) was about $4,400. It was $4,100 in 2013. What do I atttribute the increase to? Well, we picked up the Rick Case Automotive Group, a huge dealership in Georgia. They run 120 cars every other Friday and they sell 98 percent. That’s over 200 cars-a-month sold from one dealer. That’s a big deal. We run those vehicles by
Compiled by Jeffrey Bellant themselves in one lane an hour before our regular sale every other week. “With the gas prices going down (in December), business is picking up for dealers. “I’m looking to grow in 2015. The future is bright.”
Trent Long, general manager, Airport Auto Auction, Louisville, Tenn.: “We’ve been in business since 1981. We have six lanes and we’re running six lanes. “During an average sale, we’re running about 300 (units). “Sales percentages for 2014 were at 69 percent in the middle of December. Our percentage sold in 2013 was 66 percent. Total volume in 2014 was up 2 percent compared to 2013. “We’re bringing in, on average, about 250 to 260 buyers. They’re coming from Georgia, Alabama and Kentucky. A few are coming out of South Carolina and North Carolina. “Their moods are up from
(2013). They definitely have a lot more positive outlook than they did (in 2013). “They’re all trying to figure out the tax season game. They all seem to be in a better frame of mind for this tax season as compared to last tax season. Last (tax season), it seemed early on they kind of had their hands in their pockets, like they didn’t know what they were going to do. Everyone now seems to have a game plan. “Our volumes are 85 percent dealer consignment and 15 percent lease/repos. The amount of lease/repo climbed in 2014 compared to 2013. So we’re primarily new-car dealer consignment. We’re running cars from 12 to 15 new-car dealerships at auction. “We also run in-operable vehicles. About 15 - 20 would be a good average. “The (commercial consigners) and new-car dealers will also consign things like boats, four-wheelers and motorcycles, but we don’t break those out as a special sale. “Our online system is AWG. (Online activity) is
growing. You can see that grow month by month. It just seems like there are fewer phone calls from dealers asking us how to use it. “The average price (on the block) is about $4,500, which is a little bit up. But this includes all units, including in-op units and $500 and below. So if you take out the in-op/$500and-below units, it would be a lot higher. “Late-model stuff is going up. But I’ve even noticed (very cheap) stuff has jumped and I don’t know if that’s because of tax season or not. I haven’t looked at metal prices. Usually when junk cars start climbing, it’s due to metal prices. “During (the last part of November and into December) that $5,000 to $8,000 car has really been (selling). It doesn’t necessarily have to do with the type of car – SUV or a smaller gas-saver – it’s more about the price range. Talking to the retail dealers, the sales of larger items in December were already (increasing) because of gas prices.”
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12/18/14 4:06 PM
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CarMax Inc. announced the promotion of Jon Daniels to senior vice president, CarMax Auto Finance. In assuming responsibility for CAF, Daniels succeeds Angie Chattin, who is retiring. Chattin will work with CarMax Agf in a consulting capacity. ;Yfa]dk Daniels joined CAF in 2008 as vice president, risk and analytics. He has extensive credit and banking experience from HSBC and Metris, where he worked prior to joining CarMax. Daniels earned his bachelor’s degree in mathematics from Flagler College and his master’s degree in operations research from the University of Kentucky. CarMax also announced the 12 winners of The CarMax Foundation’s fifth annual CarMax Cares Community Service Award. Associates across the country were nominated by their co-workers for their personal volunteer efforts and leadership in community giving. Winners were honored at the company’s largest associate recognition event of the year in Las Vegas. Each winner selected a nonprofit organization to receive a $5,000 grant on their behalf from The CarMax Foundation. The winners are: Jamie Abbott; assistant business office manager; Franklin, Tenn. Barbara Bean; business office associate; San Antonio, Texas Debbie Edwards; manager, talent management; Richmond, Va. Mike Full; sales manager; Frederick, Md. Velma Goodwater; sales manager; Federal Heights, Colo. Dawn Maffett; management assistant; Davie, Fla. Nikki Miller; CarMax Auto Finance senior specialist; Kennesaw, Ga. Jeremy Neuman; sales manager; Urbandale, Iowa Chris Petersen; location general manager; Ontario, Calif. Mike Santay; sales manager; Woodbridge, Va. Jenn Weibel; management assistant; Gastonia, N.C. Kellie Wood; management assistant; Roseville, Calif.
Black Book has promoted Jared Kalfus to senior vice president of sales where he will expand his current role overseeing data licensing
and lender solutions to now include the sales team of Black Book’s Activator Division. With 20 years of experience in the automotive industry, Kalfus joined Black Book in June 2012, where he began his tenure as vice president of automotive AYj]\ licensing. Kalfus will remain BYd^mk responsible for overseeing the national sales team focused on licensing Black Book data to automotive OEM’s, auctions, VAR’s, and marketing companies. He also leads the Black Book Lender Solutions team that supports automotive lenders, finance customers, banks, credit unions and title lenders. “The expansion of Jared’s leadership role is a strategic decision that provides stronger integration of resources for Black Book’s automotive dealership customers,” said Tom Cross, President of Black Book. Kalfus holds a bachelor’s degree in mass communications from the University of South Florida.
Kerrigan Advisors announced that, in line with the evolving needs of the market, it has launched a new private equity and family office advisory practice to be led by Ryan Kerrigan. Kerrigan has worked in the private equity IqYf sector for over B]jja_Yf 13 years, including leading transaction origination for a middle-market private equity firm.
ADESA announced that Ronna Webb was named fleet-lease manager at ADESA Dallas. Webb has 27 years of experience in the industry, serving most recently as director of CRM and inside sales for ADESA. She started in 1987 as a block clerk and has served as factory department supervisor, General Motors account manager, factory manager and general operations manager during her career. “Ronna is an industry veteran with a proven track record of innovative performance and mentorship,” said ADESA Dallas General Manager Ken Osborn.
12/19/14 10:30 AM
TRUE COST OF INCENTIVES (TCI) November-13
November-14% Change ‘13-’14
TCI $1,673 1 $12,903 2 $11,909 3 $10,841 4 $8,380 5 $7,120
Subcompact Car TCI $1,100 1 $11,734 2 $10,522 3 $8,952 4 $7,214 5 $6,105
TCI $2,263 1 $13,922 2 $13,607 3 $12,198 4 $10,004 5 $8,255
TCI $2,919 1 $18,327 2 $16,100 3 $13,126 4 $10,531 5 $8,352
$1,921 14.82% $12,969 0.51% $11,566 -2.88% $10,500 -3.15% $8,819 5.24% $7,222 1.43% $928 -15.64% $11,867 1.13% $10,856 3.17% $9,884 10.41% $7,714 6.93% $6,464 5.88% $2,255 -0.35% $15,443 10.93% $13,371 -1.73% $11,899 -2.45% $9,986 -0.18% $8,715 5.57% $4,394 50.53% $17,981 -1.89% $15,341 -4.71% $13,906 5.94% $11,031 4.75% $9,072 8.62%
Compact Crossover Suv TCI $1,463 1 $16,780 2 $15,392 3 $13,581 4 $11,242 5 $9,319
$1,413 $17,962 $15,584 $13,927 $11,730 $10,204
Midsize Crossover Suv TCI $2,425 1 $20,633 2 $18,686 3 $16,201 4 $13,675 5 $11,385
$2,521 $20,993 $19,515 $16,126 $13,080 $11,565
-3.42% 7.04% 1.25% 2.55% 4.34% 9.50% 3.96% 1.74% 4.44% -0.46% -4.35% 1.58%
Midsize Traditional Suv TCI $1,494 1 $24,610 2 $23,695 3 $17,987 4 $13,250 5 $12,073
$1,642 9.91% $24,830 0.89% $22,423 -5.37% $20,358 13.18% $16,653 25.68% $13,671 13.24%
Large Crossover Suv TCI $3,149 1 $24,757 2 $21,914 3 $17,770 4 $14,577 5 $13,082
$3,598 14.26% $24,882 0.50% $21,345 -2.60% $18,921 6.48% $14,935 2.46% $12,349 -5.60%
November-14% Change ‘13-’14
November-14% Change ‘13-’14
Large Traditional Suv
Premium Sport Car
Entry Luxury Car
TCI $3,894 1 $32,741 2 $29,143 3 $24,973 4 $20,071 5 $16,969 TCI $789 1 $20,179 2 $17,905 3 $15,371 4 $13,954 5 $11,747
TCI $3,929 1 $25,473 2 $23,554 3 $20,309 4 $17,444 5 $15,083
TCI $2,642 1 $18,807 2 $20,352 3 $14,467 4 $11,708 5 $9,621
TCI $2,091 1 $17,752 2 $14,576 3 $12,077 4 $10,899 5 $10,182
Entry Sport Car TCI $1,703 1 $21,821 2 $19,625 3 $18,793 4 $14,970 5 $11,133
$2,424 -37.75% $32,868 0.39% $28,475 -2.29% $25,286 1.25% $22,003 9.63% $17,394 2.50% $643 -18.50% $21,142 4.77% $19,410 8.41% $16,867 9.73% $14,636 4.89% $12,646 7.65% $4,145 5.50% $27,292 7.14% $24,899 5.71% $21,653 6.62% $18,621 6.75% $16,789 11.31% $1,977 -25.17% $20,206 7.44% $19,230 -5.51% $16,633 14.97% $12,071 3.10% $9,315 -3.18% $1,739 -16.83% $18,635 4.97% $16,461 12.93% $12,913 6.92% $10,710 -1.73% $10,255 0.72% $1,237 -27.36% $19,919 -8.72% $18,790 -4.25% $18,275 -2.76% $15,916 6.32% $12,690 13.99%
Midrange Sport Car TCI $1,520 1 $39,779 2 $34,216 3 $28,431 4 $26,512 5 $20,507
$1,521 0.07% $40,979 3.02% $33,365 -2.49% $31,088 9.35% $26,869 1.35% $23,629 15.22%
TCI $1,248 1 $72,993 2 $62,290 3 $46,145 4 $45,138 5 $36,863 TCI $3,534 1 $24,740 2 $22,696 3 $18,960 4 $16,488 5 $13,349
$1,844 47.76% $73,571 0.79% $60,985 -2.10% $63,477 37.56% $46,445 2.90% $38,802 5.26% $2,421 -31.49% $25,108 1.49% $21,489 -5.32% $20,406 7.63% $16,022 -2.83% $13,524 1.31%
Entry Luxury Suv TCI $2,180 1 $29,007 2 $25,804 3 $22,858 4 $18,078 5 $14,173
$1,879 -13.81% $29,509 1.73% $25,964 0.62% $23,272 1.81% $18,985 5.02% $15,311 8.03%
Midrange Luxury Car TCI $3,920 1 $37,085 2 $34,250 3 $25,793 4 $19,314 5 $15,815
$3,078 -21.48% $36,090 -2.68% $31,926 -6.79% $28,336 9.86% $20,422 5.74% $16,075 1.64%
Midrange Luxury Suv TCI $1,399 1 $41,681 2 $35,333 3 $29,281 4 $25,205 5 $19,453
$1,066 -23.80% $41,654 -0.06% $35,820 1.38% $29,436 0.53% $25,051 -0.61% $20,095 3.30%
Premium Luxury Car TCI $2,622 1 $57,866 2 $50,802 3 $40,411 4 $33,110 5 $25,460
$3,436 31.05% $59,908 3.53% $45,408 -10.62% $40,190 -0.55% $34,525 4.27% $26,005 2.14%
Premium Luxury Suv TCI $2,430 1 $49,379 2 $44,311 3 $35,974 4 $29,732 5 $22,811
$2,618 7.74% $53,283 7.91% $44,129 -0.41% $38,930 8.22% $28,472 -4.24% $25,281 10.83%
Edmunds.com’s monthly True Cost of Incentives (TCI) report takes into account all of the manufacturers’ various United States incentives programs, including subvented interest rates and lease programs as well as cash rebates to consumers and dealers. To ensure the greatest possible accuracy, Edmunds.com bases its calculations on sales volume, including the mix of vehicle makes and models for each month, as well as on the proportion of vehicles for which each type of incentive was used. TCI data (and other Edmunds.com data products) can be viewed industrywide, import vs. domestic, by country of origin, by make, by model and by segment. True Market Value (TMV) is the transaction price for vehicles.
12/18/14 11:55 AM
Â‡Ă›Ă? January 5, 2015
USED CAR NEWS
Disconnected Jottings From Tony Moorby... I fail to see the point in having an intelligence agency, just like most other countries, if we donâ€™t keep things secret. The CIA has a much broader mandate than say
and large, carried out in an era of confusion, with no precedent, never having faced terrorism in this way before. Do I believe in torture as part of a normal police
Ć€É&#x; Ĺ´Ĺ°Ć?3,É&#x;0.,(É&#x;) É&#x;."É&#x;#(/-.,3 Ć€É&#x; ,-#(.É&#x; ,)'É&#x;ĹąĹšĹšĹˇĆ‘Ĺ˛Ĺ°Ĺ°Ĺ°É&#x;) É&#x;É&#x;É&#x; É&#x; /.)').#0 Ć€É&#x; ,0É&#x;-É&#x;Ć‰-É&#x;2/.#0É&#x;0#É&#x;É&#x; É&#x; *,-#(.É&#x;) É&#x;-&-É&#x;(É&#x;',%.#(! Ć€É&#x; )),3É&#x;Ć É&#x;--)#.-É&#x;Ĺ˛Ĺ°Ĺ°ĹśĆ‘*,-(. Ć€É&#x; 1,É&#x;."É&#x;#(!É&#x;) É&#x;)(),É&#x;3É&#x;É&#x; É&#x; Ć€É&#x; É&#x;&&É&#x;) É&#x;',
the NSA who constantly oversteps their mark and then tries to lie and cover up their proctology-style peeping. Congress just issued an encyclopedic report, at the cost of some $41 million, to announce how the CIA disported itself after 9/11 in trying to wrest information from various foreigners and those who would do us harm, along with their associates. The dragnet was long
or secret agency? No. But thatâ€™s a qualified â€˜noâ€™ and I realize a good many people do not share my opinions. But why, when our citizens are having their throats slit after knowing for a long time that this is their death knell, in itself a torture, are members of Congress getting out the political birch twigs and self righteously engaging in self flagellation and apologizing for our reactions to 3,500 people being
C R O S S WO R D
set alight? Maybe itâ€™s because time and distance has passed and looking at prisonersâ€™ treatments in a quieter light makes it outrageous and offensive. Although, keeping a man cold, naked and handcuffed for a number of days, pales in comparison to whatâ€™s happening to families in Syria, the Peshmergan troops, Iraq and Afghanistan. Then there are all kinds of slaughter, torture and genocide on the African continent. Does seeing your parents hacked to death with a machete and then being taken into slavery constitute torture? It does in my book. My cynical side tells me the timing for this â€œhair shirt and ashesâ€? report, to all intents and purposes, saying that Americans have reached their social and cultural nadir under the Bush administration, is pointedly saying that we can expect more if we
carry on the current swing back to the right. This, in a country that has extended its hand to millions and continues to do so â€“ the most socially conscious and charitable nation on the globe â€“ is more orchestrated political eyewash and does us no good whatsoever. I suppose other countries are laughing at our gullibility but hoping the spotlight doesnâ€™t switch directions, as Iâ€™m sure there is as much embarrassing background to be found anywhere in the world. All Iâ€™m suggesting is that tough times take tough measures and unprecedented events take unprecedented actions, even if itâ€™s
in a state of confusion. Had we exerted no realistic efforts to find the perpetrators and their paymasters weâ€™d still be paying for the political backlash. Correctness has grown to a point where we have to apologize for getting up in the morning and the people in Washington are trying to find ways of spreading goodwill at the behest of the competition. Perhaps they should drop a lit Waterford ball from the scaffolding surrounding the Capitol - they seem to have enough of our money to fritter away on all kinds of projects. This way we could remind the world itâ€™s a new year!
To see past columns from Tony Moorby, visit www.usedcarnews.com/ columnists/tony-moorby
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21. Bostonâ€™s Liberty Tree was one Across 22. Assist 1. Makers of the 23. Make the grade 3000 GT (2 words) 6. Slang for a luxury 25. Drained of fluid car model 27. Reverse, e.g. 8. â€œYou ___ the apple of my eyeâ€? Stevie 29. Business going public Wonder 30. Classic Corvette color 10. English company that 32. Little seen color for made the Robin, a a car, violet three wheeled vehicle 33. Dealership array 11. British company that generally specialized in building racing and sports cars 35. Paddle 13. Nissan Pickup truck 36. Makers of the V12 Vanquish (2 words) 14. Pathfinder, for one 38. Old British sports car 16. BMW ____ B7 39. Moves ahead slowly 18. Top Formula One driver, Lewis 40. Honda SUV
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Answers to the 12/15/14 puzzle
24. Increase 26. Party member, briefly 28. Going up, like some costs 31. Cadillac El_____ 34. ___ lock brakes 36. Braking system, abbr. 37. Bratty child
O G N
U M N
P N N
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12/18/14 11:26 AM
USED CAR NEWS
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12/19/14 8:54 AM
Compiled By Jeffrey Bellant
PRETTY IN PINK FOR A CAUSE
MAKING STRIDES: Staffers from Flint Auto Auction (Michigan) hit the pavement to raise money in the 2014 Making Strides Against Cancer event.
Over the past 12 years, employees at Flint Auto Auction in Michigan have used their teamwork on the surrounding community, recently banding together in support of the American Cancer Society. The staff wore Flint Auto Auction hoodies, scarves, ball caps and beanies emblazoned with a specially-designed Flint Auto Auction logo. Thirty auction employees donned their walking shoes and took to the streets in the 2014 Making Strides Against Breast Cancer Walk held in Flint on Oct. 18. The staff was backed by Flint Auto Auction owners Bill Williams and John Luce, who matched the funds raised by the employees. After the event, the team made a total donation of $2,000 to the American Cancer Society.
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Through national partnerships with American Rivers and Ocean Conservancy, Cox Enterprises removed nearly five tons of materials from rivers and shorelines across the nation this year. Nearly 700 Cox employees and their family members volunteered at cleanups in Atlanta; Dayton, Ohio; Jacksonville, Fla.; Miami; Orange County, Calif.; Orlando, Fla.; Seattle and Wantagh, N.Y. The cleanups are part of Cox Conserves, the companyâ€™s national sustainability program, and included employees from Cox Enterprises and each of its major subsidiaries. The cleanup locations included: Atlantaâ€™s Chattahoochee River, Daytonâ€™s Great Miami River, Jacksonvilleâ€™s St. Johnâ€™s River, Miamiâ€™s Key Biscayne, Orange Countyâ€™s Doheny State Beach, Orlandoâ€™s Wekiva River, Seattleâ€™s Puget Sound and Wantaghâ€™s Jones Beach. Cox Enterprisesâ€™ participating companies included: Ć€É&#x; .&(.ĹźÉ&#x; /.),,Ĺş)'ĹťÉ&#x; "ĹşÉ&#x; 2 WSB-TV, Cox Communications,
Cox Enterprises, Cox Media Group, Manheim and The Atlanta JournalConstitution Ć€É&#x; 3.)(ĹźÉ&#x;ĹšĹľĹşĹłÉ&#x;(É&#x;ĹąĹ°ĹąĹşĹąÉ&#x;"É&#x;!&ĹťÉ&#x; Ch. 7 WHIO-TV, Dayton Daily News, Manheim Cincinnati, Journal-News, ĹšĹšĹşĹąĹťÉ&#x; 1-É&#x; &%É&#x; #)É&#x; É&#x; (É&#x; Springfield News-Sun Ć€É&#x; %-)(0#&&ĹźÉ&#x; ĹšĹľĹşĹąÉ&#x; "É&#x; #!É&#x; *ĹťÉ&#x; ĹšĹśĹşĹšÉ&#x;"É&#x;!&ĹťÉ&#x;É&#x;Ĺ´ĹˇĹťÉ&#x;É&#x;ĹłĹ°ĹťÉ&#x; (Ć? heim Jacksonville, News Talk WOKV (É&#x;ĹąĹ°Ĺ˛ĹşĹš Ć€É&#x; #'#ĹźÉ&#x;/.),,Ĺş)'ĹťÉ&#x;ĹšĹšÉ&#x; '4ĹťÉ&#x; -3É&#x;ĹšĹłĹşĹąĹťÉ&#x;#.-É&#x;ĹšĹˇĹşĹłĹťÉ&#x;).É&#x;ĹąĹ°ĹľĹťÉ&#x;,.3É&#x;ĹšĹłĹşĹąĹťÉ&#x; Manheim Ft. Lauderdale and Kelley Blue Book Ć€É&#x; ,(!É&#x; )/(.3ĹźÉ&#x; /.),,Ĺş)'ĹťÉ&#x; Cox Communications, Kelley Blue Book and Manheim Riverside and Manheim Southern California We invite news items and top-quality photos from our readers to be considered for â€œAround the Block.â€? Please include the name of a contact person and a telephone number. Send items and photos to: Jeffrey Bellant Mail: Used Car News, 24114 Harper Ave., St. Clair Shores, MI 48080. Fax: (586) 772-9400 e-mail: email@example.com
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