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February 17, 2014

www.usedcarnews.com

ON THE WEB: Digital Ads Exert Extra Influence on Shoppers

Off-Lease Vehicles Fill Used Pipeline

A new report finds that consumers are almost twice as likely to be swayed by autofocused digital marketing than the general population (21 percent vs. 12 percent). Moreover, automotive shoppers are 71 percent more likely to be influenced by digital advertising across multiple retail categories than the average consumer.

Dealership Experience Drives Purchases

A recent study by AutoTrader. com identified the “Dealership Experience,” and particularly “Customer Handling,” as one of the leading factors that determines where consumers make their purchases.

Money Motivates Car Salespeople

File photo HERE THEY COME: Experts say the market absorb a surge in vehicles because today’s lessors want to maintain residuals and demand remains high.

The majority of car salespeople decided to sell cars because of the income potential. A poll by Joe Verde found 28 percent of respondents said the income potential led to them becoming car salesmen.

By Ted Craig

Several analysts are raising concerns that a flood of off-lease vehicles will drive down used-car prices. Industry experts, however, remain cautiously optimistic that the market will absorb this extra inventory. The latest warning

comes from credit ratings agency Fitch. Fitch reports that increased “supplies of offlease vehicles, coupled with rising inventories and new vehicle production, could hurt the wholesale market and auto ABS performance metrics over the long term.” A surge in off-lease ve-

hicles did cause prices to drop in the past. But industry experts say this time is different. A main reason is today’s lessors are more invested in maintaining residual values. Lessors during the last decade’s great deluge of off-lease units consisted of a mix of manu-

facturers, banks and other finance companies. Most cars these days are leased either through a manufacturer’s captive finance arm or through a manufacturer’s private label program run by a bank. Either way they need to maintain a brand’s resale value. Continued on page 8

Report Claims Minorities Pay Higher Finance Rates Rush - Dated Material

By Ted Craig

A consumer advocacy group released a report that attempts to support the federal government’s recent crackdown on discrimination in auto lending. The survey from the Center for Responsible Lending finds that African Americans and Latinos attempt to negotiate loan pricing with car dealers more often than white consumers: 39 percent of Latinos and 32 percent of African Americans reported negotiating their interest rate, compared to only 22 percent of white respondents. Yet white

car buyers reported receiving lower interest rates - even those who didn’t try to negotiate at all, the report states. The report does not indicate if the minority consumers received lower rates than initially offered. Attorney Tom Hudson called the report an “advocacy piece that relies on other advocacy pieces.” Hudson said existing state and federal laws address some of what is in the report. Other criticisms already have an industry solution. “Menu sales accomplish much of what these folks say they want to accomplish,” Hudson said.

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February 17, 2014ÛÛÝÛۀ

USED CAR NEWS

City Kicks Dealers Off One of Nation’s ‘Best Streets’ By Sheila McGrath

For nearly two decades, Behrooz Raiszadeh has been serving generations of buyers at his used-car store on King Street in Alexandria, Va. But now that he’s being forced to move due to a change in the city’s zoning laws, he’s hoping those longtime customers will keep track of him. King Street is part of Alexandria’s historic Old Town, and was originally platted by George Washington in 1749. In 2011, the American Planning Association named King Street a “Great Place in America” in its Great Streets category. But despite the fact that car dealers have been part of the landscape on the “Great Street” for the last century, city planners decided they would have to go. In 2006, they adopted a King Street Retail Strategy calling for continuous retail uses on the street to enhance the pedestrian experience. They’re aiming for upscale retailers, restaurants, bistros

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LACKING CURB APPEAL: Dealer Behrooz Raiszadeh, on right, says he has a small lot, but he turns his cars quickly. The Virginia city his business has called home for more than 20 years now prefers bistros to used-car stores.

and clubs. Dealers were given seven years to find a new location, and in November, that time ran out for Raiszadeh, owner of A&B Auto Finance Co., and another dealer, Vafa Zarineh, owner of King’s Auto. On Jan. 7, the city Planning Commission granted them two extra months to look for new locations. But in

March, commissioners said, they plan to deny the dealers’ applications for permits that would let them stay any longer. Planning Commission member Eric Wagner said the businesses had plenty of notice that they’d have to leave. “You never want to evict an operating business, but

when people are given actual notice for seven years … it’s hard to understand why the business owner didn’t relocate.” But it’s not so simple, according to Raiszadeh. The city’s zoning code is making it impossible to find a good site. “They don’t want any used car businesses in the city of

Alexandria,” Raiszadeh said. He’s seeking help from the city’s Economic Development Partnership, and he hopes with their help he’ll be able to stay in Alexandria. Despite his current predicament, he said he has a good relationship with the city. But if he can’t find a good site in town, he’ll have to look elsewhere, he said.

2/10/14 1:25 PM


 ÛÛ�ÛÛÛFebruary 17, 2014

USED CAR NEWS

NEWS BRIEFS GM Financial Reports Growth

General Motors Financial Company Inc. reported higher earnings in 2013. GM Financial announced earnings of $121 million for the fourth quarter, compared to $91 million for the fourth quarter of 2012. Earnings for the year were $566 million, compared to $463 million for 2012. Consumer loan originations were $3.3 billion for the quarter, compared to $2.5 billion for the third quarter and $1.2 billion for the fourth quarter of 2012. Consumer loan originations for the year were $9.6 billion, compared to $5.6 billion for 2012. The outstanding balance of consumer finance receivables totaled $23.3 billion at Dec. 31. Consumer loan originations in North America for the quarter and year were $1.1 billion and $5.1 billion, respectively. Consumer finance receivables 31to-60 days delinquent were 4.1 percent of the portfolio at Dec. 31, compared to 6.1 percent at Dec. 31, 2012.

Carfax Announces Pacts

Carfax announced the renewal of its nine-year partnership with Cars. com that allows dealers to include Carfax Vehicle History Reports on their Cars.com listings. Since 2005, Carfax Reports have been available for the used vehicle listings of subscribing dealers on Cars.com. Carfax also announced an agreement with Nowcom to offer access to Carfax Vehicle History Reports through its DealerCenter dealer management system. Carfax-subscribing dealers can run and view Carfax Reports for any used car in inventory from within DealerCenter’s inventory management system. In addition, dealers can share the Carfax Reports they run with potential buyers on DealerCenter’s Dealer Website product.

Manheim has announced several enhancements to its transportation

America’s Car-Mart Inc. announced the opening of its 130th dealership. The dealership is located in Altus, Okla. Altus is the the company’s 23rd dealership in Oklahoma.

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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

Manheim Enhances Solution

America’s Car-Mart Adds Store

solution, including changes to full Getting it Straight service transportation quotes, manThe answers to the Jan. 6 puzzle agement of full service transporta- were blank in the Jan. 20 issue. tion orders and 1Dispatch registraC L A C A D I L L A C S B tion for self-managed orders. O I L H U O G U F O Customers can now receive a T O O L B O X transportation quote on the vehicle R E L I A N T O E I Y O A G E details page, Workbook and My Pur- L E G E N D S P I D E R R chases on manheim.com. L R S I R B U They can also receive the full ser- A G O A N T I Q U E Y vice transportation quote after scanE P S U Y B E D ning a VIN with their Manheim E L H I P O S H V I S A Mobile app. Through 1Dispatch reg- C S T E E A D I istration, customers will now have L I E N S C A M A R O S H the ability to start the registration I D T T O C P A F I A T process from Manheim.com, includ- P R O M O T I O N S N P R O F U I T S ing Vehicle Display Page, Workbook S E L A N I N F I N I T I U and My Purchases.

C R O S S WO R D by Myles Mellor

PAGE 19

Charles M. Thomas Founder (1947-2002) Lynda R. Thomas, Publisher Colleen Fitzgerald, General Manager Editorial: Ted Craig, Managing Editor Jeffrey Bellant, Staff Writer Gabriel E. Camero, Intern 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

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Used Car News is published the first and third Monday of each month. Subscribers: We print advertisements as sent to us by auctions and other advertisers. It is not possible to verify the correctness of listed vehicles in auction ads. Most lists are partial and all lists are subject to last minute changes by auto auctions, so before travelling a long distance for a particular auto auction event, contact the auction by telephone for a fax of vehicles in the sale. Used Car News assumes no guarantees or liabilities concerning the accuracy of any advertisements. All Rights Reserved. Reproduction in any form is prohibited without the written consent of the publisher. É&#x;  É&#x; É&#x;  Please submit clear, legible copy. Payments from first time advertisers must accompany the insertion order. Distribution is guaranteed by U.S. Postal Carriers. The advertising reservation deadline is 5:00 p.m. Friday, 10 days prior to the issue date. Camera ready ads must be received by noon on Monday prior to the issue date.

Join the Conversation! Visit Used Car News online at www.usedcarnews.com or scan this QR code with your smartphone to be taken directly to the website.

2/10/14 4:16 PM


February 17, 2014 ÝÛۂ

USED CAR NEWS

Feds See Future of Cars Talking to Each Other WASHINGTON (AP) _ Your car might see a deadly crash coming even if you don’t, the government says, indicating it will require automakers to equip new vehicles with technology that lets cars warn each other if they’re plunging toward peril. The action, still some years off, has ``game-changing potential’’ to cut collisions, deaths and injuries, federal transportation officials said at a news conference on Monday. A radio signal would continually transmit a vehicle’s position, heading, speed and other information. Cars and light trucks would receive the same information back from other cars, and a vehicle’s computer would alert its driver to an impending collision. Alerts could be a flashing message, an audible warning, or a driver’s seat that rumbles. Some systems might even automatically brake to avoid an accident if manufacturers choose to include that option. Your car would ``see’’ when another car or truck

equipped with the same technology was about to run a red light, even if that vehicle was hidden around a corner. Your car would also know when a car several vehicles ahead in a line of traffic had made a sudden stop and alert you even before you saw brake lights The technology works up to about 300 yards. If communities choose to invest in the technology, roadways and traffic lights could start talking to cars, too, sending warnings of traffic congestion or road hazards ahead in time for drivers to take a detour. The technology is separate from automated safety features using sensors and radar that are already being built into some high-end vehicles today and which are seen as the basis for future self-driving cars. But government and industry officials see the two technologies as compatible. If continuous conversations between cars make driving safer, then self-driving cars will become safer as well. The National Highway

Traffic Safety Administration, which has been working with automakers on the technology for the past decade, estimates vehicleto-vehicle communications could prevent up to 80 percent of accidents that don’t involve drunken drivers or mechanical failure. Crashes involving a driver with a blood alcohol content of .08 or higher accounted for nearly a third of the 33,500 traffic fatalities in the U.S. in 2012, according to the safety agency.

The technology represents the start of a new era in automotive safety in which the focus is ``to prevent crashes in the first place,’’ as compared with previous efforts to ensure accidents are survivable, said David Friedman, the head of the agency. No orders to automakers are imminent, officials said. After an agency report, the public and carmakers will have 90 days to comment, then regulators will begin drafting a proposal, and that process could take months

to years. But Transportation Secretary Anthony Foxx said it is his intention to issue the proposal before President Barack Obama leaves office. “It will change driving as we know it over time,’’ said Scott Belcher, president and CEO of the Intelligent Transportation Society of America. “Automobile makers will rethink how they design and construct cars because they will no longer be constructing cars to survive a crash, but building them to avoid a crash.’’

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ƒÛÝÛFebruary 17, 2014

USED CAR NEWS

Group Launches Compliance Program By Gabriel E. Camero

Any firm providing auto finance today faces an array of ever-growing laws and regulations. That’s why the National Auto Finance Association launched its consumer compliance certification program. The first training session took place Jan. 15 and 16 in Dallas. Jack NAF AssociaTracey tion Executive Director Jack Tracey said this program differs from other compliance training because it “is granular it gets down into the particulars in each of the modules.” The program consists of four modules, two in a classroom setting and two online, which take about 35 hours to finish. The introductory module is set in a classroom while modules two and three, which cover Equal Credit Opportunity acts on the federal and state levels, are online. The fourth module, on the Consumer Financial Protection Bureau, will start once the first students are finished with

modules two and three, probably in the fall. To pass a module, students need to score at least a 75 percent on a test that is comprised of, according to Tracy, 80 to 90 questions. The online modules are divided into 26 sessions followed by a test for each and are estimated to take 20 to 25 hours to complete. Certificates last for two years, but the association will offer continuing education classes frequently with evolving content. “It’s our experience, at least for the last couple of years, that the CFPB has been doing so much that there’s going to be new stuff,” Tracey said. Students will have access to the course materials online once they’ve completed each module. “So if they’re bumping into something that they don’t normally bump into and they want a little refresher they can just go back into the course content and take it,” Tracey said. The Hudson Cook Law Firm provided the content and most of the services for the program, including attorneys Patty Covington and Eric Johnson as classroom teachers. Kat Messenger, who trains dealers in the Carolinas, provided the voiceover work for the online classes. Continued on page 10

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PAGE 8 - WHOLESALE MARKETS

Industry Ready to Absorb Off-Lease – From page 1 Another cause for optimism is slack in the used market. Both new and used sales remain far below their pre-recession levels when adjusted for population growth. That’s due in part to a lack of household formation among young people as they fail to find work and put off getting married or even moving out of their parents’ homes. “Eventually, these people will buy something,” said Steven Szakaly, chief economist for the National Automobile Dealers Association. Traditionally, franchise and independent dealers sold about an equal number of vehicles. Franchise dealers this past year, however, outsold independents. Many dealers have said a lack of inventory has held them back. “The pipeline of the used-car market is now almost full,” said Black Book editorial director Ricky Beggs. Franchise dealers also want more off-lease inventory for their certified pre-owned programs. CPO sales topped 21 million in 2013, a number Jonathon Banks of the NADA Used

Car Guide said “will be blown away” this year. Certified sales already set a record in the first month. The 166,311 units sold in January were a record for the month. Another way of handling an increase in off-lease volumes is increasing used-car leasing. Mike Goff, CEO of Toyota Financial Services, said that’s a tough sell to both dealers and consumers. “The dealers have just not latched on to used leasing,” Goff said. Toyota tried a program last year with special rates for used leases. There was some response among luxury buyers, but not the mainstream consumers. Manheim chief economist Tom Webb said everybody worries about the wrong year, any way. The really huge increases in off-lease vehicles will come in 2015 and 2016, Webb said. Even then he expects no dramatic collapse in wholesale prices as consignors come up with “remedies for residual risk.”

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Compliance The first class was in such high demand despite little marketing that the NAF Association turned away registrants after taking 86 applications rather than the expected 35 to 40. Tuition for the program is $2,000 for NAF Association members and $2,600 for non-members. Tracy expects the prices to stay level given the high demand and cost for the program. Although the teaching method of the first module – a lecture with

– Continued from page 6

PowerPoint slides – was a success Tracy is aware of the tediousness of a 15-hour lecture. “There will probably be refinements to the way it’s delivered so the units will be more engaging and interesting going forward,� he said. Tracy plans to set up modules in several locations to better suit students. The next introductory class will be held at the Omni Hotel in Fort Worth, Texas, in conjunction with the NAF conference in May.

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HORN LAKE, Miss. (AP) – A Mississippi city might allow an increase in used-car dealers as a way to boost business. Horn Lake’s current zoning ordinances ``strongly discourage’’ usedcar dealerships, officials said, by only allowing them in conjunction with a new-car dealership. Some existing used car lots were grandfathered in before current regulations. Over the past few months, The Commercial Appeal reports Mayor Allen Latimer has said the city has received numerous inquiries about such used-car dealerships. Latimer

suggests to the board of aldermen that as part of the city’s push to attract new business, it would consider changes to strict regulations governing used car dealerships. City Planner Austin Cardosi will look at ordinances in surrounding cities and possibly offer something to the city’s planning commission to consider before it comes back to aldermen. The subject is a delicate matter for city leaders, some of whom have been burned by past experiences with used-car dealerships that went out of business without contributing anything to the city’s tax base.

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~ÛÝÛFebruary 17, 2014

USED CAR NEWS

PEOPLE IN THE NEWS VinSolutions Names VP

Jennifer Lee has been promoted to vice president of product for VinSolutions. Lee will continue to oversee the company’s mobile platforms, CRM tools, campaign MGT tools and Haystak websites for VinSolutions, an AutoTrader Group company. Jennifer Lee joined VinLee Solutions in February 2013 as senior director of product. In that role, Lee worked directly with dealers and product development teams to integrate and streamline exiting dealership solutions, including the seamless integration of data and technology with AutoTrader Group. A veteran of more than 16 years in the automobile industry, Lee is a proven leader with a passion for building innovative and leading software products for dealers. Prior to joining VinSolutions, Lee served in dealer product development and leadership roles with DealerTrack, JM Family Enterprises and Reynolds and Reynolds. She began her automotive career following four years of distinguished service with the United States Air

Force, and is a Desert Storm veteran. Cars.com Hires Analyst She earned a bachelor’s degree in Cars.com has named Jesse Tobusiness administration from Indi- prak as chief analyst. ana University. Toprak will be the spokesperson for the company’s market inManheim Promotes Managers telligence and communication Manheim has named Chad Ruf- initiatives. fin as general manager for ManPrior to joining Cars.com, Toprak heim Southern California, and has served as vice president of market promoted Donny Cohen to auc- intelligence at TrueCar.com where tion manager for Manheim Daytona he was responsible for analyzing Beach and Manheim Jacksonville. and reporting on a range of automoRuffin has spent more than tive topics, trends and insights for 16 years in the automotive the industry, media and consumers. wholesale industry. Toprak also served as the execuDuring his career Ruffin has tive director of industry analysis at worked for Manheim, HSBC, Arca- Edmunds.com. dia/Citi Financial and others. Ruffin Toprak has more than 18 years of spent five years at Manheim earlier industry experience, including roles in his career in various roles, includ- at franchise dealerships and with ing dealer sales manager, Ford ac- major automotive manufacturers. count manager, recon manager and assistant recon manager. He is a Aftermarket Firm Taps President graduate of Saddleback College in SKF has announced the appointMission Viejo, Calif. ment of Tom O’Brien as president of Cohen is responsible for the day- SKF Vehicle Service Market (VSM), to-day management and oversight North America Business Unit, effecof both locations, and will be sup- tive immediately. ported by managers and supervisors O’Brien previously served as the focused on specific functional areas. interim president for SKF VSM Cohen has more than 21 years of North America following the death automotive wholesale experience, of Mike McGrath in October. He including seven with Manheim. He also has served as the vice president was named assistant general manag- of automotive sales for SKF VSM, er at Manheim St. Pete in early 2012. North America since joining SKF Prior to that role, Cohen worked at in 2007. In his new role, O’Brien will overManheim Fort Myers.

see all sales and marketing initiatives for the SKF VSM automotive and heavy duty aftermarkets in North America and will report to Christer Cedervall, director, SKF, Vehicle Service Market Global. He will continue to be based at SKF’s Elgin, Ill., office.

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Manheim Riverside March 11 909-689-6000

Manheim Atlanta March 6 404-762-9211

Manheim New Jersey March 12, 26 609-298-3400

Manheim Seattle March 5 206-762-1600

Manheim Orlando March 4 800-337-8491

Subaru Motors Finance Manheim Pennsylvania March 21 800-777-2053

ADESA Boston March 14, 28 508-626-7000

Manheim Detroit March 6, 20 734-654-7100

Brasher’s Salt Lake March 25 801-322-1234

Manheim Fredericksburg Manheim Pittsburgh March 12 March 13 724-452-5555 540-368-3400

Columbus Fair AA March 19 614-497-2000

Manheim Milwaukee March 12 262-835-4436

Manheim Dallas March 26 877-860-1651 Manheim Denver March 12 800-822-1177

Manheim New Jersey March 26 609-298-3400 Manheim Orlando March 11 800-337-8491

Manheim Seattle March 5 206-762-1600 Manheim Southern CA March 20 909-822-2261 Southern AA March 12 860-292-7500

*The tradename “Subaru Motors Finance” and the Subaru logo are owned / licensed by Subaru of America, Inc. and are licensed to Chase Bank USA, N.A. (“Chase USA”) and JPMorgan Chase Bank, N.A. (“Chase”). Retail / Loan accounts are owned by either Chase or Chase USA and lease accounts are owned by Chase. *Jaguar, the Jaguar logo, and Jaguar Financial Group are trademarks of Jaguar and any use by JPMorgan Chase Bank, N.A. (“Chase”) is under license. Land Rover, the Land Rover logo, and Land Rover Financial Group are trademarks of Land Rover and any use by Chase is under license. Retail / Loan and lease accounts are owned by Chase. *The tradename “Mazda Capital Services” as well as the Mazda and Mazda Capital Services logos are owned by Mazda Motor Corporation or its affiliates and are licensed to JPMorgan Chase Bank, N.A. (“Chase”). Retail / Loan and lease accounts are owned by Chase. © 2013 JPMorgan Chase Bank, N.A. Member FDIC. All rights reserved. (12-381) 06/12

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~ Û�ÛÛFebruary 17, 2014

USED CAR NEWS

RETAIL MARKETS NEBRASKA

Don Deepe, owner, 81 Automotive, Hebron, Neb.: “We’ve been open for 26 years on a single lot. “I don’t have much in inventory now; I’m down quite a bit. I only have about 25. “Last month I sold six, the weather’s been terrible here with the cold and snow so it stops people from shopping. “Not too many people are out looking for cars when it’s zero degrees. “When it’s warm we sell about eight or ten a month. “I get my cars from a couple of auctions. I generally go to the Nebraska Auto Auction in Lincoln and Salina Auto Auction in Salina, Kan. “I’m real close to Kansas so it’s the same distance to either place. “Once in a while I do buy some off the streets and I’ve had steady customers for years and a lot of them trade in. “I don’t do any financing. I do no-interest, no

carrying charge, and one easy payment. “A lot of the people I usually deal with have their own banks that they go through. That’s why I don’t sell as many either. “A lot of people need financing but I’m just a small operation and I don’t get into the financing. “I have about half cars and half trucks/SUVs right now, about 90 percent domestic. “It seems like I get foreign vehicles and people will go to Lincoln, a hundred miles away, to buy them but they don’t buy them locally. “We’re just a small town in a rural area and a lot of the people stick with domestic. “Our average model year is probably ‘08, ‘09, and I try to stay under 100,000 miles, but it’s getting harder all the time. “But it’s not because of the economy. Actually the economy didn’t hurt us as bad out here in the rural area. “The farm economy has

Compiled by Gabriel E. Camero been good out here, it’s kind of let up now but there were four or five years of good grain prices; they’ve fallen now, so that hurts. “Our average retail price is around the $10,000 range. “I hire most of the recon work out, I probably spend $400 or $500 per vehicle. “If you don’t do it before you sell them you get in trouble with them and I don’t like to sell junk. “I’m on the website Wheels For You and I used to advertise in their magazine but I get good coverage on the Internet. “I’ve also got a good location on a main four-lane highway and I get a lot of exposure with the driveby traffic, which helps a lot. “One of the last ones I sold was an ‘03 Ford F-150 Supercrew. “I had it in the detail shop and some people saw it sitting there. So I picked it up and dropped it off to show it to them on the way home and they bought it.

“It was a trade-in, had 115,000 miles on it and I got $11,500. “It doesn’t happen that way all that often but it did on this one: I never even got it on the lot.�

TEXAS

Butch Cornelius, president and owner, Cornelius Motor Sales, Fort Worth, Texas “We’ve been open for 67 years. “My dad opened it in 1946 because the war was over and he needed a job. “We have a single location with about 45 units on the lot and sell an average of 20 retail cars and 10 wholesale pieces a month. “We do some in-house financing and some subprime financing, most of it’s bank or credit unions. “When we do buy-here, pay-here we have an average $1,500 down payment with an average payment of $325 a month for about 24 months. “We have about 66 percent trucks and 33 percent cars and SUVs. Of those, we have 80 percent do-

mestic and 20 percent import, maybe. “Our average model year is about ‘06. “Our average mileage is around 100,000 – some more, some less. “The average retail price is about $12,000. “I’ve got a couple of new car auctions that I go to source cars from and we take some trade-ins, not many. “We recon our vehicles for probably an average of $600 to $700. “Body and mechanical work we send out, but we do cleaning and light work here. “We have a shop with two lifts that we service our own cars with. “We use electronic marketing mostly. You know your website, search engines, Craigslist, eBay, cars.com, that stuff. “The last car we sold was an ‘06 Dodge Dakota fourdoor pickup with about 65,000 miles. “It brought $9,600 on the street so about $9,000 cash, plus the tax.�

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2/6/14 4:48 PM


~ƒÛÝÛÛFebruary 17, 2014

USED CAR NEWS

WHOLESALE MARKETS FLORIDA

Doug Rodriguez, general manager, Tallahassee Auto Auction, Tallahassee, Fla.: “The auction will turn 30 years old this June. We will have a huge anniversary sale that fourth week in June. “We have three lanes and we run all three. We run between 400 and 500 vehicles every week. “Last year was recordbreaking for us. We significantly increased both dealer consignment and fleet/ lease/repo consignment for a 35-percent increase in business. “For this year, we certainly expect – and we’re already seeing – additional growth. “We generally have a 50 to 55 percent sale. I expect that to go up as we enter tax season. We should run anywhere in the mid-60s I should think. I’m looking forward to some very strong sales. “We get between 300 to 400 dealers each week. Out of those, we get a good 80 to 100 that are simulcast dealers each week. So we do a significant business on the

simulcast side. “We draw dealers from three states. They come from southern Alabama, the panhandle of Florida and we pull them from southern Georgia. “The mood has been good in the lanes. The mood has been strong. “Most dealers who have labored through the recession feel that it has passed them and they are stronger for it. “Our volumes are about 80 percent dealer consignment and 20 percent fleetlease and repos. “We gained a big part of that fleet/lease/repo market share last year. We expect to grow that again this year. “We do business with ARI, PHH, Emkay, SRG Remarketing and local banks and credit unions. “We have a salvage sale the first and the last week of each month. Generally speaking, we run anywhere between 80 and 100 units. “At the end of our sale on the second Friday of each month we hold a power sports sale. That struggled a

Compiled by Jeffrey Bellant little bit but it has increased IOWA recently. I’ll get anywhere Mark Greb, owner, Plaza from 50 to 60 units. Auto Auction, Mt. Ver“We may see that grow a non, Iowa: little more this year. We pri“We’re in our 51st year. marily get RVs and fishing I’ve owned Plaza for 10 years. boats. On the RVs, we get “We have a total of five a few Class As, but mainly lanes and we’re running we’ll get fifth wheels and four lanes. bumper pushers. “Due to the weather re“We also have a Five-Day cent volumes have been way Frontline sale on the third down. It’s not so much the week of each month. The cold. It’s been the snow. dealers bring us late-model “(In early February) last (2004 and newer) and low year we were running about mileage (75,000 and un- 350 cars, maybe 325. We der) vehicles and the dealer were down to 275 (at a reguarantees the vehicle for cent sale). five days. That sale has been “Sales percentages at our successful and we’ll get 50 (last two sales in Januor 60 units in that sale. ary) were 67 and 75 per“Our average sale price cent. So sales percentages overall coming through were high. the lanes is anywhere from “Last year, we averaged $8,000 to $12,000. That’s 232 dealers per sale. One reprobably $1,000 higher. cent sale was about 200. Our quality of consignment “Fleet/lease business has product is higher. been getting bigger. Right “Trucks are really in low now, we’re about 75 percent volume around here, so dealer consignment and 25 they are a hot commodity percent fleet/lease. Regionright now. al and local banks are delv“They’re looking for the ing into indirect lending or Ford F-150s and the Chevy going a little bit deeper, so we’re seeing a little trickleS-10s and Silverados. CarolinaAA-UCN_Mar.pdf 1 2/5/14 5:12 “As quickly as I get trucks down effect from that. “PHH has been one of in, they are flying out.”

our largest consignors. Others are Emkay, Flexco Fleet Services and Harris Bank. “We also do a salvage sale twice a month. We usually have about 20 cars at that sale. “Our power sports sale has seen some really nice growth. We were quarterly. But we’re going to go to every other month for that sale this year. By next year, our plan is to even go monthly as we slowly ramp it up. “We run a lot of motorcycles and off-road vehicles. We’ll run between 110 and 125 per (power sports) sale. On a good day we’ll sell 60 percent, on an off day we’ll sell 40 percent. “Our average car sold on the block is about $4,800. I think that’s up a little bit, but not a large amount. “I think dealer consignment will continue to improve. “Last year, I think we sold 800 more cars than we did the year before. That was a 5 percent increase. I exPM pect that to go up again this year.”

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ACTUAL WHOLESALE AND PROJECTED RESIDUAL VALUES FEBRUARY 2014

SOURCE: BLACK BOOK

2011 MODELS

2012 MODELS Domestic Cars Buick LaCrosse 4D Sedan Cadillac CTS 3.6 4D Sedan Chevrolet Cruze LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 Base 4D Sedan Chrysler 200 Touring 4D Sedan Ford Focus SE 4D Sedan Ford Mustang Base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln MKS 4D Sedan Import Cars Acura TL base 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan 2.4 Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Galant ES 4D Sedan Nissan Altima Base 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra Base 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Trucks BMW X3 XDrive28i 4D SAC Cadillac Escalade Base 4D Utility AWD Cadillac SRX Luxury 4D Utility AWD Chevrolet Colorado LT Crew Cab 4WD Z85 Chevrolet Equinox LS 4D Utility FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D Utility 4WD Dodge Grand Caravan SE Wagon Ford Edge SEL 4D Utility Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Flex SEL 4D Utility Honda CR-V LX 4D Utility AWD Honda Odyssey LX Wagon Honda Pilot EX-L 4D Utility 4WD w/RES

Feb-13 22700 28400 12700 12800 18900 13800 12500 17000 18800 24600 Feb-13 26000 31400 64200 15300 15350 30400 38000 11750 12900 14200 11800 16450 13650 15600 Feb-13 34500 50450 30450 20900 18450 21175 29950 15550 22025 18375 28250 21200 22325 19000 19650 30350

Aug-13 21800 25500 12350 12000 17950 12150 12350 15700 17400 24200 Aug-13 25000 29350 58500 15100 13700 28900 36400 12000 12500 13800 11300 15200 12650 15100 Aug-13 33250 47250 29750 20950 16750 19675 29500 15200 21150 16200 26675 20450 19500 17800 20000 28850

Feb-14 19400 22200 10650 10700 17250 11050 10800 14300 15550 20100 Feb-14 22000 25600 56500 14300 12200 27000 32200 11000 11200 12500 10300 14000 11500 13950 Feb-14 31150 43250 26600 19950 13200 19100 27450 12950 19000 15350 26000 19950 18500 17100 17650 27000

Projected Figures Feb-15 Feb-16 17200 14700 19125 15750 9225 8025 9375 8300 13425 11450 9625 8250 9500 8025 12800 11500 13200 11450 17850 15575 Feb-15 Feb-16 19350 16600 20450 17050 45900 38850 12525 11100 10450 8875 23275 20450 27900 23275 9450 8075 9675 8425 10700 9325 8825 7700 11925 10600 9875 8675 12450 10675 Feb-15 Feb-16 25875 21825 37575 32000 22375 19675 17050 15000 11600 9900 16425 14625 24475 21550 10950 8975 15875 13700 13200 11225 21375 18100 16500 14350 14975 12875 14475 12825 15850 13900 23375 20350

UCN_17.indd 1

Feb-13 14500 17900 8200 9800 13500 10300 13200 14400 18200 9400 Feb-13 20600 20800 46600 12500 9650 23300 30000 9350 10550 11850 9650 12650 10600 12600 Feb-13 26750 40450 25850 17375 14325 18250 23550 13075 11850 18150 15050 17700 16975 18050 15400 14400

Aug-13 14400 18550 7650 9400 13500 9200 12500 14250 17500 9150 Aug-13 20400 19800 40200 12200 9050 21900 28600 8550 9950 11250 9150 11850 10100 12000 Aug-13 25650 38450 24400 17800 12950 17225 23125 12625 11375 17550 13100 16800 16800 17400 15050 14000

Feb-13 17200 24900 11300 11200 16900 11850 15000 10600 16400 21600 Feb-13 23000 23800 53300 13850 13750 26800 33800 10450 11650 12950 10500 14150 12150 14300 Feb-13 31150 45400 28550 19075 16350 19575 27025 14175 20950 16675 27150 19250 20350 17250 17800 27100

Aug-13 16200 22450 11100 10600 16600 10600 13900 10550 15750 21600 Aug-13 22400 23500 47400 13600 12350 25300 32200 10200 11200 12500 10100 13250 11350 14300 Aug-13 30100 44100 26350 19450 14700 18875 26000 13175 20550 14350 26000 18875 18500 16400 18200 25750

Feb-14 13700 20100 9750 8900 15300 9700 12900 8950 13700 21900 Feb-14 19600 19750 44600 12750 11000 23100 28200 9400 9950 11250 9050 11850 10300 12850 Feb-14 27950 39300 23350 18450 11450 17575 23075 11100 17000 13050 24200 17700 17075 15300 16150 23850

Projected Figures Feb-15 Feb-16 12150 10475 15450 12950 8025 6875 7900 6900 11550 9750 8175 6975 11650 10400 7825 6625 11425 9675 16575 13725 Feb-15 Feb-16 16625 14250 16175 13625 36900 31225 11050 9700 8925 7475 20325 17875 23300 19100 7875 6625 8350 7200 9300 8000 7625 6600 10600 9400 8725 7625 10325 8725 Feb-15 Feb-16 22350 18575 32450 27225 19225 16450 15200 13300 9725 8175 15175 13400 20800 18100 9600 7900 14225 12100 11150 9250 19350 16050 14625 12600 13775 11750 13000 11475 13650 11825 19975 16975

Feb-14 8050 13700 5350 7200 10300 5450 9200 8250 14750 6450 Feb-14 15800 13950 32300 9950 6900 16800 18400 6550 8050 8950 7200 9100 8050 9650 Feb-14 18550 29950 14750 15100 7900 13850 19750 9275 7275 12000 9700 12550 13375 6550 11400 10800

Projected Figures Feb-15 Feb-16 6475 5525 10875 8875 4675 4050 5750 4825 9000 7525 3950 3075 8325 7200 6250 5175 10900 9000 5100 4225 Feb-15 Feb-16 12200 9975 11425 9400 25875 21300 8300 7125 5725 4650 14550 12475 15075 12025 5425 4375 6275 5250 7150 6025 5650 4750 7950 6875 6550 5575 7450 6150 Feb-15 Feb-16 15250 12500 22850 18175 11825 9650 11850 10075 6600 5375 11850 10275 15575 12725 8025 7000 6550 5250 10000 8400 7650 6075 10325 8325 11050 9500 5700 4650 9900 8700 9200 7675

2009 MODELS

2010 MODELS Domestic Cars Buick LaCrosse CX 4D Sedan Cadillac DTS 4D Sedan Chevrolet Cobalt LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 Touring 4D Sedan Chrysler Sebring Touring 4D Sedan Ford Mustang 2D Coupe Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan Ford Focus SE 4D Sedan Import Cars Acura TL 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Galant ES 4D Sedan Nissan Altima 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Trucks BMW X3 XDrive30i 4D SAV Cadillac Escalade 4D Utility AWD Cadillac SRX Luxury 4D Utility AWD Chevrolet Colorado LT Crew Cab 4WD Z85 Chevrolet Equinox LS 4D Utility FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D Utility 4WD Dodge Dakota Bighorn Ext Cab Dodge Grand Caravan SE Wagon Ford Edge SEL 4D Utility Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Flex SEL 4D Utility Honda CR-V LX 4D Utility 4WD Honda Odyssey LX Wagon

Domestic Cars Buick LaCrosse CX 4D Sedan Cadillac DTS 4D Sedan Chevrolet Cruze LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 4D Sedan Chrysler 200 Touring 4D Sedan Ford Mustang 2D Coupe Ford Focus SE 4D Sedan Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan Import Cars Acura TL 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan 2.4 Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Galant ES 4D Sedan Nissan Altima 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Trucks BMW X3 XDrive28i 4D SAC Cadillac Escalade 4D Utility AWD Cadillac SRX Luxury 4D Utility AWD Chevrolet Colorado LT Crew Cab 4WD Z85 Chevrolet Equinox LS 4D Utility FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D Utility 4WD Dodge Grand Caravan Express Wagon Ford Edge SEL 4D Utility Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Flex SEL 4D Utility Honda CR-V LX 4D Utility 4WD Honda Odyssey LX Wagon Honda Pilot EX-L 4D Utility 4WD w/DVD

Feb-14 11950 16650 6350 7450 11450 7950 11700 12850 17750 7700 Feb-14 17600 16550 37850 11300 8150 19800 24800 7900 8800 10100 8500 10400 9200 11100 Feb-14 23400 34950 20900 16750 10475 16475 20900 11150 9400 14900 11450 15675 14975 14950 13700 13050

Projected Figures Feb-15 Feb-16 10550 8900 12900 10725 5625 4875 6675 5750 9775 8250 5350 4225 9925 8675 9975 8300 13425 10950 6650 5325 Feb-15 Feb-16 14450 11925 13925 11600 31225 26125 9675 8350 6925 5725 17300 14675 19200 15450 6575 5475 7225 6150 8075 6875 6925 5850 9200 8050 7525 6550 8925 7525 Feb-15 Feb-16 19075 15800 27850 22750 16775 13800 13525 11800 8300 6725 13500 11775 18025 15200 9500 8300 7600 6150 12150 10275 9250 7550 12850 10400 12325 10875 12025 10250 11550 10075 11150 9450

Domestic Cars Buick LaCrosse CX 4D Sedan Cadillac DTS 4D Sedan Chevrolet Cobalt LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 Touring 4D Sedan Chrysler Sebring LX 4D Sedan Ford Mustang 2D Coupe Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan Ford Focus SE 4D Sedan Import Cars Acura TL 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Galant ES 4D Sedan Nissan Altima 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Trucks BMW X3 XDrive30i 4D SAV Cadillac Escalade 4D Utility AWD Cadillac SRX 4D Utility AWD V6 Chevrolet Colorado LT Crew Cab 4WD Z85 Chevrolet Equinox LS 4D Utility FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D Utility 4WD Dodge Dakota Bighorn Ext Cab Dodge Grand Caravan SE Wagon Ford Edge SEL 4D Utility Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Taurus X SEL 4D Utility FWD Honda CR-V LX 4D Utility 4WD Honda Odyssey LX Wagon

Feb-13 10300 15200 6600 8700 12100 7450 11000 9250 15400 8000 Feb-13 18800 17900 39800 11300 8200 20100 22200 7950 9500 10300 8500 11350 9200 11200 Feb-13 22350 35550 18100 16125 11525 15550 22200 11450 9850 15850 13325 14600 15400 11725 13900 13150

Aug-13 9450 15300 6200 8350 11850 6500 10500 8750 14550 7300 Aug-13 18600 16800 35300 10850 7700 18900 20400 7000 9250 10050 8050 10600 8600 10500 Aug-13 20650 33650 16250 16150 9475 15400 21850 10575 9275 14300 10950 13975 15375 9750 13300 12150

2/10/14 1:50 PM


~…ÛÛÝÛÛÛFebruary 17, 2014

USED CAR NEWS

HPV UCN AD DUE 2014.02.07.ai 1 2/5/2014 9:20:39 AM

Compiled By Jeffrey Bellant

SCAROLA WINS MANHEIM HONOR

Woman of the Year: Susan Scarola, vice chairwoman of DCH Auto Group, receives the Barbara Cox Anthony Automotive Woman of the Year Award from Manheim’s Sandy Schwartz.

Manheim and AutoTrader Group presented its ninth annual Barbara Cox Anthony Automotive Woman of the Year Award to Susan Scarola, vice chairman of DCH Auto Group. This honor is awarded to women who have demonstrated business leadership, community advocacy and a commitment to furthering the automotive industry. Manheim and AutoTrader Group President Sandy Schwartz presented the award during the National Automobile Dealers Association convention. “Susan is an exceptional business leader, innovative thinker and has the passion for delivering an excellent customer experience,” Schwartz said. “She has played a key role in positively influencing the industry, while continuing to shape DCH as one of the leading dealership groups in the country.” Scarola said she was “extremely honored” by the award. “I am especially proud of the ongoing commitment by Manheim and AutoTrader Group to encourage more women to consider careers in this rapidly evolving sector,” she said.

ADESA Donates to NADA Foundation

For the second consecutive year, Joe Verde, president of the Joe Verde Group in San Juan Capistrano, Calif., was the top bidder on a HarleyDavidson motorcycle auctioned by ADESA at the National Automobile Dealers Association Convention. Verde’s winning bid of $27,000 for the 2013 Heritage Softail Classic Anniversary Edition will be added to a $10,000 grant from the National Automobile Dealers Charitable Foundation, which was presented to the Wounded Veterans Initiative of Canine Companions for Independence (CCI). CCI trains companion dogs for wounded veterans, a cause long supported by the nation’s new-car

UCN_18.indd 1

and -truck dealers. The motorcycle was donated by ADESA. Proceeds from the auction and the grant go to the NADA Foundation’s Frank E. McCarthy Memorial Fund. The ADESA auctions have raised $71,000 for the NADA Foundation and CCI. 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

2/10/14 1:25 PM


February 17, 2014ÛÛ�ÛÛ~†

USED CAR NEWS

Disconnected Jottings From Tony Moorby... If you believe, like me, that President Obama is more a Socialist than a Democrat, then he is having considerable success in his administration. He is managing to get more and more people

to fly in the face of the population just because, in his opinion, it’s right to do so. Is that constitutionally correct? Did the (amazingly) wise founding fathers deem this to be acceptable?

Tony Moorby

Ć€É&#x; Ĺ´Ĺ°Ć?3,É&#x;0.,(É&#x;) É&#x;."É&#x;#(/-.,3 Ć€É&#x; ,-#(.É&#x; ,)'É&#x;ŹŚŚšƑŲŰŰŰÉ&#x;) É&#x;É&#x;É&#x; É&#x; /.)').#0 Ć€É&#x; ,0É&#x;-É&#x;Ɖ-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;ŲŰŰŜƑ*,-(. 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;',

dependent on a nanny-state government than we have seen in all this country’s wonderful history, short as it has been. As he pronounced during his recent State of the Union address he’s going to push through his policies without regard to other elected officials’ input or objection, by executive order. Now, I don’t profess to know anything about the intricacies of parliamentary process but it seems to me that our leader is prepared

I’ve said before that a wealthy and well-to-do nation should provide a safety net for those who really need one but should we be making it more worthwhile not to work than to work? The old sense of responsibility that the head of the family would provide for the well being of his or her offspring is evaporating into thin air. All the while, the political public relations machinery in Washington is trying to convince us that the economy is getting better

– compared to what? 2009 or 2010? Let’s compare it to the mid-eighties or nineties. I know you’re going to say that those years were buoyed by a free-flowing, untethered or regulated environment but using the vice grip of this extended recession is no reason to alter what, elementally, put this country where it is in world standing. Let the bankers take some risk, bearing in mind the lessons of the recent past but with the knowledge that there would be no bailouts. At the moment, we have bankers more worried about complying with restrictive regulations and dealing with a myriad of government agencies, than providing the financial fans to turn the embers of a recovery into an inferno of growth. I’ve had first-hand encounters with big banks and the Small Business Administration recently and if a proposal to improve, buy or expand a business doesn’t fall within their formula, then you’ve got more chance of being struck by lightning than making off with a bag of business-building cash.

C R O S S WO R D

Instead of paying people to stay out of work, why not incentivize industry to increase minimum wages through tax rebates or some other mechanism and put real money into the pockets of folks who deserve it? They would spend it and growth could start again – from the bottom up. This is not taking money from the rich to give to the poor – a cure-all that is the belief of our president. The uneven wealth distribution in this country is being fostered by unemployment, not industry barons padding their back pockets. Looking forward, it seems like we’ll have more of the same in the next election cycle. The American conscience will, once again be given that feel-good sense by saying we’re ready to elect a woman

as president. Not that there’s anything wrong with that – I was (and still am) a “Thatcherite.� It’s just that Hilary Clinton is the wrong side of the aisle for me. It doesn’t look like the Republican Party has much to offer as an alternative in any up-coming elections. I know, they’re two years away but the hustings are already up and running. I certainly hope someone comes out of the woodwork to successfully embrace an appeal to right-thinking (pun intended) American families. This administration is starting to look like Vladimir Putin running the Winter Olympics – painting a thin glaze of success over a very shaky construction. If we wanted to flush this lot down the toilet, it probably wouldn’t work.

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

Sponsored by INSURANCE AUTO AUCTIONS

By Miles Mellor

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Across 1. Buick luxury crossover 4. Mercury model 10. Hollywood’s home 11. Crossfire or Pacifica 12. Requests after auto accidents 15. Nissan compact 16. Ford model 17. 18-wheeler 18. Inside prefix 19. Fast-moving (in sales) 21. Four door car 23. 60s Chevy 25. Large family car from VW 28. Recently produced for the first time

29. Philosopher’s study 32. Southwestern state, for short 33. Cube material 34. MDX maker 36. Black or white. for example 37. Alternative to own 38. Mazda model 40. Amanti is one 41. Perform as expected 43. In the direction of 44. VW seven seater 45. Former German luxury care ___bach 46. First word of the Constitution

1. A Cadillac 2. It’s offered as a freebie by some dealers (2 words) 3. Metal corrosion 5. Promo 6. Turn over, of an engine 7. Lotus car model 8. “Guts, glory� truck 9. Kia minivan 13. Toyota brand 14. Hynudai model 16. Santa ___ 17. Car pronoun 20. Electric car making waves 21. Checked out 22. He produced the first high speed internal combustion engine 24. First letter the C70’s brand 26. Hyundai model 27. F150 and Toyota Tundra

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Answers to this puzzle in the 3/3/14 issue. Call 1.800.794.0760 for a FREE subscription.

UCN_19.indd 1

2/10/14 1:23 PM


‡ÛÝÛÛFebruary 17, 2014

USED CAR NEWS

MONTHLY DEALER CONSIGNMENT AVERAGES AVG SALE PRICE AVG. MILEAGE

AVG SALE PRICE AVG. MILEAGE

COMPACT CAR Jan 2013 $5,919 97,240

LUXURY CAR Jan 2013 $4,594

Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 Nov 2013 Dec 2013 YTD AVG:

Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 Nov 2013 Dec 2013 YTD AVG:

$5,972 $6,277 $6,127 $6,031 $5,955 $5,884 $5,731 $5,490 $5,382 $5,510 $5,572 $5,837

98,127 97,157 98,399 98,817 98,629 99,036 99,188 101,854 102,375 100,375 100,049 99,207

AVG SALE PRICE AVG. MILEAGE

$4,534 $4,930 $4,810 $4,678 $4,525 $4,592 $4,568 $4,477 $4,269 $4,499 $4,644 $4,594

106,652 107,620 107,912 110,372 109,517 108,634 108,592 106,227 107,029 108,755 105,485 104,796 107,759

AVG SALE PRICE AVG. MILEAGE

AVG SALE PRICE AVG. MILEAGE

PICKUP Jan 2013 $4,594 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 Nov 2013 Dec 2013 YTD AVG:

$4,534 $4,930 $4,810 $4,678 $4,525 $4,592 $4,568 $4,477 $4,269 $4,499 $4,644 $4,594

AVG SALE PRICE AVG. MILEAGE

FULLSIZE CAR Jan 2013 $4,594 106,652

MIDSIZE CAR Jan 2013 $4,594 106,652

SPORTS CAR Jan 2013 $4,594

Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 Nov 2013 Dec 2013 YTD AVG:

Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 Nov 2013 Dec 2013 YTD AVG:

Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 Nov 2013 Dec 2013 YTD AVG:

$4,534 $4,930 $4,810 $4,678 $4,525 $4,592 $4,568 $4,477 $4,269 $4,499 $4,644 $4,594

107,620 107,912 110,372 109,517 108,634 108,592 106,227 107,029 108,755 105,485 104,796 107,759

$4,534 $4,930 $4,810 $4,678 $4,525 $4,592 $4,568 $4,477 $4,269 $4,499 $4,644 $4,594

107,620 107,912 110,372 109,517 108,634 108,592 106,227 107,029 108,755 105,485 104,796 107,759

106,652 107,620 107,912 110,372 109,517 108,634 108,592 106,227 107,029 108,755 105,485 104,796 107,759

$4,534 $4,930 $4,810 $4,678 $4,525 $4,592 $4,568 $4,477 $4,269 $4,499 $4,644 $4,594

106,652 107,620 107,912 110,372 109,517 108,634 108,592 106,227 107,029 108,755 105,485 104,796 107,759

SUV Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 Nov 2013 Dec 2013 YTD AVG:

VAN Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 Nov 2013 Dec 2013 YTD AVG:

AVG SALE PRICE AVG. MILEAGE

$4,594 $4,534 $4,930 $4,810 $4,678 $4,525 $4,592 $4,568 $4,477 $4,269 $4,499 $4,644 $4,594

106,652 107,620 107,912 110,372 109,517 108,634 108,592 106,227 107,029 108,755 105,485 104,796 107,759

AVG SALE PRICE AVG. MILEAGE

$4,594 $4,534 $4,930 $4,810 $4,678 $4,525 $4,592 $4,568 $4,477 $4,269 $4,499 $4,644 $4,594

106,652 107,620 107,912 110,372 109,517 108,634 108,592 106,227 107,029 108,755 105,485 104,796 107,759

B:19” T:19” S:19”

YOU’RE NOT WILLING TO SETTLE FOR UNHAPPY CUSTOMERS AND LOWER PROFITS.

©2014 AutoTrader.com, Inc. All Rights Reserved. “AutoTrader.com” is a registered trademark of TPI Holdings, Inc. used under exclusive license.

89299_AT_AT4-671.indd 1 UCN_20-21.indd 1

FS:9.25” F:9.5”

2/10/14 1:34 PM


February 17, 2014ÛÛÝÛÛ~

USED CAR NEWS

Kelley Blue Book 5-Year Cost to Own Awards

B:19” T:19” S:19”

Fixya Test of Time Report

SUBCOMPACT CAR: Chevrolet Spark COMPACT SUV/CROSSOVER: Jeep Patriot COMPACT CAR: Toyota Corolla MID-SIZE SUV/CROSSOVER: Mitsubishi Outlander SPORTY COMPACT CAR: Hyundai Veloster Turbo FULL-SIZE SUV/CROSSOVER: Ford Explorer MID-SIZE CAR: Honda Accord LUXURY COMPACT SUV/CROSSOVER: Buick Encore FULL-SIZE CAR: Chevrolet Impala LUXURY MID-SIZE SUV/CROSSOVER: Lincoln MKX ENTRY-LEVEL LUXURY CAR: Buick Verano LUXURY FULL-SIZE SUV/CROSSOVER: Buick Enclave LUXURY CAR: Audi A5 MID-SIZE PICKUP TRUCK: Toyota Tacoma Double Cab HIGH-END LUXURY CAR: Lexus LS FULL-SIZE PICKUP TRUCK: GMC Sierra 1500 Regular Cab SPORTS CAR: Ford Mustang MINIVAN/VAN: Dodge Grand Caravan Passenger HIGH-PERFORMANCE CAR: Chevrolet Camaro SS/ZL1 HYBRID SUV/CROSSOVER: Lexus RX HYBRID/ALTERNATIVE ENERGY CAR: Toyota Prius c PLUG-IN VEHICLE: Chevrolet Spark EV

The Fixya Test of Time Report covers the Toyota Camry, Honda Civic, Honda Accord, Toyota Corolla, and Ford Focus car lines, with the Toyota Camry proving itself the most reliable car by having the lowest problem-to-cars sold ratio. The Test of Time rankings for this report are as follows, along with the most standout issue, from best to worst:

These are the top five problems for each line of sedans in the Fixya Test of Time Report, as well the number of troubleshooting requests attributed to that specific problem.

Top 5 Toyota Camry Issues: 1. Gas Pedal/Acceleration — 43,000 2. Brake lights — 30,500 3. Power Steering — 24,000 4. Electrical System — 18,250 5. Windows — 18,000 Top 5 Ford Focus Issues: 1. Power Steering — 73,500 2. Headlights — 34,500 3. Door Issues — 33,750 4. Electrical System — 33,000 5. Break Lights — 11,000

Top 5 Honda Accord Issues: 1. Transmission — 74,000 2. Headlights — 37,250 3. Power Steering — 36,750 4. Fuel Pump — 28,250 5. Electrical System — 18,500 Top 5 Honda Civic Issues: 1. Brake lights — 35,750 2. Brakes — 23,500 3. Electrical System — 16,750 4. Dashboard — 13,250 5. Headlights — 10,500 Top 5 Toyota Corolla Issues 1. Gas Pedal/Acceleration — 63,250 2. Brakes — 42,500 3. Engine — 41,000 4. Electrical System — 33,000 5. Power Steering — 31,750

DONE.

T:6.125”

That’s why many dealers use AutoTrader.com’s Trade-In Marketplace. This

unique tool helps you make the most out of every customer interaction through our Instant Cash Offer. The more you help your customers understand how you determine trade-in prices, the more likely they are to transact and walk away happy. To learn more, just visit TIMfordealers.AutoTrader.com

2/7/14 3:20 PM UCN_20-21.indd 2

F:9.5”

2/10/14 3:51 PM

B:6.125”

S:6.125”

ONLY 37% OF TRADE-IN CUSTOMERS ARE HAPPY WITH THE PROCESS.


Û�ÛÛFebruary 17, 2014

USED CAR NEWS

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

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2/10/14 1:14 PM


USED CAR NEWS

Special Advertising Section

TECHNOLOGY

Spotlight AutoRaptor CRM ................................................................37 AutoSave/Charter Warranty ............................................ 26 Autotrader.com ......................................................... 23 & 39 AutoTrader.com’s Trade-In Marketplace ......... 20, 21, 24 Car Financial Services ........................................... 25 & 26 FEX DMS . ....................................................................28 & 31 Frazer Computing .............................................................. 25 Go Financial .............................................................. 30 & 36

February 17, 2014ÛÛÝÛÛ€

Use the Internet to Level the Playing Field There’s a misconception that dealers bombarded with advertising mes“of a certain size” can’t compete against sages everywhere they go. To make large dealer operations on the Internet, the biggest impact, your message needs especially on third-party sites. to be consistent across all media – The truth of the matter is that shopon radio and TV, newspaper, direct pers don’t discriminate online between mail, on your lot. large-, mid- or small-size dealers, or 4. Details, details, details In addition whether they’re a franchise or indeto the year, make, model, trim level, pendent. Shoppers are looking for the mileage and body type you should best value. always include in your listings, take Site statistics on AutoTrader.com another 15 minutes to write comments show that dealers with small amounts that a shopper can relate to in terms of inventory see the same shopper acof their lifestyle and personality. For tivity on their listings as large dealers.1 example, “You’ll love how little it costs If you want to compete with big dealers, to run this fuel-sipper, plus the trunk know that you don’t need a big budget. holds a week’s worth of luggage.” You just need to act like them.To get 5. Make sure the price is right – an idea of what you need to do make listings with a price and photos get your online presence more competitive, 52% more vehicle details page views use these tried-and-true tactics from than listings without a price. top-performing dealers who generate It’s one of the most important pieces the most activity on their listings on of merchandising. If your price is too AutoTrader.com. high, you risk alienating shoppers Remember, to compete you don’t altogether; too low, your profitability have to be big – you just have to level is at stake. There are tools available the playing field. to help you price your inventory so 7 Ways You Can Use the Internet that it’s competitive in your market. to Level the Playing Field 6. Promote specials – three-quarters 1. Find out what your competitors of shoppers consider special offers are doing by performing weekly when choosing to buy a car from searches on AutoTrader.com and a dealer.2 Make sure your specials other sites to understand the com- are loud and clear. Promote financpetitive landscape. ing options (if you offer them), “no 2. Understand what kinds of cars haggle” sales, and any special offers are in demand in your local market that you are running. and make adjustments. If you’re heavy 7. Use ACTUAL photos and more in pickups but your market wants photos both exterior and interior. minivans, do what you need to do to Listings with multiple photos of the make it work for your market. The actual car increase Vehicle Details longer you hold on to inventory that’s Pages views by 442%!1 not in demand, the more it costs you. For more tips that will take you from There are stocking tools available “competitive” to “leader of the pack,” to help you. visit we workforyou.com/sarah. 1 3. Make sure your marketing Source: AutoTrader.com Site Statistics, Jan-Aug 2012 message is consistent in all of 2Source: Automotive News your advertising. Consumers are

Gordon Howard/Passtime ...................................... 28 & 36 GWC Warranty Corporation ............................................ 33 NextGear Capital ..................................................... 32 & 35 Northland .................................................................. 34 & 38 Payteck Technologies ............................................ 34 & 38 Small Dealers Assistance ..................................... 36 & 37 Spireon ...................................................................... 29 & 30 Store Supply Warehouse, LLC ........................................ 38 The Advertising Department, INC ......................... 27 & 34 United Acceptance ................................................. 32 & 33

File Name: ATC 3 spot cl-white bkg -flat oval.eps

Vehicle Acceptance ......................................................... 38

UCN_23.indd 1

2/10/14 2:50 PM


USED CAR NEWS

Special Advertising Section

TECHNOLOGY

Spotlight AutoRaptor CRM ................................................................37 AutoSave/Charter Warranty ............................................ 26 Autotrader.com ......................................................... 23 & 39 AutoTrader.com’s Trade-In Marketplace ......... 20, 21, 24 Car Financial Services ........................................... 25 & 26 FEX DMS . ....................................................................28 & 31 Frazer Computing .............................................................. 25 Go Financial .............................................................. 30 & 36

February 17, 2014ÛÛÝÛÛ€

Use the Internet to Level the Playing Field There’s a misconception that dealers bombarded with advertising mes“of a certain size” can’t compete against sages everywhere they go. To make large dealer operations on the Internet, the biggest impact, your message needs especially on third-party sites. to be consistent across all media – The truth of the matter is that shopon radio and TV, newspaper, direct pers don’t discriminate online between mail, on your lot. large-, mid- or small-size dealers, or 4. Details, details, details In addition whether they’re a franchise or indeto the year, make, model, trim level, pendent. Shoppers are looking for the mileage and body type you should best value. always include in your listings, take Site statistics on AutoTrader.com another 15 minutes to write comments show that dealers with small amounts that a shopper can relate to in terms of inventory see the same shopper acof their lifestyle and personality. For tivity on their listings as large dealers.1 example, “You’ll love how little it costs If you want to compete with big dealers, to run this fuel-sipper, plus the trunk know that you don’t need a big budget. holds a week’s worth of luggage.” You just need to act like them. To get 5. Make sure the price is right – an idea of what you need to do to make listings with a price and photos get your online presence more competitive, 52% more vehicle details page views use these tried-and-true tactics from than listings without a price. top-performing dealers who generate It’s one of the most important pieces the most activity on their listings on of merchandising. If your price is too AutoTrader.com. high, you risk alienating shoppers Remember, to compete you don’t altogether; too low, your profitability have to be big – you just have to level is at stake. There are tools available the playing field. to help you price your inventory so 7 Ways You Can Use the Internet that it’s competitive in your market. to Level the Playing Field 6. Promote specials – three-quarters 1. Find out what your competitors of shoppers consider special offers are doing by performing weekly when choosing to buy a car from searches on AutoTrader.com and a dealer.2 Make sure your specials other sites to understand the com- are loud and clear. Promote financpetitive landscape. ing options (if you offer them), “no 2. Understand what kinds of cars haggle” sales, and any special offers are in demand in your local market that you are running. and make adjustments. If you’re heavy 7. Use ACTUAL photos and more in pickups but your market wants photos both exterior and interior. minivans, do what you need to do to Listings with multiple photos of the make it work for your market. The actual car increase Vehicle Details longer you hold on to inventory that’s Pages views by 442%!1 not in demand, the more it costs you. For more tips that will take you from There are stocking tools available “competitive” to “leader of the pack,” to help you. visit we workforyou.com/sarah. 1 3. Make sure your marketing Source: AutoTrader.com Site Statistics, Jan-Aug 2012 message is consistent in all of 2Source: Automotive News your advertising. Consumers are

Gordon Howard/Passtime ...................................... 28 & 36 GWC Warranty Corporation ............................................ 33 NextGear Capital ..................................................... 32 & 35 Northland .................................................................. 34 & 38 Payteck Technologies ............................................ 34 & 38 Small Dealers Assistance ..................................... 36 & 37 Spireon ...................................................................... 29 & 30 Store Supply Warehouse, LLC ........................................ 38 The Advertising Department, INC ......................... 27 & 34 United Acceptance ................................................. 32 & 33

File Name: ATC 3 spot cl-white bkg -flat oval.eps

Vehicle Acceptance ......................................................... 38

UCN_23.indd 1

2/10/14 4:18 PM


24ÛÛÝÛÛFebruary 17, 2014

Special Advertising Section

USED CAR NEWS

Trade-In Marketplace Tool Improves the Trade-In Process Sales are up in the automotive industry. As more shoppers turn into buyers, dealers will need to pay particularly close attention to trade-ins. AutoTrader.com® has released a white paper entitled “Maximizing the Trade-In Process,” detailing how dealers can align valuation tools and in-store processes to reduce risk, enhance the customer experience, improve overall margins and facilitate transactional conversations. “In an industry with tight profit margins, every element of the transaction is important, but the trade-in is arguably one of the most tenuous portions for dealers,” said Juan Flores, director of operations for AutoTrader. com’s Trade-In Marketplace. “As sales continue to pick up, dealers can expect more trade-ins, making it critical to mitigate risk and improve their processes.” The white paper is based on research conducted with dealers and consumers who have

taken advantage of AutoTrader. com’s Trade-In Marketplace, which enables consumers to get an instant offer on their used cars, sight unseen. Consumers can generate an offer on their vehicle online via AutoTrader. com, KBB.com®, on participating dealer websites, or in-store at a participating dealership. To be a participating dealer in the Trade-In Marketplace program, dealers pay a monthly subscription that gives them access to consumers who generate an instant cash offer through the tool. The offer is valid for 72 hours, and takes into account an extensive set of parameters, including VIN-specific information, details about the condition of the car and the impact of the specific vehicle’s history and after-market equipment. If the vehicle’s condition is accurately represented, the consumer can walk away with a check or use it toward the purchase of another vehicle. AutoTrader.com research shows that only 37 percent of consumers are satisfied with the trade-in process. 1 However, as information in the white paper shows, the Trade-In Marketplace

1 2012 Morpace/AutoTrader.com can increase consumer satisfacTo access the full white paper, Dealership Experience Study 2 tion. According to a survey of visit the Dealer Learning Center, 2012 KS&R/AutoTrader.com TradeTrade-In Marketplace users, 77 an online educational site, at In Marketplace User Study percent of offer redeemers are www.DealerLearningCenter.com. willing to recommend the tool and use it again in the future. 2 Two out of three felt the tool was valuable in helping them negotiate and improved their interactions at the dealership.2 In addition to improving the BUYERS’ LEVEL OF SATISFACTION consumer experience, the TradeIn Marketplace helps dealers Online improve their store’s overall margins and mitigate inven76% tory risk, according to focus Offline group research. With its realtime market view and valua63% 62% tion process, the tool takes the 57% 56% 52% guesswork out by providing an 47% offer that is specific to the par43% ticular vehicle and its condition. 37% Because of this, dealers are able to acquire inventory at a price point that allows for sufficient investment in the reconditioning and marketing needed to Researching Searching Finding Finding the Finding Negotiating Filling out Applying for Receiving successfully retail the vehicle. vehicle dealership info on best the right a purchase paperwork financing a trade-in If the the dealer chooses not features & inventory incentives, deal/price dealership price offer options specials & to retail it, they can liquidate rebates it through traditional auctions Diagram B Car buyers report lower satisfaction with car-shopping activities that or through AutoTrader.com’s traditionally have occurred in the offline store environment. According to the third-party vendor for the full survey, they are more satisfied with filling out paperwork and applying for amount of the offer, or sell it financing than receiving a trade-in offer. to a wholesaler, which helps Source: 2012 Morpace/AutoTrader.com Dealership Experience Study reduce inventory risk.

TRADE-IN MARKETPLACE CAN HELP IMPROVE THE DROP-OFF IN CUSTOMER SATISFACTION

Visit the Used Car News YouTube channel for educational and informative videos from our partners as well as original content from the UCN staff.

UCN_24.indd 1

2/10/14 3:45 PM


Special Advertising Section

USED CAR NEWS

February 17, 2014ÛÛÝÛÛ‚

Frazer Reaches Milestone Frazer Computing reached yet another milestone in January as the number of dealers using the Frazer Dealer Management Software (DMS) rose above the 11,000 mark. Frazer provides a full featured DMS to used car dealers in all 50 states. “Frazer Computing has a rather unique formula for our industry. We combine a powerful product with outstanding service at an exceptional price,” said Michael Frazer, president. “It’s a business philosophy that has worked extremely well for us over the years, and dealers around

the country continue to respond amazingly well to it.” Over 3,000 dealers purchased the Frazer DMS in 2013. “We just programmed our fifty thousandth form. We integrate with 12 finance companies. Our software provides automatic vehicle and photo uploading to 106 different online inventory management and marketing systems. That number continues to climb. “It’s all very exciting around here.” For more information on Frazer Dealer Management Software go to www.Frazer.com

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

Toll Free 1-888-963-5369

www.Frazer.biz

UCN_25.indd 1

2/10/14 9:56 AM


26ÛÛÝÛÛFebruary 17, 2014

Special Advertising Section

USED CAR NEWS

Capital and Customer Service Autosave and E-Credit Express Products Add to Your Bottom Line Industry Professionals All dealers know that the biggest hurdle to entry into the buy-here, pay-here industry is the need for capital. Whether for the purchase of inventory, the financing of customers, or for operational cash flow, capital is number one on every dealers list. While access to capital remains more difficult for the buy-here, pay-here industry, CAR Financial Services continues to support dealers’ short and long term capital needs by maintaining a focus specific to the buy-here, pay-here marketplace using a comprehensive suite of services designed to support dealers through the infusion of capital. Whether you are new to the buy-here, pay-here business or you are looking to expand your current buy-here, pay-here operations, CAR Financial Services can design a program to meet your needs. These programs include: s "ULK PURCHASING OF BOTH RETAIL OR lease receivables s 0URCHASING OF PAYMENT STREAMS TO meet short term cash needs s 3ERVICING OF PORTFOLIOS FOR DEALERS and finance companies s &LOORPLANSFORTHEBUY HERE PAY HERE industry, including a seamless

UCN_26.indd 1

floorplan to retail program s 0OINTOFSALEOPTIONSFORBUY HERE PAY here dealers using CAR’s capital to establish your portfolio. CAR Financial has a proven track record OFOVERYEARSINTHE"(0(INDUSTRY and can help you survive these difficult economic times by customizing a purchase/service program that meets your needs while providing quality service through a single dealer point of contact that is located near your dealership. CAR Financial strives to understand your day to day business so that they can structure a program designed to meet your long term goals and objectives. Whether purchasing a stream of payments, purchasing all or part of your accounts outright, or simply servicing your buy-here, pay-here portfolio, the trusted professionals at CAR Financial are interested in working with you to meet your dealership needs. CAR Financial operates in 45 States and is continually evolving its programs to meet the ever changing needs the buyhere, pay-here market. Interested in more information on CAR Financial Services’ programs and services? Go to www.carfinancial.com or call 877-570-8857.

Autosave, the Original 5 year/100,000 Mile Warranty Company, has over 180 agents throughout the U.S. and Canada that represent and sell our industry leading programs and platforms to dealers. Autosave has added 1- and 3-year warranty terms with additional coverage for air conditioning, electrical, seals and gaskets, which make a larger profit center for the dealer.

sales personnel at Autosave dealers receive a cash reward for their sales on a monthly basis. A u t o s a v e ’s s i s t e r c o m p a n y E-CreditExpress (www.ecreditexpress. com) has products that make all dealers red flag and OFAC compliant. E-CreditExpress GUARANTEES electronic forms compliance in all 50 states with state specific e-forms TM

The competitive pricing structure of these warranty products, e-contracting and the ability to accept online payments from dealers has made Autosave the industry leader in this market. Claims payments are made electronically to the repair facility. All Autosave warranty programs include e-contracting, marketing materials, interior signage and outdoor banners for the dealer to display.

that include all required initials and signatures – without the costly need for electronic pads or pens. E-CreditExpress’s electronic forms are 100% compliant in every jurisdiction – with a million dollar guarantee! E-Credit warrants that each deal submitted through its platform is 100% compliant each time a deal is submitted to a lender – no more deals kicked back – INCREASE YOUR SALES IMMEDIATLEY! Autosave supports our dealers in all facets of the industry with warranty product training, program Autosave is the industry leader in training, claims and customer relations. dealer sales rewards with the “Dealer Call 800-684-1175 for more informaCash Back Program” where enrolled tion on these programs.

2/10/14 11:57 AM


26ÛÛÝÛÛFebruary 17, 2014

Special Advertising Section

USED CAR NEWS

Capital and Customer Service Autosave and E-Credit Express Products Add to Your Bottom Line Industry Professionals All dealers know that the biggest hurdle to entry into the buy-here, pay-here industry is the need for capital. Whether for the purchase of inventory, the financing of customers, or for operational cash flow, capital is number one on every dealers list. While access to capital remains more difficult for the buy-here, pay-here industry, CAR Financial Services continues to support dealers’ short and long term capital needs by maintaining a focus specific to the buy-here, pay-here marketplace using a comprehensive suite of services designed to support dealers through the infusion of capital. Whether you are new to the buy-here, pay-here business or you are looking to expand your current buy-here, pay-here operations, CAR Financial Services can design a program to meet your needs. These programs include: s "ULK PURCHASING OF BOTH RETAIL OR lease receivables s 0URCHASING OF PAYMENT STREAMS TO meet short term cash needs s 3ERVICING OF PORTFOLIOS FOR DEALERS and finance companies s &LOORPLANSFORTHEBUY HERE PAY HERE industry, including a seamless

UCN_26.indd 1

floorplan to retail program s 0OINTOFSALEOPTIONSFORBUY HERE PAY here dealers using CAR’s capital to establish your portfolio. CAR Financial has a proven track record OFOVERYEARSINTHE"(0(INDUSTRY and can help you survive these difficult economic times by customizing a purchase/service program that meets your needs while providing quality service through a single dealer point of contact that is located near your dealership. CAR Financial strives to understand your day to day business so that they can structure a program designed to meet your long term goals and objectives. Whether purchasing a stream of payments, purchasing all or part of your accounts outright, or simply servicing your buy-here, pay-here portfolio, the trusted professionals at CAR Financial are interested in working with you to meet your dealership needs. CAR Financial operates in 45 States and is continually evolving its programs to meet the ever changing needs the buyhere, pay-here market. Interested in more information on CAR Financial Services’ programs and services? Go to www.carfinancial.com or call 877-570-8857.

Autosave, the Original 5 year/100,000 Mile Warranty Company, has over 180 agents throughout the U.S. and Canada that represent and sell our industry leading programs and platforms to dealers. Autosave has added 1- and 3-year warranty terms with additional coverage for air conditioning, electrical, seals and gaskets, which make a larger profit center for the dealer.

sales personnel at Autosave dealers receive a cash reward for their sales on a monthly basis. A u t o s a v e ’s s i s t e r c o m p a n y E-CreditExpress (www.ecreditexpress. com) has products that make all dealers red flag and OFAC compliant. E-CreditExpress GUARANTEES electronic forms compliance in all 50 states with state specific e-forms TM

The competitive pricing structure of these warranty products, e-contracting and the ability to accept online payments from dealers has made Autosave the industry leader in this market. Claims payments are made electronically to the repair facility. All Autosave warranty programs include e-contracting, marketing materials, interior signage and outdoor banners for the dealer to display.

that include all required initials and signatures – without the costly need for electronic pads or pens. E-CreditExpress’s electronic forms are 100% compliant in every jurisdiction – with a million dollar guarantee! E-Credit warrants that each deal submitted through its platform is 100% compliant each time a deal is submitted to a lender – no more deals kicked back – INCREASE YOUR SALES IMMEDIATELY! Autosave supports our dealers in all facets of the industry with warranty product training, program Autosave is the industry leader in training, claims and customer relations. dealer sales rewards with the “Dealer Call 800-684-1175 for more informaCash Back Program” where enrolled tion on these programs.

2/10/14 4:23 PM


Grow Your Business The SAFCo Way Turn Your Customersâ&#x20AC;&#x2122; Credit Into Funded Deals Now and Even More Down The Road!

SAFCo is a national leader in special finance because we do sub-prime differently. Consider our Credit Builder program â&#x20AC;&#x201C; itâ&#x20AC;&#x2122;s an innovative way to grow your business today, and build your customersâ&#x20AC;&#x2122; credit for even more business tomorrow. Every deal you fund with SAFCo earns your dealership SAFCo Bucks. These can be redeemed for term extensions, rate buydowns and lower payoffs, dramatically improving your closing ratio. Plus, since SAFCo works with your customers to rebuild their credit, we send them back to your dealership â&#x20AC;&#x201C; and your dealership only â&#x20AC;&#x201C; with more purchasing power than ever. Call us today or visit us online to learn more about what SAFCoâ&#x20AC;&#x2122;s Credit Builder program can do to grow your business.

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Finding a way for our dealers and their customers

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12/17/13 3:36 PM

2/6/14 4:47 PM


28Ă&#x203A;Ă&#x203A;Ă?Ă&#x203A;Ă&#x203A;February 17, 2014

Special Advertising Section

USED CAR NEWS

FEX DMSâ&#x20AC;&#x201D;the industry standard for collections management, inventory control and compliance In todayâ&#x20AC;&#x2122;s dealership environment, solutions to issues are crucial and need to be compliance-driven. FEX DMS identifies the best technologies to effectively increase a dealershipâ&#x20AC;&#x2122;s control and productivity. They continually ensure those technologies will work well into the future, allowing dealers to concentrate on producing revenueâ&#x20AC;&#x201D; not maintaining software. FEX DMS is the state-of-the-industry used car dealer software solutionâ&#x20AC;&#x201D; comprised of feature rich inventory management, sales, customer and lead tracking tools, along with powerful custom reporting and data exporting capabilities. The uniquely integrated and cross-platform compatible modules are each priced separately, accommodating both the small dealer or wholesalerâ&#x20AC;&#x201D;and the largest buyhere-pay-here dealer. Modules include: DMS, lender portal, BHPH with accounting, real time website management, and inventory syndication to paid and free listing sites. When a dealer signs up, they have immediate access to the FEX DMS package. From there, the dealer has the freedom to add one of our other powerful modules: FEX BHPH, FEX Lenders and/or Accounting Integration. FEX DMS also offers a wide array of integration solutions ranging from vehicle valuations to credit card/ACH payment processing â&#x20AC;&#x201C; all of which can be added to the dealers

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account as needed. Dealers who switch to FEX DMS quickly discover the convenience of the first 100% Internet-based DMS on the market. There are no disks to install, no hardware to buyâ&#x20AC;Śall updates are made in real time. The platform makes it easy and intuitive to manage your dealership, not your software. Integration with well-known, Tier 1 forms vendors allows the dealer to print all required contracts, documents and forms to plain paper. FEX DMS maintains the industry standard for collections management, inventory control and compliance. Since each module is tightly integrated, the queue technology extends inventory description and distribution to comprehensive portfolio management. The queue feature allows dealers to configure which reporting and data elements are important to review at a dashboard level, in real time. MY FEX ACCOUNT extends the EPS payment functionality to allow customers the ability to make payments online in a secure environment. Customers can view and print receipts as well as review balances. The FEX DMS EPS solution is a full-service automated debit and credit system Originally Finance Express, the application connected lenders and dealers. The lender portal is still a component of the FEX DMS and is integrated with many lenders, including Route

One. The FEX DMS system is built to seamlessly interact with most web service applications, including CRM and service department management. FEX DMS has a robust inventory management engine, including Internet Lead Management. Leads from Auto Boing and others are filtered directly through the management system, including follow-up leads and customer communications. FEX DMS is the result of over 20 years of research and testing in a wide variety of dealerships. The system is continually evolving to meet the ever growing demands of industry regulation and dealership efficiency. FEX DMS users will never have to install any updates and is guaranteed to be using the latest version at all times. FEX DMS data is continuously archived eliminating any need for manual backups. Key Features Ć&#x20AC;É&#x;)É&#x; )(.,.-É&#x; .)É&#x; -#!(ĹťÉ&#x; ')(."Ć?.) month agreement Ć&#x20AC;É&#x;,%É&#x; &&É&#x; #(0(.),3É&#x; #(&/#(!É&#x; multiple locations, sales and receivables â&#x20AC;&#x201C; online, real-time Ć&#x20AC;É&#x;É&#x;,)/-.É&#x; É&#x;),É&#x;&&)1-É&#x;3)/ to quickly and accurately add and describe inventory Ć&#x20AC;É&#x;*&)É&#x;(É&#x;-.),É&#x;/(&#'#.É&#x;#'!Ć&#x20AC;É&#x;Ć&#x2019;/.)'.É&#x;#&#(!É&#x; (.!,.#)( Ć&#x20AC;É&#x;(,.É&#x;)'*,"(-#0É&#x;1#()1 stickers with categorized technical specs and equipment

FOUND IT.

Ć&#x20AC;É&#x;,#(.É&#x;)'*&#(.É&#x;É&#x;/3,-É&#x;/#Ć&#x20AC;É&#x;--É&#x;.)É&#x;0"#&É&#x;0&/.#)(-É&#x;Ć&#x2DC;Ƣŝ É&#x; &%É&#x;))%ƢŝÉ&#x; &&3É&#x;&/É&#x;))%Ƣŝ É&#x; (É&#x; ƢĆ&#x2122; Ć&#x20AC;É&#x; (.!,.É&#x;, 2ƢÉ&#x;(É&#x;/.)"%Ƣ reports Ć&#x20AC;É&#x; (.!,.É&#x;É&#x;&!É&#x;-)&/.#)(Ć&#x20AC;É&#x;,.É&#x;(É&#x;)'*,É&#x;'/&.#*&É&#x;1),% sheets per applicant Ć&#x20AC;É&#x;*.É&#x; -/,É&#x; )(&#(É&#x; ,#.É&#x; applications and receive instant notification via email or alert Ć&#x20AC;É&#x;)1, /&É&#x; É&#x; (!'(.É&#x;3-.' É&#x; Ć&#x2DC; Ć&#x2122;É&#x;&&)1-É&#x;3)/É&#x;.)É&#x;%*É&#x;.,%É&#x;) all incoming leads and sources Ć&#x20AC;É&#x;,)*,#.,3É&#x;-/,#.3É&#x;')/&-É&#x;&&)1you to establish login restrictions É&#x; ),É&#x;3)/,É&#x;/-,-É&#x;Ć&#x2DC;3ĹťÉ&#x;.#'É&#x;(É&#x; ./,-Ć&#x2122; Ć&#x20AC;É&#x;2Ć&#x201D;'#&É&#x;)/'(.-É&#x;#,.&3É&#x; ,)' the system Ć&#x20AC;É&#x;)1(&)É&#x; /.#)(Ć?*/,"- vehicles directly into system Ć&#x20AC;É&#x;&.,)(#É&#x;ĹŚ&#(!É&#x;#(.É&#x;Ć&#x2DC;#(.Ć&#x2122; Ć&#x20AC;É&#x;#1É&#x;(É&#x;-.),É&#x;,#.É&#x;,*),.Ć&#x20AC;ɢ.#&É&#x;)(&#(É&#x;.,#(#(!É&#x;&(, taught by subject matter experts Ć&#x20AC;É&#x;)É&#x;"/!É&#x;/* ,)(.É&#x; -É&#x;(É&#x;.3*#&&3 requires no additional hardware purchases. FEX DMS is the perfect solution for /3É&#x;,ĹťÉ&#x;3É&#x;,É&#x;Ć&#x2DC;Ć&#x2122;É&#x;),É&#x;*#&É&#x; Finance dealerships. Call FEX DMS .É&#x;Ć&#x2DC;ŚŴŚĆ&#x2122;É&#x;ŜųžĆ?žŸŚŲÉ&#x;),É&#x;&)!É&#x;)(É&#x;.)É&#x;111Ĺş FEXDMS.com to discover feature rich inventory management, sales, customer and lead tracking tools, along with powerful reporting.

Improve Customer Payment Performance and Reduce Repossession Risks. If It Runs on PassTime, It Doesnâ&#x20AC;&#x2122;t Run Away.

CALL 1-800-828-1564 passtimeusa.com

UCN_28.indd 1

2/10/14 3:39 PM


Take the Guesswork out of Tax Season.

GoldStar GPS’ Award-Winning Platform Goes Beyond Typical GPS Tracking GoldStar GPS has long been the choice for dealers trying to lower their risks in subprime lending. More than a GPS tracking system, GoldStar GPS is a complete collateral management solution. And now, just in time for tax season, we’re introducing flexible new GoldStar GPS packages designed to fit your needs including: • Basic, Affordable Vehicle Locator package or our Feature-Rich, Comprehensive package • The industry’s highest performing Talon GPS tracking device — ready to ship now • Gold Standard Service you’ve come to depend on and more Take advantage of tax season risk-free with GoldStar GPS.

Schedule a free demo today at GoldStarGPS.com/gps-riskfree or call 1-866-655-8825

Spireon captures the Automotive – Buy Here Pay Here Finance and Specialty Solution A-list in M2M award! – 2014 Compass Intelligence Mobility Awards

©2014 Spireon, Inc. All Rights Reserved.

UCN_29.indd 1

2/7/14 12:56 PM


30Ă&#x203A;Ă&#x203A;Ă?Ă&#x203A;Ă&#x203A;February 17, 2014

Special Advertising Section

USED CAR NEWS

Mitigate Your Risk this Tax Season with Collateral Management With tax season quickly approaching, dealerships are busy building up inventory of quality used cars, and increasing staff as they prepare for the influx of business during tax season. However, industry trends show that an increasing number of car buyers are coming into dealerships with credit challenges â&#x20AC;&#x201D; an after-effect of the economic recession, foreclosures, loss of jobs and homes, and bankruptcies. Unfortunately, these folks canâ&#x20AC;&#x2122;t qualify for traditional auto loans. To meet the demand, dealers and lenders are going increasingly deeper by offering subprime auto loans â&#x20AC;&#x201D; the deeper the loan, the higher the risk. One way to meet the needs of creditchallenged buyers, while still protecting your investment, is by adding an automotive collateral management platform into the loan process. Collateral management not only helps dealers and lenders mitigate risks â&#x20AC;&#x201D; it enables them to offer even more value add-on services. GPS-based Collateral Management System (CMS): A Secure Strategy Collateral Management Systems (CMS) may be a new solution for many in the automotive finance industry. It presents long-term advantages for dealers and lenders who integrate CMS into their overall financial strategy, with successful results. As its name implies, GPS-based CMS

uses global positioning system technology to improve the way lenders and their collection departments manage collateral. GPS units embedded in vehicles capture information about that vehicleâ&#x20AC;&#x2122;s location, movement and status. collection managers and staff access this data to track and locate vehicle assets on-demand â&#x20AC;&#x201D; allowing for quicker, more efficient and cost-effective recovery of assets should the need arise. When the finance metrics begin to erode, their collateral recovery process is ready to go and their profits remain stable â&#x20AC;&#x201D; even in a down-turn. Dealers and lenders who have implemented a CMS have experienced a performance edge, even in todayâ&#x20AC;&#x2122;s highly competitive automotive finance climate. Several dealers and lenders using CMS have experienced: Ć&#x20AC;É&#x;ŸŴƞÉ&#x; ,*),.É&#x; É&#x; ,/.#)(É&#x; #(É&#x; delinquencies Ć&#x20AC;É&#x;šŸƞÉ&#x; "0É&#x; (É&#x; &É&#x; .)É&#x; ĹŚ(( customers with lower credit Ć&#x20AC;É&#x;ŜŸƞÉ&#x; "0É&#x; (É&#x; &É&#x; .)É&#x; ĹŚ(( customers with smaller down payments Ć&#x20AC;É&#x;ššƞÉ&#x;-")1É&#x;-#!(#ĹŚ(.É&#x;#'*,)0'(. of customer credit ratings This translates into lower risk, fewer losses and lower costs with benefits for the customer as well.

SUBPRIME LOANS REPRESENT OVER 33% OF VEHICLES SOLD TODAY. How much of that very lucrative slice of the sales pie are you getting? Go Financial has created a subprime lending program that puts you in control. Itâ&#x20AC;&#x2122;s an end-to-end solution that provides up-front profit and future cash flow streams. And best of all, every loan is purchased non-recourse and there are absolutely no sign-up fees. Take the headaches out of making your subprime finance deals work. Sell more cars. Make more money.

An automotive collateral management platform, such as Spireonâ&#x20AC;&#x2122;s GoldStar GPS is more than a vehicle tracking system; itâ&#x20AC;&#x2122;s an award-winning platform servicing automotive lenders and fleet services. In fact, Spireon was recently named Best in Class by Compass Intelligence for its automotive collateral manage'(.É&#x;*&. ),'É&#x;.É&#x;."É&#x;ŲŰŹŴÉ&#x;É&#x;")1É&#x; in Las Vegas. GoldStarâ&#x20AC;&#x2122;s automotive collateral management platform solution provides real-time tracking of vehicle location and movement and hosts a range of powerful features and functionality that help automotive lenders manage their collateral with greater efficiency, productivity and profitability. This includes a robust suite of reports and exception-based alerts that instantly notify dealers and lenders the instant an event happens â&#x20AC;&#x201D; i.e, a vehicle is driven off the lot after business hours. Dealers and lenders can easily access these tools using a computer, tablet or smartphone. A key feature of GoldStarâ&#x20AC;&#x2122;s platform that customers find very useful is the Geo-Zone feature. A geographic boundary can be set up around a specific area, and then be alerted when a vehicle enters or leaves that boundary. This feature is useful for seeing when any vehicle gets towed to an

impound lot. With Geo-Zone, customers know about it sooner so they can recover the vehicle before accruing hefty fees. At the heart of GoldStarâ&#x20AC;&#x2122;s Automotive Collateral Management System is the 10th generation Talon tracking device â&#x20AC;&#x201D; the industryâ&#x20AC;&#x2122;s best selling and highest performing. Talon features a host of industry-first innovations including a sleek profile and tamperresistant features; rugged design built to withstand harsh environmental conditions; simple installation; a resettable internal fuse; and extended battery life. The collateral management system performance relies on ensuring proper installation, Spireonâ&#x20AC;&#x2122;s turnkey solution offers full on site, certified installation services options as well. GoldStarâ&#x20AC;&#x2122;s platform is available in different flexible packages, so automotive lenders can pick just the features and functionality they need and want. Donâ&#x20AC;&#x2122;t let tax season slip by without the added protection of collateral management as part of the loan approval process. )É&#x;&,(É&#x;'),ĹťÉ&#x;&&É&#x;ĹąĆ?ŸŜŜĆ?ŜžžĆ?ŸŸŲžÉ&#x; or visit GoldStarGPS.com

Can someone, for the love of profitability, tell me how to turn more of my subprime apps into cash?

Visit gofinancial.com/news for the whole story or call us at 888-GOFINANCIAL for a quick demo.

UCN_30.indd 1

2/10/14 10:07 AM


Improve your BHPH collections—

without all the ‘handling and processing.’ best ease of use,

“FEX DMS is one of the best dealer management software systems we have ever seen.We love its ease of use, excellenttttttttttttreporting capabilities and the company itself has been wonderful to work with. We highly recommend FEX DMS to all our dealers looking for software.”

excellent highly recommend Steven Carstens, CPA SGC Accounting Houston, TX

Save time and money while providing a convenience for your clients —Web based with real time integration —Dealer configurable —View and print receipts

Visit fexdms.com/bhph to enter for a free year FEX DMS subscription.

MANAGE YOUR DEALERSHIP, NOT YOUR SOFTWARE.SM

UCN_31.indd 1

2/6/14 4:53 PM


32ÛÛÝÛÛFebruary 17, 2014

Special Advertising Section

USED CAR NEWS

NextGear Capital Embraces Technology Technology has rapidly changed the face of automotive remarketing in recent years. With all the gizmos and gadgets available in the industry these days, it is hard to believe that only 12 years ago a dealer had to be physically present to purchase a vehicle at an auction. Today, they can buy from the comfort of their office or their home from anywhere in the world. What is astonishing is how fast technology has changed the way dealers not only work but think as well. Due to the rise in usage of smartphones and tablets, dealers are becoming increasingly tech savvy. As a result, they want someone who not only understands the need for quick technology solutions, but embraces it as well. No one has embraced this growing need like NextGear Capital, the floor plan financing company headquartered in Carmel, Ind. According to President Brian Geitner, technology has been a hallmark of the company from day one. “We made the decision from the very beginning to be tech-oriented because we could foresee that was the direction the industry was heading,”

said Geitner. “Over the years, we have continually gone to our customers and asked ‘What is important to you?’ What we have found is that there has been an increased demand for faster, better technology.” The tools that NextGear Capital has provided to its customers over the years, from document imaging of titles to a web portal for its dealers, has allowed it to stay on the cutting edge. In more recent years, the company has developed a mobile app to provide its customers the ability to handle their account on the go. Ten years ago, the thought of conducting business on one’s phone seemed far-fetched. Not so much anymore. According to NextGear Capital, approximately 30 percent of their customers routinely use the NextGear Capital mobile app to manage their accounts. “Technology advancements have made all of this possible,” stated Bryan Everly,

chief technology officer at NextGear Capital. “Five years ago, the most that dealers could do was make payments online. Now, they have the ability to buy cars, floor plan them, view their inventory, run custom reports and make payments, all conveniently right from their smartphone or tablet.” The swift changes in the technology landscape have benefited the wholesale auction industry as well, with advancements that continue to improve bringing buyers and sellers closer from all over the country and the world. This increase in technology solutions for auctions has fueled the success of many internet-based auction offerings. These sales channels have grown by leaps and bounds and are living proof that online continues to show promise for the wholesale industry. The retail side of the business is also recognizing growth online, with multiple success stories from Auto-

Trader.com and Cars.com to smaller channels across the landscape. According to Geitner, NextGear Capital’s success can be attributed to the company’s entrepreneurial leadership. “Our executive team has always maintained a start-up like mindset when it comes to exploring new ideas,” said Geitner. “That spirit of entrepreneurialism has allowed us to stay on top in technology because it is recognition that in order to compete for tomorrow, we have to prepare for it today.” Looking ahead, NextGear Capital has formed an internal software development team. This team is tasked with exploring more in terms of cloud-based solutions, improving online tools and better reporting offerings to harness large amounts of data at a customer’s fingertips. “As technology continues to evolve, we want to make sure we are staying ahead of the curve,” said Everly. “We are continually pushing the technological envelope and seeking ways to improve every aspect of the remarketing cycle for our customers and simplifying the process for all involved.”

Partner with us! • Second to none in customer service • No pre-verification without dealer approval • No bait and switch on price • No Limits to Portfolio size • Will purchase all makes in models • All terms considered

UCN_32.indd 1

2/10/14 1:21 PM


February 17, 2014ÛÛÝÛۀ€

Special Advertising Section

USED CAR NEWS

Finding Capital Difficult in Hard Times Technology Vital in VSC Partner Selection By Doug Pitcher; Director of Sales United Acceptance, Inc. The struggles in operating a buyhere, pay-here dealership continue to incease. The most recent struggle has been an increase in delinquency and bad debt as the top tier of buy-here, payhere customers get loans with other dealerships through deep subprime point of sale companies. Many of these customers are abandoning their cars and their notes. Approvals are getting as aggressive as they were back in ‘06 and ‘07 before the bust. After the bust, buy here pay here was strong once again. Selling your notes can be an excellent strategy in getting capital, but not if you lose your customers in the process. Here are a few of the most important things too look for when seeking a partner to sell your notes to: 1. A low buy back percentage. If an account turns out to be a buy back the chances of losing that customer increases substantially. If a customer has a problem you want to know before the purchase is completed. Some good ways to determine how many buy backs a company normally has is to ask other dealers that have done business with them. Many companies pride themselves on getting through the purchase process quickly.

If it increases your buy backs or depletes your customer base it’s not worth it. Partner with a company that is willing to spend their resources to make sure it is done right. 2. Partner with a company that can back up what they say. If they tell you they have excellent customer service, make sure they do. Do they record phone calls, what type of training do they have for their employees, visit their call center or speak to another dealer that has. 3. Make sure they have been in business a long time and have a goodBetter Business Bureau rating. 4. Make sure that they have a good transition process for your customers. The customer’s account should be loaded before the purchase. They should already have an account number assigned. They should have a welcome letter that goes out right after the purchase. These are just a few things to consider when selecting a good note buyer. Price is a factor, but if you lose your customers in the process, you can seldom make up for it. Do yourself a favor and do a little due diligence before you sell your notes. It can be a very rewarding experience. United Acceptance, Inc. provides all these services and more. For more information call 404-839-1227

In the fast-paced auto sales industry, it’s critical that you partner with companies using technologies that add value to you, your staff and most importantly to your customers. Technology should play an important role when selecting a vehicle service contract provider. In addition to financial strength with an exceptional history of paying claims, your VSC provider should offer access to the best e-contracting services available. An e-contracting program needs to provide an intuitive, easy to use tool that allows you to get up and running quickly. You want to make sure the technology being deployed and utilized by your staff is efficient and simple to use. E-contracting also makes it easier to rate and write contracts, allowing your F&I team to spend less time processing paperwork and more time focusing on your customers’ needs. Another important aspect of e-contracting is the reporting tool. You need a tool that allows you to quickly view your service performance. It’s no secret that technology plays a key role in streamlining processes, allowing you and your staff to be efficient and effective, making your customer’s

experience quick and uncomplicated. Working with vehicle service contract providers that offer e-contracting allows you and your team to spend less time worrying about reports, rating and writing service contracts and more time selling cars. About GWC Warranty: A leading provider of vehicle service contracts, GWC Warranty is committed to providing dealers superior products that are simple and straightforward to use along with valuable services that make it easier to do business with us. GWC partners with industry leader OptionSoft Technologies to provide e-contracting services for our dealers. A trusted partner of over 20,000 dealers nationwide, to date GWC has paid over $300 million in claims, allowing you to give your customer the confidence they need when purchasing a vehicle. To l e a r n m o r e a b o u t t h e benefits of GWC Warranty, visit us at www.GWCwarranty.com.

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800·482·7357 x767 | GWCwarranty.com/dealers MOTOR TREND® is a registered trademark of SOURCE INTERLINK MEDIA, LLC. All Rights Reserved

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2/10/14 10:36 AM


34ÛÛÝÛÛFebruary 17, 2014

Special Advertising Section

USED CAR NEWS

Make the Most of Tax Season By George Fussell; CEO Southern Auto Finance Company Used auto dealers, particularly those who serve a large number of creditchallenged customers, recognize tax season as one of the year’s great sales opportunities. Many buyers treat their refunds like found money, and they want to put it to good use. This is also often the only time of year when many shoppers have enough cash on hand to contribute towards a major purchase, so they are highly motivated to strike a deal. Smart dealers don’t simply wait for these customers to come through their doors, and they recognize that there are some consistent needs that these shoppers express. By tailoring a sales presentation around these needs, dealers can increase the number of sales they close. Southern Auto Finance Company (SAFCo), focuses solely on sub-prime financing, so we’ve seen some of the best operators in the business when it comes to taking advantage of tax time opportunities. Here’s what we’ve learned: Make it easy for those who need it easy – many shoppers with credit chal-

lenges do not have a sophisticated sense of the auto purchase process or financial matters in general. They may be younger buyers who are just starting out, people who have made poor decisions with their money or people with a limited financial education. Regardless of where they’re coming from, all of these prospects can be excellent customers, and it’s worth your while to court them – after all, a $2,000 profit from a sub-prime customer is worth just as much as a $2,000 profit from a luxury buyer. To their own detriment, though, many dealers treat these buyers with a diminished degree of respect. Show them that you value their business and you will be rewarded with a trusting, loyal customer who will return to you for future purchases even after their credit has been established or rehabilitated. Find the Right Lender - Hand-inhand with this approach is the choice of the right lender – there are some finance providers who offer value-added services that allow you to leverage your sub-prime customers’ loyalty and turn it into repeat business. What you want to look for is a company that goes beyond the

immediate sale and has in place programs that establish and continue a relationship with the customer through the life of the loan. At SAFCo we like to say that we ‘borrow’ your customers and work with them to rebuild their credit. While most lenders report poor repayment behavior to the credit bureaus, we report our customers’ good payment practices, and that makes a big difference in their credit scores. Plus, we regularly send credit report cards to our customers – letting them know how they’re doing. These report cards also offer tips to keep their credit clean. Better still, once their credit has improved to the point that they’re eligible for a new purchase, we send them back to the original dealer – and the original dealer only – incentivized to make their next purchase. We give dealers quarterly lists of former customers who have reached at least 30% of their original terms so they can reach out to them directly about new purchases. Spiff your customers – in addition to all the standard offers that dealers make during tax time – bring in your refund check, show us that you filed, double your down payment, and so on

– lenders may have additional promotional opportunities that few dealers take advantage of or even know exist. These can offer a dealership a real competitive advantage over another, and make a big difference when it comes to getting special finance customers approved. SAFCo has introduced what we call our Credit Builder program – participating dealers earn credits for every contract we fund, and these credits can be put toward term extensions, rate buydowns and lower payoffs. Those bonuses can be all it takes to turn a marginal buyer into an approved one, which in turn can be all it takes to turn a moderate month into a great one. Of course, different lenders may have different incentives, so it pays to look around at what may be on offer – just make sure that the company you work with makes it worth your business – and your customers’ business, too.

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2/10/14 10:07 AM


Why successful dealers finance their inventory with NextGear Capital … REASON #

relationships Dealers like Greg Satterfield, owner of Indy Motor Market, tell us they value the trust, the knowledge and the deep industry connections of doing business with NextGear Capital and Account Executives like Brian Brandolini. Do you want to work with someone who knows your business? Someone who will customize a floor plan solution that meets your specific needs?   Find the relationship you’re looking for, and hear what dealers like Greg are saying at nextgearcapital.com/why/relationships.

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2/6/14 4:54 PM


36Ă&#x203A;Ă&#x203A;Ă?Ă&#x203A;Ă&#x203A;February 17, 2014

Special Advertising Section

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UCN_36.indd 1

USED CAR NEWS

GO Offers the Best of Both Worlds Go Financial has created a unique subprime lending program that gives dealers the best of both worlds: up-front profit at the time the car is sold and a share of the payment stream over the life of the loan. Over a third of todayâ&#x20AC;&#x2122;s car buyers have subprime credit. Dealers can easily pick up incremental sales each month with the right opportunities to offer those customers. By handling every step of the financing process from underwriting through collections, Go Dealer Partners have the ability to build a subprime portfolio without the headaches and heavy capital requirements that often stand in their way. To be able to succeed at subprime finance, you have to be able to understand and predict risk, and know when to balance it with reward. Go Financial created a proprietary grading system based on its experience financing hundreds of thousands of subprime loans. That credit scoring model became the basis of the GO Portal â&#x20AC;&#x201C; an online site that delivers approvals to all customers. The Portal instantly updates advance rates as the dealer adjusts the APR, term, price and down payment to best meet their customerâ&#x20AC;&#x2122;s needs and the dealershipâ&#x20AC;&#x2122;s profit goals.

After receiving the initial advance, each dealerâ&#x20AC;&#x2122;s loans are pooled together to create a unique portfolio, which GO services at their national call centers. Dealers share in the future revenue from the pool as the payments are collected. What if a dealer doesnâ&#x20AC;&#x2122;t want to wait for the payments to be collected? The dealer has the option to tap into pool equity early through GOâ&#x20AC;&#x2122;s exclusive Cash Out Now option, offering flexibility with instant liquidity once their pool is closed. With a financing program that can approve all customers in an easy to use online Portal, GO is creating a pathway to selling more cars. All loans are non-recourse and GO has no sign-up fees. Go Financial is licensed in 44 states and currently enrolling franchise and independent dealers. For a demonstration, call 888GO-Financial (888-463-4626) or visit www.gofinancial.com.

TRAX Auto Protection: A New Profit Center for Dealerships PassTime has a new program that can save you time and money plus create a profit center for your dealership. The TRAX Auto Protection system is built around PassTimeâ&#x20AC;&#x2122;s TRAX device, an in-vehicle GPS designed to protect and recover stolen vehicles. Unlike some systems, customers can utilize the TRAX Auto Protection system from the day they purchase the vehicle. Customers can take advantage of: â&#x20AC;˘ Low battery voltage monitoring â&#x20AC;˘ Up to 6 simultaneous geo-fence boundaries â&#x20AC;˘ Customizable Speed Alerts â&#x20AC;˘ Real time alerts via email or text message â&#x20AC;˘ Pinpoint GPS for vehicle recovery in the event of a theft. Customers can use these great features on any of their vehicles with a TRAX system installed. Monitoring vehicle battery voltage notifies users when it is time to replace their battery. Parents of new drivers can set up speed alerts to notify them if the vehicle exceeds the specified MPH. Geo-fence boundaries can be set to text or email the customer if the vehicle enters or leaves the boundary. This is great way to monitor the vehicle and keep track of driver usage. While some systems have little or no value unless

the vehicle is actually stolen, PassTimeâ&#x20AC;&#x2122;s TRAX Auto Protection provides benefits from the day of purchase. TRAX Auto Protection provides amazing benefits for the dealership too. Dealers can create an additional F& I profit center. Just as TRAX Auto Protection gives customers immediate benefits, dealerships can also utilize the devices. You can use the TRAX system for lot-control and inventory management for floor planning. Keep track of test drives and inventory leaving your lot. Use the GPS to locate a vehicle within your lot. Monitor loaner cars and shop vehicles. The service alert feature within the device notify the dealership when the vehicle may need to come in for an oil change, etc. Dealer benefits for the TRAX Auto Protection system include: â&#x20AC;˘ GPS-powered lot and inventory management â&#x20AC;˘ F&I profit center â&#x20AC;˘ Increased staff productivity â&#x20AC;˘ Service alert features â&#x20AC;˘ Monitor vehicles The TRAX Auto Protection system from PassTime is a great new program that provides benefits to dealers and customers alike. To learn more about PassTimeâ&#x20AC;&#x2122;s TRAX Auto Protection system, PassTime at 877-727-7846 or visit us at http://trax.passtimeusa.com

2/10/14 10:06 AM


USED CAR NEWS

Special Advertising Section

February 17, 2014ÛÛÝÛۀ„

Tax Season Delay Affects Maximize the Value of Your CRM Buy-Here, Pay-Here Dealers Last year buy-here, pay-here dealers were affected when the IRS delayed income tax refunds – and it’s happening again. In 2012, $40 billion in refunds were paid out in January, and in 2013 zero refunds were paid out in January. 2014 is another year of zero refunds being paid out in January. This time the IRS is blaming it on the 16-day government shutdown in October. The IRS started accepting federal income tax returns for individuals electronically on January 31 – which is about 10 days later than normal. Buy-here, pay-here dealers will expect to start seeing down payment money in the form of tax returns by mid to late February. Not only do buy-here, pay-here dealers utilize tax refunds for down payments – but more and more buy-here, payhere dealers are offering incentives to customers to use their refunds to catch up on payments and even pay their accounts in advance. Tax season is to buy-here, pay-here dealers as Christmas is to the retail industry. This is often the only time of the year where buy-here, pay-here customers will have disposable cash for a down payment on a vehicle. With this delay, many dealers are

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experiencing unexpected cash flow issues. Floor plan curtailments and other fixed expenses are hitting dealers’ bank accounts – while the expected tax time sales are not there yet. In addition, collections are always a little difficult around the holidays, further compounding a dealer’s cash flow problems. Small Dealers Assistance (SDA) can help dealers experiencing this cash flow crunch. Dealers can utilize their accounts receivable to raise the capital from SDA to make the most of this years’ tax season. SDA purchases accounts and allows the dealers to continue collecting and building their loyal customer base. Many dealers across the country have utilized SDA’s Income Stream Program to help make the most of their tax season. For over 23 years SDA has been a trusted capital source for hundreds of dealers across the country. These dealers rely on SDA not only during tax season but year round for their capital needs. Join the SDA family of dealers, call 800-467-5172 or visit www.sdainc.net.

By Howard Leavitt, AutoRaptor CRM Each segment of the automobile retail industry – franchise dealers, independent dealers, and buy-here, pay-here dealers – has unique operating practices and processes. While the systems and culture may vary, the fundamental practice of building customer relationships remains the same. When it comes to most effectively utilizing your dealership’s most valuable asset – your customers – dealers across the board face the same challenges: how do we effectively and efficiently maintain all the information we have about our customers, and what is the best way to then use that information to help us sell more cars? Regardless of what size dealership you operate, having a good system for managing your customer data for continued follow-up and relationship building is important. AutoRaptor CRM is an easy-to-use application to manage leads and keep your sales team on track with daily work plans and assigned follow-up tasks. AutoRaptor CRM gives you the tools you need to manage data efficiently so you can respond quickly to all new leads, and have automated action plans in place for aggressive follow-up with a personal touch. Mobile capabilities allow you to respond to incoming leads on any web-enabled device or to assign leads to a sales person in seconds. With customized work

plans, individual dashboards, lead source reporting, and scheduling, AutoRaptor CRM gets you closer to winning the deal each step of the way. To maximize the value of a digital CRM you must setup some basic rules. s %NFORCEMANDATORYUSEOFTHE#2s Collection of all contact information: name, address, phone, and email address are not optional s $OCUMENT YOUR CUSTOMER S interested vehicle information and trade information. This is valuable to you for long-term follow up even if you don’t make the sale s Compile detailed notes, remembering that details are often what will help you win the deal s #REATE A SOLID ACTION PLAN WITH specific follow-up steps AutoRaptor CRM gives you the power to look ahead to finding more business and winning more deals. Getting the most out of every prospect, every new internet lead, and every customer that you touch is the most efficient way to boost profits. Work smarter and add value to your sales process and see how much your business can grow! Let us show you how AutoRaptor CRM can help you convert more leads, sell more cars, and boost profits. Get a free business analysis today! To r e q u e s t a d e m o v i s i t w w w. a u t o r a p t o r. c o m o r c a l l (888) 421-6533.

2/10/14 9:43 AM


38Ă&#x203A;Ă&#x203A;Ă?Ă&#x203A;Ă&#x203A;February 17, 2014

Special Advertising Section

2014: The Year of Leasing In the buy-here, pay-here industry there is a repeat cycle of loss. Loss for the customers, the dealers, and the finance companies. The typical loss process goes like this: Ć&#x20AC;É&#x;/-.)',É&#x; /&.-É&#x; /-.)',É&#x;&)--É&#x;,Ĺş Ć&#x20AC;É&#x;/-.)',É&#x;'É&#x;.É&#x;&,É&#x; É&#x;&,É&#x;&)--É&#x;/-.)',ĹşÉ&#x; Ć&#x20AC;É&#x;&,É&#x;(É&#x;#((É&#x;)'*(3 lose on average $4,000 for each repossession. Ć&#x20AC;É&#x;/-.)',É&#x;-.#&&É&#x;'É&#x;-)É&#x; É&#x; ')/."-É&#x;&,É&#x; É&#x;,É&#x;&,-É&#x;-É&#x;É&#x;1")&É&#x;&)- credibility.

),#(!É&#x;.)É&#x; Ć&#x2030;-É&#x;ŲŰŹųÉ&#x;-É&#x;,É&#x; Industry report, the average default rate for buy-here, pay-here has reached (É&#x;&&É&#x;.#'É&#x;"#!"É&#x;) É&#x;ųŹźųŲƞĆ&#x201A;É&#x; .Ć&#x2030;-É&#x;.#'É&#x;.)É&#x;,%É&#x;."#-É&#x;*..,(É&#x;(É&#x;-.)*É&#x; the insanity of losing money on over ųŰƞÉ&#x;) É&#x;."É&#x;&-É&#x;3)/É&#x;'%É&#x;"É&#x;3,ĹşÉ&#x;É&#x; 2014 is the year of USED CAR LEASING! No repossessions â&#x20AC;&#x201C; leverage over delinquencies â&#x20AC;&#x201C; more profit â&#x20AC;&#x201C; tax advantages â&#x20AC;&#x201C; turnkey business model. To learn more about used car leasing and the many benefits it can bring to your dealership, please contact ..É&#x; ),É&#x; 0É&#x; .É&#x; ŸŰŰĆ?ŸšŚĆ?ųŴųųźÉ&#x; 111Ĺş(),."&(&,-Ĺş)'

USED CAR NEWS

Vehicle Acceptance expands its Floorplan lending program In todayâ&#x20AC;&#x2122;s credit marketplace, financing is available for almost everyone. Sales are at record levels and it is a great time to be a dealer. Those that are having the greatest success have well stocked lots. To meet this demand, Vehicle Acceptance is expanding its Floorplan lending product to more Independent used car dealers thru-out the United States. For 25 years, VAC has supported the Buy-Here-Pay-Here and Independent used car dealership with capital and exceptional service. Accepted at auctions nationwide, VAC provides same-day funding and local service thru their seven regional

offices. There are many advantages to doing business with VAC- they are competitively priced, their staff is easy to contact, and they have the experience to help any type of Independent dealer. Vehicle Acceptance is truly a onestop shop for dealerâ&#x20AC;&#x2122;s financing needs. Inventory financing, note servicing and receivable factoring are valuable tools to help any dealer manage their cash flow and get more cars on their lot. There is still time to get a floorplan in place and benefit from this yearâ&#x20AC;&#x2122;s tax selling season which is looking very good for Independent dealers. Learn more at VACorp.com/UCN or call 1-888-573-4248 for more information.

Focused on the Dealer Missed Payments: When GPS Is Not Enough SSW Dealer Supply carries a wide range of products including (but not limited to) die cut window numbers, message flags, dealer signage and service department supplies. We are located in Bridgeton, Missouri where we feature a showroom full of our products. Showroom hours are Monday â&#x20AC;&#x201C; Friday 7:00am-5:30pm and Saturday 8:00am-12:00pm.

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Our warehouse is located at the same place so your order can be filled and received within a few minutes. We ship all merchandise ordered by 3:00pm CST the same day. We also offer a vast variety of custom products. SSW Dealer Supply maintains a sharp focus on the always growing, ever changing auto dealership industry. Please give any of our friendly customer service representatives a call at 800-269-9704 or visit us online at www.sswdealersupply.com.

While GPS is the newest, sexiest technology, it is not foolproof. Unfortunately, you can still lose cars with it. So whatâ&#x20AC;&#x2122;s a dealer to do? First, understand that GPS is a â&#x20AC;&#x153;reactiveâ&#x20AC;? answer to the problem after things are already out of control. Now you have to say, â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve had enough. Go get the car.â&#x20AC;? Obviously, most dealers would rather get paid than go through a repo. Second, consider using a twopronged approach that adds a proactive component to the reactive GPS component. Add our PT2000 as a proactive behavior-modification device that encourages your customers to pay

as agreed. The PT2000 can be used as an â&#x20AC;&#x153;active decoyâ&#x20AC;? (ask us). Mounted right there on the dashboard, it is a visible daily reminder to your customers that they must make their payment by the due date. Having a PT2000 is like having your own proactive collector in each and every car so that you can modify bad behavior before an account becomes delinquent. Contact PayTeck at 1-800-880-3081 or www.payteck.com

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UCN_38.indd 1

2/10/14 10:06 AM


T:9”

T:13”

DO YOU KNOW TODAY’S CUSTOMER? You may think that you can track all of your Internet customers simply through calls or emails. The truth is most shoppers don’t contact dealers at all. In fact, ONLY ONE-THIRD OF CAR BUYERS CALL OR EMAIL BEFORE WALKING INTO A DEALERSHIP. That leaves millions and millions of shoppers who just walk in unannounced. Find out why there’s so much more to the story than just clicks and leads at WeWorkForYou.com/Brian.

©2013 AutoTrader.com, Inc. All Rights Reserved. “AutoTrader.com” is a registered trademark of TPI Holdings, Inc. used under exclusive license.

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AT3-643 (Used Car News)

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2/10/14 2:52 PM


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