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February 18, 2013
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ON THE WEB: Carfax Warns of Open Recalls Sold Online
Internet Drives AutoNation Name Change
Carfax is warning consumers about the number of cars with open recalls being sold online. New research from Carfax shows the number of cars for sale online with unfixed recalls increased an average of more than 25 percent in Iowa, Missouri, Kansas, Illinois, Indiana, Wisconsin and Michigan.
Manheim Hosts Spanish Sales
Manheim California hosted its first-”Manheim en Español” auction Feb. 1. The sale will be held weekly and will be conducted exclusively in Spanish. It was designed in collaboration with Spanish-speaking dealer customers in Southern California.
NADA Launches Online Education Service
NADA U FUEL, a private online community, is being launched by NADA University, the education and training arm of the National Automobile Dealers Association.
Photo by The Associated Press GOING, GOING, GONE: Traditional dealership names such as Maroone in Florida are being rebranded as AutoNation stores. By Ted Craig
ORLANDO, Fla. – Dealership names familiar to generations of car buyers are disappearing across the nation. Gone are Maroone in Florida and Champion in Texas. All will now be known by the name of their corporate
parent – AutoNation Inc. AutoNation CEO Mike Jackson told attendees at the JD Power Roundtable that this move has been in the works for more than a decade. It was not taken lightly. “These are fabulous names that we’re leaving behind,” Jackson said.
The move reflects the changing nature of auto retailing. Jackson said it was done to create a common name across the nation and, more importantly, across the Internet. Making the change requires a significant marketing investment. “If you live in one of
our markets that’s being changed, you’ll know it,” Jackson said. The one hurdle for changing the names is a familiar one for dealers – government. Jackson said the pace of change depends on AutoNation’s ability to change the name on various permits.
Auto Retail Gains Momentum; Concerns Remain Rush - Dated Material
By Ted Craig
ORLANDO, Fla. – The tone of several new-car industry events held recently was one of moving forward into better times. The theme of this year’s National Automobile Dealers Association was “Momentum.” The word was pasted everywhere in Orlando and felt by most visiting the city. Dietmar Exler, vice president of Mercedes-Benz Financial Services USA, told attendees of the American Financial Services Association vehicle conference that he expects strong sales for the auto industry and strong growth overall
unless “something stupid” happens. Itay Michaeli, autos equity analyst at Citibank, told AFSA attendees one way to help is economic assurance programs from the manufacturers. He said Hyundai’s promise of taking back a car if the consumers lost a job proved very successful. There were some warnings that the road ahead may still prove bumpy. Nick Stanutz, head of auto finance and dealer services for Huntington National Bank, said the industry needed to come together and find answers to the challenges posed by regulation and new shopping methods.
It’s time to shift … the way you think about floor planning.
2/12/13 10:59 AM
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USED CAR NEWS
CFPB Turns Attention to Automotive Financing By Ted Craig
ORLANDO, Fla. – The Consumer Finance Protection Bureau is getting ready to take a look at auto finance and its likely interest is “disparate impact.” Richard Hackett, the CFPB’s assistant director, installment and liquidity lending markets, is making the rounds of auto finance trade groups, having spoken to the Consumer Bankers Association and the American Financial Services Association vehicle conference. Hackett avoided giving a set timeline for action in auto finance when speaking at AFSA. He said the bureau takes its time in creating new regulations. “It takes a lot to learn about these markets,” Hackett said. “It’s why the rules don’t come rolling off the printing press on a weekly basis.” Hackett did, however, make a direct point about disparate impact. This is when a seemingly neutral practice has a negative impact on a group, such as a
racial minority. An example would be the lawsuits against General Motors Acceptance Corp. and Nissan Motors Acceptance Corp. claiming minorities were charged a higher
PB’s definition of large players among credit reporting agencies, that definition of a larger player may prove fairly small. Hackett said the standard is 10 percent of the total in-
the impression of inadequate compliance management. One area the CFPB already made a statement in concerns service providers. Last summer, several major
rate for financing. The finance companies claimed the difference was due to lower average credit scores among minority buyers, but still agreed to cap their rates on all contracts for a time. All finance companies, including dealers’ in-house finance companies, fall under the CFPB’s jurisdiction. The “largest players” in a field fall under the CFPB’s direct supervision. Attorney Michael Benoit said that based on the CF-
dustry headcount and 50 percent of the market. The CFPB is currently filling out its examination staff. Benoit said many of these examiners are learning on the job. “If you’re the subject of an examination, you’re going to be teaching the CFPB examiner the law,” he said. An examiner will ask for a large amount of documents, to be produced in a short amount of time. Failure to make the deadline creates
financial institutions paid fines for the actions of their third-party providers. Benoit said finance companies need to treat service providers more like employees. Many of these providers may object, he said. “Over time, they will become more accepting because this is the reality of it,” Benoit said. “There’s an education process that needs to happen.” One group that the CFPB may consider a service
provider is dealers. Dealers received an exemption from the DoddFrank Act as long as they only sold or leased vehicles and serviced them. However, while the CFPB won’t directly oversee most dealers, they may oversee their relationship with the finance companies. Hackett said dealer participation was not under threat. “There’s nothing wrong with them being paid for originating loans,” Hackett said. Benoit said the keys to avoiding problems with CFPB are documenting both how business should be conducted and how it is. He recommends looking at a business the way a regulator would. Regulators, of course, don’t sell cars. “It really takes a lot of effort away from your core business,” said Alabama dealer Forrest McConnell, vice chairman of the National Automobile Dealers Association. “There’s a need for regulation, but there’s a limit.”
Conditions Right for Increased Used Sales at Franchise Stores Signs continue pointing toward a strong year for used-car sales among franchise dealers. At the recent National Automobile Dealers Association convention, Jonathan Banks, executive automotive analyst with the NADA Used Car Guide, highlighted several factors that will keep used-vehicle prices at historically high levels this year. “Car buyers will find 2013 another excellent year to trade-in their current vehicles for either new or previously owned cars or trucks,” Banks said. Banks outlined five key factors that will result in high used-vehicle prices in 2013. Fed policy and a highly competitive lending environment will continue to see credit standards loosen and availability grow. The recovery in housing and construction will pick up steam, benefitting both the economy and employment. This will help stoke demand for traditional used-car and -truck shoppers. Employment will continue to improve, especially toward the latter half of the year once the outcomes of the government sequester and debt ceiling extension are better known. With a predicted increase of 8 percent, the supply of units up to three years in age will grow for the
first time since 2006, but even with the increase, volume will still be 25 percent below where it was in the three years leading up to 2009. While it’s expected that the recovery in new-vehicle sales will siphon off a portion of used-vehicle demand, there remains pent-up demand for those consumers who traditionally purchase only used vehicles. “As job growth continues to
Undoubtedly, the new-vehicle sales performance in 2012 was helped along by higher used trade-in prices. Jonathon Banks progressively improve, used-vehicle intenders will gradually replace their current vehicles with newer, pre-owned ones, thereby helping to compensate for the loss of newvehicle substitute demand,” Banks said. Taken as a collective, NADA predicts the price of units up to eight years in age will average $14,375 this
year, down 0.8 percent from 2012’s figure of $14,500. Compared to last year, NADA expects that prices will be softer in the first half of the year as consumers and businesses react to the expiration of the 2 percent payroll tax holiday and political activity surrounding the deferred federal budget sequester and the debt ceiling extension. “Excluding last December’s inflated showing from Hurricane Sandy, used prices in the second half of the year should essentially match what was observed in 2012,” Banks said. Last year, both the new- and used automotive markets made several notable achievements. New-vehicle sales accelerated by more than 13 percent in 2012, which was 500,000 more than the year’s initial consensus forecast and also the largest annual increase recorded since 1984. “Undoubtedly, the new-vehicle sales performance in 2012 was helped along by higher used tradein prices,” Banks said. By NADA’s estimation, used-vehicle prices for units up to eight years in age rose by 1.2 percent in 2012, thereby extending a three-year run of appreciation with prices increasing by a staggering 32 percent since bottoming out in 2008. Many dealers believe that the
used-vehicle department will be the most profitable within the franchise dealership this year. That’s one of the findings of recent survey of new-car dealers conducted by Ally Financial. The survey also found that nearly 60 percent of dealers are expecting their new-car sales to grow by more than 10 percent this year. More than 54 percent of dealers surveyed expect consumer confidence to be the key factor in sustaining auto sales momentum in 2013. The age of vehicles on the road, incentives and the availability of new-vehicle inventory will also support sales growth, dealers said. About half of dealers surveyed indicate that customer credit profiles are improving. Further, more than 70 percent of dealers expect sales of F&I products, such as vehicle service contracts, to increase this year. “We expect 2013 to be a strong year for the auto industry as the economy and consumer credit profiles steadily improve and as new models attract customers to showrooms,” said Tim Russi, president of auto finance for Ally Financial. “We met with many dealers at NADA who reinforced our position and share our optimism and passion to make it happen.”
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USED CAR NEWS
NEWS BRIEFS RouteOne Retains NIADA Endorsement
RouteOne LLC announced that the National Independent Automotive Dealer Association (NIADA) has once again endorsed the firm as its credit application management system of choice. As an endorsed NIADA National Member Benefit Partner since 2009, RouteOne has assisted NIADAâ€™s 20,000 independent auto retail dealership members with streamlining their F&I process through the utilization of RouteOneâ€™s credit application network. RouteOne LLC and ADAM Systems also announced that they have jointly developed enhanced data integration for their common customers. This real-time integration provides a bi-directional connection between RouteOneâ€™s web-based credit application management system and the ADAM Systems Dealer Management System. The integration exchanges information for fast and accurate credit applications, submissions, and responses. Additionally, F&I data is also exchanged for important dealer reporting and analysis. These integrations save the dealership time and avoid keying errors. ADAM customers currently subscribed to the legacy RouteOne interface will be contacted for upgrade instructions.
Car-Mart Adds Another Store
contract originations in 2012, up from 14 percent three years ago, reflecting the companyâ€™s commitment to broaden its business in support of the industry. Ally is hiring an additional 200 sales and underwriting staff members this year in order to broaden its business reach and increase service to dealers.
This extension is in addition to the previously announced $300 million repurchase authorization approved by the board on Oct. 17. This $500 million authorization expires on Dec. 31, 2014. Purchases under the repurchase program may be made in open market or privately negotiated transactions and are expected to comply with Securities and Exchange Commission Rule 10b-18. Purchases will be made from time to time at CarMaxâ€™s discretion and the timing and amount of any share repurchases will be determined based on share price, market conditions, legal requirements and other factors.
A m e r i c a â€™s C a r- Ma r t I n c . announced the opening of its 120th dealership. The dealership is located in Bethel Heights, Ark. Bethel Heights is the chainâ€™s 38th location in Arkansas. This dealership will be operated under the Discount Auto brand. Bethel Heights is Car-Martâ€™s 6th new dealership for this fiscal year. The chain presently has four new CarMax Buys Back Shares The board of directors for Carlocations secured which will keep it on track for 10 for the full fiscal year. Max Inc. approved a $500 million extension of the companyâ€™s existing share repurchase program for its outstanding common stock. Ally Tops Finance List For the second year in a row, Ally Financial ranked number one in fiPublished By General Media LLC nancing consumer auto sales in the USED CAR NEWS (ISSN 1555-7413) is published at U.S., according to AutoCount by Ex24114 Harper, St. Clair Shores, MI 48080 perian Automotive. The company financed nearly Phone: 586-772-5200 or 800-794-0760 Fax: 586-772-9400 1.5 million new and used vehicles www.usedcarnews.com through franchised and independent dealers last year. Charles M. Thomas Used vehicle financing and leasing Founder (1947-2002) comprised 46 percent of Allyâ€™s auto C R O S S WO R D by Myles Mellor
Lynda R. Thomas, Publisher Colleen Fitzgerald, General Manager Editorial: Ted Craig, Managing Editor Jeffrey Bellant, Staff Writer Contributing Writers: Emily Caswell, Sheila McGrath, Jenny KIng Columnist: Tony Moorby Advertising: Shannon Colby, Account Manager Megan Frump, Account Manager Marie Hingst, Account Manager Circulation: Helen Thomas Production: Josie Godlewski, Media Manager Tim Montie, Graphic Designer â€”â€”â€”
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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.
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USED CAR NEWS
KBB Names Best Buys THERE’S ONLY
Shoppers in the market for an affordable used car should check out the list of 10 Best Used Cars Under $8,000 compiled by the editors of Kelley Blue Book. Kelley editors compiled all the used cars from 2003 and newer with a Kelley Blue Book Suggested Retail Value of less than $8,000 as of January. Then they went through the list and handpicked the 10 standouts with the most appealing mixes of reliability and desirability. “The vehicles on our short list offer incredible value for today’s budget-
conscious car shopper,” said Jack R. Nerad, executive editorial director for Kelley Blue Book’s KBB.com. The winners of KBB.com’s 2013 10 Best Used Cars Under $8,000 are: 1. 2005 Honda Civic 2. 2011 Hyundai Accent 3. 2004 Toyota Camry 4. 2004 Honda Element 5. 2007 Chevy Silverado 1500 6. 2005 Mazda 3 7. 2004 Honda Odyssey 8. 2005 Volvo S60 9. 2004 Ford Mustang GT 10. 2003 Acura
Santander Finances Chrysler Sales Chrysler Group LLC announced an agreement with Santander Consumer USA Inc. to provide a full spectrum of auto financing services to Chrysler Group and Fiat customers and dealers under the name Chrysler Capital. Chrysler Capital is designed to provide Chrysler, Jeep, Dodge, Ram Truck and Fiat customers with competitive retail purchase and lease financing. It also will provide wholesale financing and related services to Chrysler Group and FIAT dealers. Chrysler Capital will launch May 1. “We expect Chrysler Capital to help Chrysler Group continue its sales growth by offering consumers the most competitive and innovative retail purchase and lease financing available in the marketplace,” said Peter Grady, vice president of Network Development and Fleet for Chrysler Group. “We found in Santander Consumer USA a nimble partner backed by the strength and experience of a worldwide banking leader. We have been impressed with Santander Consumer USA’s capabilities, energy and attitude about selling Chrysler Group vehicles.” Santander Consumer USA, a financial services company based in Dallas, is majority owned by global banking leader Banco Santander of
Madrid, Spain. Under this 10-year, private-label agreement, Santander Consumer USA will establish a separate business unit dedicated to providing financial services under the Chrysler Capital name. In addition to dealer new and used vehicle inventory, Chrysler Capital will provide financing for dealership construction, real estate, working capital and revolving lines of credit. Under the agreement, Santander Consumer USA will provide Chrysler Group with a nonrefundable upfront payment and a quarterly share of revenues. Until the May 1 launch, Chrysler Group and Fiat dealers will continue to do business as usual through Ally Financial Inc. and other financial institutions. “Ally will continue to provide financial services to Chrysler Group and Fiat dealers and their customers at the very least through the end of Chrysler Group’s existing contract with Ally which expires April 30,” Grady said. “Ally has been a good business partner for Chrysler and has forged strong relationships with many of our dealers. Chrysler Group expects that Ally will continue to do a good job for our dealers and retail customers beyond the April 30 expiration of our current agreement.”
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USED CAR NEWS
Company Sues Over Name By Jeffrey Bellant
A California dealership has been sued over its name and temporarily forced to take down its website. The owner of USAA Auto Group and its wholesale company, USAA Remarketing, based in Oceanside, Calif., is being sued by USAA (also known as United Services Automobile Association) for trademark infringement in using the USAA name.
said. “We carry highline vehicles like Mercedes, BMWs and Audis.” Bacon said she followed the requirements to open up the business. “When went through the state to get our name, our dealer license, insurance and rider, with no problem,” she said. She said a month ago she got a call from a USAA attorney about the suit and was surprised. Bacon said the origin of the dealership’s name is made up of the
“The defendants made it clear they weren’t going to stop using the name ‘USAA.’” Roger Wildermuth USAA, a diversified services group of companies whose membership includes mostly military veterans and their families, filed suit in San Antonio, Texas, where its home office is based. Aris Bacon, the owner of the dealership, said she and her husband have been in the car business for about 20 years, though only recently operated in Oceanside. Bacon said she opened up USAA Remarketing two years ago and started the retail lot in December. “We carry about 48 to 50 cars,” she
initials of the business partners – Sam, Aris and Allan ‘united.’ The USAA attorney told them they had to shut down their website and use of the USAA name, she said. Roger Wildermuth, company spokesman for Texas-based firm USAA, confirmed the lawsuit was filed in San Antonio’s Bexar County District Court. The court placed a temporary restraining order barring the dealer from using “USAA” in their business names or on the Internet. Continued on next page
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USED CAR NEWS
– Continued from prior page
Wildermuth released a company statement on the matter: “USAA helps our members to find, finance and insure vehicles at usaa.com. Services and websites using our name, USAA, for the buying and financing of cars are clearly designed to confuse and misdirect USAA members looking for our services and place our reputation at risk.” Wildermuth said the company’s attorney contacted the dealer to resolve the issue. “The defendants made it clear they weren’t going to stop using the name ‘USAA,’” he said. But Bacon said she offered to change the name to “USA” or something else, but was rebuffed.
“I haven’t even hired an attorney yet,” she said. Bacon said she wants to resolve the issue so that her money can go into the business and not to attorneys. She said the court has delayed a hearing on the matter until early March, in the hope that the two sides can reach an accommodation. Bacon said the dealership has served military personnel from nearby Camp Pendleton and even recommended that they go to USAA for auto loans or insurance, which are two of the products provided by the San Antonio-based company. That may be an issue with the plaintiff, since USAA’s business caters to the military.
Pol Pays for Buying Used Car SACRAMENTO, Calif. (AP) – A former legislator received a slap on the wrist for how he bought a used truck. The Fair Political Practices Commission issued a warning letter to former Senate minority leader Bob Dutton but did not impose a fine. Dutton, a Rancho Cucamonga Republican, used campaign money to buy the 2005 Chevrolet Tahoe, which had been his state-issued
vehicle. Gary Winuk, chief of the commission’s enforcement division, said in the letter that Dutton violated campaign law because the vehicle’s title was in Dutton’s name individually as well as in the name of his campaign committee. Winuk said the commission decided against a fine because Dutton told investigators he used his name to obtain insurance.
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“ALLY OFFERS A UNIQUE ONE-ON-ONE EXPERIENCE. THEY CARE AND WANT TO BE INVOLVED. THAT’S THE MARRIAGE AND THAT’S WHAT MAKES THEM DIFFERENT.” Ryan LaFontaine Dealer Principal, LaFontaine Automotive Group
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PAGE 8 - Technology Spotlight
AutoTrader Withdraws IPO, Continues Acquisitions AutoTrader.com has withdrawn its bid for an intial public offering, but continues to expand. The company cited â€œprevailing market conditionsâ€? as the reason for its decision. AutoTrader.com had added several companies in the past few years as it headed toward its IPO and continues to do so. The company recently acquired Automotive Information Systems (AIS), a provider of auto incentive integration. â€œIncentives are complex and confusing,â€? said AutoTrader.com CEO Chip Perry. â€œIt is hard for dealers and consumers to understand and use incentives for maximum benefit. The reality is that consumers and dealers alike are leaving incentive money on the table and OEMs are not capturing the total value from their incentive strategies,.â€? By integrating AIS incentive data with AutoTrader. com Perry said it will be easier for OEMs, dealers and consumers to maximize the application of new car incentives and rebates. To provide greater transparency for consumers, AutoTrader.com and Kelley Blue Book will integrate AIS incentive information with car pricing data; helping consumers make more informed choices when shopping for new vehicles. â€œOur team is excited to join forces with the AutoTrader
Group,â€? said Troy Ontko , founder of AIS. â€œOur mission of providing our customers with clarity on how incentives work aligns perfectly with AutoTrader Groupâ€™s belief that the industry is best served when new vehicle incentives are available, transparent, and accurate in the consumer shopping process. AIS will continue to provide OEMs, dealers and third party sites with the most accurate and timely incentive information.â€? AutoTrader also launched a new business-to-business advertising campaign, launching this month, takes aim at common misperceptions about how consumers shop for cars. Themed â€œDo you know todayâ€™s customer?â€?, the campaign will highlight insights about consumer shopping behavior in order to help dealers more efficiently and effectively reach shoppers online. â€œToday, dealers have access to more information than ever about how consumers shop for cars, and our goal is to bring this information to dealers in a way that will capture their attention, spark consultative conversations with their AutoTrader.com reps, and ultimately, help dealers move the needle in their online advertising,â€? said Clark Wood , chief marketing officer at AutoTrader.com. Steeped in deep research, the campaign tackles several themes in automotive
File photo PRIVATE CITIZEN: AutoTrader.com CEO Chip Perry continues to lead the company forward, even as it withdraws its IPO.
marketing, including: Ć€É&#x;."É&#x;,)&É&#x;) É&#x;-,"É&#x;(!#(-É&#x; in the online shopping process, Ć€É&#x; ."É&#x; ĹŹ#(3É&#x; ) É&#x; )(&#(É&#x; advertising versus traditional advertising, Ć€É&#x; ."É&#x; #&#.3É&#x; .)É&#x; #(ĹŠ/(É&#x; shoppers who are close to purchase, É&#x; Ć€É&#x; ."É&#x; #'*),.(É&#x; ) É&#x; ',chandising vehicle inventory online, Ć€É&#x; ."É&#x; *,0&(É&#x; ) É&#x; (1É&#x; car shoppers on third-party sites, and Ć€É&#x; ."É&#x; )0,1"&'#(!É&#x; *, erence among consumers to walk-in to a dealership without contacting the dealer
by phone or email before the visit. â€œOur promise to our dealer customers has always been that â€˜we work for you,â€™ and that promise continues in this new year,â€? Wood said. â€œWe believe that by providing our dealers with the latest information about car shopping behavior, coupled with how that information can translate into action, we can bring additional value to the partnerships we continue to foster with our customers.â€? Over the course of the year, the new campaign will come to life through media buys
in print and digital publications, in AutoTrader.comâ€™s presence at major industry shows such as the upcoming National Automotive Dealers Association (NADA) Convention in Orlando, and also on AutoTrader.comâ€™s We Work For You microsite. Included on this microsite will be videos of six dealers talking about their experiences with advertising, as well as eight consumers discussing their car shopping journeys. To view the current creative for the campaign and to watch the videos, visit www.WeWorkForYou.com.
Manheim Creates Digital General Manager Position Manheim has created a new executive position that ,ĹŠ.-É&#x;."É&#x;!,)1#(!É&#x;#'*),tance of online sales. Manheim appointed A l l a n Wilwayco to the newly created position of digital general manager. In this role, he will be respon s i b l e for the management and
s February 18, 2013
execution of Simulcast Everywhere and other new and enhanced mobile and digital products. In addition, Wilwayco will lead the development and delivery of a digital operating and sales strategy across the organization. He will work with field locations and partner with the product development team to maintain a thorough understanding of all auction operations. Wilwayco will report to Tim Janego, regional vice president, East. Wilwayco brings more than 20 years of indus-
try experience to his new position, having held a number of previous leadership roles at Manheim. He led cross-functional teams responsible for operations and corporate strategy. He will continue to maintain an active role with the companyâ€™s customers and day-to-day operations. In addition to naming a new digital general manager, Manheimâ€™s Rick Burick was promoted to general sales manager of
sales strategy. In Burickâ€™s new role, he will be responsible for overseeing three teams that contribute to growing sales and enhancing service: sales strategy, sales effectiveness and Manheimâ€™s trade desks. Burick has had a successful track record with Manheim, most recently leading a team of 11 managers responsible for the development of Manheimâ€™s sales teams. Kim Waterman has also
taken on a new auction manager role for Manheim Central California, reporting to Julie Picard, market vice president for the Pacific market. Previously, Waterman was an area marketing manager for Manheim. In her new role, Waterman will lead the local management and employee teams in continuing to grow the business and enhance the customer experience for dealers.
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USED CAR NEWS
Dealers Expect to Grow Sales Automotive dealers expect an increase in sales in 2013, according to a new survey from Chase Auto Finance. The Chase Auto Finance Dealer Survey, which reveals dealers’ 2013 expectations on hiring, financing, auto industry trends and the U.S. and local economy, also found that an overwhelming majority of dealers believe the auto industry and their own dealership businesses are improving and primed for growth. Nearly half (45 percent) of auto dealers surveyed expect sales growth between five to 10 percent this year, while 22 percent expect sales to increase 11 to 15 percent. Another 10 percent anticipate sales to increase 16 to 20 percent and five percent of auto dealers are planning sales growth of 20 percent or more in 2013. Specifically, auto dealers expect new and pre-owned sales growth in 2013. Two-thirds (67 percent) anticipate new sales to increase, while 73 percent of dealers expect growth in pre-owned sales. Additionally, dealers expect healthy increases in service sales (49 percent), service contract/warranty sales (48 percent) and leases (42 percent). More than half of dealers (57 percent) say the sedan will be the
top selling type of automobile in 2013. Trucks (17 percent) are a distant second, followed by crossover vehicles (13 percent) and SUVs (9 percent). The trends look similar for fleet sales, which are an important indicator for economic growth. Dealers who also participate in fleet sales (44 percent) said the sedan is expected to fuel sales growth (53 percent), followed by trucks (47 percent), crossover vehicles (20 percent) and SUVs (20 percent). More than three in four (77 percent) auto dealers surveyed believe their dealership business is improving, and 68 percent believe the economy in their local community is strengthening. As for the national economy, nearly a third of dealers (32 percent) believe the national economy will start getting better later this year and more than half (52 percent) said not until after 2013. More than 60 percent of dealers are likely to expand their inventory in the next six months. As dealerships expand, they also expect to create more jobs. They are less likely to seek financing to fund their expansion plans. More than six in 10 dealers (65 percent) say they are “somewhat” or “very” unlikely to seek financing.
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“ THE RELATIONSHIP BETWEEN THE BANK AND THE DEALER IS THE MOST IMPORTANT RELATIOANSHIP IN ANY AUTOMOTIVE BUSINESS AND ALLY UNDERSTANDS THAT.” Jim Arrigo Owner President, Arrigo Automotive Group
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USED CAR NEWS
City Mulls Ending Restrictions By Sheila McGrath
An association of car dealers in Poway, Calif., found it pays to stand together. After years of struggling with a city sign ordinance that restricted banners, pennants and other temporary signs, a group of seven dealers from the Poway Road of Cars in San Diego County recently approached the city to ask that the restrictions be relaxed. The City Council met with them at a workshop in January to hammer out a compromise, and this month, the council will vote on it. The Poway Road of Cars is home to eight dealerships. But since the road is located five miles from the nearest freeway, dealers say they have a hard time luring customers. “We don’t have the natural traffic that’s passing by, so we’re concentrating on capturing the immediate market in Poway,” said Mark Abelkop, who owns three franchise dealerships on the Road of Cars. Poway has about 50,000 residents. Dealerships are allowed to have permanent signs, but since the early 1990s, the city has limited most types of temporary signs to grand opening events. The restrictions began as a way to keep the road from looking too cluttered, said Bob
Manis, Poway’s director of development services. Manis said city officials asked dealers to name things that they thought would help. Dealers said they’d like to be able to hang banners between light posts on their lots, hang smaller banners directly on light posts, put up tents, hang pennants across their lots, and be allowed to use search lights and inflatables on occasion. The council members reacted favorably to the first three items on the list, Manis said. On Feb. 19, the council will vote on allowing a one-year trial of those methods. Abelkop said what the dealers are trying to do is create an atmosphere with lots of color and an appearance of lots of activity. Being able to put up banners with messages about financing or rebates will also help, he said. Abelkop, who has been in the car business in the San Diego area for 25 years, said the dealers had been asking for the changes for years. The difference this time, he said, was “we decided to go together rather than individually and take our case to the city manager.” The Poway Road of Cars generates about $2.5 million in sales tax revenue for the city annually, according to the association.
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2/11/13 2:58 PM
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USED CAR NEWS
Car Sales Launder Drug Money
CINCINNATI (AP) – A southwest Ohio police officer admitted that he deposited money meant to avoid bank reporting requirements in an alleged marijuana smuggling operation involving used-car sales. Federal authorities said the conspiracy began around June 2006 when one unnamed defendant began receiving shipments of marijuana hidden in the gas tanks of vehicles at a Cincinnati auto business. That person and police officer Bryon Roos, 43, would operate usedcar businesses to launder drug proceeds and provide “what appeared to be a legitimate source of income,’’ according to the government. Roos pleaded guilty to one count of structuring financial transactions to evade federal reporting requirements. Roos had pleaded not guilty in August to charges of money laun-
dering, illegally structuring financial transactions, and conspiring to bring hundreds of pounds of marijuana to southern Ohio from Texas. Roos was indicted with 10 other men, some of who have also pleaded guilty or have agreed to plead guilty. Details of Roos’ plea weren’t immediately available. A federal judge ordered a presentencing investigation of Roos, a decorated officer in the Cincinnati suburb of North College Hill who once received a medal of valor for rescuing a woman from a burning home. Last year’s indictment also alleged that marijuana was shipped in crates containing tile and granite countertop bars transported by commercial freight companies to various locations in Hamilton County and adjoining Butler County before it was broken down and distributed.
Dealer Admits to Not Paying Taxes
A former used-car dealer pleaded guilty to failing to pay sales tax to New York state over the course of five years. Shlaine Freeland pleaded to grand larceny in the second degree. This is the highest charge for which he could have been convicted had he gone to trial. Freeland admitted that between Sept. 1, 2008 and Aug. 31, 2012, as
owner of a Buffalo used-car dealership and repair shop, he stole sales tax in the amount of $91,831.97 collected on behalf of New York state resulting from vehicle sales and did not report those earnings on his New York State income tax return. Sentencing is scheduled for July 1. Freeland faces a maximum prison sentence of 5 to 15 years.
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Manheim Detroit March 7, 21 734-654-7100
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ADESA Houston March 6 281-580-1800
Manheim Fredericksburg Manheim Pittsburgh March 13 March 14 724-452-5555 540-368-3400
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*The tradename “Subaru Motors Finance” and the Subaru logo are owned / licensed by Subaru of America, Inc. and are licensed to Chase Bank USA, N.A. (“Chase USA”) and JPMorgan Chase Bank, N.A. (“Chase”). Retail / Loan accounts are owned by either Chase or Chase USA and lease accounts are owned by Chase. *Jaguar, the Jaguar logo, and Jaguar Financial Group are trademarks of Jaguar and any use by JPMorgan Chase Bank, N.A. (“Chase”) is under license. Land Rover, the Land Rover logo, and Land Rover Financial Group are trademarks of Land Rover and any use by Chase is under license. Retail / Loan and lease accounts are owned by Chase. *The tradename “Mazda Capital Services” as well as the Mazda and Mazda Capital Services logos are owned by Mazda Motor Corporation or its affiliates and are licensed to JPMorgan Chase Bank, N.A. (“Chase”). Retail / Loan and lease accounts are owned by Chase. © 2012 JPMorgan Chase Bank, N.A. Member FDIC. All rights reserved. (12-381) 06/12
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14 tFebruary 18, 2013
USED CAR NEWS
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PEOPLE IN THE NEWS Attorney Returns to Firm
Hudson Cook, LLP, a nationwide provider of legal compliance services for the financial services industry, recently announced the return of Thomas J. Buiteweg as a partner at the firmâ€™s Ann Arbor, Mich., office. Buiteweg will focus his practice on federal and state consumer financial services laws with particular emphasis in automotive financing. Buiteweg, a former partner with Hudson Cook, was most recently serving as counsel at Ally Bank. Buiteweg is the current co-chair of the Personal Property Financing Subcommittee of the American Bar Associationâ€™s Consumer Financial Services Committee. He is also a member of the Governing Committee for the Conference on Consumer Finance Law. Buiteweg is a magna cum laude graduate of the University of Michigan Law School. He received his Bachelorâ€™s of Business Administration in Accounting from the University of Notre Dame, graduating sum cum laude. He is also a certified public accountant. â€œWe are very pleased to have Tom return to the firm,â€? said Tom Hudson, partner at the Hanover, Md., office of Hudson Cook. â€œHe is widely recognized as a leading attorney in automotive finance law.â€?
World Omni Adds Positions
Dan Chait, president of World Omni Financial Corp., announced four senior-level promotions on the heels of a record-breaking year. A subsidiary of JM Family Enterprises, Inc., World Omni is a provider of financial products and services to automotive dealers, consumers and lenders. World Omniâ€™s primary businesses are Southeast Toyota Finance, CenterOne Financial Services, DataScan Field Services and DataScan Technologies. The organizational changes include: Mike Tiufekchiev has been promoted to group vice president, originations; Mike Pritchard has been named group vice president, operations; Brick Toifel has assumed new responsibilities as vice president of Southeast Toyota Finance Sales and Dealer Services; and Brent Sergot has been appointed president of DataScan Holdings LLC and its subsidiaries, DataScan Technologies and DataScan Field Services. Tiufekchiev is responsible for Southeast Toyota Finance sales and marketing, dealer services, risk management, pricing, and commercial operations. Prior to joining World Omni in 1999, he served in senior roles with Ford Credit and GMAC. Pritchard is returning to World Omni from sister company and JM
Family subsidiary JM&A Group. Pritchard is responsible for World Omniâ€™s Service Center operations as well as for training and business process re-engineering efforts. Pritchard began his career with World Omni in 1996 and transferred to JM&A Group in 2000. As vice president of Southeast Toyota Finance Sales and Dealer Services, Toifel is responsible for the companyâ€™s functions that directly interface with automotive dealer customers. Toifel joined World Omni in 1984. Sergot has been appointed president of DataScan Holdings LLC and its subsidiaries, DataScan Technologies and DataScan Field Services. Additionally, he continues in his role as vice president and general manager of CenterOne Financial Services. Prior to joining World Omni in 2001, Sergot served in senior positions at the Greater Auction Group, Walden Automotive Group, MarketWise Solutions and Autodaq.
Auction Makes Personnel Changes
Pittsburgh Independent Auto Auction (PIAA) has announced several major organizational changes involving key personnel. Chris Angelicchio has been promoted to general manager. He has worked in various positions at PIAA for more than 10 years including serving as assistant general manager for the past five years. Aaron Bell has been appointed director of operations. Bell has been with PIAA for seven years and has served in various capacities including arbitration manager. In another change, Bernie Nemec has been named manager of dealer services. Nemec is a 12-year veteran in customer service at PIAA.
Brasherâ€™s Names New GM
Brasherâ€™s Auto Auctions announced that Mark Melton has been named the general manager at Brasherâ€™s Northwest Auto Auction in Eugene, Ore. â€œWe are very pleased to announce Mark Meltonâ€™s promotion to the general managerâ€™s post at Brasherâ€™s Northwest Auto Auction,â€? said owner John Brasher. â€œHe has been an integral part of our team at Brasherâ€™s for many years, and has consistently set high standards for service and performance.â€? Melton has worked for Brasherâ€™s since 1998 when he joined the sales team at Brasherâ€™s Portland Auto Auction. After 18 months in Portland, he moved to Eugene where he has held various responsibilities over the years. He graduated magna cum laude from Utah Valley State College with degrees in business management and accounting.
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The Biggest Remarketing Story of 2012 Reveals Whatâ€™s Next for 2013 Introducing NextGear Capital
CARMEL, Ind. â€“ On Feb. 1, NextGear Capital was announced as the new name for an inventory finance powerhouse created through the merger of industry leaders Manheim Automotive Financial Services (MAFS) and Dealer Services Corporation (DSC). Former DSC President Brian Geitner will lead the newly-minted NextGear Capital as president, bringing his passion for serving the industry and his proven track record in building successful floor plan /FYU(FBS$BQJUBM1SFTJEFOU companies. Brian Geitner NextGear Capital: Whatâ€™s Next for Floor Planning â€œCreating NextGear Capital is a visionary endeavor,â€? said Geitner, â€œbecause we are building a industry-serving floor plan company on the solid foundations of two great industry leaders with strong cultures of customer focus and service.â€? The name NextGear Capital was chosen from dozens of researched options, said Geitner, to reflect the leadership role the new independent company will play in moving the remarketing finance industry forward. He added that NextGear Capital will be able to offer customers more value by making the process of buying and selling inventory faster, simpler and ultimately more profitable. â€œI am extremely excited about whatâ€™s next for our customers,â€? Geitner emphasized. â€œWith a broader offering of products
and services, our industry-leading customer experience will serve the needs of dealers and auctions, alike.â€? Great People Make Great Companies â€œOur excellent staff and their high level of customer service are what make us different from any other finance company in the industry,â€? Geitner said. â€œWe will continue to invest in leading technology to help our people and our customers shift ahead, one gear at a time, to the next level.â€? NextGear Capital customers will have access to their accounts in four convenient ways: dedicated Account Executives for in-person visits at their businesses, an advanced Customer Service Center available 8 a.m. to 6 p.m. in all markets, and convenient access through online account management and mobile floor plan applications.
I am extremely excited about whatâ€™s next for our customers. â€“ Brian Geitner
â€œWhen you do business with NextGear Capital,â€? said Patrick Brennan, Group Vice President of Manheim Automotive Financial Services, â€œyou get a lot more than just financing options. You receive a robust array of services and support to help you acquire and move your inventory.â€? The combined customer base of more than 17,000 dealers and hundreds
of auctions will enjoy a wider variety of customized inventory finance options for retail, wholesale, salvage and many specialties, including rental, heavy truck, RV and receivables financing. NextGear Capitalâ€™s corporate headquarters will be located in Carmel, Ind., where construction is currently underway on a facility to accommodate projected growth. Visit nextgearcapital.com for more information.
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USED CAR NEWS
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M2M Solution Drives ROI for Vehicle Finance Industry tech directory.indd 1
As the numbers for 2012 roll in, the outlook for the vehicle finance industry appears strong. Vehicle sales, as well as values are on the rise. In fact, 2012 represented the best used-car sales since 2007, with 40.5 billion units sold – up from 4.5% from 2011. Credit is loosening up as well, leading more lenders to approve more loans for credit-challenged consumers. To meet this growing demand, the vehicle finance industry has seen a resurgence in subprime auto loans. In December 2012, subprime buyers with FICO scores of 550 jumped to 17.1% of total usedcar sales, up dramatically from 9.8% in December 2011. M2M for Collateral Management With more and deeper subprime auto loans being approved, the industry must adopt innovative and effective ways to protect their assets, manage their collateral, and mitigate risk. Like many businesses across multiple industries, the smartest players are turning to machine-to-machine (M2M) technologies to help them do exactly that. M2M solutions allow companies to capture critical business data using mobile devices in the field, pushing this information to devices in the office where it’s served up as actionable business intelligence. For the vehicle financing industry, M2M offers tremendous potential for
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enhanced collateral management, improved efficiencies and productivity, reduced risk, and enhanced borrower communications. To deliver on this promise vehicle finance companies must make sure the M2M solution they invest in is supported by the right environment – one that meets a checklist of best practices. One company that’s focused on maximizing the advantages of M2M for the vehicle finance industry through its leading brands GoldStar GPS and EnfoTrace GPS is Spireon, a developer of M2M business intelligence automotive aolutions.. Powering these solutions is Spireon’s next generation NSpire M2M Intelligence Platform.
the M2M Evolution expo in January. NSpire meets the complete checklist of best practices, starting with reliable performance. The NSpire infrastructure includes built-in redundancy; if one component – such as a database or internet connection – fails, another part of the cloud takes over the job. This ensures customers have continual, uninterrupted access to accurate, current data. For vehicle finance companies, this means you’ll always be able to pinpoint the exact location of a vehicle in real-time for faster, less costly recovery. The real-time data is collected, crunched and translated into reports with amazing speed. This redundancy also means you’ll NSpire: Built on Best Practices stay connected to your borrowers via Built from the ground-up, the NSpire payment reminders and alerts that M2M Intelligence Platform operates reduce delinquencies. in a highly scalable, reliable, secure and adaptable private-cloud environNSpire Accomodates Growth ment comprised of a leading-edge Spireon’s NSpire platform is scaled network of databases, data centers, for growth. Engineered with flexible Web servers, internet connections, code, NSpire makes it easy to add more and robust software. capacity – more servers, more dataThis private environment, dedicated bases – to meet an increase in traffic. solely to Spireon’s customers and apAs lenders sell more subprime auto plications, is designed to ensure the loans and need to track more vehicles, highest availability of real-time data. In NSpire easily accommodates the growth fact, Spireon’s NSpire M2M Intelligence in devices, data and demand without Platform was recently recognized as delaying service availability. “Best Business Intelligence Platform” NSpire’s flexible design makes it during the Battle of the Platforms at easy to integrate other commonly used
third-party systems such as portfolio management systems, allowing lenders to protect and maximize their existing investments. And as new technologies emerge, NSpire makes it easy to integrate these as well so customers can take advantage of the latest advances. Top-Tier Security Features Security is a priority in the vehicle finance industry. It should also be a priority with the M2M solution you select. NSpire includes stringent security controls across its environment. This includes making sure your borrowers’ data is never accessible over the internet. NSpire’s network encompasses strategically located data centers that employ multiple top-tier security features. Round-the-clock network monitoring allows Spireon’s engineers to quickly identify and address any security or performance issues that could put your data at risk. Adopting an M2M solution is a smart move. To ensure the greatest return for your M2M investment, it’s important to ask your provider how they support the reliable performance, availability, scalability and security of their system. To learn more about Spireon, its leading brands GoldStar GPS, Enfotrace GPS, and the NSpire M2M Intelligence Platform, visit Spireon.com.
2/7/13 3:40 PM
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20 tFebruary 18, 2013
USED CAR NEWS
Payment Processing: Knowledge is Power “Knowledge is Power” and in the world of merchant services this is exactly the case. The more retailers know about their current merchant services contract, the industry, and their options the better they can position themselves to get the rates they deserve. As car dealers know, negotiation is key in the sale of a vehicle and the same holds true for getting the best payment processing rates. Everything is negotiable. Where to start? The first thing a dealer should do is look at a current contract, and calculate the effective rate. Simply dividing your total cost by the total volume processed, and moving the decimal point two numbers to the right does this. An average effective rate for the buy-here, pay-here auto finance industry is 2.5%, a great rate would be somewhere around 2%. If it’s above 3%, alternatives should be sought immediately! Another area to look at is Additional Fees or Occurrence Fees. Detailed analysis of hundreds of merchant statements turns up fees of more than $30 per month that are simply labeled “Basic Fee.” What is a basic fee? “Basically” the provider is charging for nothing. If it doesn’t sound right, chances are it is not. One thing to be mindful of is whether there are any fees with the acronym
E.I.R.F next to it. Electronic Interchange Reimbursement Fee charges transactions at a higher percentage rate based on the way you processed a payment. For example, if the transaction date is two days past the authorized date, or if the authorized payment amount and the settled amount are different; these are instances that can increase the rate you are being charged by VISA and MasterCard. Understanding how the industry works will better assist dealers in determining how to set up merchant services contracts. What is the pricing model? Tiered, Fixed or Interchange Cost Plus? For the buy-here, pay-here auto industry, the most-effective pricing model to be on is Interchange Cost Plus. The demographic that these dealers interact with on a daily basis is the debit card and prepaid card group. Interchange Cost Plus is the only pricing model that has the benefit of the Durbin Amendment. In October of 2011, the federal government passed an amendment regulating “Big Banks” to only charge 0.0005% on volume and $0.22 per transaction of debit and prepaid debit
transactions. If a dealership is contracted on Tiered or Fixed Pricing it could be paying upwards of 2.55% for the same transaction. Paymaxx Pro uses the Interchange Cost Plus model exclusively, and is why it can reduce costs for dealers across the board. Once dealers understand exactly what they are paying for and how much they are paying they need to make sure they get their funds as quickly as possible. With today’s technology dealers can offer the customer many options to make payments. The more options they have the more apt they are to pay timely. While it is still possible to take a payment in person through your swipe terminal or call in and make a payment over the phone, the electronic payment industry is always coming up with new and innovative ways to accept payments. Paymaxx Pro has integrated with Dealer Management Systems, created customized Web-Page Portals, and is on the horizon of offering Pre-Paid Debit Cards, Mobile Web
Payments and Automated Phone Payments. The options are becoming endless. While this can all seem overwhelming and might lead some to feel like they don’t have time for it; it’s important to make time for this because with each electronic transaction you make or receive, you could be spending more than you must. Just as you have reliable lenders, DMS’ and employees you should have a reliable Merchant Services provider that you can call when you have questions or concerns. There is nothing worse that pressing “1” to access your account, “3” to get to technical support, and waiting 15 minutes on hold to end up getting disconnected. Paymaxx Pro prides itself on personal and knowledgable service and the staff is always happy to answer any questions you may have. In fact Paymaxx Pro is so confident we know this industry and the best options for dealers that we guarantee we can save you money on your current processing or we’ll give you $500! Paymaxx Pro provides the automotive industry with payment solutions. Innovative. Secure. Competitive. Contact us at 877.527.5658 or via e-mail at firstname.lastname@example.org. Dealers can visit the website at www. paymaxxpro.com.
5 Best Practices for All Car Dealers By Drew Davitan, Director of Marketing, Skypatrol LLC
I spend 15 hours a day connected to the internet. Even while writing this article, email, Skype, and a web browser are open on my computer. Skypatrol, LLC serves customers down the street, across the country and on the other side of the world . While I take great pride in shaking a customer’s hand and looking him in the eye, I’ll never have the opportunity to meet most of them in person. When I travel things get complicated. I have notes to give, projects to manage and a marketing team that needs my input, my deliverables and occasionally, my guidance. I need to be on the same page with them, often in real-time. Our marketing team at Skypatrol uses almost a dozen “cloud” based applications to do our jobs. Everything from project management to mass email, file storage and live meetings are accessible to anyone of us globally. Not everyone is comfortable working like this, but there are some incredible benefits. These tools already use good practices for getting things done. I don’t need to figure out how a file sharing system should be set up, I just need to find the right “app” and follow its process. We follow a lot of other processes as well. Almost every good idea we implement is inspired from an article
(like this one) or a company in another industry that does really cool things. In school they called this benchmarking and I like to benchmark the winners. While much of my day is spent online, engaged in Skypatrol projects, I would have no new ideas if I didn’t spend some time reading, watching and learning from other sources. In my digital travels I have picked up hundreds of great business practices. These are my top 5 for car dealers regardless of their size: Market like the big brands Dollar for dollar one of the largest media buying groups in the world is the US automotive industry (spending an estimated $30.8 billion in 2013). These companies really know what they are doing and they follow a specific set of rules we all can learn from: 1) They don’t try new things just to try new things. They follow what resonates with their customers and they stick with it (think “Built Ford Tough”, “Volkswagen’s Das Auto”, “Toyotathon”). What was the most successful promotion your dealership ever ran? Why aren’t you running a similar variant every month? 2) Auto brands are consistent with their message. Print ads match television spots, billboards and mailers all of which communicate the unique value of that brand. Lexus sedans are smooth, quiet, and luxurious; Chevy
Trucks are powerful, rugged, and deBe Human pendable. What kind of dealership are The numbers don’t lie. Advertising you? What unique value do you provide that includes a personal human touch to your customers? Does everything gets more people to the dealership than you do consistently communicate that? anything else. Put your managers, salespeople and mechanics in your ads. Let Local online search your customers build a relationship with Your customers are local. Don’t your company’s people before they set compete with every other car dealer foot on the lot. in the world. There are a few things you can do for little to no money online Incorporate GPS technology into that will increase how many people call subprime finance & F&I in or show up at your dealership. 1) This one is our marketing pitch: Add your location(s) to Google Places Skypatrol sells reliable, affordable and pay for a sponsored listing (this GPS recovery products for subprime only costs $25 and is totally worth it). dealers. We also offer the very best 2) Put your physical address on every consumer tracking F&I programs page of your website and everything on the market with the very highest you do online. 3) Add your business, its margins. You can read our white address and contact info to Foursquare, paper (found on our website) or Yelp, Twitter, Facebook and Google anything from NABD, NIADA or the +. Check these sites at least once a other wonderful organizations in this week. This is where your potential industry that talk about the value customers are and you need to be in of recovery and payment assurance front of them. technology. They all are very clear on the importance of these products Cross market for dealers. Feel free to research our This one is simple and easy. Do you competitors as well, they also offer have a tow service, a body shop and a a lot of information on the subject. mechanic you do business with? Many Skypatrol provides a unique value people who need a tow truck, a body to our customers. We manage the shop or a mechanic will need a new car details and provide simple, easy to use either immediately or very soon. How products backed by industry leading are you incentivizing your “partners” customer support. We are always to send you new business? How are here to take your calls and answer you helping them as well? your emails, email@example.com.
2/7/13 2:16 PM
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2/7/13 3:44 PM
22 tFebruary 18, 2013
USED CAR NEWS
How Shoppers REALLY Find You Online Recently, AutoTrader.com conducted a digital audience analysis to provide dealers a more transparent view of the online marketplace by looking at car shoppersâ€™ online behavior. Leveraging proprietary data and technology via AutoTrader.com, Kelley Blue Book (kbb.com) and select partner companies, as well as Adobe technology, this digital audience analysis looked at the online behavior of more than 3 million car shoppers across 1,300 active dealerships to better understand: Ć€É&#x;".É&#x;-#.-É&#x;,É&#x;-")**,-É&#x;0#-#. Ć€É&#x;"#,É&#x;)(Ć?-#.É&#x;.#0#.3 Ć€É&#x;)1É&#x;."3É&#x;(0#!.É&#x;,)--É&#x;-#.Ć€É&#x; "É&#x; )0,&*É&#x; ')(!É&#x; -#.-É&#x; ,É&#x; shoppers visit The findings revealed important insights about the role and influence of third-party sites (e.g., AutoTrader. com, kbb.com) and search engines during the car shopping process and illustrate how crucial it is to accurately capture and measure traffic sources to your website. Over-Reliance on Web Analytics Tools Can Be Misleading Dealers use a variety of tools to source shoppers; many rely heavily on website analytics tools to understand visitor activity to their 1-#.-ĹşÉ&#x;"#&É&#x;."-É&#x;.))&-É&#x;*./,É&#x; reliable data when it comes to direct referrals (the last webpage a visitor
was on that led them to the dealer website), they vastly underreport indirect referrals, which are previous shopping activities on other automotive sites. As a result, thirdparty sites often donâ€™t get proper attribution for the car shoppers theyâ€™re driving to dealer websites. Typical dealer site traffic reports show third-party site referrals at only 2- to 5% while search engines often appear to drive a much rate higher of traffic. These numbers, however, can be quite misleading and can have a negative effect on how advertising dollars are invested. The digital audience analysis, on the other hand, found that that 48% of shoppers on dealer websites had also been to AutoTrader.com or Kelley Blue Book, while 39% had actually visited these sites first. Yet twothirds of them used a search engine to access the dealer site after going to AutoTrader.com. That means car shoppers more likely learn about a dealership on third-party sites, and then use a search engine to locate the dealer website to conduct further research and shopping. "#&É&#x;#.É&#x;'3É&#x;-'É&#x;É&#x;#.É&#x;#&&)!#&É&#x; for shoppers to navigate to a dealer site through a search engine, it also makes perfect sense. The 11+ hours they spend online shopping for a car1 does not occur in a single shopping
session. Instead, shoppers move in and out of sessions over a period of time and use search engines to locate dealers they were exposed to during previous shopping sessions. How Se a rc h Fa c t o r s i n t o Shopping Behavior Search engines play an important role in the car shopping process; however their influence is easily lost in website traffic reports. In the Polk Automotive Buyer Influence Study,1 the majority of new- and used vehicle buyers used search engines as a â€œyellow pagesâ€?type directory service that provides a convenient way of getting to sites and businesses they are already aware of. Specifically, the Polk Study cited that the most common reasons car buyers used search engines were to access a dealersâ€™ website, address or phone number; and access a manufacturerâ€™s site and third-party sites. The digital audience analysis affirmed the role of search-as-directory premise. So, for dealers who use direct referral analytics as their barometer for ad spends, they need to understand these analytics might be misleading. As well, dealers who are heavily invested in SEM risk double-paying for valuable exposure they are already getting in other forms of advertising. Instead, they should focus on understanding the
keywords that shoppers enter into search engines to help identify what type of site visitors they are. What You Need to Know Ć€É&#x; ,"É&#x; 1),%-ĹťÉ&#x; /.É&#x; '3É&#x; ().É&#x; the way you think it does. In other words, consumers donâ€™t typically start their car shopping on a search engine by typing in â€œ2013 Chevrolet Silverado.â€? More often than not, they use a search engine as a way to find you AFTER theyâ€™ve been shopping on a third-party site. Ć€É&#x;,É&#x;-")**,-É&#x;)0,1"&'#(!&3É&#x; use third-party sites to shop, and these sites drive highly qualified shoppers to dealership websites. Advertising on third-party websites is a strategic and cost-efficient way to reach and influence high-quality, in-market shoppers. Ć€É&#x;É&#x;/.#)/-É&#x;)/.É&#x;)0,Ć?,&#(É&#x; on website analytics tools. Since they are designed to report direct referral activity only, they neglect to capture indirect referrals. For more information on the Digital Audience Analysis white paper, go to the www.dealerlearningcenter. com. Source: Polk Automotive Buyer Influence Study, 2011
2/11/13 3:27 PM
DO YOU KNOW TODAY’S CUSTOMER? You may think that AutoTrader.com shoppers only look at the first few listings. The truth is that our shoppers won’t stop looking until they find the right car. That means all dealer listings are in play. IN FACT, SHOPPERS SPEND OVER 11 HOURS SEARCHING FOR CARS ONLINE. And they’ll look at about 125 cars on our site to find that perfect one. See what our very engaged audience can do for your sales at WeWorkForYou.com/Sarah.
©2013 AutoTrader.com, Inc. All Rights Reserved. “AutoTrader.com” is a registered trademark of TPI Holdings, Inc. used under exclusive license.
AT3-618 (Used Car News)
2/7/13 1:35 PM
2/8/13 2:23 PM
24 tFebruary 18, 2013
USED CAR NEWS
Alternate Financing: A Necessary Part of Business Northland Auto Enterprises, the creator of the original Used Car Leasing program - Ren’T’Own®, recently launched a new website – www. RtoLto.com. This site is geared toward educating the car-buying public on the benefits of used car leasing and provides the dealers with free sales leads. This website and the free sales leads prove again that Northland follows through on their motto of “Helping Dealers Succeed”. Northland had three goals in mind when developing the new website: 1. Educating the car buying public on what Ren’T’Own® and Lease’T’Own® is all about. 2. Allow an easy way for customers to locate local Ren’T’Own® and Lease’T’Own® dealers. (Free leads for dealers). 3. Offer a comfortable and easy way for customers to apply on-line for a Ren’T’Own® or Lease’T’Own® car. (Free leads and pre-qualified customers) A Facebook fan page, Twitter account, and blog have also been launched and are all geared toward educating consumers on the benefits of used car leasing and directing them to the nationwide network of Ren’T’Own® dealers. All it takes to start receiving free leads is to become an active Ren’T’Own® or Lease’T’Own® dealer with a minimum of one current vehicle in your fleet. It’s that easy! With over 17 million credit challenged customers in the United States, offering alternate financing
methods at the dealership has become a necessary part of doing business. Used car leasing with Ren’T’Own® is the ideal business model that will set you apart from other dealerships. Northland is helping to drive these customers in your direction. Since 1990, Northland Auto Enterprises, Inc. has been in the business of increasing sales, bottom line profits and marketing opportunities within the automotive industry. Northland helps car dealers, and other automotive enterprises become more profitable and more competitive. The Ren’T’Own® and Lease’T’Own® business models have a proven history of over 20 years and are being used by dealers in 48 states. For more information call 1-8008879-3433 or visit us on the Web at www.northlanddealers.com.
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The Antenna Matters
The radio antenna included in a GPS trackingdeviceisaverycriticalcomponent. Unfortunately, it is too often overlooked when evaluating different products. Antenna efficiency and directionality has a significant impact on the ability to connect to your asset. This connectivity improves your ability to locate a car and it provides for installation flexibility. It also reduces significant hassles such as not being able to reactivate a disabled starter. When going through the FCC’s certification process a GPS device must demonstrate that its antenna is at least 27% efficient. Essentially if 100 milliwatts are put into the antenna at least 27 must broadcast. Antenna efficiency is key in a GPS tracker as it’s the part raising its hand saying, “here I am”. Whereas the best antennas hit 70% efficiency, most on the market barely reach minimumspec. Thedifferenceinsensitivity between 70% and 27% is several orders of magnitude. Selecting a multidirectional antenna is also advantageous. The broader the transmittance angle of the antenna, the less sensitive it will be to orientation. A more efficient antenna broadcasting in many directions will be more flexible than a less efficient one with a concentrated beam. Out in the real world this means that most devices must be placed and oriented very carefully within the vehicle. Customers are commonly told that connectivity issues are due to a “bad install”.
Thismaybetruebutinstallationsensitivity is driven in many cases by a fundamentally weak antenna design. There are two ways a device user can deal with this issue. First, create a detailed process for the installation of devices in your vehicles that ensures correct placement and orientation of the device. Each device should be tested as a part of this process. Second, make sure you are not utilizing a device with a poor design. Have your installer mount a test device upside down under the front seat. If a device can withstand this level of bad installation you will know you have a device featuring good design. Bad installations happen but so does bad design. Make sure you are taking appropriate steps to minimize the impact on your operation. iMETRIK Automotive is a global leader inmachine-to-machine(M2M)embedded wireless solutions that enables companies to reduce cost and increase control of remote assets. The company designs and manufactures devices and acts as a wireless carrier to complete its end-to-end quality delivery model. iMETRIKreachestheautomotivemarket via strategic reseller relationships.
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February 18, 2013 t25
USED CAR NEWS HPV UCN AD DUE 2013.02.08 b.ai 1 2/7/2013 5:16:42 PM
The Importance of Technology in BHPH Today By Kenneth B. Shilson, CPA Founder/President, NABD
As operators begin 2013 they are focused on selling vehicles while Buy Here, Pay Here (BHPH) customers have the required down payments. Although this is understandable in the short term, their longer term focus should be to implement systems and processes which make their operations more efficient and profitable. Inflation and rising costs are inevitable in 2013, and technology plays a vital role in each operator’s ability to control increasing costs. What technology should be included in a BHPH operator’s tool box? Here are some examples which should be considered: a) Payment devices – disablers, GPS, and dual technology can be used to improve collections, recoveries and to reduce the number of collectors needed to service the portfolio. b) Integrated pay portals facilitate customer repayments and allow customers to pay installment contracts without appearing in person at the dealership. Deposits are expedited and the processing of cash transactions is more efficient using this technology. c) Integrated Dealer Management software can link to both (a) and (b) above and provides the foundation for efficient internal systems and processes. d) Automated collection calls using
predictive dialers increases collection coverage and efficiency, which improves both cash flow and profitability. The list above is not intended to be complete and should be used to stimulate further thought and consideration. Want to see all this technology and to network with users and industry experts? Plan on attending the NABD Dealer Academy and National BHPH Conference on May 19-23 at The Wynn in Las Vegas. It provides attendees with the opportunity to see and evaluate it in action! In a rising cost environment, technology is the best way to reduce costs and increase efficiency. I hope all operators have a successful selling season and the vision to focus on improved profitability and cash flow for the remainder of 2013. Many in the industry are now using this technology, so don’t miss the opportunity to remain competitive. Good luck and we’ll see you in Las Vegas. Kenneth Shilson, CPA, is President of the National Alliance of Buy Here, Pay Here Dealers (NABD), which will host its 15th Annual National Conference For Buy Here, Pay Here and Dealer Academy at the Wynn in Las Vegas, Nevada on May 19-23, 2013. For registration or for more information, visit www.bhphinfo.com or call 832-767-4759.
Manage Leads, Build Customer Relationships 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 dealerships’ most valuable asset — your customers — dealers across the board face the same challenges: to effectively and efficiently maintain customer information, and how to use that information to sell more cars. Data management is universal, whether you’re a single-rooftop buyhere, payhere dealer or an auto group. Why manage data? Customers are a dealership’s most valuable asset. Each lead, walk-in, internet request or phone call comes at a cost. Money spent on signage, web sites, advertising costs, anything used to drive traffic. Add up those expenses and divide that by the number of leads that came your way. You’ll be surprised to see the total amount it costs you to get a single lead. It’s easy to recognize the importance of getting and holding on to customer information. Customer information is crucial to
squeeze every last ounce of business out of leads and get the most return from advertising. In terms of dollars and cents, adopting a system to maintain customer information, making customer follow-up simple, is a worthwhile investment. Thebestwaytomanagecustomerdata Having a good system for managing customer data for continued follow-up and relationship building is important. You need a system tailored to your needs, one that gives quick access to information when needed, and provides for accountability for your sales staff. The first step to reverse the paper trend is to acknowledge you are losing valuable information. Has your staff been trained to collect the lead’s full name, phone numbers and email address? Make it a priority to demand the collection of data as a way to operate your business. The lack of collecting email addresses is a common problem in today’s automobile marketplace. It reduces your ability to compete effectively. Teach it, demand it, and use it to sell more cars. Find out more at www.autoraptor.com or 888-421-6533.
2/8/13 2:21 PM
26 tFebruary 18, 2013
USED CAR NEWS
PassTime Is More Than a Just a Vendor You may think all GPS companies are the same. They offer generally the same products, similar Web sites and features. You might even switch between products, interchanging them based on the latest offer you received. If your GPS provider is just a vendor and it meets your needs, then why change? Well, if they are just a vendor, simply a seller (or reseller) of a device, then you might as well. But providers in this space are not all the same. PassTime, which has been in business for more than twenty years and is a trusted name in the industry, is more than a vendor – they are a partner. Partner is a term that is thrown around a lot these days. So what is it that makes PassTime a partner with its customers? Here are a few things to think about when looking at your GPS device provider. Disclosures: You likely are aware of the need to disclose GPS and similar products to the customers using them. Depending on the state, specific requirements may vary, but failing to disclose exposes lenders to legal action against them, on a variety of grounds. Does your GPS provider counsel you on disclosing the devices to customers? Further, does the company give you written legal disclosures
to use? Or do they tell you to do it on your own? PassTime has worked with some of the top legal professionals in the space to create state-specific, written disclosures outlining the use of the device, how it operates, and the responsibilities of all parties with respect to the device. This free service helps PassTime protect its customers and make sure they are following proper disclosure processes.
issue, do they respond? PassTime offers its partners dedicated sales and service reps in addition to 24/7 live customer support. PassTime believes that its customers deserve to speak to a real live person. You shouldn’t have to leave a voicemail and wait for a call back while your done-deal is slipping away. Quality product: Yes, everyone says that their product is high quality- so why pay more? Judge for yourself. When you get the product,
24/7 live support: If you have used any sort of GPS device in the past, you know that certain issues occur. Various installers working on countless makes and models of vehicles, cellular and GPS technology, websites, and the devices themselves are all factors that can lead to your questions or need to troubleshoot. When that need arises, how does the device provider stack up? You might have a sales rep that calls you five times a day when they want an order, but when you have an
how does it look? If you want to use starter-interrupt features or an audible warning, do you have to hook up additional wires or harnesses? Most importantly, how does it operate? Does your provider give you the tools necessary to ensure the device is installed, set up and continually working properly? Are you in the dark until you need to find a vehicle, and then take your chances? PassTime designs, develops, and manufactures its own products, (not buying then reselling devices). It can ensure the quality of
its products because it controls the manufacturing processes. PassTime’s products fit the subprime lending market because they were designed specifically for it. Additionally, PassTime offers installation verification services to test all components of an install as well as reports to show the current status of devices. With a device failure rate under 0.5% on over a million devices sold, PassTime truly offers a quality product. PassTime loves to sell product as much as anyone in the industry. But because the company values its customers as partners, it invests time, resources and capital into superior product quality, support and even provides legal disclosure forms. When you choose a GPS provider, look a little deeper than you may have before. See if your vendor is simply looking to sell as many devices as possible, or is it a company looking out for your best interests, conducts itself with a positive reputation in the industry, a company that is more than a vendor, a company that is your partner. For more information about PassTime, please visit us at the ALL NEW www.passtimeusa.com, email firstname.lastname@example.org or call 877-PASSTIME.
Side by Side Income Comparison BHPH vs. Northland’s Lease’T’Own® Analysis Assumptions: 10 cars per month for 12 months (Jan—Dec). The average cost per vehicle is $4,753.00. The average weekly payment is $86.00 per week . Taken from the National averages for 2011. SOURCE: NADB-NCM
End of Year 1
$55,920 End of Year 1
End of Contract
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Cost of Cars NET PROFIT
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2/7/13 3:38 PM
February 18, 2013 t7
USED CAR NEWS
Technology Abounds at BHPH World 2013 Only 120 million or so people tuned in to watch the Super Bowl XLVII and saw a great game, except for 34 minutes of rambling announcers trying to fill in the 34 minutes of down time that came from having a blackout occur shortly after the second half kick off. It should serve as a lesson to all of us. Not having one’s technological ducks in a row can cost you money, waste valuable time and destroy a reputation — as fast as the speed of light. If you are a buy-here, pay-here dealer in North America, you have a chance to see the latest available to you from the nation’s top technology vendors. Whether it’s a DMS, payment processing systems, CRM tools, payment assurance devices, telephony systems or the latest in skip tracing, it will all be under one roof at the 19th Annual Leedom Group BHPH World 2013 Convention April 8-10 at Caesar’s Palace in Las Vegas. The nation’s longest-running event dedicated to the deep subprime and buy-here, pay-here marketplaces will be host to the largest vendor exposition in the country dedicated to this marketplace. Literally dozens of vendors whose sole purpose is to make a dealer’s life easier through the better use of technology will be on hand at this must-attend event.
Leedom Group Executives Chris Leedom and Chuck Bonanno have been in full planning mode with their team and the convention’s Dealer Advisory Committee to organize and plan this
of speakers and over 20 workshops where you can hear from the best in the business,” Bonanno said. “People ask us why this is the best event to attend to see all that is buy-here, pay-
LEEDOM GROUP 19 TH ANNUAL
WORLD CONVENTION 2013 year’s event. “I was just going over a preview of this year’s program and it is jampacked,” Leedom said. “There is a lot going on in our industry and you do not want to miss this marquee event where everything buy-here, pay-here is represented.” This year Leedom Group has assembled a program that is customdesigned to appeal to each and every dealer. Its approach has been and will always be to scour the industry for the best concepts and new strategies to help dealers achieve success. “We have a tremendous line-up
here. The answer is this convention offers twice the number of workshops of any other event, features the most open exhibit hall time (and yes the food and drinks are always amazing – and included) and has a following of more than 10,000 attendees since inception.” Leedom said he is always amazed at how many dealers truly compliment his team on ideas and concepts they are going to put into practice when they get home. “It is even more rewarding to see the emails coming from them after they go home with stories of success,”
LEEDOM GROUP 19 TH ANNUAL
WORLD CONVENTION 2013
Leedom added. One of the main benefits of attending an industry event like the BHPH World Convention is it expands a dealer’s horizons. It’s almost inevitable when they hear about new practices or concepts and how they will integrate into an operation. “Much of this comes from the interaction with dealers that exchange ideas and stories throughout the entire program,” Bonanno said. “We love these discussions and it is part of what makes this industry great — our ability to share what we know to help others.” As a dealer himself, Leedom is excited about the new technological innovations that await dealers at this year’s convention. “The technology spotlighted at BHPH World 2013 will help all of us in the months and years ahead,” Leedom noted. “It’s a tribute to our vendors and the dealers they serve that advances in dealership technology is developed so quickly and adopted so readily in our industry.” For more information about the BHPH World 2013 Convention April 8-10 in Las Vegas, visit the convention Web site at www.bhphworld. com or call 888.582.5009 or send an e-mail to Diann Flanders at diann@ leedomgroup.com.
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2/8/13 11:26 AM
28 tFebruary 18, 2013
USED CAR NEWS
iGOTCHA GPS Grows Relationships QUICKly in 2013 Search for Actionable Intelligence is Over In January 2012, iGOTCHA GPS launched their QUICK device and the industry was soon well aware a new device standard had been established. In June 2012, iGOTCHA GPS revamped and launched its 3rd version of their dealer interface. This update was quickly recognized as the most user-friendly interface available, while providing superior programming technology and blazing locate speeds. iGOTCHA GPS has consolidated its competitive advantage in the GPS tracking industry and gained unparalleled momentum following the introduction of its high performance QUICK tracking device. The release of its much anticipated new web interface combined with continued exceptional customer support makes Callpass the industry’s preeminent technology leader. The new Web interface adds dynamic visionary features, functionality and security options not contemplated on its predecessor device. Customers have adopted these enhancements and currently enjoy the industry’s fastest, most versatile device. iGOTCHA GPS continues to provide the best products and services to their customers through innovation and product design. By seeking customer input, iGOTCHA GPS has actively engaged and involved their customers in the creative and feature functionality improvement processes. 7603 Payteck_Target UCN_2013_Layout 1
Having direct customer input furthers the efforts of providing the best tracking solution in the industry and continues to separate iGOTCHA GPS from its competitors. 2013 is off to a phenomenal start and with tax season now upon us, iGOTCHA GPS continues their ascension in the industry becoming the fastest growing, most reliable, and highly regarded GPS tracking device company. If change is part of your new year’s resolution for 2013 then the time to change GPS providers is now. It’s time you had a better GPS tracking experience, it’s time for Quick! Also immediately available, iGOTCHA GPS is rolling out the new Area Agent program. Lucrative careers with opportunity are now available for experienced GPS resellers, distributors and marketing professionals. If you have GPS experience and want to earn the industry’s highest compensation, call today and find out what iGotcha has to offer. You will be amazed, but these positions wont last! Fo r more information about iGOTCHA GPS visit w w w. c a l l p a s s t e c h . c o m or call 877-324-1443.
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What if dealerships could improve profitability, customer retention and associate morale just by changing the way data is managed in the dealership? Six months ago, NCM® Associates began introducing its clients to its new Web-based dealership data management tool, axcessa™. The need for this technology is clear: because so much of a dealership’s data is contained in separate fixed, variable and accounting systems, getting to actionable business information often takes hours or even days. As much as 30 percent of a manager’s time is spent extracting and compiling
data into management reports rather than on productive activities. The irony is that managers are spending numerous hours each month creating reports so they and their executive teams can make better decisions about being more productive! NCM axcessa puts an end to manual reports. With a single login, it delivers the right information to the right people in the right format in under a minute. Meanwhile, managers are driving departmental efficiencies, dealers are being proactive, and customers are seeing the difference. For information call 877.361.4961.
Dependable Dual System Protects Your Investment Payteck’s dual system is the best way to both protect your investment and take care of your customers. As the values of buy-here, pay-here vehicles continue to increase, loans become riskier. Finance organizations are demanding larger down payments. Now, more than ever, it’s important to protect your asset with both a proven code device and a GPS system. The dual approach offers many advantages over a single unit. It provides real protection, not just a decoy. Let’s say you want to have cellular coverage and a code device for the customer when a payment is made. The code device is a favorite with dealers because it brings customers in
for payments and vehicle inspections. When you use the code device in conjunction with a GPS system, you will always be able to track the vehicle should you need to recover it. Another popular option is to use a GPS system in conjunction with a WebTeckPlus system. The device, concealed under the dash, provides unlimited commands to your customer. It can be used in every state, including Alaska and Hawaii. The WebteckPlus, one of the most reliable systems available, has a very low cost of operation at only one dollar a month. Payteck provides many solutions to vehicle finance rather than just one method. For more info, email us at email@example.com.
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2/11/13 3:31 PM
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2/7/13 4:24 PM
30 tFebruary 18, 2013
USED CAR NEWS
RETAIL MARKETS FLORIDA
David Cox, owner/principal, Cox Motors LLC, Lakeland, Fla.: “I’ve been in business at this location for about two years. I’ve been in business since 2001. “I keep around 15 to 20 vehicles in inventory, on average. “I source my vehicles from wholesalers and auctions. “On average, I sell 10 to 15 units per month. “That’s about the same as this time last year. “I do buy-here, pay-here and lease-here, pay-here. “I’ve been doing the leasehere, pay-here since moving into this new location. “It’s worked out well. “But one of the big hurdles is the amount of insurance that the customer is required to carry on a leased vehicle, which is more than a buy-here, pay-here vehicle. “That’s a requirement in the state of Florida. It can cost the customer more money, too. “I carry more domestics than imports. It’s probably 90 percent domestic, be-
Compiled by Jeffrey Bellant
cause of the cost of imports. “About 90 percent of my vehicles are cars, and the rest are a mix of trucks, SUVs and vans. “My miles have gone up over the years. On average, the vehicles carry about 115,000. “The average model year is about 2003. “We don’t have a service shop. “I outsource (repair) work. My reconditioning costs are between $400 and $500 per vehicle. That’s about the same as last year. “For marketing and advertising, I use my web site and I use a free local publication called the Auto Shopper. “My average retail price is about $7,500. “Recently, I sold a 2003 Buick LaSabre. I think that one had about 113,000 miles. The retail price was $7,900. “Gauging by my customers, 2013 (is looking better). “Through the end of last year, many of my customers had their (work) hours cut and they were a little tight on payments. “But their hours are starting to come back.”
Michael Darrow, president, The Auto Finders, Durham, N.C.: “I have one location. In May, I will have been in business 20 years. “I have about 46 units on the lot. That’s normal for this time of the year. “(To acquire inventory), we get a lot of trade-ins, and we buy from auctions. “We also get vehicles from Enterprise and Hertz. They send us a weekly run list of what they have, before they go to auction. “On sales, we’re down just a little bit. Last year, we averaged 28 units per month. But the fourth quarter of last year was kind of slow, to be honest. We sold just around 20, which was similar to 2011. “But overall in 2012, each month was better than the previous year – until we got to November and December. “The other thing is we still have one of the highest unemployment rates in the country. “We sell retail, subprime and buy-here, pay-here.
(The breakdown) is about 25 percent retail, 50 percent subprime and 25 percent buy-here, pay-here. “We have come up a little bit on the number of buyhere, pay-here deals we do. We’ve increased that a little because the cash flow is getting better. So we’re putting more on the street. “The average down payment on a buy-here, payhere sale is about $1,300. The average term is 27 months. “We’ve tried to keep to our guidelines really tightly on buy-here, pay-here and have even let (deals) walk. It just doesn’t make sense to make a stupid deal. “Our average retail price on buy-here, pay-here is $7,995. For retail and subprime, it’s $9,995. “Our vehicles have, on average, 88,000 miles. The average year is about 2007. “The buy-here, pay-here vehicles will be closer to 2003 or 2002 model years. The mileage on those is about 123,000. “The majority of my inventory is cars, followed by SUVs and then trucks.
“Imports make up about 40 percent of my inventory, so it’s 60 percent domestic. “We outsource our service and reconditioning. “We’re averaging about $320 for recon per vehicle. But once you get over 100,000 miles, your recon is going to go up substantially. At that point, there might be a cracked windshield, dents and paint touch-ups. “But I really don’t look for projects that might take two or three weeks to fix. I look to get something on the lot as quickly as possible to increase the turn. “Primarily, our marketing/advertising is Internet, about 90 percent. We do a tiny amount of radio and a tiny amount of direct mail. Last year we were putting more in radio and more in mail. “In the past, we used both of the (large third-party Internet sites), but we’ve gone away from them to Dealix and we buy their leads. That’s been going well. “We recently sold a 2003 Honda CRV EX, with 95,000 miles. That sold for $9,300.”
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2/11/13 3:03 PM
WHOLESALE MARKETS CALIFORNIA
Lewis Beshoff, general manager, Prime Auto Auction, Carson, Calif.: “Prime Auto Auction has been in business 15 years. But we’ve been at this location for 12 years. “We have six lanes and we’re running four. “Volumes are slowly creeping up. We’re averaging 800 to 900 per week. “That’s a little bit higher than this time last year. The bottom line is, we’re owned by AutoNation, so a large number of vehicles we sell are AutoNation trades. They’ve done a great job of increasing their retail sales, which leads to a lot of trades going to the auction. “We have a new fleet manager that we retained last summer and he’s increased our fleet volume. We also started a new franchise lane, which is for new-car stores only. That’s going well and we’ve increased that volume. “We’re not into factory or highline sales. Off-lease sales are not really our core business, because we’ve built the auction around
dealer trades. “Conversion rates are also creeping up. Our average is about 55 percent. “As we get into spring and the tax season, the prices will go up. “We average about 400 dealers in the lanes each week. The vast majority are from the greater Los Angeles area. “We see a lot of new registrations, but they are also mostly from the Greater Los Angeles area. “Most of our volume is dealer trades, with about 15 to 20 percent fleet-lease. “Although our regular sale is on Friday, we also run an online remarketing sale on Tuesdays. That is for new-car franchises only to remarket their frontline inventory via our online bidding system on Auction Pipeline. That is very successful. “The average selling price on the block is between $5,500 and $6,500. “In terms of the dealers’ moods, I don’t think they are struggling as much as they were two or three years ago. They had to bat-
Compiled by Jeffrey Bellant ten down the hatches, look at their cost structure and the inventory they were carrying, etc. “The dealers who survived the past two or three years - the smart, successful ones - are looking for significant growth in the next two years, as the SAAR gets back to normal. “This market is a good time to be in the business for a smart car guy. If you have your ducks in a row, business is only going to get better.”
Don Sistrunk, general manager, Louisiana’s 1st Choice Auto Auction, Hammond, La.: “May will mark our 11th year. “We have four lanes and we’re running all four lanes. “Our volumes have been between 500 and 600 cars weekly. “(On Feb. 4 and 5) we had our Rockin’ Mardi Gras sale, which was in conjunction with Mardi Gras down in this area. We kind of pattern it after the DAA Northwest Rock & Roll sale, but on a smaller scale, of course. It
was our first year of doing that. It was a two-day event with a big party. We had the Bag of Donuts band and the Cronkites play. “We ran more than 900 cars during the sale the next day. “Overall, however, for the past three years, we’ve increased our business 20 to 30 percent each year. That’s fantastic for us. It’s getting better and better for us. We’re doing all the right things. “I don’t have numbers yet, but I would guess the numbers for January and February are up considerably from last year. “We’re running anywhere between 60 and 65 percent conversion rates. “We draw about 300 dealers on average. During the big sale, we drew (an additional) 150 dealers. “The majority of our dealer base comes from the New Orleans, Baton Rouge and southern Mississippi area. “sAlso we’ll draw from Hammond and Slidell, which are close by. “Things are good for the dealers now, though there
is a little bit of grumbling because (at press time) the income tax money has not come in as early as they expected it to. It’s starting to come in now. “The majority of our business is dealer consignment. It’s probably 85 percent, compared to 15 percent lease-repo. “We run several institutional accounts, including a couple of national ones. “We also have a special sale for cars that don’t run, which runs along with specialty vehicles like box trucks or boats or RVs. On an average, we run about 20 or 25 units. “All four of our lanes are also online. So we’re actually selling 12 to 13 cars per week online, plus we’re getting bids (on other vehicles). “The average price of vehicles coming through the lanes is probably $5,500. “We’re looking forward to the rest of 2013. “We’re growing by leaps and bounds. We expanded our office facility in November. Now we’re going to have to pave more of our lot.”
2/11/13 3:04 PM
ACTUAL WHOLESALE AND PROJECTED RESIDUAL VALUES FEBRUARY 2013
SOURCE: BLACK BOOK
2011 Domestic Cars Buick LaCrosse CX 4D Sedan Cadillac DTS 4D Sedan Chevrolet Cruze LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 Base 4D Sedan Chrysler 200 Touring 4D Sedan Ford Mustang Base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan Ford Focus SE 4D Sedan Import Cars Acura TL Base 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan 2.4 Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Galant ES 4D Sedan Nissan Altima Base 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra Base 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Trucks Cadillac Escalade Base 4D Utility AWD Cadillac SRX Luxury 4D Utility AWD Ford Edge SEL 4D Utility Chevrolet Colorado LT Crew Cab 4WD Z85 Chevrolet Equinox LS 4D Utility FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D Utility 4WD Ram Dakota Bighorn Ext Cab Dodge Grand Caravan Express Wagon Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Flex SEL 4D Utility Jeep Grand Cherokee Laredo 4D Utility 4WD Jeep Wrangler Sahara 2D Utility 4WD BMW X3 XDrive28i 4D SAC
Feb-12 19000 27400 13600 12700 20250 14050 17100 19500 27100 11600 Feb-12 27300 28300 67700 15150 15800 30000 40600 12850 14000 15300 12550 15100 12450 16500 Feb-12 50900 32700 21550 19975 18150 18850 27875 14950 15550 17975 29600 19775 21225 23225 23125 34000
Aug-12 19800 26500 13200 13400 19800 14050 16950 19000 24400 11750 Aug-12 25150 27200 62300 14800 14750 29000 40600 12100 13200 14500 12200 14800 12900 16600 Aug-12 48800 32350 21250 19175 17900 20100 29275 15525 15525 17375 28250 20825 21850 24400 22700 33050
Feb-13 17200 24900 11300 11200 16900 11850 15000 16400 21600 10600 Feb-13 23000 23800 53300 13850 13750 26800 33800 10450 11650 12950 10500 14150 12150 14300 Feb-13 45400 28550 20950 19075 16350 19575 27025 15150 14175 16675 27150 19250 20350 24175 21625 31150
Projected Figures Feb-14 Feb-15 15175 12900 19775 16650 9700 8325 10225 8975 14400 12350 10300 8750 12850 11425 14625 12500 17525 14575 9100 7775 Feb-14 Feb-15 19500 16875 20325 17425 48775 42150 12125 10700 10600 8750 23150 20275 30250 24600 9025 7725 10300 8975 11350 9975 8800 7600 11850 10525 9875 8625 12350 10475 Feb-14 Feb-15 38825 33300 24650 21025 17225 14925 17250 15400 13175 10825 16850 15050 22975 20000 13225 11850 11500 9850 14450 12225 20900 16650 15975 14025 17575 15150 19175 15425 18150 16075 25850 21925
Domestic Cars Buick LaCrosse CX 4D Sedan Cadillac DTS 4D Sedan Chevrolet Cobalt LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 Touring 4D Sedan Chrysler Sebring Touring 4D Sedan Ford Mustang Base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan Ford Focus SE 4D Sedan Import Cars Acura TL Base 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Galant ES 4D Sedan Nissan Altima Base 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra Base 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Trucks Cadillac Escalade Base 4D Utility AWD Cadillac SRX Luxury 4D Utility AWD Ford Edge SEL 4D Utility Chevrolet Colorado LT Crew Cab 4WD Z85 Chevrolet Equinox LS 4D Utility FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D Utility 4WD Dodge Dakota Bighorn Ext Cab Dodge Grand Caravan SE Wagon Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Flex SEL 4D Utility Jeep Grand Cherokee Laredo 4D Utility 4WD Jeep Wrangler Sahara 2D Utility 4WD BMW X3 XDrive30i 4D SAV
2009 Domestic Cars Buick LaCrosse CX 4D Sedan Cadillac DTS 4D Sedan Chevrolet Cobalt LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 Touring 4D Sedan Chrysler Sebring LX 4D Sedan Ford Mustang Base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan Ford Focus SE 4D Sedan Import Cars Acura TL Base 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Galant ES 4D Sedan Nissan Altima Base 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra Base 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Trucks Cadillac Escalade Base 4D Utility AWD Cadillac SRX 4D Utility AWD V6 Ford Edge SEL 4D Utility Chevrolet Colorado LT Crew Cab 4WD Z85 Chevrolet Equinox LS 4D Utility FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D Utility 4WD Dodge Dakota Bighorn Ext Cab Dodge Grand Caravan SE Wagon Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Taurus X SEL 4D Utility FWD Jeep Grand Cherokee Laredo 4D Utility 4WD Jeep Wrangler Sahara 2D Utility 4WD
Feb-12 11000 17400 7050 9800 13550 7650 12450 12000 18850 8900 Feb-12 22000 20200 55300 12250 9650 22400 27400 9450 11400 12200 10250 12350 9550 12400 Feb-12 37000 20900 16100 17525 12325 15800 22575 11900 11050 14600 14725 16100 14600 15100 18925
Feb-12 16950 20900 8450 11300 14000 10300 14700 17600 23200 10100 Feb-12 24900 24300 63600 13650 11250 26000 35600 11250 12500 13800 11250 13700 10850 14200 Feb-12 44400 30500 17900 18375 15100 16975 24725 13400 13000 15300 18050 17900 19375 17675 20675 30400
Aug-12 16350 19000 9450 12000 14600 12000 14550 16300 20200 10500 Aug-12 22350 22900 56500 13350 11450 25200 35800 10900 12000 13300 11100 13250 11400 14050 Aug-12 41600 29150 18400 17750 15100 18750 25725 13800 13475 15350 18775 18525 19525 17925 21125 28350
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 40450 25850 18150 17375 14325 18250 23550 13075 11850 15050 17700 16975 18050 16725 20150 26750
Projected Figures Feb-14 Feb-15 12725 10725 15200 12900 6900 5950 8950 7725 11950 10275 7850 6300 10975 9550 12575 10600 14375 11750 7725 6525 Feb-14 Feb-15 16925 14200 17900 15225 42400 36150 10750 9325 8250 6800 19775 16725 24775 19800 7775 6500 8975 7950 10050 8775 7900 6675 10350 9050 8400 7325 10675 9025 Feb-14 Feb-15 33475 28100 21600 17775 14825 12700 15475 13750 10725 8700 15150 13325 20175 17175 11325 10000 9350 7775 12225 10225 14625 12075 14150 12350 15250 13075 14950 12075 16450 14275 22425 18900
Aug-12 9150 14900 6600 8700 12250 7600 11300 9300 15700 7650 Aug-12 16000 17100 29400 10800 8050 18800 21400 8050 9700 10400 9150 10700 8850 11450 Aug-12 29950 18000 14475 15325 10350 14150 20525 10675 8900 11050 13125 13100 10450 13150 17300
Feb-13 8300 12900 5550 7650 10900 5900 9550 7250 12800 6550 Feb-13 14600 15200 25500 10200 7000 17000 17400 7250 8200 8900 7450 10150 7650 9800 Feb-13 28550 15750 13475 14425 8900 13300 18775 9325 7975 10900 11800 12500 8950 11625 16500
Projected Figures Feb-14 Feb-15 6750 5850 10375 8750 4700 4025 6325 5150 9800 8050 4400 3450 7950 6750 6850 5750 9925 8200 5175 4075 Feb-14 Feb-15 11425 9275 12700 10625 19875 15750 8100 6825 5275 4250 14100 11950 14500 11350 5375 4375 6675 5575 7350 6175 5675 4600 7775 6625 6175 5275 7575 6125 Feb-14 Feb-15 22075 18050 13475 11150 10400 8750 11875 10125 6850 5450 10975 9500 14250 11575 8600 7450 6900 5650 8400 6625 9625 7625 10350 8875 7950 6450 9875 7900 12600 10650
2008 Aug-12 10900 16900 7650 10100 13650 9200 13000 11300 17250 9150 Aug-12 19800 19400 48500 12050 9550 21800 26800 9300 11050 11850 10150 11900 10150 12400 Aug-12 35150 20150 16775 16900 12225 16625 23725 12225 11225 13800 15075 15675 12575 15550 19150
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 35550 18100 15850 16125 11525 15550 22200 11450 9850 13325 14600 15400 11725 15000 18400
Projected Figures Feb-14 Feb-15 8325 7150 13350 11125 5700 4925 7650 6600 11475 9750 5750 4550 9200 7925 8650 7325 11925 9850 6400 5300 Feb-14 Feb-15 14375 12000 15125 12725 35475 29075 9400 8075 6800 5550 16550 14175 19350 15275 6575 5350 7975 6825 9100 7800 6775 5650 9050 7800 7350 6275 8875 7325 Feb-14 Feb-15 28150 23175 16575 13700 12750 10825 13900 12025 8900 7100 13300 11675 17575 14550 9925 8725 8325 7050 10450 8525 11900 9675 12375 10725 10000 8275 12500 10225 14300 12225
Domestic Cars Buick LaCrosse CX 4D Sedan Cadillac DTS 4D Sedan Chevrolet Cobalt LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 Touring 4D Sedan Chrysler Sebring LX 4D Sedan Ford Mustang Base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan Ford Focus SE 4D Sedan Import Cars Acura TL Base 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan Lexus ES 350 4D Sedan Mercedes-Benz E Class E350 4D Sedan Mitsubishi Galant ES 4D Sedan Nissan Altima Base 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra Base 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Trucks Cadillac Escalade Base 4D Utility AWD Cadillac SRX 4D Utility AWD V6 Ford Edge SEL 4D Utility Chevrolet Colorado LT Crew Cab 4WD Z85 Chevrolet Equinox LS 4D Utility FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D Utility 4WD Dodge Dakota SLT Ext Cab Dodge Grand Caravan SE Wagon Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Taurus X SEL 4D Utility FWD Jeep Grand Cherokee Laredo 4D Utility 4WD Jeep Wrangler Sahara 2D Utility 4WD
Feb-12 9750 15400 6000 8600 12300 6400 10800 10000 17300 7600 Feb-12 17000 17800 32200 10950 8250 19200 22600 8000 10400 11100 9150 11150 8500 11350 Feb-12 32650 18400 14775 15950 10325 14200 20950 10600 9125 12575 12725 13850 11150 13275 17500
2/7/13 2:11 PM
February 18, 2013 t33
USED CAR NEWS
Disconnected Jottings From Tony Moorby... Iâ€™ve never been an avid sports fanatic. I love sports and admire all the athleticism that goes with it â€“ I just canâ€™t get worked up to a frenzy in support of a particular team or person.
rugby, not much protection stood between you and a visit to the emergency room. Basketball, at best, was a knockabout game to pass time in the gym while waiting to do something else. Netball, its
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When I was young I held the schoolâ€™s records for the 100 yards and the 220 yards for a couple of years and earned a medal at the White City Stadium in London, for hurdles. I enjoyed cycling â€“ even belonged to a cycling club and going on 100 mile Sunday training rides was a regular thing. My brother and I were interested in racing and time-trialing as well as watching oval-track velodrome racing. Being English, soccer was a natural pursuit but our school was not that big into rugby. Cricket was boring and dangerous; like
closest relative in England, was a game solely reserved for girls. When I came to Nashville and the companyâ€™s fortunes later extended to leasing a box at the Titansâ€™ stadium and a suite at the Predatorsâ€™ ice hockey rink, watching sports in this most civilized fashion was as enjoyable for its social attachments as watching the games themselves. Itâ€™s now necessary to sign a mortgage to visit a football game, buy a beer or three and eat a hot dog at a price for which you could buy the whole hog. Heaven fore-
fend buying a t-shirt, for that would send you in to penury and all this for seats in the nose-bleed section! Give me my Barco-lounger with a cold one at the end of my elbow and Iâ€™ll get a better view than a referee and watch all the replays at a constant 70 degrees with my feet at a comfortable 110 degrees to the rest of my body. â€œSpoilsport!â€? I hear you say. Itâ€™s really a function of my advancing years and an abhorrence of any discomfort when itâ€™s entirely unnecessary. I realize that I miss some of the atmosphere and the partying that goes on prior to a game but in our part of the world, standing in a parking lot, eating mediocre food can be at both extremes of the Fahrenheit scale. Iâ€™ve done the tailgating thing both as a recipient and a cook. The cooking was the most enjoyable but even then Iâ€™d be deficient of some important utensil to render the right results. In my kitchen at home I can do things blindfold and I never have to search for a corkscrew or bottle opener. As for the support of athletes these days itâ€™s a crap shoot as to whoâ€™s doing what drugs or taking â€˜backhandersâ€™
C R O S S WO R D
to throw a game â€“ as if they didnâ€™t earn enough money already! Take Lance Armstrong â€“ please! Seriously, for the longest time it was a pleasure to see it taken to the French on their own turf in the Tour De France with all their references to drug-taking stinking of sour grapes. Meanwhile this ego maniac was lying through his teeth. To me he represents the worst case of fraud on the largest levels of any. Now this liar and cheat wants some kind of absolution (and more air-time to feed his ego) for coming clean. What a bloody cheek! He should be sued for every penny he ever took from a sponsor, including the Postal Service. Theyâ€™re going broke â€“ what the heck are they doing throwing money away sponsoring a cyclist, anyway?
He should do time and the media should never mention his name ever again â€“ that would offend him the deepest. Now the European Associations are turning up early evidence of bribery and corruption in soccer circles extending all the way to organized crime. Is that bending it like Beckham? Iâ€™m afraid the money attachment to sports starts early â€“ some local high school football teams here were giving all kinds of spiffs to have jocks attend certain schools. At the college level thereâ€™s enough money thrown around to bend the moral compass of a saint (and some not-so-saintly) and it goes on and gets worse from there. Maybe the sport is in the competition between the authorities and the teams and players.
To see past columns from Tony Moorby, log on to www.usedcarnews.com/ columnists/tony-moorby
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By Miles Mellor
Down 1. 2. 4. 5. 6.
Across 1. Plush Toyota sedan 3. ____ Tracker 5. Ford hybrid 9. Visit 10. ____ MP4-12C 12. Hondas 13. Itâ€™s where the dials and controls are 15. Oil price setters 17. Flex or Fusion 19. Hybrid ad abbreviation 21. ___ Commander 22. Word with box or shift 24. Sports-luxury automobile marque from Germany
25. Condition 28. Promotion 30. The Aventador, for one 34. Land of Ford and GM 36. Test site 37. Popular 38. First branded as a Morris and an Austin 39. â€œI canâ€™t believe it!â€? 41. Best 42. Suffix with cash 44. Brit sports car maker 45. Time before 46. Element maker
Nissan SUV Wheel turners Edwardian ____ Top exec Emil Jellinekâ€™s daughter - whose name was given to a luxury car brand 7. Puts a mark on a survey 8. Get a ____ peak! 9. iQ or tC 11. Replace a branded trademark name with another on basically the same car 14. ____stick 16. Went over the limit 18. Kia model 19. Misterâ€™s wife 20. Student score (abbr.) 23. Stumbling expression 24. The Alp was a _____ car (nationality) 26. Mazda SUV 27. _____ Spitfire
29. Give back, a leased car for example (2 words) 31. Green color 32. Move like a Rolls 33. Laughter noise 35. Car model 1991 â€œLegendâ€? 40. Aston Martin letters 43. Driverâ€™s ___
Answers to the 2/4 /13 puzzle V O L K S W A G E N E D G E
E L A I N C P I A M A O S C B E N O D E R R
O S H C O W D E I D E M P A N R T H G E R
T E O L N S R C P O L C U M O N
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T A O S T O I N O M N A R S T I E N R I E E R
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2/8/13 11:41 AM
ÛÛÝÛÛÛFebruary 18, 2013
USED CAR NEWS
Advertisers are solely responsible for content of classified advertisements. To place and ad, or for more information, call the Classified Department: 800-794-0760 ext.107
Manheim Tampa 4/9/10 SALVAGE AUCTIONS
VEHICLES FOR SALE
Why Buy Inventory from Hertz Dealer Direct?
Fastest Growing Salvage Sale in FLORIDA
Simulcast NOW Available!
Located on CONE Rd. Sale Every MONDAY 9:30 am Over 180+ units weekly
Well, We’ve Got PLENTY of Reasons
• Thousands of Used Cars Available On-Line • Locally Sourced Inventory In Your Area • Domestic, Import & Luxury Models Available • Simple On-Line Bid Now/Buy Now Process • 100’s of OFF-Lease Vehicles • Available to US and Canadian Dealers
Indoor VIDEO SALE located at Cone Rd. Proudly featuring: Ford Credit, Progressive, All State, Geico, State Farm, and various Fleet Lease
Buy Online. Buy Direct.
DEALER SERVICES Payment Books $ 7 .9 9 C u s t o m e r P a y m e n t Bo o k s p r i n t e d a n d s h i p p ed to you o r y o u r c u s t o m e r with in 2 4 hrs. Order online or by f a x . . . W k l y, B i w k l y a n d Monthly payments. O N LY $ 7 . 9 9 p e r BOOK! C a l l 8 0 0 - 4 7 9 - 2 2 2 6 to set u p y o u r a c c o u n t . R eceive 5 b o o k s f r e e w / f i r s t o rd e r.
FACILITIES FOR SALE/LEASE
USED CAR LOT for sale - Maple Shade, New Jersey. On busy Route 73. Half acre. $375,000. 856-321-9000.
or go to www.cardealerbondnow.com
Garage Liability Specialists! Exclusive markets! Williams $ Stazzone Ins., 800-868-1235 www.wsins.com
Clear-up ugly plastic headlites to a like new appearance. Call 1-866-998-4999 or visit www.uglyheadlights.com
UPCOMING ISSUES March 18 - Payment Assurance Technology Deadline Wed., March 6
April 1 - Fleet / Lease Focus Deadline Wed., March 20
(813) 247-1666 5109 Cone Road Tampa, FL 33619
AUCTION BUYER. Flat fee purchasing. All cars checked for accident/damage. 17 years, Florida based but will travel. Licensed and bonded dealer. Global Auto Group Inc., 561-262-3008, STEKRA@AOL.COM
CAR DEALER BONDS
DEALER WEBSITES Starting at $30/mth No Set Up Fee / 877-266-8913 www.YourCarLot.com
April 15 - Dealer Management Software Deadline Wed., April 3
May 1 - Data Source Book Deadline Thurs., April 4
May 6 - NABD Convention Deadline Wed., April 24
May 20 - Product Showcase Advertorial Deadline Wed., May 8
June 3 - How to Get a Life Off the Lot Deadline Wed., May 22
TO ADVERTISE PLEASE CALL 1-800-794-0760 EXT. 107
UCN NewsNow is sent out Monday through Friday at 8am EST
WHOLESALE BUYER -REP 30 yrs exp. Fl based. Will travel, references avail. Call Michael P. 954-445-6589
BEST DEALS ON WEBSITES We want to help you. Since 1999. 888-236-1434 www.AutoRevolution.com NW Auto Dealers! Stop overpaying for insurance & bonds. 855-396-0488 www.ShepQuote.com Shepard & Shepard Insurance
FREE Breakfast 8:30 am
Start your day with an update on the latest news happening in your industry!
For lease/sale. Owner will ﬁnance. 50 yr. family run business. Ofﬁce full furnished: Desk, computer, camera system, alarm system. Lot signs, piped fencing. Corner car lot. Call 972-485-1816. Garland, TX
YOU CAN PLACE YOUR AD IN THIS SECTION FOR AS LITTLE AS $56! Place a 4 line ad today and it will appear in 4 issues for a total cost of $56.00 – $14 for each additional line, plus the ad will appear on our website at no extra charge!
800-794-0760 ext.107 email@example.com
Sent to dealers and remarketing professionals, UCN eNews is another new addition to our newsletter offerings. eNews is sent every Wednesday at 1 p.m. EST, and features informative articles about the latest in technology, internet and social media.
WOODLAWN, VA Used Car Lot with 2000 sq. ft. Office, plus 3000 sq. ft. Mechanic Shop with 5 Bays on 1 acre $275,000 with Owner Financing for 1/2 Down. Call (276) 235-1904 Well established pre-owned dealer, turn-key operation on the north-side of Houston looking to sell! Owner-ﬁnancing for qualiﬁed buyer. 19 year old clientele base in same location. 2.02 acres mostly clear. Room for 150 plus cars. Fenced, lighted, concrete. More information please call Tracy 713-306-4847. Serious only.
REAL ESTATE Half acre corner lot for sale on Rt. 30 (White Horse Pike) near Berlin, NJ. Approved for car lot with engineer plans. 109k. (609) 868-7032
Sent to dealers and remarketing professionals, Auction Extra is a new addition to our newsletter offerings. Auction Extra is sent every Friday at 1 p.m. EST, and keeps you informed about the latest happenings in the auto industry.
TRANSPORTATION SERVICES LOMEN AUTO TRANSPORT Serving the upper Midwest 37 yrs, 10 car haulers 800-697-0757
2/11/13 3:31 PM
Westlake Financial Services
Westlake Financial Services is a member of the Hankey Group
* Based on total number of funded dealers. Experian AutoCount report as of September 2012.
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