Used Car News 3/7/11

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Dealer Sets Example for Other Women

By Emily Caswell

Being the daughter of a car dealer meant Kitty Van Bortel always had cars to drive. But it was the desire for one special car that launched her on the path to becoming a top operator in her own right.

Van Bortel found herself without a car in between her junior and senior years of college in 1975. So she applied for a job at a local dealership and a manager hired Van Bortel on the spot.

The next day, however, the owner of the dealership called her to say there had been a terrible mistake and they wouldn’t be able to employ her.

The reason? A woman had never sold cars at the dealership before.

Already honing her sales skills, Van Bortel convinced the owner to let her meet her fellow employees and let them vote whether or not she could work there. She won the staff over and went

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on to be the top sales person that summer.

She returned the next summer with a degree in psychology and the incentive of a brand new Mustang to drive.

Within 10 years, Van Bortel had worked her way up to manager of a MercedesBMW dealership.

“I kept trying to get myself in a better and better position,” said Van Bortel.

Just when everything seemed to be going her way, Van Bortel was fired.

So she struck out on her own in 1985, renting a home in a suburb of Rochester, N.Y., and selling used cars out of the front yard.

“I have a lot of respect for the used-car business,” she said. “To me, it’s the backbone of the business.”

With the success she found in selling used Subarus, Van Bortel made it her goal to start her own Subaru dealership. On top of that, the owner who had fired Van Bortel had previously given up his Subaru franchise. ”I wanted to prove to him that not only did he make a mistake in firing me, but in giving up the Subaru brand,” said Van Bortel.

In 1992, she became a member of the Subaru Chairman’s Roundtable, a select organization of the top 20 dealers in the country in terms of sales and customer satisfaction. In 1999, Van Bortel Subaru became the largest Subaru dealership in the nation, receiving “Stellar Performer” certification for the last 10 years.

WISDOM: Kitty Van Bortel, ownerof the Van Bortel Auto Group in New York, accepts the ATHENA Award from the Women’s Council of the Rochester Business Alliance.

“I was really driven,” she said.

Today, Van Bortel also operates a Ford dealership and a used-car lot with 70 percent of her business coming via word-of-mouth.

The Van Bortel group also hosts an in-house auto auction that has grown immensely since it began 15 years ago.

Along with her success in business, Van Bortel has given back to her community.

She is a sponsor of numerous charities, including Camp Good Days & Special Times, Susan B. Anthony House,

AIDS Rochester, Quad A for Kids, Pluta Cancer Center and Gilda’s Club. She is also a frequent speaker.

It’s these accomplishments and more that have led Van Bortel to receive a number of awards in her community.

Most recently, Van Bortel was honored by the Women’s Council of the Rochester Business Alliance as the recipient of its 2011 ATHENA Award.

“I’ve won a lot of awards, but I love the fact that the ATHENA Award is more about you as a person, what you do for the community,”

said Van Bortel. “Also a lot of it points towards helping young women. I really do think it was so rewarding because I work so hard to help women.”

Van Bortel supports the Rochester Women’s Foundation and the National Association of Women Business Owners. In 2005, she was recognized by Rochester Business Journal as One of Rochester’s Most Influential Women, and in 2009 was the recipient of the Rochester Women’s Network’s W Award.

(Another woman honored, page 3.)

IN THIS ISSUE • Thieves steal car, leave behind key to other vehicle. – Page 5

• New association helps dealers with training. – Page 9

• Veterans reflect on the history of remarketing. – Page 8

• Earnings improve for companies offering auto credit. – Page 16

DO MORE WITH AUTOTRADER.COM. Check out the back page and see how our dealers put more to work for them.

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Manheim Honors Female Dealer Tamara Darvish, executive vice president of DARCARS Automotive Group in Washington, D.C., was honored with Manheim’s 7th annual Barbara Cox Anthony Automotive Woman of the Year Award.

The award exemplifies the many contributions Darvish has made to the automotive industry and various charitable organizations. Manheim CEO Dean Eisner presented the award to Darvish at Northwood University’s annual breakfast, held at the National Automobile Dealers Association convention in San Francisco.

Darvish began her automotive career in 1984 with DARCARS Automotive Group, her family’s business. Since then she’s held positions in nearly every department, including sales, service, accounting, finance and collision repair. In her current role, she is responsible for overseeing daily operations of all departments as well as building and maintaining vendor relationships.

DARCARS Automotive Group now owns 35 franchises, ranking in the top 10 privately held Automotive groups in the country. They also operate the largest manufacturer franchised collision center in the country.

“Tamara is a shining example of an outstanding leader, role model and

tireless advocate for our industry. We are extremely proud to recognize Tamara’s commitment to her profession, her colleagues and her community with Manheim’s annual Woman of the Year award,” Eisner said. “Tamara’s passion for representing industry concerns, her dedication to lifelong learning and commitment to giving back to her community are qualities to be admired; we can all learn and be inspired by her many accomplishments.”

A common theme throughout Darvish’s career has been an endless enthusiasm for education and business leadership. She graduated from Northwood University and the NADA Dealer Candidate Academy; graduated from the University of Toyota’s Quality Financial Management and Quality Executive Management programs; and spent a year as part of Leadership Washington, during which 50 of the city’s leaders examine and resolve issues affecting the citizens of Washington, D.C. “Being recognized by my peers with this award is both humbling and appreciated,” Darvish said. “I have the pleasure of working with countless colleagues who love the automotive industry just as much as I do, and who give their time and

HERE’S TO YOU: Tamara Darvish accepts a cup from Manheim CEO Dean Eisneras part of her recognition as the 2010 recipient of the Barbara Cox Anthony Automotive Woman of the Year.

resources to improve their communities. I’m proud to be part of such a dedicated group of people.”

Darvish has long been an advocate for the automotive industry and the good works of industry professionals.

She was elected chairman of the board for the Washington Area New Auto Dealers Association and was

appointed chairman of the Industry Advisory Committee by the Mayor of Washington DC. Darvish frequently consults with Congress on retail automotive issues. She currently serves on the board of directors for the Toyota Dealer Advertising Association, and on the boards of Greater Washington Board of Trade.

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NEWS BRIEFS KAR Sees Higher Earnings

with net income of $5.3 million in the est dealer sales percentage of all dealers using OVE.com this past year. fourth quarter of 2009.

Prestige secured more than 58,000 Manheim Honors Top views of its 1,600-plus vehicles listed OVE.com Operator through OVE.com in 2010.

The company averaged 34.5 views Manheim saluted the top volume dealer seller group on OVE.com in per vehicle, with 368 unique U.S. buy2010, Prestige Management Services ers from 36 states. of Ramsey, N.J. Prestige operates seven dealerships ‘Prii’ Official Plural of Prius in a tri-state area.

Toyota Motor Sales USA Inc. anM I L E STO N E S The Prestige group was the top vol- nounced that the general public has ume dealer seller group on OVE.com selected ‘Prii’ as the preferred plural Auction founder and car dealer (Denver).

Dwight M. “Swede” Clark died on Clark was the second person to do in 2010, with 1,519 units sold to 368 term for Prius.

With 25 percent of the votes, Prii Feb. 18. He was 86. live automobile TV commercials in buyers across the U.S. and to 19 buyers in other parts of the world. becomes the term recognized by ToyClark was born in Albia, Iowa. After Illinois.

In addition, Prestige had the high- ota and Dictionary.com. graduating high school, he moved to He hosted and sponsored the teleDes Moines, Iowa, and started his entre- vision programs “Breakfast With preneurial career. He married Donna Swede” and “Courtesy Playhouse Published By General Media LLC Jean Ryan in 1945 in Kansas City, Mo., Movies.” He was a member of the USED CAR NEWS (ISSN 1555-7413) is published at and then moved to Rockford, Ill. Tebala Shrine and a Mason. He was a During the course of 60 years, he devoted husband, father and grandfa24114 Harper, St. Clair Shores, MI 48080 founded more than 20 businesses of ther. Clark is survived by his wife, Phone: 586-772-5200 or 800-794-0760 Fax: 586-772-9400 which DM Clark Cos. and Greater Donna; sons, Mark D. (Carol) Clark www.usedcarnews.com Rockford Auto Auction operate to- and Steven L. Clark; and grandchilday. dren, Ryan (Carolyn) Clark and Katy Charles M. Thomas Other endeavors included Courtesy (Matt) Wiesen.

Founder (1947-2002) Motors, Courtesy Aircraft, Parkway Lynda R. Thomas, Publisher Toyota, Swede Clark’s Courtesy, Colleen Fitzgerald, General Manager Courtesy Subaru, Courtesy OldsmoPAGE 26 bile/Datsun, Clark Properties, Falls Editorial: Lincoln Mercury, Garland Chrysler Ted Craig, Managing Editor Plymouth, Clark Broadcasting, SerJeffrey Bellant, Staff Writer vice Insurance, Forest Hills Motors,

by Myles Mellor Gilded Cage, A-Mar Manufacturing Contributing Writers: and Mountain States Auto Auction KAR Auction Services Inc. reported higher revenue, earnings and net income in the fourth quarter.

KAR is the parent company of ADESA and Automotive Finance Corp.

For the fourth quarter of 2010, the company reported revenue of $441.3

million as compared with fourth quarter 2009 revenue of $417.9 million.

Adjusted earnings for the fourth quarter of 2010 was $103 million as compared with fourth quarter 2009 adjusted earnings of $99.7 million.

Net income for the fourth quarter of 2010 was $7.3 million, as compared

Emily Caswell, Sheila McGrath, Dave Piestrzynski Columnist: Tony Moorby Advertising: Shannon Colby, Account Manager Megan Frump, Account Manager Marie Hingst, Account Manager Circulation: Helen Thomas Production: Cliff Bennett, Production Manager usedcarnews.com: Josie Godlewski, Media Manager —

Vol. 16 • No. 23 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.

OUR ADVERTISING APPROVAL POLICY Please submit clear, legible copy. Payments from first time advertisers must accompany the insertion order. Distribution is guaranteed by U.S. Postal Carriers.

The advertising reservation deadline is 5:00 p.m. Friday, 10 days prior to the issue date. Camera ready ads must be received by noon on Monday prior to the issue date.

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Bad News Proves Good for Sales

By Ted Craig

Prices should remain high at auction for the near future. And that’s good for the used-car business.

Dealers who struggle to buy inventory may feel differently.

A constant complaint from dealers is they can’t get cars at auction.

Manheim econoTom mist Tom Webb Webb said the real story is they don’t want to pay the current prices.

“We have cars that don’t sell at auction every day,” Webb said.

There’s little relief in sight for the high prices, but they probably won’t continue climbing.

Repos will continue to fall as newer contracts perform better, Webb said.

That will be offset, however, by an increase in new-car trade-ins.

The consumer is back, Webb said.

Credit is back.

High wholesale prices help both those factors.

Dealers can offer more for trades because they know they’ll get a good price at auction. Also, creditors can book more deals, again because they know high wholesale prices will cover most repos.

Low interest rates help both as well. Money is cheaper to lend for both retail car purchases and floor planning, said Jonathan Bank, NADA Used Car Guides senior director of data services.

Another factor that seems like a negative but could be a positive is gas prices.

Many fear higher prices at the pump hinder consumers from spending money. But Paul Taylor,

purchase decisions and online advertising to reach a wider audience.

The downside of that is consumers come in today armed with more information for negotiation than ever before.

Wholesale prices, which reached historic levels in January, should stay for a while.

And that’s good for the used-car business.

Thieves Take Car, Leave Keys for Other Vehicle

By David Piestrzynski

A dealership with an unusual name became the target of thieves.

A group of crooks stole a 2008 Toyota Scion from Lying Lee’s Used Cars in Morehead, Ky., Feb. 19.

Employees arrived at the store to find the back door broken open and the keys to several vehicles lying out in the open.

The Scion was the only vehicle taken, but employees also found the keys to a car stolen from another dealership.

Police said that vehicle was likely a getaway car ditched earlier by the thieves.

Also missing after the burglary were several of the dealership’s tools, a generator and another vehicle’s stereo system.

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chief economist for the National Automobile Dealers Association, said that could actually cause some consumers to switch into more fuel efficient vehicles.

The recent challenges mean better operators, Banks said.

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Three days later, a Lying Lee’s employee saw the Scion being towed by a black 1993 Nissan King Cab truck, about 10 miles from the dealership.

The employee followed the thieves for several miles. When they realized they were being followed, they unhooked the Scion and fled.

The employee then notified the Kentucky State Police, who pursued the truck.

The suspects attempted to elude police by driving into a nearby yard, but were soon caught.

After searching the vehicle, troopers found several controlled substances and other drug paraphernalia.

They also found several pieces from the stolen Scion.

The suspects – Molly Lynn Ward,

Kelly Shannon and Michael Wesley Chaney – all face various drug charges.

Chaney, who was driving the Nissan, is also charged with receiving stolen property, DUI second offense aggravating circumstance, no insurance, no registration or receipt and for not wearing a seatbelt.

Marty Stevens, Lying Lee’s current owner, said the vehicle is completely inoperable, but is fully insured.

The whole episode seems like the kind of story Stevens’ father was known for telling when he owned the store.

Stevens kept the name after taking over the dealership in 1959.

“I figure most people just think us used-car dealers are lying to them anyway,” he said. “I am always truthful though.”

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Auto Makers Issue Truck Recalls

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WASHINGTON (AP) – Two large manufacturers renowned for their quality issue massive recalls recently.

Toyota Motor Corp. recalled 2.17 million vehicles in the United States to address accelerator pedals that could become entrapped in floor mats or jammed in driver’s side carpeting, prompting federal regulators to close its investigation into the embattled automaker.

The Transportation Department said it had reviewed more than 400,000 pages of Toyota documents to determine whether the scope of the company’s recalls for pedal entrapment was sufficient.

“As a result of the agency’s review, (the National Highway Traffic Safety Administration) asked Toyota to recall these additional vehicles, and now that the company has done so, our investigation is closed,” said NHTSA administrator David Strickland.

Toyota has now recalled more than 14 million vehicles globally to fix gas pedals and other safety problems since 2009. The company has received intense scrutiny from the government since August 2009, when four people were killed in a highspeed crash involving a Lexus near San Diego.

U.S. regulators largely cleared the company in February, saying that electronic flaws were not to blame for reports of sudden, unintended ac-

celeration that led to hundreds of complaints. Transportation officials tied the problems to mechanical defects dealt with in recalls and “pedal misapplication,” in which the driver stepped on the accelerator instead of the brakes.

The company has, however, paid the U.S. government a record $48.8 million in fines for its handling of three recalls.

In its latest safety action, Toyota said more than half of the vehicles under recall were being added to a massive 2009 recall that fixed gas pedals getting trapped in the floor mat.

The Japanese automaker said it would add three models to the 2009 pedal entrapment recall: about 600,000 4Runner SUVs from the 2003-2009 model years; 761,000 RAV4 compact SUVs from the 20062010 model years; and 17,000 Lexus LX 570s from the 2008-2011 model years.

Toyota spokesman Brian Lyons said the additional pedal entrapment recalls were “based on our continued constructive dialogue with NHTSA. While our actions up to now have led to a substantial reduction in reports of acceleration concerns, we mutually agreed that Toyota would take these additional steps to help ensure that acceleration concerns are further reduced.”

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Recalls – Continued from prior page The recall also includes 372,000 RX 330, RX 350 and RX 400H vehicles from the 2004 through early 2007 model years and 397,000 2004-2006 Toyota Highlander SUVs and hybrid versions to replace floor carpet covering and retention clips on the driver’s side that could interfere with the accelerator pedal arm.

Toyota also recalled 20,000 2006 through early 2007 GS 300 and GS 350 all-wheel drive vehicles to change the shape of a plastic pad embedded in the driver's side floor carpet that could cause pedal interference.

Lyons said the company was unaware of any accidents or injuries related to the new recalls.

Toyota still faces dozens of lawsuits from owners. NHTSA has received allegations of 93 deaths from sudden acceleration. NHTSA, however, has confirmed five of them.

The company said owners of the recalled GS 300 and GS 350 vehicles will be notified of the recall in early March. Owners of the RX and Highlander vehicles will be notified in the ``near future'' and receive a second notification once replacement covers are available.

Owners of the recalled 4Runner, LX 570 and RAV4s will also receive an initial notification in the near future, followed by a second notification once the recall preparations are complete.

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The recall covers trucks from the 2005-2006 model years in the United States and Canada for what the company calls a ``relatively low risk'' of the air bag deploying inadvertently.

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PAGE 8 – FOCUS ON REMARKETING

Remarketing’s Long, Strange Trip

By Jeffrey Bellant

Last year, Stuart Angert joked at the Conference of Automotive Remarketing about the humble beginnings of RSA, the remarketing company he founded in 1991.

Angert said he taped a paper sign to the door with the company name. The company’s suite was a post office box.

“Our first car remarketed was actually a pizza truck,” Angert said.

Remarketing also had a modest start with manufacturers.

Virgil Matczak started at Chrysler Leasing Corp. in 1965, about a year after it was formed as a manufacturing remarketer.

“We were losing some penetration at the time,” Matczak said. “One of the ways we could go after both the commercial and daily rental business was to get into the leasing arena.”

The change meant that Chrysler would put the vehicles out on a leasing contract and when the contracts were up, Chrysler took the cars back and sold them itself.

“We felt by managing that process, we could boost residual values on the cars, as well as get more Chrysler products into the marketplace,” Matczak said.

The rest, as they say, is history.

Dan Kennedy, manager of GM Remarketing, started with the company’s finance staff 33 years ago but has lived and breathed remarketing for the last quarter century.

The GM remarketing program kicked off in 1982.

“It just kind of grew from company cars to rental repurchase cars and then, in the late 1990s, we brought the off-lease vehicles into the parade,” Kennedy said.

Remarketing’s volumes spiked for Chrysler in the 1980s, going from tens of thousands to hundreds of thousands.

“You had to find ways to manage the sales of those units,” Matczak said. “The whole distribution process changed.

“You went from, maybe, a half-dozen auctions or a dozen, to 30 auctions.”

Kennedy, like Matczak, said M a rc h 7, 2 0 1 1

the industry just wasn’t prepared for the huge volumes that would be coming through the manufacturers.

“There was a need to go out and start auction sites and marshaling yards to accommodate the business,” he said.

One challenge for Kennedy, as a financial analyst, was the lack of automation in the mid-1980s, which involved handling invoices manually.

“I can’t tell you how many nights I had invoices on the floor of my living room, checking all those VIN numbers against a master list.”

Kennedy added there also had to be tight controls among remarketing partners.

“When you’re running half a million to a million vehicles,” Kennedy said, “it’s very easy to get caught up and lose a vehicle or two. When you’re talking about a $20,000 or $30,000 automobile, it is a big deal.”

Kennedy credits all of the company’s partners in making an expansive process work smoothly.

Kennedy said the professionalism in the industry has grown by leaps and bounds. “(The industry) is helping to create legislation and set standards,” he said. “You wouldn’t have had that in 1986.”

Also, in the early days, auctions were limited in services and innovation.

“We’d go to auctions and they’d be painting vehicles outside,” Kennedy said.

Some recon efforts back then would make remarketers wince today.

“I remember going to some sites and asking how they straighten frames, if we needed it,” Kennedy said.

“They would show us a tree and a chain.”

Today, auctions have stateof-the-art facilities - no trees and chains.

Of course, the biggest change of all was the rise of the Internet.

“The opportunity to be able to sell a vehicle online - in many cases, sight unseen - is huge,” Kennedy said.

“If you were having this conversation 20 years ago, even 15 years ago, people would say you’re crazy.”

Industry experts all said the Internet will continue to play

REMEMBER WHEN?: In the early days of remarketing, Chrysler Leasing Corp. began taking back lease cars after their contracts were up and sold them itself. The company felt its product was strong and it could boost values and pump more of its vehicles into the marketplace this way, according to Virgil Matczak, who worked for Chrysler at the time.

a huge role.

“There’s going to be a reduction in the number of cars going through that (physical) auction process,” Matczak said.

Online firms are already taking a number of vehicles out of the remarketing stream

and those are increasing.

Although Kennedy believes the Internet will continue to play a strong role, it’s hard to predict where the future will go.

“The industry’s going to go where the customer wants it to go,” Kennedy said.

“Frankly, I think you’ll end up having a pretty strong Internet (component) accompanied by a strong physical auction.

“Because I haven’t yet seen where the Internet can store a vehicle, park a vehicle, recon it or repair it.”

Experiment in Remote Sales

File Photo BACK IN TIME: Virgil Matczak, shown here being inducted into the National Independent Automobile Dealers Association’s Ring of Honor in 2003, recently talked about an experiment in remote selling when he was still at Chrysler.

By Jeffrey Bellant

Online buying may have seemed like a fantasy when remarketing began, but Chrysler and Manheim gave dealers a glimpse of the future nearly two decades ago.

Former Chrysler remarketer Virgil Matczak said the two partners experimented with remote buying in the early 1990s with a test sale.

Chrysler had a group of dealers who had a closed circuit television system, Matczak said, and wanted to

look for ways to sell rental vehicles directly to its dealer body through Manheim.

So this network of 26 dealers would each have a television in their dealership.

A stage at Manheim would have 26 women, each carrying a sign with a letter representing a dealer. An auctioneer would also be present.

Prior to the start, dealers would have a run list of vehicles being offered, with condition reports. At the beginning of the auction, the television screen would

show the vehicle and its condition.

The auctioneer would start the bidding and each dealer would call in his bid via an 800 number, which would go into the corresponding woman who would relay the bid to the auctioneer until the car was sold.

“It was really just a test to see how effective it could be,” Matczak said.

“At the time, we found there were all kinds of flaws, but it was great to see how effective electronic sales could be.”

WWW.USEDCARNEWS.COM

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Pair Start Dealer Association

By Jeffrey Bellant

A veteran dealer association executive introduced a new entity serving auto dealers across the country.

Jim Edwards, former executive director of the C a r o l i n a s Independent Automobile D e a l e r s Association, announced the creation of The Professional Jim Dealers Institute.

Edwards The group will provide dealers with compliance, regulatory, educational and legislative tools.

Edwards is working with Kathryn “Kat” Messenger, who worked with him at the Carolinas IADA. Edwards and Messenger are experienced automotive trainers.

They have trained numerous dealers in the Carolinas over the past nine years - in both pre-licensing and continuing education - as leaders of the state association.

Edwards said The Professional Dealers Institute will not mirror other organizations in that the Institute’s sole focus is on education, legislation and information.

Messenger’s expertise is in dealer compliance while Edwards is a

veteran in the field of risk management.

Edwards also is a former lobbyist and has worked in the state houses of the entire South-east as well as the U.S. Congress.

Messenger spent the past three months running Carolina Dealer Tra i n i n g L L C , p rov i d i n g p re licensing and continuing education.

Kat The dealer trainMessenger ing firm will become a ‘sister’ to the Professional Dealers Institute.

The pair introduced the Institute at Manheim Carolina on Feb. 16.

Several industry CEOs were present as well the new association’s legal counsel, Tom Hudson of Hudson Cook LLP. Reynolds and Reynolds has also partnered with Carolina Dealer Training LLC and the Professional Dealers Institute to provide the industry’s most compliant forms to independent dealers.

Edwards said membership cost for the Professional Dealer’s Institute is $225 and the first year will include, at no additional cost, one full year of Spot Delivery, a monthly legal newsletter for auto dealers.

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UCN_10

2/28/11

10

•

4:33 PM

Page 1

USED CAR NEWS

M a rc h 7, 2 0 1 1

GM Provides Fleet Management General Motors Corp. expects fleet During the call, GM executives sales to continue improving in 2011. expressed optimism that the two Brian Small, GM’ ss general sides are in direct correlation, and manager of fleet and commercial will help each other out significantly. operations, said the company expects Small said, as the company’s ability commercial vehicle sales to increase to meet demand in the used-car as much as 10 market increases, percent this there will be less year as rising necessity to add demand for incentives to units inventory and for which there is “Our customers an aging fleet low demand. have consistently brings buyers to The manufacstores. turer also unveiled asked us to help In 2010, the a new fleet manmanufacturer agement program, simplify their... saw an 11 GM FleetTrac. processes.” p e r c e n t The program increase in offers consolidated – Brian Small commercial billing and other vehicle sales, he features to reduce said, including administrative eight consecuburdens that come tive months of increases. The with fleet maintenance. company’s overall fleet sales, includ“Our customers have consistently ing sales to rental companies, asked us to help simplify their fleet increased more than 20 percent in management processes,” Small said.

2010. “(GM FleetTrac) will help us offer He predicts that commercial sales our customers unsurpassed convenwill increase between 8 percent and ience while simultaneously helping 10 percent in 2011. them reduce their administrative Small said retail demand will also workload and costs.” likely affect the commercial fleet The program is available for fleets market. of all sizes.

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UCN_11

2/25/11

3:23 PM

Page 1

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UCN_12

2/28/11

12

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10:07 AM

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USED CAR NEWS

M a rc h 7, 2 0 1 1

State Mulls Used Car Tax Cut LITTLE ROCK, Ark. (AP) – The Arkansas Senate voted to cut taxes on groceries, used cars and manufacturers’ utility bills while a House panel supported creating an annual sales tax holiday, expanding the wish list of tax relief measures that legislative leaders say will have to be whittled down.

Arkansas lawmakers initially approved cuts that state officials say will cost the state $141.4 million in the coming two years.

Republicans in the majority-Democrat Legislature are pushing for relief beyond the half-cent grocery tax cut advocated by Democratic Gov. Mike Beebe, but said some compromise will be needed.

“Budgeting’s about priorities, and it will be very difficult to pass all of the tax bills that are out there,” said Sen. Gilbert Baker, R-Conway, co-chairman of the Joint Budget Committee.

The Senate unanimously approved cutting the sales tax on groceries by a half-cent, a reduction that would cost the state about $20.8 million a year.

Beebe won re-election last year primarily on his promise to continue cutting the tax, which has been reduced from 6 cents to 2 cents since he took office in 2007.

The Senate also passed by a 33-0 vote legislation to raise the exemption on used-car sales from $2,500 to $5,000.

The proposal would cost the state $5.8 million in the coming fiscal year and $7.4 million the following year.

The used-car tax cut had the backing of Baker, Senate President Paul Bookout and that chamber’s Democratic and Republican leaders.

The Senate was more divided on a proposal to cut the sales tax manufacturers pay on natural gas and electricity.

The bill, approved on a 23-9 vote, mirrors a proposal approved by the House. But it also phases in a tax break for high efficiency power generators.

The measures now head to the House, which approved cutting taxes on capital gains, manufacturers’ utilities and single parent income.

Though he’s indicated he may give in on some tax cut proposals, Beebe warned some state services could be hurt by the measures.

“Somebody’s going to suffer, and now it’s a question of do you suffer a little bit or a little more? That’ll be dependent on how much they cut,” Beebe said.

The tax cut would be the latest good news for the state’s dealers.

Arkansas recently increased its usury rate, which had been one of the lowest in the region.

The bad news from Arkansas for dealers lately is a movement to enforce an existing law requiring a license for towing vehicles.

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2/25/11

3:24 PM

Page 1

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UCN_14

2/28/11

14

•

10:08 AM

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USED CAR NEWS

M a rc h 7, 2 0 1 1

Former Dealership Staffs Face Fraud and Forgery Charges A couple of former dealership staff members face charges in unrelated cases.

Lara Marie Nance, 34, of Townville, S.C., pled guilty to wire fraud in federal court in Greenville, S.C. Nance was an employee of Land Rover of Greenville. Over a several year period, Nance printed unauthorized business checks from her employer and deposited them into personal and business accounts she established at various banks. In creating “business accounts” she used similar names as legitimate Land Rover vendors. Thus, the payments Nance funneled to herself appeared on the face of the accounting system to be legitimate.

To carry out her scheme, Nance needed full access to the computer system at Land Rover. To accomplish this, Nance forged a letter to ADP, the company Land Rover used to control access, granting Nance full system administrator privileges.

This also allowed Nance opportunities to cover up her fraud.

Investigation revealed that Nance used the stolen money for multiple purposes, including the purchase of automobiles for friends and family.

Nance would go to other dealerships, purchase a car free and clear, and then sell it to others for pennies on the dollar.

Nance enjoyed the reputation of being a person who could obtain “good deals” for others. U.S. Secret Service agents have seized approximately 16 vehicles Nance purchased in this manner.

The maximum penalty Nance can receive is a fine of $250,000 and/or imprisonment for 20 years, plus a special assessment of $100.

The Kentucky State Police Post arrested a former dealership employee and his wife for alleged identity theft.

Paul Anthony and Christy Casolari of Cumberland, Ky, were arrested for forgery following several months of intense investigations.

Paul Calosari was employed at Creech Chevrolet in Harlan, Ky., as the finance manager. Police say that between 2008 and 2010, he was stealing identities of prior customers and using them to purchase vehicles for resale.

After purchasing the vehicles, Paul Casolari would then sell the vehicles in and out of state over the Internet.

Paul Casolari was charged with 12 counts of theft of identity, 106 counts of forgery second degree, eight counts of theft by deception over $300 and theft by unlawful disposition auto. Christy Casolari faces similar charges

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UCN_15

2/25/11

3:25 PM

Page 1

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2/28/11

•

Page 1

USED CAR NEWS

M a rc h 7, 2 0 1 1

Creditors Report Better Results Auto credit has performed well lately and that’s been reflected in the results of several publicly traded buyhere, pay-here chains and subprime finance companies.

America’s Car-Mart reported an increase in revenue to $92.6 million in its latest quarter from $83.8 million in the same period last year. Same store revenue grew 5.3 percent.

Retail unit sales Hank increased to 8,266 Henderson from 7,824 for the prior year quarter.

Car-Mart’s active customer base now stands at almost 50,000.

“The benefits of working with our customers are showing up in recent credit trends,” said Car-Mart CEO William H. (“Hank”) Henderson.

The company continues to avoid risk despite the strong performance.

Allowance for credit losses remains unchanged at 22 percent of finance receivables.

Another buy-here, pay-here chain, Now Auto Group, fared less well.

The company reported revenue of $1 million and a net loss of $0.07 per diluted share versus revenue of approximately $2.1 million and a net loss of $0.06 per diluted share in the prior year.

During the quarter ended Dec. 31,

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2010 revenue declined over the prior quarter.

The company has a new line of business made up of contract purchases and third party point-of-sale transactions. This is projected to produce $391,000 in earnings and interest revenue.

The cost of charge-offs and defaults improved by 34 percent over the same quarter of the prior year as a result of increased credit criteria, improved contract management and system upgrades.

Nevertheless, management has chosen to increase the bad debt hedge against future potential losses.

C re d i t Ac c e p t a n c e C o r p. announced consolidated net income of $47 million for the three months ended Dec. 31, 2010 compared to consolidated net income of $40.3 million for the same period in 2009.

For the year ended Dec. 31, 2010, consolidated net income was $170.1 million, compared to consolidated net income of $146.3 million for the same period in 2009.

Adjusted net income, a non-GAAP financial measure, for the three months ended Dec. 31, 2010 was $43.6 million, compared to $35.5 million.

For the year ended Dec. 31, 2010, adjusted net income was $160.5 million, compared to adjusted net income of $125 million for the same period in 2009.

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UCN_17

2/28/11

10:49 AM

Page 1

USED CAR NEWS

Customer Service Earns Award The Independent Automobile Dealers Association of Colorado announced that Stan’s Auto Sales LLC has been awarded 2010 Quality Dealer of the Year.

laid-back environment, giving customers an easy and friendly buying experience. Stan’s offers Auto Check background reports, Better Business Bureau accreditation, and strict adherence to the professional standards espoused “I am so very by the Colorado IADA. proud of the Colorado IADA staff at Stan’s Executive Director Gary Zimfor bringing their merman said, “Stan’s Auto Sales best every day.” is a testament to the time-tested – Stan Martin business credo that taking care of customers’ This award is given annually to the needs in an honest, thoughtful and independent dealer who most closely thorough manner is the key to buildmeets the criterion of ethical prac- ing a successful enterprise. Stan Martices, superb operations, business tin and his team exude extreme comgrowth, and community commit- petence and are the epitome of ment. Nominees are received from friendly customer service. They’re past winners and members of the not just good folks to buy a car from; Colorado IADA board of directors. rather, the people at Stan’s are the Stan’s was established in 1998. type you’ll want to form a lasting reOwner Stan Martin has over three lationship with. ” decades of experience in the auto“I am humbled to have received this motive industry, including sales, sales honor,” Martin said. “But more so, I management, general management am so very proud of the staff at Stan’s and high-volume wholesale purchas- for bringing their best every day. And ing. finally, we are grateful to the thouThe mission of Stan’s is to offer a sands of customers who have enlarge selection of competitively- trusted their family’s transportation priced vehicles, while providing a needs to us over the years.”

M a rc h 7, 2 0 1 1

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UCN_18

2/28/11

18

•

12:50 PM

Page 1

USED CAR NEWS

M a rc h 7, 2 0 1 1

Former Chrysler Dealers Sue Feds WASHINGTON (AP) – A group of car dealers who lost their businesses in Chrysler’s 2009 bankruptcy sued the government, claiming their dealer franchises were closed without adequate compensation.

The 64 former Chrysler dealers said in the lawsuit that the Treasury Department violated their constitutional rights by failing to compensate them for taking their auto businesses.

They alleged damages of at least $130 million.

Lawyers for the dealers said the closures prevented a “significant disruption” in the U.S. auto industry and economy but said “this is a loss that

should not, however, be borne by a few individual auto dealers but ... must in fairness and justice be borne by the public as a whole.”

The Treasury Department declined comment on the lawsuit, which was filed in the U.S. Court of Federal Claims.

Chrysler closed 789 auto dealers, or about one quarter of its dealer network, in its June 2009 bankruptcy.

The closings of Chrysler and General Motors dealerships were among a broad number of concessions given by dealers, workers, retirees and others to make the companies viable in Continued on next page

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UCN_19

2/28/11

10:51 AM

Page 1

USED CAR NEWS

M a rc h 7, 2 0 1 1

Chrysler – Continued from prior page the government-led auto bankruptcies.

Following a lobbying campaign by car dealers, Congress approved legislation later in 2009 that required arbitration for the closed dealers.

Chrysler agreed to restore about 80 franchises through the process while GM reinstated more than 660 dealers it had threatened with closure.

The Obama administration has said without the shared sacrifices of many in the auto industry the two companies may not have rebounded. Former leaders of the administration’s auto task force denied they had any role in choosing which dealerships

should be terminated.

The plaintiffs include dealers from 29 states, including several business owners who actively lobbied Congress to restore the rights of dealerships, including Jack Fitzgerald, who owns Fitzgerald Auto Mall of Frederick, Md., and Jim Tarbox, of Tarbox Motors of North Kingston, R.I. Speaking at an industry event last month, former auto czar Steven Ratner defended the decision to slash dealership ranks.

Ratner said the controversial move was seen as essential to making the manufacturers more competitive.

“Everybody agreed on this,” he said.

•

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UCN_20

2/28/11

20

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10:54 AM

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USED CAR NEWS

M a rc h 7, 2 0 1 1

PEOPLE IN THE NEWS Auction Group Hires Exec

Auction veteran Virgil Matczak has been hired as the new business development manager for Dealer’s Auto Auctions (DAA).

Matczak started his career in remarketing at Chrysler Corp. in 1965 and later served as business development manager for Auction Broadcasting Co. He was retired from ABC when he accepted the new post from David Andrews, CEO of DAA, who also owns City Auto Sales in Memphis, Tenn.

“David Andrews is quite a guy,” Matczak said. “He’s got the huge dealership and now he has several auctions. We’re really looking at where his growth is going to be.”

Andrews currently has auctions in Alabama, Mississippi and Tennessee.

Matczak, who started Feb. 1, will be working with fleet, lease and finance customers as well as providing sales support, guidance and long term strategies for Dealers Auto Auctions.

Matczak is a member of the member of the National Auto Auction Association’s Hall of Fame and the National Independent Automobile Dealers Association’s Ring of Honor. He also served as treasurer for the International Automotive Remarketers Alliance.

Kelly to the position of CEO, effective immediately.

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He holds a first class honors degree in engineering from University College Dublin and an MBA from Stanford University.

Asbury Shuffles C-Suite

The board of directors of Asbury Automotive Group Inc. announced its succession plan in anticipation of the retirement of CEO Charles R. Oglesby on July 31.

Senior vice president and chief financial officer Craig T. Monaghan has assumed the role of president and CEO. Senior vice president and chief operating officer Michael Kearney has been promoted to executive vice president. Oglesby has assumed Openlane Promotes CEO responsibilities as the chairman of Openlane Inc. has appointed Peter Asbury’s board of directors.

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UCN_21

2/28/11

10:56 AM

Page 1

USED CAR NEWS

M a rc h 7, 2 0 1 1

RETAIL MARKETS NORTH CAROLINA

William Davis, owner, G&B Auto Sales of Louisburg, Louisburg, N.C.: “The business started with my dad in 1983. I took over the operation in 2001.

We have one location.

“Generally, I stock in the neighborhood of 35 to 40 units. That’s similar to this time last year.

“This time of the year, the inventory comes down a little bit because we’re selling more volume during the first quarter.

“On average, we’re selling 16 to 18 a month.

“That’s pretty stable to this time last year.

“In 2009, we were probably about 30 units short of what we sold in 2008.

Last year was comparable to 2009.

“So far this year, we look like we might be a little bit ahead of the pace.

“It seems like there’s a little more of a positive attitude out there.

“Mostly, we do buy-here, pay-here.

“It’s about 90 percent of the deals we do.

“This tax season, from what I’ve heard, a lot of the tax preparation companies, like the H&R Blocks and the Jackson Hewitts, have been making people wait longer for those instant checks (rapid refunds).

“In years past, customers would give their information and walk out (immediately) with a check.

“Our average down payment hasn’t changed that much.

“Most of the time we’re looking for 20 percent down.

“Most of what we carry ranges between 2003 to 2006 or 2007 model years.

“With mileage, I try to stay under 100,000 miles.

“We give a 6-month/7,500 mile, major component contract from Guardian Warranty Corp.

“We are seeing that mileage has been higher.

“The vehicles we’re looking for are harder to come by.

“I used to go to one auction and pick up six or seven cars.

“Now I have to go to two or three auctions to find that inventory.

•

21

Compiled By Jeffrey Bellant “Mainly, I use Manheim North Carolina and Greenville Auto Auction in North Carolina.

“On occasion, we’ll also go to Greensboro Auto Auction.

“Five or six years ago, we were doing 24-month contracts.

“Now, cars are getting more expensive while buyhere, pay-here customers’ income hasn’t changed, so the amount they can pay hasn’t changed.

“So we’re doing more and more 30-month or 36month contracts.

“We send our cars out for service.

“I’ve got a really good relationship with three garages in this area.

“We carry about 75 percent cars and 25 percent trucks and sport utility vehicles.

“We carry about 80- to 85percent domestic inventory.

“A good deal of our business, about 50 percent or more, is repeat and referral business.

“I just closed on a deal for a 2003 Jeep Liberty.

“That one had 98,000 miles.

“We sold that for $8,995.”

TENNESSEE

Marty Maluchnik, owner, AutoWise Car Sales, Hendersonville, Tenn.: “I’ve been in business four years at one location. I keep about 40 vehicles on the lot.

“The amount of cars I carry hasn’t changed. But the type of cars I carry has changed quite a bit since I started.

“When I started, the average car was about $10,000 to $12,000. Now, the average price is (double that).

“We’re mostly a highline store. That’s our niche. It kind of changed gradually.

“Last year, we sold 412 vehicles. It’s a little bit lower this year, but I attribute that more to the weather than anything else.

It was lousy in January.

“The average model year is 2008 or 2009. The average mileage is about 25,000 to 30,000.

“It’s definitely a tougher market to get cars. I go to five auctions a week for inventory and vehicles are much more expensive. On average, I’m probably

paying $2,500 more for the same car I was buying six or seven months ago.

“The downturn in 2007 and 2008, I believe, changed peoples’ buying habits quite a bit. Instead of people going out and buying or leasing a new $60,000 car, they’re seeing the value of buying one that’s two years old, with 26,000 miles and still carrying a full factory warranty.

“My inventory is all cars and SUVs. It’s probably 60 percent cars to 40 percent SUVs. “The inventory is about 90 percent imports. Lexus is my best product, followed

by Infiniti, BMW and Mercedes.

“The average vehicle is about $24,000 to $25,000 retail. I’ve got cars for as much as $40,000 retail.

“Our marketing and advertising is almost exclusively Internet. I also do community sponsorships, like local hockey teams, baseball teams and the high school newsletter.

“One recent car we sold was a 2008 Lexus LS 460. It had 38,000 miles. We sold it for $37,200.”

UCN_22

2/28/11

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USED CAR NEWS

M a rc h 7, 2 0 1 1

WHOLESALE MARKETS ARIZONA

Stephanie Gingras, general manager, Dealers Auto Auction of the Southwest, Phoenix: “Sales have been on fire.

We had an 82-percent sale recently and an 85-percent sale the week before that.

“We have six lanes and we’ve been running five. On average, we’re running 450 vehicles weekly. We’re trying to make it so dealers get low numbers and no lane runs more than 100 vehicles. It’s working well.

“We’re still off in volume, but we have more buyers and we’re selling more.

“My average price has gone up $2,000 to between $5,500 and $6,000.

“We’ve actually changed our marketing a little bit. We were able to persuade our dealer groups to bring all of their units to the sale, instead of just their less expensive units.

“So we’re getting everything from the $1,000 1997 Toyota Corollas to a 2010 Toyota FJ Cruiser. We’re getting a wider mix of cars from our dealer groups.

“It’s more of a supply-and-

demand issue and we’ve been able to persuade dealers that this is the right auction for all of their cars, rather than split their cars between different auctions.

“We’re also doing some promotions individually with dealers to make them happier about selling in the lanes.

“Recently, we had a record number of bidders – 450 – in the lanes. So, I had more bidders than cars.

“We’ve been marketing to new buyers, in addition to changing the types of cars we offer.

“Although repos have flattened out, some lenders are getting back into the subprime business. As a result, there will likely be more repossessions (down the line).

“We also have a tow lane, with about 30 (salvage) units each week.

“We’re 100 percent online (Auction Pipeline), so we’ve been able to draw dealers from all over. In the physical lanes, we’ll get dealers from all over Arizona, Colorado and other states.

“The mood of the dealers is very positive. Everybody’s

happy.

“But with the changes over the past few years, dealers, even long-time dealers, are saying this is all new. They’re learning the car business all over again and doing well in a market where there are no guarantees.”

WISCONSIN

Rick Lallemont, general manager/owner, Western Wisconsin Auto Auction, Chippewa Falls, Wis.: “We’re a three-lane auction. Right now, we’re running two lanes.

“We’re running about 200 to 225 units per week.

“Those volumes are right in the same ballpark as this time last year.

“Like everybody is saying, I think the market is high. I think it’s going to get higher as we move into the spring.

That’s how we’re seeing it.

“At one recent sale we hit 78 percent sold. The next week we were at 65 percent.

So we’re up in the 65- to 70percent range.

“Those are similar to this time last year. We might have been a little bit higher last year, but it’s so close.

“Plus, the prices of cars

Compiled By Jeffrey Bellant here have gone up a bit from this time last year. Lately we’ve been at that $4,500 mark, where last year we were probably running in the $3,500 to $4,000 price range.

“Our volume is pretty much in the same ballpark as this time last year. We might be a little bit ahead of last year. It’s maybe 25 to 30 cars more per week.

“We get about 150 buyers in the lanes each week, right around that. Our numbers are down just a smidgen on that. We were probably drawing closer to 170 last year.

“I think that’s a combination of two things. The truth is, we’ve lost some dealers.

Some local guys in this area have gone out of business.

“But the other factor is we just simply have hit some bad weather. Last year, at the same time, we were near 50 degrees, while this year we were at 25 to 30 degrees. One week in mid-February, we had another 12 inches of snow.

“So you’ve got a lot of dealers out there plowing snow instead of coming to the auction.

“We’ll get a lot of buyers

from the Twin Cities area.

We’ll also get guys from Milwaukee, a few out of Illinois and a few out of Iowa. Rochester, Minn., is also a big source of buyers .

“We also recently started a Preferred Platinum sale, selling a lot of higher-dollar units once a month. It’s newcar dealers’ aged inventory.

We’ve always had a little bit of that, but we’re doing it as a special promotion. So we’re running 50 to 75 pieces extra each month, on the second Tuesday of each month.

That’s really getting the buyers in the cities excited.

“Dealers are happy and excited. Generally speaking, I think everybody’s starting to move the cars.

“We don’t have a whole lot of fleet cars, but we recently ran close to 100 repossessions. So we get a bunch of repos from credit unions, banks and payday loan stores. Altogether, it makes up about 25 percent of our business.

“We also run a (powersports)) sale, with ATVs, motor cycles, campers and other items. We’ve dropped off a bit, but we still run 10 to 15 pieces per sale.”

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2/28/11

4:33 PM

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USED CAR NEWS

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COMPILED BY JEFFREY BELLANT

MANHEIM PENNSYLVANIA EARNS HYUNDAI AWARD

One Call Does It All!

Photo Courtesy of Manheim Pennsylvania AWARD: Mark Pester (left), general manager of Manheim Pennsylvania, receives an award from George Koditek, fleet remarketing manager for Hyundai Motors America.

Hyundai Motor America recently named Manheim Pennsylvania its 2010 Auction of the Year. Through a decade of partnership, Hyundai and Manheim Pennsylvania have collaborated extensively in support of new technology, operational improvements and with OVE.com strategies.

Manheim Pennsylvania, one of 17 Hyundai affiliated auctions, was recognized for providing the highest residual values, quality and customer service throughout the entire auction process. The auction sold nearly 4,500 fleet, company and buyback vehicles for Hyund in 2010.

“Manheim Pennsylvania and its staff showed outstanding performance ranging from administration and reconditioning to marketing and servicing its dealer body,” said George Koditek, fleet remarketing manager, Hyundai Motor America.

“We have enjoyed a 10-year partnership with Hyundai Motor America and are honored to share this achievement with them,” said Tim Van Dam, vice president and general manager, Manheim Pennsylvania. “I attribute our success to the hard working team at Manheim Pennsylvania for their dedication and commitment to demonstrating remarketing excellence. They take great pride in providing the best service possible to Hyundai and all of our customers, and this honor is a significant accomplishment.”

SUBARU CHOOSES SALE Subaru of America, Inc. has selected Brasher’s Salt Lake Auto Auction as its remarketing partner for factory vehicles in the region.

Rob Brasher, auction owner and general manager, recently announced the move, with the auction hosting Subaru closed factory sales every four weeks, beginning in March.

“We are very pleased to welcome Subaru to Brasher’s Salt Lake Auction,” Brasher said. “This is an outstanding opportunity for Subaru dealers in this region, many of whom are already attending our auction to purchase from Chase Auto Finance, which handles Subaru off-lease and

repo units in our regular consignment sale. Now those dealers can choose from expanded inventory in both open and closed sales, all in one location.”

He said the Subaru Factory Sale will follow the Subaru product offered by Chase Bank in the open sale.

We invite news items and top-quality photos from our readers to be considered for “Around the Block.” Please include the name of a contact person and a telephone number.

Send items and photos to: Jeffrey Bellant Mail: Used Car News, 24114 Harper Ave., St. Clair Shores, MI 48080.

Fax: (586) 772-9400 e-mail: jeff@usedcarnews.com

WHETHER YOU HAVE A SINGLE VEHICLE, A WHOLE TRUCKLOAD OR AN ENTIRE FLEET

JMN IS YOUR ANSWER!

• Highly competitive rates • Servicing all auctions Nationwide • 24/7 Online shipping quotes • Company owned assets • Storage/Marshalling facilities • Specializing in Internet Purchases • 8 Strategically placed terminals • Full service auto shipping

1-877-566-4285 / www.jmnhaul.com / sales@jmnhaul.com

UCN_24

2/28/11

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ACTUAL WHOLESALE AND PROJECTED RESIDUAL VALUES FEBRUARY 2011

SOURCE: BLACK BOOK

2009 Domestic Cars Buick LaCrosse CX 4D Sedan Cadillac DTS 4D Sedan Chrysler 300 Touring 4D Sedan Ford Taurus SEL 4D Sedan Ford Mustang Base 2D Coupe Chevrolet Impala LS 4D Sedan Pontiac G6 Base 4D Sedan Chrysler Sebring LX 4D Sedan Chevrolet Cobalt LS 4D Sedan Import Cars Lexus LS 460 Base 4D Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Lexus ES 350 4D Luxury Sedan Acura TL Base 4D Sedan Nissan Altima S 4D Sedan Honda Accord LX 4D Sedan Toyota Camry LE 4D Sedan Nissan Altima Base 4D Sedan Toyota Corolla LE 4D Sedan Hyundai Sonata GLS 4D Sedan Nissan Sentra Base 4D Sedan Mitsubishi Galant ES 4D Sedan Trucks 2009 Models Cadillac Escalade Base 4D Utility AWD BMW X3 XDrive30i 4D SAV Chevrolet Tahoe LS 4D Utility 4WD Cadillac SRX 4D Utility AWD V6 Toyota 4Runner SR5 4D Utility 4X4 V6 Nissan Murano SL 4D Utility Jeep Wrangler Sahara 2D Utility 4WD Toyota Tacoma SR5 Access Cab 4X4 V6 Honda Pilot LX 4D Utility 4WD Chevrolet Silverado 1500 LT Ext Cab 4D Ford Explorer XLT 4D Utility 4WD Chevrolet Colorado LT Crew Cab 4WD Z85 Ford F150 XLT Supercab Jeep Grand Cherokee Laredo 4D Utility 4WD Chevrolet Trailblazer LT 4D Utility 4WD Honda Odyssey EX Wagon Ford Taurus X SEL 4D Utility FWD

Feb-11 12500 $23,150 $14,650 $13,250 $13,100 $10,550 $9,900 $9,000 $7,500 Feb-11 $43,000 $31,400 $24,750 $24,500 $13,600 $13,500 $13,200 $12,800 $10,500 $10,050 $9,350 $9,000 Feb-11 $38,500 $29,950 $25,675 $24,050 $22,800 $21,250 $20,225 $19,975 $19,900 $19,050 $18,625 $18,450 $18,100 $17,850 $17,600 $17,450 $16,100

2008 Aug-10 14200 $26,350 $16,600 $15,600 $14,200 $11,800 $10,550 $10,250 $8,150 Aug-10 $48,500 $34,000 $26,000 $26,800 $13,400 $14,900 $13,300 $12,800 $10,600 $11,000 $10,300 $10,100 Aug-10 $40,000 $31,500 $26,375 $24,750 $23,100 $22,950 $21,125 $19,900 $20,600 $19,950 $20,725 $19,050 $18,675 $18,450 $17,950 $18,600 $18,150

Feb-10 14750 $28,000 $17,150 $15,550 $13,350 $11,900 $10,750 $10,700 $8,800 Feb-10 $52,200 $35,500 $27,600 $29,200 $14,300 $15,900 $13,900 $13,500 $11,600 $12,150 $10,700 $10,800 Feb-10 $43,000 $32,800 $25,975 $24,400 $23,400 $23,200 $20,725 $20,150 $21,400 $19,350 $19,925 $18,850 $18,475 $17,350 $17,250 $21,300 $18,650

Projected Figures Feb-12 11100 9450 $19,150 $14,950 $13,000 $11,150 $11,650 $10,000 $11,100 $9,500 $8,700 $7,200 $8,300 $6,850 $7,600 $6,300 $6,250 $5,150 Feb-12 Feb-13 $35,300 $28,900 $24,900 $20,400 $21,100 $18,100 $20,500 $17,100 $11,100 $9,850 $12,350 $10,525 $11,200 $9,700 $10,100 $8,850 $9,000 $7,800 $8,450 $7,050 $7,725 $6,825 $8,100 $7,400 Feb-12 Feb-13 $34,950 $30,450 $25,950 $22,750 $23,125 $20,125 $20,350 $17,250 $20,775 $18,425 $18,100 $16,050 $17,700 $15,725 $17,475 $16,100 $17,150 $14,900 $18,075 $15,875 $16,125 $13,625 $16,675 $14,875 $16,350 $14,850 $15,050 $13,150 $14,400 $12,500 $17,000 $14,800 $14,500 $12,600

Domestic Cars Cadillac DTS 4D Sedan Lincoln Town Car Executive 4D Sedan Chrysler 300 Touring 4D Sedan Ford Mustang Base 2D Coupe Ford Taurus SEL 4D Sedan Buick LaCrosse CX 4D Sedan Chevrolet Impala LS 4D Sedan Pontiac G6 Base 4D Sedan 4 Cyl Chrysler Sebring LX 4D Sedan Chevrolet Cobalt LS 4D Sedan Import Cars Lexus LS 460 Base 4D Sedan Mercedes-Benz E Class E350 4D Sedan BMW 3-Series 335i 4D Sedan Lexus ES 350 4D Sedan Acura TL Base 4D Sedan Nissan Altima S 4D Sedan Honda Accord LX 4D Sedan Volkswagen Jetta SEL 4D Sedan Toyota Camry LE 4D Sedan Nissan Altima Base 4D Sedan Toyota Corolla LE 4D Sedan Hyundai Sonata GLS 4D Sedan Nissan Sentra Base 4D Sedan Mitsubishi Galant ES 4D Sedan Trucks Cadillac Escalade Base 4D Utility AWD Chevrolet Tahoe LS 4D Utility 4WD BMW X3 4D SAV 3.0si Cadillac SRX 4D Utility AWD V6 Toyota 4Runner SR5 4D Utility 4X4 V6 Jeep Wrangler Sahara 2D Utility 4WD Toyota Tacoma SR5 Access Cab 4X4 V6 Honda Pilot VP 4D Utility 4WD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Colorado LT Crew Cab 4WD Z85 Ford Explorer XLT 4D Utility 4WD Jeep Grand Cherokee Laredo 4D Utility 4WD Honda Odyssey EX Wagon Ford F150 XLT Supercab

2007 Domestic Cars Cadillac DTS 4D Sedan Lincoln Town Car Executive 4D Sedan Chrysler 300 Touring 4D Sedan Ford Mustang Base 2D Coupe Buick LaCrosse CX 4D Sedan Chevrolet Impala LS 4D Sedan Pontiac G6 Base 4D Sedan 4 Cyl Chrysler Sebring Base 4D Sedan Ford Taurus SE 4D Sedan Saturn Ion 2 4D Sedan Chevrolet Cobalt LS 4D Sedan Import Cars Lexus LS 460 Base 4D Sedan Mercedes-Benz E Class E350 4D Sedan BMW 3-Series 335i 4D Sedan Lexus ES 350 4D Sedan Acura TL Base 4D Sedan Nissan Altima S 4D Sedan Toyota Camry LE 4D Sedan Nissan Altima Base 4D Sedan Honda Accord LX 4D Sedan Volkswagen Jetta Base 4D Sedan Toyota Corolla LE 4D Sedan Hyundai Sonata GLS 4D Sedan Nissan Sentra Base 4D Sedan Mitsubishi Galant ES 4D Sedan Trucks Cadillac Escalade Base 4D Utility AWD Chevrolet Tahoe LS 4D Utility 4WD BMW X3 4D SAV 3.0si Toyota 4Runner SR5 4D Utility 4X4 V6 Cadillac SRX 4D Utility AWD V6 Toyota Tacoma SR5 Access Cab 4X4 V6 Jeep Wrangler Sahara 2D Utility 4WD Nissan Murano SL 4D Utility Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Colorado LT Crew Cab 4WD Z85 Honda Pilot LX 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab

Feb-11 $14,850 $11,750 $11,550 $10,100 $9,300 $7,400 $6,950 $6,550 $5,550 $5,500 $5,400 Feb-11 $31,800 $21,000 $19,800 $18,950 $15,500 $11,000 $10,650 $10,400 $9,800 $9,800 $8,000 $7,400 $7,250 $6,500 Feb-11 $27,500 $20,275 $19,450 $18,400 $17,400 $17,400 $16,400 $15,500 $14,750 $14,650 $14,550 $14,250 $14,075

Feb-11 $18,950 $15,000 $13,050 $11,600 $11,200 $10,850 $8,950 $8,400 $7,800 $6,400 Feb-11 $36,400 $25,600 $22,600 $21,750 $18,700 $12,500 $12,150 $12,050 $11,800 $11,700 $8,950 $8,600 $8,450 $8,200 Feb-11 $33,950 $23,200 $21,850 $21,000 $20,350 $18,575 $18,500 $17,250 $16,800 $16,575 $16,350 $15,950 $15,900 $15,800

Aug-10 $21,700 $17,900 $14,750 $12,550 $13,100 $12,000 $9,950 $8,750 $8,700 $6,950 Aug-10 $38,500 $27,000 $23,600 $22,400 $21,200 $12,700 $13,250 $13,300 $11,900 $12,100 $9,200 $9,350 $9,050 $9,350 Aug-10 $36,600 $23,900 $24,550 $21,700 $20,950 $19,575 $18,300 $18,500 $18,000 $16,975 $17,400 $16,400 $17,300 $16,750

Feb-10 $23,200 $18,500 $14,450 $11,850 $13,500 $12,400 $9,900 $9,050 $8,900 $7,400 Feb-10 $44,600 $28,700 $27,100 $23,800 $24,000 $12,800 $14,250 $14,300 $12,450 $12,000 $9,850 $10,050 $9,000 $10,150 Feb-10 $38,000 $23,700 $24,600 $21,100 $20,450 $18,875 $18,550 $19,700 $16,900 $16,475 $15,200 $15,000 $19,500 $15,650

Projected Figures Feb-12 Feb-13 $14,950 $11,450 $12,150 $9,900 $11,150 $9,450 $9,500 $8,000 $10,000 $8,450 $9,450 $7,850 $7,200 $5,850 $6,850 $5,550 $6,300 $5,050 $5,150 $4,200 Feb-12 Feb-13 $28,900 $23,900 $20,400 $16,750 $20,300 $17,000 $18,100 $15,300 $15,900 $13,000 $9,900 $8,700 $10,525 $9,000 $10,300 $8,900 $9,700 $8,400 $8,850 $7,700 $7,700 $6,600 $6,950 $5,600 $6,825 $6,000 $5,775 $4,975 Feb-12 Feb-13 $30,000 $26,000 $20,125 $16,475 $20,850 $17,850 $17,250 $14,550 $18,425 $16,150 $15,725 $13,450 $16,175 $14,675 $15,000 $12,900 $15,475 $13,400 $14,775 $13,275 $13,625 $10,875 $13,150 $11,050 $15,050 $13,050 $13,675 $11,775

Aug-10 $13,450 $11,300 $9,600 $8,700 $8,700 $6,550 $6,050 $5,250 $5,300 $4,700 $4,850 Aug-10 $22,200 $17,600 $15,200 $14,600 $14,400 $11,000 $8,950 $8,400 $8,550 $7,700 $7,350 $7,100 $6,150 $5,750 Aug-10 $21,450 $16,475 $17,750 $16,275 $15,650 $14,350 $13,600 $13,650 $13,600 $13,900 $13,600 $12,825 $12,075

Feb-10 $15,100 $10,950 $9,150 $9,300 $8,700 $6,500 $6,050 $5,300 $5,000 $4,300 $4,900 Feb-10 $23,800 $19,200 $17,100 $16,000 $14,800 $12,050 $9,250 $8,800 $8,950 $8,100 $7,400 $7,650 $6,450 $5,625 Feb-10 $20,700 $16,775 $17,500 $15,775 $15,450 $14,200 $12,800 $12,950 $14,400 $13,600 $12,500 $11,825 $10,675

Projected Figures Feb-12 Feb-13 $9,350 $7,700 $7,700 $6,300 $6,700 $5,500 $8,000 $6,600 $6,450 $5,200 $4,500 $3,400 $4,200 $3,150 $3,950 $3,250 $3,650 $2,900 $3,350 $2,700 $3,350 $2,600 Feb-12 Feb-13 $18,100 $15,200 $13,700 $11,100 $11,750 $10,000 $10,500 $8,500 $10,950 $8,800 $8,700 $7,600 $7,000 $5,950 $6,500 $5,450 $6,800 $5,600 $5,975 $5,225 $5,750 $4,800 $5,350 $4,450 $4,225 $3,725 $3,500 $3,050 Feb-12 Feb-13 $16,150 $13,650 $13,800 $11,250 $14,200 $11,850 $12,550 $9,175 $13,000 $11,525 $11,100 $8,800 $11,175 $9,550 $10,575 $9,075 $10,550 $9,550 $9,950 $8,350 $10,600 $8,800 $9,700 $8,625 $8,725 $7,650

2006 Aug-10 $17,350 $12,250 $12,950 $11,050 $10,300 $8,200 $7,250 $7,200 $6,450 $6,250 $5,750 Aug-10 $32,800 $22,000 $20,700 $19,800 $17,400 $11,350 $10,800 $10,650 $10,400 $10,700 $8,250 $7,900 $7,700 $7,200 Aug-10 $29,900 $20,875 $21,450 $18,800 $18,400 $17,350 $17,550 $16,550 $15,350 $15,100 $14,950 $15,050 $15,175

Feb-10 $18,900 $12,500 $12,600 $10,450 $10,200 $8,000 $7,450 $7,150 $6,100 $6,200 $6,100 Feb-10 $37,200 $23,800 $23,200 $20,800 $19,600 $11,550 $11,300 $10,850 $10,850 $11,700 $8,550 $8,500 $7,700 $7,650 Feb-10 $31,400 $20,975 $22,200 $18,600 $17,900 $17,450 $16,450 $16,200 $14,050 $14,500 $15,100 $13,250 $14,275

Projected Figures Feb-12 Feb-13 $11,450 $9,350 $9,900 $8,000 $9,450 $7,700 $8,000 $6,700 $7,850 $6,450 $5,850 $4,500 $5,550 $4,400 $5,050 $3,950 $4,500 $3,650 $4,700 $3,950 $4,200 $3,350 Feb-12 Feb-13 $24,300 $19,800 $16,750 $13,700 $17,000 $14,100 $15,300 $12,700 $13,000 $10,500 $7,750 $6,500 $8,900 $7,600 $6,825 $5,975 $8,200 $7,050 $8,400 $7,450 $6,850 $5,750 $5,700 $4,450 $6,000 $5,125 $4,975 $4,275 Feb-12 Feb-13 $25,250 $21,650 $16,475 $12,475 $17,050 $14,450 $16,150 $13,800 $14,300 $11,800 $14,650 $13,000 $13,450 $11,750 $12,150 $10,650 $11,700 $10,750 $13,275 $12,075 $12,550 $10,650 $10,875 $7,875 $10,850 $9,675

Domestic Cars Cadillac DTS 4D Sedan Chrysler 300 Touring 4D Sedan Ford Mustang Base 2D Coupe Lincoln Town Car Executive 4D Sedan Buick LaCrosse CX 4D Sedan Chevrolet Impala LS 4D Sedan Pontiac G6 Base 4D Sedan 4 Cyl Saturn Ion 2 4D Sedan Ford Taurus SE 4D Sedan Dodge Stratus SXT 4D Sedan Chevrolet Cobalt LS 4D Sedan Import Cars Lexus LS 430 4D Sedan Mercedes-Benz E Class E350 4D Sedan BMW 3-Series 330i 4D Sedan Acura TL 4D Sedan Lexus ES 330 4D Sedan Volkswagen Jetta Base 4D Sedan 2.0T Honda Accord LX 4D Sedan Nissan Altima S 4D Sedan Toyota Camry LE 4D Sedan Nissan Altima Base 4D Sedan Toyota Corolla LE 4D Sedan Hyundai Sonata GLS 4D Sedan V6 Mitsubishi Galant ES 4D Sedan Nissan Sentra Base 4D Sedan Trucks Cadillac Escalade Base 4D Utility AWD Toyota 4Runner SR5 4D Utility 4X4 V6 BMW X3 4D SAV 3.0i Chevrolet Tahoe LS 4D Utility 4WD Toyota Tacoma SR5 Access Cab 4X4 V6 Cadillac SRX 4D Utility AWD V6 Chevrolet Colorado LT Crew Cab 4WD Z85 Jeep Wrangler Sport 2D Utility 4WD Nissan Murano SL 4D Utility Honda Odyssey EX Wagon Honda Pilot LX 4D Utility 4WD Ford F150 XLT Supercab Chevrolet Silverado 1500 LS Ext Cab 4D

Feb-11 $11,050 $10,150 $8,700 $8,400 $7,850 $5,850 $5,650 $4,650 $4,600 $4,500 $4,450 Feb-11 $21,300 $17,000 $14,600 $13,100 $13,000 $10,050 $8,500 $8,200 $8,200 $7,700 $7,100 $6,700 $5,500 $5,250 Feb-11 $20,500 $16,325 $15,750 $15,475 $15,200 $14,850 $13,150 $13,100 $13,050 $12,950 $12,650 $11,725 $11,475

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2/25/11

4:40 PM

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March 7, 2011

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CLASSIFIEDS

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www.usedcarnews.com

The National Federation of Independent Business Index of Small Business Optimism lost 0.9 points in July and reached 88.1 following a sharp decline in June. The Index has been below 93 every month since January 2008, and below 90 for 24 of those months, all readings typical of a weak or recession-mired economy. Ninety percent of the decline this month resulted from deterioration in the outlook for business conditions in the next six months.

“The recovery in optimism that we are currently experiencing is very weak compared to recoveries after the 1982 and 1975 recessions,” said Bill Dunkelberg, NFIB’s chief economist. “The small business sector is not on a sustained positive trajectory, and with this half of the private sector missing in action, the economy’s poor growth performance is not surprising.”

Only a small percentage of these gloomy business owners say they plan on hiring in the next three months.

Big business isn’t feeling any better. Chief Executive magazine’s CEO Confidence Index fell to 79.8 in July.

All five components of the index fell significantly, with the Current Confidence Index showing the largest percentage dropping to 52.0. The lack of hiring hasn’t hurt companies that much, yet.

Although productivity declined in the second quarter, it grew for five quarters in a row. That means employers are getting more out of the employees they do have.

Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of hours worked of all persons, including employees, proprietors, and unpaid family workers.

The decline occurred because output rose 2.6 percent and hours rose 3.6 percent.

Watch for our new look coming soon!

C L A S S I F I E D S

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2/28/11

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Disconnected Jottings From Tony Moorby...

I love to cook. For friends or family or even just for me.

It’s a cathartic experience, turning something raw or basic into a meal that looks terrific and tastes delicious, starting out with lots of com-

some considerable credit.

And I can leave without dropping a dime – I have it all.

I’ve been like a culinary jackdaw over the years, gathering all that glitters in the

Tony Moorby • 40-year veteran of the industry • President from 1997–2000 of ADT Automotive • Served as ADESA’s executive vice president of sales and marketing • Moorby & Associates 2006–present • Awarded the Ring of Honor by NIADA • NAAA Hall of Famer

ponents and ending with two or three nice dishes that are a compendium of all you started out with.

I’ll try anything when it comes to cooking and boast ownership of a gazillion utensils necessary to execute the most complex of recipes.

I can now venture into Williams-Sonoma, spend an hour amidst contraptions of every description from pie vents to pudding pans and toasters to trivets, some looking as though they would do a Tudor torturer

kitchen and collating a collection of cookbooks that would do justice to the Library of Congress. Luckily, there’s not much of this that gathers dust. I find an excuse to crank up my electric meat grinder and turn out some scotch eggs in my deep-fat fryer with the easiest of whimsy. North African lemon-scented lamb with cumin and raisins, slowly braised in a tagine? No problem. A cassoulet that takes three days to make with about ten different

processes to get there? In a heartbeat.

A few years ago, for a Christmas present, my wife sent me to The Culinary Institute of America for a week-long “boot camp” for French cooking. I worked my rear end off and have never had so much fun! She has since had the benefit of my improved techniques and I now bear the evidence in a much-expanded girth.

Passionate indulgences are such a luxury. I used to love art at school. I was pretty good at it but, more importantly, it allowed temporary respite from the more serious rigors of math or Latin. I hadn’t picked up a brush since high school until about 10 years ago and now I’m so prolific I’m running out of walls at home. I’m lucky enough to enjoy a studio above my garage and can hide away with my canvases and paint pots whenever the muse in on me.

I love to write, too, and these articles allow that passionate itch to be scratched.

Occasionally I might write an essay for my own mental exercise and if I could figure

out a decent plot I feel I could write a book.

I’m still passionate about cars and the business of cars and whilst the business has earned me a decent living I’ve managed to indulge in some extravagances ranging from Mini Coopers to a Rolls Royce and everything in between. Owning the Rolls was like owning a boat; a great day when I bought it and an even better one when I sold it and a money pit in between. It was a 1982 Silver Spur, the long wheel-base with picnic tables in the rear of the front seats and other posh accouterments such as foot rests for the rear seat passengers. These cars were built when Rolls Royce was owned by Vickers, the aircraft manufacturers, who

were more interested in airplane engines than cars.

Consequently the accountants had at it and the cars were made as cheaply as possible – a 1980s GM product on expensive steroids. The only assurance that came with the car was that the valet parker never put it further than 20 feet from the door.

When I finally get the chance I’ll make a fabulous retiree if the Big Fella lets me play into extra time. Along with all these passions that can still be pursued, I enjoy a large family, by today’s standards – four kids and a grandson and a wife with whom I fall in love every day.

I don’t think the kids are ever going to leave home. They like my cooking too much!

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

Answers to the 2/21/11 puzzle

C R O S S WO R D

by Myles Mellor

Across 1. Acura ___ 3. Try to make a new deal 9. Soul brother 11. Mitsubishi crossover 14. _____ Amigo 15. The Trojans of the N.C.A.A. 16. Acura SUV 17. Hyundai SUV (2 words) 22. Another name intro 23. “Same here” 25. Compete at NASCAR, for example 27. Together with, prefix 28. Alterative to own 29. Brand name 32. Compass point 33. Roman 4 34. ____ Grande Punto

35.

37.

40.

41.

43.

Electric Chevy Places in a car Try to win Provides Fuse in small areas (2 words) 44. Period in time 45. Online auto vendor 47. Trendy 49. What the Beach Boys had with their Daddy’s Tbird 50. __ work 52. Id’s associate 54. Back-seat driver would be one 55. Old Dodge Down 1. BMW sports 2. 3 Scion models

3.

4.

5.

6.

7.

8.

10.

12.

13.

18.

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24.

Nissan 370Z is one O.K. Nissan sports car Subaru full-size crossover _____ TSX Wagon Strive to equal or match Acura’s flagship car Dollar, for short Have a bite ___ crossroads (2 words) Buyer who never arrived Accounts receivable, abbr.

Renown Chicago locale

26. Ontario lake 27. There should be a holder for it (2 words) 30. ____ Mangusta 31. XK or XJ 32. Road sign 36. Part of L.A. 37. Finalized

Answers to this puzzle in the 3/21/11 issue. Call 1.800.794.0760 for a FREE subscription.

38.

39.

42.

46.

48.

49.

51.

53.

Kia minivan Modernize Part of a jazz combo Degrees “Days of ___ Lives” Supporting Kilogram, for short Atlanta’s state

UCN_27

2/28/11

9:56 AM

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UCN_28

2/25/11

3:25 PM

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“TRADE-IN MARKETPLACE BRINGS ME THE TWO THINGS I NEED THE MOST: BUYERS AND INVENTORY.” Marc Ray General Sales Manager/Partner–Grogan’s Towne Chrysler Jeep Dodge Toledo, OH

Jim Grodi Advertising Consultant AutoTrader.com

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me customers and cars. Exactly what I need.” To hear

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Marc’s success story, just visit WeWorkForYou.com/Marc.

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