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March 17, 2014

www.usedcarnews.com

ON THE WEB: Subcompact Vehicles Retain Their Value

GM Recalls More Than 1 Million Cars

Three-year-old cars in the subcompact segment have the highest retaining value at 54.4 percent of the MSRP for a typically equipped model, says NADA Used Car Guide. Meanwhile, the electric vehicle segment ranked the lowest at 39.9 percent.

Certified Sales Set Another Record

February was another record-setting month for certified sales. Franchise dealers sold 179,042 certified pre-owned vehicles in February. There were 24 selling days in February. The daily selling rate was 7,460, an all-time high.

Wholesale Prices Rise From Year Ago’s Level

Wholesale used vehicle prices rose 0.8 percent in February. The Manheim Used Vehicle Value Index reading was 123.3 in February, which represented a 1.1 percent increase from a year ago.

HHRecall: General Motors is recalling 1.4 million vehicles, including 2005-07 Chevrolet Cobalts; 2007 Pontiac G5s; 2006-07 Chevrolet HHRs and Pontiac Solstices; 2003-07 Saturn Ions and 2007 Saturn Skys. By Ted Craig

It’s early in the year and already two of the nation’s largest automakers have issued massive recalls, with General Motors recalling more than 1 million vehicles. GM is recalling 1.4 million model year 2003-2007

Chevrolets, Saturns and Pontiacs. A combination of extra weight on the key ring and jarring due to road conditions may cause the ignition switch to move out of the run position. If the switch is not in the run position, the air bags may not deploy if the vehicle is involved in a crash.

The recall comes at a time when GM had started showing progress in the quality rankings. It now must face increased scrutiny from consumers and regulators. “It’s not fair, but the domestics pay a higher price for recalls,” said Duane Trojniak, vice president of statistical modeling for the

RDA Group. Trojniak spoke on a panel at a recent event covering recalls and warranties put together by the Society of Automotive Analysts. Toyota has actually led all brands in recalls for the past two years, but remains atop most quality surveys. Continued on page 15

Rush - Dated Material

AutoTrader.com Sees Prices, Volume Driving Market AutoTrader.com recently shared three trends dealers need to pay close attention to this spring. The first is new-vehicle pricing. Even with a slower than expected start to the year due to the weather, the auto industry is still expected to return to new-vehicle sales levels not seen since 2007, increasing sales between 3.5-4.5 percent in 2014. However, not all manufacturers will achieve their much higher internal 2014 volume target. As a result, the competitive landscape will provide plenty of purchasing opportunities as manufacturers continue to offer aggressive pricing and incentive programs.

Used-vehicle prices, meanwhile, are expected to see slight downward pressure in 2014 due to continued increase in supply. Many of these new car buyers will likely have a current vehicle that they need to offload. In addition to more shoppers trading in their current vehicles, a notable volume of leased vehicles will be returning to dealership lots this year. Finally and most importantly, access to credit will continue to open up in 2014 – even in the subprime market. This will continue to increase the pool of potential consumers that will regain purchasing power not seen in several years.

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March 17, 2014ÛÛÝÛۀ

USED CAR NEWS

Academy Graduates Industry’s Future Leaders By Jeffrey Bellant

LAS VEGAS –A dream in 2011 became reality with the first graduates from the Next Generation class of the Auction Academy. Pierre Pons, president of TPC Management Co., introduced the idea of an education program to train the future leaders of the wholesale auto auction business two-and-a-half years ago during the National Auto Auction Association convention in Chicago. This month, members of the inaugural graduating class walked across the stage at the Conference of Automotive Remarketing in Las Vegas, illustrating the future is now. Pons was joined by TPC’s Dick Curtis, along with auction leaders Charlotte Pyle and Lynn Weaver, to congratulate students as they walked across the stage. Graduates received plaques, handshakes and applause, but the conference wasn’t just about celebration. “This was a working session,” said Pons, “they didn’t just come here to pick up awards. They came here to work.”

During the week, the class got a tour of ADESA Las Vegas and attended a class by a national dealership trainer. Pons took time to praise sponsors of the program starting with Black Book’s Tim West and Tom Cross, the first supporters of the program. “Our industry could not have better partners than Black Book,” Pons said. The idea began when Pons spoke with industry veterans Weaver and Bob McConkey, who both had children in the class. The discussion centered on how to train the next generation of auction leaders. The two-year training and development program – dubbed Next Generation/ Sons and Daughters – was put in place in 2012 and included the sons and daughters of independent auction owners, includes 16 students representing 14 auctions and one vendor. The two years wasn’t just spent in class, but in visiting auctions across the country and meeting with consignors and other leaders in the remarketing business. Graduate Clint Weaver shared the moment with his family at CAR.

Photo by Jeffrey Bellant FIRST CLASS: Graduates of the Auction Academy’s inaugural class show their certificates.

“It was a great experience,” he said. “I wasn’t sure what to expect when we first started. The class sessions were great and the teams brought in a lot of big names in the industry to guide us and teach us.” Weaver said it his favorite part was visiting other auctions, something that he wouldn’t have been able to do apart from the program. “The other great part of it was getting to know my classmates,” he said. “That’s

something that the first generation didn’t get to do. They had to do it the hard way by meeting through conferences. “That gives us an advantage because we’re friends now and we’ve built relationships.” Pons admitted that the closing of the first class was difficult. “I’m actually not too good at goodbyes,” he said. “So that’s been a little hard for me.”

But Pons wanted to leave a special message to the industry. “Our industry is succeeding into good hands,” he said. “You can be comfortable with the succession, especially in this part of the business. I didn’t find arrogance. I didn’t find entitlement. I found kids who got together and got along great. “I feel very comfortable as we (transition) into the next generation.”

NAAA, Black Book Plan Charity Pedal Car Auction The National Auto Auction Association and Black Book have teamed up to present the inaugural Black Book Pedal Car Auction. The charity event will be held at the 2014 NAAA Annual Convention this September in Boston with the goal of raising $50,000 for its nonprofit Warren Young Scholastic Foundation. The four NAAA chapters each selected three pedal car sponsors to be the finalists in the fall show and auction. A lottery choosing the order of the auction’s run list will be held at the National Independent Automobile Dealers Association Convention in June. The rules allow the sponsors to modify new or preowned pedal-powered vehicles — whether trains, planes or automobiles (but no carts) — as much as their imagination and skill permit. That includes paint,

UCN_03.indd 1

decals, graphics, exhausts, lights, sirens and other parts or accessories. The pedal car bringing the most money wins the Best in Show title, along with being featured on both the cover of NAAA’s On the Block magazine and 2015 Directory. Awards will also be given for Most Creative, Best Custom, Best Accessories and Most Unusual Paint Job categories as determined by the four NAAA Chapter presidents. “We thought this offered our members a great way to demonstrate their creativity and abilities in a friendly competition while raising money to support our scholarship fund, which helps deserving students achieve their dreams of higher education,” said NAAA President Jack Neshe. He said that since its creation in 2004, the Warren Young Scholastic Foundation has raised more than

$1.5 million and awards a total of $40,000 in merit scholarships annually for full-time study at an accredited institution. It was named in honor of Warren Young, Sr., a pioneer of the auto auction industry. “We are big supporters of the Warren Young Scholastic Foundation and believe in giving back and supporting this teriffic cause. We also believe in the NAAA and will do whatever we can to lend a hand,” said Black Book President Tom Cross. In related news, named Mike Reid of Toyota Financial Services as a Warren Young Sr. Fellow. Reid received a framed commemorative certificate, a gold medallion and a distinctive lapel pin. Also, his name will be engraved on a plaque listing the esteemed Fellows displayed at NAAA headquarters. “I’m proud to name Mike as a Fellow because in ad-

HONOR: NAAA President Jack Neshe recognizes the latest Warren Young Sr. Fellow, Mike Reid of Toyota Financial Services.

dition to his professional accomplishments, his willingness to serve as a speaker or panelist at many remarketing events sharing his experience and knowledge to prepare future industry leaders exemplifies the Scholastic Foundation’s mission of helping students achieve their dreams of

higher education and success,” Neshe said. “He also finds the time in his busy schedule to be an active supporter of the Rio Aquatics in his Orange County, California, community, which trains young special-needs athletes to participate in the Special Olympics.”

3/10/14 5:31 PM


 ÛÛ�ÛÛÛMarch 17, 2014

USED CAR NEWS

NEWS BRIEFS Carfax Adds Vehicle Listings

Carfax has added vehicle listings to its website. At Carfax.com, online shoppers now can search for used cars with specific vehicle history details – such as no accidents reported to Carfax, service records and Carfax 1-Owner. Plus, vehicles are shown based on the history attributes shoppers want, making the shopping process for carfax.com visitors easier and faster. Visitors begin their search of more than one million used cars by selecting the vehicle history attributes they want. Listings from Carfax Advantage Dealers also include price, photos and a detailed description of the vehicle.

J.D. Byrider Expands

Family Acquires Auction

The Angelicchio family, owners of Pittsburgh Auto Auction, entered into an agreement to acquire the assets of Winchester Auto Dealers Exchange through a newly formed corporation: Winchester Auto Auction, Inc. Winchester Auto Auction is located on the Virginia/West Virginia border and has been operated as a public auto auction for more than 12 years. After extensive renovations and system updates, the auction will begin holding weekly dealer-only sales on Fridays, beginning April 11. The auction will continue to host weekly public auctions on Saturdays through the end of the March. Beginning May 17, the auction will hold public sales on a monthly basis, on the third Saturday of each month.

J.D. Byrider has added seven new NIADA Warns of Scam franchise locations to its nationwide The National Independent Auportfolio of dealerships. The loca- tomobile Dealers Association is tions opened between Dec. 16 and warning of a scam around this March 3. year’s convention. J.D. Byrider currently consists of 135 franchise- and 23 companyowned dealerships in 33 states. C R O S S WO R D by Myles Mellor Each location employs an average of 20 employees. PAGE 21 The company opened a total of 13 new stores in 2013 and looks for1 3/7/14 2:12 PM ward toCAA_Awards_UCN.pdf continued double-digit store growth in 2014.

Caesars Palace is the official contractor for hotel reservations at the NIADA Convention & Expo in Las Vegas in June. The NIADA Convention & Expo staff has received phone calls and emails from members and exhibitors who are being solicited by unaffiliated hotels and reservation companies to book hotel rooms. Only Caesars Palace is authorized by NIADA to offer hotel room rates, cancellation policies and registration. The only way to register your hotel rooms directly at Caesars Palace is to call them at 866-227-5944 or book via https://aws.passkey. com/g/20078150.

CarMax Hires Employees to Staff Used Car Superstores

CarMax Inc. is recruiting for more than 1,200 positions in locations across the country. The majority of open positions are in sales, with additional positions in service, purchasing and the business office. Positions range from full and parttime permanent positions, with day and evening shifts available. Some of the areas with a large number of sales opportunities include Albuquerque, N.M.; Hartford, Conn.; Baton Rouge, La.; and locations in the Washington, D.C. and Baltimore, Md. area.

Published By General Media LLC USED CAR NEWS (ISSN 1555-7413) is published at 24114 Harper, St. Clair Shores, MI 48080 Phone: 586-772-5200 or 800-794-0760 Fax: 586-772-9400 www.usedcarnews.com Charles M. Thomas Founder (1947-2002) Lynda R. Thomas, Publisher Colleen Fitzgerald, General Manager Editorial: Ted Craig, Managing Editor Jeffrey Bellant, Staff Writer Gabriel E. Camero, Intern Contributing Writers: Ed Fitzgerald, Jenny King, Sheila McGrath Columnist: Tony Moorby Advertising: Shannon Colby, Account Manager Megan Frump, Account Manager Marie Hingst, Account Manager Circulation: Helen Thomas

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

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

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3/10/14 4:39 PM


March 17, 2014 ÝÛۂ

USED CAR NEWS

Experts Warn Auctions of Cybersecurity Threats By Gabriel E. Camero

As Target recently learned, hackers can cause a lot more problems than just the immediate loss of funds. Taking into account costs like lawsuits, public relations management, refunds and other legal penalties the average loss from a data breach in 2012 was $5.4 million. In the auto auction business, this roughly translates to a total cost of $188 per auction record. To address this issue, the National Auto Auction Association recently hosted a webinar presented by Michael Roy and Michael Rohdy from the insurance brokerage and risk management services firm Arthur J. Gallagher & Co. Roy and Rohdy said businesses can buy either firstor third-party insurance to cover cybersecurity losses. First-party loss is for internal concerns like technological repairs, bank fraud and lost income. First- party loss coverage also ensures the business

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has protocols and security that meet state and federal regulatory compliance requirements. Third-party liability covers expenses related to the business’s failure to prevent the attack, the harm caused to clients and any illegal alterations to the website like a logo changed to look like another company’s logo. The webinar presented possible attacks including familiar threats. These include Trojan horses and identity theft as well as others like internal attacks, e-commerce extortion and distributed denial of service. Electronic materials vulnerable to such attacks include auction management systems, computer networks, dealer registrations and employee information. Some corporate hackers break in or otherwise gather hard copies of information as well. Roy and Rohdy advised businesses to use protective protocols like the encryption of all sensitive materials, restriction of access to

information by department, securing of documents in fireproof cabinets and the shredding or deleting of information every 30 days. They also advised that select employees be given the added responsibility of being on a risk management team. For protection, Roy and Rohdy said firewalls are a minimum and encouraged companies to use web application firewalls as well. Web application firewalls monitor the network’s interaction with the web and when the interaction between the two drastically changes the firewall goes up to prevent exchanges. There are also intrusion protection systems that identify signatures and prevent known threats from infiltrating the network. The presentation also covered state and federal laws that require consumer screening processes and compliance in corporate cyber protection and notification regulations. Auctions can visit the National Conference of State

FOUND IT.

Legislators at NCSL.org to verify the notification laws in their state. The webinar is currently available at the NAAA

website. Roy and Rohdy also directed attendees to ponemon.org for more information regarding cyber risk planning.

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3/10/14 4:26 PM


ƒÛÝÛÛMarch 17, 2014

USED CAR NEWS

Auto Finance Sets Records

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The use of long-term loans and leasing for new-vehicle retail sales was on pace to reach record levels in February, according to an analysis by J.D. Power. Long-term loans – classified as loans that are 72 months and longer – account for 33.1 percent of new-vehicle retail sales in February, according to data gathered by the Power Information Network from J.D. Power. If that pace continues, February will set a new record for long-term loans as a percentage of new-vehicle retail transactions in a single month. The current record was set in September 2012, when 30.6 percent of new-vehicle sales were loans of 72 months or longer. Simultaneously, lease penetration is at its highest level on record, representing 26.5 percent of retail sales in February. The current record for lease penetration in any month is 26 percent, which was set in May 2000. In addition to these numbers, Swapalease.com believes consumers are looking to switch lease vehicles at a quicker pace, further fueling the growth in leasing today. According to data from December 2013 listings, the average months remaining on cars listed was 22.1, a new record for the 14-yearold marketplace.

The previous record was 21.8 months remaining set back in August 2006 and prior to the recession. More recently, this number has continued to fall, reaching 22 months remaining according to all listings in the Swapalease.com marketplace. With average lease terms still set at 36 months, this data says the average person looking to escape his or her lease looks to part ways with their car just shy of 15 months into the lease term. Experian Automotive reports that the share of new vehicles financed with a lease is at its highest level since the company began publically reporting the data in 2006. According to its latest State of the Automotive Finance Market report, Experian Automotive found that 28.4 percent of all new vehicles financed were leases in the fourth quarter, up from 24.8 percent the previous year. Other findings from the report showed the average amount financed for a new vehicle was $27,430 in the fourth quarter. This marked the highest average loan amount for a new vehicle since 2008 and the first time the amount has exceeded $27,000. The average loan amount for a used vehicle during the quarter was $17,974, also a record high.

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PAGE 8 - PAYMENT ASSURANCE TECHNOLOGY

Payment Technology Grows Smaller, Less Expensive The reason, he said, is they want to serve more underPayment assurance tech- banked consumers, as well nology has come a long way as the swelling ranks of poor credit customers. in the last decade. The increased availability Ten years ago, buy-here, By Ted Craig

worry if their provider will stick around. The biggest challenge remains overcoming technophobia, Behnke said. That’s changing as dealers see the

“I have concluded from our studies that there are two types of buy-here, pay-here operators: those who are already using payment devices and those who should be,”

Ken Shilson pay-here dealers were installing brick-sized devices under a cloud of suspicion. Each generation of devices grows ever smaller. “Today, the device is about the size of a stick of gum,” said Mark Behnke, Spireon’s vice president of operations. The devices are also expected by almost all creditors these days. Behnke said he is working with several credit unions that want to start using payment assurance technology.

of these devices means they are costing less. The cost of on-going services is also lower, thanks to the dropping expense of bandwith. Stability helps, too. The market is down to about a half-dozen larger players that are invested for the long haul. The days of fly-by-night start-ups and constant consolidation are over, Behnke said. Dealers and other users no longer need to

success of others and younger, more tech-savvy operators enter the business. Ken Shilson, founder of the National Alliance of BuyHere, Pay-Here Dealers, said data shows the investment is worthwhile. “I have concluded from our studies that there are two types of buy-here, pay-here operators: those who are al-

ready using payment devices and those who should be,” Shilson said. Shilson said the NABD studies find starter-interrupt devices cause customers to prioritize their car payments and reduce delinquencies. Operators say that collectors can potentially handle twice as many. The devices also reduce net bad debt losses by increasing recoveries. In addition, they alter customer behavior by making the customer call the lender rather than vice versa. GPS devices produce lower default rates because they deter customers from “walking away” from the deal, Shilson said. Easier communication between operators and the customers also keeps default rates down. GPS devices seem to impact recoveries more than

they do delinquencies, according to NABD study results. Dave Ronsky, owner of Paytech, has been involved with the industry for more than a decade, working mostly on the technology side. The biggest advances he sees today, however, are in training. He said dealers are using the devices more efficiently by following best practices. For example, it’s better to turn off cars when they are least likely being used so customers don’t wind up stranded away from home. The next step in the segment’s evolution will come from tapping into the massive amounts of data collected by the devices, Behnke said. This information can help dealers improve every aspect of their business, he said.

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~‡Û�ÛÛMarch 17, 2014

USED CAR NEWS

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~ÛÝÛÛMarch 17, 2014

USED CAR NEWS

Scam Hits Dealer, Customer By Sheila McGrath

A Minnesota man found himself without a car last December after state police confiscated a stolen Chevrolet Cobalt he had recently purchased from a Bloomington dealership.

referenced the VIN plates on the dashboard and doors to make sure they matched the title. But they hadn’t taken out the engine to check the hidden VIN, which had not been changed. Lupient Chevrolet reimbursed McCoy the $7,200 he paid for the

“It’s tough for dealers to identify a stolen vehicle.” Robert Henderson

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The dealer, Lupient Chevrolet, had been duped as well. Customer Pat McCoy learned from the Minnesota State Patrol that he, Lupient Chevrolet, and two previous owners had all purchased the stolen Illinois vehicle after its VIN had been altered in a sophisticated scam. Police say the alleged perpetrator, Charles Swisher, had stolen more than 200 cars since 2006 and altered the VIN plates. He was arrested in August and charged with 14 counts of vehicle theft, among other charges. Lupient general manager Pam Guilford told the Minneapolis Star Tribune it was the first time in 33 years of business she had run into the scam. The dealership had acquired the Cobalt on a trade-in, and had cross-

car, but the dealer won’t be reimbursed by insurance. Robert Henderson, a Minnesota investigator with the National Insurance Crime Bureau, said he investigates between 25 and 50 cases of VIN switching each year in Minnesota. It’s tough for dealers to identify a stolen vehicle they might take in on trade, he said. Still, they should abide by the old maxim “Let the buyer beware.” “There’s not a whole lot they can do unless they want to devote a lot of money and personnel to checking all the vehicles, but it’s kind of impractical for a dealership to do that,” Henderson said. “The best thing they can do is check the paperwork on vehicles they purchase. Continued on page 14

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ADESA Golden Gate April 1, 15, 29 209-839-8000

Manheim Baltimore Washington April 8 410-796-8899

ADESA Houston April 2, 16, 30 281-580-1800 ADESA Indianapolis April 1, 15, 29 800-925-1210 ADESA Kansas City April 1, 15, 29 816-525-1100 ADESA Lexington April 3 859-263-5163 ADESA New Jersey April 3, 17 908-725-2200 ADESA San Diego April 3 619-661-5565 ADESA Tulsa April 11 918-437-9044 America’s AA-Chicago April 16 708-389-4488

Manheim Dallas April 9, 23 877-860-1651 Manheim Denver April 9 800-822-1177 Manheim Detroit April 3, 10, 17 734-654-7100 Manheim Fredericksburg April 10, 24 540-368-3400 Manheim Milwaukee April 9, 23 262-835-4436 Manheim Minneapolis April 2, 30 763-425-7653 Manheim Nashville April 16, 23 877-386-5004 Manheim Nevada April 18 702-361-1000

Manheim Orlando April 1, 8, 14, 15, 22, 29 800-337-8491 Manheim Pennsylvania April 3, 4, 17, 18 800-777-2053 Manheim Phoenix April 3, 10, 17, 24 623-907-7000 Manheim Pittsburgh April 9 724-452-5555 Manheim Riverside April 8, 10, 24 909-689-6000 Manheim Seattle April 2, 30 206-762-1600

* Only Jaguar and Land Rover vehicles will be sold on this date.

Mazda Capital Services ADESA Boston April 11, 25 508-626-7000

Manheim Detroit April 3, 17 734-654-7100

ADESA Golden Gate April 15 209-839-8000

Manheim Fredericksburg Manheim Pennsylvania April 24 April 4, 18 540-368-3400 800-777-2053

ADESA Kansas City April 1, 29 816-525-1100

Manheim Milwaukee April 23 262-835-4436

Columbus Fair AA April 23 614-497-2000

Manheim Nashville April 16 877-386-5004

Manheim Atlanta April 3 404-762-9211

Manheim New Jersey April 9, 23 609-298-3400

Manheim Orlando April 1, 29 800-337-8491

Manheim Pittsburgh April 9 724-452-5555 Manheim Riverside April 8 909-689-6000 Manheim Seattle April 2, 30 206-762-1600

Manheim Southern California April 17 909-822-2261 Southern AA April 9 860-292-7500

Choose Chase on ADESA.com and OVE.com for quality bank-sourced vehicles. Contact auctions directly for current sale information.

Subaru Motors Finance Manheim Pennsylvania April 18 800-777-2053

ADESA Boston April 11, 25 508-626-7000

Manheim Detroit April 3, 17 734-654-7100

Brasher’s Salt Lake April 22 801-322-1234

Manheim Fredericksburg Manheim Pittsburgh April 9 April 10 724-452-5555 540-368-3400

Columbus Fair AA April 16 614-497-2000

Manheim Milwaukee April 9 262-835-4436

Manheim Dallas April 23 877-860-1651 Manheim Denver April 9 800-822-1177

Manheim New Jersey April 23 609-298-3400 Manheim Orlando April 8 800-337-8491

Manheim Seattle April 2, 30 206-762-1600 Manheim Southern CA April 17 909-822-2261 Southern AA April 9 860-292-7500

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

UCN_13.indd 1

3/7/14 2:02 PM


~ÛÝÛÛMarch 17, 2014

USED CAR NEWS

QUIT CHASING YOUR INVENTORY! Get Vehicle Protection from Payteck! VEHICLE PROTECTION SYSTEMS

VIN Scam

– from page 12

“Make sure everything adds up. If it doesn’t, start asking questions, and if need be, call authorities.” There are a few common schemes thieves use to resell stolen vehicles, he said. The most common is a “retag,” where thieves swap the VIN plate with one from a car that’s been salvaged or is no longer on the street, he said. Dealers should always be sure to inspect VIN plates, looking for any oddities such as tool marks or scratches on the corners.

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In another common scheme, crooks “clone” vehicles. They copy down a VIN from a legitimate vehicle, then produce their own VIN plates and counterfeit labels for a stolen car of the same model. For that to be successful, the two vehicles have to be registered in different states, Henderson said. What’s unique about vehicle crime is that cars can be retagged and sold the next week, but a dealership may not see it for two or three years. “And then the dealer gets stuck with it,” Henderson said.

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3/10/14 10:50 AM


March 17, 2014ÛÛ�ÛÛ~‚

USED CAR NEWS

Recalls

– Continued page 1

Among the latest actions, Toyota is recalling 700,000 model year 2010 through 2014 Priuses. The recall requires a software update to avoid a loss of power, including a possible shut off. Toyota remains the most valued automotive brand in the world despite this spate of recalls, according to brand valuation consultancy Brand Finance. While brand value took a hit in the short term, it also rebounded quickly. Recalls actually play a surprisingly small role in quality judgments, said Neil Steinkamp, managing director at Stout Risius Ross Inc. “Quality is related to consumer perception and many factors are involved in that, more than warran-

ties and recalls,� Steinkamp said at the SAA event. Manufacturers and dealers should prepare for even more recalls in the future as the National Highway Traffic Safety Administration grows more aggressive. NHTSA has expanded both the number of units included in recalls and the scope of what defines a safety recall. Chrysler recently entered a public spat with the regulator over a recall for trailer hitches. NHTSA now requires that all manufacturers use distinctive labels on required mailings that notify owners of recalled vehicles or equipment. The use of the new label is strictly limited to only the recalling manufacturers.

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UCN_15.indd 1

3/10/14 5:08 PM


~ƒÛÝÛÛMarch 17, 2014

USED CAR NEWS

RETAIL MARKETS KANSAS

John Hattan, owner, Family Motors, Wichita, Kan.: “We’ve been in business for about 15 years under this name. We had a subprime lot and I was a principal in a Chevrolet store for about 30 years. “We currently have one location. We turned the corner in July, 2011, and went primarily into lease-here, pay-here. “In the state of Kansas, all the sales taxes are due for the transaction upfront. “So for a $10,000 sale we’d have to put $730 with the state and our typical customer is a $350 down payment. “On a lease, the money to the state is typically less than $20 and the payments are taxed. “We typically have bumper-to-bumper warranties on the cars for the full term. So it’s kind of like buy-here, pay-here on steroids. “We display around 35 cars and lately we’ve been turning about 30 cars a month. “And I’ve got 260 cars in

UCN_16.indd 1

the lease fleet. “Last year we averaged about 24 transactions a month and this year we’ve kicked it up. “I think we did 35 in February. “I have two outside buyers and my son and I attend a couple of local auctions, but I would say 50 percent of our inventory is from local auctions and 50 percent from our buyers. “Our lease payments tend to be pretty much on par at our store because we include the warranty in the payment. “Payments are usually $90 a week for 30 months. Our buy-here, pay-here payments average $100 a month for a 36-month term. The average retail price is around $8,000. “We’re 40 percent SUVs and trucks and 60 percent sedans. “We have about 95 percent domestic. “We typically run from the 2000 model to 2007, but typically the cars are going out the door at 120,000 to 140,000 miles. “So we’ve got a surprising-

Compiled by Ganriel E. Camero ly higher mileage fleet out there that is holding up very well because we do the service and the maintenance on them. “We recondition our vehicles in-house in our two bays for about $530 per vehicle. “I’m meeting with an architect about adding four bays to our store. We’re just covered up right now in service with the number we’ve got out there on warranty that we’re doing the service for, but I have 12 acres so I have plenty of space to expand. “We use the local weekly auto shoppers for marketing to a great deal. We’re in a very expensive television market here in Wichita, so it’s kind of hard to be noticed against the big bucks being spent by the franchise dealers. “We do some Internet but the majority is the electronic signage we have up for the drive-by customer. We’re between the main north-south drag of Wichita and we’ve got an interstate highway and a bypass that goes all the way around us

so we’re highly visible. “We recently contracted out a 2002 GMC Envoy with 160,000 miles for $7,999. The customer paid $485 down payment on a 24-month contract.”

SOUTH CAROLINA

Jody Boswell, general manager, Floyd Motor Co., Lake City, S.C.: “We’ve been a family owned business since 1937. We stock about 30 to 35 vehicles on our single lot. “We’re just an independent dealer. “I buy our stock from auctions, dealers, individuals and the Internet, anywhere I can find product. “We probably run half car and half trucks and SUVs. “We probably have a domestic to import ratio of 2-to-1, about 20 domestics and 10 imports. “Our average model year is probably 2009 or 2010, if you average it out. “Our average retail price is around $12,000 to $13,000. It’s hard to say because we do have a lot of high dollar stuff we sell and a lot of cheap stuff, so you could even say $15,000 and that’s

probably close. “Our cars average 75,000 miles, gosh that’s gone up over the years. “People put more on cars than they used to, you know? “We offer regular and subprime finance for our vehicles. “We recondition our vehicles here in our five-bay service center. “We do basic stuff - oil changes, very small jobs. “Mostly when I buy cars they’re usually front-line ready so the recon price is not much, unless I trade one in. I probably spend about $200 on trade-ins. “I’m not a full-service center anymore. “I used to be a franchise, but I’m just independent now. “I’ve been an independent since 2009. “I do Internet marketing mostly, a little paper but mostly Internet. I use the Internet because it just works better. “We sold a Camry yesterday (March 4), 2009 for $12,500 with 58,000 miles on it.”

3/10/14 4:42 PM


March 17, 2014ÛÛÝÛÛ~„

USED CAR NEWS

WHOLESALE MARKETS LOUISIANA

Butch Royall, managing partner, ABC Baton Rouge, Baton Rouge, La.: “We had our first sale last June and our grand opening was in July 2013, so it’s a brand new facility. “In fact, come June, I’ll have been in the industry 50 years. “We have six lanes and we’re running four. During a recent sale we sold 376 cars. We’re running 375 to 400 units. “One recent sale was 77 percent (conversion) overall, while a previous week we had an incredible 79 percent sale. “We’re running about 55 percent commercial accounts and 45 percent dealer (units). “We’ve been very fortunate. We’ve got the Capital One sale. We have Santander. They’ve been very good to dealers and dealers like their product. “We also have ARI, PHH and we just got Westlake Financial and we have General Electric. As a matter of fact, we ran more than 70 GE units on March 6. We

also have cars from Mike Albert Leasing. “Our timing is right. We’re experiencing a very strong tax season. We work very hard to please the dealers and bend over backwards for them. They seem to appreciate it. “Our average price (on the block) during a recent sale was $7,460. “It’s been a little different than most years. Dealers are cautiously optimistic. They see demand going into a really good tax season. “But they‘re still a little hesitant about how strong it’s going to be after tax season. In other words, the cars that they’re buying are ones they know they are going to sell. They’re not going out on a limb and buying something unusual, something outside their normal (purchases). “We’re getting dealers out of New Orleans, Jackson, Miss., and a number from Houston. Of course, we’re drawing from home in Baton Rouge, La., and Vicksburg, Miss. I’d like to say I’m getting some out of Birmingham, Ala., but our sis-

Compiled by Jeffrey Bellant ter auction (ABC Birmingham) is able to keep theirs. “We’ve built the auction on the airport property, so we’re three minutes from door-to-door. While we knew we’d get commercial business, we were surprised at the acceptance that the dealers have given us. “We’ve had some of the most unusual weather that I’ve seen. One recent Sunday I was sitting on my porch, wearing a T-shirt and shorts. It was 84 degrees. But when I got up to go to work the next morning, it was 29 degrees. “So we had one sale that we had to postpone and move over a day because of ice. We probably haven’t had ice since sometime in the 1980s. That always hurts. “I think 2014 is going to be a good year. But I think 2015 is going to be outstanding.”

PENNSYLVANIA

Clint Weaver, assistant general manager, Harrisburg Auto Auction, Mechanicsburg, Pa.: “We’ve been in business for 32 years.

“We have six lanes and we turn those into 10 every week (by running double blocks). “We run about 1,700 to 1,800 cars a week. Volumes have stayed about the same compared to this time last year. “We’ll normally draw 700 to 800 dealers in the lanes. “Volumes are starting to pick back up a little bit with lease cars and repossessions coming back around. But it’s been steady. “During two recent sales we did 81 percent and 79 percent. I just think it’s because everything had been slow before that with the bad weather. Also, the spring market is finally coming and tax time is here. So with all of those things together, it’s usually the best time of the year. “But 81 percent was our best percentage ever at Harrisburg Auto Auction. We’re proud of that. “About 80 percent of our volume is dealer consignment and 20 percent is fleet-lease. “Dealer consignment has picked up for us tremen-

dously in the last couple of years. It’s grown from 800 a week to 1,200 to 1,300 a week. So it’s a big part of our auction. “On the commercial side, we run most of the major consignors, like GM Financial, GE Remarketing, Wheels, ARI, Avis, Exeter Finance and the biggest sale for Pennsylvania credit unions in the state. “We hold a weekly in-op sale with 50 lease vehicles and 50 dealer consignments. ‘Once a month – the last Thursday of the month – we’ll run our heavy truck and equipment sale. That’s everything from heavy trucks and boats to RVs and motorhomes. We try to run at least 75 units. “In the spring, we run a classic car and toy auction. We’ll usually get about 50 or 60 of those. That’s coming up soon. “The average price is about $5,500. That’s actually increasing. We added a couple of more lease accounts with newer model cars. So bringing those cars in helps.”

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UCN_17.indd 1

3/10/14 4:43 PM


~…ÛÝÛÛMarch 17, 2014

USED CAR NEWS

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DOMESTIC Ford/Lincoln/Mercury Ford / Mercury Lincoln GM Buick Chevrolet GMC Oldsmobile Pontiac Saturn Hummer Cadillac Saturn through 2009 Chrysler/Dodge/Jeep Chrysler Dodge Jeep Memo: Fiat Memo: Chrysler w. Fiat Total Domestics

Feb ‘14 20,199 18,344 1,855 32,069 2,546 24,086 5,165 201 71 0 1,549 11,506 2,200 5,383 3,923 26 11,532 65,323

Feb’13 16,096 14,539 1,557 26,933 2,055 20,315 3,849 476 238 1,439 9,331 1,949 4,493 2,889 15 9,346 53,799

‘14 YTD 39,075 35,529 3,546 60,577 4,818 45,300 9,975 352 132 1 3,086

18,332 3,032 10,359 1,259 28,015 5,711 6,804 3,464 2,964 52 3,345 83,337

17,874 2,897 8,507 845 28,020 5,576 5,627 2,103 2,638 46 2,323 76,456

35,808 6,037 19,998 2,276 54,182 11,141 13,864 6,425 5,880 106 6,691 162,408

3,267 30 6,856 26 399 852 9,977 11 625 844 6,628 26 841 30,382

2,786 30 6,157 15 280 494 7,533 8 442 768 7,301 33 876 26,723

6,428 60 12,875 60 726 1,616 18,278 15 1,320 1,653 13,190 73 1,682 57,976

179,042

156,978

345,355

22,232 4,182 10,358 7,692 60 22,292 124,971

ASIAN Honda Acura Nissan Infiniti Toyota Lexus Hyundai Kia Mazda Mitsubishi Suzuki Subaru Total Asian

EUROPEAN Audi Bentley - EST. BMW Fiat Jaguar Land Rover Mercedes-Benz Smart MINI Porsche Volkswagen Maserati Volvo Car Total European

Total - EST.

Source: Autodata Corp.

UCN_18.indd 1

3/7/14 12:24 PM


ACTUAL WHOLESALE AND PROJECTED RESIDUAL VALUES MARCH 2014

SOURCE: BLACK BOOK

2011 MODELS

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

Mar-13 22700 28000 12800 12750 18750 13400 12700 17200 18600 24800 Mar-13 25600 31100 63900 15500 15350 29900 37200 11700 12600 13900 12100 15950 13500 15900 Mar-13 34350 49900 30000 20750 18150 20975 30050 15875 22000 18100 28350 21050 22075 18600 19600 29950

Sep-13 21450 24700 12100 12100 17650 12100 12250 15900 17400 24600 Sep-13 24600 28200 57500 15300 13550 29000 36300 11800 12300 13600 11500 15050 12500 14850 Sep-13 33200 46700 29000 20750 16300 19800 29950 15050 21300 16300 27100 20350 19550 17900 19900 28350

Mar-14 19150 21800 10600 10700 17450 11000 10950 14500 15550 19700 Mar-14 22000 25650 55500 14200 12450 26300 31800 11150 10800 12100 10350 14000 11450 13750 Mar-14 30250 42100 26050 19500 13000 18950 26975 13350 18900 15700 26275 20050 18750 17350 17850 26800

Projected Figures Mar-15 Mar-16 16550 14150 18675 15400 8725 7575 9000 7975 13350 11375 9400 8050 8850 7600 12550 11275 12875 11150 16950 14850 Mar-15 Mar-16 18425 15850 20100 16750 45025 38100 12225 10875 10250 8725 22250 19550 26800 22375 8950 7650 9675 8450 10750 9350 8550 7475 11575 10275 9725 8525 12225 10475 Mar-15 Mar-16 24950 21050 36225 30875 22325 19550 16975 14925 10975 9400 15975 14250 23200 20475 9650 7750 15100 13050 12900 10950 20825 17600 15975 13900 14675 12600 14225 12575 14975 13175 22725 19800

UCN_19.indd 1

Mar-13 14600 18000 8350 10000 13500 10050 13200 14700 18200 9300 Mar-13 20600 20500 46000 12600 9850 22700 29200 9100 10550 11850 10050 12500 10550 12900 Mar-13 26500 40500 25050 17125 14200 18100 23450 13175 11450 18100 14725 18000 16850 17875 15400 14300

Sep-13 13900 18200 7500 9150 13200 8800 12700 13950 17350 9050 Sep-13 20000 19000 39100 12400 8800 22000 28500 8400 9750 11050 9400 11750 9950 11800 Sep-13 25000 37650 24300 17450 12375 17600 23025 12525 11275 17400 12700 17150 16550 17300 14300 13750

Mar-13 17100 24500 11400 11300 16900 11450 15000 10700 16700 21700 Mar-13 23000 23500 53400 14000 13850 26100 33000 10400 11550 12850 10800 14000 11850 14800 Mar-13 31000 45000 27550 18925 16150 19450 27100 14550 21125 16450 27200 19075 20200 17550 17750 27100

Sep-13 15600 21850 10850 10350 16500 10550 14100 10450 15500 21450 Sep-13 22000 22450 46300 13800 12200 25400 32100 10000 11000 12300 10250 13150 11200 14000 Sep-13 30050 43300 25850 19250 14100 18625 25900 13000 20700 14150 26100 18725 18850 15650 17700 24950

Mar-14 13600 19100 9600 8900 15500 9800 12900 9100 13700 22100 Mar-14 19700 19700 44500 12650 11200 22500 27800 9500 9600 10900 9000 11900 10250 12700 Mar-14 27250 38150 22800 18000 11300 17425 23175 11250 16950 12950 24500 17900 16850 15050 15950 23650

Projected Figures Mar-15 Mar-16 11650 10075 14725 12350 7725 6625 7550 6625 11450 9650 8000 6825 11475 10250 7375 6300 11100 9400 16775 13875 Mar-15 Mar-16 15875 13625 15775 13300 36525 30850 10775 9450 8800 7375 19325 17000 22300 18300 7500 6325 8350 7200 9350 8025 7325 6350 10075 8975 8550 7475 10075 8525 Mar-15 Mar-16 21450 17850 31375 26350 18850 16125 15125 13225 9150 7725 14575 12925 19750 17225 8400 6700 13125 11225 10800 8950 18450 15350 13875 12000 13050 11150 12675 11175 13150 11400 19425 16525

Mar-14 7850 13500 5100 7100 10500 5350 9200 8250 14950 6600 Mar-14 16100 13900 31800 9900 6750 16300 18100 6400 7800 8700 7150 8950 7900 9350 Mar-14 17850 29150 14300 14800 7650 13675 20250 9075 7450 12150 9550 12825 13275 6400 11150 10600

Projected Figures Mar-15 Mar-16 6350 5400 10375 8475 4475 3875 5625 4725 8675 7250 3825 2975 8125 7050 6275 5200 11025 9100 5125 4250 Mar-15 Mar-16 11550 9475 11200 9225 25375 20875 8100 6950 5625 4575 13700 11775 14650 11675 5200 4200 6250 5250 7175 6050 5550 4650 7575 6575 6375 5450 7325 6025 Mar-15 Mar-16 14575 11975 22075 17550 11675 9525 11775 10025 6425 5225 11450 9950 14900 12200 7650 6675 5500 4300 9325 7875 7350 5825 9725 7850 10525 9075 5225 4250 9400 8300 8825 7375

2009 MODELS

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

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

Mar-14 11700 16000 6150 7450 11650 7850 11500 12850 17950 7900 Mar-14 17700 16500 37250 11200 7850 19300 24800 7800 8450 9750 8450 10250 9050 10800 Mar-14 22600 34150 20350 16250 10325 16275 21425 10850 9400 14725 11200 15200 15175 14275 13450 12850

Projected Figures Mar-15 Mar-16 10100 8525 12300 10225 5275 4600 6400 5525 9150 7775 5200 4100 9825 8600 9700 8050 13575 11075 6275 5275 Mar-15 Mar-16 13750 11350 13550 11300 30925 25825 9425 8150 6825 5625 16325 13875 18350 14775 6275 5225 7250 6175 8125 6900 6650 5625 8725 7675 7350 6400 8775 7375 Mar-15 Mar-16 18275 15175 26875 21975 16300 13425 13425 11725 7900 6400 13125 11450 17325 14600 9000 7875 6625 5200 11300 9600 8800 7200 12225 9900 11800 10425 11300 9675 11175 9775 10725 9125

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

Mar-13 10200 15200 6750 8900 12100 7300 11050 9000 15300 7800 Mar-13 18800 17600 38800 11300 8400 19700 21800 7800 9450 10250 8350 11200 9150 11300 Mar-13 22100 36200 17650 15875 11425 15675 22500 11550 9450 15550 13075 14500 15275 11525 14300 12900

Sep-13 9200 15050 6050 8300 11600 6100 10600 8700 14450 7200 Sep-13 18200 16150 34450 11050 7500 19000 20000 6850 9100 9900 8150 10450 8500 10300 Sep-13 20000 33100 16050 15800 9025 15225 21700 10425 9175 14200 10650 13700 15150 9150 12750 11900

3/7/14 11:22 AM


‡ÛÛÝÛÛÛMarch 17, 2014

USED CAR NEWS

HPV UCN AD DUE 2014.02.21 outlined & embedded.ai 1 2/21/2014 3:25:50 PM

Compiled By Jeffrey Bellant

KIA HONORS TOP AUCTIONS

CALIFORNIA RULES: Manheim Riverside’s John Dorming (holding the plaque) accepts Kia Motors America’s Auction of the year award on behalf of the auction.

Manheim Riverside received Kia Motors America’s 2013 Auction of the Year award during the recent Conference of Automotive Remarketing in Las Vegas. David Alfonso, remarketing manager for Kia Motors America, presented the firm’s awards to its top consignors. Auctions were honored for cost-control, vehicle preparation, following directions, dealer services and market development. “Overall, our core auctions did an excellent job for us,” Alfonso said. But, he added the Auction of the Year winner is based on “undisputed top numbers in all of our sales categories throughout the year.” That includes top sales percentage, value retention, high percentage of vehicles sold online, best ratio of dealers to vehicles offered and other categories. Alfonso also presented ADESA Golden Gate with Kia’s High Performance award. He praised the auctions for boosting penetration into the tough California market, which has been a goal of Kia’s.

GM Names Auction of the Year

GM Financial named Rawls Auto Auction, Leesville, S.C., its 2013 Auction of the Year as part of the company’s annual nationwide Auction of Excellence program. GM Financial announced the Auction of Excellence winners at its annual Auction Summit in Dallas. Auctions were judged on performance in a variety of categories, including customer service, marketing promotions, pre-sale activities and overall auction success. “The road to Auction of the Year is a difficult one. Rawls makes it seem relatively simple,” said Brad Bollman, vice president, remarketing solutions. “Throughout our rela-

UCN_20.indd 1

tionship with Rawls, they are a consistent force in the rankings.” This is Rawls’ fifth Auction of the Year award. The 2013 regional winners were: Grand Rapids Auto Auction (Northwest); Manheim Harrisonburg (Northeast); ADESA Austin (Southwest) and Brasher’s Sacramento Auto Auction (West). 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

3/10/14 5:28 PM


March 17, 2014ÛÛ�ÛÛ~

USED CAR NEWS

Disconnected Jottings From Tony Moorby... Tax time looms large again. While Benjamin Franklin pointed out that nothing is more certain than death and taxes, it was Will Rogers who observed that death doesn’t get any worse every time

would have to redeploy their pencil pushers if things were made easier to the point where few payers required their services. What could be easier and, dare I say, more efficient,

Tony Moorby

Ć€É&#x; Ĺ´Ĺ°Ć?3,É&#x;0.,(É&#x;) É&#x;."É&#x;#(/-.,3 Ć€É&#x; ,-#(.É&#x; ,)'É&#x;ŹŚŚšƑŲŰŰŰÉ&#x;) É&#x;É&#x;É&#x; É&#x; /.)').#0 Ć€É&#x; ,0É&#x;-É&#x;Ɖ-É&#x;2/.#0É&#x;0#É&#x;É&#x; É&#x; *,-#(.É&#x;) É&#x;-&-É&#x;(É&#x;',%.#(! Ć€É&#x; )),3É&#x;Ć É&#x;--)#.-É&#x;ŲŰŰŜƑ*,-(. Ć€É&#x; 1,É&#x;."É&#x;#(!É&#x;) É&#x;)(),É&#x;3É&#x;É&#x; É&#x;   Ć€É&#x; É&#x;&&É&#x;) É&#x;',

Congress sits. It also seems that the working classes pay more and more to subsidize those who don’t. These days it would take a very sound argument to dislodge a belief I hold in a universal flat tax. There are arguments, I’m sure. I’m just not intelligent enough to think them all through. Those that would put up those arguments are normally the ones to gain most by the retention of this crazy maze we call the tax code. Accounting companies

than requiring a 15 percent Federal tax across the board? It could apply to individuals as well as corporations and have no exceptions. Not for anything. Half the lobbying firms in the Beltway would go out of business or look for something more productive to do than fend off unfriendly tax overtures for clients paying them kings’ ransoms (I chose the word) to avoid paying taxes or applying for subsidies and pleading special cases. There would

be no special cases. Fifteen percent it is‌cough up! I truly believe that people would be pleased to avoid the annual hassle and pay up, what in essence, seems a reduced amount of what we currently pay. Avoidance, a just-about-legal way of evasion, would wane to next to nothing as it would cost more to figure out how to avoid paying taxes than paying them. Companies wouldn’t spend fortunes on working out ways to stash the money overseas in some haven when they could put the money back to work right here in the good old US of A; produce more, employ more, create more new tax-payers, more consumers, more purchasers, more producers‌ you get the drift, I’m sure. “What about state taxes?â€? I hear you say. Leave them alone. If you don’t like them, move. Tennessee has no income tax but a buttclenching sales tax (even on most foods), currently running at 9.75 percent. The beauty is that it’s my choice whether to buy something

C R O S S WO R D

29. Sporty Studebaker 31. Koenigs____ 32. Mini ____man 35. From head __ toe 37. Speedometer reading 38. Nation where Rolls Royce engines are made 40. Approve 41. Big oil company 42. Mercedes-Benz ____ Class 43. Walks up and down 45. Rust 46. Emeril Lagasse, for example 49. Small cars for speed races 50. Buick sedan

To see past columns from Tony Moorby, visit www.usedcarnews.com/ columnists/tony-moorby 1

Down

1. Luxury 4-door saloon 5. Popular Toyota 8. __ his wits’ end? 10. ____ Rover 11. Dodge _____ R/T Classic 15. Usedcarnews.com is an example of one 16. Gear _____ 17. Event controller, abbr. 18. Select and Krom are two versions of these Nissan SUV’s 19. Outer part of a wheel 21. Baltimore state 22. Compete 23. ___ Grand Cherokee 26. Driver’s license, for one 28. Square footage

to run to an astonishingly ridiculous 77,000 pages, is to reduce the offices of the IRS to a mere skeleton of its currently overblown, Las Vegas-partying, obese and ugly, intrusive (which suits the NSA) body. Who benefits from such a lengthy mandate? The IRS, that’s who. Assured government employment, with all the attendant benefits for 160,000 people. They could all find jobs counting the money of growing companies investing in a growing economy where it pays to work and it works to get paid. So if we all paid 15 percent of our income, we should limit the government to spend no more than 15 percent of our economy. Meanwhile, dig deep!

Sponsored by INSURANCE AUTO AUCTIONS

By Miles Mellor

Across

and therefore pay the tax or walk away. Florida’s punitive taxes come at you from every direction with the exception of income taxes. The result is that people buy a little house to claim residency but don’t show up for the required six months that it takes to qualify and spend their money on other in-state things. Eventually the state loses out, providing overly expensive infrastructure for a population that needs looking after, but can’t pay or have their hands out for someone else to pay (i.e. you and me). Many folks are now looking at other southern states for eking out a bargain way of retirement life. An overarching reason to simplify the tax code, which by the way, this year is likely

1. Classic English car, the _____ Bulldog 2. This speed is way over US speed limits 3. Boston’s state 4. “And I could go on...� 5. Popular Jeep 6. Large Dodge coupe from the late 70s 7. Popular Toyota hybrid 9. The A in AWD 12. Tank like truck 13. Type of welding 14. Iconic Chevy sports car 20. 2nd in the family 23. XF and XJ 24. Energy measurement 25. Super___, political group 26. Debtor’s note letters 27. It’s offered in many auto sales ads 29. Banking machine 30. Saturn model 33. MKZ or Navigator 34. Money allocated for spending

2

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44

45

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Answers to the 3/3/14 puzzle 1

36. Ford crossover 39. Yukon is one of these SUV’s 42. Toothed wheel 43. Part of mpg 44. Back part of a ship 47. Laughter word 48. Classic car, __Lorean DMC-12

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Answers to this puzzle in the 4/7/14 issue. Call 1.800.794.0760 for a FREE subscription.

UCN_21.indd 1

3/10/14 4:44 PM


ÛÝÛÛMarch 17, 2014

USED CAR NEWS

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

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April 7 - Fleet Lease Focus Deadline Thurs., March 27

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800-794-0760 ext.107 VIEW CLASSIFIEDS ONLINE AT USEDCARNEWS.COM UCN_22.indd 1

2014 UPCOMING PUBLICATIONS

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TO ADVERTISE PLEASE CALL 1.800.794.0760 EXT. 107

3/10/14 9:20 AM


T:9”

T:13”

DO YOU KNOW TODAY’S CUSTOMER? You may think that people only shop for used cars on AutoTrader.com. The truth is most of our shoppers don’t know exactly what they’re looking for. In fact, 44% OF NEW CAR BUYERS ON AUTOTRADER.COM WERE ORIGINALLY CONSIDERING A USED CAR. This gives you a tremendous opportunity to influence them when they are actually expanding their consideration set. See how you can impact undecided shoppers at WeWorkForYou.com/Karen.

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

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AT4-679 / Used Car News

3/6/14 4:38 PM

3/6/14 6:21 PM


Why successful dealers finance their inventory with NextGear Capital …

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3/6/14 2:40 PM

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