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ON THE WEB: More Consumers Opt For Service Contracts
Association Seeks Compromise with State
Service contracts are an increasingly popular choice among consumers as car repair costs rise, according to the Service Contract Industry Council. Consumers bought more than 10 million service contracts in 2012 for both new and used vehicles. Those service contracts covered 95 percent of annual claims filed, including normal wear and tear, and filled in coverage gaps in the manufacturer’s warranty.
GDP Predicts Sales
New research finds that personal income, interest rates and the price of gas all influence auto sales, but a country’s gross domestic product alone is a good indicator of new sales.
FTC Bans Telemarketer
The architect of an operation that allegedly distributed illegal robocalls offering extended automobile warranties is banned from telemarketing under a settlement.
Photo Courtesy of Arizona IADA TABLE TALK: Aubrey Strickstein, president of the Arizona IADA (background, standing), meets with the association’s wholesalers to discuss a compromise to a proposed law that would eliminate wholesale dealer plates. At press time, the group was scheduled to meet with state officials. By Jeffrey Bellant
Arizona dealers and wholesalers are meeting with state officials to hammer out a compromise over the proposed elimination of wholesale dealer tags. The meeting is in response to House Bill 2372 that would establish new
requirements for obtaining dealer tags. The bottom line is that, under the bill, wholesalers would lose the right to use traditional dealer plates. Instead they would receive limited use, temporary paper tags. Dave Warkentin, executive director of the Arizona
Independent Automobile Dealers Association, said at press time the association would be meeting with officials from the Arizona Department of Transportation to try and work out a compromise deal. Association officials have said the proposed change would unfairly hurt legiti-
mate wholesalers who have followed the rules. The DOT has pushed for the measure because some non-wholesalers are taking advantage of the law to avoid registration taxes on their personal vehicles, according to Arizona IADA officials. Continued on page 3
Rush - Dated Material
Used Vehicle Retail Prices Vary by Location It turns out larger cities often offer lower prices for used cars than smaller cities. CarGurus released a study identifying the most affordable and most expensive U.S. cities in which to buy a used car. Topping the list of deal-friendly destinations is Miami, followed by Cleveland, Rochester, N.Y. and Detroit. Jackson, Miss., was found to be the most expensive usedcar city, followed by Seattle, Montgomery, Ala. and Little Rock, Ark. CarGurus analysts say price differences between cities can be substantial. Relative to nationwide prices, used cars in the most
affordable city, Miami, are on average 6.6 percent less expensive. Meanwhile used cars in Jackson, Miss., are 9 percent more expensive than the national average, a difference of 15.6 percentage points. The study highlights the extent to which local market conditions inform prices on used cars. For this study, CarGurus aggregated local Instant Market Value data on millions of used cars listed for sale, and ranked the largest metro areas in the contiguous United States according to how prices in that market compare to the nationwide average.
Take the betting out of bidding To learn more, turn to the back cover or visit auctiongenius.com/go/genius
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USED CAR NEWS
Automotive Finance Remains Robust But Sane By Ted Craig
Auto finance continues to perform extremely well. Melina Zabritiski of Experian laid this out at the recent American Financial Services Association vehicle conference. Thirty-day delinquencies reached 2.72 percent for auto finance in the fourth quarter, the lowest since 2006. Repossessions are below the 2006 level. Charge-offs rose to an average of $7,277 in 2012, up from $6,815, but well below the $10,000 average at the height of the recession. More consumers are financing vehicles, with 52.2 percent of vehicles having a lienholder, the highest level in the past six years. Zabritiski said that is because other sources of funding are no longer available, especially home equity loans. Rates for non-prime financing on used vehicles remains around 13 percent. It has dropped to 8.18 percent on the new side, down from 10 percent in 2008. The rate for prime usedcar consumers is more improved, falling to 4.84 percent from around 7 percent in 2008. More consumers are getting financed. The average
credit score for a used-car buyer is now 663, about the same as before the recession. It is 756 for a new-car buyer, slightly above the 749 average in 2007. Finance companies started expanding to used-car buyers below 660 in 2012, Zabritiski said. This means some buy-here, pay-here dealers are starting to compete with creditors. However, it seems unlikely that finance companies will go as deep as they did in 2007. A poll of AFSA attendees found only a third planned on pursuing deep subprime consumers. One area of concern is the length of terms. Almost half of used-car finance contracts now exceed 60 months. On the new side, it is more than half. At the same time, the average length of ownership is declining. It is now 66.2 months for new cars and 46.8 months for used cars. Experian Automotive’s fourth-quarter found that 60-day delinquencies rose from 0.72 percent in the fourth quarter of 2011 to 0.74 percent in the fourth quarter of 2012. It was the first time since the fourth quarter 2009 that either 30- or 60-day loan delinquencies experienced a year-over-year rise.
Thirty-day delinquencies showed a slight decline, dropping to 2.72 percent from 2.79 percent in the fourth quarter of 2011. Banks, captives and
credit unions all saw slight drops in 30-day delinquencies. Finance companies, typically lenders for creditchallenged customers, saw their 30-day delinquencies
Loan Payments - average new payment $490 $480 $470 $460
ated a meeting of two dozen wholesalers to discuss options to replace HB 2372. He said the association appreciates the state’s concerns over the illegitimate use of wholesaler plates. But the proposed legislation would hurt wholesalers who haven’t done anything wrong. “The main reason we’re involved is many wholesalers are our members,” Strickstein said. “We’re trying to support our members.” Warkentin said even though it wouldn’t affect regular dealer tags, it would affect independent dealers indirectly since many use wholesalers to purchase and sell inventory. Both Strickstein and Warkentin said the association has a great relationship with the DOT, so they are
Source: Experian Automotive
Loan Payments - average used payment $380 $370 $360 $350
hoping a compromise solution can be worked out. The association is making suggestions that would require stricter requirements for those seeking whole-
$345 Super prime
Source: Experian Automotive
Arizona Wholesale Dealer Tag Owners of more expensive highline vehicles, for example, are using a loophole to avoid registration costs that could be as much as $17,000 on a $300,000 vehicle, Warkentin said. Some of these owners are obtaining wholesaler’s licenses that allow them to use dealer tags to avoid traditional registrations. Warkentin said it’s actually cheaper for them to become wholesalers than paying the registration fees. But the result of the proposed legislative change will punish wholesalers. “We understand DOT’s frustration but are wondering why they would want to hurt the legitimate wholesale dealers,” he said. Arizona IADA President Aubrey Strickstein, owner of Right Choice Automotive in Phoenix, said he moder-
rise to 5.61 percent from 5.35 percent in the fourth quarter of 2011. The total balance of 60-day delinquent loans grew to $3.93 billion from $3.48 billion in the quarter.
– Continued from page 1
saler plates, a change that would weed out those who are not true wholesalers but are taking advantage of the loophole. Strickstein said the sched-
uled meeting with the DOT would also allow the Arizona IADA to bring up some other concerns, such as the ongoing curbstoning problem.
Shoppers Talk Online Before Buying People in the U.S. talk about their auto purchases 30,000 times a day on social media, most frequently during the consideration phase of buying a car, according to a new study commissioned by Starcom MediaVest Group and led by Big Fuel. The study also found that if a car is not part of the social conversation during consideration phase, it rarely gets purchased. The research identified significant real-time marketing opportunities for automakers, verifying that social media, including check-ins and photo sharing have an overwhelming influence over consumer auto purchase decisions. The result: social media has established a new
Automotive Purchasing Model, consumer behaviors and opportunities critical to driving auto sales. The study that used advanced social listening and conversation segmentation to analyze more than 10 million automotive conversations over a 12-month period. Data was collected from social media platforms. Study findings showed social media has dramatically altered the auto purchase journey. The journey now includes an expanded “purchase” phase that reflects the rise of social check-ins and status updates via mobile devices and a new “post purchase satisfaction and dissatisfaction” stage.
2/25/13 4:49 PM
Â Ă›Ă›Ă?Ă›Ă›Ă›March 4, 2013
USED CAR NEWS
NEWS BRIEFS Consultant Launches Value Guide
Leedom Group announced it will debut its â€œBHPH Gold Book,â€? a national vehicle valuation guidebook designed to provide dealers and consumers with real-world retail values for vehicles typically associated with the buy-here, pay-here marketplace. The launch of the BHPH Gold Book is scheduled for April 9, during the BHPH 2013 World Convention in Las Vegas. Leedom Group expects to initially gather data on between 300,000 and 500,000 transactions per year. An alpha test of the Leedom Gold Book data is currently being conducted in Florida. A beta test is scheduled for early spring with a California launch to follow soon after.
White River Sells Itself to PE Firm
Parthenon Capital Partners, a Boston and San Francisco based private equity firm and White River Capital, Inc. announced the closing of the transaction in which an affiliate of Parthenon will acquire White River and its wholly-owned subsidiary Coastal Credit L.L.C. in a merger transaction between the Parthenon affiliate and White River. One of Parthenonâ€™s largest limited partners, OPTrust, will also invest in the transaction. Proceeds from the transaction
will be used to provide liquidity to White Riverâ€™s shareholders who held shares at the effective time of the merger. At a special meeting of shareholders held on Feb. 11, White Riverâ€™s shareholders voted to approve the merger, the merger agreement for the transactions, and all transactions contemplated by the merger agreement. Coastal Credit is led by president and CEO Bill McKnight, who developed the company into one of the leading sub-prime auto finance businesses serving both the military and civilian markets in the U.S.
Carfax Database Exceeds 11 Billion Records
Carfax announced its industryleading database of vehicle history information now exceeds 11 billion records. In addition, the database comprises information from more than 75,000 sources, such as U.S. and Canadian motor vehicle departments, service and repair facilities, insurC R O S S WO R D by Myles Mellor
ance companies and police departments. The Carfax database is located in Columbia, Mo., where the company was founded in 1986.
Auction Edge Tests Tool
Auction Edge launched a beta program of its mobile check-in application. Mobile check-in allows auction staff to accurately and efficiently check-in vehicles using their mobile device of choice, supporting both iOS and Android phones and tablets. Auction Edgeâ€™s mobile check-in application allows customers to use their preferred mobile device to
immediately record vehicle details and de-code VIN numbers by scanning the barcode. It also enables auction staff to take photos of a vehicle using their deviceâ€™s built-in camera. All of the functions in the mobile check-in application are fully integrated with ASI technology in order to provide customers with a robust technology solution. The mobile check-in application works over both a wi-fi network and the cell data network allowing for greater flexibility of use. Customers interested in joining the limited beta program can email: firstname.lastname@example.org
Published By General Media LLC USED CAR NEWS (ISSN 1555-7413) is published at 24114 Harper, St. Clair Shores, MI 48080 Phone: 586-772-5200 or 800-794-0760 Fax: 586-772-9400 www.usedcarnews.com Charles M. Thomas Founder (1947-2002) Lynda R. Thomas, Publisher Colleen Fitzgerald, General Manager Editorial: Ted Craig, Managing Editor Jeffrey Bellant, Staff Writer Contributing Writers: Emily Caswell, Sheila McGrath, Jenny KIng Columnist: Tony Moorby Advertising: Shannon Colby, Account Manager Megan Frump, Account Manager Marie Hingst, Account Manager Circulation: Helen Thomas Production: Josie Godlewski, Media Manager Tim Montie, Graphic Designer â€”â€”â€”
Used Car News is published the first and third Monday of each month. Subscribers: We print advertisements as sent to us by auctions and other advertisers. It is not possible to verify the correctness of listed vehicles in auction ads. Most lists are partial and all lists are subject to last minute changes by auto auctions, so before travelling a long distance for a particular auto auction event, contact the auction by telephone for a fax of vehicles in the sale. Used Car News assumes no guarantees or liabilities concerning the accuracy of any advertisements. All Rights Reserved. Reproduction in any form is prohibited without the written consent of the publisher. É&#x; É&#x; É&#x; Please submit clear, legible copy. Payments from first time advertisers must accompany the insertion order. Distribution is guaranteed by U.S. Postal Carriers. The advertising reservation deadline is 5:00 p.m. Friday, 10 days prior to the issue date. Camera ready ads must be received by noon on Monday prior to the issue date.
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March 4, 2013 t5
USED CAR NEWS
Bill May Help Avoid Lawsuits By Jeffrey Bellant
A bill requiring customers to make written complaints to a dealership before taking legal action will likely come before the Florida legislature. Ted L. Smith, president of the Florida Automobile Dealers Association, said the state’s House Judiciary Committee passed HB 55 by an 11-2 vote on Feb. 21. At press time, Smith anticipated that a Senate version would also receive approval from that body’s judiciary committee. The bill requires consumers to send a dealer a written complaint, describing the facts of the claim and the amount and/or estimated cost of the damages/problem, along with the name, address and phone number of the consumer. The letter must be sent to the dealer with return receipt requested. The bill would allow the dealer 30 days to respond to the complaint and make it right with the customer. If the dealer refuses to respond, or the customer is still unsatisfied, the customer would then be able to take civil action after the 30-day period. Smith said since the bill still allows customers to take an issue to court if they are unsatisfied, it doesn’t take those rights away as consumer advocates have alleged.
Dealers who want to make a situation right would be able to fix a problem before there is a legal action. Of course, if dealers feel that the customer’s claims or damage estimates are unwarranted, the dealer can take his issue to court, as well. If a consumer takes a dealer to court after that 30 days, and complies with the requirements of the bill, the winner of the case can collect attorneys’ fees from the losing party, Smith said. The Florida Consumer Action Network, a consumer advocacy group, has complained on its website that the bill creates a special right for dealers that other businesses don’t receive. But Smith said the bill simply allows dealers to fix a problem without having a legal fight, though it still leaves the customer with the option if the customer remains dissatisfied. The Florida legislature was schedule to convene on March 1. Lisette Mariner, executive director of the Florida Independent Automobile Dealers Association, said the Florida ADA was taking the lead on the issue. But the independent dealer association also supports the legislation, Mariner said.
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6 tMarch 4, 2013
USED CAR NEWS
Weather Report Affects Sales By Ted Craig
Weather affects what people buy and whether they buy a vehicle, even among professionals. A recent paper by a group of economists confirmed the idea that projection bias plays a part in what consumers purchase. That is the Ricky concept that people make Beggs purchase decisions based on how much they assume they will use the item being bought For example, convertibles sell best in April, but they also sell well during a warm spell in November. A 20-degree temperature increase during the week boosts the price of a used convertible by an average of $79.60, the paper states. Of course, if it gets too hot, nobody buys anything. They stay inside. Psychologist John Grohol, founder of PsychCentral.com, said hot days are bad for sales.
Days with high humidity are especially bad because people find it hard to concentrate and put off decisions. “Weather has a pretty big impact on people’s mood and ability to make decisions,” Grohol said. The best days are often ones that are cloudy or overcast, he said. “It’s not what you’d expect from conventional wisdom,” Grohol said. Dealer should understand the effect of weather on buying patterns because they are subject to it themselves. Black Book editor Ricky Beggs said the value guide always asks about the weather when putting together its reports. Beggs said an especially brutal cold snap in late January seemed to have a large impact on sales volumes. The weather factor goes beyond the willingness of dealers to shiver in the lanes. Snow or rain also prevent accurate assessments of vehicles. Auction executives usually see a spike in post-sale inspections on snowy or rainy days. New ways of buying and selling cars may make weather less of a factor. After all, it’s always perfect weather online.
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USED CAR NEWS
Cars Grow More Dependable “ TO SURVIVE IN THIS BUSINESS TODAY, YOU NEED TO DEPEND ON SOMEONE TO PUT SOME SANITY IN AN INSANE WORLD. ALLY DOES JUST THAT.” Ed Barlow Dealer Principal, Barlow Automotive Group
The long-term dependability of three-year-old models has improved year-over-year, according to the J.D. Power and Associates 2013 U.S. Vehicle Dependability Study. The study, now in its 24th year, measures problems experienced during the past 12 months by original owners of three-year-old vehicles (those that were introduced for the 2010 model year). Overall dependability is determined by the number of problems experienced per 100 vehicles (PP100), with a lower score reflecting higher quality.
“The continuous improvement in long-term dependability means consumers should have more confidence in three-year-old vehicles, whether they are keeping their current vehicle or shopping for a used car, truck, crossover or SUV,” said David Sargent, J.D. Power’s vice president of global automotive. “This means there are a lot of dependable off-lease vehicles in the used-vehicle market. “It also means that owners who keep their vehicle beyond the manufacturer’s warranty period are able Continued on page 10
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PAGE 8 - NAAA/CAR CONFERENCE
Manheim Sees Strong Used Car Market Ahead dgddd
Virtually all segments of the U.S. automotive industry achieved stellar results in 2012 and the prospects for a bright 2013 look equally good, despite the sluggish overall economy, said Manheim Chief Economist Tom Webb in Manheimâ€™s 2013
â€œDespite some tough conditions, the automotive industry continued its steady climb after difficult years in 2008 through 2010,â€? said Manheim President Sandy Schwartz. â€œNo segment of the industry showed greater resilience than the used car
â€œDespite some tough conditions, the automotive industry continued its steady climb...â€? Sandy Schwartz Used Car Market Report (UCMR). The 18th annual UCMR includes in-depth looks at industry segments including dealers, rental, leasing, repossessions, fleets and salvage. The report, which was released during recent the National Automobile Dealers Association (NADA) convention in Orlando, also includes Q&As with NADA and NIADA leaders.
market. In this yearâ€™s edition of the UCMR, we offer insights about the used car industry and the many ways that remarketing continues to become more efficient and responsive to the needs of buyers and sellers in an ever-evolving marketplace.â€? The report showed new car sales reaching 14.5 million units in 2012, one million units more than the consensus forecast for the
year. Used vehicle sales came in at 40.5 million, with dealer retail sales increasing 5 percent for the year. Wholesale auction volumes remained stable in 2012, with between 7.5 and 7.7 million units sold. Volumes are expected to increase by 5 percent to around 7.9 million units in 2013. Manheimâ€™s Used Vehicle Value Index indicated that while wholesale prices softened for the first time in three years, they remained at historically high levels. New units sold per dealership and certified preowned vehicle sales both reached all-time highs. tThe percentage of auction volume accounted for by dealer consignment vehicles reached a record share of 57 percent. Total rental industry revenues reached a record $23.6 billion in 2012, up 4 percent from 2011, while wholesale pricing for rental risk units sold at auction remained exceptionally strong.
New lease originations increased 16 percent to 2.5 million; meanwhile, offlease returns hit a cyclical low of 1.5 million. Repossession volumes
were virtually unchanged in 2012, but will likely grow over the next few years due to the recent growth in originations and the easing of lending standards.
KAR Reports Results KAR Auction Services, Inc. reported revenue of $493.7 million in the fourth quarter as compared with revenue of $479.8 million for the fourth quarter of 2011. KAR is the parent company for ADESA, Automotive Finance Corp., Insurance Auto Auctions and PAR North America. Adjusted earnings for the quarter increased to $119.9 million, as compared with $112.1 million for the fourthquarter of 2011. Net income for the fourth quarter of 2012 increased to $22.9 million, as compared with net income of $14.5 million in the fourth quarter
of 2011. For the year, KAR reported revenue of $1.96 billion as compared with revenue of $1.89 billion for 2011. In the fourth quarter, IAA incurred a non-recurring pre-tax net loss of $9.1 million related to the processing of Hurricane Sandy vehicles. Adjusted earnings for the year increased to $500.2 million as compared with $487.2 million for 2011. Net income for the year increased to $92 million, as compared with net income of $72.2 million for 2011. KAR expects 2013 adjusted earnings of $535 million to $540 million.
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Jim Arrigo Owner President, Arrigo Automotive Group
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USED CAR NEWS
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to have greater peace of mind that vehicles are becoming increasingly more dependable.â€? In 2013, the dependability of models that were new or substantially redesigned for the 2010 model year averages 116 PP100, compared with 133 PP100 for models that were unchanged from the 2009 model-year - also referred to as carryover models. This is the first year that there are fewer reported problems for allnew or redesigned models than for carryover models since the study was redesigned in 2009. Models that were refreshed in 2010 - those with generally minor changes to the interior or exterior average 111 PP100 in the 2013 VDS. In 2013, overall vehicle dependability averages 126 PP100 - a five percent improvement from the 2012 average of 132 PP100 - and is the lowest problem count since the inception of the study in 1989. Among brands measured in the study, 21 of the 31 improve in dependability from 2012. Domestic nameplates have improved in 2013 at a slightly greater rate than have imports, narrowing the dependability gap to 10 PP100 from 13 PP100 in 2012 and 18 PP100 in 2011. Overall, domestic nameplates
average 133 PP100. Lexus ranks highest in vehicle dependability among all nameplates for a second consecutive year. Among models, the Lexus RX has the fewest reported problems in the industry at just 57 PP100. This is the first time in the history of the VDS that a crossover or SUV has achieved this distinction. Rounding out the five highestranked nameplates are Porsche, Lincoln, Toyota and MercedesBenz. Chrysler Group LLCâ€™s Ram brand posts the greatest year-overyear improvement from 2012 â€“ by 52 PP100. Toyota Motor Corp. continues to perform well in long-term dependability and earns seven segment awards - more than any other automaker in 2013 - for the Lexus ES 350; Lexus RX; Scion xB; Scion xD; Toyota Prius; Toyota Sienna; and Toyota RAV4. General Motors received four segment awards for the Buick Lucerne; Chevrolet Camaro; Chevrolet Tahoe; and GMC Sierra HD. American Honda Motor Corp., Inc., received two model-level awards for the Acura RDX and Honda Crosstour. The Audi A6, Ford Ranger, Hyundai Sonata, Mazda MX-5 Miata, and Nissan Z also received awards.
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USED CAR NEWS
GM Financial Income Dips General Motors Financial Co. announced net income of $91 million for the quarter ended Dec. 31, compared to $104 million for the quarter ended Dec. 31, 2011. Net income for the year was $463 million, compared to $386 million for the year ended Dec. 31, 2011. Net income for the quarter and year ended Dec. 31, 2012 was impacted by $20.4 million in pre-tax expenses related to the pending acquisition of Ally Financial Inc.â€™s international operations. Consumer loan originations were $1.2 billion for the quarter ended
Dec. 31, compared to $1.5 billion for the quarter ended Sept. 30, 2012, and $1.2 billion for the quarter ended Dec. 31, 2011. Consumer loan originations for the year ended Dec. 31 were $5.6 billion, compared to $5.1 billion for the year ended Dec. 31, 2011. The outstanding balance of consumer finance receivables totaled $11 billion. Lease originations of General Motors Co. vehicles were $265 million for the quarter ended Dec. 31, compared to $299 million for the quarter ended Sept. 30 and $314 million for the latest quarter.
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USED CAR NEWS
Dealer Caught in ID Scam The Missouri attorney general and Jackson County prosecuting attorney have filed 17 felony charges against a used-car dealer for a yearlong identity-theft scam, which spanned two states and involved more than $1 million in fraudulent car loans. The case appears to be the largest identitytheft prosecution ever brought by state prosecutors in Missouri. The complex identity-theft scam arose out of the operation of Edge Auto Sales, a Blue Springs and Independence auto dealership owned by Terry Lee Morrow Jr. Morrow acquired sensitive personal information about his victims through Edge Auto’s car sales and through online applications for auto financing. Morrow allegedly used the victims’ information to forge dozens of fraudulent auto loans for car sales that actually never occurred. Authorities allege that Morrow then sold each of these fraudulent loans to automotive finance companies, who bought the rights to collect on the loan for a lump sum payment to Morrow. The Missouri attorney general’s investigation of Morrow stemmed from a tip from a consumer who had discovered the fake car loan on her credit report. Before the investigation began in 2012, Morrow
had already fled from Missouri to Illinois, where he created another dealership, Silver Star Motors. Through this new dealership, Morrow reused identities of his Jackson County victims in addition to selecting new victims in Illinois to recreate his scheme. An Illinois consumer checking his credit report also discovered a fraudulent car loan and alerted authorities. Local police arrested Morrow as he attempted to flee Illinois. The Missouri AG’s office has already discovered approximately $1,036,522 of fraudulent loans, which Morrow sold to four automobile-finance companies for more than $470,000 in cash. The AG’s office has identified 44 Missouri consumers whose information was used to create scam loans and believes there may be more victims. In addition to Morrow’s operations at Edge Auto, the attorney general’s office has discovered that Morrow allegedly fabricated the existence of a sham dealership in Kansas City, forging documents so that it appeared to be owned and operated by one of his Edge Auto victims. Morrow also created fake loans through this fictitious dealership.
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USED CAR NEWS
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Hacker Hijacks Jeepâ€™s Tweets DETROIT (AP) â€“ Someone hacked their way into Jeepâ€™s Twitter account on Feb. 19, posting fake tweets about the brand being sold to Cadillac and that it was suspending factory production. The move was similar to an incident involving the Burger King restaurant chain on Feb. 18. A spokesman for Chrysler Group LLC, which owns Jeep, said he had no idea if the two cases were linked, although he said the visuals looked similar. Messages left with Twitter spokeswomen were not immediately returned.
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because employees had been caught â€œdoing this.â€™â€™ Accompanying the tweet was a photo of a man holding a bottle of pills. Later, the hackers tweeted that Jeep production had been halted. The false tweets took place for a little under an hour before Chryslerâ€™s social media agency was able to regain control of the account with help from Twitter, Chrysler spokesman Ed Garsten said. The false messages were deleted from the account around 3 p.m. The agency, Ignite Social Media of Birmingham, Mich., near Detroit, spotted the misdeeds quickly and worked to wrest the account back from the hackers, Garsten said. He said he has no idea who hacked into the account, and he thought Chrysler would take steps to guard against future attacks. â€œI can only imagine that theyâ€™re taking a look at it,â€™â€™ he said. Jeep normally uses Twitter to promote its vehicles and parts, or to spotlight its customers. Garsten said he didnâ€™t think the incident hurt the Jeep brand because most people realized it was a hacking incident. The hackers were successful in making Jeepâ€™s tweets more popular. â€œI guess I see that Jeep was trending during that time,â€™â€™ he said.
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20 tMarch 4, 2013
USED CAR NEWS
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Axel and brake issues caused recalls for popular trucks and SUVs. Chrysler is recalling certain model year 2009-2012 Ram 1500 trucks manufactured from Feb. 27, 2008, through June 30, 2009, and from Dec. 1, 2009, through Oct. 20, 2011; model year 2009-2011 Dodge Dakota trucks manufactured from Feb. 27, 2007, through June 30, 2009, and from Dec. 1, 2009, through Sept. 30, 2011; model year 2009 Chrysler Aspen trucks manufactured from Jan. 3, 2008, through Dec. 18, 2008; and model year 2009 Dodge Durango trucks manufactured from Jan. 3, 2008, through Dec. 18, 2008.
The rear axle pinion nut may loosen due to an omission of an adhesive patch. If the rear axle pinion nut loosens, the axle can lock up and cause a loss of vehicle control and/or a vehicle crash with little warning. BMW is recalling certain model year 2007-2010 X5 SAV vehicles, manufactured Sept. 12, 2006, through March 18, 2010 and equipped with an 8-cylinder engine. The brake vacuum pump may leak a small amount of lubricating oil into the hose. Continued on next page
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USED CAR NEWS
â€“ Continued from prior page
The contamination could result in a loss of power assist braking. The loss of power assist in braking could increase stopping distance and lead to a vehicle crash. BMW is also recalling certain model year 2008-2012 1-Series coupes and convertibles manufactured December 2007 through July 2011; and 2007-2011 3-Series coupes and convertibles manufactured March 2007 through July 2011; 2007-2011 3-Series sedans manufactured March 2007 through October 2011; 2007-2011 3-Series sports wagons manufactured March 2007
through June 2011; and 2009-2011 Z4 vehicles manufactured March 2009 through June 2011. The connector for the positive battery cable connector and the corresponding terminal on the fuse box may degrade over time. Over time, the high current flow and heat from electrical resistance may lead to a breakage of the connection, and a loss of electrical power to the vehicle. If there is a loss of electrical power to the vehicle, the vehicle may unexpectedly stall, increasing the risk of a crash.
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The tradename â€œSubaru Motors Financeâ€? and the Subaru logo are owned/licensed by Subaru of America, Inc. and are licensed to Chase Bank USA, N.A. (â€?Chase USAâ€?) and JPMorgan Chase Bank, N.A. (â€œChaseâ€?). 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. (â€œChaseâ€?) 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 â€œMazda Capital Servicesâ€? as well as the Mazda and Mazda Capital Services logos are owned by Mazda Motor Corporation or its affiliates and are licensed to JPMorgan Chase Bank, N.A. (â€œChaseâ€?). Retail / Loan and lease accounts are owned by Chase.
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22 tMarch 4, 2013
USED CAR NEWS
Ally Leads in Auto Finance
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Ally Financial continues to lead all creditors in auto finance, but one ratings firm worries about the bank’s exposure to non-automotive business. For the second year in a row, Ally Financial ranked number one in financing consumer auto sales in the U.S., according to AutoCount by Experian Automotive. The company financed nearly 1.5 million new and used vehicles through franchised and independent dealers last year. Used vehicle financing and leasing comprised 46 percent of Ally’s auto contract originations in 2012, up from 14 percent three years ago, reflecting the company’s commitment to broaden its business in support of the industry. “We help dealers of multiple brands sell more cars and trucks,” said Ally president Bill Muir. “We do that by providing expertise on the ground and at the underwriting desk. As the economy continues to improve, Ally will be well positioned to support the expected steady increase in financed auto sales.” Experian Automotive reports Department of Motor Vehicles registration information from 46 states. Four states do not report the financing source: Wyoming, Delaware,
Rhode Island and Oklahoma. Despite the continued success in auto finance, Fitch Ratings has maintained the Rating Watch Negative on Ally Financial Inc. The ratings were first placed on Rating Watch Negative on May 15; following the bankruptcy filing by Ally’s wholly owned subsidiary Residential Capital LLC (ResCap). The Rating Watch Negative was maintained on Nov. 9. Fitch is required by its policy to review Rating Watch every three months until the Rating Watch is resolved. Fitch has also affirmed and withdrawn various other ratings of Ally and its subsidiaries. Maintenance of the Negative Watch reflects continued uncertainties related to the resolution of the ResCap bankruptcy, including approval of Ally’s settlement plan with ResCap, which releases Ally from existing and potential claims from ResCap and third-party creditors, potential litigation from third-party creditors who have challenged such a release, findings from the independent investigator appointed by the court to examine the separation between Ally and ResCap, and the repayment of Ally’s secured financing to ResCap. Fitch expects the get more clarity on some these issues in Continued on next page
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March 4, 2013 t23
USED CAR NEWS
– Continued from prior page
the coming months and will accordingly take action on Ally’s ratings. Fitch’s report stated that the agency recognizes the positive strides that the company has made in regard to funding, liquidity, capital and core operating performance. The resolution of the Rating Watch will be driven by the ultimate outcome of ResCap’s bankruptcy and any potential impact on Ally’s financial and credit profile. Unfavorable developments related to Ally’s settlement plan with ResCap, the independent examiners report, and potential litiga-
tion against Ally, which could lead to further material contributions from Ally to ResCap, could lead to a downgrade. Positive rating momentum, although limited until ResCap’s resolution, would be driven by sustained profitability in Ally’s U.S. auto business, Fitch stated. The agency also sees potential for upside in the expansion of the banking franchise along with growth in the bank’s deposit funding base, and repayment of U.S. Treasury’s investment, while maintaining a conservative capital and liquidity posture.
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2/19/13 3:44 PM
2/25/13 3:00 PM
24 tMarch 4, 2013
USED CAR NEWS
PEOPLE IN THE NEWS AASC Names CEO
Mike Broe has been appointed to the position of president and CEO of Auto Auction Services Corp. Broe will serve in an interim capacity and will work directly with AASC’s Board of Directors to make decisions regarding the long term leadership of the organization. Broe is also a candidate for the organization’s permanent position. Broe’s experience includes 23 years in auction management, both on the ground at auction facilities and in corporate leadership positions. In their unanimous decision to appoint Broe, the board cited his extensive network of connections in the industry, his proven leadership skills, and the objectivity he has demonstrated over the years, specifically while serving on the board of the National Auto Auction Association (NAAA).
Firm Hires Spokesman
D.J. Harrington was named spokesman for DamageMAX. Harrington will represent DamageMAX at industry events, in advertising campaigns and on the Internet. DamageMAX is a buyer of damaged vehicles. DamageMAX’s website, DamageMAX.com, helps automobile own-
ers make informed decisions about Auction Vet Earns Post their damaged vehicle. DAA Northwest’s Mike Mikkelsen Harrington is CEO of Phone Logic has assumed the role of national Inc., an international training com- accounts director for the McConkey pany based in Atlanta. Auction Group. The group includes ServNet member auctions DAA Group Appoints Counsel Northwest, KCI Kansas City and The National Vehicle Leasing As- EPI El Paso. sociation (NVLA) announced the Mikkelsen has a long history in appointment of Mike North as the wholesale remarketing industry. accounting counsel. He began his career at South Seattle North is a director with the Auto Auction in 1980, and has been accounting firm of Katz, Sapper with DAA Northwest since its doors & Miller. He supervises audits, opened in 1992. reviews financial statements, and TPC Management will provide prepares tax returns for both car support for Mikkelsen as he managdealerships and finance and leasing es national accounts for DAA Northcompanies. west, KCI Kansas City and EPI In addition he is involved in El Paso. advising clients in tax, accounting, reporting, compliance, and internal Curtis Takes Academy Reins control matters and serves on the With industry participation firm’s dealership services groups. exceeding expectations, Auction North will make his first Academy begins its second year appearance as accounting counsel announcing that Richard Curtis will at the upcoming NVLA Confer- serve as its president. ence, April 22-24, at the Renaissance The announcement was made by Worthington Hotel in Fort Worth, Pierre Pons, President/CEO of TPC Texas. Management Company, which deHe will provide an update on both veloped Auction Academy, a profesfinancial reporting and tax issues sional education program for the impacting the leasing industry. auto auction industry. The session will include pending Curtis will work closely on the regulatory changes involving leas- program curriculum and admines, financial reporting, and recent istration with Auction Academy’s federal income tax changes. COO Randall McCathren.
“Over that past year I have been able to see Auction Academy grow from an idea to a reality and can confirm that the groundwork is in place for an even more robust program moving forward,” Curis said. In assuming duties as Auction Academy’s president, Curtis will be based at TPC Management’s headquarters in Franklin, Tenn., said Pons. Curtis has served as a partner in TPC Management, a role he will also continue, and previously working out of the Seattle area. An industry specialist in vehicle remarketing and distribution, Curtis has spent more than 30 years in the automotive industry, working with auto auctions, auto finance companies, insurance companies, investment firms, vehicle manufacturers, corporate fleets, commercial lessors, third party servicers, and e-commerce concerns. “It is s a privilege for me to work with someone of Richard Curtis’ caliber, as well as a tremendous benefit for Auction Academy itself,” said COO Randall McCathren. “The strong relationships he has nurtured over the years coupled with his understanding of the various facets of automotive remarketing will help us build Auction Academy as well as to broaden the training it provides.”
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2/22/13 2:59 PM
March 4, 2013 t25
USED CAR NEWS
RETAIL MARKETS COLORADO
Lloyd Donnelly, president/general manager, King Credit Auto Sales, Thornton, Colo.: “King Credit has been around 30-plus years. I’ve owned the business for the last 17 years. “We have one location. “We keep somewhere between 50 and 75 units on the lot. That’s similar to this time last year. “Most of our cars are dealer trades. I have a couple of buyers that go to auction, too. “We have a couple of good dealership relationships that we’ve been able to maintain. “We sell, on average, between 30 and 40 units per month. That’s the same as last year. “In 17 years of doing business, the last couple of years have been the hardest as far as getting inventory. I’m sure (others have said it). “Inventory is the key. We used to keep between 125 and 175 cars on the lot at all times. Then we’d sell between 70 and 80 units.
“Our main business is buy-here, pay-here. But over the years, we discovered that if we want to compete in this market, we have to do everything. “So we maintain our buyhere, pay-here. We’ve got about 250 customers (on the books). “But we can do anything from brokering a new car or selling to a regular credit union customer, to a special finance and buy-here, pay-here customer. “We have something for everybody. “Buy-here, pay-here is about 60 percent of our business. Special finance is about 30 percent and regular straight bank finance is about 10 percent. “We have cars on our lot from 2012 all the way down to 1990. “But we try to stay with vehicles that are 10 years and newer. (Our average modelyear-range) is probably 1998 to 2004 models. “I couldn’t tell you the average mileage on the lot, but it’s probably over 100,000.
Compiled by Jeffrey Bellant “It used to be, when you had 100,000 miles on your vehicle, you threw the car away. “My inventory is about 70 percent cars and 30 percent trucks and SUVs. “Inventory is about 50/50 between domestics and imports. We don’t (discriminate). We get what we can get. “We have a reconditioning facilities for safety inspections and emissions, but we don’t do any regular service (after the sale). “Average reconditioning costs is about $700. That’s about the same as last year, but over the past five years it has doubled. “We have a website and have some dealer specials that go out on AutoTrader. com and Cars.com. “We also use local magazines. No radio or television. “Recently we sold a 1997 Ford Explorer. “We sold it for $4,488 plus tax. It had 125,000 miles. “I could sell 50 a month (Ford Explorers) if I had them.”
Chuck Rogers, owner, Chuck Rogers Auto Sales, Tekamah, Neb.: “I’ve got one location. I’ve been in business for more than 11 years. “I keep about 25 to 30 units on the lot. I had been up, but that’s about the same as this time last year. “Business has been good lately, but I usually will sell eight to 10 a month. I attribute the boost to a (promotion) including a service contract on everything and some extra advertising. Plus we’ve had some nicer weather for a few days. “I get vehicles from Manheim Omaha auction. I also get some vehicles online through GM SmartAuction, Manheim and ADESA. “The average retail price is about $10,000 to $12,000. The average model year is 2007 to 2008. “I’ve got a little bit of everything. I’ve got some older cars with 150,000 miles and I’ve got some newer ones with 20,000 miles.
“My inventory is probably made up of one-third trucks, one-third cars and the rest are vans and crossover vehicles. “That’s pretty much been the same as last year, though I’m a little low on trucks right now. It’s just about finding the right truck at the right price. “I’m probably carrying 90 percent domestic vehicles. “I farm out my reconditioning and service work. “The average recon cost is probably $300 to $400 per vehicle. That has been pretty steady. “For marketing and advertising, I have a website. I also use a local shopper, Midwest Messenger. I also use the local paper, the Burt County Plaindealer. “I use Craigslist. It helps. It refers (customers) to your website, so that’s good. “I recently sold a 2006 Chevrolet extended cab four-wheel drive for $14,995. That had 88,000 miles.” “I think 2013 looks like it will be a pretty good year.”
2/25/13 12:14 PM
WHOLESALE MARKETS MISSOURI
Scott Wall, president/ general manager, Missouri Auto Dealers Exchange, St. Joseph, Mo.: “We’re just 30 minutes north of Kansas City International Airport. “We finished our eighth year in business at the end of January. “The auction has three lanes, but we’re running two. We’re prepared for expansion (into the third lane). “Our volumes have probably averaged about 160 units. That’s actually up just a smidge. “Our conversion rates have been phenomenal over the last few weeks, approaching 70 percent. But they’ve, at a minimum, been at a 60 percent conversion rate. “On average, we’re on the plus or minus side of 100 dealers each week. For a two-lane sale, that’s not too bad. “Our dealers are drawn, primarily, from a 100-mile radius. That can include dealers from Omaha and Lincoln, Neb., Des Moines,
Iowa, dealers from Kansas City and others from Topeka, Kan. “The dealers’ moods have been inconsistent. The dealers are concerned that there’s still a shortage of vehicles nationwide. With that shortage comes high prices. “So even though dealers need product, they’re concerned that they cannot get enough (vehicles) and they’re not sure when the tax return (business) is going to come. “However, you can’t sell out of an empty cart. “About 65 to 70 percent of our volume is dealer consignment. “The rest would be lease returns, repossessions and we also just acquired a contract with the GSA. We’ve had one GSA auction. It was strictly online. “But we have more GSA vehicles stored here on the property now, for a future GSA auction. We haven’t got a date yet. “We will have two to four auctions in 2013. “We also do a power sports sale. On May 11, we’ll
Compiled by Jeffrey Bellant have our ‘Big Boys Toys and Power sport’ auction. We’ll have everything, from Wave Runners or boats to a classic collector car or muscle car. It will also include things like RVs, campers, dune buggies, motorcycles and scooters. It will include anything that qualifies under (that category). “We also hold a sale of local government and municipality (offerings). Those are units coming from the municipality of St. Joseph, Mo., and even the Missouri Department of Transportation. I expect to have one sale in late March or early April. We might have two to three of those this year. “These sales can include anything from a four-door sedan to a snow-plow truck, backhoe or dump truck. “For our regular sales, the average price coming across the block is $4,050. That might be a little higher than last year. “Right now, everything is strong. “The only thing that might struggle is a late model vehicle with more than 100,000 miles.”
Rick Lallemont, owner/ general manager, Western Wisconsin Auction, Chippewa Falls, Wis.: “We started the auction in August 2005. “We have a three-lane auction. “Our volume is right about 225 to 250 units. That will increase in the coming month. “We also have a GSA sale. In those months, the highend would be about 400 to 450 units. “We’ll generally run two lanes, then expanding to three for some of our bigger sales. I think the weather has hurt us a little bit (this winter). Our conversion rates have been right around 50 percent. Last year, at least at this time.” “Dealer consignment makes up the bulk of our volume. I think it’s about 80 percent, which is the same compared to last year. “On the (non-dealer) side, the larger percentage of units are coming from bank repossessions, with a smaller percentage coming from lease returns.
“We’ll draw close to 200 dealers in the lanes, though it’s been a little lower due to the weather and the late tax season. “Our dealers are coming from all over. But the bulk of them come from that 100-mile range of our sale. However, we also have people coming from places like Illinois, St. Louis, Texas and even Mexico. “Recently, I think the market has picked up for dealers. “We also have had RV and marine sales. Those are little bit smaller since there’s been a little less money in the market for those units. We’ll have those sales once a month. That’s not a big market for us, so it’s 10 to 15 units per month. “In 2013, we’ll probably sell 600 units through our GSA sale. Typically, those sales start in March. “Those vehicles are a good mix of cars and trucks from different agencies. Mostly, passenger vehicles, but we’ll some other units, too. “It looks like overall we’ll have a strong spring market.”
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2/25/13 12:10 PM
March 4, 2013 t27
USED CAR NEWS HPV UCN AD DUE 2013.02.22.pdf 1 2/22/2013 3:08:41 PM
Compiled By Jeffrey Bellant
‘Legendary’ Sale Fights Diabetes
BIG CHECK: Dan Kennedy (left), manager of remarketing for General Motors, stands with ADESA CEO and President Tom Caruso, presenting a $45,000 check for research on juvenile diabetes.
ADESA Phoenix recently wrapped up its annual Legendary Sales Week, with more than 1,600 dealers participating in the three-day event. Attendees were able to access a diverse selection of inventory during the auction’s regular weekly fleet and consignment sale as well as several special events. In addition to running several high-energy auctions for customers, ADESA Phoenix also hosted a special charity auction of a 2012 Chevy Camaro SS convertible to benefit the Juvenile Diabetes Research Foundation (JDRF). “Legendary Sales Week is truly something to see, with all of the amazing cars, celebrity appearances and special events,” said Tom Caruso, president and CEO of ADESA. “But it was especially rewarding this year to host a charity auction and support JDRF.” Dave Ressler of Ressler Motor Co. had the winning bid on the 2012 Chevy Camaro SS convertible. As a result, JDRF received $45,000 to support its mission and research.
Consignor Increases Offerings
Sanford Auto Dealers Exchange (SADE) and Westlake Remarketing have partnered to offer twicemonthly sales, growing from the monthly sale held last fall. Auction owner Michael Tumminello said the additional sale resulted from the success the auction had with the earlier monthly sale. “Westlake Remarketing has been a tremendous addition to our saleday lineup,” he said. “The announcement that Westlake’s inventory has increased to the point that they will now run twice a month at SADE has created quite a stir among our buying dealers. “We are looking forward to con-
tinued growth throughout the first quarter.” Tumminello said Westlake Financial scheduled two sales in February and March in Lane 6. “Westlake’s sought-after inventory, coupled with its Dealer Loyalty Program, make (it) a high-focus consignor at SADE,” said Tumminello. 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: firstname.lastname@example.org
2/25/13 12:24 PM
ACTUAL WHOLESALE AND PROJECTED RESIDUAL VALUES MARCH 2013
SOURCE: BLACK BOOK
2011 Domestic Cars Buick LaCrosse CX 4D Sedan Cadillac DTS 4D Sedan Chevrolet Cruze LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 Base 4D Sedan Chrysler 200 Touring 4D Sedan Ford Mustang Base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan Ford Focus SE 4D Sedan Import Cars Acura TL Base 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan 2.4 Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Galant ES 4D Sedan Nissan Altima Base 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra Base 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Trucks Cadillac Escalade Base 4D Utility AWD Cadillac SRX Luxury 4D Utility AWD Ford Edge SEL 4D Utility Chevrolet Colorado LT Crew Cab 4WD Z85 Chevrolet Equinox LS 4D Utility FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D Utility 4WD Ram Dakota Bighorn Ext Cab Dodge Grand Caravan Express Wagon Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Flex SEL 4D Utility Jeep Grand Cherokee Laredo 4D Utility 4WD Jeep Wrangler Sahara 2D Utility 4WD BMW X3 XDrive28i 4D SAC
Mar-12 19100 27400 13700 12950 19700 14100 17500 19900 27400 11900 Mar-12 26700 28000 66700 14850 15500 29700 40800 12400 13800 15100 12500 15450 12900 16200 Mar-12 50500 33200 21500 20125 18025 19025 27950 15100 15500 17875 30100 19825 21225 23225 22925 34350
Sep-12 19100 27800 13000 13100 19050 13850 16850 18700 23400 11900 Sep-12 24400 26600 61000 14550 14450 28800 37800 11900 12600 13900 12100 14300 12400 16250 Sep-12 48000 31700 22100 18925 17700 19575 28325 15625 15750 17075 28050 20225 21550 24550 22875 32200
Mar-13 17100 24500 11400 11300 16900 11450 15000 16700 21700 10700 Mar-13 23000 23500 53400 14000 13850 26100 33000 10400 11550 12850 10800 14000 11850 14800 Mar-13 45000 27550 21125 18925 16150 19450 27100 15350 14550 16450 27200 19075 20200 24325 21375 31000
Projected Figures Mar-14 Mar-15 14400 12400 18450 15575 9425 8100 9750 8550 13850 11925 9700 8250 12925 11475 13750 11775 17225 14325 8925 7600 Mar-14 Mar-15 19075 16450 19575 16650 46025 39625 11850 10425 10700 8800 22425 19650 28175 22950 8700 7325 10125 8925 11175 9850 8525 7350 11925 10575 10125 8825 11750 10000 Mar-14 Mar-15 37400 31675 23775 20450 17225 14850 16925 14975 13050 10675 16400 14575 23150 20100 13250 11875 11575 9875 14100 11800 20225 16600 15575 13575 17075 14625 19050 15750 18625 16375 25175 21225
Domestic Cars Buick LaCrosse CX 4D Sedan Cadillac DTS 4D Sedan Chevrolet Cobalt LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 Touring 4D Sedan Chrysler Sebring Touring 4D Sedan Ford Mustang Base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan Ford Focus SE 4D Sedan Import Cars Acura TL Base 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Galant ES 4D Sedan Nissan Altima Base 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra Base 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Trucks Cadillac Escalade Base 4D Utility AWD Cadillac SRX Luxury 4D Utility AWD Ford Edge SEL 4D Utility Chevrolet Colorado LT Crew Cab 4WD Z85 Chevrolet Equinox LS 4D Utility FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D Utility 4WD Dodge Dakota Bighorn Ext Cab Dodge Grand Caravan SE Wagon Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Flex SEL 4D Utility Jeep Grand Cherokee Laredo 4D Utility 4WD Jeep Wrangler Sahara 2D Utility 4WD BMW X3 XDrive30i 4D SAV
2009 Domestic Cars Buick LaCrosse CX 4D Sedan Cadillac DTS 4D Sedan Chevrolet Cobalt LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 Touring 4D Sedan Chrysler Sebring LX 4D Sedan Ford Mustang Base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan Ford Focus SE 4D Sedan Import Cars Acura TL Base 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Galant ES 4D Sedan Nissan Altima Base 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra Base 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Trucks Cadillac Escalade Base 4D Utility AWD Cadillac SRX 4D Utility AWD V6 Ford Edge SEL 4D Utility Chevrolet Colorado LT Crew Cab 4WD Z85 Chevrolet Equinox LS 4D Utility FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D Utility 4WD Dodge Dakota Bighorn Ext Cab Dodge Grand Caravan SE Wagon Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Taurus X SEL 4D Utility FWD Jeep Grand Cherokee Laredo 4D Utility 4WD Jeep Wrangler Sahara 2D Utility 4WD BMW X3 XDrive30i 4D SAV
Mar-12 10800 16500 7200 9750 13550 7600 12700 11850 19050 9050 Mar-12 21400 19900 53600 11950 9800 22100 26600 9300 11200 12000 10200 12650 9750 12250 Mar-12 36150 21500 16050 17675 11675 15825 22625 11925 11000 14150 14725 16000 14000 15100 19625 25850
Mar-12 16450 20100 8750 11550 14300 10450 15100 17300 23500 10350 Mar-12 24300 24000 62600 13350 11450 25700 35800 11100 12300 13600 11200 14000 11250 14000 Mar-12 44050 31000 17850 18525 15000 16875 24850 13500 12975 14800 18050 17900 19375 17675 21475 29600
Sep-12 16350 18800 9400 11700 14200 11650 14500 16100 19600 10500 Sep-12 21600 22500 55000 13100 11000 25000 33600 10700 11200 12500 11000 12650 11000 13600 Sep-12 41050 28500 18450 17500 14700 18475 25075 13525 13550 15050 18175 18075 19100 17275 21050 28000
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 40500 25050 18100 17125 14200 18100 23450 13175 11450 14725 18000 16850 17875 16625 19950 26500
Projected Figures Mar-14 Mar-15 12275 10350 14625 12400 6650 5750 8375 7275 11425 9800 7425 5950 10950 9550 11825 9975 14225 11600 7625 6400 Mar-14 Mar-15 16600 13825 17175 14450 39600 33925 10450 9025 8200 6775 19100 16150 23050 18450 7450 6200 9025 7725 9975 8525 7650 6450 10425 9125 8625 7500 10375 8775 Mar-14 Mar-15 32300 26675 20775 17225 14775 12575 15050 13250 10800 8675 14750 12900 19900 16950 11075 9775 9500 7900 11800 9750 14200 11600 13550 11750 14775 12550 14925 12475 16650 14500 21750 18200
Sep-12 9100 14200 6450 8550 12050 7250 11250 9200 15450 7700 Sep-12 15600 16800 29100 10550 7750 18600 20200 7900 9400 10100 9050 10250 8500 10700 Sep-12 29800 18000 14200 15175 10150 13650 19825 10425 8850 10825 12775 13100 10050 12700 17100 20100
Mar-13 8300 12900 5700 7850 10750 5750 9600 7100 12600 6650 Mar-13 14500 14900 25000 10100 7150 16900 17200 6850 8050 8750 7300 10000 7550 9900 Mar-13 28700 15300 13175 14375 8900 13475 18975 9400 7550 10750 11675 12400 8850 11825 16600 18350
Projected Figures Mar-14 Mar-15 6825 5900 9825 8300 4525 3900 6050 4925 9300 7650 4175 3275 7925 6750 6300 5275 9450 7825 5000 3900 Mar-14 Mar-15 11125 9125 11950 9850 18475 14650 7800 6525 5275 4250 13675 11575 13825 10825 5100 4100 6300 5275 6975 5875 5325 4325 7825 6650 6200 5300 7325 5925 Mar-14 Mar-15 20375 16300 12550 10400 10250 8575 11425 9650 6625 5225 10625 9100 14125 11475 8200 7125 6950 5675 8000 6175 9250 7075 9850 8350 7600 6175 9900 8025 12925 10975 14700 12175
2008 Sep-12 10850 16700 7500 9900 13350 8800 12950 11200 17000 9200 Sep-12 19400 19000 47200 11800 9200 21600 25200 9150 10650 11450 10050 11350 9500 11950 Sep-12 35600 20150 16875 16675 11875 15875 23225 11975 11275 13575 14875 15550 12175 15300 19050 23750
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 36200 17650 15550 15875 11425 15675 22500 11550 9450 13075 14500 15275 11525 14850 18250 22100
Projected Figures Mar-14 Mar-15 8400 7225 12650 10550 5525 4775 7275 6275 10900 9250 5475 4350 9175 7925 7950 6750 11625 9600 6250 5150 Mar-14 Mar-15 14200 11775 14425 12000 33175 27300 9100 7800 6775 5525 16050 13750 18250 14425 6200 5000 7750 6600 8750 7475 6475 5425 9100 7850 7425 6350 8775 7225 Mar-14 Mar-15 27100 21825 15500 12800 12575 10625 13400 11500 8825 6975 12925 11250 17350 14375 9650 8475 8375 7100 10125 8150 11500 9375 11925 10250 9675 8000 12700 10450 14775 12875 17775 14800
Domestic Cars Buick LaCrosse CX 4D Sedan Cadillac DTS 4D Sedan Chevrolet Cobalt LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 Touring 4D Sedan Chrysler Sebring LX 4D Sedan Ford Mustang Base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan Ford Focus SE 4D Sedan Import Cars Acura TL Base 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan Lexus ES 350 4D Sedan Mercedes-Benz E Class E350 4D Sedan Mitsubishi Galant ES 4D Sedan Nissan Altima Base 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra Base 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Trucks Cadillac Escalade Base 4D Utility AWD Cadillac SRX 4D Utility AWD V6 Ford Edge SEL 4D Utility Chevrolet Colorado LT Crew Cab 4WD Z85 Chevrolet Equinox LS 4D Utility FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D Utility 4WD Dodge Dakota SLT Ext Cab Dodge Grand Caravan SE Wagon Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Taurus X SEL 4D Utility FWD Jeep Grand Cherokee Laredo 4D Utility 4WD Jeep Wrangler Sahara 2D Utility 4WD BMW X3 4D SAV 3.0si
Mar-12 9450 14800 6150 8550 12200 6350 11000 9850 17500 7700 Mar-12 16400 17500 31400 10650 8400 18900 21800 7850 10000 10700 9100 11400 8600 11100 Mar-12 31800 19000 14725 15975 10025 14225 20850 10575 9075 11975 12725 13650 10550 13275 17750 21200
2/25/13 12:15 PM
March 4, 2013 t29
USED CAR NEWS
Disconnected Jottings From Tony Moorby... â€œTax moneyâ€? was as slow as molasses on a winterâ€™s day this year. I guess that was thanks to last-minute tax code adjustments at the end of last year and the IRS trying to catch up. So business planning was rendered
it all made sense. But, just like a perfect storm, it didnâ€™t happen like that. Customers were paying for Christmas, the rent, the mortgage or stashing some for a rainy day if no credit card debt was to be paid
Ć€É&#x; Ĺ´Ĺ°Ć?3,É&#x;0.,(É&#x;) É&#x;."É&#x;#(/-.,3 Ć€É&#x; ,-#(.É&#x; ,)'É&#x;ĹąĹšĹšĹˇĆ‘Ĺ˛Ĺ°Ĺ°Ĺ°É&#x;) É&#x;É&#x;É&#x; É&#x; /.)').#0 Ć€É&#x; ,0É&#x;-É&#x;Ć‰-É&#x;2/.#0É&#x;0#É&#x;É&#x; É&#x; *,-#(.É&#x;) É&#x;-&-É&#x;(É&#x;',%.#(! Ć€É&#x; )),3É&#x;Ć É&#x;--)#.-É&#x;Ĺ˛Ĺ°Ĺ°ĹśĆ‘*,-(. Ć€É&#x; 1,É&#x;."É&#x;#(!É&#x;) É&#x;)(),É&#x;3É&#x;É&#x; É&#x; Ć€É&#x; É&#x;&&É&#x;) É&#x;',
all but useless for those who depend on a momentary uptick in their markets and itâ€™s no small thing â€“ cash in the early part of the year can often dictate the pace for the rest of the year. Even Wal-Mart has felt the draft. I know dealers who did what they were supposed to do last October and November and stocked up on cheaper cars to sell at decent profits in January and February. Wholesale floor plan financing was available, so
off â€“ so no retail traffic. The floor plan pay-offs for cars bought last year were now due or curtailments were coming up to extend them and because fewer trades were made at the start of the year, inventory was tough to get from the new car stores to replenish what few had slipped over the curb. That was how the folks in D.C. dealt with the fiscal cliff â€“ leave people and businesses dangling. Next we have sequestration. What is sequestration? Itâ€™s a series of automatic,
across-the-board cuts to government agencies, in this case totaling $1.2 trillion over 10 years â€“ a mere bagatelle compared to the excess of $16 trillion we have in our national debt right now. The cuts would be split half and half between defense and domestic discretionary spending. Ironically, the people most affected would be in areas where the government has a big influence or hires a lot of people. Obviously those close to the seat of power, say Maryland and Northern Virginia as well as those in D.C. itself, would feel the pinch, creating some self-imposed pressure to find jobs. That may be a good thing in the long run. But some less obvious casualties may be affected â€“ New Mexico comes to mind or Colorado, both having close attachments to defense establishments and government-funded infrastructure. It seems that the dole queues will be expensively extended â€“ did they figure the unemployment payments into their math? To sequester means to hide
C R O S S WO R D
away, remove or shield as well as to take out. At least they got the name right. Theyâ€™ll take away the spending with one hand and give a lot of it back with the other and bury the consequences in the next governmentâ€™s backyard. One thing that President Obama has learned well since taking office the first time around is the power of oratory. He could say very little at first without the aid of a teleprompter, but now he can convincingly speak of moving money from the rich to the middle classes in a more socialist society. If youâ€™re in any doubt about his convictions here I suggest you rent the movie â€œ2016â€? â€“ very insightful. His next learning curve should be mathematics. There ap-
To see past columns from Tony Moorby, log on to www.usedcarnews.com/ columnists/tony-moorby
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By Miles Mellor
Across 1. Mitsubishi electric sedan 4. 2014 VW Beetle ____ 6. Nissanâ€™s new ____ NISMO 8. _____ 500 9. Atlantaâ€™s state 10. Oldsmobile _____ 13. Sun beam 15. Not bulky 16. Only used for parts 19. Buy now opportunity 20. Formerly the commonest car in East Germany 21. Lotus model 24. IX
1. _____ EX 2. Behind in payments (2 words) 3. Bentley Mark __ 4. Gets shifted 5. Used material again 6. VW family car 7. Sedona maker 11. Roomy vehicle 12. Change around the tires 14. Cool ___ cucumber 17. Gun an engine 18. Manufacturing facility 19. Well-built 22. On the way to (3 words) 23. Kia subcompact 25. A long time 27. Saturn subcompact 29. ____ M600 hypercar 30. _____ IV-Porte aka Duplex and Victoria 31. French for you 32. Luxury Honda brand 35. Sounds of an engine
26. Former Ford family car 28. Malaysian car company that owns Lotus 30. Wall ___ 33. Wonâ€™t buy word 34. Describing a car that is ready for immediate use 37. Chevy model 40. Fourth-down option 41. Ford Focus concept car at the Chicago 2013 auto show 44. Lotus sports car 46. Nissan Xterra ___ 47. Vue, for example 48. Nationality of Hyundai Automotive
pears to be some deficiency in adding and taking away. Iâ€™m going to indulge in my own sequestration this week. Itâ€™s off to Las Vegas again to hide away in the bowels of Caesarâ€™s Palace at the Conference of Automotive Remarketing, the confluence of folks from the NAAA, IARA and Bobit Business Media. I hope we get good economic news for the rest of the year and trade ideas on how to get the most out of what weâ€™ve got. Maybe I should see a magic show and learn how to pull a rabbit out of a hat or sit at the tables and find an ace up my sleeve! I think not. But for once in a long time, Iâ€™m kind of in the mood for Vegas. The odds may be better there than in the usedcar business.
24 26 30 34
Answers to the 2/18 /13 puzzle
36. Coast Guard rank: Abbr. 38. Nurse 39. Lotus roadster 40. Exercise class, abbreviation 42. Do-it-yourself ___ 43. Asphalt material 45. Twinings product
A V A L O N R X S M C L A R E N A E E E D A S H B O A A A K F O R D P G E A B I T T E R E I L A M B O R G G A L L M I N I I N D V D A E N O B L E
G E O C R S E A C C O I R D O P I N M P G J R P S T A T E R R H I N I A B U U M A T O P V E H O
M E R C E D E S
A X E D S C
S E P E A D
T U S A R C N U I E R N D A
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2/22/13 2:55 PM
Â€Â‡Ă›Ă›Ă?Ă›Ă›Ă›March 4, 2013
USED CAR NEWS
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WOODLAWN, VA Used Car Lot with 2000 sq. ft. Office, plus 3000 sq. ft. Mechanic Shop with 5 Bays on 1 acre $275,000 with Owner Financing for 1/2 Down. Call (276) 235-1904
Serving The Upper Midwest with Quality Damage-Free, Service Since 1975!
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UPCOMING ISSUES April 1 - Fleet / Lease Focus Deadline Wed., March 20
April 15 - Dealer Management Software Deadline Wed., April 3
May 1 - Data Source Book Deadline Thurs., April 4
May 6 - NABD Convention Deadline Wed., April 24
May 20 - Product Showcase Advertorial Deadline Wed., May 8
Well established pre-owned dealer, turn-key operation on the north-side of Houston looking to sell! Owner-financing for qualified buyer. 19 year old clientele base in same location. 2.02 acres mostly clear. Room for 150 plus cars. Fenced, lighted, concrete. More information please call Tracy 713-306-4847. Serious only. LUXURY PRE-OWNED CAR DEALERSHIP available in the heart of Boston. Established in 1998 Autobahn USA enjoys an impeccable reputation and lots of repeat business. Average Monthly Units: 65 Annual Retail Sales: $17.5 Million and Great cash flow. Rent: $8,500 per month. Property optional: $1.5 Million For more details please call in confidence 888-965-2770.
June 3 - How to Get a Life Off the Lot Deadline Wed., May 22
June 17 - NADA Convention Deadline Wed., June 5
July 1 - Auctions... The Next Generations Deadline Wed., June 19
July 15 - Quality Dealer Deadline Wed., July 3
August 5 - Finance / Warranty Advertorial Deadline Wed., July 24
August 19 - Best of Auctions Deadline Wed., August 7
TO ADVERTISE PLEASE CALL 1-800-794-0760 EXT. 107
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