Used Car News 3/5/12

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March 5, 2012

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Drivers Keep Cars Longer As Quality of Vehicles Improves Drivers are keeping their cars longer and longer as dependability reaches an alltime high.

Polk, a leading global market intelligence firm, reported the average length of ownership of vehicles that were purchased used is nearly 49.9 months. The average length of ownership of vehicles purchased new has risen to a record 71.4 months, or nearly six years, based on an analysis of U.S. vehicle registrations.

Combined, new and used vehicle owners are holding on to their vehicles for an average 57 months. For new and used owners, the length of vehicle ownership among U.S. consumers has increased 23 percent since the third quarter of 2008.

A number of factors contribute to the increased length of ownership, according to Polk.

First, consumer spending remains conservative in a still-weak job market with relatively high unemployment rates.

Second, many buyers have

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l o n g e r- t e r m f i n a n c i n g options to secure more affordable payments. Third, vehicles produced in recent years have been more durable and more reliable than their predecessors, according to different industry reports. Several manufacturers are also offering longer warranties for new vehicles, reducing the risk for consumers who want to keep vehicles longer.

The latest J.D. Power and Associates U.S. Vehicle Dependability Study shows that third factor may be one of the strongest.

The study measures problems experienced during the past 12 months by original owners of three-year-old (2009 model-year) vehicles.

Overall dependability is determined by the level of problems experienced per 100 vehicles (PP100), with a lower score reflecting higher quality.

In 2012, overall vehicle dependability averages 132 PP100 – an improvement from the 2011 average of 151 – which is the lowest problem rate since the inception of the study in 1990.

The strong dependability of these models reflects their high levels of initial quality when measured three years ago.

According to the J.D. Power and Associates 2009 Initial Quality Study, overall initial quality of 2009 model-year vehicles was the highest level of initial quality ever reached at that point. It has since been passed, including a new record in 2011.

Fully 25 of 32 brands have improved in dependability

from 2011, while only six have declined and one has remained stable. Domestic nameplates have improved in 2012 at a slightly faster rate than imports, narrowing the dependability gap to 13 PP100 from 18 PP100 in 2011.

In particular, during the past four years, models from Buick, Cadillac, Ford, Hyundai and Lincoln have achieved consistently strong levels of dependability, but still have relatively high proportions of new-vehicle buyers expressing reliability concerns.

Lexus ranks highest in

vehicle dependability among all nameplates in 2012. In addition, the Lexus LS has the fewest problems in the industry, with just 72 PP100.

Rounding out the five highest-ranking nameplates are Porsche, Cadillac, Toyota and Scion, respectively.

Mini and Scion post the greatest year- over-year improvements from 2011 – by 60 PP100 and 55 PP100, respectively.

Toyota Motor Corp. continues to perform well in long-term dependability and garners eight segment awards – more than any

other automaker in 2012 – for the Lexus ES 350 (in a tie with the Lincoln MKZ); Lexus RX 350; Scion tC; Scion xB; Toyota Prius; Toyota Sienna; Toyota Tundra; and Toyota Yaris.

Ford Motor Co. receives three model awards for the Ford Explorer (in a tie with the Nissan Murano); Ford Fusion; and Lincoln MKZ (in a tie). General Motors (Buick Lucerne and Chevrolet Equinox) and Nissan Motor Co. Ltd. (Nissan Frontier and Nissan Murano, in a tie with the Ford Explorer) each receive two awards.

IN THIS ISSUE • Dealers are missing out on aftermarket sales. – Page 3

• IARA’s certification proves valuable, but challenging. – Page 8

• Groups oppose zoning changes that allow used-car stores. – Page 6

• Industry veterans have announced their retirements0. – Page 12

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

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Dealers Miss Add-on Market

By Ted Craig

Volume Revenue Profit

Automotive aftermarket accessories are a huge industry of which dealers have only a small part.

Sidney Haider, president of AddOnAuto, estimates dealers only get 3 percent of this business. His company is out to change that.

“The accessory industry could be much better if dealers participated in it properly,” Haider said.

The business resembles impulse items sold at most general retailers, he said.

Consumers usually consider them after the sale and only when presented.

Increasing aftermarket sales expands the dealership’s reach in several ways, from service to finance.

Aftermarket add-ons range from a simple cell phone holder to a $10,000 super charger.

A main challenge for dealers has always been stocking these items. It takes a large investment in money that by creating a virtual showroom of the vehicle a customer is buying and space. for aftermarket accessories. and then shows what it would look Haider’s company means to change Dealership staff calls up an image like a range of accessories.

The images go back several model years.

THE TOP TEN ACCESSORIES CATEGORIES IN 2011 Aftermarket accessories could 6. Paint Protection 1. Floor Mats grow as a business for used cars in 7. Step Bars 2. Factory Exterior the next few years because con8. Factory Interior 3. Body Side Moldings sumers have been buying cars with 4. Alarms Remote Starts and Recovery 9. Deflectors fewer options during the downturn.

10. Hitch and Accessories 5. Window Tint The way manufacturers package options also creates opportunities for 6. Body Side Moldings 1. Upholstery dealers, Haider said.

7. Video 2. Step Bars Many times consumers can only 3. Alarms Remote Starts and Recovery 8. Navigation get certain options if they buy a 9. Factory Exterior 4. Paint Protection package that contains features they 10. Hitch and Accessories 5. Wheels don’t want. Being able to offer, for example, leather seats on a car may tip the scale in some sales.

1. Paint Protection 6. Factory Exterior Haider said protection products, 2. Alarms Remote Starts and Recovery 7. Hitch and Accessories such as side moldings, proved the 8. Video 3. Step Bars most popular add-ons last year. He 9. Wheels 4. Body Side Moldings said that reflects consumers’ desire 10. Navigation 5. Upholstery

to protect their investments.

This brings up another reason for dealers to consider aftermarket accessories.

Studies show consumers who add these products to their vehicles make their payments on a more consistent basis.

“They tend to own (the vehicle) more,” Haider said.

Selling more accesories takes a cultural shift from salespeople, Haider said. They need to find out more about their customers’ wants and need, sometimes more than the customer knows.

He gave the example of a visit he did to a dealership. Talking to a couple that just bought a new crosssover, he found the wife missed a feature no longer available for that model. Haider managed to make an aftermarket sale as a result.

CFPB Proposes Rule for Collections The Consumer Financial Protection Bureau (CFPB) announced a proposed rule to include debt collectors and consumer reporting agencies under its nonbank supervision program.

This would mark the first time these consumer financial market participants are subject to federal supervision.

Last summer, the CFPB sought public comment about possible markets to include in the initial rule and available data sources to define larger participants in nonbank markets.

Under the proposed rule, debt collectors with more than $10 million in annual receipts from debt collection activities would be subject to

supervision.

Based on available data, the CFPB estimates that the proposed rule would cover approximately 175 debt collection firms — or 4 percent of debt collection firms — and that these firms account for 63 percent of annual receipts from the debt collection market.

The consumer reporting market plays a critical role in the consumer financial services marketplace and in consumers’ financial lives. It includes the largest credit bureaus selling comprehensive consumer reports, consumer report resellers, and specialty consumer reporting agencies.

The three largest consumer-reporting agencies

alone maintain information each year there are 36 billion on 200 million consumers. updates and three billion According to the Consumer reports are issued.

Data Industry Association, About 30 million

Americans have debt under collection. For these consumers, the average amount under collection is $1,400.

State Questions Doc Fees The Massachusetts Office of Consumer Affairs issued a news release decrying documentation fees.

The office surveyed almost 190 car dealerships across the state asking if these fees were charged, the amount and the reasons for the fees.

Almost 70 percent of the dealerships called charged the fees, which ranged from $45 to $399.

Authorities claimed that many of the reasons given for the fees appeared to be very

questionable and literally made up by the auto dealerships.

Reasons ranged from a 9/11 security fee to storing documents for eight years to paying insurance agents.

The survey of 180 car dealerships across the state found: • 128 dealerships charged documentation fees; • Fees ranged from $45 to $399; • About 50 dealerships c h a rg e d b e t we e n $2 7 5

and $300; • New car dealerships were more likely to charge the fees than used-car dealerships.

Some dealers also claimed the fees were for title or registry purposes. State law requires that title or registry fees must be separately itemized and cannot exceed the cost charged by the registry.

The Office of Consumer Affairs will refer some of these car dealerships to the state Attorney General's Office for further investigation.

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USED CAR NEWS

March 5, 2012

NEWS BRIEFS Dollar Thrifty Completes Credit Facility

Dollar Thrifty Automotive Group, Inc. announced the completion of a new five-year $450 million senior secured credit facility that significantly enhances the company’s liquidity, as well as its operating and financing flexibility.

The new senior secured credit facility increases the company’s available revolving credit capacity by approximately $220 million compared to the company’s previous facility, and extends the maturity date to 2017 from 2013.

In addition to incremental financing capacity available for general corporate purposes or the issuance of letters of credit, the new facility provides Dollar Thrifty with greatly improved flexibility to manage growth initiatives and capital structure initiatives.

In this regard, the new facility provides for restricted payments for the purposes of making share repurchases and / or paying dividends, provides greater flexibility for completion of acquisitions, and permits the incurrence of additional indebtedness by the company.

satellite-based technology that helps users minimize labor costs and increase efficiency - without using a single sheet of paper.

AuctionTrac’s paperless management system was specifically developed to provide users improved workforce control and management capabilities.

The company’s labor-tracking module not only eliminates the need to maintain paper records, it also provides a potentially cost-saving alternative to traditional labortracking systems.

AuctionTrac uses 4D-scanning technology to electronically record start and stop times for temporary labor.

Not only does paperless reporting provide an instant, detailed accounting of each worker’s hours, it also allows vendors to monitor worker production in real time.

An additional benefit is the system’s capacity to streamline billing via online invoicing to pay labor companies.

C R O S S WO R D

GPS Tracks Labor Costs

by Myles Mellor

PAGE 30

AuctionTrac, a subsidiary of KAR Auction Services Inc., now offers

RouteOne Offers Compliance Tool

RouteOne LLC announced the introduction of the Compliance Dashboard, a free tool that provides dealers using the company’s system with a visual assessment of the dealership’s compliance status for all applicable deals.

Dealers may track compliance at both a dealership and transactional level.

The dashboard is customizable, meaning that dealers may choose the compliance categories they wish to track and monitor, such as Adverse

Action, Office of Foreign Assets Control, Identity Verification, and Credit Score Disclosure Notices/Risk-Based Pricing Notices.

The information is presented in a single screen shot that includes a view of all applications within a 60day timeframe, broken down by age of application and compliance category.

Additionally, dealers may clear out any transactions for which all compliance activities have been completed, allowing them to focus only on deals that require additional action.

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, Dave Piestrzynski 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 —

Vol. 17 • No. 23 Used Car News is published the first and third Monday of each month.

Buy & Sell Now Thru March 9th To Increase Your Chance To Win

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.

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Auto Finance Remains Strong Automotive finance ended the last year on a strong note and that should carry through at least the first quarter.

Experian Automotive announced that the automotive loan market showed continued improvement in the fourth quarter, with interest rates for new and used vehicle loans reaching the lowest levels since 2008.

In the fourth quarter, average credit scores for new and used vehicle loans also dropped, the percentage of loans to customers with nonprime, subprime or deep subprime credit scores increased, and lenders increased their willingness to make loans between six and seven years long.

“The improved automotive lending market is good news for consumers in the market to buy a vehicle,” said Melinda Zabritski, director of automotive lending at Experian Automotive. “The confluence of low interest rates, longer loan terms and an increase in loans outside of prime provide a great opportunity for more people

to find a vehicle that suits their needs.”

Consumers also continued to do a better job of repaying loans, as loan delinquencies fell. The 30-day delinquency rate fell 6.57 percent from the fourth quarter of 2010.

The 60-day delinquency rate fell 9.51 percent to 0.72 percent from 0.79 percent in the fourth quarter of 2010.

Another positive sign for the lending market is that the overall dollar volume of loans at risk dropped to $18.5 billion, a $1.862 billion drop from the fourth quarter of 2010. Meanwhile, the total volume of open loans rose by $23.9 billion to $658 billion.

“Lenders are clearly on much more solid ground than they were two or three years ago,” said Zabritski.

“With delinquencies and total dollar volume at risk down, lenders have been able to adopt more aggressive strategies. This tends to benefit everyone, from lenders to automotive retailers to the end consumer.”

General Motors Financial Co. is one of those creditors that did well in the last three

months of 2011.

The captive finance arm announced net income of $104 million for the quarter.

Loan originations were $1.2 billion for the fourth quarter, compared to $1.4 billion for the third quarter and $935 million for the fourth quarter 2010.

The prospects are good for GM Financial to continue this winning streak. The firm recently announced the pricing of its latest $1 billion offering of automobile

receivables-backed securities.

Credit Acceptance Corp. also had a strong fourth quarter.

The finance company announced consolidated net income of $50 million for the three months ended Dec. 31 compared to consolidated net income of $47 million for the same period in 2010.

Adjusted net income, a non-GAAP financial measure, for the three months was $51.3 million,

compared to $43.6 million for the same period in 2010.

Related companies are also benefitting from the uptick in auto finance.

DealerTrack Holdings Inc. recently reported revenue for the fourth quarter of $91.3 million, as compared to $62 million for the fourth quarter of 2010.

Net income for the quarter was $32.9 million, as compared to a GAAP net loss of $26.4 million for the fourth quarter of 2010.

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USED CAR NEWS

March 5, 2012

Township Mulls Zoning Change

By Sheila McGrath

A proposal to amend a New Jersey township’s master plan to allow auto sales has been met with months of protests.

As of now, there are no areas in Manalapan, N.J., zoned for commercial auto sales. But according to a planning report issued Jan. 25, the township is considering allowing auto sales as a way to shore up its economic base since commercial and office development has been declining since 2007.

Last fall, the Ray Catena Auto Group proposed opening an Audi dealership on Route 9, the main highway through town. The Ray Catena Auto Group, which opened for business in 1959, has 14 New York and New Jersey dealerships carrying 11 luxury car brands.

The group planned to open the Audi dealership on a site where an office building is now sitting vacant.

After the dealer sought approval from the planning department, the township began looking at whether Route 9, or other location, would be a good fit for auto sales.

The planners looked at a number of factors. Route 9 seemed to fit the criteria better than Route 33, the only other major thoroughfare.

The planning report concluded that zoning parcels for auto sales on Route 9 would be compatible with

the township’s economic development goals.

But in a series of meetings before the township’s planning board – some lasting up to four hours – residents of the neighborhood have continuously argued against the Audi dealership, citing worries about traffic congestion, noise, environmental concerns and fears that test drives would endanger the public.

“It is an existing building that was an office building, and they would like it to stay that way,” said Eleanor J. Ruggiero, administrative officer for the township’s Planning & Zoning Department.

The most recent hearing was held Feb. 9. Ruggiero said no one from the public spoke in favor of the rezoning.

The township has received only four or five letters in support since the controversy began last fall, she said.

“Right now the board is listening to the public,” Ruggiero said. “The hearing is going to be continued in two weeks, and maybe at that meeting they will take a vote.”

Ruggiero declined to say which way she thought the 11-member planning board would go.

“I don’t speak with them about how they’re going to vote,” she said.

Even if the planning board recommends the rezoning, the matter will still need to go before a township committee, which will have final say over the zoning amendment.

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USED CAR NEWS

March 5, 2012

State Charges Illegal Billing The North Carolina Department of Motor Vehicles License and Theft Bureau inspectors arrested the owner of ES Motorsports Inc., Ehsan Shahnawaz, 32, on Feb. 22. He is charged with illegally billing customers for tax, tag and title fees for 87 vehicle sales.

Records show Shahnawaz opened the business located in Greensboro at 707 Norwalk St. in 2008, selling mainly used BMWs and high-end sports cars.

In addition to sales from the vehicle lot, he also sold vehicles via the Internet.

The arrest followed a routine For Cars, Trucks and Vans

dealer audit by DMV inspectors and included an investigation into the dealership’s sales records over an 18month period.

Inspectors charged Shahnawaz with selling vehicles to out-of-state customers, charging them illegally for North Carolina taxes, titles and tags, when the vehicles were not being titled or licensed in the state.

The dealer also charged other fees not allowed by North Carolina law.

In total, Shahnawaz was charged with 87 felony counts of obtaining property by false pretense, 12 counts of common law forgery, and six counts of common law uttering.

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PAGE 8 – CONFERENCE OF AUTO REMARKETING

Remarketers Earn Certification

By Jeffrey Bellant

The International Automotive Remarketers Alliance’s Certified Automotive Remarketer program appears daunting to people who’ve taken the test.

One recent graduate of the program, Phil Finley, J.D. Byrider’s Georgia zone asset manager, spent five months with the self-study materials and two months completing the 20 tests.

“When I first got the materials, I laid out all 20 modules and thought, ‘Wow. What a challenge,’” he said.

So he broke it down into five sections and hit the material hard.

“It’s a very comprehensive deal,” Finley said. “I enjoyed the challenge.”

Finley joined the small but growing ranks of Certified Automotive Remarketers who are glad they took that challenge.

The program has come a long way since it was first introduced in 2007, targeted for those with at least three years of remarketing experience.

The first of the 20 modules were offered in 2007 and four people achieved Certified Automotive Remarketer status by 2009: Ricky Beggs of Black Book; Dave Sutton of Carfax; Sal Terranova of Carolina Auto Auction and Chris Wise of Charleston Auto Auction.

The test is broken into five units making up of a total of 20 different module covering all aspects of remarketing.

“They vary from auction selection and ethics, to titling, repossessions, reconditioning and guide books,” said Beggs.

“That’s how I got involved, because they wanted a module on guidebooks.”

Beggs, along with other members of the IARA and its certification committee, oversaw the development of the test.

It’s a self-study program where the participant gets the material for each module to study on his own.

IARA offers several options for remarketers hoping to get certified.

The Conference of Automotive Remarketing March 5, 2012

offers an opportunity to take the test when remarketers convene for any industry conference, such as CAR in Las Vegas this month.

Those interested can also arrange to take the test at a local college where proctors can administer the exam.

A third option allows those taking the exam to ask one of the certification committee members to serve as a proctor to administer the exam.

Beggs served in that function for Finley as he worked his way through the exam.

“Phil was very determined and dedicated to pass the test,” Beggs said.

Finley would stop by for a couple of hours when he was in Georgia, where Beggs is based, to take several modules at a time.

The test has to be taken in person, to protect the integrity of the test, so the questions don’t get out.

“Most of the feedback has been positive,” said Matt Marks, IARA’s executive director.

He said 22 people have completed the group’s certified remarketer program.

But those who receive the designation earn it.

It is a challenge according to the organization that designed it and the people who take it.

Marks couldn’t recall one person who passed all 20 modules on the first try.

“It does take some time (to pass them all),” Beggs said.

The IARA continues to make improvements.

For example, the test includes a section for comments and when there is confusion or complaints about certain questions, the IARA reviews them, Marks said.

Marks said an extensive review of the test was done last year to make improvements – identifying a question that might be too confusing or poorly worded – so the test is clear and fair.

In some instances, a question may be changed or eliminated altogether.

Beggs, as one of the first graduates of the program, said the test was an eyeopener.

“It was a tremendous program,” Beggs said.

“It opened my eyes to a

Photo by Jeffrey Bellant BEGGS THE QUESTION: Black Book’s Ricky Beggs, seen above during the 2011 Conference of Automotive Remarketing, earned Certified Automotive Remarketer status from the IARA in 2009.

number of things, especially since I wasn’t a direct remarketer.”

Anyone who goes through the program will likely learn something they didn’t know about the industry.

“People may have personally worked in 10 or 12 different areas (of the 20 modules),” Beggs said, “but there’s probably no one who’s been an expert in all of them.”

For Beggs, the section on repossessions opened his eyes to that field and its

requirements.

The certification lasts for three years, making this year the first opportunity for Beggs and others to get recertified.

Those four will be the first group to take a re-certification test at the Conference of Automotive Remarketing in Las Vegas this month, Marks said.

Beggs said the re-certification exam will be a condensed version of the original test, with 100 questions.

The industry has offered its support for the program.

Beggs said several fleet management companies, such as ARI, have been strong proponents of the program.

“It’s a wonderful class,” Finley said. “I’d recommend it for anyone who’s in remarketing. I’m fixing to put my team members through the program as soon as possible.

“If a remarketer is good, this is going to make him better.”

Training Program Names COO Randall

McCathren has been n a m e d c h i e f operating officer of Auction Academy, a continuing education Randall program McCathren developed

by TPC Management Company for professionals in the auction industry, announced Pierre Pons, TPC president.

McCathren will oversee the Auction Academy’s inaugural offering which begins in May: the Next Generation Owner course, a two-year training and development program for the sons and daughters of today’s independent auction owners.

McCathren brings more than 30 years of experience in the auto leasing industry to his new role with Auction Academy. As President of BLC Associates, he is regarded as a national expert on consumer vehicle leasing and financing issues, with particular focus on vehicle remarketing, risk management, economic analysis and regulatory compliance.

Since 1993 he has also served as managing director of the Association of Consumer Vehicle Lessors (ACVL), representing the major captive finance companies, banks and independent lessors.

McCathren holds a B.S. in engineering and applied science from Yale University and a law degree from the University of California at

Berkeley, and has taught at the University of Texas and Vanderbilt Law Schools.

“I am very excited to announce that Randall McCathren has agreed to head the Auction Academy,” Pons said.

“I have known and worked with him for many years and have tremendous respect for his understanding of management practices and his industry expertise.

“Those who will be participating in the Auction Academy will reap the benefits of working with a giant in the industry, gaining an understanding of the business that will be invaluable to them throughout their careers.”

Auction Academy is a structured like an executive MBA program.

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Side Air Bags Cause Recalls DETROIT (AP) – Federal safety regulators are investigating a problem with side air bags that may fail to inflate in a crash.

The problem already has caused recalls of more than 2,700 Toyota, Honda, Subaru and Nissan vehicles, but that number could grow if the National Highway Traffic Safety Administration determines that more automakers used similar defective parts.

The recalled vehicles could have an ineffective mixture of the gas that inflates the side curtain air bags in a crash.

That mix could mean air bags on one or both sides of the cars won’t inflate, increasing the risk of injury, the agency said in documents posted on its website.

So far, no one has been hurt.

All four companies with recalled vehicles told NHTSA that the Americas unit of Swedish safety parts maker Autoliv Inc. made the inflators for the air bags.

The investigation was opened Feb. 14. Documents detailing the probe were posted on NHTSA’s website.

Autoliv told NHTSA in a letter that it shipped a total of about 10,500 of the problem inflators to automakers and two other air bag manufacturers.

In addition to the four companies that have announced recalls, the parts went to Chrysler Group LLC, Ford Motor Co., General Motors Co., Kia Motors America, and Suzuki Motor Corp.

The letter did not say which models have the faulty inflators.

Spokesmen for Chrysler, GM and Ford said their air bag inflators are designed differently than other manufacturers and have not failed in extensive testing, so they do not expect any recalls.

A message was left for spokesmen at Kia. Suzuki said it could not comment because NHTSA hasn’t notified the company about the problem yet.

Autoliv said Feb. 21 that the problem occurred one time in production parts tests at minus-22 degrees Fahrenheit.

But further tests indicated a risk of malfunctions at low

temperatures, spokesman Mats Odman wrote in an email.

“We are in a dialogue with our customers and the authorities to ensure that they are fully informed and that the driving public could rely on our products,” Odman wrote.

Toyota Motor Corp. and

Honda Motor Co. first discovered the problem and reported it to NHTSA on Jan. 31, the documents said.

The recalled vehicles include 427 Toyota RAV-4s from the 2011 model year that were made from Nov. 24, 2011 through Dec. 19, 2011. Also included are 974 Honda Accords, Civics, Crosstours and

Acura MDXs from the 2012 model year made between Nov. 30, 2011, to Jan. 26, 2012; 381 2012 Subaru Legacy and Outback cars made from Dec. 1, 2011, through Dec. 23, 2011; and 976 Nissan Altimas and Versa cars from the 2012 model year that were made from Nov. 21, 2011 to Dec. 21, 2011.

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USED CAR NEWS

March 5, 2012

Industry Veterans Retire

–file photo STEPPING DOWN: Joe Lescota (left) accepts the National Independent Automobile Dealers Association’s Ring of Honoraward last summerfrom NIADA’s Mike Linn. Lescota announced he is retiring as automotive marketing chairman of Northwood University.

Tom McNutt, longtime transporter(not pictured), has sold his business and is also retiring.

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A pair of industry veterans recently announced their retirements.

Joe Lescota, Northwood University’s Automotive Marketing Department Chairman, on Feb. 21 announced he was retiring from the university.

Lescota joined Northwood in 1997, after two decades in the retail automotive industry. In recent years, Lescota has taught the Certified Master Dealer program on behalf of the National Independent Automobile Dealers Association.

Last summer, he won the 2011 NIADA Ring of Honor award. The award is given annually to an allied industry executive who, through outstanding performance and leadership has contributed to the professionalism and growth of the automobile industry.

Mike Linn, CEO of NIADA, said only 21 people have been inducted to the Ring of Honor.

Lescota has more than 25 years experience in the auto business, including tiem spent as a dealer operator and principal.

He developed strategies that reduced employee turnover and improved customer satisfaction.

He was recipient of the 2006 Man of the Year award from the Association of Finance and Insurance Professionals and is involved in numerous NIADA efforts.

At Northwood, he received the Faculty Excellence award in 2003, 2004. 2005, 2006 and 2007.

Lescota has also conducted workshops and educational seminars for several manufacturers and helped introduce college credit courses in dealerships nationwide via distance learning.

Prior to his automotive career, he was a college campus police officer.

McNutt Auto Transport Service, based in Lowry, Mo., has been sold to a venture capital group in New York.

The company will be renamed McNutt Automotive Logistics, said general manager Mike Peck.

Peck said that company founder Tom McNutt, who stepped back from the business about three years ago, completed the deal on Feb. 22.

Peck said McNutt had many suitors for the business over the past three years.

The group which ultimately bought the company has been in talks with McNutt over the past six months, Peck said.

“This is such a strong, positive move for us,” he said. “It’s certainly a good move for our customer base and for the industry.”

The group of 150 investors that made the purchase should help bring more cash flow into the business, Peck said. He would not name the buyers.

Peck said the transportation company, which has continued to have a strong return on investment, would keep the management team in place and will also hire more people.

McNutt’s business was founded in 1995 as a transportation broker that links buyers with thousands of shippers to transport between 5,000 and 10,000 cars per month, Peck said.

The company’s main business is made up of automobile dealers and wholesale auto auctions.

In 2009, in the midst of the economic downturn, the company started working with institutional shippers, like finance companies and banks, to help move their repossessions.

“That part of the business really shot up,” Peck said.

A few years ago, the company added a tool to generate price quotes on its website.

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USED CAR NEWS

March 5, 2012

Finance Company Delivers Ready-to-Buy Customers Another new finance company with some familiar faces has launched onto the national scene.

The latest non-prime player is CarFinance Capital LLC, founded by a group of executives who helped build Triad Financial Corp. into one of the nation’s largest creditors only to see it fall apart at the start of the credit crunch.

The growth plans for CarFinance are nowhere near as grand. CEO Jim Landy said the main goal is helping to bring together dealers and consumers.

The company officially launched its website, CarFinance.com, in January.

Landy said many consumers with bad credit want to buy a car, but they dislike talking about their financial situation.

The site allows CarFinance to

gather the needed information and then refer the consumer to a dealer.

“They’re a ready-to-buy customer,” Landy said.

The new program is designed to ensure dealer profits by providing loan-to-value ratios of up to 120 percent and $2,000 for back-end products sold by the dealer.

Landy said services like this will grow more valuable for dealers because they handle the everincreasing amount of regulations for auto finance.

CarFinance is licensed in 20 states and active in eight, just adding Colorado.

The average customer is 40 years old with at least 10 years of credit history and a score between 525 and 675.

The typical vehicle financed is a late-model used car.

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AutoTrader.com has launched the Privacy Shield product which is

delivered with ControlBox technology products that put privacy control in the hands of the sellers and provides them with tools to manage their calls and emails, including the ability to selectively block certain individuals from contacting them, as well as providing a record of contacts to help car sellers stay organized throughout the selling process.

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USED CAR NEWS

March 5, 2012

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Contrary to the negative perceptions often associated with automotive dealerships, a recent Maritz Research CEBenchmarks study revealed the auto industry outperforms several other industries, including retail and wireless services, when it comes to providing a quality customer service experience.

In fact, three in four customers rated their experience among the three highest ratings on a 10-point scale when purchasing or leasing a vehicle or having a vehicle serviced.

The CEBenchmarks study compared customer service experiences across 11 industries and 34 types of transactions. Specifically, for automotive transactions, customers were asked about experiences purchasing or leasing a vehicle from a new car dealership in the past six months and having vehicles serviced at a new-car dealership within the past three

months.

When asked more detailed questions about their automotive sales experience, 74.5 percent of customers were satisfied. The study also identified key factors in driving this customer satisfaction. Customers rated their experience with the sales process as the most important aspect, followed by dealership honesty, dealership keeping promises, vehicle delivery process and financing/paperwork process as additional indicators of satisfaction.

When it came to automotive service, 74.9 percent of customers were satisfied, citing dealership honesty as the most important factor in driving their satisfaction.

Additional key factors included quality of repair, timeliness of service, drop-off and service writeoff process, vehicle pick-up process and vehicle fixed right the first time.

Tip Leads to Drug Bust at Store JACKSON, Miss. (AP) – The owner of a used-car dealership in Jackson and two other men have been charged with possession with intent to distribute 416 pounds of marijuana after a tip led authorities to the car lot, federal court records said.

Jeremy Lee Stambaugh, owner of Paradise Auto Sales in south Jackson, was arrested at the car lot along with Johnny Earl Course and David E.

Jones, according to an affidavit filed in U.S. District Court in Jackson.

The affidavit said investigators were acting on a tip “from an unproven confidential source” when they began to stake out the dealership. The tipster allegedly told authorities that there were men at the dealership breaking down a big bundle of marijuana and packaging it for distribution.

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USED CAR NEWS

March 5, 2012

Enterprise Backs Oversight ST. LOUIS (AP) – Enterprise Rent-A-Car now says it will support legislation to increase federal oversight of how car rental firms manage safety recalls for vehicles in their fleets.

Consumer groups have been pushing for the additional oversight, spurred in part by a 2004 accident in California in which sisters Raechel and Jacqueline Houck died in a Chrysler PT Cruiser rented from a branch of St. Louis-based Enterprise, the nation’s largest car rental company.

The car had been under recall for a power steering problem, and Enterprise had not repaired the problem.

A jury awarded $15 million to the Houck family two years ago.

Since then, the parents of the Houck sisters have advocated for stricter government oversight.

Meanwhile, more than 170,000 people signed an online protest of Enterprise’s policy on handling recalls posted on Change.org.

Enterprise said in a statement that it and other rental

companies have made significant improvements in the process of inspecting and fixing recalled vehicles in the years since the 2004 accident. Still, Sen. Charles Schumer of New York and Sen. Barbara Boxer of California, both Democrats, have been seeking greater g ove r n m e n t ove r s i g h t through a bill that, among other things, gives the National Highway Safety Administration authority over rental company practices.

“In the past, we believed that this step was unnecessary, but a growing number of people, including our customers and business partners, clearly want more assurance on this critical issue,” Enterprise said.

“We hear them – and what we’ve heard has caused us to rethink our stance.”

But Enterprise stopped short of specifically endorsing the Schumer-Boxer bill that could receive an initial vote soon.

In February, Hertz agreed to support the measure.

Cally Houck, the mother of

the two young women killed in 2004, posted on Facebook: “ W h i l e E n t e r p r i s e ’s announcement today is a step in the right direction, what is more revealing is what Enterprise did not say.

The question remains: ‘Yes or no, will Enterprise support specific legislative language endorsed by Hertz, consumers, and 130,000 other people?’

“Anything less than yes wo u l d m a ke t o d a y ’s announcement pure spin.”

Enterprise pledged collaboration with those “committed to legislative oversight of the recall process.”

Raechel Houck, 24, and Jacqueline Houck, 20, rented the PT Cruiser at an Enterprise branch in Capitola, Calif.

A month before, the branch had been informed that the vehicle was under a safety recall for a faulty power steering hose that could leak and ignite on the catalytic converter, causing a fire.

No repairs were made.

An attorney for the Houck family said the vehicle was

CAUSE OF CONCERN: Two California sisters were driving a PT Cruiser like this when they died in a crash. The vehicle had been recalled for issues with the brakes.

rented four times while under recall before it was rented to the sisters, who died in a fiery head-on crash with an 18-wheeler near King City, Calif., on Oct. 7, 2004.

Enterprise said consumers can be assured that safeguards have been put into place to ensure that its vehi-

cles meet the highest safety standards.

The company said it is “profoundly sorry” for the accident that killed Raechel and Jacqueline Houck.

“Given all the changes and improvements we have made since that fatal crash, today that vehicle would never be rented,” Enterprise said.

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USED CAR NEWS

March 5, 2012

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Bill Tiedemann is retiring from Manheim as group vice president of To t a l Re s o u rc e Auctions at the end of this month. As a result of his retirement, Mark Brunn, vice president of business development has been Bill named interim Tiedemann leader of Total Resource Auctions.

A long-time Manheim employee, Brunn has extensive industry knowledge and experience and has held a variety of leadership positions within the company.

Tiedemann joined Manheim in 1989 as national operations manager.

He was promoted to his most recent position in March 2011 and was responsible for growing this emerging business that focuses on insurance, total loss, recovered theft, and salvage, damaged, disabled and inoperable vehicles.

Kelley Names New President

“The integrity with which Black Book has served the automotive industry is second to none, and I am proud to be part of their management team.”

Bunch spent his first 12 years in the automotive industry in a variety of sales roles at Chevrolet, Chrysler and GM dealerships.

He went to work for Manheim in 1997, starting at Manheim Financial Services where he rose to the position of vice president of sales and operations, and most recently was Manheim’s vice president of dealer services.

Auction Group Names Chairman

Steve Simon, CEO of American Auto Auction Group has announced that industry veteran Bill McIver will serve as the chairman of AAAG’s board of directors.

After a 40-year career with GMAC, McIver retired as director of Internet remarketing in May 2009.

McIver held a number of management positions with GMAC, now Ally Bank, in virtually every area of Bill financial services McIver including collections, dealer credits, commercial lending and remarketing. He managed operations in a number of locations and spent 10 years in GMAC’s Detroit headquarters. He was the developer and director of GMAC’s online wholesale auction, SmartAuction. He also managed the physical auction sales at 56 auction locations as director of physical auctions for GMAC.

Kelley Blue Book, www.kbb.com, announced that its president, Paul Johnson, has resigned from his position effective immediately. Johnson will become a strategic advisor to the company. AutoTrader.com Vice President Jared Rowe has been named president of Kelley Blue Book. Rowe is currently vice president of product management for AutoTrader.com in Atlanta, Ga. Rowe’s new role is effective immediately.

Rowe joined Autotrader.com in 2010 as vice president of product management. Before joining the company, Rowe spent 10 years at FordDirect where he was a member Magazine Lauds Manheim Exec of the FordDirect founding executive Lilicia Bailey, Manheim senior management team. vice president and chief people officer, has been selected as one of Industry Vet Joins Black Book Savoy Magazine’s “2012 Top 100 Black Book announced Jeff Bunch Most Influential Blacks in Corporate has joined the company as director of America.” automotive licensing.

Bailey and the other honorees, In this role, Bunch will be responsi- which include prominent Africanble for leading Black Book’s efforts to American executives from Fortune increase revenue growth from the 500 companies across the country, licensing of Black Book data to are featured in a special section of dealers and companies who serve the the spring 2012 issue of Savoy dealer community.

Magazine.

“I am thrilled to have Jeff join our The annual list features Africansenior management team,” said Tom American professionals who: Cross, president. exemplify success and commitment “He has an incredible automotive to community, are industry trailblazbackground with deep retail, whole- ers and serve as corporate role sale, and OEM expertise, and the models for future generations. reputation of someone who really Bailey was selected for her profesunderstands the challenges dealers sional achievements and strong are facing today, with the mindset to dedication to the communities in want to help with those challenges.” which she has lived and worked.

Bunch said he was excited to join A member of Manheim’s executive Black Book’s organization. team, Bailey leads the company’s “Through my entire automotive global human capital strategy. career I have had the greatest level of After joining Manheim in 2004, respect for this organization,” he Bailey took on various leadership said. roles.

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RETAIL MARKETS INDIANA

Troy White, used-car manager, White’s Auto Sales, Rensselaer, Ind.: “We’ve been in business 40 years this year. (My father) Ed White is still the owner.

“We have one location.

“We keep 150 cars on the lot. That’s the same as this time last year.

“Our vehicles come from wholesale auto auctions.

“The prices have been higher this year, but we’ve still been able to buy cars.

“We retail between 30 and 45 per month. We also wholesale between 60 and 100 a month.

“The average car is seven years old and 75,000 miles.

My numbers have been very consistent for (model year and mileage). But again, they cost more money. They cost me between $800 and $1,500 more this year for the same car as last year.

“The average retail price is around $11,200.

“Probably 70 percent of my inventory is cars and 30 percent is trucks and sport utility vehicles. That mix hasn’t changed from last year.

“About 95 percent of our inventory is domestic.

“We’re mostly straight retail. We also have a subprime program. About 10 percent of our business is subprime. “(I’d estimate) our average recon cost is $500, but it’s probably more than that.

“For advertising, we use local newspaper, local radio and our website. We also use a (third-party) Internet provider.

“We have increased our advertising through the Internet – our e-commerce.

“Most of our business does come through a large amount of repeat business. We also do a lot of referral business, through friends, neighbors and so forth.

“One car we recently sold was a 2002 Dodge Stratus through our subprime program. It had 80,000 miles. I think we sold that for $7,800.

“I don’t think we’ve seen the end of the (inventory shortage). I’m optimistic about this year, though I think we are still going to have some challenges.

“I think that being able to do wholesale with our retail

Compiled By Jeffrey Bellant helps us to keep fresher “(Inventory acquisition) inventory on hand.” has been quite difficult. We used to be able to go to one or two places a week to get NORTH CAROLINA everything we needed. Now Will Davis, owner, G & B we’re having to source from Auto Sales, Louisburg, four or five places a week.

N.C.: You used to buy eight or 10 “ M y d a d s t a r t e d t h e cars at one auction and be company here in 1983. I took done for the week. over, officially, in 2002.

“The average model year is “We generally keep some- about 2005 or 2006. That where in the neighborhood five-year-old car is what of 40 vehicles. works best for us.

“We’ll start building up “Average mileage is probainventory for tax season. The bly just under 100,000. The first of the year I had about mileage has changed a bit.

60 vehicles on the lot. But We have a few that have gone we’ll weed that down to our up to 110,000 to 115,000. We regular 40. really try to keep it under “Most cases, we’re turning 100,000, if at all possible. about 16 to 18 a month. If I “We’re about 80 to 85 compare how we did in 2011 percent domestic. One to 2010, our numbers in 2011 reason is price. Another were a little bit up. reason is that we’re in a rural “We’re getting quite a bit of area and send out most of our traffic, But there still appears reconditioning work. There’s that people are a little bit just not that many service hesitant to pull the trigger on centers that can work on a big ticket item like a car. imports.

“We’re having to work a lot “On average, recon costs harder for the ones that are are about $500 to $600 per coming in. car. That’s about the same as “Most of our vehicles come a year ago. from auctions. We go to “I’m probably carrying Greenville Auto Auction in about 70 to 75 percent cars, Greenville, N.C., and with the rest being trucks Manheim North Carolina. and SUVs.

“We primarily do buy-here, pay-here, so the four-door family sedan is kind of our niche. But we keep a few SUVs and a couple of trucks around. But we’re picky, because of the way prices are on those.

“Almost all of our business is buy-here, pay-here. The rest is just a few cash deals.

“We really don’t do much (paid) advertising.

“But we’ll do some work through some local organizations. For example, my dad is really big into the Shriners Hospitals for Children. I do a lot of volunteer work for the Boy Scouts. So they see us and see our vehicles.

“We get a ton of referral business. My dad has been doing this for years and years. People that he sold to – who were in their 40s and 50s – now have their kids and grandkids coming in to see us about vehicles now.

“We recently sold a 2007 Chevy Impala. It had 99,800 miles and we sold it for $9,900.

“Hopefully, things will turn loose. Once we can get the new-car store numbers up, that will help on our end with the inventory.”

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USED CAR NEWS

March 5, 2012

WHOLESALE MARKETS INDIANA

Buzz Cotton, president, Dyer Auto Auction, Dyer, Ind.: “Prices are up.

“In January, supply stayed normal and the prices didn’t increase much. Then at the start of February, everybody started bringing cars out of storage.

“It’s been gangbusters since then.

“Wholesalers have learned to play the auction like the stock market. They buy cars in the fall and put them away.

“We also have an influx because the new-car dealers are picking up a little. It’s not as much as they forecasted, but there are some more sales, which means they’re bringing more cars to auction.

“None of the new-car dealers are happy, but they’re doing better than they were.

“Overall, the sellers are happy because the prices are up. The buyers need cars because they went from selling almost nothing to very brisk sales.

“The government is late getting refund checks out to the people. Now that they’re starting to arrive, there’s no telling

how long the strength is going to last.

“The market is strong enough now that people are running everything they can so they don’t get stuck with something.

“It seems like sales have been like this in February for a number of years now and then they flatten out when the spring arrives. We’ll have to wait and see how that goes.

“Our gas prices are climbing every day. That really hasn’t hit the market yet.

“There’s a lot of pent-up buying in the retail sector because consumers haven’t really been buying cars for the last few years.

“We’ll probably see a switch pretty soon and the big trucks will soften up. But they haven’t done it as of yet, if it’s a nice truck.

“Right now, people are buying everything. The other week I had 1,180 cars and I sold 76 percent of them.

“We don’t really have to scramble that much right now because dealers are just bringing cars to us. We’re taking everything we can get.

“When you’re selling 76 percent, you’re selling everything. As long as it’s a good car and dealers can take it home

•

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Compiled By Ted Craig

and sell it, they’re going for it.

“The majority of our business comes from the Chicago area. Everybody in the car business is doing well for now.

“We have a weekly salvage sale. We run units for Enterprise, our lease clients and some of our dealers.

“That’s doing quite well.

We’ve had such a light winter that our volume has been down some.

“Enterprise is running 75 units a week, where they used to run 150-200 this time of year. But we haven’t had any snow, so they haven’t had as many accidents.”

PENNSYLVANIA

Dave Angelicchio, g e n e r a l m a n a g e r, Pittsburgh Independent A u t o A u c t i o n , Ne w Stanton, Pa.: “Sales are going well.

“Dealer attendance is good.

Conversion rates are in the 70s.

I’m very pleased with the way it’s going.

“Prices are very strong.

There’s still limited offerings nationally for the right types of vehicles.

“Prices will continue to be strong since there’s still slightly more demand than

there is supply.

“One area where there is more supply than demand is in sedans – Impalas, Malibus, vehicles like that.

“Trucks and SUVs are in more limited supply, so the pricing is extremely high on those units.

“I don’t know what to expect with gas prices heading up.

“I expect to see some change in demand, but if the supply stays low it won’t have as dramatic an effect as when fuel prices usually escalate.

“Prices will drop, but it won’t be a precipitous drop. It’s going to be a lot more gradual decline than we’ve seen other times.

“Overall, dealers are in a pretty good mood.

“Everybody wants to sell more, but they’re all making money.

“They seem a little frustrated by high prices, but they’re buying and then retailing the vehicles.

“So although they complain they’re paying too much in the lanes, I suspect the retail side is taking care of that for them.

“Tax season has been very slow this year. Its impact just started to hit the lanes.

“The delay in tax refunds is

part of that.

“Also, in the Northeast we’ve had an extremely mild winter with no snow.

“The same type of vehicles that are impacted by tax refunds are always the ones impacted by winter weather.

“Fewer vehicles breaking down and being in accidents caused by bad weather slowed the impact on lower-end vehicles for a while.

“It seems to be in full force now.

“We continue to grow our online sales.

“Our offerings have changed in the past few years so we have a lot more late-model vehicles.

“We were pretty slow in that area for a long time, but we’re definitely growing now.

“We’re seeing more dealers from farther out than our usual five-state area.

“We’re seeing more dealers from Michigan and other states that we’ve always drawn from as they seek out inventory, “I expect a very robust spring market. In some of the conversations we’ve had with customers, they say the pricing bubble is going to burst.

“But when you look at it realistically, that won’t happen.”

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March 5, 2012

ACTUAL WHOLESALE AND PROJECTED RESIDUAL VALUES FEBRUARY 2012

SOURCE: BLACK BOOK

2010 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 Pontiac G6 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

Mar-11 $20650 $28000 $8950 $12400 $14750 $11250 $16050 $20400 $22200 $11650 Mar-11 $27500 $27500 $69200 $15200 $12100 $28300 $39200 $11600 $14100 $15400 $10800 $14650 $12050 $15500 Mar-11 $46900 $32300 $20700 $19900 $17600 $20650 $28675 $15975 $14600 $17825 $22275 $19150 $21575 $20375 $21750 $33850

2009 Sep-11 $20700 $27800 $10850 $13450 $15200 $12850 $17200 $21700 $24100 $13550 Sep-11 $28000 $26200 $67500 $16000 $13400 $28200 $40200 $12950 $14200 $15500 $13400 $14650 $13450 $16900 Sep-11 $45700 $31700 $21400 $19550 $17700 $18000 $26375 $14875 $15800 $18025 $20275 $18200 $22475 $19075 $21600 $31250

Mar-12 $16450 $20100 $8750 $11550 $14300 $10450 $15100 $17300 $23500 $11800 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

Projected Figures Mar-13 Mar-14 $15050 $12750 $17000 $14600 $7100 $6075 $10200 $8650 $11450 $9850 $8950 $7350 $12200 $10000 $14200 $12500 $18350 $15350 $9950 $7975 Mar-13 Mar-14 $21200 $17800 $20650 $17600 $51200 $44200 $11900 $10025 $10000 $8300 $22150 $18750 $29800 $23800 $8750 $8050 $9450 $8100 $10500 $9200 $8200 $6800 $11950 $10400 $9300 $8000 $11700 $10050 Mar-13 Mar-14 $39150 $34400 $26150 $22850 $15875 $13650 $16775 $15525 $13275 $11100 $15750 $14000 $22250 $19175 $11850 $10600 $11700 $10150 $13325 $11750 $15150 $12850 $15000 $13225 $17075 $14675 $14925 $13050 $18375 $16250 $25500 $22100

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 Pontiac G6 Base 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

2008 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 Pontiac G6 Base 4D Sedan 4 Cyl 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-11 $10850 $18450 $6650 $9050 $13250 $7950 $11700 $11000 $17700 $8400 Mar-11 $18100 $18600 $33500 $12200 $8450 $21100 $25600 $8175 $11600 $12400 $8500 $11950 $8950 $12450 Mar-11 $34050 $21200 $16125 $16675 $12150 $16600 $22800 $12175 $9825 $13825 $16350 $15700 $13100 $16050 $18375 $22850

Mar-11 $12500 $22900 $7800 $10700 $14850 $9150 $13350 $13050 $18900 $9900 Mar-11 $24500 $22700 $60700 $13600 $10200 $24100 $31400 $8950 $12700 $13500 $9400 $13250 $10700 $13850 Mar-11 $38700 $23650 $18600 $18550 $14450 $18850 $25275 $13225 $12450 $15925 $18625 $18000 $15900 $17950 $20025 $29500

Sep-11 $13050 $21900 $9000 $11500 $14950 $10000 $14500 $13050 $19500 $11650 Sep-11 $25000 $21800 $58900 $14600 $11400 $24600 $31600 $10850 $13000 $13800 $11750 $13300 $11750 $15100 Sep-11 $37800 $21900 $18250 $18400 $14900 $16800 $23275 $12925 $13050 $16175 $16625 $16750 $16200 $16350 $19775 $27500

Mar-12 $10800 $16500 $7200 $9750 $13550 $7600 $12700 $11850 $19050 $9400 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

Projected Figures Mar-13 Mar-14 $9350 $8000 $14400 $12200 $5800 $4925 $8650 $7200 $11600 $9750 $6550 $5200 $10300 $8600 $9600 $8200 $15350 $12750 $8300 $6675 Mar-13 Mar-14 $17800 $14800 $17650 $14700 $44200 $37600 $10725 $9050 $8450 $7000 $19550 $16350 $23300 $18400 $8000 $7400 $8100 $6900 $9200 $8000 $6800 $5600 $10700 $9100 $7900 $6900 $10000 $8350 Mar-13 Mar-14 $32250 $27750 $17450 $14550 $13925 $11950 $15925 $14325 $10200 $8600 $14000 $12450 $19725 $16775 $9900 $8525 $9400 $8150 $12200 $10075 $12375 $10650 $13400 $11725 $12450 $11000 $13600 $11900 $16200 $14000 $21900 $18700

Sep-11 $9400 $14300 $6350 $7850 $11800 $7000 $10700 $8300 $14600 $8300 Sep-11 $15500 $16300 $29100 $10300 $7800 $18200 $21000 $6700 $10200 $10800 $9150 $11000 $8550 $10650 Sep-11 $26350 $16600 $14250 $14800 $10400 $13500 $17775 $10025 $7600 $10950 $12050 $13025 $9625 $12450 $16050 $19400

Mar-12 $7750 $11900 $5100 $7350 $10750 $5150 $9450 $7450 $14250 $6900 Mar-12 $13800 $14700 $26600 $9200 $7250 $15900 $17400 $5950 $8600 $9200 $7800 $10500 $7750 $8600 Mar-12 $25100 $15200 $12450 $13900 $8075 $12800 $17200 $9200 $7125 $9375 $10900 $12025 $8025 $11400 $15450 $17900

Projected Figures Mar-13 Mar-14 $6600 $5500 $10100 $8500 $4000 $3350 $5850 $4650 $8050 $6450 $4300 $3200 $7400 $5950 $5850 $4900 $10550 $8450 $5425 $4150 Mar-13 Mar-14 $11500 $9400 $11600 $9150 $20100 $15900 $7825 $6425 $5700 $4750 $14150 $11550 $15350 $11900 $4875 $4275 $5800 $4800 $6900 $5900 $4600 $3800 $8250 $6800 $6000 $5050 $6800 $5600 Mar-13 Mar-14 $20150 $16550 $12000 $9500 $10400 $8500 $12625 $11625 $6650 $5550 $10975 $9150 $14750 $12225 $8150 $7000 $5800 $5025 $8275 $6400 $9125 $7750 $10200 $8775 $7450 $6300 $9075 $7675 $11825 $10225 $14250 $11650

2007 Sep-11 $11550 $18400 $7450 $9600 $13350 $8600 $12500 $11050 $17900 $10150 Sep-11 $18100 $19300 $34000 $13400 $9500 $21200 $26200 $8950 $11900 $12600 $10450 $12100 $9850 $13600 Sep-11 $33250 $20350 $16125 $16625 $12650 $14950 $20800 $11375 $10625 $13925 $14250 $14550 $13100 $14350 $18175 $22300

Mar-12 $9450 $14800 $6150 $8550 $12200 $6350 $11000 $9850 $17500 $8250 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

Projected Figures Mar-13 Mar-14 $7900 $6600 $12100 $10200 $4825 $4075 $7200 $5850 $9750 $8050 $5250 $4050 $8700 $7200 $7750 $6450 $12750 $10550 $6850 $5400 Mar-13 Mar-14 $13800 $11400 $14250 $11600 $25500 $20100 $9600 $7775 $7000 $5600 $16750 $13750 $18900 $14850 $5675 $4975 $6900 $5800 $8000 $6900 $5600 $4600 $9250 $7850 $6900 $5900 $8950 $7200 Mar-13 Mar-14 $24900 $20900 $14550 $12250 $12600 $10475 $14025 $12825 $8375 $7000 $12450 $10975 $18000 $15050 $9600 $8450 $7425 $6375 $10100 $8250 $10675 $9100 $11375 $10225 $9300 $8200 $11700 $9300 $14000 $11825 $17250 $14250

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 Base 4D Sedan Ford Mustang Base 2D Coupe Ford Five Hundred SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan Pontiac G6 Base 4D Sedan 4 Cyl 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 Base 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 Club Cab Dodge Grand Caravan SE Wagon Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Freestyle SEL 4D Utility FWD Jeep Grand Cherokee Laredo 4D Utility 4WD Jeep Wrangler Sahara 2D Utility 4WD BMW X3 4D SAV 3.0si

Mar-11 $9050 $14400 $5600 $7450 $11600 $6650 $10100 $8050 $14150 $6950 Mar-11 $15100 $16300 $28700 $9800 $7250 $18400 $21000 $6475 $10300 $10900 $7300 $10800 $7950 $10100 Mar-11 $27600 $17100 $14450 $14750 $10300 $14450 $19875 $10575 $8100 $11100 $14050 $13975 $10325 $13450 $16200 $20450

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2/27/12

11:51 AM

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USED CAR NEWS

March 5, 2012

TRUE COST OF INCENTIVES (TCI) January 2012

% Change ‘10-’11

$1,135

-45.77%

$12,277 $13,449 $10,363 $11,523 $9,635 $10,806 Midsize Traditional SUV $1,573 $1,487

9.55% 11.19% 12.15%

1 2 3

$23,106 $19,400 $17,396

$26,072 $20,231 $17,225

12.84% 4.28% -0.98%

TCI

$5,583

$4,408

-21.05%

$16,745 $16,946 $13,522 $15,887 $11,610 $12,290 Entry Luxury Car $3,169 $3,353

1.20% 17.49% 5.86%

$29,403 $23,085 $20,583 Compact Truck $2,275

$30,637 $24,140 $21,125

4.20% 4.57% 2.63%

$2,343

2.99%

$19,574 $15,589 $14,018 Large Truck $3,593

$19,752 $16,057 $14,765

0.91% 3.00% 5.33%

$3,598

0.14%

$24,553 $25,825 $20,600 $21,690 $19,657 $18,517 Compact Crossover SUV $1,887 $1,891

5.18% 5.29% -5.80%

1 2 3

$17,364 $14,898 $13,041

$17,366 $15,997 $13,867

0.01% 7.38% 6.33%

TCI

$2,710

$1,754

-35.28%

$17,945 $21,037 $14,880 $16,276 $13,870 $14,423 Large Traditional SUV $3,352 $3,265

17.23% 9.38% 3.99%

$36,099 $26,704 $23,203 Midsize Car $2,494

$34,032 $29,214 $22,916

-5.73% 9.40% -1.24%

$2,161

-13.35%

$15,324 $17,066 $13,587 $13,922 $12,126 $13,181 Midrange Sport Car $2,453 $2,245

11.37% 2.47% 8.70%

$42,602 $45,207 $35,943 $34,188 $28,483 $31,006 Midrange Luxury SUV $2,715 $1,521

6.11% -4.88% 8.86%

TMV does not include options

TCI 1 2 3 TCI

January 2011 Compact Car $2,093

-5.47%

Large Car

1 2 3 TCI 1 2 3 TCI 1 2 3 TCI 1 2 3 TCI

5.81%

0.21% 0.50%

Minivan

1 2 3 TCI 1 2 3 TCI 1 2 3 TCI

1 2 3 TCI 1 2 3 TCI 1 2 3

-2.60%

-8.48%

-43.98%

$46,634 $40,979 $33,703 Subcompact Car $1,151

$47,851 $40,688 $35,011

2.61% -0.71% 3.88%

$494

-57.08%

$11,585 $9,004 $8,390

$12,565 $10,019 $9,701

8.46% 11.27% 15.63%

Edmunds.com’s monthly True Cost of Incentives (TCI) report takes into account all of the manufacturers’ various United States incentives programs, including subvented interest rates and lease programs as well as cash rebates to consumers and dealers. To ensure the greatest possible accuracy, Edmunds.com bases its calculations on sales volume, including the mix of vehicle makes and models for each month, as well as on the proportion of vehicles for which each type of incentive was used. TCI data (and other Edmunds.com data products) can be viewed industrywide, import vs. domestic, by country of origin, by make, by model and by segment. True Market Value (TMV) is the transaction price for vehicles.

•

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2/27/12

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USED CAR NEWS

March 5, 2012

COMPILED BY JEFFREY BELLANT

ADESA TAKES TOP AUCTION HONORS FROM CONSIGNORS

Photo Courtesy of ADESA TOP OF THE BLOCK: Dan Kennedy of General Motors (from left) presents ADESA’s Tom Caruso and ADESA Kansas City General Manager Harold Chapman with the 2011 GM Auction of the Year award.

General Motors Co. and its captive finance arm, GM Financial Company Inc., both named ADESA auctions as their top sales.

General Motors presented the 2011 GM Auction of the Year award to ADESA Kansas City. Of the 35 GM Sponsored Auctions nationwide, ADESA Kansas City was recognized for its overall achievement in providing GM and its dealers with outstanding quality, service and value throughout the year.

In 2011, ADESA Kansas City sold more than 8,300 vehicles on behalf of both GM and Ally in the GM closed and Ally open sales.

GM Financial also named an ADESA auction as its 2011 Auction of the Year. In this case, it was ADESA San Diego. Every year, GM Financial representatives review the performance of participating auctions in a variety of categories, including customer service, marketing promotions, pre-sale activities and overall auction success to select an Auction of the Year.

The other 2011 regional winners are: • Midwest – ADESA Des Moines, Grimes, Iowa; • Northeast – Manheim Harrisonburg, Harrisonburg, Va.; • Southeast – Rawls Auto Auction, Leesville, S.C.; • Southwest – ADESA Austin, Austin, Texas.

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BSCAmerica, the parent company of Bel Air Auto Auction and Tallahassee Auto Auction, has recently launched a new website, bringing information about all its divisions and services together in a newly-designed, intuitive interface.

“Our new presence on the Internet is extremely user-friendly,” explains Michelle Nichols, BSC vice president.

“BSCAmerica is a family of companies, with divisions in banking, automotive remarketing, insurance and appraisals.

“Our new website represents all those entities, but because the major-

ity of our traffic seeks information about our auctions, the new website focuses quickly and directly on the tools our auction customers need.”

Nichols said auction inventory lists are immediately accessible from the front page of the website, making it convenient for auction customers to access inventory for all BSC Auction events.

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

USED CAR NEWS

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UCN_30

2/27/12

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•

3:55 PM

Page 1

USED CAR NEWS

March 5, 2012

Disconnected Jottings From Tony Moorby...

My hat’s off to the buyhere, pay-here industry. At a time when so many families are finding it hard to make ends meet, a good many entrepreneurs have stepped

inevitable losses that will ensue.

State Assemblyman Mike Feuer, a Democrat from Torrance, said that “This industry preys on people

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

forward to meet a demand that has bulged in our economy.

Do they charge high interest rates? Sure, the risks for repos and drop-outs who don’t take care of a car they know they’re not capable of paying for, are enormous.

But some legislators in California want to hobble the dealers’ ability to flexibly fund deals that, by their nature, are each different.

Putting limits on the way deals are structured and then cutting off the dealers’ way of being able to protect his asset will only serve to drive them out of business to avoid the

who have no other options for getting a car.” That says categorically that all dealers who fund a buy-here, payhere operation are preying on the public – what absolute gibberish! That’s the same as saying all politicians are in it for money and power, not for a desire for public service. I think that’s probably closer to the truth.

I’m willing to bet that Mr. Feuer and his Senate colleague, Ted Lieu, have never had to wonder where the next meal is coming from or suffered the daily indignity of trying to get to work without a car. California may have

C R O S S WO R D

one of the better public transport systems, but it still ain’t great. New York City probably has the best, but that was built with a Victorian ethic.

Try getting the kids to school and going to pick them up later. How about a quick trip to the grocery store if the family budget still has the money to spend?

Castigating the whole industry and making new rules that don’t make any viable sense is an easy copout that gets a politician some press and nothing else.

If these people were aware of the enabling characteristics of the car business, at any level, then their appreciation would extend to acknowledging that existing laws and frameworks are in place if they’re policed properly.

But maybe that’s too much trouble and takes a little thought. Being a “dogooder”, if you’re ignorant of the facts, rarely leads to betterment of anybody’s life. So I hope the protestations and offers of illumination by the local dealer association don’t fall on deaf ears.

Maybe Ken Shilson and his associates could get involved

Across

1. Ford wagon 5. Luxury car brand 10. Take advantage of 11. Ford brand sold mainly in UK and Europe 13. Compact executive Jaguar 15. Driveway material 17. Do poorly 18. Back __ the future!

20. Concept car 23. Seville successor 25. _____ bender 27. Drive 32. According to (2 words) 34. Lexus __

Down 1.

2.

3.

4.

Ford SUV Ford SUV DB ____ Speed often mentioned in car ads 5. Purchase 6. Medium like perception

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

Sponsored by INSURANCE AUTO AUCTIONS

By Miles Mellor

35. Aka Opirus 38. Intended 40. Web site address ending 41. Transport vehicle 42. Classic VW 45. Jaguar ___ 2 48. Film distributor and record company 50. Tracker, for one 51. Detroit’s founder 53. Mitsubishi wagon 57. Flat ___ truck 58. In the black

and prove how professional the typical member of the industry is. Are there crooks in the car business? That’s like asking, “Is the Pope Catholic?” There are bad pennies in any industry and we have rules and regulations to protect everyone including the public - if they are properly enforced. In this case the lawmakers will make it bad for the industry and even worse for the consumers.

Another legislator wants dealers to prominently display how the car’s price is determined prior to its resale, as well as the guide used to garner that information. What poppycock! The market, the day of the week, week of the month, the season of the year, whether I’ve got two of them, the color, the miles, the condition, the customer, the risk the guide book (especially at that end of the market) being a small contributor to the pricing decision. Dealers do this in their heads in a matter of seconds but it would take a lifetime to explain the process.

Let’s hope these legislators let sleeping dogs lay and allow America to go to work and build this economy to where more consumers need the buy-here, pay-here industry less and less.

1

7. Requires 8. Formula One car 9. Toyota compact 14. Hard ___ 16. Used before a vowel 21. Phased out in 2004 22. Bend shape 24. Connect 26. ____ Rover 28. Type M 100, for example 29. Dodge subcompact 30. Protective covering 31. 50,000 mile check up 33. ___ Mans 36. “___ you kidding?”

37. ___-fated, like the Edsel 39. Nervous (2 words) 43. Special attention, for short 44. Super Bowl winning QB 46. Gun, as an engine 47. Knock out, for short

Answers to this puzzle in the 3/19/12 issue. Call 1.800.794.0760 for a FREE subscription.

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Answers to the 2/20 /12 puzzle

49. Detroit state 52. Yearly payment percent 54. Floor cover 55. Relating to 56. Augusta’s state, for short

P A N D O R A B I T F I T

A S U A B B A U R U M S U F O U R T U E S A X

S A V B E N G T E T R F S B O O L E T S C

T I A N D S A B L R E Y S R E C G O B C P O O C O N S E U T S

M P R E K O T R I P U A I N D S M O S P I D E A G L I E N A N B E R U O M Y T E C O R N

Z A I T P E D A P O T A S R U K I N E N T U N E

A T Z C S A R R S

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2/24/12

11:08 AM

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UCN_32

2/24/12

11:11 AM

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“THANKS TO JASON,MY CARS ARE GETTING A WHOLE OTHER LEVEL OF ATTENTION.” Jim Allera President–River Road Auto Sales North Apollo, PA

Jason Stephenson Advertising Consultant AutoTrader.com

“In 2009, business wasn’t going so well. But after talking to

is that I’m selling 50% more cars. Spotlights, Premium listings,

Jason, I invested in the Premium package. I immediately

even Fast Ads video, they all really get my cars noticed.”

saw my search results more than double. The bottom line

To hear Jim’s incredible story, visit WeWorkForYou.com/Jim.

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