April 7, 2014
ON THE WEB: J.D. Power, DealerRater Announce Alliance
J.D. Power and DealerRater announced an alliance to integrate capabilities. The alliance will integrate DealerRater’s customer ratings and reviews of car dealerships with J.D. Power’s customer satisfaction insights via J.D. Power’s customer experience management platform. Dealers will be able to see and analyze their online reputation as reported by DealerRater side-byside with J.D. Power’s surveybased customer feedback.
Consumers Plan to Drive Cars to ‘Death’
Lengthy vehicle ownership is the new normal, even as the economy improves, according to AutoMD.com’s 2014 Vehicle Mileage Survey, with nearly 80 percent of consumers comfortable with more than 10 years or ‘until it dies’ vehicle lifespan.
Sales Near 3.5 Million
TrueCar estimates there were 3,437,000 vehicles sold in the month. The ratio of new to used is estimated to be 1:2.3 for March.
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AGs Across the Nation Go After Dealers Attorneys general across the country are using actions against dealers to make a big splash. But not all dealers are taking these moves sitting down. The New Mexico Independent Automotive Dealers Association, the New Mexico Automotive Dealers Association, six car dealers, and one motorcycle dealer filed suit againt Gary King, the state’s AG, claiming he exceeded his authority by requiring that sellers must inspect used vehicles for damage and tell customers about any damage before selling them the vehicle. In three separate lawsuits, the dealers are seeking to prevent implementation of this regulation. King said he will vigorously defend a newly approved rule affecting used vehicles that requires detailed inspections and disclosure of damages prior to sale to the public. “This regulation protects the buying public from unscrupulous dealers who would sell them a wrecked vehicle without telling them about the damage, why is that so unreasonable?”
King said in a statement. “The regulation was adopted because of ongoing problems with the practices of some licensed car dealers. We have evidence that some dealers have failed to provide disclosures when the dealer knew of the prior wreck damage; attempted to shift the burden to the customer to conduct an inspection; or failed to conduct a basic inspection that would disclose whether prior wreck damage had occurred.” King claims that many dealers say they conduct a “multi-point inspection” of the car prior to sale, but those inspections do not include inspecting for prior wreck damage or alteration to the car. The new regulation creates a minimum standard for vehicle inspections and requires dealers to disclose facts concerning the vehicle’s condition. The New Mexico IADA declined to comment on its suit at this time. King is running for governor in this year’s election against incumbent Susan Martinez. Continued on page 3
Photo by The Associated Press SUE ME: New Mexico Attorney General Gary King addresses the public.
Rush - Dated Material
Youth, Southerners Spend Tax Refunds on Cars One in four American adults say they plan to save or pay back debt with their tax refund this year. Among the other findings of a new survey by CarMax Inc., almost three in 10 people are not expecting a refund this year. Among those expecting a refund, one in six (17 percent) are likely to use the money to shop for a car. The online survey, conducted by Ipsos Public Affairs on behalf of CarMax, reveals that among those who are expecting a refund, those under the age of 35 (29 percent), parents (26 percent) and residents of the South (22 percent) are particularly likely to put their tax refund toward the purchase of a car this year. When it comes to putting
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their reimbursement toward a large purchase like a home or car, parents are twice as likely (23 percent) to say they have done so than are adults without children in their household (11 percent). Plans for spending this year’s tax refund are similar to how respondents say they have used their refund in the past. Roughly four in 10 have paid debt (44 percent), saved it (40 percent) or used it on everyday expenses, such as groceries, bills or gas (38 percent). One in five say they have used it for travel (23 percent) or home improvements (21 percent), while one in seven (14 percent) have spent their tax refund on something larger, such as a car or a house.
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April 7, 2014Ă›Ă›Ă?Ă›Ă›Â€
USED CAR NEWS
Experts See Little Effect on Values from Large Recalls By Ted Craig
General Motors Co.â€™s recall of more than 1 million units for ignition switch issues has hurt the companyâ€™s reputation, but has it hurt the resale values of those vehicles? At least one law firm claims just that. A lawsuit from Michaels Law Group, filed in Federal Court in Los Angeles, alleges that GM knew of the safety defect in 2004, but continued to build and sell the cars to the public. The class action lawsuit seeks to recover damages for all owners of the recalled vehicles for the loss of use of their vehicle, repairs and diminished value. GMâ€™s 2009 bankruptcy protects the company from liability suits. While the law firm might
find experts to argue otherwise, industry observers say prices for the affected models actually rose recently. All the units covered by the ignition switch recall are at least seven model years old. â€œTheyâ€™re not high-dollar cars at this point in their lifecycle,â€? said Ricky Beggs, Black Bookâ€™s editorial director. Many of these units sell through buy-here, pay-here dealers or stores that specialize in subprime finance. â€œThat customer is more concerned about cost and transportation,â€? Beggs said. The recalls came during tax season, which propped these values up due to increased demand. The recall itself is boosting wholesale values, said Manheim chief economist
Photo by Steve Fecht for General Motors TAKING THE CALL: GM CEO Mary Barra visits GMâ€™s Customer Engagement Center in Warren, Mich., where about 100 dedicated advisors are available to take calls regarding the ignition switch recall.
Tom Webb. provides loaners for affect- ditional defleeting seen in It increased the demand ed drivers. This, along with March and restricted supfor in-town rentals as GM a late Easter, delays the tra- ply at auction.
AGs Go After Dealers Across Nation Meanwhile in Ohio, Attorney General Mike DeWine introduced a new tool to help consumers buy used cars. The Attorney Generalâ€™s Used Car Buyer Checklist covers purchasing, maintenance and contract issues. The Used Car Buyer Checklist provides guidance to consumers on a number of topics including how to determine if a car dealer is reputable, how to determine the condition of a used car, how to research the vehicle history, how to ensure a fair purchase price and how to review written contracts. The checklist also contains tips on car repairs. This new tool was created directly in response to consumer complaints. â€œAny time a consumer invests in a car, it is a big financial decision,â€? DeWine said in a statement. â€œThis checklist will equip consumers with information we hope will save them time, money, and hassle.â€? In 2013, motor vehicle complaints were the most frequently reported to the Ohio attorney generalâ€™s office. Ohio consumers filed 5,577 last year regarding all sorts of motor vehicle issues, with the top problems reported as issues with car titles, misrepresentations while purchasing cars, and car maintenance and repairs. DeWine is running for re-election this year. He defeated Richard Cordray for the office in 2010. Cordray currently heads the Consumer Financial Protection Bureau.
In New York, six auto dealers with deceptive and misleading advertising practices have agreed to settlements with Attorney General Eric Schneidermanâ€™s office. The dealerships have pledged to reform their advertising practices; meanwhile, the attorney general has announced his intention to file suit against a seventh dealer on related charges. The dealerships will pay fines ranging from $7,500 to $15,000. The dealerships widely promoted sale and lease prices that were illusory because they reflected discounts or rebates that were not available to most consumers, and thus, were not the actual sale or lease price. At the seven dealerships, the advertised prices reflected supposed discounts or rebates such as: Ć€É&#x; Ć†'#&#.,3Ć‡É&#x; ,.ĹťÉ&#x; 1"#"É&#x; 1-É&#x; available only to certain current or former military personnel Ć€É&#x;Ć†)&&!É&#x;!,/.Ć‡É&#x;,.ĹťÉ&#x;1"#"É&#x; was available only to recent college graduates Ć€É&#x;Ć†&-É&#x;)(+/-.Ć‡É&#x;),É&#x;Ć†)'*.#.#0É&#x; leaseâ€? rebate, which was available only to consumers who had leased a vehicle made by a competing manufacturer Ć€É&#x; Ć†É&#x; &&))(É&#x; -"Ć‡É&#x; #-)/(.ĹťÉ&#x; which was available only to consumers who financed their purchase In some cases, the illusory discounts and rebates totaled as much as $3,000, so the actual price of the vehicle was significantly more than advertised. Theses six dealerships entered
â€“ Continued from page 1
VOTE FOR ME: New York Attorney General Eric Schneiderman recently announced a settlement with six car dealers in a lawsuit concerning advertising issues. Schneiderman is running for re-election this year.
into settlements: Ć€É&#x;&(3É&#x;)!ĹťÉ&#x;ĹˇĹˇĹ°É&#x;(.,&É&#x;0ĹşĹťÉ&#x; Albany Ć€É&#x; ))3,É&#x; "0,)&.ĹťÉ&#x; ĹąĹ˛ĹˇÉ&#x; )& É&#x; Road, Albany Ć€É&#x;/&É&#x;"0,)&.ĹťÉ&#x;ĹˇĹ¸ĹľÉ&#x;(.,&É&#x; Ave., Albany Ć€É&#x;)&-.#(É&#x;/.)É&#x;,)/*ĹťÉ&#x; (ĹşĹťÉ&#x;ĹąĹśĹˇĹąÉ&#x; Central Ave., Albany Ć€É&#x; #É&#x; #--(ĹťÉ&#x; ĹąĹ˛ĹľĹ¸É&#x; (.,&É&#x; 0ĹşĹťÉ&#x; Albany Ć€É&#x; **)(É&#x; ",3-&,É&#x; *É&#x; )!É&#x; 'ĹťÉ&#x;Ĺ¸ĹľĹľĹśÉ&#x;..É&#x;)/.É&#x;Ĺ˛Ĺ˛ĹťÉ&#x;,(0#&& The investigation also cited some of the dealers for other problems with their ads, and the settlements require the dealers to change those practices, too.
These problems included: Ć€É&#x;-#(!É&#x; )).().-É&#x;),É&#x;-.,#-%-É&#x;.".É&#x; contradict, confuse or materially modify a principal message of an ad; Ć€É&#x;#&#(!É&#x;.)É&#x;&,&3É&#x;(É&#x;)(-*#/ously provide certain required disclosures for lease or finance terms, such as the amount or percentage of any down payment and the annual percentage rate: Ć€É&#x; -.,#.#(!É&#x; É&#x; ,.É&#x; ),É&#x; *,#É&#x; .)É&#x; É&#x; â€œqualified buyerâ€? or â€œqualified lesseeâ€? without disclosing such qualifications; Ć€É&#x;-#(!É&#x;É&#x;*,#(.É&#x;-#4É&#x;.".É&#x;#-É&#x;-)É&#x;-'&&É&#x; as to not be easily readable. Schneiderman is also currently running for re-election.
3/31/14 5:12 PM
Â Ă›Ă›Ă?Ă›Ă›Ă›April 7, 2014
USED CAR NEWS
NEWS BRIEFS Feds Plan Ally IPO
nancing for receivables purchased Ally Financial Inc. has launched an primarily in the month of March. initial public offering of shares of its common stock. The shares will be offered by the NextGear Capital Offers Training NextGear Capital has announced U.S. Department of the Treasury as part of its planned exit of its invest- the creation of its Ambassador Proment in Ally. Treasury is offering 95 gram for its field representatives. Through this program, the commillion shares of Ally common stock pany will partner with industry exat a price per share ranging between perts to provide certified training $25 and $28. Treasury also granted the un- modules to further develop its field derwriters a 30-day option to pur- representativeâ€™s dealership business chase up to an additional 14,250,000 and industry knowledge. As part of the Ambassador proshares to cover over-allotments, if any. Ally stock is expected to gram, NextGear Capital is providing trade on the New York Stock Ex- dealer training through various state change under the symbol â€œALLY.â€? independent automotive dealer associations. The company is nearing the completion of its first Ambassador training module, which is based CPS Closes Securitization Consumer Portfolio Services Inc. on the National Independent Autoclosed its first term securitization mobile Dealers Associationâ€™s Certified Master Dealer program. in 2014. The transaction is CPSâ€™ 12th senior subordinate securitization since the CarMax Moves into New York beginning of 2011. CarMax Inc., officially opened its In the transaction, qualified instifi rst store in Rochester, N.Y. tutional buyers purchased $180 million of asset-backed notes secured by automobile receivables purchased by CPS. The 2014-A transacC R O S S WO R D by Myles Mellor tion has initial credit enhancement consisting of a cash deposit equal to PAGE 21 1 percent of the original receivable pool balance. This further sale is intended to provide CPS with long-term fi-
The store, located at 3600 West Henrietta Road, is the companyâ€™s first store in New York state, and will stock more than 250 used vehicles.
CR Names Best Used Cars
Consumer Reports compiled a Best & Worst Used Cars list for model years 2004 through 2013, available in the magazineâ€™s annual auto issue, which is on newsstands now, and at the 2014 Autos Spotlight page on ConsumerReports.org. Highlighted are the best small cars, sedans, and SUVs available in four price ranges: from $10,000 or less up to $25,000. Each performed
well in CRâ€™s testing when new and had above-average reliability for the model years shown, based on CRâ€™s Annual Auto Survey. And all models came standard with electronic stability control.
Consumers Put Car Payments First
Consumers put a higher priority on making their car payments than any other type of credit. A new TransUnion study found that consumers have placed an emphasis on paying their auto loans before their mortgages and credit card payments - by a wide margin - since at least 2003.
Published By General Media LLC USED CAR NEWS (ISSN 1555-7413) is published at 24114 Harper, St. Clair Shores, MI 48080 Phone: 586-772-5200 or 800-794-0760 Fax: 586-772-9400 www.usedcarnews.com Charles M. Thomas Founder (1947-2002) Lynda R. Thomas, Publisher Colleen Fitzgerald, General Manager Editorial: Ted Craig, Managing Editor Jeffrey Bellant, Staff Writer Gabriel E. Camero, Intern Contributing Writers: Ed Fitzgerald, Jenny King, Sheila McGrath Columnist: Tony Moorby Advertising: Shannon Colby, Account Manager Megan Frump, Account Manager Marie Hingst, Account Manager Circulation: Helen Thomas 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.
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April 7, 2014 ÝÛÛ
USED CAR NEWS
Data Mining Finds Leads On Social Media Sites
By Gabriel E. Camero
Data mining is the hot trend today, but the auto industry lags in this area. The industry’s missed opportunity of using social media to generate and maintain sales leads is the main focus of a recent report by CMO Council, sponsored by the automotive social media intelligence company Hoojook. “The whole idea of integrating social with the sales pipeline is something that companies need to think about and need to develop best practices in and around,” said CMO Council member Dave Murray. While some companies use an online presence for mass advertising or review management, the report recognized a lack of social media data mining and analysis for one-on-one marketing in the automotive “ecosystem.” Since 2012, Hoojook is the only company focused on providing such services to the auto industry. The CMO Council report cited a few points from previous research including two items from a 2013 study by Dealer.com and GfK Automotive Research. According to that study, 38 percent of consumers consult social media before buying a car and 23 percent post their experiences with dealers online. Social media word-of-text can “motivate people to drive beyond their normal radius in order to purchase a car from a dealership they’ve seen reviewed positively,” according to a quote by Kathryn Kennedy, vice president of Online and Direct Marketing for AutoNation. The report also considered how Americans feel connected to their cars and view them as extensions of themselves. Companies could exploit this emotional link by using social analytics and implementing a one-onone marketing campaign to main-
tain loyal customers and attract shoppers. The used-car business could use the same tactic. “The impact of conversation, reviews and endorsements on social (media) and on review sites is being shown to be very critical to dealers,” Murray said. Companies like Hoojook use automated processors to record activity, especially posts, on social media sites. Hoojook now monitors photos and videos, too, after an employee discovered a picture of a shopper’s potential purchase on Pinterest, without text. “Pictures can also give you a lot of ideas and leads, you shouldn’t only rely on text,” said Hoojook CEO Shauli Chaudhuri. Hoojook’s services are on a Webbased platform that is customizable to what the client wants and what they can afford. For instance, for automated search engine optimization services for a single dealer it would be $100 a month. This price could fluctuate if they’re part of a dealer group or if they add on another feature. Hoojook has set modules, but they’re also open to allowing clients to customize their own module and pilot it for the first month free. With the full platform, clients would be able to automatically manage reviews; improve SEO; start social media and web campaigns; and generate leads. Using such programs can make generating a lead on social media as easy as a web search. These can be filtered further by location, possible car interests and what point the potential customer is at in the buying process. “The whole purpose of doing this is to make it easy,” Chaudhuri said. “We don’t want people to run away from these things because they are afraid of technology.”
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ÛÝÛÛApril 7, 2014 IAG_AprUCN-TECH vert.pdf
USED CAR NEWS 1
State Allows Aftermarket Parts By Sheila McGrath
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Automotive aftermarket businesses are celebrating a victory in Maryland now that proposed regulations on aftermarket crash parts are headed back to the drawing board. On March 15, Maryland’s House Economic Matters Committee voted 16 to 7 to give the proposed regulations an unfavorable recommendation. Maryland House Bill 574 and Senate Bill 487 would have kept car insurance companies from requiring repair shops to use aftermarket crash parts instead of more expensive parts from the original equipment manufacturer. The use of aftermarket parts would have been allowed if the car’s owner consented in writing to their use. The bills would have also prohibited insurers from mandating parts procurement processes or specifying vendors. According to an analysis by the Maryland General Assembly’s Office of Legislative Services, 44 states have laws governing the use of replacement crash parts, and seven of those states require notice and consent on the part of the consumer if aftermarket parts are used. The Maryland proposal was supported by groups like the Washington Metropolitan Auto Body Association, which lobbied for passage of the bill. They argued that what’s in the best interests of insurance companies may not be in the best interests of consumers, and that use of aftermarket parts in newer cars might invalidate new-car warran-
ties. Most states that regulate the use of aftermarket parts do so for the first three to five years of a car’s life, when it would still be under warranty. There were also a number of organizations, including the Coalition for Auto Repair Equality and the Automotive Body Parts Association, lobbying against the bill. Sandy Bass-Cors, executive director of the Coalition for Auto Repair Equality, took issue with the notion that aftermarket parts are inferior simply because they’re less expensive. Bass-Cors said requiring someone to sign for aftermarket parts plants a seed of doubt in their mind, pushing them to buy company-labeled parts that are more expensive. The aspect that is so frustrating, she said, is that parts sold in the aftermarket and parts sold by car companies are often made on the same assembly line. “They’re not making their own parts, so the legislation is really based on a falsehood,” she said. “They lead people to believe that General Motors or Ford or Chrysler is actually manufacturing their own part and therefore it’s better, and that’s not the case.” She believes laws like the one proposed in Maryland are typically instigated by body shops that stand to make more money using parts made by original equipment manufacturers. A similar bill had been introduced in Maryland in 2013, but it, too, died in committee. The measures were reintroduced in January of this year.
Dealer Pays for Ignoring Warning The Federal Trade Commission has charged an Arkansas auto dealer, Abernathy Motor Co., and its two principals, with failing to display a “Buyers Guide” on used vehicles offered for sale. Each violation could result in a civil penalty of up to $16,000. The FTC’s Used Car Rule specifically requires used car dealers to disclose whether the car comes with a dealer’s warranty or is being sold “as is.” If the car is sold with a dealer’s warranty, the rule requires the Buyers Guide to list its basic terms and conditions, including the duration of coverage, the percentage of total repair costs to be paid by the dealer, and the exact systems covered by the warranty. In January 2013, the FTC announced that its Southwest region office had warned 11 used car dealerships in Jonesboro, Ark., that their sales practices violated the Used Car Rule. All but Abernathy Motor Company subsequently came into compliance.
Abernathy Motor Company has four used car sales locations in Arkansas: two in Blytheville, one in West Memphis, and one in Jonesboro. The FTC’s complaint also names the company’s owners, Wesley Abernathy and David Abernathy, and an affiliated dealership, Ab’s Best Buys AMC Inc., as defendants. According to the complaint, the FTC visited the Abernathy dealership in Jonesboro in November 2012, and found that none of the vehicles offered for sale displayed a Buyers Guide. The agency informed the dealership of that fact, and sent the dealership a copy of the Guide and the FTC publication, A Dealer’s Guide to the Used Car Rule. In May 2013, the FTC re-visited the Abernathy dealership, and visited Ab’s Best Buys AMC Inc., and found both dealerships were offering used vehicles for sale that did not display a Buyers Guide. The FTC received assistance from Legal Aid of Arkansas in this matter.
3/31/14 2:45 PM
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PAGE 8 - FLEET/LEASE FOCUS
Residuals Will See Big Drop Except in Trucks, Subcompacts By Jeffrey Bellant
LAS VEGAS – Most usedvehicle segments will see steep declines in residuals as supply increases in the marketplace over the next few years. Forecasters offered their projections for used-car residuals in a variety of segments during the recent Conference of Automotive Remarketing. One segment won’t see a big drop, however. Rene Abdalah, of RVI Group, expects a decline of just above 3 percent on subcompact prices in 2014. “It’s not a big drop, just a small correction,” he said. Kelley Blue Book’s Eric Ibara said subcompacts are facing challenges from larger vehicles that many times come close to matching the fuel economy of the smaller units. His forecast assumes stable fuel prices, which also affect subcompact residuals. Minivans are one of the
segments that will have the biggest residual declines in the used-car market, Abdalah said, because there will be an increase in supply every year for the next four years, Abdalah said. Black Book’s Ricky Beggs said vehicles depreciated at below average rates for the past few years. In the calendar year 2011, the annual depreciation for the overall used-vehicles market was 7.7 percent, followed by 12.4 percent in 2012 and 12.8 percent. Normal pre-recession levels would be declines from 15 to 17 percent for annual depreciation, Beggs said. In 2013, pickup residuals dropped 5.8, compared to the 12.8 of overall market. “That goes to show you how much interest and demand there is in the full-size pickup truck market,” Beggs said. For 2014, Black Book forecasts a 13.3 percent drop in residuals for the overall market, but only a 9 to 10.5 per-
Photo by Jeffrey Bellant CRUNCHING NUMBERS: Some of the top analysts in the automotive industry offered their predictions on residuals for various auto segments during the Conference of Automotive Remarketing.
cent dip for full-size pickups. “So that’s still great retention and a better-than-industry average for full-size pickups,” Beggs said. He said the retention levels for compact pickups would
jump higher than full-size trucks. A stronger economy, refreshed truck models from manufacturers and no anticipated jumps in the fuel prices are factors in the
truck forecast. Laurence Dixon of NADA Used Car Guide, expects a decline in prices for the luxury car market. One reason for a projected Continued on page 10
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~Â‡Ă›Ă?Ă›Ă›April 7, 2014
USED CAR NEWS
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â€“ Continued from page 8
dip in values is the migration of buyers from the late-model used market to new cars, he said. â€œLuxury prices declined last year significantly as you come up in price,â€? Dixon said, â€œwhile compact luxury car prices essentially remained flat.â€? Improving employment, home prices and other economic factors are not enough to offset the increased supply. Lexus and Audi, however, continue to have strong retention values, while domestics lag behind, Dixon said. Kelley Blue Bookâ€™s Ibara said
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many vehicles in the mid-sized segment (including vehicles like Nissan Altima, Toyota Camry, Honda Accord and Ford Fusion) are down year-over-year. â€œIn fact, the mid-sized sedan segment is down 10 percent (in the first two months of 2014),â€? Ibara said. â€œThatâ€™s not a good sign.â€? Incentive spending on several of these top nameplates has exceeded $3,000 per unit. Eric Lyman of ALG said values for utilities â€“ like other segments â€“ will continue to deteriorate as supply goes up over the next few years.
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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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~Ă›Ă?Ă›Ă›April 7, 2014
USED CAR NEWS
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GM FINANCIAL NAMES RAWLS AUTO AUCTION 2013 AUCTION OF THE YEAR FINANCIAL FORT WORTH, TEXAS February 25, 2014 â€“ GENERAL MOTORS Auto COMPANY, INC. (â€œGM Financialâ€? or the â€œCompanyâ€?), named Rawls Companyâ€™s the of Auction, Leesville, S.C., 2013 Auction of the Year as part program. Excellence of Auction nationwide annual its annual GM Financial announced the Auction of Excellence winners at auctionsâ€™ Auction Summit in Dallas, Texas. After reviewing all 44 participating marketing performance in a variety of categories, including customer service, Financial GM success, auction promotions, pre-sale activities and overall representatives selected Rawls Auto Auction. it seem â€œThe road to auction of the year is a difficult one. Rawls makes Solutions. relatively simple,â€? said Brad Bollman, vice president Remarketing force in the â€œThroughout our relationship with Rawls, they are a consistent awareness brand and marketing in excellence rankings. They have shown can see the throughout the years. From the moment a unit is consigned, you process.â€? care Rawls takes with getting our vehicles through the auction This is Rawlsâ€™ fifth Auction of the Year award, receiving the recognition 2006, 2009, 2010 and 2012.
region in each Rawls received Auction of Excellence awards for the Southeast Auction quarter for 2013. As the Southeast regional winner, Rawls Auto of the Year Auction the for recipients award regional competed with four other honor.
PEOPLE IN THE NEWS KAR Moves Top Managers
KAR Auction Services Inc. recently announced some top management changes. Don Gottwald will fill the newly created position of KAR chief operating officer. He has served as CEO of Automotive Finance Corp., KARâ€™s floor planning arm, since 2009. Jim Gottwald will Hallett have responsibility for all KAR business units and related subsidiaries, including ADESA, Insurance Auto Auctions and AFC. He will also oversee all support functions, such as human resources, corporate development, enterprise optimization and client services. Gottwald will direct the strategic and operational leadership of these businesses as well as long-term alignment and integration enterprise wide. KAR CEO Jim Hallett will focus on the future of KAR and the automotive remarketing industry. In addition, he will enhance relationships with customers from all of KARâ€™s business segments. Hallett will also identify and lead the companyâ€™s strategic growth and innovation initiatives. John Hammer will assume the role of CEO and president of AFC. He was promoted to AFC president and chief operating officer in 2013. He joined the company in 2009 as chief operating officer. Hammer will continue to report to Gottwald. Prior to AFC, Hammer held senior management roles for more than a decade at various subsidiaries of GMAC Financial Services. He has also served as a general manager at AutoNation and held a management role at Mercedes Benz Credit Corp..
Black Book Expands Role
Black Book announced that Jared Kalfus, vice president of data licensing, will expand his role to also oversee the companyâ€™s Lender Solutions division. With nearly 20 years of experience in the automotive industry, Kalfus has served in a variety of sales and management roles for leading brands. He joined Black Book in June 2012, where he began his tenure as vice president of automotive licensing. Kalfus will remain responsible for overseeing the national sales team focused on licensing Black Book data to automotive OEMâ€™s, auctions, VARâ€™s, dealerships, marketing companies and others that serve the automotive industry, while also adding responsibility for the Lender Solutions team.
Banks Name Auto Execs
A pair of banks recently filled positions that oversee automotive and dealer financing. Ally Financial Inc. has named Jeffrey Brown, currently senior executive vice president of finance and corporate planning, to the role of president and CEO of the dealer financial services business. In this role, Brown will have oversight for the companyâ€™s leading automotive finance, insurance and auto servicing operations. He will continue to report to Ally CEO Michael A. Carpenter. Jeff Following a career of more than Brown 30 years with Ally and its former parent, William (Bill) Muir, Ally president and current head of the Dealer Financial Services business, has elected to retire by year-end. Muir and Brown are committed to an orderly transition of responsibilities over the coming months. Brownâ€™s current financial responsibilities will be transferred to Ally chief financial officer Chris Halmy. With this move, Halmy will have responsibility for all of Allyâ€™s finance, treasury and capital markets activities. Brown was appointed senior executive vice president of finance and corporate planning in June 2011. Brown joined Ally in March 2009 as corporate treasurer and, prior to this, he was the corporate treasurer for Bank of America. Also, Bank of the West announced a key leadership change in its Consumer Finance Division. Mark Beecher, executive vice president and head of sales and marketing for the bankâ€™s indirect lending in the automotive, marine and recreational vehicle sectors, will retire on May 1. With Beecherâ€™s retirement, Michael Lax, currently senior vice president and head of Dealer Financial Services at the bank, will succeed him. As part of this move, Andrew Hein will assume Laxâ€™s responsibilities as the new head of Dealer Financial Services. Lax, who has had a 30-year career in the financial services industry, joined Bank of the West in 2007. Previously, he spent 19 years with Citi in a number of business development and managerial roles for its dealer-related business lines. Hein joined Bank of the West in 2012 as manager of the auto team in Dealer Financial Services, where he has been responsible for building a team to support the bankâ€™s growing auto flooring business.
3/28/14 3:32 PM
3/27/14 10:35 AM
~ÛÝÛÛApril 7, 2014
USED CAR NEWS
RETAIL MARKETS NEW MEXICO
Marc Powell, President, Recarnation, Albuquerque, N.M.: “We’ve been open for 14 years but two years under our new name. We were previously called The $5,000 Car Store. “Our single location has about 100 cars in inventory. We sell about 50 to 60 vehicles a month. “Our vehicles mostly come from auctions, primarily Manheim sales around the region. “We do 80 percent buyhere, pay-here and 20 percent regular financing. For our buy-here, pay-here customers, our average down payment is $1,500 with an average $350 payment for 30- to 36-month terms. “The vehicles are 75 percent cars and 25 percent trucks and SUVs. 70 percent of these are domestic, 30 percent are import. “Our model years are 2004 forward, I would say 2004 to 2010 is really our sweet spot. “Our average mileage is about 85,000 and our average retail price is $9,500.
“We extensively recondition our vehicles before putting them on the lot. We put a new timing belt, full tune-up, new tires, new breaks, we refresh the paint and body - we call it a “life Xtend.” Our average reconditioning price is $2,500 a car. “Everybody tells me I’m out of my freakin’ mind. “We have an 18,000-square-foot garage and we do everything from new transmissions and engines to paint and body work. There are 19 bays, we do a lot of service for a lot of folks. “We also provide service to the public. “We’ve been awarded the 2013 New Mexico Independent Dealer of the Year. Recarnation also offers rental cars and title loans. “We obviously advertise a lot on the Internet, social media and television. “We also target niche markets – we sponsor all of the public high school athletic facilities so we advertise in all the gyms and all the soccer fields. We have a single contract with the district
Compiled by Gabriel E. Camero and we’re in all of their facilities. “We recently sold a 2003 Volkswagen Passat with 93,000 miles for $9,500 with $2,500 down. They also took an 18-month 18,000 mile extended service program.”
Adam Bufano, General Manager, Earthycars, Williston, Vt.: “The company has been running for 20 years and we currently have one location. “Andy Bonfigli, the owner, and his brother Mark were our founders. They started the original website for Dealer.com, Earthcars.com. The idea behind Earthcars. com wasn’t originally meant to be green, but that’s what it’s been morphed into. “We’ve had mostly high MPG cars on the lot. We carry a lot of Priuses, Corollas, Fits, Civics stuff that gets high gas mileage. “We have trucks and SUVs but we have a lot more good gas mileage cars. We probably have the largest used Prius selection in the area, just outside of Burlington,
other than the Toyota dealer. “We’re called Earthycars now because Earthcars is the name of a new Dealer. com website to help the public make more green transportation choices. “We have around 50 vehicles in stock and sell around 20 a month. “Our inventory is probably 70 percent cars, 5 percent trucks and 25 percent sport utility vehicles. “Our common sport utility vehicles are RAV4s, Highlanders and CRVs. “About 99 percent of our inventory is imported from Japan and Germany because they’re more reliable. Pretty much all my cars are Japanese; we have primarily Toyotas. “The average model year on our lot is around 2008 and the average mileage is 60,000 miles. The average retail price is $10,000. “We get our vehicles specifically from ADESA Boston, Southern Auction in Connecticut, ADESA New Jersey and Manheim New Jersey. For the most part we just
do regular finance. We just signed up with a subprime so we haven’t really done it yet but we’re going to try implementing it sometime in the next couple of weeks. “We recondition our vehicles at our five-bay service center. “It’s hard to give an average price of recon per car because most of the cars we try to get don’t require much stuff. “I mean a couple hundred bucks, but you know then there are ones that take a lot. “Taking that into account, I’d say the average cost is somewhere between $700 and $1,000. Our service center services our customers and is open to the public as well. “We do Internet marketing for the most part and radio, not much print. “I just sold a 2009 Honda Fit yesterday (March 25) with 90,000 miles. The guy came in Saturday, test drove it, wanted a couple of things fixed, I fixed them on Monday and he picked it up yesterday; he paid with a check for $9,895.”
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3/28/14 4:53 PM
3/31/14 3:28 PM
~ÛÝÛÛApril 7, 2014
USED CAR NEWS
WHOLESALE MARKETS ALABAMA
Kelly Terrell, general manager, Deanco Auto Auction, Dothan, Ala.: “This auction, as Deanco, has been here since 2002. “We have six lanes, but we’re typically running three. “Volume is actually a little bit down. It seems our dealers are keeping more on their lots (instead of bringing them to sale). Recently, our average sale will run about 320 cars. “Sales percentages have been huge. They are 65 to 70 percent. Those are up from last year. “To be honest, it seems like we’re selling almost the same number of cars (because of the percentages). “We’re drawing about 250 dealers in the lanes. That’s about a 20 percent increase from this time last year. I just think dealers are searching further out to find inventory. “Dealers are coming from Alabama, Georgia and Florida. That’s primarily the areas they are coming from. But we also have dealers that travel from other
parts of the United States, too. We have a dealer that comes down from New Jersey who goes down to Orlando and then works his way back up to us.” “Right now, dealers seem pretty happy. They’re selling cars. “We’re not having the giant peaks that we’ve had in the past, but we are seeing a steady flow. “Last year, continuing into this year, we’re not getting the big peaks and dips. “We’re mostly dealer consignment. It’s about 90 percent dealer consignment here. “Our (non-dealer consignment units) are mostly credit union vehicles, repossessions, title pawns, etc. Those have been pretty steady actually. “We also run an in-op sale every week. Depending on what is happening, we run anywhere from 20 to 50 units. Those sell well. “We also offer online bidding through LiveBlock. “Trucks are really hot right now. It doesn’t matter if it’s two-wheel or fourwheel drive, both of them
Compiled by Jeffrey Bellant sell well here. If you’ve got a truck, come here first. “I think the vehicles that haven’t met expectations are the low-dollar pieces because we didn’t have that surge during tax time.”
Robert Fahey, co-owner, Value Auto Auction, Crooksville, Ohio: “We just had our 10th year anniversary. “We run all four lanes usually. Sometimes we’ll run three, but we try to run all four. “Our volumes are up over last year. We’re running about 300 units. The volume is probably up 15 percent from last year. “Sales percentages are also up over last year, monthto-month, by more than 12 percent. “We had 192 dealerships represented (with a higher number of bidders) at a recent sale. So buyers are up 75 compared to this time last year. “We’re drawing them from Southeastern Ohio to Columbus, up to Cleveland and all the way down to
West Virginia. “Dealers’ moods have been pretty good this year. But we had a hard winter and a lot of bad weather, so there had been complaints about that. “Tax season buying has made them forget about that hard winter. “We are mostly a dealer consignment sale. But we do sell some repossessions. “Our repo cars have increased 20 units monthover-month from this time last year. “But the non-dealer consignment only makes up less than 5 percent of our total volumes. “The average price coming through the lane is about $3,950. That’s up almost a grand from this time last year, about $900. “We’ve really concentrated on some OVE and Simulcast stuff, which brings in a little better vehicle and that brings the price up. “Plus, we’ve been concentrating on dealers who bring in really nice cars to sell. “We’re getting ready in April to have our specialty sale. That’s going to be
April 17. “For that specialty sale, we’ll have right around 100 units. Those will include motorcycles, boats, travel trailers, motorhomes – stuff like that. “We have that sale twice a year. So we’ll have our second one at the end of summer, right before the fall season hits. “Our trucks and sport utilities have been strong, especially in the import (segment) of sport utilities. The trucks, which have been mostly domestic – though there are imports – have also been strong. “The ones that are struggling are the very low-end cars, vehicles that are probably going to the salvage yard. I think the reason for that is China has been slowing down in buying scrap. They had been buying a lot of U.S. scrap (metal). “We’re just finishing up a building campaign where we’re adding more offices, new computer systems and adding more people in the transportation department. “We’re actually in a growth mode for 2014.”
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3/31/14 4:51 PM
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ACTUAL WHOLESALE AND PROJECTED RESIDUAL VALUES APRIL 2014
SOURCE: BLACK BOOK
2012 MODELS Domestic Cars Buick LaCrosse 4D Sedan Cadillac CTS 3.6 4D Sedan Chevrolet Cruze LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 Base 4D Sedan Chrysler 200 Touring 4D Sedan Ford Focus SE 4D Sedan Ford Mustang Base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln MKS 4D Sedan Import Cars Acura TL base 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan 2.4 Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Galant ES 4D Sedan Nissan Altima Base 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra Base 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Trucks BMW X3 XDrive28i 4D SAC Cadillac Escalade Base 4D Utility AWD Cadillac SRX Luxury 4D Utility AWD Chevrolet Colorado LT Crew Cab 4WD Z85 Chevrolet Equinox LS 4D Utility FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D Utility 4WD Dodge Grand Caravan SE Wagon Ford Edge SEL 4D Utility Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Flex SEL 4D Utility Honda CR-V LX 4D Utility AWD Honda Odyssey LX Wagon Honda Pilot EX-L 4D Utility 4WD w/RES
Apr-13 22300 28000 12700 12900 18450 13350 13000 17100 18400 24100 Apr-13 25600 30200 62800 16100 15250 29800 36200 11800 12900 14200 11900 15650 13600 16200 Apr-13 34700 49450 29800 20800 18300 20975 30100 15925 22200 18200 28250 21250 21875 19100 20000 29950
Oct-13 21350 24300 11700 11450 17000 12100 12000 15800 17000 23600 Oct-13 24000 26800 56600 14800 13350 29200 35800 12000 12350 13650 11500 14950 11950 14650 Oct-13 32850 46450 28000 20750 16500 20100 29800 15200 21650 16300 27000 20650 19400 17850 19850 27850
Apr-14 19000 22000 10950 11000 17750 11600 10900 14700 15700 20100 Apr-14 21600 25250 53800 14200 13000 25800 31600 11200 11550 12850 10550 14600 12350 14450 Apr-14 29700 42400 26300 19700 13900 19375 27400 14100 20525 16150 26725 20625 20325 17650 17900 27250
Projected Figures Apr-15 Apr-16 16550 14150 18675 15400 8725 7575 9000 7975 13350 11375 9400 8050 8850 7600 12550 11275 12875 11150 16950 14850 Apr-15 Apr-16 18425 15850 20100 16750 45025 38100 12225 10875 10250 8725 22250 19550 26800 22375 8950 7650 9675 8450 10750 9350 8550 7475 11575 10275 9725 8525 12225 10475 Apr-15 Apr-16 24950 21050 36225 30875 22325 19550 16975 14925 10975 9400 15975 14250 23200 20475 9650 7750 15100 13050 12900 10950 20825 17600 15975 13900 14675 12600 14225 12575 14975 13175 22725 19800
Apr-13 14900 18100 8300 10150 13350 10200 13600 15000 17700 9450 Apr-13 20600 20000 44900 13000 9900 22600 28000 9200 10700 12000 9850 12550 10700 13200 Apr-13 26800 39550 24950 17025 14200 18125 23450 13225 11525 18000 14825 18125 17000 17600 15450 14200
Oct-13 13700 17900 7250 8700 12900 8650 12350 13500 17200 8750 Oct-13 19400 18350 38150 11900 8600 22200 28000 8600 9800 11100 9400 11650 9400 11650 Oct-13 24600 36800 23550 17450 12275 17400 22825 12275 11000 17200 12700 16850 16300 17425 14250 13850
Apr-13 17000 24600 11350 11450 16600 11400 15100 10950 16500 21900 Apr-13 23000 23200 52300 14500 13750 26000 32000 10500 11800 13100 10600 14050 12100 15000 Apr-13 31600 44050 27650 18925 16450 19550 26875 14600 21375 16150 27100 19325 19975 17150 18150 27200
Oct-13 15400 21550 10450 10050 16150 10550 13800 10200 15050 21300 Oct-13 21400 21050 45400 13300 12000 25600 31600 10200 11050 12350 10250 13050 10650 13800 Oct-13 29650 42300 24850 19250 13900 18925 25750 12900 20350 14300 25800 18925 18950 15600 17200 24450
Apr-14 13600 18950 9900 9200 15800 10400 13100 9100 13850 22300 Apr-14 19300 19400 42800 12650 11750 22000 27600 9500 10300 11600 9200 12500 10900 13100 Apr-14 26700 38450 23050 18150 12100 17525 23300 11450 18100 13450 24125 18400 17100 15200 15900 24000
Projected Figures Apr-15 Apr-16 11650 10075 14725 12350 7725 6625 7550 6625 11450 9650 8000 6825 11475 10250 7375 6300 11100 9400 16775 13875 Apr-15 Apr-16 15875 13625 15775 13300 36525 30850 10775 9450 8800 7375 19325 17000 22300 18300 7500 6325 8350 7200 9350 8025 7325 6350 10075 8975 8550 7475 10075 8525 Apr-15 Apr-16 21450 17850 31375 26350 18850 16125 15125 13225 9150 7725 14575 12925 19750 17225 8400 6700 13125 11225 10800 8950 18450 15350 13875 12000 13050 11150 12675 11175 13150 11400 19425 16525
Apr-14 7600 13250 5200 7350 10650 5550 9050 8350 15100 6600 Apr-14 15800 13650 30400 10000 6950 16000 17600 6300 8300 9200 7100 9350 8250 9350 Apr-14 17900 28950 14100 15000 7950 13875 19800 8950 7900 11650 9600 12575 13025 6550 11100 10300
Projected Figures Apr-15 Apr-16 6350 5400 10375 8475 4475 3875 5625 4725 8675 7250 3825 2975 8125 7050 6275 5200 11025 9100 5125 4250 Apr-15 Apr-16 11550 9475 11200 9225 25375 20875 8100 6950 5625 4575 13700 11775 14650 11675 5200 4200 6250 5250 7175 6050 5550 4650 7575 6575 6375 5450 7325 6025 Apr-15 Apr-16 14575 11975 22075 17550 11675 9525 11775 10025 6425 5225 11450 9950 14900 12200 7650 6675 5500 4300 9325 7875 7350 5825 9725 7850 10525 9075 5225 4250 9400 8300 8825 7375
2010 MODELS Domestic Cars Buick LaCrosse CX 4D Sedan Cadillac DTS 4D Sedan Chevrolet Cobalt LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 Touring 4D Sedan Chrysler Sebring Touring 4D Sedan Ford Mustang 2D Coupe Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan Ford Focus SE 4D Sedan Import Cars Acura TL 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Galant ES 4D Sedan Nissan Altima 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Trucks BMW X3 XDrive30i 4D SAV Cadillac Escalade 4D Utility AWD Cadillac SRX Luxury 4D Utility AWD Chevrolet Colorado LT Crew Cab 4WD Z85 Chevrolet Equinox LS 4D Utility FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D Utility 4WD Dodge Dakota Bighorn Ext Cab Dodge Grand Caravan SE Wagon Ford Edge SEL 4D Utility Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Flex SEL 4D Utility Honda CR-V LX 4D Utility 4WD Honda Odyssey LX Wagon
Domestic Cars Buick LaCrosse CX 4D Sedan Cadillac DTS 4D Sedan Chevrolet Cruze LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 4D Sedan Chrysler 200 Touring 4D Sedan Ford Mustang 2D Coupe Ford Focus SE 4D Sedan Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan Import Cars Acura TL 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan 2.4 Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Galant ES 4D Sedan Nissan Altima 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Trucks BMW X3 XDrive28i 4D SAC Cadillac Escalade 4D Utility AWD Cadillac SRX Luxury 4D Utility AWD Chevrolet Colorado LT Crew Cab 4WD Z85 Chevrolet Equinox LS 4D Utility FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D Utility 4WD Dodge Grand Caravan Express Wagon Ford Edge SEL 4D Utility Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Flex SEL 4D Utility Honda CR-V LX 4D Utility 4WD Honda Odyssey LX Wagon Honda Pilot EX-L 4D Utility 4WD w/DVD
Apr-14 11700 15800 6200 7750 11800 8100 11700 13000 18150 7900 Apr-14 17400 16200 35750 11200 8050 18800 24600 7850 9100 10400 8650 10700 9500 10800 Apr-14 22100 34450 20600 16400 10875 16100 21500 10700 9750 14475 11300 15000 15050 14500 13400 12750
Projected Figures Apr-15 Apr-16 10100 8525 12300 10225 5275 4600 6400 5525 9150 7775 5200 4100 9825 8600 9700 8050 13575 11075 6275 5275 Apr-15 Apr-16 13750 11350 13550 11300 30925 25825 9425 8150 6825 5625 16325 13875 18350 14775 6275 5225 7250 6175 8125 6900 6650 5625 8725 7675 7350 6400 8775 7375 Apr-15 Apr-16 18275 15175 26875 21975 16300 13425 13425 11725 7900 6400 13125 11450 17325 14600 9000 7875 6625 5200 11300 9600 8800 7200 12225 9900 11800 10425 11300 9675 11175 9775 10725 9125
Domestic Cars Buick LaCrosse CX 4D Sedan Cadillac DTS 4D Sedan Chevrolet Cobalt LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 Touring 4D Sedan Chrysler Sebring LX 4D Sedan Ford Mustang 2D Coupe Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan Ford Focus SE 4D Sedan Import Cars Acura TL 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Galant ES 4D Sedan Nissan Altima 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Trucks BMW X3 XDrive30i 4D SAV Cadillac Escalade 4D Utility AWD Cadillac SRX 4D Utility AWD V6 Chevrolet Colorado LT Crew Cab 4WD Z85 Chevrolet Equinox LS 4D Utility FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D Utility 4WD Dodge Dakota Bighorn Ext Cab Dodge Grand Caravan SE Wagon Ford Edge SEL 4D Utility Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Taurus X SEL 4D Utility FWD Honda CR-V LX 4D Utility 4WD Honda Odyssey LX Wagon
Apr-13 10200 15200 6700 9100 12050 7450 11150 9300 14800 7900 Apr-13 18800 17200 37700 11600 8450 19600 21600 7700 9550 10350 8200 11250 9300 11350 Apr-13 21550 35250 17150 15775 11275 15925 22500 11600 9525 15500 12725 14750 15350 11275 14400 12800
Oct-13 9100 14750 5800 7750 11300 5950 10400 8350 14350 6900 Oct-13 17600 15200 33500 10550 7300 19200 19600 7050 9150 9950 7850 10250 8250 10150 Oct-13 19600 32250 15600 15600 9075 15325 21500 10175 8900 14225 10600 13950 15025 8600 12550 12000
3/31/14 2:58 PM
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ÛÛÝÛÛÛApril 7, 2014
USED CAR NEWS
HPV UCN AD DUE 2014.02.21 outlined & embedded.ai 1 2/21/2014 3:25:50 PM
Compiled By Jeffrey Bellant
Remarketer of the Year Honored
REMARKABLE: Jeff Barber, owner of State Line Auto Auction, (left) receives an award from Mike Antich during the recent Conference of Automotive Remarketing in Las Vegas.
Jeff Barber, owner of State Line Auto Auction, was named the Remarketer of the Year at the 2014 Conference of Auto Remarketing recently in Las Vegas. The award winner is nominated by the industry and selected by the industry. The winner is someone who has implemented and encouraged the use of best practices, along with created and embraced industry innovation while moving the industry forward with professionalism and highest standards. The winner is also someone who has worked with industry organizations and served as a mentor. Barber said he was “flattered, honored and shocked” when he learned that he won the award. Barber has been in the industry for more than 30 years, In receiving his award, he thanked his wife and his children. His wife and three of his children work in the auction. At the award presentation, he spent several minutes talking about the industry’s history and its progress.
Charity Receives Manheim Donation Manheim Pennsylvania has raised $70,000 for Keystone Wounded Warriors, which is a portion of proceeds from its third-annual Xtreme Spring Event. A Spring Charity Gala to benefit veterans was held as part of two-day event. Manheim Pennsylvania hosted the world’s largest highline vehicle auction – a “100 Grander” sale – featuring a 2008 Bugatti Veyron, many Rolls Royce, Ferrari, Maserati, Lamborghini models and other highdollar vehicles on March 20. Additionally, Ultra Highline, Corvette, Motorcycle and Classic Car auctions were held on March 21. Since 2012, Manheim Pennsylva-
nia raised $110,000 for Wounded Warrior Project. “Our organization greatly appreciates the efforts of Manheim Pennsylvania, its staff and customers,” said Paul Spurgin, director and cofounder of Keystone Wounded Warriors, in a press release. “We are very grateful for this donation.” 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: email@example.com
3/31/14 4:39 PM
April 7, 2014Ă›Ă›Ă?Ă›Ă›~
USED CAR NEWS
Disconnected Jottings From Tony Moorby... Russia may well have invaded the rest of Ukraine by the time this goes to press, a scenario thatâ€™s not too farfetched under Vladimir Putinâ€™s leadership. The Ukraine would be a soft-bellied target having, to a great extent, re-
Most folks who read this wonâ€™t relate to any contextual mirror of Hitlerâ€™s invasion of the Sudetenland, the German-speaking part of then Czechoslovakia. He did it with blatant disregard to any political fallout or economic
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duced their armaments in recent years. If the elections for Crimea to cede to Russia were for real, that is, unrigged and unthreatened, without the monstrous barrel of a T2S25 heavy tank thrust against their nostrils, then I suppose thereâ€™s some sense that the Crimean people would feel closer to their Russian cousins. They speak the same language (almost) and have hosted the Russian Black Sea Fleet in Sevastopol since the last world war.
considerations as Germanyâ€™s economy was in the toilet anyway. However they were building their armaments while the rest of Europe, with no appetite for war, were broadly disarming as a posture to keep the peace. Churchillâ€™s was the lonely voice that pointed to the error of those policies and made himself thoroughly unpopular in the process. So why are there tanks on the border of Russia and the Ukraine? Putin knows that Russians like to feel strong
and while we might think of him as a belligerent politician, a Russian acquaintance of mine assures me that the Russian people admire a bully as a leader. They loved Khrushchev, Kosygin and Brezhnev. Although of a completely different political persuasion, they admired Margaret Thatcher greatly and dubbed her â€œThe Iron Lady.â€? To a nation that was taught that Lenin was everyoneâ€™s grandfather, Mikhail Gorbachev was considered to be the weakest leader the Soviet Union had ever had and the one who allowed its dissolution through openness and restructuring â€“ â€œglasnost and perestroikaâ€?. Some theorists believe that Putin needs a war to redirect criticism of his expenditures on the Sochi Olympics. Not just the amount of $50 billion but the fact that most of that money went to contractors personally known to and selected by Putin, thus potentially inviting observations about corruption going all the way to the top. The economy in Russia over the last twenty years has made many billionaires and Putin is afraid of new spheres
C R O S S WO R D
of influence being formed outside (his) political circles. The usual modus is to accuse these folks of fraud and tax evasion and pack them off to prison. Mikhail Khodorkovsky, a major player in the oil business, spent ten years in the slammer and is now living in Switzerland. Where did all his money go? My acquaintance, whilst not as rich as that, suffered a similar exit and immigrated to the States, leaving his fortune behind. Iâ€™ve said before that Iâ€™m no geopolitical know-it-all and this world we live in now with all itâ€™s inter-dependencies makes it almost impossible to render an opinion on the result of sanctions. China is likely to stay out of it, as weâ€™re their biggest customer. Others may step in to supply some consumer goods as Rus-
siaâ€™s economy is mainly underpinned by mineral wealth and not the production of things for themselves or others, unless itâ€™s arms, of course. Ukraine, which has been receiving subsidized oil from Russia, will now have to pay market or even premium prices. Is that where our loan guarantees will be spent? Their economic weakness only makes them an easier target and while the Ukrainian people may want to side with Europe and become part of their community I donâ€™t know if Europe has the guts or money to stand against someone who simply doesnâ€™t give an owlâ€™s hoot about world opinion. Itâ€™s a bit like the good guys have a slingshot while the bully has a bazooka. Letâ€™s hope that no escalation comes of this.
To see past columns from Tony Moorby, visit www.usedcarnews.com/ columnists/tony-moorby
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ÛÝÛÛApril 7, 2014
USED CAR NEWS
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