May 19, 2014
ON THE WEB: Credit Acceptance Reports Decline
Used Car Store Seeks Sewer Solution
Credit Acceptance Corp. saw its net income decline in the first quarter. The subprime creditor announced consolidated net income of $49.8 million for the three months ended March 31, compared to consolidated net income of $60.6 million for the same period in 2013. .
FTC Mails Refunds For Fuel Additive Scam
The Federal Trade Commission is mailing refund checks totaling $42,580.45 to 1,274 consumers who bought a worthless fuel additive called EnviroTabs.
Marketing Works Best Across Multi-Channels
A survey by email marketing firm Constant Contact suggests multi-channel marketing – email, social, mobile, and Web – increases customer engagement. The survey says 82 percent of small businesses and nonprofits use multi-channel marketing to promote themselves already.
SEWER OR LATER: Jay Mullen, owner of Elkton Auto Corral in Lisbon, Ohio, stands by the portable toilets he needs at his store because it lacks a municipal sewer connection. Mullen has been working with the city to resolve the situation. By Sheila McGrath
For years, Jay Mullen had driven by an abandoned Chevrolet dealership in Lisbon, Ohio, and thought, “Wow, that’s a shame.” The former Quinn Chevrolet building, an auto dealership since 1938, had closed after the 2009 eco-
nomic crisis and fallen victim to vandals. Mullen dreamed of buying it and relocating his small used-car lot, the Elkton Auto Corral, to the spacious property. The dream came true – sort of. Mullen and his wife, Susan, eventually did buy the property at a 2012 bank
auction, and went to work scrubbing, painting and sprucing up the building. But roughly a year after moving in, they started having problems with the plumbing. Toilets wouldn’t flush. When it rained, drains in the shop would overflow. A plumber they called in to investigate gave them
some very bad news: Shortly before the Mullens bought the building, its sewer connection had been severed by workers installing a sanitary sewer system for the village of Lisbon. Village officials say they severed the connection because workers smelled gasContinued on page 7
Rush - Dated Material
CFPB Director Praises Bank’s Move to Flat Fee for Dealers BMO Harris Bank announced that it plans to pay auto dealers a flat percentage of the loan amount to compensate dealers for originating indirect auto loans. The move follows months of the Consumer Finance Protection Bureau pressuring automotive finance providers to change the way they compensate dealers. “It is encouraging to see BMO Harris taking this proactive step to protect consumers from discrimination,” said CFPB Director Richard Cordray. “When people go to buy a car, they should not have to worry whether they’ll pay more for their auto loan because of their race, gender, or ethnic background. The CFPB is committed to creating a
fair marketplace for all consumers, and we recognize that many lenders share that commitment as well.” The CFPB issued a bulletin in 2013 reminding lenders offering auto loans through dealerships that they remain accountable for complying with fair lending laws in their indirect lending programs. The Bureau’s bulletin explained that policies which allow dealers to exercise discretion over interest rates and provide direct financial incentives for charging higher prices may lead to fair lending violations under the Equal Credit Opportunity Act . In the bulletin, the CFPB identified potential approaches that indirect auto lenders could take to ensure compliance.
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May 19, 2014ÛÛÝÛÛ
USED CAR NEWS
State Passes Laws on Liens, Registration Fees By Jeffrey Bellant
Florida’s legislative session ended with the passage of a bill offering automobile dealers an additional tool to recover vehicles under lien. The language was added as an amendment to a Department of Transportation bill that passed May 3. “It was a nail-biter,” said Lisette Mariner, executive director of the Florida Independent Automobile Dealers Association. “The bill passed on the last day of the session.” At press time, the bill was waiting for Gov. Rick Scott’s signature, Mariner said. It would go into effect Oct. 1. This follows the April 2 signing of a bill that cuts $400 million in vehicle registration fees and will go into effect Sept. 1. Scott said his efforts are part of his “It’s Your Money Tax Cut Budget” plan. That legislation reduces fees between $5 and $11.50 per registration on cars and trucks, with other reductions for motorcycles, mo-
peds and antique vehicles. The bill, sponsored by Sen. Joe Negron (R-Stuart), rolls back tax increases that were passed in 2009. Mark Wilson, president and CEO of the Florida Chamber of Commerce, praised the law. “No new taxes or fees means more freedom for Floridians and small businesses and more economic growth for Florida,” he said. The bill addressing lienholders – HB 883 – was proposed by state Rep. Doug Broxon (R-Midway) to correct a loophole in a law passed in 2009. That law, recommended by the state’s Automobile Lending Task Force, was pushed to help lienholders recover vehicles without court intervention, Mariner said. Under that earlier law, when a lienholder notified the Department of Motor Vehicles that a registered owner refused to comply with a demand for surrender, the driver’s name was placed on a “Surrender Stop” list. Drivers on the list could not be issued a license
Photo by Sara Brockman FEE FIGHTER: Florida Gov. Rick Scott announces a drop in vehicle registration fees as an effort to roll back taxes and fees. At press time, he was expected to sign another bill to help lien holders recover vehicles.
plate or registrations until the vehicle was recovered or the lienholder removed the person’s name. However, a registered driver later filed a lawsuit against the DMV arguing the law did not allow a registered owner to dispute the “Surrender Stop” order. It was determined that the law stated the DMV “may”
withhold renewal of the registration or renewal, instead of “must.” The DMV’s position was that they were not required to enforce the “Surrender Stop” provision. The new law requires: The form submitted by a lienholder to DMV must be verified as true and accurate under oath by the lienholder or an authorized representa-
tive; registered owners may challenge the registration stop in the circuit court and recover their reasonable attorney’s fees and costs; and it would replace the word “may” with “shall” to require the DMV to stop issuing plates for anyone whose name appears on the list until their name is removed or ordered by a court.
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Â Ă›Ă›Ă?Ă›Ă›May 19, 2014
USED CAR NEWS
NEWS BRIEFS NIADA Partners with Equifax
Equifax Inc. has signed an agreement with the National Independent Automotive Dealers Association to be a national member benefit partner. Through this relationship, Equifax will provide NIADA-member dealers access to the next generation of tools and information to help them deliver vehicles, including its recently upgraded online portal focused on improving a dealerâ€™s ability to facilitate their used vehicle sales. The online portal, Equifax ePort, provides independent dealers access to auto shoppersâ€™ credit data as well as verification of income and employment to remove lender stipulations, mitigate fraud and ultimately speed the delivery of used vehicles. Equifax ePort also enables simple and more secure access to the daily data and information that dealerships need.
Floor Planner Expands
Dealer Preferred Capital is expanding its floor plan and float lending at the Greater Rockford Auto Auction as part of GRAAâ€™s year-long 40th anniversary celebration. In late 2013, Dealer Preferred Capital launched at GRAA focused on offering a competitively priced floor plan that could respond quickly to dealer needs. Dealer Preferred will now open its services to GRAAâ€™s full customer base. In honor of the 40th anniversary, GRAA and Dealer Preferred will offer discounted rates on 28-day float for a dealerâ€™s first full month of float following approval.
Manheim Earns Energy Accolade
The U.S. Energy Department recently recognized Manheim Pennsylvania organizations for efficient parking lot and parking garage lighting. CarMax Opens Store Vice president and general managCarMax Inc. has officially opened er Julie Picard accepted the â€œHighits first store in Mechanicsburg, Pa. Located at 6555 Carlisle Pike, this is CarMaxâ€™s third store in PennsylC R O S S WO R D by Myles Mellor vania. The Mechanicsburg store is PAGE 37 more than 20,000 square feet, occupies more than 6 acres, employs nearly 40 associates and stocks approximately 250 used vehicles.
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est Absolute Annual Energy Savings in a Retrofit at a Single Parking Areaâ€? award given to Cox Enterprises for the Manheim Pennsylvania project. As a Cox Enterprises subsidiary, Manheim participates in the companyâ€™s national sustainability program that focuses on waste management and reducing energy and water consumption. Manheim Pennsylvania decreased the energy use in its 13.5 millionsquare-foot parking lot by switching to reduced wattage lamps and a wireless control system. This new project allowed the auction to cut its energy use by 50 percent.
World Omni Selects Fiserv
World Omni Financial Corp. has begun using Fiservâ€™s Automotive Loan Origination System for its retail installment contract and lease origination technology needs. With Auto LOS from Fiserv, World Omni will be able to automate the entire credit and funding process from electronic application capture through efficient credit decisioning, funding verification, contract package validation and boarding to any auto servicing system. Working with Fiserv, World Omni migrated portfolios for Southeast Toyota Finance and Volvo Car Financial Services, among others.
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: 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. É&#x; É&#x; É&#x; Please submit clear, legible copy. Payments from first time advertisers must accompany the insertion order. Distribution is guaranteed by U.S. Postal Carriers. The advertising reservation deadline is 5:00 p.m. Friday, 10 days prior to the issue date. Camera ready ads must be received by noon on Monday prior to the issue date.
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May 19, 2014 ÝÛÛ
USED CAR NEWS
Finance Association Offers Compliance Course By Ted Craig
The National Automotive Finance Association is receiving rave reviews for its Consumer Credit Compliance Certification program. The program provides training in the latest regulations for subprime auto finance. It’s open to employees of both finance companies and buy-here, pay-here dealerships. The program begins with a day and a half of classroom style learning. Participants then complete an online test before moving into the 26 web-based sessions covering federal and state laws and regulations. The first classroom took place in January. The next will be held in conjunction with the NAF Association’s May 2830 conference in Ft. Worth, Texas. Eric Johnson and Patty Covington of the Hudson Cook law firm teach the classes. Eduardo Rivas, director of underwriting for Tricolor
Auto, admitted he thought the course material might prove dry. “Actually, it’s been kind of invigorating,” Rivas said. After 30 years in the business, he’s learning how much he doesn’t know. Rivas said his store’s owner, James Wood, is a big believer in training and they regularly take classes from the Texas Independent Automobile Dealers Association, the National Alliance of Buy-Here Pay-Here Dealer and other groups. The goal is protecting both the store and its customers,
Rivas said. Bob Mulkey is at the other end of his career from Rivas. He graduated from college
taking classes online, but Johnson said the goal was appreciated the classroom to create a strong foundation portion of the course. He for the participants. said the subject matter is too “It’s really like building a
“It’s really like building a house.” Eric Johnson two years ago and joined his father’s company, Regal Cars and Credit, as chief compliance officer. Mulkey said he’s used to
complicated for the entire course to take place online. The best part of the class for Mulkey was the use of real-world examples.
house,” Johnson said. Mulkey already acted on what he learned and has changed some policies at the store.
CFPB Reduces Privacy Requirements The Consumer Financial Protection Bureau proposed a rule that would allow companies that limit their consumer data-sharing and meet other requirements to post their annual privacy notices online rather than delivering them individually. The Gramm-Leach-Bliley Act generally requires that financial institutions send annual privacy notices to customers. These notices must describe
whether and how the financial institution shares consumers’ nonpublic personal information. If the institution does share this information with an unaffiliated third party, it typically must notify consumers of their right to opt out of the sharing and inform them of how to do so. The CFPB proposal would allow institutions to post privacy notices online instead of distributing an an-
nual paper copy, if they satisfy certain conditions such as not sharing data in ways that would trigger opt-out rights. This proposal would apply to both banks and those nonbanks that are within the CFPB’s jurisdiction. Institutions that choose to rely on this new method of delivering privacy notices would be required to use the model disclosure form developed by federal regulatory agencies in 2009.
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ÛÝÛÛMay 19, 2014
USED CAR NEWS
State Exec Passes the Torch By Ted Craig
The Michigan Independent Automobile Dealers Association finds itself in a situation it has never experienced – transitioning to a new executive director. Nancy Chapman is retiring after more than 25 years at the helm of the Michigan IADA. She is the only professional director to lead the association since her father, Harold Rettberg, and other dealers Nancy formed it. Chapman The transition should prove smooth as Lisa Michael, Chapman’s longtime assistant, takes the reins. Still, dealers say they will miss the experience and efficiency Chapman brings to the job. So will many of her fellow executive directors. “We talk every week,” said Rose Morgan, executive director of the Oklahoma IADA. “She’s a wealth of wisdom and understanding. She’s been a delight to work with.” Morgan said dealers may not realize how much Chapman does for them because she is quietly efficient. Many do, such as Ray Campise,
owner of Certified Motors in St. Clair Shores, Mich., and current Michigan IADA president. Campise said he’s going to miss the “one-stop shopping” Chapman provided. She always knew how to navigate the red tape of bureaucracy, he said. “An independent dealer has no say,” Campise said. “There’s power in representation and that’s what we have with Nancy.” He said Chapman helps with every aspect of the association, including making sure the meetings are run in a proper fashion. “She keeps us in line,” Campise said. Morgan said Chapman’s organizational system is a model for many other executive directors. That’s one of the reasons she won the National Independent Automobile Dealers Association’s executive of the year award. Ted Cooper, the Michigan IADA’s secretary, said Chapman is ready to pass the torch to somebody else. Running an association today is more difficult, as fewer young dealers see the value of membership. Cooper said one goal for Michael is getting the state to create prelicensing training, something that should spark new interest in the association. As for Chapman, Cooper said she plans on going fishing with her husband.
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Residents of the Bay State, the Buckeye State and the Volunteer State can now test drive and purchase well-maintained, late-model vehicles at competitive prices. Avis Budget Group, Inc., announced that its consumer car sales program is available in Massachusetts, Ohio and Tennessee. In collaboration with AutoNation Inc., the consumer car sales program offers potential buyers a no-haggle, nohassle process and features a Tom wide selection of late-model Gartland Avis and Budget rental vehicles for purchase at competitive prices. Customers can shop online at www.avis.com or www.budget. com and schedule their “ultimate test drive” to enjoy the full experience of driving a vehicle of their choice, ranging from a fuel-efficient model to a multipurpose vehicle.
The ultimate test drives are freeof-charge for two hours or can be as long as three days for a nominal rental fee. If the customer decides to purchase the vehicle, the base rental fee will be refunded after the purchase is completed through AutoNation Direct. “The warmer weather makes spring a great time to test drive and purchase a vehicle,” said Tom Gartland, president, North America, Avis Budget Group. “We’re happy to roll out our consumer sales program to Massachusetts, Ohio and Tennessee and give residents there a new option for test-driving and purchasing our quality, well-maintained vehicles.” This car sales program is part of Avis Budget Group’s strategic objective to drive efficiency throughout the organization and accelerate growth, by maximizing the proceeds from risk car sales. The program is also available in Arizona, California, Colorado, Florida, Georgia, Illinois, Michigan, Nevada, New Jersey and Texas. The program features more than 75 vehicle makes and models.
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May 19, 2014ÛÛÝÛÛ
USED CAR NEWS
– from page 1
oline while excavating near the line to the former dealership property. They believed petroleum may have been left behind from a BP gas station that shared the site 30 years ago. As of now, the building’s bathrooms are unusable. “I’ve been hoping every day they’re going to call us and tell us ‘We’re going to fix it,’” Jay Mullen said. “We’ve gone through this for four months, and I’ve come to the conclusion that they’re not going to fix it.” Village officials have said they can’t reconnect the sewer line until they are certain there is no residual fuel in the property or the sewer lines. Tests conducted at the village’s request on April 1 showed there was no contamination in the ground. But village solicitor Virginia Barborak said the fact the soil tests were clean doesn’t mean there’s no petroleum in the old sewer line. “The old line was closed because there was an odor of oil or some type of petroleum product,” she said. “It’s not as simple as going in and opening that line, so a new line needs to be dug. All they did was soil samples.” Barborak is attempting to work out a solution with BP if she can, but said it’s the Mullens’ respon-
sibility, not the village’s, to dig a new line. Barborak said she recommended the Mullens hire an attorney to pursue their legal rights. Had the property gone through a typical sale with a conventional loan, she said, an inspection should have revealed the problem with the sewer. But the couple bought the property as-is at an auction. She said they could have legal recourse against the bank they bought it from. “The bank that sold it has a duty to disclose material defects with the property, and they didn’t do that,” Barborak said. Mullen said they’re considering moving the Elkton Auto Corral back to its former home, located about three miles away. But it’s not something they want to do. Despite all their troubles, their sales have been better in Lisbon, he said. As taxpayers in the village, who fixed up a dilapidated building, hired employees and plan to hire more, they feel they have brought a lot to the town of about 3,000 residents. They’re bringing shoppers from around the region to their car lot, he said. “We bring a good amount of people from Pittsburgh,” Mullen said. “It’s a beautiful facility, but customers want to use a bathroom.”
Marketplace Shows Value MY
AutoTrader.com released a new case study, which details how an Oregon dealership uses the Trade-In Marketplace to enhance its trade-in process and acquire inventory. Based in Wilsonville, Ore., Parker Johnstone’s Wilsonville Honda is a franchise dealership that markets primarily within a 50-mile radius of Portland. Since October 2010, Trade-In Marketplace has played a role in the dealership’s integrated trade-in and sales process. The first thing customer service representatives do when discuss-
ing a trade-in value with consumers is to generate an offer through the Trade-In Marketplace. “There is no coming through the used-car manager and whispering” said Larry Skreen, business development manager at Wilsonville Honda. “It is all electronic and visible to the consumer from the moment they first step into the lobby.” Trade-In Marketplace is an AutoTrader.com vehicle valuation tool accessible via links on AutoTrader. com, KBB.com or participating dealer websites. K
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PAGE 8 - NABD
NABD Hall of Fame Honors Buy-Here, Pay-Here Dealers By Jeffrey Bellant
Buy-here, pay-here dealers often face scrutiny about their businesses, but one group has created a Hall of Fame for the industry’s best. This month, the National Alliance of Buy-Here, PayHere Dealers will induct another member into its NABD Buy-Here, Pay-Here Hall of Fame during a conference at the Wynn Las Vegas. NABD founder Ken Shilson said although other organizations honor dealers, he had a different vision for this award. For example, while some groups have “dealer of the year” honors, Shilson takes a longer view. “Our view is that if you are in the buy-here, pay-here business, you have to look at the body of work in an entire lifetime,” he said. “In buyhere, pay-here, you can have one fantastic year, but be out of business the next.” The people chosen for the Hall of Fame are those who have had successful operations over a long period. They have donated time and money to charities and served in their communities, Shilson said. Too often, people focus on the bad apples of the industry, even though there are bad apples in all industries, Shilson said. “We feel these are the people who have done it right,” he said. “So someone has to take the time to point out how they are doing it right.” The NABD Hall of Fame
reflects these values. One of the first inductees, the late Jim DeVoe, is a legend in the business, founding the company now known as J.D.Byrider, which started franchising stores in 1989. Other members include dealer Ed Bass, a Chicagoarea dealer so well known he has a street named after him. John Linnehan, inducted in 2013, was the largest buy-here, pay-here dealer in Maine, before giving up his business to work in Christian ministry, starting churches and schools. Linnehan gave a rousing acceptance speech last spring, discussing the importance of character and integrity in business. He said the NABD Hall of Fame award is “one of the highest honors I’ve ever received in my life.” Martin Ingram, who founded Dallas-based Auto City in 1958, is also a member of the prestigious club. Bruce Kennett, of Quick Credit Auto Sales in Sidney, Ohio, was the most recent inductee. The NABD will add its sixth member this month. Last fall, North Carolina dealer Ingram Walters, who acts as an emcee and moderator of the NABD conferences, put it best when he described what these men have meant to the business. “These guys are giants of the industry. If the buy-here, pay-here industry had a Mt. Rushmore, their faces would be on it.”
J.D. Byrider Adds Stores J.D. Byrider has added seven new franchise locations to its nationwide portfolio of dealerships. The locations opened between Dec. 16 and March 3. J.D. Byrider currently consists of 135 franchise- and 23 company-owned dealerships in 33 states. The company opened a total of 13 new stores in 2013 and looks forward to continued double-digit store growth in 2014. Among the new stores are the chain’s first operations in Idaho and Connecticut. “It’s exciting to start the
ÛÛÝMay 19, 2014
year opening several new locations, especially our first dealerships in Connecticut and Idaho,” said Tom Welter, vice president of franchising. “We look forward to 2014 becoming another banner year for growth as we cultivate new store agreements and open new dealerships with new and current franchisees.” The buy-here, pay-here chain is celebrating its 25th anniversary ths year and recently announced a $25,000 sweepstakes to mark the milestone.
File photos LIFETIME ACHIEVEMENT: Bruce Kennett (above center) and John Linnehan (below) are just two of the past inductees of the National Alliance of Buy-Here, Pay-Here Dealers Hall of Fame for a lifetime of service. A new member will be added this month. NABD Founder Ken Shilson (above left) and dealer Ingram Walters present the award.
Loss Statistics – 2013 Loss Statistics
Average default rate (% of loans written off)
Average gross dollar loss rate (% of principal)
Average net dollar loss rate (% of principal)
Average recovery (% of principal charged off)
Highest cumulative default month after origination
Highest frequency of default (month after origination)
Worst periodic loss month after origination
Average gross dollar loss (before recoveries) Average net dollar loss (after recoveries)
Note: The above referenced loss data was determined by electronically analyzing approximately 1,100,000 loans, aggregating approximately $10.2 billion to identify loss rates and to understand why they occurred. Source: Prepared for NABD by Subprime Analytics
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USED CAR NEWS
Consumers Take on More Debt WASHINGTON (AP) _ Consumers increased their borrowing in March by the largest amount in more than a year, using their credit cards and taking out more auto and student loans. Consumer borrowing increased $17.5 billion in March, up from a gain of $13 billion in February, the Federal Reserve reported Wednesday. It was the biggest monthly increase since a $19.3 billion advance in February 2013. The category that includes auto and student loans rose $16.4 billion while the category that covers credit card borrowing increased $1.1 billion. The overall increase in consumer debt pushed total borrowing to a record $3.14 trillion. Gains in borrowing are seen as an encouraging sign that people are more confident and willing to take on debt. Increased household borrowing can fuel higher consumer spending, which accounts for 70 percent of economic activity. The rise in credit card borrowing in March followed a sizable decline of $2.7 billion in February and likely reflected the pickup in retail sales in March. The gain in borrowing for autos and student loans had also been ex-
pected given that auto sales posted a solid gain in March. Borrowing on credit cards plunged during the recession as consumers tried to lower their debt during a period when millions of people were losing their jobs and many people still working were worried about the threat of layoffs. Credit card borrowing started rising again in 2011 but the increases have lagged far behind the category that covers auto and student loans. Economists said that many households have become more cautious about taking on high-interest debt. Credit card debt in March was still 16.2 percent below its peak reached in July 2008. Credit card debt stood at $856.7 billion in March, up just 0.9 percent from a year ago. The measure of auto loans and student loans in March stood at $2.28 trillion, up 7.8 percent from a year ago. It has been up for 31 consecutive months going back to September 2011. A separate quarterly report on consumer credit done by the Federal Reserve Bank of New York shows that student loan debt has been the biggest driver of borrowing since the recession officially ended in June 2009. The Fed’s report doesn’t track mortgages or home equity loans.
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~ÛÝÛÛMay 19, 2014
USED CAR NEWS
Cost of Auto Ownership Drops
67 Years Can’t Be Wrong.
AAA released the results of its annual ‘Your Driving Costs’ study, revealing a 2.7 percent decrease in the cost to own and operate a sedan in the U.S. The average cost fell 1.64 cents to 59.2 cents per mile, or $8,876 per year, based upon 15,000 miles of annual driving. Fuel costs had the single largest percentage decrease from 2013 to 2014, declining 10.04 percent to 13 cents per mile. The average cost of regular grade fuel fell 5.96 percent, from $3.486 to $3.278 per gallon. At the same time, vehicle redesigns and improved power train technologies that take into account higher federal Corporate Average Fuel Economy (CAFE) standards has the effect of improving the average fuel economy of sedans used in the study. Fuel costs in the 2014 study were calculated using the national average price for regular unleaded gasoline during the fourth quarter of 2013. This year maintenance costs increased nearly two percent to 5.06 per mile on average for sedan owners. AAA’s estimates are based upon the cost to maintain a vehicle and perform needed repairs for five years and 75,000 miles, including labor expenses, replacement part prices and the purchase of an ex-
tended warranty policy. For 2014, some vehicles had lower costs due to longer service intervals or reduced labor times, while others experienced an increase in labor times and/or part prices that led to a rise in maintenance costs. AAA experts also identified an increasing number of vehicles requiring low-viscosity semi- or full-synthetic motor oils, which cost more than conventional oils but provide better fuel economy, added engine protection and allow for longer oil change intervals. After several years of increases due to rising costs for raw materials, energy and transportation, tire prices for 2014 have decreased three percent to 0.97 cents per mile. The decrease can be credited to two main factors; some redesigned sedans now come equipped with less expensive tires and some tire prices have declined. In 2014, average insurance costs remain essentially unchanged at an average annual cost of $1,023, compared to $1,029 last year. Insurance rates vary widely by driver and driving record, issuing company and geographical region. AAA insurance cost estimates are based on a lowrisk driver with a clean driving record and for 2014 this group saw a negligible premium decrease.
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5/12/14 11:43 AM
5/9/14 4:35 PM
~ÛÝÛÛMay 19, 2014
USED CAR NEWS
State’s Auto Info Bill Fails SACRAMENTO, Calif. (AP) – California lawmakers are trying to strengthen consumer data protections as businesses profit from the trove of details they collect and criminals become ever more sophisticated in trying to steal it. In the Senate, SB994 by Sen. Bill Monning, D-Carmel, tried and failed to pre-emptively deal with vehicles that collect data recording drivers’ routes, speeds and habits. His office said about one in five vehicles has such technology and that it is on track to become universal within a decade. His bill would have required manufacturers to disclose to customers what data the vehicles collect and choose who gets access to it, such as repair shops. Vehicle manufacturers launched an aggressive campaign against the bill, arguing the automobile clubs sponsoring it had an ulterior motive to use the data to help affiliated repair shops and insurers. The bill died in committee when seven lawmakers of both parties abstained from voting. “The question and balancing act is, ‘Are people voting in the best interest of constituents or in reaction to the massive power of industry?’” Monning said in response to the bill’s defeat.
But his legislation also did not have the backing of consumer advocacy groups that want greater privacy protections. Rob Stutzman, who represented the Alliance of Automobile Manufacturers in the fight against the bill, said the Target and Neiman Marcus data breaches resonated with lawmakers about why they should oppose the bill. “What people really want is data security,’’ he said. “If you allow any third party to basically be able to receive a car’s data, you have a potential for a huge compromise.’’ Meanwhile, Assemblyman Bob Wieckowski, D-Fremont, and Assemblyman Roger Dickinson, DSacramento, introduced AB1710 in response to the data breaches at Target and other merchents. It would have set new standards and restrictions on retailers that keep customer data and held those who do not comply liable for the costs of a breach. But those provisions have been gutted after business groups warned against enshrining constantly evolving technology standards into law. The bill, which is headed for a floor vote, still requires retailers, in addition to financial institutions, to notify customers of a breach and provide credit monitoring services.
Visit us at the NABD Dealer Academy- Booth #1210 and don't miss us at the National NABD Booth #515
5/12/14 2:28 PM
Your source for quality, value, selection: Chase. A broad selection of pre-owned vehicles from an industry leader. June 2014 Chase High Lines, featuring Jaguar Land Rover Financial Group
ADESA Boston June 13 508-626-7000
Manheim Dallas June 4 877-860-1651
Manheim Pennsylvania June 12*, 26 800-777-2053
Manheim New Orleans June 4 985-643-2061
ADESA Golden Gate June 24 209-839-8000
Manheim Milwaukee June 4 262-835-4436
Manheim Riverside June 5 909-689-6000
Manheim Atlanta June 12, 25, 26 404-762-9211
Manheim Orlando June 3, 9, 10, 17, 24 800-337-8491
Manheim Atlanta June 25 404-762-9211
Manheim Orlando June 9 800-337-8491
Manheim Baltimore Washington June 3 410-796-8899
Manheim Pennsylvania June 12, 13, 26, 27 800-777-2053
ADESA Boston June 6, 13, 20 508-626-7000
Brasher’s Salt Lake AA June 17 801-322-1234
Manheim New Jersey June 4, 18, 25 609-298-3400
ADESA Charlotte June 12, 26 704-587-7653
Columbus Fair AA June 11, 18 614-497-2000
ADESA Cincinnati/Dayton June 10 937-746-4000 ADESA Golden Gate June 10, 24 209-839-8000 ADESA Houston June 11, 25 281-580-1800 ADESA Indianapolis June 10, 24 800-925-1210 ADESA Kansas City June 10, 24 816-525-1100 ADESA Lexington June 26 859-263-5163 ADESA New Jersey June 12, 26 908-725-2200 ADESA San Diego June 26 619-661-5565 ADESA Tulsa June 13 918-437-9044 America’s AA-Chicago June 11 708-389-4488
Manheim Dallas June 4, 18 877-860-1651 Manheim Denver June 4 800-822-1177 Manheim Detroit June 5, 12, 26 734-654-7100 Manheim Fredericksburg June 5, 19 540-368-3400
Manheim Phoenix June 5, 12, 19, 26 623-907-7000 Manheim Pittsburgh June 4 724-452-5555 Manheim Riverside June 3, 5 909-689-6000 Manheim Seattle June 25 206-762-1600
Manheim Milwaukee June 4, 18 262-835-4436
Manheim Southern California June 12 909-822-2261
Manheim Minneapolis June 25 763-425-7653
Southern AA June 4 860-292-7500
Manheim Nashville June 11, 18 877-386-5004 Manheim Nevada June 13 702-361-1000
Choose Chase on ADESA.com and OVE.com for quality bank-sourced vehicles. Contact auctions directly for current sale information.
* Only Jaguar and Land Rover vehicles will be sold on this date.
Mazda Capital Services ADESA Boston June 6, 20 508-626-7000
Manheim Detroit June 12, 26 734-654-7100
ADESA Golden Gate June 10 209-839-8000
Manheim Fredericksburg Manheim Pennsylvania June 19 June 13, 27 540-368-3400 800-777-2053
ADESA Kansas City June 24 816-525-1100
Manheim Milwaukee June 18 262-835-4436
Columbus Fair AA June 18 614-497-2000
Manheim Nashville June 11 877-386-5004
Manheim Atlanta June 26 404-762-9211
Manheim New Jersey June 4, 18 609-298-3400
Manheim Orlando June 24 800-337-8491
Manheim Pittsburgh June 4 724-452-5555 Manheim Riverside June 3 909-689-6000 Manheim Seattle June 25 206-762-1600
Subaru Motors Finance Manheim Pennsylvania June 13 800-777-2053
ADESA Boston June 6, 20 508-626-7000
Manheim Detroit June 12, 26 734-654-7100
Brasher’s Salt Lake June 17 801-322-1234
Manheim Fredericksburg Manheim Pittsburgh June 4 June 5 724-452-5555 540-368-3400
Columbus Fair AA June 11 614-497-2000
Manheim Milwaukee June 4 262-835-4436
Manheim Dallas June 18 877-860-1651 Manheim Denver June 4 800-822-1177
Manheim New Jersey June 18 609-298-3400 Manheim Orlando June 3 800-337-8491
Manheim Seattle June 25 206-762-1600 Manheim Southern CA June 12 909-822-2261 Southern AA June 4 860-292-7500
*The tradename “Subaru Motors Finance” and the Subaru logo are owned / licensed by Subaru of America, Inc. and are licensed to Chase Bank USA, N.A. (“Chase USA”) and JPMorgan Chase Bank, N.A. (“Chase”). Retail / Loan accounts are owned by either Chase or Chase USA and lease accounts are owned by Chase. *Jaguar, the Jaguar logo, and Jaguar Financial Group are trademarks of Jaguar and any use by JPMorgan Chase Bank, N.A. (“Chase”) is under license. Land Rover, the Land Rover logo, and Land Rover Financial Group are trademarks of Land Rover and any use by Chase is under license. Retail / Loan and lease accounts are owned by Chase. *The tradename “Mazda Capital Services” as well as the Mazda and Mazda Capital Services logos are owned by Mazda Motor Corporation or its affiliates and are licensed to JPMorgan Chase Bank, N.A. (“Chase”). Retail / Loan and lease accounts are owned by Chase. © 2014 JPMorgan Chase Bank, N.A. Member FDIC. All rights reserved. (12-381) 06/12
5/9/14 12:32 PM
~ÛÝÛÛMay 19, 2014 TAA_UCN_May-1-2pagevertical-Print.pdf
USED CAR NEWS 1
Ally Reports Mixed Results
Ally Financial Inc. reported less income from auto financing despite higher net financing revenue. Auto Finance, which is comprised of Ally’s U.S. auto finance operations, reported pre-tax income of $339 million for the first quarter of 2014, compared to $343 million in the corresponding prior year period. Results for the quarter were primarily driven by strong net financing revenue, which improved $47 million year-over-year, resulting primarily from growth in the used and diversified new retail channels, and steady performance in the leasing channel, despite continued intense competition. This was offset by an increase in provision expense through seasoning and normalization of the portfolio. Total U.S. earning assets for Auto Finance, comprised primarily of consumer and commercial receivables and leases, totaled $108 billion for the quarter. U.S. consumer earning assets totaled $75 billion, up 7 percent yearover-year, due to continued strong origination volume outpacing asset run-off. Average U.S. commercial earning assets increased to approximately
$33 billion, as compared to $32 billion in the prior year period, as a result of higher dealer stock and average contract values. U.S. consumer financing originations in the first quarter of 2014 were $9.2 billion, compared to $8.2 billion in the prior quarter and $9.7 billion in the corresponding prior year period, and were comprised of $3.7 billion of new retail, $2.8 billion of used and $2.7 billion of leases. U.S. consumer financing origination levels in the first quarter of 2014 were driven by strong year-overyear origination growth in used and diversified new retail channels. Growth in these channels has largely offset lower subvented volumes. In total, used, lease and diversified new retail originations account for more than 65 percent of total U.S consumer originations. In other news, the underwriters on Ally’s initial public offering have elected to partially exercise the over-allotment option to purchase an additional 7,245,670 shares of Ally common stock at the IPO price of $25. After the sale, the U.S. Department of the Treasury is expected to recover an additional $181 million, which brings the total recovery to approximately $17.8 billion.
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DO YOU KNOW TODAY’S CUSTOMER? You may think that you can track all of your Internet customers simply through calls or emails. The truth is most shoppers don’t contact dealers at all. In fact, ONLY ONE-THIRD OF CAR BUYERS CALL OR EMAIL BEFORE WALKING INTO A DEALERSHIP. That leaves millions and millions of shoppers who just walk in unannounced. Find out why there’s so much more to the story than just clicks and leads at WeWorkForYou.com/Brian.
©2013 AutoTrader.com, Inc. All Rights Reserved. “AutoTrader.com” is a registered trademark of TPI Holdings, Inc. used under exclusive license.
AT3-643 (Used Car News)
9/27/13 4:43 PM
5/9/14 12:23 PM
~Â…Ă›Ă?Ă›Ă›May 19, 2014
USED CAR NEWS
AG Says Store Sold Stolen Cars The Missouri attorney general has obtained a preliminary injunction against Amado and Alfredo Navarro, the owners of Clarkâ€™s Automotive, Kansas City, Mo. The AGâ€™s office showed that Clarkâ€™s advertised and sold stolen vehicles to Missouri consumers and that it resold vehicles with active liens for scrap metal, defrauding the vehiclesâ€™ creditors. The preliminary injunction order prevents Clarkâ€™s from selling, advertising, or transferring motor vehicles
within Missouri. It also prevents Clarkâ€™s from disposing of or selling for scrap metal any motor vehicle. In addition to the injunction, the attorney general is seeking restitution for consumers, civil penalties and court costs. The investigation and lawsuit against Clarkâ€™s Automotive was the result of a joint effort by the Missouri attorney generalâ€™s office, the Kansas City Police Department, the Missouri Department of Revenue, and the Missouri State Highway Patrol.
Detroit Residents Hold Least Debt Experian released an analysis of current debt levels and credit scores in the top 20 major U.S. metropolitan areas. The results of the study show that of the cities examined, Detroit residents have the lowest average debt ($23,604) and that Dallas residents have the highest average debt ($28,240). Additionally, the study compared the current debt to the debt from four years ago and found that Detroit has decreased its average debt by 7.1 percent and the Dallasâ€™ debt amounts have increased by 7.8 percent since 2010.
Nationally, the average debt has increased by 5 percent compared to four years ago and the national average VantageScore credit score remained consistent at 665. â€œThere is a lot more behind the numbers than meets the eye â€“ 19 of the cities had increases in their debt amounts, which could actually be signaling a recovery pattern as credit lending is opening up and consumers are becoming more confident,â€? said Michele Raneri, Experianâ€™s vice president of analytics. â€œDetroit, while being the only city to decrease its average debt, is also showing signs of recovery.â€?
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5/12/14 11:47 AM
Why successful dealers finance their inventory with NextGear Capital … REASON #
flexibility Sunny McKeithen, owner of United Auto Brokers in Marietta, Georgia, credits NextGear Capital’s help in growing her dealership as a start-up with just two cars a few years ago to over 250 cars in inventory today. “NextGear Capital gives us the flexibility to floor our inventory in a variety of ways. This includes flooring trades when they come in and the flexibility to buy cars at any number of auctions or other sources.” Listen to more of what Sunny and other dealers have to say at nextgearcapital.com/why/flexibility.
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5/8/14 3:19 PM
ÛÝÛÛMay 19, 2014
USED CAR NEWS
Drivers Want In-Car Connectivity, Won’t Pay for It Among the technologies currently available or coming soon to vehicles, the ones consumers want most are those that allow them to access the entertainment, information and connections they currently get from their smartphone, according to the J.D. Power 2014 U.S. Automotive Emerging Technologies Study released. The study measures vehicle owner interest and purchase intent regarding 61 emerging automotive technologies both before and after the market price is known. Before being shown price, the two technologies that garner the most consumer interest are wireless connectivity systems, which create a communication link between electronic devices and the vehicle, and a device/application link, which allows viewing and controlling electronic devices and apps through the factory-installed equipment on the vehicle (83 percent and 78 percent, respectively). While these features top consumer wish lists, most feel that a wireless connectivity system should be standard equipment on the next vehicle they purchase, while only 23 percent of consumers feel the same about device/application link. Device/application link has the high-
est consumer interest at market price with 79 percent of consumer indicating that they are willing to pay $250 to have this technology. However, with a market price of $300, interest in wireless connectivity systems drops to fourteenth, with 55 percent of consumers willing to pay to have the technology in their next vehicle. “Smartphone ownership has increased to 70 percent in 2014, and consumers want the same connectivity in their vehicle as they are used to getting from their smartphone, computer or tablet,” said Mike VanNieuwkuyk, executive director of global automotive at J.D. Power. “Device/Application link enables the vehicle to replicate the display of a device on the vehicle’s screen while managing the device through the vehicle’s controls, which is why consumers want— and are willing to pay—to have that technology.” Along with device/application link, other technologies owners are most willing to pay to have in their next vehicle are surround-view/ rear-vision camera system ($550); active shutter grille vents ($150); wireless charging station ($75); advanced accident notification system ($25/month); and smartphone navi-
gation vehicle interface ($100). Nearly one-fourth of owners express interest in paying to have autonomous driving mode ($3,000) in their next vehicle, up from 21 percent in 2013 and 20 percent in 2012. Continued exposure to and experience with such semi-autonomous features as fully autonomous parking systems, enhanced adaptive cruise control and traffic jam assist are helping to gradually increase consumer awareness and trust in autonomous driving mode. Stable gas prices, along with improvements in fuel economy from
today’s vehicles, are holding consumers back from making major investments in fuel-saving technologies. Consumers view low-price fuel economy features that provide nominal gas mileage improvements as good enough, according to VanNieuwkuyk. Lower-cost features that improve fuel economy through vehicle aerodynamics receive higher interest from consumers than more expensive features targeting engine fuel efficiencies and energy collection. Convenience features also receive strong interest from consumers.
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©2014 AutoTrader.com, Inc. All Rights Reserved. “AutoTrader.com” is a registered trademark of TPI Holdings, Inc. used under exclusive license.
FS:9.375” 90234_AT_AT4-693.indd 1 20-21_UCN.indd 1
F:9.5” 5/12/14 3:48 PM
May 19, 2014ÛÛÝÛÛ~
USED CAR NEWS
Wholesale Prices Continue Climbing in April
Several media reports in the last few weeks predict a collapse in used-car prices as vehicles flood the market. But so far, prices are actually higher than they were a year ago. Wholesale used vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) rose for the fourth consecutive month in April. This resulted in a Manheim Used Vehicle Value Index reading of 124.9 for the month, a 4.8 percent increase from a year ago. Unadjusted for mileage and mix shifts, auction prices for rental risk units continued to rise in April. Adjusted for mileage and mix, prices were down marginally from March, but still up nearly 7 percent from a year ago. Average mileage slipped below 40,000 for the first time this year, but was still 9 percent higher than a year ago. Volumes sold at auction remained on the low side, and industry sources indicate new units sold into rental fleets declined 7 percent in the first four months of 2014 compared to a year ago. The bulk of that decline was accounted for by domestic manufacturers. All major market classes now have year-over-year price gains.
In April, the strongest pricing (and lowest relative supply) was in the $12,000-to-$14,000 price range. In 2013 and early 2014, the strongest pricing was often found in the $8,000-to-$10,000 price range. As measured by the National Automobile Dealers Association (NADA) Used Car Guide, prices tied with March as the highest figure reached. NADA’s seasonally adjusted used vehicle price index was little changed in April at 125.8. Following a pronounced 3.7 percent rise in March, the average price of units up to eight years in age fell by 1.1 percent in April, essentially equal to the 1 percent rate of decline recorded in April of 2012 and 2013. Price movement at a segment level was directionally in line with NADA’s expectations as prices dropped the most for the segments that experienced the biggest increases in March. After rising by an average of nearly 4 percent in March, prices for mid-size cars, utilities and vans fell by an average of 1.3 percent in April. Compact utility prices followed suit, dropping by 1.2 percent, while compact car prices slipped by a less severe 0.8 percent. Continued on next page
Source: Manheim Consulting
With Trade-In Marketplace, you can do exactly that. This unique software tool can help you source inventory more easily and increase engagement with all of your consumers, both online and the ones who walk in your front door. All of which will help drive profitability for your dealership. Learn how our Trade-In Marketplace can help you drive more profits and source inventory more easily at TIMfordealers.AutoTrader.com.
F:9.5” 20-21_UCN.indd 2
5/9/14 11:55 AM 5/12/14 3:49 PM
ÛÝÛÛMay 19, 2014
USED CAR NEWS
– Continued from prior page
While prices for all compact cars, utilities and mid-size cars were lower in April, depreciation was on average one percentage point less than what was recorded for the month last year. Mid-size utility depreciation matched last year’s pace, while the mid-size van segment fell nearly one percentage point. In a reversal from a months-long trend, large pickup depreciation was among the market leaders, as prices for the segment fell by 1.3 percent last month. April’s decline was the third largest recorded for
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the segment in the past two years, trailing the 1.6 percent drop in September 2013 and 2.4 percent drop observed in October 2013. Prices for luxury utility and luxury car prices fell by 0.6 percent and 1 percent, respectively, while large SUV prices dipped by just 0.4 percent, the least of any segment. NADA forecasts that typical seasonal forces and an increase in supply will push prices down by approximately 3 percent in May, which is roughly one percentage point more than the average decline.
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05 SvNt_Awards UCNmay19.pdf
5/8/14 10:37 AM
ÛÝÛÛMay 19, 2014
USED CAR NEWS
OEMs Join Driverless Push SALE EVERY FRIDAY AT 9:30 FLOAT SALES EVERY WEEK BEGINNING AT 8:30
Off lease & repos from Capital One, PH&H, GE Fleet, Huntington Bank, 5th 3rd, TD Auto Finance, many more.... FOX Automotive Group exclusive to WMAA with 100+ vehicles weekly Come for the best breakfast and stay for gourmet lunch at Ozzi's cafe! Questions, please contact Wendi Heasley WMAA Sales Manager | 1.800.577.2886 ext.152 West Michigan Auto Auction | 4758 Divison Street, Wayland, MI 49438 | wmaa.net
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DETROIT (AP) _ General Motors, Ford and Toyota are joining the University of Michigan in establishing a testing site for driverless cars that will simulate a cityscape, the school announced. The Michigan Mobility Transformation Center, a 32-acre testing site near the Ann Arbor school’s North Campus, is scheduled to be completed this fall. The university’s regents last year approved the $6.5 million for the project. Groundbreaking is scheduled for May 13. “The potential of this technology
is truly transformative, opening up broad opportunities in the emerging marketplace,” Peter Sweatman, director of the Mobility Transformation Center and the school’s Transportation Research Institute, said in a statement. Other companies involved include Bosch, an auto industry supplier; Econolite, which makes traffic control equipment; and Xerox. Industry partners plan to each commit a total of $1 million over three years to support the MTC and its programs, the school said.
Dealer Reviews Impact Auto Shoppers Positive online reviews that provide employee-specific information drive website traffic and leads to car dealers, according to a recent study from DealerRater and Dataium,. The study revealed that DealerRater users were 90 percent more likely to visit a dealer website and 5.3 times more likely to convert to a lead when that dealer had a positive overall rating of 3.5 stars or higher. Users reacted even stronger to review profiles that provided expanded information through DealerRater’s Certified Dealer Program. In particular, users were 12.1 times more likely to submit a lead to deal-
ers that featured employee pages on their DealerRater review profiles. Employee pages, available to participants in DealerRater’s Certified Dealer Program, allow a dealer’s customers to write reviews for individual dealer employees and feature specific information on the individual employee, such as an employee bio, photo and video greeting. “The study validates what we’ve advised dealers on for years,” said Gary Tucker, chief executive officer of DealerRater. “Dealer reviews have a clear impact on the behavior of today’s auto shoppers.”
5/12/14 1:37 PM
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USED CAR NEWS
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CarMax Supports Nonprofits The CarMax Foundation recently granted $460,000 to nonprofits in the Richmond, Va., area. The foundationâ€™s Richmond Giving Program supports programs focused on education, youth leadership and childrenâ€™s healthy living. The grantees in CarMaxâ€™s hometown provide a variety of services that are positively impacting children and families. Two examples of the more than 50 organizations benefiting from the grants include the Childrenâ€™s Museum of Richmond and Elk Hill. The CarMax Foundation is once again investing in CMORâ€™s mission to inspire the potential in every child by creating an innovative learning experience. Funding will provide continued support of CMORâ€™s kindergarten preparedness program, which seeks to ensure that children and their caregivers are ready for formal learning. The CarMax Foundation also supports CMOR through its board service program and volunteer team-builders. The foundation also will continue to strengthen its relationships with Elk Hill, located in Goochland. Elk Hill provides a healthy environment where young people and their families may receive special-
ized education, community based services and access to residential treatment programs to help redirect their lives. In addition to the program grant recently awarded to Elk Hill, the foundation also has supported the organization through its board service and volunteer team-builders. Since last summer, multiple CarMax teams have assisted Elk Hill with campus cleanups and holiday programming. In addition to these program grants, The CarMax Foundation has planned more than 50 volunteer team-builders with local nonprofits as part of CarMax Cares month in June. â€œWe are thrilled to support the work of more than 50 local nonprofit organizations in the Richmond area,â€? said Mac Stuckey, president of The CarMax Foundation and assistant vice president and deputy general counsel. â€œThe programs we are funding are not only vital to countless families, but give our associates the opportunity to create positive change in the communities where we live and work.â€? These service projects will lead to an additional $50,000 in volunteer grants for the local community.
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5/8/14 10:26 AM
ÛÝÛÛMay 19, 2014
USED CAR NEWS
GM Recalls Show Little Impact on Car Prices General Motors is recalling yet of all these recalls. So far, however, more vehicles, but these recalls Kelley Blue Book finds many GM seem to have little effect on the brands are actually bringing higher brand so far. prices these days. GM General Motors LLC is reNew GM truck models continue calling 56,214 model year 2007-08 to demand higher prices, as the Saturn Aura vehicles manufactured Silverado and Sierra climbed more April 24, 2006 through Oct. 31, 2007, than 6 percent each, Kelley reports. and equipped with a four-speed auCadillac is the only GM brand on tomatic transmission. In the affect- the decline, which is driven by its ed vehicles, the transmission shift ATS and XTS models. In addition, cable may fracture. the mix of Escalade sales is down If the transmission shift cable as the company prepares to launch fractures while the vehicle is being the redesigned 2015 model, which driven, when the driver goes to stop is bringing down Cadillac’s overall and park the vehicle, the driver will average transaction price. not be able to shift the lever to the Overall, the estimated average “park” position, or remove the igni- transaction price for light vehicles tion key. If the vehicle is not in the in the U.S. was $32,141 in April. “park” position there is a risk the New-car prices have increased vehicle will roll away as the driver by $389, or 1.2 percent, from April and other occupants exit the vehicle 2013, while decreasing $47 (0.1 peror anytime thereafter. A vehicle rol- cent) from last month. laway increases the risk of injury to In related news, a KBB.com surexiting occupants and bystanders. vey found consideration among GM will notify owners, and the majority of shoppers remains GM dealers will replace the shift unaffected. The survey data also cable assembly and mounting revealed only 5 percent of new-vebracket, free of charge. The manu- hicle shoppers say the recent GM facturer has not yet provided a recall caused them not to consider notification schedule. purchasing a Chevrolet, Cadillac, GM’s number for this recall GMC or Buick model. is 14152. Chevrolet’s traffic on KBB.com Many experts predicted a negative grew 25 percent year-over-year and IAG_MayUCN-DEALER hz.pdf 1 5/5/14 PM impact on GM’s appeal as a result the 3:18 brand saw a short-term dip of
14 percent from December 2013 to April 2014, which can be attributed to news of the recall. This confirms Chevrolet is benefiting from recent high-profile vehicle launches, including the all-new 2014 Corvette, Impala and Silverado. These models are helping the automaker remain top-of-mind among shoppers despite recalls on older, discontinued models. “Whatever negative connotations
GM has suffered from the recent recalls is minor when compared to the growing consumer interest the company has generated with its current line of compelling product,” said Karl Brauer, senior analyst for Kelley Blue Book. Even though Chevrolet is maintaining its overall stride in KBB. com’s share of traffic, the perception of Chevrolet has declined Continued on next page
5/12/14 1:53 PM
May 19, 2014Ă›Ă›Ă?Ă›Ă›Â†
USED CAR NEWS
- continued from prior page
from the first quarter of 2013 to the first quarter of this year, sitting below the average among non-luxury brands like Honda and Ford, according to survey data. This further suggests consumers are being won over by Chevroletâ€™s existing model offerings, regardless of the latest hit to its reputation. All of the major manufacturers have issued large recalls this year, so that may help GM, as well. Among new-vehicle shoppers, there is strong awareness of Toyota and General Motors recalls, Kelley reports. KBB.com survey data revealed 48 percent of respondents remembered a Toyota recall and 40 percent heard about a GM recall this year. Meanwhile, the feds have started going after dealers who knowingly sell vehicles with open recalls. The National Highway Traffic Safety Administration has opened an audit query in order to determine whether Sands Chevrolet of Surprise, Ariz., has complied with the requirements of the National Traffic and Motor Vehicle Safety Act. The Safety Act requires, among other things, that a manufacturer notify its dealers of defects related to motor vehicle safety and noncompliances with Federal Motor
Vehicle Safety Standards and, in turn, that a dealer not sell a new vehicle subject to a recall unless the recall remedy has been performed. NHTSA is in receipt of information that alleges this dealer sold and delivered at least one new vehicle to a first purchaser without having remedied safety defects. Accordingly, NHSTA is opening this audit query to seek information concerning these allegations and to verify whether improper sales were made. The recall included in this audit is NHTSA recall No. 13V-173. In other recall news, Chrysler Group LLC is recalling 644,850 model year 2010-2014 Chrysler Town and Country and Dodge Grand Caravan vehicles manufactured Aug. 25, 2010, through Oct. 31, 2013. The affected vehicles may experience overheating of the vent window switch in the driverâ€™s door armrest. An overheated switch may result in a vehicle fire. Chrysler will notify owners, and dealers will replace the vent window switch with a newer version, free of charge. The recall is expected to begin in June 2014. Owners may contact Chrysler customer service at 1-800-853-1403. Chryslerâ€™s number for this recall is P25.
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5/12/14 1:51 PM
ÛÝÛÛMay 19, 2014
USED CAR NEWS
State Seeks Lemon Law Input MADISON, Wis. (AP) – A top attorney for the state Department of Transportation sought advice on interpreting a new motor vehicle lemon law from a lawyer who tried to stop the changes in the Legislature, arguing they made it difficult for consumers to successfully sue car dealers and manufacturers. Milwaukee attorney Vince Megna, a self-proclaimed ``Lemon Law King,’’ declined to help the DOT attorney answer questions about the law’s intent. Megna said he’s likely to sue under the ``God awful’’ law and wanted to avoid a potential conflict. ``Any involvement could lead to cries by the manufacturers and/ or defense attorneys that I participated in helping to direct the very provisions that I am now challenging,’’ Megna wrote in an email sent Sunday to the DOT attorney. He provided a copy to The Associated Press. DOT assistant general counsel John Sobotik confirmed he had reached out to Megna and others with questions about the law. He referred additional questions to another DOT official, John Fandrich, who did not immediately respond to questions emailed Tuesday. Megna said in a telephone interview that he was surprised a DOT
attorney sought his opinion, given his opposition to the law. The DOT did not take a position on the law, but it is responsible for administering key portions, including making forms available for lemon law claims. “I got the feeling nobody knew what this law was all about,’’ Megna said, adding that he believes a form posted on the DOT website this week is inaccurate. Sobotik emailed Megna multiple questions on April 25, including a request for Megna’s read on a provision requiring vehicle owners to use a specific DOT form to report a lemon to manufacturers. “In my personal opinion, this provision may virtually gut the law,’’ Sobotik wrote to Megna. “What consumer is going to know he/she has to provide a silly WisDOT form to a manufacturer in order for the Lemon Law to apply to repairs they have done?’’ The Republican-controlled Legislature passed the new law last year with broad bipartisan support and the backing of car dealers and manufacturers, trial attorneys and the state chamber of commerce. Megna spoke out against the changes on a variety of grounds. He has filed more than 3,000 lemon law cases over the past 25 years.
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5/12/14 10:49 AM
May 19, 2014ÛÛÝÛÛ~
USED CAR NEWS
PEOPLE IN THE NEWS Manheim Names VPs
Manheim has named Rob Touchette as market vice president for the Pacific Market and Randy Beil as market vice president for the North Central Market. Touchette, who joined Manheim as market general sales manager in 2010, was proRob moted to his new Touchette role on April 21. The Pacific Market includes five operating locations: Manheim Central California (Fresno), Manheim Hawaii, Manheim Portland, Manheim San Francisco Bay and Manheim Seattle. Prior to joining Manheim, Touchette worked for Cox AutoTrader for more than 10 years in a variety of roles, including district manager, general manager and advertising sales representative. “As a proven leader with deep automotive and sales expertise, Randy Rob will use his experience to Beil deliver solutions
that drive customer growth and operational excellence,” said Rock Anderson, Manheim’s regional vice president for West Region Operations. “It’s always exciting to promote great talent, which is a key part of motivating employee teams and delivering a great experience for our customers.” Beil joins Manheim from JPMorgan Chase, where he has been vice president of remarketing for Chase Auto Finance since 2010. In this role, he was responsible for management of the entire lease process and remarketing interactions with Chase customers. “With over 20 years of experience in the automotive finance and remarketing industry, Randy will complement our strong leadership team and operations in the North Central Market,” said Mike McKinney, Manheim’s regional vice president for East Region Operations. “In addition, as a previous customer and strong collaborator who assisted in the creation of auction technology, Randy brings valuable insights and innovative thinking to this important leadership role.” As market vice president, Beil will be responsible for leading seven operating locations in the North Central Market: Manheim Cincinnati, Manheim Detroit, Manheim Flint (Total Resource Auctions), Man-
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heim Indianapolis, Manheim Louisville, Manheim Ohio (Grove City) and Manheim Pittsburgh. Previously, Beil worked for BMW of North America/BMW Financial Services, where he held a variety of positions including general manager of vehicle sales and remarketing, national manager of remarketing and national dealer and auction sales manager.
Auction Edge Taps President
The board of Auction Edge announced that Scott Finkle will serve as president of the auction industry technology company. With the initial startup phase of Auction Edge complete, former CEO and startup specialist David Weld has left the company. Scott Finkle most recently served as Finkle president of Auction Edge’s AuctionPipeline division.
can College of Consumer Financial Services Lawyers. The award is given periodically to a person who has made significant contributions in the field of consumer financial services. The award includes a $3,000 donation from the college to be directed to an organization that promotes the public interest in the area of consumer financial services. Fortney named the Navy-Marine Corps Relief Society because it provides emergency financial assistance and financial counseling for Navy and Marine Corps personnel and their families. Fortney’s husband, retired Rear Admiral Richard A. Riddell, is a former Navy submariner. Fortney is a partner with Hudson Cook LLP.
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5/12/14 3:54 PM
Â€Ă›Ă?Ă›Ă›May 19, 2014
USED CAR NEWS
RETAIL MARKETS ARIZONA
Hussein Amin, president, Car Mix Motor Co., Phoenix: â€œWeâ€™ve been in business for about 20 years. â€œI have one location. â€œUsually, I keep between 40 to 55 units (in stock). â€œI usually sell between 10 and 20 monthly. â€œUnfortunately, Iâ€™m selling a little less this year (so far) compared to last year. I talked to other dealers and they all agreed the tax money came earlier and then slowed down dramatically. â€œNinety-nine percent of my inventory comes from auctions. â€œI do straight retail, prime financing. The average sale price is between $7,000 to $9,000. â€œI have almost 80 percent imports and 20 percent domestic. â€œI do have a few high-end cars, like BMWs and a couple of Mercedes. â€œBut those arenâ€™t 50,000mile (units), those are 80,000-mile vehicles to 120,000 or 125,000 miles. â€œI have 75 percent cars
and 25 percent SUVs, with only one truck. â€œThe average mileage is 90,000 to 95,000 and the average model year is 2001 to 2008. â€œIâ€™m always trying to get cars â€“ at the most â€“ with 110,000 to 120,000 miles. â€œIâ€™ve been doing this for many years, but starting six or seven years ago (things changed). The car I used to buy I canâ€™t even touch anymore. â€œReconditioning is a very important issue. On average, I spend between $600 and $1,000. â€œWith most of the cars I buy, I have to recon them one way or another. I like my cars to be in very good shape. But here in Arizona, the sun really destroys the paint, the leather and the tires. â€œThe other (thing affected) is the window regulators. Thatâ€™s a big issue. With my imports, the regulators are failing after some time. There are plastic pieces inside the doors and the moon roof (that break down). â€œNow I send the cars out (for recon). If I have a BMW
Compiled by Jeffrey Bellant that needs work, I send it to a BMW certified mechanic. If Iâ€™m working with Mercedes, I take it to the Mercedes mechanic. So I take it to the mechanic who knows about the car. â€œI advertise on Cars.com, AutoTrader.com and Craigslist. Recently we added cargurus.com. â€œI recently sold a 2001 Lexus IS300. It had 125,000 miles. I sold it for $8,500.â€?
Gordon Tormohlen, president, Tormohlenâ€™s Good People Automotive, Freeport, Ill.: â€œWe have this store and a second location in Monroe, Wis. Itâ€™s about 30 miles straight north. We have been at this (Freeport) location since 1996 and my family has been in the business since 1940. The Wisconsin location has been open two years. â€œOn average, we stock 95 to 100 units at both locations. Thatâ€™s about the same as this time last year. â€œWeâ€™re selling about 20 a month. Thatâ€™s down com-
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pared to this time last year. The Wisconsin market is still fairly vibrant but the Illinois market is hurting. The best way to put it would be: The Illinois government is not as business friendly as the Wisconsin government. â€œMost of my inventory comes from auctions. I probably source 80 percent of my stuff from the Greater Rockford Auto Auction. The rest is a mix of online and other sources. â€œAbout 95 percent of my business is buy-here, payhere. Weâ€™ve (strictly) been buy-here, pay-here at this location since 2000. â€œOur average down payment is $900. Seventy-five percent of our contracts are two-year terms and the remaining 25 percent are three years. â€œOur payments vary but on average theyâ€™re about $90 per week. â€œIn the Freeport market our average price is $8,300 and in the Monroe, Wis., market our average price is $9,700. â€œOur inventory is mostly domestic. It would be a stretch to say we have 10
percent import. â€œThe average car in our Freeport store is 10 to 11 years old. The average mileage is about 140,000. But we spend the money to recondition them. On average, we spend about $1,200. The big key is, if I can buy the car right, I can still recon it and come out all right cost-wise. The other factor for me is (after reconditioning it) I know what I have. â€œWe service the cars ourselves. Weâ€™re running five guys out of six bays, so weâ€™re a little cramped. We do outside work as well. We have a pretty substantial customer pay base. â€œ(For marketing and advertising) I have the website, thatâ€™s about it. Weâ€™ve been at this long enough where we have a lot of repeats and referrals, about 80 percent of our business. â€œBut weâ€™re at a juncture where we probably have to do a little bit more marketing. Thatâ€™s something weâ€™re looking to address in the next couple of months. â€œWe recently sold a 1999 Chrysler LHS with 109,000 miles for $7,350.â€?
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5/12/14 3:29 PM
May 19, 2014ÛÛÝÛÛ
USED CAR NEWS
WHOLESALE MARKETS MAINE
Mark Wescott, general manager, Port City Auto Auction, Richmond, Maine: “We recently had our 30th anniversary. “We’ve got six lanes and we’re utilizing four. “Volumes have not been too bad. We’ve been up in the low 400s, but averaging about 375. “Those (numbers) are a little bit better than this time last year. “We’ve had some decent sales percentages, as high as the mid-70s. But basically we’ve been in the high 60s on average – 67 to 68 percent. “Tax season was what I’d call a ‘honeymoon period.’ It was like a two-week (run). It was almost as if the buyers waited until that income tax money was floating around before buying. It wasn’t as though they were buying in January to have them available. They waited until the money was available, then hit the auctions and bought. “We are mostly dealer consignment.
“We also have a few offlease and repos from area credit unions and lending institutions. There really hasn’t been a change in those volumes. We’re hoping for an increase this year. “We have a toy sale for recreational vehicles on the third week of every month. We’ll sell boats, campers, motorcycles, snowmobiles, lawn mowers – anything. “We have a late-model sale (2007 and newer, under 80,000 miles) every fourth week of the month. We typically average about 80 of those units. “Maine got its butt kicked this winter. We didn’t cancel any sales. But we typically postpone a sale for an hour or two (after a storm). It gives guys a chance to come in. “Dealers in Maine are used to the snow. So a lot of the guys come out of the dealerships if it snows (the day of the auction) because there’s no retail traffic anyway. “We had about 275 buyers in the lanes (at the May 8 sale). That’s about the same as last year. Dealers come
Compiled by Jeffrey Bellant from all over the Northeast. Last month was a good month for dealers. “Our average price across the block is $4,400. That’s up a couple of hundred from last year. “The low-end market has softened up a bit. But the mid-range and high-end markets are doing well.
Ryan Durst, vice president/general manager, Lincoln Auto Auction, Waverly, Neb.: “We’re going on 22 years in business. “We have four lanes and we’re running four lanes. “We’re up in volume from this time last year. We’re running between 275 and 325 every week. Last year we were in the 250 to 275 range. “Sales percentages are near 70 percent. I would compare our percentages with any auction. “Consignment’s up and sales percentages are up. We’ve got a few new accounts that are bringing cars and selling cars.
We’re actively out looking for (sellers). “I just think guys around here are doing good business. They’re trading for stuff and selling cars. One of our biggest dealers will run 45 to 50 cars a week. “We’re getting between 190 and 220 bidders in the lanes. That’s up from about 170 this time last year. “I attribute that to guys doing more business and we’ve vamped up our simulcast. We’ve had a ton of action online, a ton of bidders online. It’s growing every week. “We use Auction Edge with Edge Simulcast. “We were kind of late on simulcast. We had it with our GSA sales the last three years, but we just never used it for our regular sale. So we made an effort, starting seven or eight months ago, to get it going. We’ve had great success with it. “With the online sales, dealers are buying from New Jersey, California, Florida and everywhere across the country. “We’re about 90 percent dealer consignment and 10
percent repossessions/fleet. “Our first GSA of the year is May 21. “(Bidders) are coming from all over Nebraska, Colorado, South Dakota, Minnesota, Iowa, Missouri, Kansas and Oklahoma. “Dealers that consistently come to our sale are in a good mood because they know they’re going to get a car bought. “For our GSA sales, we’ve had online sales all winter, we just haven’t had enough to have a (physical sale) until this month. “So we’ll have an (inlane) GSA sale every month through December. We normally run between 120 and 140 units each sale. “The average price here is right at $4,100. That’s up from this time last year. “We’re expecting a better year than last year. We’ve actually grown every year since the (downturn). Our sales percentage, (vehicles) sold and consignment numbers have all grown since 2010. We’re probably 8 percent ahead of last year at this point and we had a really good year last year.”
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Â€Â Ă›Ă?Ă›Ă›May 19, 2014
USED CAR NEWS
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DOMESTIC Apr â€˜14 Ford/Lincoln/Mercury 21,911 Ford / Mercury 19,724 Lincoln 2,187 GM 33,063 Buick 3,490 Chevrolet 23,871 GMC 5,478 Oldsmobile Pontiac 178 Saturn 46 Hummer 0 Cadillac 1,872 Saturn through 2009 Chrysler/Dodge/Jeep 11,407 Chrysler 2,269 Dodge 5,234 Jeep 3,904 Memo: Fiat 30 Memo: Chrysler w. Fiat 11,437 Total Domestics 68,253
Aprâ€™13 18,852 16,975 1,877 29,800 2,597 22,182 4,358 459 204 1 1,575 9,882 2,055 4,557 3,270 17 9,899 60,110
â€˜14 YTD 85,771 77,672 8,099 125,625 11,175 93,017 20,471 731 231 1 6,705 46,225 9,036 21,531 15,658 128 46,353 264,327
â€˜13 YTD 69,131 62,390 6,741 111,715 9,055 83,582 16,258 1,868 952 6 6,185 39,029 8,285 18,311 12,433 71 39,100 226,066
ASIAN Honda Acura Nissan Infiniti Toyota Lexus Hyundai Kia Mazda Mitsubishi Suzuki Subaru Total Asian
Apr â€˜14 19,802 3,579 11,482 1,739 29,729 6,149 7,930 3,544 3,317 61 3,695 91,027
Aprâ€™13 20,501 3,393 9,424 899 31,140 6,122 6,218 2,544 2,930 50 2,781 86,002
â€˜14 YTD 77,980 13,439 43,783 5,802 115,598 24,211 30,278 13,830 13,533 216 14,138 352,808
â€˜13 YTD 78,567 13,116 36,858 3,629 120,220 23,413 23,953 9,625 11,518 208 10,450 331,557
EUROPEAN Audi Bentley - EST. BMW Fiat Jaguar Land Rover Mercedes-Benz Smart MINI Porsche Volkswagen Maserati Volvo Car Total European
Apr â€˜14 3,702 30 7,784 30 560 1,069 9,698 7 720 1,021 7,922 32 1,236 33,811
Aprâ€™13 3,257 30 6,768 17 266 495 8,738 10 522 822 8,237 35 961 30,158
â€˜14 YTD 14,016 120 30,011 128 1,894 3,750 37,716 39 2,815 3,668 29,393 139 4,037 127,726
â€˜13 YTD 12,311 120 26,314 71 1,153 2,173 33,091 27 1,885 3,193 31,988 135 3,786 116,247
Total - EST.
193,091 176,270 744,861 673,870 Source: Autodata Corp.
5/9/14 4:24 PM
ACTUAL WHOLESALE AND PROJECTED RESIDUAL VALUES MAY 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
May-13 22000 27500 13200 12950 18650 13450 13300 16800 18350 24300 May-13 25800 30200 61000 16100 15300 29800 36600 11800 13100 14400 12200 15900 13300 15900 May-13 34650 48550 30350 20850 18100 20475 29900 15950 21950 18500 27550 21200 21300 19300 19850 29500
Nov-13 20950 23500 11450 11000 17100 11950 11650 15100 16300 22200 Nov-13 23400 26000 57000 14550 12700 28400 34600 12200 11450 12750 10900 14500 11850 14450 Nov-13 32400 45500 26800 20450 15400 19975 29950 14750 21025 15500 26850 20850 19500 17500 19450 27450
May-14 18850 23250 11400 12000 18150 12550 11700 15800 16800 21400 May-14 21600 25150 52400 14850 13450 26400 31400 11400 12150 13450 11500 15300 12400 14350 May-14 28650 42050 27100 20250 14750 20075 28125 14750 21500 16550 28000 21175 21200 17600 18500 27800
Projected Figures May-15 May-16 16300 13950 18825 15525 8925 7725 9200 8150 14000 11950 9225 7850 8925 7650 12650 11325 13025 11275 17300 15175 May-15 May-16 18200 15675 20000 16700 43050 36500 12225 10850 10725 9100 21275 18725 26375 22050 9050 7725 9900 8625 10975 9550 8725 7600 11900 10525 10225 8925 12600 10800 May-15 May-16 23975 20275 35375 30150 22200 19450 16825 14800 11075 9350 16150 14400 23225 20525 10350 8275 16000 13725 13350 11300 21300 17950 16550 14375 15500 13175 14650 12925 15125 13275 23000 20025
May-13 14600 18500 8400 10200 13550 10300 13400 14950 17800 9600 May-13 20800 20600 42700 13150 10050 22600 27600 9200 10600 11900 10150 12650 10700 12750 May-13 26750 38850 25300 17075 14500 18175 23350 12875 12025 17800 14875 17725 17200 18200 15800 14800
Nov-13 13300 17600 7200 8350 12450 8550 12000 12950 17350 8550 Nov-13 18800 17650 38050 11650 8550 21400 26800 8800 9000 10300 8900 11400 9400 11400 Nov-13 24650 36400 22500 17200 11575 17200 22675 12025 10500 16875 12500 16650 16050 16900 14300 13700
May-13 16700 24400 11800 11500 16800 11500 14800 11200 16450 22000 May-13 23200 23800 50300 14600 13850 26000 31600 10500 11900 13200 10900 14150 11900 14800 May-13 31550 43350 28000 18975 16550 19400 26775 14800 20975 16100 27400 19375 19450 17450 18500 27100
Nov-13 15050 21250 10250 9700 15650 10450 13450 9950 14500 21500 Nov-13 20800 20150 45400 13050 11350 24600 30400 10400 10200 11500 9650 12800 10550 13350 Nov-13 29200 41500 23900 18950 13100 18725 25600 12250 19725 13750 25625 19075 18800 15200 17300 24200
May-14 13500 18750 10450 10200 16200 11350 14000 9500 14750 22200 May-14 19600 19300 41600 13400 12050 22800 27600 9700 10750 12050 9850 13050 10900 12950 May-14 25650 37800 23450 18600 12600 18325 23975 12100 18800 13700 24825 18800 17900 15300 16550 23800
Projected Figures May-15 May-16 11625 10050 13950 11725 7850 6725 7725 6750 12025 10150 7950 6700 11475 10250 7450 6350 11225 9525 17050 14100 May-15 May-16 15725 13475 15725 13275 35175 29725 10750 9450 9225 7700 18500 16300 21900 18000 7550 6350 8575 7375 9550 8200 7450 6450 10375 9200 8925 7750 10300 8725 May-15 May-16 20650 17225 30625 25700 18725 16050 14950 13075 9200 7675 14600 12975 19900 17350 8700 6925 13725 11700 11050 9150 18450 15325 14400 12450 13025 11125 12675 11175 13050 11350 19625 16700
May-14 7450 13050 5350 7750 11000 5750 9450 8950 15000 6850 May-14 16200 13750 29800 10700 7100 16800 17500 6850 8700 9600 7850 9950 8250 9300 May-14 17550 28350 14250 15350 8300 14325 19500 8800 8000 11750 9700 12475 13375 6150 11250 10850
Projected Figures May-15 May-16 6075 5175 9925 8100 4400 3800 5725 4800 9250 7750 4000 3100 8025 6950 6350 5275 11200 9250 5200 4300 May-15 May-16 11525 9450 11200 9225 24300 20025 8150 6975 5650 4600 13150 11325 14325 11450 5150 4150 6400 5375 7325 6175 5550 4650 7700 6675 6525 5575 7350 6075 May-15 May-16 14125 11600 21400 17025 11125 9075 11700 9975 6375 5250 11500 10000 14975 12250 7375 6450 5725 4475 9325 7900 7400 5875 9600 7750 10600 9175 5125 4175 9350 8250 8700 7300
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
May-14 11750 15600 6350 8750 12150 8300 12400 13600 18050 8200 May-14 17800 16500 34850 12000 8250 19600 24400 8150 9500 10800 9400 11350 9500 10800 May-14 22250 33850 20600 16750 11075 16725 22100 10625 9900 14575 11400 15100 15300 14900 13400 12900
Projected Figures May-15 May-16 10025 8475 11700 9725 5200 4525 6550 5625 9725 8275 5525 4375 9775 8525 9825 8175 13825 11250 6350 5350 May-15 May-16 13625 11250 13525 11275 29625 24800 9400 8125 6825 5625 15625 13300 18125 14600 6250 5225 7425 6325 8300 7050 6750 5700 8875 7800 7575 6575 8800 7450 May-15 May-16 17500 14575 26325 21500 16175 13325 13250 11575 7825 6450 13025 11400 17575 14800 8650 7575 6850 5375 11250 9600 8825 7250 11850 9625 12025 10650 11100 9525 11075 9700 10650 9050
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
May-13 10200 15400 6750 9150 12250 7550 10950 9275 14700 8000 May-13 19000 17600 36500 11800 8600 19600 21000 7700 9600 10400 8350 11350 9200 11200 May-13 21200 34550 17550 15875 10975 15975 22400 11300 10025 14900 12975 14500 15850 11175 14350 12950
Nov-13 8750 14450 5750 7400 11050 5850 9900 8050 14400 6850 Nov-13 17000 14500 33500 10300 7250 18400 18800 7250 8350 9150 7350 10000 8250 9950 Nov-13 19800 31150 15300 15450 8475 14875 21350 9925 8600 13875 10400 13750 14525 7800 12400 11450
5/9/14 3:40 PM
ÛÛÝÛÛÛMay 19, 2014
USED CAR NEWS
Compiled By Jeffrey Bellant
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MR. TAKANO GOES TO MANHEIM: Manheim’s Karyn Wrye, Manheim senior director of industry relations (from left), Scott Hurst, Manheim market vice president for Southern California market, U.S. Congressman Mark Takano and Christopher Brown, Manheim Riverside general manager, meet during Takano’s visit to Manheim Riverside.
Manheim Riverside hosted Rep. Mark Takano (D-Riverside) on an auction visit and tour to show the value the remarketing industry provides to the auto sector and to the local economy. The tour included a view of the sale and visit with employees. On April 22, Takano’s morning visit marked his 100th visit of his “100 Business” tour that began last year. Takano toured the reconditioning center, body shop, detail area and VCI/Audi Tech Ops Center. “Manheim Riverside was honored to host Congressman Takano,” said Christopher Brown, the general manager at Manheim Riverside. “We are excited that the congressman selected Manheim Riverside as the final stop of his ‘100 business’ tour.” Takano visited with Brown, along with Scott Hurst, Manheim Southern California Market vice president and Karyn Wrye, Manheim senior director of government affairs. “This tour allowed me to talk directly with the business owners and their employees and learn what Congress can do to accelerate the area’s economic recovery,” he said in a press release.
ADESA Donates to Tornado Relief
ADESA Little Rock raised nearly $60,000 with a charity fundraiser to benefit tornado relief efforts. “Almost everyone knows someone who has been directly impacted by these recent storms,” said ADESA Little Rock General Manager Angela Sims. “We wanted to do whatever we could to help those devastated by this tragedy.” Auctioneer Steve Sims first came up with the idea for the sale. He felt this was an opportunity for ADESA employees and dealers to support the local community. “The entire team is thankful that our dealers share our philosophy of giving back,” Sims said. “We are
truly overjoyed for this outpouring of support.” ADESA and sister company Automotive Finance Corporation sponsored items up for auction. ADESA also contributed $5,000 cash. Proceeds from the sale were donated to the American Red Cross of Greater Arkansas. We invite news items and top-quality photos from our readers to be considered for “Around the Block.” Please include the name of a contact person and a telephone number. Send items and photos to: Jeffrey Bellant Mail: Used Car News, 24114 Harper Ave., St. Clair Shores, MI 48080. Fax: (586) 772-9400 e-mail: firstname.lastname@example.org
5/12/14 10:56 AM
May 19, 2014Ă›Ă›Ă?Ă›Ă›Â€Â„
USED CAR NEWS
Disconnected Jottings From Tony Moorby... The more you learn, the more you earn â€“ an axiom that seems to ring true. I saw some statistics the other day that underscored the observation. It would appear that college graduates earn an average of
one for Road Transport â€“ the RTITB. The board underwrote many training programs within the whole scope of transportation to the tune of 50 percent of the cost of an approved training schedule,
Ć€É&#x; Ĺ´Ĺ°Ć?3,É&#x;0.,(É&#x;) É&#x;."É&#x;#(/-.,3 Ć€É&#x; ,-#(.É&#x; ,)'É&#x;ĹąĹšĹšĹˇĆ‘Ĺ˛Ĺ°Ĺ°Ĺ°É&#x;) É&#x;É&#x;É&#x; É&#x; /.)').#0 Ć€É&#x; ,0É&#x;-É&#x;Ć‰-É&#x;2/.#0É&#x;0#É&#x;É&#x; É&#x; *,-#(.É&#x;) É&#x;-&-É&#x;(É&#x;',%.#(! Ć€É&#x; )),3É&#x;Ć É&#x;--)#.-É&#x;Ĺ˛Ĺ°Ĺ°ĹśĆ‘*,-(. Ć€É&#x; 1,É&#x;."É&#x;#(!É&#x;) É&#x;)(),É&#x;3É&#x;É&#x; É&#x; Ć€É&#x; É&#x;&&É&#x;) É&#x;',
84 percent more money over the course of a working life than high school graduates. Iâ€™ve noted here before that I didnâ€™t go to university, although academically qualified to scrape my way into an English â€˜red-brickâ€™ college (neither Oxford nor Cambridge), it was more a function of how the grant system worked back then. Being a twin, only one of us could get the subsidy and so we both decided to go to work. In the late sixties the government sponsored some Industry Training Boards for various industries, including
including the traineesâ€™ wages. I managed, through a series of grueling interviews, to secure a place (two out of 520 applicants) to participate in a three-year training program in retail distribution. That meant learning everything from top to bottom in a large domestic dealership that sold everything from Vauxhall cars to large Bedford trucks. Used vehicle operations covered all makes of cars and trucks and even back then we had a very sophisticated used vehicle warranty system that covered vehicles for 12 months.
New vehicles were sold retail, of course, but we had a huge fleet sales department supplying vehicles to large fleets and rental companies as well as the government and local authorities. We also had a huge service operation that included everyday services for cars and trucks, paint and crash repair shops for both â€“ we used to build and paint truck bodies and had used vehicle reconditioning centers for used cars and trucks. As a Main Dealer, we controlled about eight resale dealers who bought new cars from us. We took 3 percent of the margin, but kept the bulk of the inventory at our cost. Our own vehicle transporters were dispatched and housed at the dealership along with a distribution center near the factory in Luton, Bedfordshire. The administration and accounting departments were like a small city. Indeed the whole complex was huge, taking about 15 acres in North London and was part of a publically traded company that owned about 50 dealerships â€“ not an unusual thing in England back then.
C R O S S WO R D
30. Wear away, in a way 31. XK and F-Type, slang 32. Luxury coupe from Studebaker 35. The M in BMW 36. Mini model 37. Word used in many Nissan ads 39. Notable period 40. ____ Sedona 43. Powerful engine sound 44. VW midsize car 45. They have an FR-S TRD project car 46. Astra and Vue
To see past columns from Tony Moorby, visit www.usedcarnews.com/ columnists/tony-moorby 1
1. Chevy sedan 4. Kia sedans 8. ___-down, convertible option 10. Ghibli makers 12. Ford crossover 13. ___-owned 14. Relating to a carâ€™s capabilities in relation to wind resistance 19. Dashboard abbreviation 21. Symbol for sodium 22. Suffix with bull or bear 23. Word used on many route directions 24. Tribeca manufacturer 26. Mid-size Nissan
That responsibility has now been taken on by TPC Management in Franklin, Tenn., through a program called Auction Academy. A two-year course, originally designed for auction ownersâ€™ sons and daughters, ensures an abiding insight to auction operations but more importantly introduces the delegates to their peers in the business. This networking will provide friendships and opportunities throughout their lifetimes. The course has now been extended to include managers at auctions and related businesses so the scope becomes even broader. The auction business, like the car business in general has become more complex and itâ€™s exciting to see that training still has a role to ensure the industryâ€™s well-being and legacy are protected and its members make a good living in the process.
Sponsored by INSURANCE AUTO AUCTIONS
By Miles Mellor
I was like a sponge and loved every minute of it and threw myself into any training program that would further my understanding and knowledge of the industry. The best ever was the General Motorsâ€™ Dealer Executive Course, normally reserved for dealership ownersâ€™ sons (no daughters in those days!) and I was one of the first sponsored members. The importance of training has been a watchword for me ever since. Unfortunately, in hard times the training budget (if there is one at all) is the first to be decimated in expense control, followed closely by cuts in advertising. I instituted a similar course for auction management at Anglo American Auto Auctions, later ADT Automotive, providing a successful career path for many who still enjoy the business.
1. Jeep SUV 2. Big family name at Indy 3. Goof 4. 87 or 91, at the pump 5. Trademark, abbreviation 6. ___size sedan 7. Direct a car 9. Old Chrysler 11. â€œRoses ___ red ...â€? 12. Be 15. ___ whim (2 words) 16. Old Dodge 17. Mid-sized Mercury model 18. Windy city, abbr. 20. __ Cruiser 25. Veyron, for one 27. Form of address 28. Ford or Toyota, e.g. 29. Dodge sedan 31. Traffic snarl-up 33. Maker of the Amigo S.U.V. 34. Malaysian car maker that produces the Savvy
Answers to the 5/5/14 puzzle 1
36. Mercedes-Benz S-_____ 37. Desperate call, for short 38. Move to and __ 41. Saturn compact 42. Long-eared animal
U A N
E L I
A R T
S Y S T
M S 46
W O O
Answers to this puzzle in the 6/2/14 issue. Call 1.800.794.0760 for a FREE subscription.
5/12/14 10:53 AM
ÛÝÛÛMay 19, 2014
USED CAR NEWS
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