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May 20, 2013






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ON THE WEB: Demand Increases for Floor Plan ABS

City Puts Freeze on Store Expansion By Ed Fitzgerald

Solid asset performance and higher auto sales will likely increase demand for wholesale dealer lending and drive issuance of new U.S. dealer floor plan ABS, though the sector is not without potential potholes, according to Fitch Ratings in a new report. U.S. auto dealerships are in solid shape through the first quarter. Fitch’s outlook for asset and ratings performance remains stable in 2013. The agency rates 26 outstanding dealer floor plan ABS transactions

Creditor Expands into Nineteen States

Global Lending Services is actively purchasing automobile finance contracts in 19 states. Since the purchase of the assets and platform of Resurgent Auto Finance in August 2012, GLS has been focused on expanding its purchasing ability and geographic reach. When GLS purchased Resurgent assets, it was operating in four states.

A Detroit suburb is reworking an ordinance to stop the proliferation of used-car stores and at least one local dealer feels the city is also targeting existing lots. Warren Planning Director Ron Wuerth said the city has been swamped with requests for used car lots – receiving up to three requests weekly. “We had to issue a moratorium on the lots,” Wuerth said. “Each week the planning commission would get a couple requests, then the building division might get a request and then the zoning inspector would get a request.” Wuerth said the moratorium – originally six months long – expired April 16, but the city won’t be approving any new applications until scheduled hearings are held. He said the city currently has about 50 to 60 used-car stores. In 2008, the city had only eight lots. “And there’s another 20 people standing in line waiting to add to that number,” Wuerth said. The city’s current zoning ordinance prohibits a used car lot from operating within 700 feet of an-

TOO MUCH?: A dealership in Warren, Mich., attempts to draw shoppers. City officials claim too many used-car stores have moved into the area in the past few years.

other one, but he said that is often violated. Jeremy Smythe, who handles marketing for All American Auto Sales in Warren, feels his store is feeling the pinch unnecessarily. “The owner, David Kaczor, has been here almost 10 years and wants to expand,” he said. “But the city is not looking at it as an expansion. They want

us to rezone everything as one parcel.” He said the city wants All American to at least temporarily shut down, but is cutting them “some slack.” “Right now we are not supposed to look like we’re open for business,” Smythe said. “We can’t have a front line - our cars can’t be facing the road.” Smythe is somewhat sym-

pathetic to the city’s stance. “There are some lots on 8 Mile and Van Dyke that look like junkyards,” he said. “But we care about presentation and have done landscaping.” Smythe lays part of the blame on Warren Mayor James Fouts. “It’s really a case of one politician sticking to his guns,” Smythe said.

Rush - Dated Material

Chrysler Recalls Sport Utilities for Crash Risk Chrysler Group LLC is recalling 295,345 model year 2005-2010 Jeep Grand Cherokee vehicles manufactured Feb. 11, 2004, through March 9, 2010; and 2006-2010 Jeep Commander vehicles manufactured Jan. 31, 2005, through March 10, 2010. A transfer case electrical failure may result in an unintentional shifting of the transfer case into the neutral position. If the vehicle shifts into neutral, it may roll away increasing the risk of a crash or personal injury. The recall is expected to begin in June. Chrysler’s recall campaign number is N23.

Chrysler is also recalling 5,440 model year 2008-2012 Jeep Wrangler right-hand drive vehicles manufactured Feb. 1, 2007, through Oct. 10, 2011. The affected vehicles have airbag clockspring assemblies that could experience broken airbag circuits. In the event of a crash necessitating airbag deployment, a broken electrical circuit in the airbag clockspring wiring assembly can lead to non-deployment of the driver-side front airbag and will not be able to properly protect the driver, increasing the risk of injuries. The recall is expected to begin this month.

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May 20, 2013ÛÛÝÛۀ


CarMax Dedicates Store to Company’s Founder Nearly 20 years after CarMax Inc. opened its doors at the first store in Richmond, Va., the company honored its founder and retired board chairman, Rick Sharp, in a store dedication ceremony May 7. The company also announced the establishment of a $250,000 endowment to the Community Foundation to fund the CarMax-Rick Sharp Entrepreneur Scholarship. The Richmond TimsDispatch recently profiled Sharp and his struggle with Alzheimer’s disease. While serving as president and CEO of Circuit City Stores, Sharp led a team that created the concept of CarMax. Sharp’s vision became reality when the first CarMax store opened on West Broad Street in 1993. Sharp served as a volunteer and board member to many local non-profit and for-profit community groups including The Boys and Girls Clubs of Metro Richmond, Johns Hopkins Medicine Board of Advisors, University of Virginia Health Foundation and the VCU School of Engineering Foundation. Sharp and his family are currently involved in the Stay Sharp Fund, established two years ago by Sharp’s daughters, Donna Suro

and April Garnett. Stay Sharp Fund was created to promote awareness and support research for Alzheimer’s disease (www. The Community Foundation is selected to receive the endowment to fund the CarMax-Rick Sharp Entrepreneur Scholarship. The scholarship is expected to be awarded annually through a competitive process based on academic performance and financial need to graduating high school seniors in the greater Richmond area. During the ceremony, the company unveiled a bronze plaque featuring Sharp to be mounted at the entrance of the store. A permanent plaque in the waiting area will also share the leader’s contributions and CarMax history. Menwhile, the company Sharo helpd found continued its tradition of giving back to the communities in which its stores are located. Associates from CarMax teamed up with The CarMax Foundation to form a lasting relationship with the Second Harvest Food Bank of Orange County, Calif. The organization received a $25,000 grant on behalf of the company’s Regional Giving Program after Los Angeles Region associates

nominated the charity. Thirty-seven associates of The CarMax Foundation joined together at the food bank for a volunteer teambuilder. Associates packed boxes of food for local families in need. Each box is designed to feed an average sized family for one week and contains items such as pasta, cereal, beef stew, peanut butter and canned pears. After only two hours of work, the associates packed 1,762 boxes, enough food to feed 5,637 people. The Foundation grant went to the nonprofit’s “Farm to Family” program. Farm to Family is a fresh produce program that connects local California farmers to families in need by distributing surplus fruits and vegetables that would otherwise be destroyed. The food bank provides 1.4 million pounds of food to approximately 230,000 people per month. In addition to the grant, the Second Harvest Food Bank of Orange County will receive a $500 donation from The Foundation in honor of the associates’ donated time. Associates from the Costa Mesa and Buena Park CarMax locations have continued the community service by participating in the food bank’s “Meals 4 Minds” program.

LOOKING BACK: CarMax founder Richard Sharp and CEO Tom Folliard look over a display the superstore chain’s milestones. Sharp was an executive at Circuit City Inc. when he oversaw the move into used-car sales.

The team helps distribute produce in a mobile pantry to students and their families in Santa Ana. With

each delivery the food truck transports at least 5,000 pounds of fruit, vegetables and dry goods.

Lease-Here, Pay-Here Requires Commitment By Jeffrey Bellant

LAS VEGAS – Lease-here, payhere remains a tempting market for dealers, but it requires a total commitment, experts said. Dealers and industry experts discussed the leasing market during a recent conference. “If you’re in a state where the sales tax is onerous, it’s a pretty good deal,” said Jeff McCurry of Finance Express. “But you really need to research it to see if it fits your (situation). We think it’s going to be a growing part of our business that we’re continuing to invest heavily in.” Eric Hurst of NextGear Capital warned that dealers should commit to either leasing or traditional buy-here, pay-here, but not try to jump back and forth. David Keller, a partner with CliftonLarsonAllen, a certified public accounting firm, said the challenge of lease-here, pay-here is that,

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because of different laws, “it’s very state specific.” Dealers should understand their rate of repossessions, actual losses, etc., over a period of years to determine whether leasing would help them come out ahead or not. The other challenge, panelists said, is that there really isn’t a secondary market for lease paper. “That’s a very big factor,” Keller said. The good news for dealers is the ability to acquire inventory with floor planning. On the floor planning side, Eric Hurst, of NextGear Capital, said capital is still fairly cheap and it’s a “very robust environment.” Tom Hudson, partner at Hudson Cook, recommends obtaining a guide on vehicle leasing from the Federal Reserve Board. Even though it’s directed at consumers, it may help dealers better understand the process. He also said dealers should look at an actual leasing document to understand

Photo by Jeffrey Bellant LAW MAN: Attorney Tom Hudson (left) offers tips and warnings to dealers who consider entering the lease-here, pay-here market.

what the transaction is about. Lastly, Hudson suggested dealers contact the

National Vehicle Leasing Association for more information.

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 ÛÛ�ÛÛÛMay 20, 2013


NEWS BRIEFS GM Financial Sees Lower Profit

General Motors Financial Company Inc. reported net income of $106 million for the quarter ended March 31, compared to $112 million for the quarter ended March 31, 2012. Consumer loan originations were $1.4 billion for the quarter ended March 31, compared to $1.2 billion for the quarter ended Dec. 31, 2012, and $1.4 billion for the quarter ended March 31, 2012. The outstanding balance of consumer finance receivables totaled $11.2 billion at March 31. Lease originations of General Motors Co. vehicles were $620 million for the quarter ended March 31, compared to $265 million for the quarter ended Dec.31, 2012 and

$384 million for the quarter ended March 31, 2012. Leased vehicles, net, totaled $2.1 billion at March 31. Consumer finance receivables 31-to-60 days delinquent were 4.3 percent of the portfolio at March 31, compared to 3.2 percent at March 31, 2012. Accounts more than 60 days delinquent were 1.5 percent of the portfolio at March 31, compared to 1.2 percent a year ago. Annualized net credit losses were 2.6 percent of average consumer finance receivables for the quarter ended March 31, 2013, compared to 2.5 percent for the quarter ended March 31, 2012. The company had total available liquidity of $3.3 billion at March 31, consisting of $2.9 billion of unre-


'-É&#x;,,3É&#x; 1,(, a member of the National Auto Auction Association Hall of Fame, died May 2. He was 90. Lawrence served in the U.S. Army Air Corps during World War II. He then attended the Johns Hopkins University, graduating in 1951 with a degree in political economy. Lawrence joined the National Automobile Dealers Association Used Car Guide as an editor in 1956 and was promoted to publisher in 1966, a position he held until his retirement in 1988.

He was the recipient of numerous industry awards, including induction into the NAAA Hall of Fame. Lawrence is survived by his son, Eric (Karin) Lawrence of Black Book and several grandchildren. C R O S S WO R D by Myles Mellor


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

"59!.$3%,,./74(25*5.%4(4/).#2%!3%9/52#(!.#%3!47)..).' Join the Conversation! Visit Used Car News online at or scan this QR code with your smartphone to be taken directly to the website.



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Buy-Here, Pay-Here Inventory Remains Pricey Inventory costs for buyhere, pay-here dealers remain high despite moderation in the overall market, a trend that could continue for years. Despite the overall easing in wholesale values, buyhere, pay-here dealers experienced no relief in their acquisition costs, reported Manheim chief economist Tom Webb. Indeed, those operators holding their average per vehicle costs steady had to accept a vehicle with considerably higher mileage. Wholesale used vehicle prices (on a mix-, mileage-, and seasonally adjusted ba-

sis) declined 1 percent in April. This brought the Manheim Used Vehicle Value Index to a level of 119.2, which was 5.5 percent lower than a year ago. Webb said buy-here, payhere dealers compete with auto recyclers along with other dealers as prices for salvage increase, Webb said. Prices for rental risk units sold at auction (adjusted for changes in mix and mileage) were 4.1 percent lower than their year-ago levels. Vehicles selling just below the price point for many rental risk units were the weakest segment in April.

130 125 120 115 110 105 100 95 90 Jan-95







Jan-09 Jan-11 Jan-13 Source: Manheim Consulting

CFPB Issues Rule for Enforcement Penalty Fund Use The Consumer Financial Protection Bureau is issuing a rule to govern the administration of the agency’s Civil Penalty Fund. The CFPB is also releasing a notice of proposed rulemaking seeking public comment on the management of the fund. The rule creates a transparent process for allocating money from

the Bureau’s Civil Penalty Fund to compensate victims harmed by a person or company that was fined in an enforcement action brought by the Bureau. The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 established a CFPB Civil Penalty Fund. If a person or company violates a federal con-

sumer financial protection law, the Bureau can bring an enforcement action against them, which could result in the person or company having to pay a civil penalty. When the Bureau collects civil penalties, it deposits them in the fund. The rule describes the conditions under which the Bureau may make payments to victims and establish-

es a timetable and procedures for allocating funds for payments to victims. Under the rule, money in the Civil Penalty Fund will be used to provide compensation to victims of violations for which civil penalties have been imposed. The amount the Bureau may provide will depend on the compensation victims may have received from other sources.

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ƒÛÝÛÛMay 20, 2013


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

April ‘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

‘13 YTD 69,131 62,390 6,741 111,715 9,055 83,582 16,258 1,868 952 6 6,316 39,029 8,285 18,311 12,433 71 39,100 226,197

‘12 YTD 51,761 45,093 6,668 95,255 7,211 68,392 12,985 4,426 2,241 54 6,058

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

April ‘13 20,501 3,393 9,424 899 31,139 6,111 6,218 2,544 2,930 26 2,755 85,940

‘13 YTD 78,567 13,116 36,858 3,629 120,219 23,402 23,952 9,625 11,518 177 10,424 331,487

‘12 YTD 78,780 13,822 33,934 4,482 107,358 23,065 21,133 5,465 7,442 215 7,532 303,228

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

April ‘13 3,257 30 6,768 17 285 580 8,738 10 522 824 8,237 35 961 30,264

‘13 YTD 12,311 120 26,314 71 1,172 2,258 33,091 27 1,885 3,195 31,988 135 3,786 116,353

‘12 YTD 11,649 120 24,693 17 1,108 2,063 26,292 882 3,155 28,744 147 3,773 102,643

Total - EST..




38,875 8,049 18,397 12,429 17 38,892 192,003

Source: Autodata Corp.

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May 20, 2013ÛÛ�Ûۄ


Car Site Wins B-School Contest The Wharton School of the University of Pennsylvania announced that student team ZenKars won the $30,000 Perlman Prize at the 2013 Wharton Business Plan Competition (BPC). The prize was awarded at the Wharton School’s 15th Annual Venture Finals on April 24 where student finalists received more than $115,000 in combined cash prizes and in-kind legal/accounting services. ZenKars, which also received Wharton BPC’s “Committee’s Choice Award,� is an online retailer of used cars targeting a $600 billion market. Jean-Mathieu (Jim) Chabas and Venkat Jonnala, co-founders and second year MBA students, have created an online model connecting used cars from corporate directly to consumers. Their “peaceful buying experience� for the buyer offers competitive prices, detailed vehicle information, convenience and warranties. The ZenKars co-founders met last summer on Facebook while looking for roommates in Philadelphia. Chabas and Jonnala eventually found themselves batting entrepreneurial ideas around and landed on what has become ZenKars, which was soon accepted into the DreamIt Ventures accelerator, from whom they

received additional seed funding. The Venture Finals, which is the yearlong Wharton BPC’s culminating event, attracted nearly 300 venture capitalists, business leaders, faculty members and students. This year, 140 concepts were submitted for the competitive phase of the Wharton BPC. While the Venture Finals judges deliberated over the top three prizes, the “Great Eight� Finalist teams competed for the Michelson “People’s Choice Award,� which allowed the audience of hundreds to vote on their favorite elevator pitch. This year the crowd favorite was MacuLens whose eyeglass lens technology helps reduce the glare of high intensity auto headlights. MacuLens also won the Venture Finals second place award of $15,000. Both ZenKars and MacuLens are members the Wharton Venture Initiation Program incubator. MacuLens is also a recipient of a Wharton Venture Award which provides a $10,000 grant to allow startups to work full-time on a venture over the summer. Over the years, the Wharton Business Plan Competition has seen numerous student teams go on to become successful businesses.





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Use of Payment Devices Requires Dealer Diligence By Jeffrey Bellant

LAS VEGAS – Dealers attending the 19th annual Leedom Group Buy-Here, Pay-Here World Convention grilled panelists on payment devices and collection issues during a discussion. Educating the consumer is key, said Chris Machea of Passtime. The tool is basically “the consignor for their loan,” so they should look at it that way. “It’s not something Pthat’s punitive to them,” Machea said. Dealers should focus on getting the right features for their payment devices. Payment devices with GPS capabilities, outside of encouraging on-time payments, also help dealers locate vehicles in the case of skips. “So the first thing you want is to make sure the unit has a back-up battery,” said Ariad Sommer of Ituran USA. The back-up battery first helps alert you when there has been a tampering situation. “The second thing the battery does for you is it helps you locate the car,”

Sommer said. “In many cases, people will disconnect the unit and throw it in the backseat, not knowing that the battery will continue to work for up to 36 hours.” Machea agreed that having tools that alert the dealer to tampering – which Passtime offers – are important. They can alert dealers when a device has been bypassed. Passtime has developed a feature that alerts the dealer when power has been removed completely from the device, without utilizing a battery. “Unfortunately, tampering is part of our business,” said Sommer. He says statistics show 3 to 5 percent of buy-here, pay-here accounts result in a customer tampering with a payment device. “You should be prepared for this,” Sommer said. He added that many devices even have additional features. Ituran USA offers a parking report that tracks the parking behavior of a customer that might not be identified from a credit application. For example, while a

Photo by Jeffrey Bellant ADVICE: Ariad Sommer of Ituran USA offers tips on the best use of payment devices, GPS and other tools for buy-here, pay-here dealers during a recent conference in Las Vegas.

credit app will show the dealer where the customer lives, a parking report may show other regular stops a customer makes, such as the gym, church, school or friend’s house. Sommer said dealers

shouldalso assign a staffer who can focus on the GPS technology to avoid skips and detect where a car might be with the help of the GPS features. But Machea also stressed that dealers must make

the proper disclosures to customers. Along with disclosures, Sommer warned that when dealers give GPS information to repo agents, they limit their access to customer accounts.

Today’s Used Car Shoppers Often Already On the Lot By Ted Craig

Many common beliefs about online automotive marketing are flawed.

CEO of That is because of the power of search engines and the unusual paths consumers often take to purchases.

their ownership strategy in the course of shopping. In this case, the shopper considered keeping his old vehicle and adding the Op-

“Consumers are driving the process and you are sometimes along for the ride.” Mitch Golub The marketplace consists of the Big Two (AutoTrader. com and and numerous other smaller sites, ranging from AOL Autos to fan enthusiast sites. It would seem enough to post cars on the two biggest sites, but that lowers the chances of inventory being seen. “Make sure inventory is distributed to all these marketplaces,” said Lance Schafer,

…ÛÛÝ May 20, 2013

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Randy Johnson, national dealer educator at, gave the example of an actual customer who ended up buying a new Audi Q7, but only after looking at online ads for a used Q7, a certified preowned BMW X5 and a new Kia Optima. The Optima seems an odd detour in the search for a luxury SUV, but Johnson said people often change

tima for daily commuting. Peter Leto, of Google Inc.’s dealer jumpstart team, said 80 percent of shoppers buy a brand other than their initially searched vehicle. Shoppers are doing more than looking at cars online and reading the reviews,

said Mitch Golub, CEO of They are looking at dealerships and reading their reviews. “Consumers are driving the process and you are sometimes along for the ride,” Golub said. Many dealers wonder if they really reach consumers online since fewer and fewer seem to send in leads. Golub said that’s because consumers often are literally in the market, perhaps even on the lot, conducting their search from a mobile device. Consumers have grown so trustful of the Web that they assume inventory posted online is in stock. More than a third of traffic in March on came from mobile devices,

Golub said. Golub recommends providing staff with these same mobile devices. Consumers using desktops for searches are mostly people using computers at their places of work. Many consumers do still send in leads via email, of course. And many go unanswered, which is the biggest consumer complaint, Schafer said. Sometimes the problem lies with unresponsive staff and other times emails get caught in spam filters. Whatever the problem, it needs fixing, Schafer said. The main lesson a dealer must learn is the idea of an Internet sales department is over, Golub said. “Internet sales today is just sales,” he said.


5/13/13 4:03 PM

Jim Arrigo Owner President, Arrigo Automotive Group


At Ally, we put nearly a century of automotive experience into creating industry-leading products designed to help our dealers succeed. That includes innovative tools like SmartAuction®. With over 4 million vehicles sold, an incredibly robust search capability and the power to buy and sell from virtually anywhere, it’s all the incentive you’ll need to manage your inventory quicker, easier and more conveniently. For more information, visit or call 1-877-273-5572. ©2013 Ally Financial. All rights reserved. SmartAuction is a registered service mark of Ally Financial Inc.

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~‡Û�ÛÛMay 20, 2013


Suit Claims Use of Deceptive Tactics




The Illinois attorney general filed a lawsuit against a Cartervillebased auto dealership for deceptive sales tactics. The lawsuit, filed in Williamson County Circuit Court, alleges that Kevin Darnell and his company RTO Auto Sales sold used cars “as is� and falsely promised either that the vehicle was in good condition or that if mechanical problems occurred, he would repair the vehicles. However, Darnell allegedly failed to make the promised repairs and refused refunds to consumers who had purchased faulty vehicles. The suit also alleges Darnell promised but failed to pay off at least one consumer’s loan on a trade-in vehicle, and in some cases, failed to remit costs for license plates, titles and sales taxes. The attorney gpeneral’s office has received nine complaints against Darnell and RTO Auto, with area customers reporting from $500 to nearly $3,500 in losses. Among the most egregious complaints filed, a consumer reported purchasing a vehicle “as is� but with the promise that RTO Auto would make repairs as needed. Within five hours of buying the vehicle, the car began to overheat, and coolant was leaking from the radiator.

After the consumer returned the car to RTO Auto, Darnell promised to make the necessary repairs at no cost. Within four days of receiving the supposedly repaired vehicle, the car’s engine failed. Darnell refused to provide a refund but promised to exchange a functioning car for the defective vehicle. The exchanged vehicle stopped running within six days. Ultimately, after Darnell refused to refund the customer’s money or provide a fully operational car, the consumer paid nearly $800 for needed repairs on the exchanged vehicle. Additionally, the suit alleges that because Darnell failed to pay off a loan on a trade-in vehicle in at least one case, the consumer remained financially responsible for a tradedin vehicle he no longer possessed. That consumer says his credit rating consequently suffered. The lawsuit asks the court to enter a permanent injunction against the dealership. The complaint also asks the court to order Darnell and RTO Auto to pay restitution to consumers, a $50,000 civil penalty, an additional $50,000 penalty for each violation of the Consumer Fraud Act with intent to defraud and all fees associated with the investigation and prosecution of the case.

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ADESA Golden Gate June 4 209-839-8000 ADESA Kansas City June 25 816-525-1100 Columbus Fair AA June 19 614-497-2000

Manheim Detroit June 13, 27 734-654-7100 Manheim Milwaukee June 19 262-835-4436 Manheim Minneapolis June 26 763-425-7853

Manheim Pennsylvania June 7, 21 800-777-2053 Manheim Pittsburgh June 5 724-452-5555 Manheim Riverside June 4 909-689-6000

Subaru Motors Finance ADESA Boston June 28 508-626-7000

Manheim Detroit June 13, 27 734-654-7100

Manheim Pennsylvania June 7 800-777-2053

ADESA Indianapolis June 25 800-925-1210

Manheim Milwaukee June 5 262-835-4436

Manheim Pittsburgh June 5 724-452-5555

Brasher’s Salt Lake June 18 801-322-1234

Manheim Minneapolis June 26 763-425-7653

Manheim Riverside June 11 909-689-6000

Columbus Fair AA June 12 614-497-2000

Manheim New Jersey June 19 609-298-3400

Manheim Denver June 5 800-822-1177

Manheim Orlando June 4 800-337-8491

Manheim Seattle June 26 206-762-1600 Southern AA June 26 860-292-7500

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

UCN_11.indd 1

5/10/13 4:44 PM

~Û�ÛÛMay 20, 2013


   3 B U FE  % FB MF S T I JQ    ' J O B O D F $P N Q B O Z  4 P GU X B S F


Lack of Clear Titles Causes Trouble The Arkansas attorney general has filed a consumer-protection lawsuit against a Greenbrier usedcar dealership accused of failing to provide a clear title to consumers who purchased vehicles. Carco of Arkansas Inc. and its owner, J. Eric Turner, have in at least 59 instances failed to deliver a title at the time of sale, according to the complaint. Many times, Carco was not itself in possession of a vehicle’s title because it had not fully paid for the cars it acquired from other dealers, such as auto auctions, before placing the cars for sale on its own lot. McDaniel’s complaint also alleges that Carco did not pay off in a timely fashion the balances on tradeins it had taken from consumers, exposing the consumer trading the vehicle to liability and financial trouble, and preventing Carco from providing clear title to the next buyer. According to the complaint, Carco

did not fully pay for the cars it sold from its lot, so the dealers from which Carco purchased vehicles refused to turn over titles to Carco. When consumers bought the same cars from Carco, the dealership assured buyers that titles would be delivered shortly after sale. However, the defendants allegedly knew at the time they provided those assurances that they could not keep that promise. It has taken the defendants an average of five months from the date of sale to deliver titles to consumers, the lawsuit stated. Carco and Turner are accused of violating the Arkansas Deceptive Trade Practices Act and the Used Motor Vehicle Buyer Protection Act. The AG asked the court to issue an injunction prohibiting the defendants from continuing the deceptive business practice and to award civil penalties and restitution to consumers.

Media Company Buys Lead Provider Media company Webxu Inc. announced the acquisition of BarNone. Headquartered in Oakland, Calif., BarNone connects consumers, dealers and lenders via proprietary web

UCN_12.indd 1

properties, proprietary lead delivery technologies and a 24-hour call center located in the Midwest. The company earned particular brand notoriety with its BarNone sock puppet television commercials.

5/13/13 5:16 PM

May 20, 2013 ÝÛÛ~€


PEOPLE IN THE NEWS Attorney Group Elects Officers

Transporter Hires Director of Account Management

MetroGistics announced the hiring of Martha Garcia-Perry as director of account management. Garcia-Perry will be responsible for ensuring that MetroGistics’ customers consistently experience a high level of service, and for delivering on the company’s promise to make the entire vehicle shipping experience simple, easy and hasslefree. She will work with clients, the sales team and management to uncover business needs and objectives, craft appropriate strategies, and implement processes. Garcia-Perry brings more than 12 years of business management and logistics industry experience. After graduating from Wayne State University with a bachelor of arts degree in marketing logistics, she joined Insight Network Logistics of Auburn Hills, Mich., as a manager of vehicle shipments. Her career progression in the company led to the position of senior manager, regional operations, where she proactively managed the day-to-day distribution of Chrysler’s finished vehicle delivery network throughout the Southeast.

Lawyer Joins Firm

Hudson Cook LLP recently announced the addition of Jed Mayk

as a partner establishing the firm’s West Chester, Pa., office. His practice will focus on state and federal consumer finance regulatory compliance for banks and non-bank consumer credit providers, with a particular emphasis on mortgage lending and servicing. He also advises clients on credit reporting, debt collection, unfair trade practice, privacy and data security, and electronic commerce laws and regulations. Before joining Jed Hudson Cook, Mayk Mayk was a shareholder with the law firm of Stevens & Lee P.C. and served as a member of the firm’s corporate, finance and capital markets group. Previously, he was of counsel at Blank Rome,LLP and first vice president at MBNA America Bank N.A., where he provided legal counsel to the bank on its mortgage lending and other consumer finance operations. Mayk earned his law degree at Rutgers School of Law-Camden where he graduated with honors and was a notes and case notes Editor of the Rutgers Law Journal.

He attended St. Joseph’s University where he earned a B.A. in international relations, graduating summa cum laude. He is a member of the Pennsylvania and New Jersey state bars.

DealerTrack Adds to Board

Dealertrack Technologies announced that the number of active lenders connected to its Dealertrack Credit Application Network now exceeds 1,300 lenders. The firm also announced the election of Joe Payne to its board of directors. With his addition, the size of the company’s board of directors increases to nine members. Payne formerly served as CEO of Eloqua, leading it through a successful IPO on the NASDAQ. It was eventually sold to Oracle.

Manheim Expands in Canada

Manheim Canada has signed a partnership agreement with Source Auto Auction, a newly-created auction facility in Edmonton, Alberta. Source Auto Auction is owned by Danny Fayad, an experienced automotive industry professional and entrepreneur. This location - Manheim’s first venture into Western Canada - is planned to open in May. The Source Auto Auction management team will consist of Fayad and general manager Darcia Cuff.

© 2013 ADESA, INC.

The National Association of Dealer Counsel (NADC) Board of Directors elected officers at its 9th Annual Member Conference held at The Montage Resort in Laguna Beach, Calif. Oren Tasini of Haile, Shaw & Pfaffenberger, P.A. was elected president, replacing former President Patty Covington of Hudson Cook, LLP. Stephen Linzer of Tiffany & Bosco, P.A. and Diane Cafritz of CarMax were elected vice presidents. Andrew Weill of Benjamin, Weill & Mazer was elected treasurer and Tom Hudson of Hudson Cook LLP was elected secretary. The officers will serve twoyear terms. The NADC membership elected Tammi McCoy of the Colorado Automobile Dealers Association to her second consecutive term at the 9th Annual Member Conference. The membership also elected three directors to their first term. Michael Dommermuth, Fairfield and Woods PC; Russell McRory, Robinson Brog Leinwand Greene Genovese & Gluck P.C.; and J. Timothy Sparks, Sonic Automotive Inc. were all elected to their first term serving the NADC Board of Directors. The directors will each serve a three-year term.

UCN_13.indd 1

5/13/13 4:39 PM

~ÛÝÛÛMay 20, 2013



Gus Kurtz, president, Sports and Imports Inc., Pasadena, Md.: “We’ve been in business 21 years. We have two locations, about eight to 10 miles apart. “In total, I carry about 150 vehicles. ‘But we bumped our inventory up about 20 percent from this time last year. We used to carry about 120 to 125. That was prompted by demand. “I get some vehicles through trades. I also buy at local auctions, which are Manheim BaltimoreWashington and Bel Air Auto Auction. “We’re selling between 70 and 75 percent a month. Business is up about 20 percent. One reason is that our sales staff is working much smarter than (in the past). We’ve also adjusted our inventory mix more accurately to reflect our sales. Our turn is much greater. “About 95 percent of our business is retail. We don’t do any subprime. We might do one or two buy-here, payhere deals a month. Those

UCN_14.indd 1

are for local customers we want to help out. “Our retail price is probably around $13,000 to $14,000. That’s increased from this time last year by about 30 percent because of our change in inventory. “We’re predominantly specializing in trucks and the prices on trucks are outrageous. Our inventory is about 60 percent trucks, 25 to 30 percent SUVs and 10 percent cars. “Our car mix used to be 40 percent, but they weren’t moving. “The average model years are from 2005 to 2008. Our average mileage is 75,000 to 110,000 miles. “Our average mileage has increased about 10,000 miles from last year. We used to try not to go much over 100,000. But we’ve had to go, especially in the truck category, up to 110,000 to 115,000 miles. “In the truck line, it’s 60 percent domestic and 40 percent import. “(Reconditioning costs) are probably $500 and $700 a car. It used to be $300 to $350. Everything is higher

Compiled by Jeffrey Bellant (in cost). “We sublet out our state inspection work, which is required for every car. Our detailing we do in-house. We sub out about 80 percent of (recon) work. ‘We’ll do print, media (radio/television) and Internet. “One recent vehicle we sold was a 2005 Toyota Scion tC. It had 104,000 miles and sold for $7,500.”


Mike Lessne, president, Alpine Motors, Wantagh, N.Y.: “We’ve been in business 19 years. We have one location. “On average, we stock just over 100 units. “In the last three years, we’ve had a large expansion (of our inventory). Three years ago, we were carrying about 55 (units) on average. “We network through local new-car dealers to get new-car trades. We also buy off the street, purchasing cars directly from the public and, obviously, from auctions. “So we’re actually buying a little bit more from the auctions as new-car stores

seem to be keeping a lot more of their trades than they used to. “We’ve tried to step up in purchasing more off the street. We actually created a Web site two years ago for this. It’s called ‘’ “We average between 25 and 40 (vehicles sold) per month. That’s about the same as this time last year. “We’re strictly retail. “Our average model year is probably a 2007. The average mileage is between 40,000 and 50,000 miles. “We will buy late-model lease returns with (low miles). For example, we recently sold a 2011 GMC Sierra with 1,900 miles. “We really handpick our vehicles. We key in on Carfax certified cars and low miles. But every day, it gets tougher and tougher to find (lower-mileage cars). “The inventory is about 60 percent cars and 40 percent trucks. Being in the Northeast, we’re a seasonal business. So this time of the year, we’re thinning out the trucks. Focusing more on sports cars and the luxury

convertible market. “Most of our inventory is European, with some domestics, but very few Asian (vehicles). “Our average retail price is about $18,000. “Our average reconditioning costs are between $500 and $1,000. “We put each car through a 100-point-certification mechanically. If our brake pads aren’t at least 50 percent, they’re changed. If the tire (treads) aren’t at least 50 percent, they’re changed. Everything is checked, right down to fresh wiper blades. “We send out the (vehicles) for tires and brakes. All of the other work is done in-house. We service those vehicles through an offsite facility. “We’re a black-and-white store, not a smoke-and-mirrors store. The dealership has been voted “Best on Long Island,” in the usedcar dealership category, by the Long Island Press for five years in a row. “We also won the 2012 New York Quality Dealer award.”

5/13/13 4:10 PM

May 20, 2013ÛÛÝÛÛ~‚



Richard Galway, general manager, Ocala Auto Dealers Exchange Inc., Ocala, Fla.: “As a company, we’ve been in business (more than 20) years. We have three auctions: Ocala Auto Dealers Exchange, Sanford Auto Dealers Exchange and Cocoa Auto Dealers Exchange. “We have four lanes and we’re running three lanes at the moment. “On average, we’re running 400 cars. I can’t compare it to this time last year because we didn’t own the auction at the time. We’ve only owned it since last July. “But we’ve increased business here quite a bit since we bought it. “We’re running between 40 and 50 percent (sold). “I suppose we’re registering somewhere between 180 and 220 dealers. It fluctuates. “Dealers are coming from the Greater Orlando area and the Crystal River, Fla., area. We’re also (drawing) dealers from Georgia. There are quite a few coming down from Valdosta, Ga.

UCN_15.indd 1

There are also a lot of dealers coming from the Panhandle and Gainesville, Fla. “Of course, we also get a lot of local dealers. In general, we’re drawing dealers from a 100-mile radius. “I think the dealers like how things (are going) at the auction. They like to see the changes. Ten years ago, this place used to rock and roll. So they like to see the (changes). “There’s definitely an excitement that hasn’t been here in a while. The business itself is very competitive. “But, like I’ve said, we’re getting good feedback from the dealers. “People like what we’re doing, so we’re trying to grow. I have the resources to run 600 to 700 cars. “But I don’t want to do that since it will make the percentages drop. I want to grow it steadily. “We’re mostly dealer consignment. We do have a little fleet-lease, but that’s still a work in progress at this point. “We also looking for support from our local deal-

Compiled by Jeffrey Bellant ers and working within the community. For example, we’re employing more people now. “We’re not really holding special salvage sales. If we have in-ops, we’ll push them through the lanes as part of our overall dealer consignment. “We’re an evening sale, kicking off at 5 p.m. every Wednesday. “The evening sales tend to be more for the newcar dealer franchises to sell their vehicles to usedcar independents. “Typically, the new-car dealers don’t come here to buy, they come here to sell. The day sales tend to be where the big national companies sell to the newcar dealers. “I’ve sold vehicles from $500 to $35,000. But I would say the bulk of our cars are selling in the $3,000 to $7,000 range. “We’ve got a big demand for trucks here. That’s not necessarily about the economy (or people buying work trucks). “It’s just more of a truck kind of place.”


Mark Wescott, general manager, Port City Auto Auction, Richmond, Maine: “Things are going (well). “We’ve been here for 25 years, since 1988. “Port City has six lanes. We’re running four. “Volumes are about 350 to 375. That’s about the same as this time last year. “For the last month or so (April and early May), the percentages have been great. They’ve been in the high-60s, to 68 or 70 percent. “I think the market held up a little better than last year as far as the tax season. That held on a little longer, but I think that had to do with the feds being late to roll out the tax (plan). “It also seems there’s just a shortage of used cars and guys need the cars. “We average 230 to 250 dealers in the lanes. “Dealers are coming from all over Maine and Northern New England, basically. We’re drawing new dealers that haven’t been here. We’re seeing dealers travel

a little farther. For example, we’re seeing some dealers from Massachusetts and southern New Hampshire, so they’re traveling a bit to get here. “The moods of the dealers (change) depending on the week. They are cautiously optimistic. “Most of our volume is dealer consignment. On the fleet-lease side, it’s mostly repossessions. Those (volumes) have changed. Those numbers are down. That’s because of the repos. “We’re hoping to get some more fleet-lease units (that the industry expects to come in through the end of the year). “I don’t know the average price coming through the lanes. I think it’s in the $4,000 to $4,400 range. That’s about the same as this time last year. “We do hold some powersports sales. We’ll have those once a month. We’ll see a lot of campers and boats this time of year. We’ll run a handful of those. “I think 2013 will be a little better than last year, but not by leaps and bounds.”

5/13/13 4:12 PM


% Change ‘12-’13

TMV does not include options

March 2012

Compact Car $1,145





1 2 3 4

$13,639 $11,650 $10,859 $8,583

$14,984 $12,542 $11,828 $9,458

9.86% 7.66% 8.92% 10.19%

1 2 3 4

$20,314 $16,325 $14,573 $11,866







TMV does not include options


TCI 1 2 3 4 5

March 2012

Subcompact Car $446 $768 $12,518 $10,249 $10,179 $8,054 $6,311

$13,721 $10,935 $9,606 $8,084 $6,772



$16,695 $14,582 $14,076 $11,912

1 2 3 4




0.22% 2.40% 5.30% 13.04% 2.30%


TCI 1 2 3 4 5

TCI 1 2 3 4 5


$19,150 $16,220 $13,163 $10,879

-2.93% 3.08% 10.26% 8.54%

Entry Sport Car $1,694 $1,883


$24,873 $22,316 $16,232 $14,674

$22,133 $21,971 $19,902 $15,432

-11.02% -1.55% 22.61% 5.17%


Midrange Sport Car $2,693 $2,343









$17,314 $16,040 $12,520 $10,727

$17,695 $11,339 $14,147 $11,097

2.20% -29.31% 13.00% 3.45%

1 2 3 4

$45,168 $34,186 $30,533 $24,728

$43,730 $38,779 $29,599 $25,557





Compact Crossover SUV $1,655 $1,621 $17,979 $16,012 $13,959 $11,887

$19,982 $16,319 $15,178 $12,250



Midsize Crossover SUV $1,908 $2,256 $22,864 $19,018 $16,334 $14,603

$21,392 $20,538 $18,201 $14,776






11.14% 1.92% 8.73% 3.05% 0.08%

1 2 3 4 5



-3.18% 13.44% -3.06% 3.35% -4.77%

Premium Sport Car $4,821 $2,452


$88,943 $62,666 $55,612 $40,140

$75,606 $81,328 $51,894 $45,256

-14.99% 29.78% -6.69% 12.75%

Entry Luxury Car $3,107 $3,611







-6.44% 7.99% 11.43% 1.18% 12.90%

1 2 3 4

$29,097 $23,026 $20,862 $19,089

$28,709 $23,741 $22,253 $18,693




-1.33% 3.11% 6.67% -2.07% 1.96%

Entry Luxury SUV $1,850 $1,905




$26,598 $20,774 $17,219 $15,654

-3.00% 12.74% 14.37% 0.38%

1 2 3 4

$33,167 $27,904 $23,932 $19,897

$32,919 $27,911 $24,575 $20,248




-0.75% 0.03% 2.69% 1.76% -0.99%

Midrange Luxury Car $3,421 $4,420



$25,800 $23,420 $19,694 $15,714 $13,535

Large Crossover SUV $3,044 $3,856 $26,809 $21,403 $19,159 $16,105




Large Traditional SUV $2,873 $3,392

1 2 3 4

$34,378 $28,931 $22,940 $19,237

$34,434 $29,459 $26,850 $21,120




Compact Truck $2,145 $1,148

1 2 3 4

$19,878 $17,084 $14,596 $12,386

$20,783 $15,588 $13,934 $13,451







-1.57% -2.53% 6.60% -1.76% 25.86%

1 2 3 4

$37,326 $32,690 $25,640 $22,486

$42,362 $34,240 $28,219 $21,918





0.16% 1.83% 17.04% 9.79% 0.25%

1 2 3 4 5


13.49% 4.74% 10.06% -2.53% 5.59%

Midrange Luxury SUV $1,552 $1,780


$46,014 $38,541 $34,902 $29,166

$46,421 $39,187 $33,401 $28,464

0.88% 1.68% -4.30% -2.41%

Premium Luxury Car $4,572 $5,273







4.55% -8.76% -4.54% 8.60% 1.53%

1 2 3 4

$72,646 $57,723 $45,460 $34,961

$66,032 $57,736 $45,678 $35,885




-9.10% 0.02% 0.48% 2.64% -4.14%

Premium Luxury SUV $2,579 $2,416


Large Truck $3,946




1 2 3 4

$25,982 $22,396 $18,733 $17,687

$28,659 $24,338 $20,692 $17,198

1 2 3 4

$56,154 $44,345 $41,473 $30,837

$52,346 $49,655 $38,360 $34,807




10.30% 8.67% 10.46% -2.76% 13.39%






Midsize Traditional SUV $1,345 $1,826

$27,236 $21,959 $17,972 $16,394




Large Car $4,146

1 2 3 4



$19,729 $15,736 $11,938 $10,023

$16,658 $14,240 $13,367 $10,538

1 2 3 4


0.76% 15.43% 11.05% 0.43% 8.70%

1 2 3 4

1 2 3 4


$20,468 $18,844 $16,183 $11,917

9.61% 6.69% -5.63% 0.37%






1 2 3 4






% Change ‘12-’13


Midsize Car $2,217


March 2013

-6.78% 11.97% -7.51% 12.87% -3.64%’s monthly True Cost of Incentives (TCI) report takes into account all of the manufacturers’ various United States incentives programs, including subvented interest rates and lease programs as well as cash rebates to consumers and dealers. To ensure the greatest possible accuracy, bases its calculations on sales volume, including the mix of vehicle makes and models for each month, as well as on the proportion of vehicles for which each type of incentive was used. TCI data (and other data products) can be viewed industrywide, import vs. domestic, by country of origin, by make, by model and by segment. True Market Value (TMV) is the transaction price for vehicles.

UCN_16.indd 1

5/10/13 4:48 PM

May 20, 2013 �ÛÛ~„



Avg. Mileage

Compact Car Jan 2013 Feb 2013 Mar 2013 Apr 2013 YTD AVG:

$6,191 $6,173 $6,567 $6,511 $6,363

108,801 109,464 107,751 108,058 108,509

Fullsize Car Jan 2013 Feb 2013 Mar 2013 Apr 2013 YTD AVG:

$6,191 $6,173 $6,567 $6,511 $6,363

108,801 109,464 107,751 108,058 108,509

Luxury Car Jan 2013 Feb 2013 Mar 2013 Apr 2013 YTD AVG:


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North Americas #1 Seller Because it WORKS! $6,191 $6,173 $6,567 $6,511 $6,363

108,801 109,464 107,751 108,058 108,509

Midsize Car Jan 2013 Feb 2013 Mar 2013 Apr 2013 YTD AVG:

$6,191 $6,173 $6,567 $6,511 $6,363

108,801 109,464 107,751 108,058 108,509

Pickup Jan 2013 Feb 2013 Mar 2013 Apr 2013 YTD AVG:

$6,191 $6,173 $6,567 $6,511 $6,363

108,801 109,464 107,751 108,058 108,509

Sports Car Jan 2013 Feb 2013 Mar 2013 Apr 2013 YTD AVG:

$6,191 $6,173 $6,567 $6,511 $6,363

108,801 109,464 107,751 108,058 108,509

SUV Jan 2013 Feb 2013 Mar 2013 Apr 2013 YTD AVG:

$6,191 $6,173 $6,567 $6,511 $6,363

108,801 109,464 107,751 108,058 108,509

Van Jan 2013 Feb 2013 Mar 2013 Apr 2013 YTD AVG:

$5,975 $6,055 $6,454 $6,493 $6,247

116,164 117,188 116,455 116,354 116,536


UCN_17.indd 1

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8&##3%8*--*".450/ 4$ ]'"9

THREE AMIGOS: DAA Northwest President Bob McConkey (center), is flanked by Rutledge Wood (left), host of Speed and Top Gear, along with NASCAR driver Clint Bowyer.



Dealers attending DAA Northwestâ&#x20AC;&#x2122;s NASCAR Days promotion April 10 and 11 got to meet two celebrities connected to the world of racing: NASCAR driver Clint Bowyer along with Rutledge Wood, host of Speed and Top Gear. Bowyer entertained DAAâ&#x20AC;&#x2122;s guests during a private reception following the auctionâ&#x20AC;&#x2122;s Wednesday afternoon sale. â&#x20AC;&#x153;Clint and Rutledge are two very funny guys,â&#x20AC;? said Bob McConkey of DAA Northwest. â&#x20AC;&#x153;Having them here with us made NASCAR Days 2013 truly unique and a blast.â&#x20AC;? DAA hosts its NASCAR Days promotion in conjunction with sister auctions KCI Kansas City and EPI El Paso. Each location sent two winners to the STP 400 at the Kansas Motor Speedway April 21. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a once-in-a-lifetime trip,â&#x20AC;? says DAAâ&#x20AC;&#x2122;s Leonard Roll, who acts as a guide for the winners at the track. â&#x20AC;&#x153;Our dealers receive HOT Passes, giving them total access to garages, pit boxes, an in-field RV with an observation deck, and more. They literally rub elbows with drivers and pit crews throughout the weekend.â&#x20AC;?

ADESA Canada Gets Makeover and announced the launch of a new website, integrating the two systems into one. The new website â&#x20AC;&#x201C; next.ADESA. ca â&#x20AC;&#x201C; was built on the technology of Openlane, which ADESA acquired in late 2011. This new site will replace the post-login pages of After dealers log in to Openlane. ca, they will now find a new user experience - - and will buy and sell cars on this new platform. â&#x20AC;&#x153;This is the next step as we continue to move the ADESA Canada marketplace to Openlane technology,â&#x20AC;?

UCN_18.indd 1

said Stephane St.Hilaire, president of ADESA Canada. â&#x20AC;&#x153;The ADESA and Openlane teams have been working closely together as we develop additional remarketing opportunities for our customers. I would like to thank them for their hard work and dedication to deliver this enhanced online platform.â&#x20AC;? We invite news items and top-quality photos from our readers to be considered for â&#x20AC;&#x153;Around the Block.â&#x20AC;? 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:

5/13/13 1:49 PM

May 20, 2013 Ă?Ă&#x203A;Ă&#x203A;~Â&#x2020;


Disconnected Jottings From Tony Moorby... â&#x20AC;&#x153;Buy-here, pay-here dealers are as crooked as a cockroachâ&#x20AC;&#x2122;s back leg!â&#x20AC;? How often have you heard a derogatory statement that parallels that or sounds something like it? Of course, itâ&#x20AC;&#x2122;s not true â&#x20AC;&#x201C; only those who

venture, the dealer stepped in to fill the gap. Nature abhors a vacuum and economics are just the same. An unfulfilled need doesnâ&#x20AC;&#x2122;t stay that way for long. Those dealers willing to take on enormous risk to

Tony Moorby

Ć&#x20AC;É&#x; Ĺ´Ĺ°Ć?3,É&#x;0.,(É&#x;) É&#x;."É&#x;#(/-.,3 Ć&#x20AC;É&#x; ,-#(.É&#x; ,)'É&#x;ŹŚŚšĆ&#x2018;ŲŰŰŰÉ&#x;) É&#x;É&#x;É&#x; É&#x; /.)').#0 Ć&#x20AC;É&#x; ,0É&#x;-É&#x;Ć&#x2030;-É&#x;2/.#0É&#x;0#É&#x;É&#x; É&#x; *,-#(.É&#x;) É&#x;-&-É&#x;(É&#x;',%.#(! Ć&#x20AC;É&#x; )),3É&#x;Ć É&#x;--)#.-É&#x;ŲŰŰŜĆ&#x2018;*,-(. Ć&#x20AC;É&#x; 1,É&#x;."É&#x;#(!É&#x;) É&#x;)(),É&#x;3É&#x;É&#x; É&#x;   Ć&#x20AC;É&#x; É&#x;&&É&#x;) É&#x;',

are ignorant of the necessity for these valuable dealersâ&#x20AC;&#x2122; existence would cast them in this lowly light. The genesis for the subprime financing market for automobiles probably goes as far back as the â&#x20AC;&#x2DC;70s during the savings and loan crisis. Now, as then, unemployment was high, the economy was struggling to become a service-oriented environment from an industrial and productionbased one. Credit was as common as hensâ&#x20AC;&#x2122; teeth. So where banks wouldnâ&#x20AC;&#x2122;t

keep car sales going had to put up hard cash for extended periods of time and the early days provided a â&#x20AC;&#x2DC;hand-tomouthâ&#x20AC;&#x2122;, day-by-day need to oversee that their investment was going to make it back into their pockets. Sure, it was a hard-nosed business, dealing with customers who didnâ&#x20AC;&#x2122;t look after older cars, ran them till they stopped and then ceased paying for something that wouldnâ&#x20AC;&#x2122;t work. â&#x20AC;&#x153;Snatchbacksâ&#x20AC;? became part of the daily routine and everyoneâ&#x20AC;&#x2122;s reputation

suffered as a result. Before consumerism came into our lexicon, thieves, vagabonds and neâ&#x20AC;&#x2122;er-dowells got in on the act for a quick buck â&#x20AC;&#x201C; upstarts who neither knew anything of nor cared anything less for customer service or even the real car business itself. Departments of Motor Vehicles were overrun with complaints about poor product and excruciatingly high interest rates. So naturally states decided that they should insinuate some authority over this business that was now seen as shady. These days are vastly different and command nothing but the sharpest (in the nicest possible way) minds to oversee one of the most complicated business formats you could possibly think of and provide top quality cars for reasonable prices and at rates which sometimes do not reflect the risk at hand. State and national government oversight exists at every level from inventory acquisition, advertising, accounting, banking, record keeping â&#x20AC;&#x201C; blah, blah ad nauseam! If everyone could meet


Mickey Dorsey of Friendly Auto Sales, a buy-here, pay-here dealer in the Chattanooga market area, they would be convinced that the epitome of customer goodwill and service are the watchwords of his thriving business. It thrives because heâ&#x20AC;&#x2122;s good. Good at all the disciplines that this business can and does throw at you. This market has been quixotic enough this year â&#x20AC;&#x201C; cast planning out the window for all the good itâ&#x20AC;&#x2122;s done â&#x20AC;&#x201C; and heâ&#x20AC;&#x2122;s still meeting and greeting customers whoâ&#x20AC;&#x2122;ve now started coming back for the third or fourth time. Some are now creditworthy enough to dictate better deals at new car stores but opt to do business with Mickey because of who he is and how he conducts his business.

He takes things seriously enough to join Tennesseeâ&#x20AC;&#x2122;s Independent Automobile Dealer Association and became its president a couple of years ago. He started out as a salesman for a local new-car store and holds all the tenets that make a sales guy successful â&#x20AC;&#x201C; things he now teaches his own sales people. Even those responsible for the inevitable collections are polite, diplomatic and helpful. He ensures his staff is on top of all regulations and tax requirements. He says that profit can only be measured by oneâ&#x20AC;&#x2122;s ability to collect it. He constantly seeks ways to improve everything about his business and ultimately a well-deserved profit. And heâ&#x20AC;&#x2122;s as polished as a cockroachâ&#x20AC;&#x2122;s shiny shell.

To see past columns from Tony Moorby, visit columnists/tony-moorby


By Miles Mellor









Down 1. 2. 3. 4. 5. 6.

Across 1. Nissan SUV 4. Malaysian ____ Kenari 8. Fix, in a way 9. Convertible sports car 10. Esperante makers 11. Licenses, for example 13. Opposite of a ques. 14. â&#x20AC;&#x153;___ got it!â&#x20AC;? 15. Cooling system (2 words) 19. Letters on some cars in the lot 21. _____ Verano

23. Girls youth org. (abbr.) 24. Used car home 26. Dad 27. Hummer, for example (2 words) 28. Unwanted substance in gas 30. It was built by GM for Isuzu 33. Dodgeâ&#x20AC;&#x2122;s compact SUV 36. Resume in short form 37. Easy to use (2 words) 40. Scion ___ 42. Was first to market 43. Toyota compact 44. Some station ____

CX-9 maker Kia sedan Thin Type of suit Concept of self Pass it to get a license (2 words) 7. Type of braking system 8. Indian princess 10. Cushion 12. Man cave 14. Cool 16. Ghost or Phantom 17. Fine interior wood 18. Thousand bucks 19. It seals the deal 20. Boxer, for one 21. Dot ___ 22. Beetle, e.g. 25. Revolution 29. Clear 31. Silverado, for one



10 13






20 24


21 25






28 29







36 37





42 43


Answers to the 5/6/13 puzzle

32. Ways off a freeway 34. Type of league 35. Loan percentages 38. Supporting 39. Opposite of used 41. Thereâ&#x20AC;&#x2122;s a player for it 42. Lane for short






Answers to this puzzle in the 6/3/13 issue. Call 1.800.794.0760 for a FREE subscription.

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5/13/13 4:15 PM





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


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July 15 - Quality Dealer Deadline Wed., July 3

August 5 - Finance/Warranty Advertorial Deadline Wed., July 24

August 19 - Best of Auctions Deadline Wed., August 7

September 2 - NAAA Convention Deadline Wed., August 21

September 2 - Dealer’s Guide to Top Auctions Deadline Wed., August 14

September 16 - Training & Education Deadline Wed., September 4

October 7 - How I Did it: Success Stories Deadline Wed., September 25

October 21 - Factory Focus Deadline Wed., October 9

November 4 - Buy-Here Pay-Here Advertorial Deadline Wed., October 23

November 18 - Giving Back Deadline Wed., November 6

December 2 - Collections Deadline Wed., November 20

December 16 - Year in Review Deadline Wed., December 4

TO ADVERTISE PLEASE CALL 1-800-794-0760 EXT. 107

5/13/13 12:17 PM

May 20, 2013Ă&#x203A;Ă&#x203A;Ă?Ă&#x203A;Ă&#x203A;~



Automotive Finance Corporation .............. 26

Northland ............................................. 22 & 32

United Road .................................................. 28

AutoRaptor ............................................21 & 24

Experian/AutoCheck .......................... 22 & 35

Small Dealers Assistance ......................... 30

Finance Express ...................................31 & 34

Spireon ................................................. 27 & 32

Gordon Howard/Passtime ................. 29 & 33

United Auto Credit .............................. 26 & 30

iMetrik Solutions ................................ 24 & 25

Vehicle Acceptance Corporation ..... 24 & 30

NextGear Capital ................................. 23 & 34

WhannTech ................................................... 31









ÛÝÛÛMay 20, 2013


Lease’T’Own® Offers Tax Advantages



OF YOUR BUSINESS Partner with Experian Automotive and know the value of a fresh perspective. We bring together data assets from a wealth of resources to allow our clients to fully understand the market, the vehicles and the people who buy them. Only Experian Automotive has access to these combined assets and integrates them to give you a unique perspective of your business so you can gain a competitive edge, drive growth and increase profitability.

Visit or call 1 888 754 4408 today.

© 2013 Experian Information Solutions, Inc. All rights reserved.

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Whether you’re already handling used car leasing at your dealership or just thinking about starting, we want to remind you about the incredible tax advantages that come with Northland’s Lease’T’Own® program! Northland’s Lease’T’Own® program follows the basic premise of buy-here, pay-here. The sub-prime customer base is the target market, customers make weekly or monthly payments and collections are a big piece of the program. Where Lease’T’Own® differs greatly is

deducting the same operating expense, same tax rates, same down payment. On average, it was realistic for dealers to sell or lease 10 cars per month for 12 months. We used the time frame of January through December and national averages provided through NCM Associates for the cost of vehicles, weekly payments, and average contract length. The results were undeniably in favor of Lease’T’Own®! The net profit difference is primarily due to Lease’T’Own®’s tax advantages.

in the title and registration of the vehicle. The dealership retains ownership of the vehicle and the customer pays for use of the car with the option to return or buy it at any time. This provides strong leverage against delinquent payments, bankruptcies, and repossessions. Lease’T’Own® is a similar business model to buy-here, pay-here, but with added security! We recently compared buy-here, pay-here with Lease’T’Own® – apples to apples. We used the same number of cars, bringing in the same income,

With buy-here, pay-here you pay taxes on the entire contract at the end of the first year. With Lease’T’Own® you are paying federal and state income taxes only on the payments received. On average, you should be seeing more than 60% additional net profit than buy-here, pay-here. Too good to be true? Let us prove it to you with a personalized profit analysis using your federal and state income tax rates. Give us a call at 800-879-333 or submit a request via email at sales@



*CSJOH my office to you. .BSL8ZENBO

Account Executive, NextGear Capital, Southern Ohio


See Markâ&#x20AC;&#x2122;s story at


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Inventory Finance Solutions. Simplified.


4/8/13 10:56 AM

5/10/13 4:58 PM

ÛÝÛÛMay 20, 2013


CRM Helps You Win More Deals

By Howard Leavitt, AutoRaptor CRM

The need to work smarter drives many successful dealers to look for better solutions to problems in their dealership. When it comes to getting the most out of every lead, a Customer Relationship Management (CRM) application is crucial. When I was a dealer there were never enough hours in the day to effectively coach my sales staff. Formal one-onone review meetings were a productive way to handle lead processing. What I needed was an application that quickly and easily reviewed all digital up sheets to coach my staff to look for business and see the path to winning each deal. With running the dealership – wholesaling, auctions, ordering new cars, administraton, service issues, and more – I had to develop a system that could help me look at all deals in the works, as well as keeping my sales staff accountable. There had to be a better system to speed up the one-on-ones and increase our closing percentage with less time to manage. These needs are still hot-button issues for many dealers today. Out of these common problems I was able to develop a solution, AutoRaptor CRM. The Benefits of AutoRaptor CRM An easy-to use application manages leads and keeps your sales team on track with daily work plans and follow-

up tasks. It manages data so you can respond quickly to new leads, and have automated action plans for aggressive follow-up with a personal touch. Mobile capabilities let you respond to incoming leads on any web-enabled device, or assign leads in seconds. Customized work plans, individual dashboards, lead source reporting, and scheduling get you closer to winning the deal. Overcoming the Obstacles of Change A CRM application that helps build relationships and manage your sales process is the most effective way to close more deals. We all know that change can be tricky. I would hear “why change the process when business is good?” Successful dealers have to be willing to make choices to ensure that positive changes will occur. Convincing your staff to change the way they work is often a challenge. Your staff will embrace new technology and changes once they see the benefits. When you make their jobs easier they will recognize the value of CRM technology and embrace it. AutoRaptor CRM lets you win more deals. Getting the most out of every prospect is the best way to boost profits. Add value to your sales process and see how business can grow! AutoRaptor CRM can help you sell more cars. For a free business analysis or demo, visit or call us at (888) 421-6533.

iMETRIK Offers GPS With No Fees iMETRIK Automotive offers a solution unique in the industry; a GPS device which carries no monthly or annual renewal fees. iMETRIK can offer this service because we are more than a device manufacturer; we are an M2M Mobile Network Operator (M2MNO). An M2MNO provides wireless service but does not have the entire infrastructure (frequency allocation, towers, etc.) required to provide voice or video service. The model is designed to overcome the global wireless network requirement necessary to permit industrial users and customers one inventory operating seamlessly anywhere in the world. iMETRIK has made investments in telecommunication equipment and other assets, allowing us to manage the communications required to operate devices on our own network. This network allows iMETRIK

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to provide coverage specifically tailored to the buy-here, payhere and finance markets while proactively managing ongoing communication costs. This is the iMETRIK difference.

cost of ownership. Low initial costs on a GPS device can seem like an attractive opportunity, yet one must not forget that every year, or on a regular period, you will be solicited for renewal fees. You must

individual vehicle and contract in question to determine whether or not renewal is required or desired. “Managing the list of activation fees, keeping it updated, and validating its relevance with operations is a counterproductive activity that generates significant hidden cost,” says Daniel Lemieux, INSERT TITLE of iMETRIK. Over time this build up of fees and associated workload becomes very problematic, especially for customers managing large fleets. iMETRIK’s unparalleled approach ensures coverage tailored for the needs of the automotive “Managing the list of activation fees, keeping finance space and minimizes it updated, and validating its relevance with ongoing hassles and costs. The units are fully transferrable operations is a counterproductive activity and can be easily re-used over and over again without having that generates significant hidden cost.” to pay additional fees. Daniel Lemieux? iMETRIK removes the hassles and expenses related to utilizing It is important when selecting a also consider the effort involved in devices, providing only value and GPS provider to consider the total looking at the disposition of each peace of mind.

5/10/13 4:59 PM

Your Ace In The Hole

GPS Tracking Increase Payments Control Your Risk Sell More Cars

Come see us at the

booth # 223


Donâ&#x20AC;&#x2122;t gamble with your assets

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5/10/13 4:59 PM

ƒÛÝÛÛMay 20, 2013


Global Resources, Local Focus

In 1992, Robert Bassam signed up with Automotive Finance Corporation (“AFC”) as a single location dealer selling several cars each month. Today, he owns and operates a multilocation enterprise selling thousands of cars each year. How did he become so successful? By leveraging AFC’s inventory finance solutions and their unique combination of technology and fundamental business relationships. Bassam says “AFC makes it easy to stay a step ahead. Their updated website and mobile app helps me manage my inventory faster than ever, flooring my cars on the go and never having to stand in line. “For trades or wholesale, my branch is only a mile away and is always available. I truly cannot ask for a better partner.” Since coming on board with AFC, Robert has floored more than 60,000 vehicles. Successful independent dealers know in order to remain competitive in an ever changing industry and economy; the relationships you develop are just as important as the tools at your disposal. Having been in the inventory finance industry for over a quarter century, AFC has mastered the balance of embracing modern technology without forgetting the value of local service. With over 100 offices located across North America, AFC understands their customers’ local markets and needs – they serve their customers right in their own backyards.

Business is built by people, for people. AFC’s willingness to adopt modern technologies puts them in line with other lenders, but it’s the local branches, and the personal relationships and trust developed there that puts them several steps ahead. Julie DesRosiers, Co-Owner of SeaPort Auto Wholesale, Inc. is no stranger to the AFC difference. “In the ever-changing auto industry, AFC has made it easier for us to keep up with changing markets. We are able to go to any auction we choose, in or out of state, and know that AFC will meet our flooring needs. allows me to view titles, pay curtailments, and make payoffs whether I am in the office, or out of town. We have the luxury of a local AFC branch with experienced employees willing to go above and beyond to meet our needs!” It’s not just car dealers who benefit from AFC’s unique service. From RVs to salvage, boats and motorcycles, ATVs to campers and even rental programs, AFC has an inventory finance solution. No matter what your inventory financing needs, you’ll find a competitive program at AFC. Whether it’s in person, online or on the go, AFC offers their customers the flexibility to do business the way they want. For more information about AFC and their products and services, visit them online at or phone 888-335-6675.

Driven to Make a Differencesm Looking back 20 years, the sub-prime automotive finance market has seen tremendous change – mostly in the form of lenders closing their doors in the face of economic downturn. Several sub-prime lenders survived the economic perils of recent years but none has emerged stronger than United Auto Credit.

A leading force in the sub-prime market, United Auto Credit balances growth with its common sense approach to lending, ensuring longterm delivery of value to over 4,000 dealers in 45 states and counting. At the same time, the company continues to embrace every technological advantage available to ensure the fastest and most efficient delivery of services possible for its dealers. According to President and CEO Jim Vagim, “We are a very tech-heavy shop with a strong commitment to the human side of our decision making.” Not many lenders – prime or subprime – offer dealers the opportunity to call their buyer and re-hash a

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deal these days. With four buying centers spread geographically across the country, United Auto Credit welcomes calls from its dealers – coast to coast. Dealers don’t have to wait just because their local office is closed, or their buyer has gone home for the day. Every United Auto Credit buyer is trained to handle the dealers’ needs – whether or not it is their own dealer calling in. Financing $7,000 to $15,000 loans on four to seven year old vehicles for customers with FICO scores from the low 500’s to the low 600’s is the core of United Auto Credit’s business. However, the company has developed programs to finance up to $20,000 for qualified buyers. “We work very hard to understand the needs of our dealers and are constantly reviewing the programs and products we offer to meet those needs and deliver value”, said Vice President of Sales and Marketing Jourdan St. Germaine. Make no mistake – United Auto Credit’s plan for long-term growth is based on providing value through the development of industry leading programs and products, providing best-in-class service for its dealers. The company’s motto is “Driven to Make a Differencesm.” They’re doing just that, and dealers are taking notice.

5/13/13 4:52 PM

“ GoldStar GPS has the winning playbook that gives dealers the competitive edge.” Coach Joe Gibbs – 3 Time Super Bowl Champion – 3 Time Sprint Cup Champion

Meet Coach Joe Gibbs NABD Booth #411


WINNING STRATEGIES FOR BHPH Take it from Coach Gibbs, having the right Playbook is essential in gaining the competitive edge. With over 1.5 million active subscribers today, our GPS tracking solutions provide you with a patented automotive asset tracking & recovery process powered by the “Best M2M Business Intelligence Platform*” in the country. Drive your BHPH business with winning strategies from GoldStar GPS.

Find out more about our Automotive Solutions Playbook. Call: 1-866-655-8825 or Visit: GAIN THE EDGE NOW!

Scan this code with your Smartphone’s QR Code Reader app to see how GPS devices can protect your dealership.

©2013 Spireon, Inc. ©2013 Joe Gibbs Racing, Inc. All Rights Reserved. #18®”, and “M&M’STM/®” licensed under authority of Joe Gibbs Racing, Huntersville, NC. ®/TM/© Mars, Inc. 2013. Visit Toyota trademarks used with permission. * Awarded “The Best Business Intelligence Platform, “ 2013 Battle of the Platforms - M2M Evolution.

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5/10/13 5:01 PM

Â&#x2026;Ă&#x203A;Ă?Ă&#x203A;Ă&#x203A;May 20, 2013


in Buy-Here, Pay-Here? United Road: Driven to Deliver Interested Thereâ&#x20AC;&#x2122;s a Better Way - Credit Acceptance!

Used car dealers, auctions and remarketers rely on vehicle shipping services all the time â&#x20AC;&#x201C; we live in a digital world where much of our business is conducted online. When it comes to selecting a service provider, making the right choice can be the difference between vehicles arriving safely at the right time and place, or having to deal with an unfortunate shipping nightmare. Ask these three questions before settling on a vehicle transportation provider: What transportation assets does your company have? Assets are important â&#x20AC;&#x201C; both the quality and quantity. Quality vehicle carriers ultimately means that your vehicle will be safer on the road: fewer breakdowns, insured vehicles, and better reliability. As for quantity, more carriers results in better scheduling, availability, and shipping time. Who is responsible if something goes wrong? Lots of things can go wrong on the road; accidents happen. But if one should occur, your vehicle gets scratched, or your shipment is late to its final destination, who is responsible?

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Will you have to personally deal with repairs and take responsibility for unhappy clients? How many vehicles does your company ship annually? Â This number represents a companyâ&#x20AC;&#x2122;s customer patronage, satisfaction, quality, pricing and overall fairness. Thereâ&#x20AC;&#x2122;s a reason certain companies are favorites! These three questions to ask were brought to you by United Road, the premier auto transport company in North America. Each year, coast to coast and across the borders, United Road manages the transport of nearly 2 million cars. Our satisfied auto transport clients include all major global vehicle manufacturers, remarketers, financial institutions, car auctions, car dealers, retail single units and personally owned vehicles. United Road has the broadest reach in the industry, and the best customer service! All United Road clients are assigned a dedicated account representative who is available 24 hours a day, 7 days a week. Across the city or across the country, United Road is Driven to Deliver. For more information on United Road, visit our website at

Uncertainty still looms in todayâ&#x20AC;&#x2122;s economy with 46% of consumers struggling to establish credit or rehabilitate poor credit (Equifax, March 2012). Credit Acceptance, a proven leader in automotive financing since 1972, allows dealers to sell to consumers regardless of their credit history. It has all the benefits of buy-here, payhere, with none of the issues. Credit Acceptance eliminates the need for the large capital outlays necessary for buy-here, pay-here, providing a business model that maximizes ROI. 24/7 technology approves and processes deals. Dealers benefit from sales to consumers who otherwise could not obtain financing; from repeat and referral sales; and from responses to credit-challenged advertisements. â&#x20AC;&#x153;Without the Portfolio Profit from Credit Acceptance, we may not be here today. Business is now back on track and we just surpassed the $2 million mark in Portfolio Profit received from our Credit Acceptance contracts.â&#x20AC;?

- Lavon Schwartz, owner of KCâ&#x20AC;&#x2122;s Budget Auto, Kalamazoo, MI

Without Credit Acceptance, consumers are often unable to purchase a reliable vehicle.

An important benefit is an opportunity to improve credit scores through on-time payments, hopefully moving on to traditional sources of financing in the future. â&#x20AC;&#x153;Nobody would extend me any credit after my bankruptcy â&#x20AC;&#x201C; until I found a Credit Acceptance dealer. I never missed a payment and I was able to buy a new car and a house!â&#x20AC;? -Janet S., Credit Acceptance Consumer Credit Acceptance provides dealerpartners nationwide with: Ć&#x20AC;É&#x;/*,#'É&#x;ĹŚ((#(!É&#x;1#."É&#x;/(*,&leled funding for buy-here, pay-here consumers, giving dealers a cashpositive position and a share in total contract profits. Funding is straightforward and fast. Ć&#x20AC;É&#x;)'*,"(-#0É&#x; )&&.#)(É&#x; '(agement, managing all aspects of the collection process. Ć&#x20AC;É&#x;(É&#x;2#.É&#x;-.,.!3ĹťÉ&#x;*,)0##(!É&#x;&,Ć? partners with money from collections in retirement. Ć&#x20AC;É&#x; (,-É&#x; *,)ĹŚ.-É&#x; .",)/!"É&#x; ."É&#x; ability to market Guaranteed Credit Approval*, increasing floor traffic, sales, and profits. Visit (click on â&#x20AC;&#x2DC;Become a Dealerâ&#x20AC;&#x2122; under Dealers) or call 1-800-873-0512. *Some states prohibit the use of â&#x20AC;&#x153;Guaranteed Credit Approval.â&#x20AC;? Alternate marketing materials are available.

5/13/13 4:37 PM


Visit us at NABD, Booth



“ PassTime is the most effective way to ensure our customers make their car payments a priority every month.

Christine Hennick

Director of Finance CAG Acceptance, Mesa, AZ

CALL 1-800-828-1564

UCN_29.indd 1

5/10/13 5:02 PM

Â&#x20AC;Â&#x2021;Ă&#x203A;Ă?Ă&#x203A;Ă&#x203A;May 20, 2013


VAC Finds Their Niche Every business has its strengths and weaknesses. Some believe they are good at everything, but that is rarely the case. Often times, just knowing what you are good at makes the difference between average and great companies. During the past 24 years, Vehicle Acceptance Corporation has established relationships with most of the finance companies in the buy-here, pay-here industry. We are proud of our good working relationships with these companies. Some are better at certain product types and services than we are; likewise

we are better at some than they are. This is the result of the skill sets of the staff, the ownership and capital structure of the company â&#x20AC;&#x201C; and yes, their software capabilities. Companies that have the right staffing, software, capital and ownership structure tend to excel in their specific market niche. Our niche is providing cash today to the independent buy-here, pay-here dealership using the future payments from their customers as the source of repayment. Visit\UCN or call 888-573-4248 for cash today.

To Sell or Not to Sell...That is the Question We estimate that the profit for dealers who keep and service their accounts can be double or triple the profit of selling them. With bank deposit rates so low, returns on buy-here, pay-here notes are very attractive and an improving economy and declining default levels can make buy-here, pay-here paper a safer investment today. These reasons may lead investors to pay more for notes, but they are also the same reasons that you may want to keep your loans. Building a healthy loan portfolio diversifies your business and gives you greater longterm value, so ask yourself: s $O)HAVETHESTAFFANDSYSTEMSTO

UCN_30.indd 1

manage and collect my paper? s )SMYMARKETHEALTHYENOUGHTOKEEP my customers employed and paying? s !M)SELLINGCARSTHATWILLRUNFORAS long as the loans run? s (OWIMPORTANTISCROSS SELLINGAND repeat customer business to my dealership? s $O)HAVEACCESSTOTHECAPITALNEEDED to grow my portfolio? )FYOUANSWEREDhYESvTOTHESEQUESTIONS then keeping your paper may be the best LONG TERMINVESTMENTFORYOU3$! )NC has provided capital to buy-here, pay-here dealers for over 20 years and can customize funding plans especially for you. Visit us at or call 800-467-5172.

5/10/13 5:11 PM

May 20, 2013ÛÛÝÛۀ~


Tips for Choosing Your DMS The Dealer Management Software (DMS) category is highly competitive. Here at Finance Express, we’re often asked how our system compares to our competitors. “We could rattle off a laundry list of things that our DMS does, but the question customers ought to be asking is what they should look for when choosing a DMS.” The product you end up with should provide the features, benefits and functionality that meet the needs of your business – while helping you to increase sales, improve efficiency, reduce errors and keep ahead of the technology curve.

Here are a few key things your DMS should provide: 1. Web-based: Ability to securely access your data from anywhere you have an internet connection. 2. Internet Marketing: Real-time access to valuations, CARFAX/ WhannTech_UCN_NABD.pdf 5/13/13 AutoCheck history reports, uploads to

the internet, imports from the auction, buyers guides and window stickers. 3. Custom Reports: Being able to create any type of report you would like and customizing it to the style and layout you prefer. 4. Lead Module: Being able to manage and follow up with your prospects. 5. Buy-here, pay-here module: A collections module that will allow you to take payments, send past due letters, amend the account, create multiple side notes, etc. 6. CC & ACH Integration: Credit card and ACH payments deposited directly into your bank account. 7. GPS tracking integration: Finding exactly where the vehicle is located without having to login in to multiple websites to manage the device. 8. Forms: Providing compliant contracts and state required documents in laser format. 9. Mobile App: Your inventory in your pocket, with evaluation tools and the ability to upload vehicle photos directly to your DMS. 10. Security Rights: Knowing who is using your system and allowing them access only to the areas that you would like them to have access to. Picking a DMS can be a huge undertaking, but we feel that if you look forAM these qualities, you’ll be 10:33:42 happy with your choice.

WhannTech Apps Enable Dealers and Consumers to Make Informed Buying Decisions WhannTech promotes best-ofclass technology solutions and develops data driven efficiency applications for all aspects of automobile sales‚ — whether it be wholesale, retail, dealer or consumer. Founded by Keith Whann, W h a n n Te c h h a s d e ve l o p e d VINdriven Pro, an in-the-lane and on-the-lot decision support tool with access to auction run lists and Transact Auto, a complete wholesale and retail listings tool. Transact Auto is the standard for creating online creditability through its proprietary condition report writer toolset.








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Transact Auto Transact Auto makes condition report writing easy with its proprietary toolset. Scan or enter a VIN, select and enter vehicle information, take photos and create a condition report. TransAct Auto allows the subscriber to export vehicle data, photos and condition reports to online marketplaces.

VINdriven VINdriven is a free consumerdriven application that gives more visibility to their vehicle. The app allows users to quickly scan a vehicle barcode with its industry leading barcode scanner. Once scanned, subscribers will instantly receive VINdriven and Transact Auto are detailed vehicle information, recall available on the Apple App Store. notices and access to vehicle history reports and market data. VINdriven Pro VINdriven Pro delivers everything that VINdriven does, plus access to auction run lists and detailed vehicle history reports. This access allows subscribers the ability to capture

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information without scanning the vehicle. Subscribers receive information on the vehicle’s history and the date of last record. They are also able to view current valuations. Pricing details include average retail, trade-in, auction and loan market pricing. Vehicle information such as recall data, including options, MSRP and invoice pricing are also available.

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Make quick and informed decisions in the auction lane and on the lot. A world-class barcode scanner enables views of valuation guides, market information, recall notices and vehicle history reports.


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€ÛÝÛÛMay 20, 2013


M2M Turns Vehicles into Profits Machine-to-machine (M2M) technologies continue to revolutionize the way companies leverage mobile assets and workforces. This is particularly apparent in the buy-here, pay-here industry. A powerful M2M business intelligence platform allows companies to transform their vehicles into powerful profit-driving assets. As the financial landscape continues to grow in the subprime market, M2M technologies play an even bigger role with the smartest players in the industry incorporating it into day-to-day collections and recovery processes. M2M captures critical business data using installed mobile devices, pushing this information to computers or mobile devices such as smart phones, where it’s served up as actionable business intelligence. For the vehicle financing industry, M2M offers tremendous potential for enhancing collateral management, improving collections, recovery and productivity, reducing risk, and enhancing borrower communication and payment behavior. Once vehicle finance companies decide to use M2M technology, the key is to ensure that the solution they choose is supported by a reliable M2M platform. It needs to be built around industry best practices and offer all the security and scalability to accommodate their business needs.

The best M2M platforms operate in a private-cloud environment comprised of a leading-edge network of databases, data centers, web servers, internet connections, and underneath it all, a layer of robust software. This allows for a fail proof environment, all while maximizing the M2M platform. Implementing the best solution with the right platform is crucial to ensure the greatest ROI on an M2M investment. As the recent winner of M2M Evolution’s Battle of the Platforms, Spireon’s “NSpire” intelligence platform currently supports over 1.5 million active subscribers with the highest level of service availability, reliability, speed, scalability and security. “As the only proven multi-vertical M2M business intelligence platform, NSpire is what allows our new GoldStar GPS solution to instantly connect buyhere, payhere dealers to their vehicle assets and data in real-time, all the time,” explains David Meyer, EVP Spireon, Inc. “This connectivity is becoming increasingly more critical as buy-here, pay-here dealers see a higher demand

for subprime auto financing from a growing segment of credit-challenged customers unable to qualify for traditional auto loans.” It’s critical that vehicle finance companies look beyond just what the solution is and thoroughly evaluate all the providers in this category. Choosing the right partner plays a big role in whether you’re successful or not. It’s prudent to look at financial strength, years in business, number of clients, vertical markets supported, licenses and patents held, data security and back-up, training and support, and of course investment in research and development into the future. As the market leaders in this segment, Spireon encourages companies to follow due diligence before choosing a partner. Spireon invites you to attend the NABD Expo and Academy starting on May 19th in Las Vegas. It starts with the NABD Dealer Academy where companies will be able to learn more about the buy-here, pay-here industry, best practices, and engage in deeper discussions on choosing the right partner.

Selecting the right solution with a great long-term partner is essential for success, but there is still one other important element that should be mentioned. Every company must have the right game plan for their business to perform at its highest potential and maximize profitability. It should include all the best practices not only from this industry but from across related industries as well. Leveraging these best practices is a winning approach. A variety of best practices can be adapted, customized, and incorporated for the buy-here, pay-here segment. It is good practice to constantly monitor, learn, and apply best practices from top successful companies. Spireon invites you to listen to Coach Joe Gibbs’ keynote speech about building the right game plan for success on May 22nd at 2:30pm at the NABD Expo. To learn more about Spireon, its leading brands GoldStar GPS, LoanPlus CMS, and the NSpire M2M Intelligence Platform, visit us at NABD Expo booth #411. Spireon will be unveiling its newest generation of GoldStar CMS for the buy-here, pay-here dealership market. We’ll also be offering sneak peeks at new and exciting loyalty programs for customers. For any questions please visit


Side by Side Income Comparison! BHPH vs Northland’s Lease’T’Own® Buy-Here-Pay-Here Don’t Forget to deduct the cost of Bankruptcies & Repossessions from this total!

End of Year 1 End of Contract Cost of Cars NET PROFIT

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Northland’s Lease’T’Own®

$55,920 End of Year 1


$846,370 End of Contract


- $570,360 Cost of Cars $276,010 NET PROFIT

Analysis Assumptions: 10 cars per month for 12 months (Jan—Dec). The average cost per vehicle is $4,753.00. The average weekly payment is $86.00 per week . The average length of contract is 31 months Taken from the National averages for 2011. SOURCE: NADB-NCM

Get your “No Obligation” Profit Analysis based on your Federal and State Income Tax rates.

- $570,360 $380,570

CASH IS KING No Bankruptci es! No Repossessio ns!

Lease’T’Own® Additional Benefits Complete Turn-Key Program Training & ongoing support included 20+ Years of Experience We track your customer’s insurance status! PROFIT…..PROFIT…..PROFIT!

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May 20, 2013Ă&#x203A;Ă&#x203A;Ă?Ă&#x203A;Ă&#x203A;Â&#x20AC;Â&#x20AC;


Improve Collections or Focus on Recoveries? Do Both with PassTimeâ&#x20AC;&#x2122;s Elite Pro Focused on improving collections? Or maybe it is repossessions you want to tackle. Why choose? You can do both with PassTimeâ&#x20AC;&#x2122;s Elite Pro. Elite Pro is one of the most compressive, feature-rich products on the market. Its patented automated collection technology (ACT) combined with GPS tracking makes the Elite Pro a powerful tool for both improving collections and streamlined repossessions as needed. So what makes the Elite Pro different from other products out there? Essentially, the difference is the combination of two dominant technologies in a single device. It starts with automated collection technology (ACT). This proactive technology system helps improve collections by automatically reminding the customer of their upcoming or past due payment through the use of audible tones from the device. Each time a payment is made, the device is programmed wirelessly for the next payment. If the consumer does not make the payment, the device automatically disables the vehicle from starting after their grace or right-tocure period. This improves collections as the consumer understands their responsibility for payment and

communication, and the consequences for failing to do so. PassTimeâ&#x20AC;&#x2122;s ACT helps keep customers on track, making payments, and improving the focus of the lenderâ&#x20AC;&#x2122;s collection efforts. ACT lowers the need for repossessions as it helps keep customers in their cars, making their payments. But what about the small percentage

leading GPS components to deliver fast and accurate locations when needed. PassTimeâ&#x20AC;&#x2122;s Elite Pro provides dealers and lenders with the ultimate combination of GPS functionality and Automated Collection Technology providing flexibility in managing their portfolios. Elite Pro comes completely

that still slips by? That is where the GPS technology comes in to play. For those loans that still reach delinquency while using ACT, lenders can simply use Elite Proâ&#x20AC;&#x2122;s GPS feature to locate the vehicle in the event it needs to be recovered. PassTimeâ&#x20AC;&#x2122;s Elite Pro utilizes industry

customizable with service packages that provide the ability to perform manual and automatic payment management, asset tracking, and recovery functionality. PassTimeâ&#x20AC;&#x2122;s proprietary ACT system is unmatched in the industry for automatically reminding consumers to pay and help collectors lower

delinquencies. PassTimeâ&#x20AC;&#x2122;s Elite Pro platform is designed to provide customers the perfect blend of Automated Collection Technology to enhance the collection process with GPS tracking for vehicle location and recovery. Specific features enjoyed by Elite Pro customers include: Ć&#x20AC;É&#x; /.)'.É&#x;)&&.#)(É&#x;"()&)!3É&#x; Ć&#x20AC;É&#x; #(É&#x;)#(.É&#x;É&#x;&).#)(É&#x;-,0# Ć&#x20AC;É&#x; #,&--É&#x;)''(É&#x;&#0,3 Ć&#x20AC;É&#x; /.)'.É&#x; 0"#&É&#x; #-&É&#x; ( notification Ć&#x20AC;É&#x; .(.É&#x;"()&)!3É&#x;#(&/#(! Ć&#x20AC;É&#x; )1Ć?..É&#x;).#ĹŚ.#)( Ć&#x20AC;É&#x; 0#É&#x;'*,É&#x;).#ĹŚ.#)( Ć&#x20AC;É&#x; *É&#x;.)É&#x;#2É&#x;Ć&#x2DC;ĹśĆ&#x2122;É&#x;-#'/&.()/-É&#x;)Ć? (Ć&#x20AC;É&#x; ŲŴĆ?)/,É&#x;,%#(! Ć&#x20AC;É&#x; Install Verification Service (IVS) ensures device is installed properly Ć&#x20AC;É&#x; /.)'.#É&#x; ).#)(É&#x;,.. Ć&#x20AC;É&#x; Vehicle low power notification ##(!É&#x;.1(É&#x;)&&.#)(-É&#x;(É&#x; repossessions? Make the decision easy: do both! With PassTimeâ&#x20AC;&#x2122;s Elite Pro, you can have the best of both technologies, covering both your collection and recovery needs. Automated collections technology to keep customers on track combined with GPS tracking for the ones who donâ&#x20AC;&#x2122;t. To learn more about the PassTime Elite ,)ĹťÉ&#x;)(..É&#x;--#'É&#x;.É&#x;ŸššĆ?šŲšĆ?šŸŴŜÉ&#x; or visit us at

The Credit Acceptance program gives our nationwide network of participating dealers the ability to deliver credit approvals to every consumer within 30 seconds, 24/7. We provide opportunities where others canâ&#x20AC;&#x2122; dealers and consumers.

40 Years of Subprime Experience / Success $ Billions paid to Dealers Fast Funding 230+ In-Field local Market Area Managers 7+ Million APPROVALS to consumers Say â&#x20AC;&#x2DC;YESâ&#x20AC;&#x2122; to Everyone with

Guaranteed Credit Approval! 1 Since 972


Credit Acceptance

The ONLY Finance Company You Canâ&#x20AC;&#x2122;t AďŹ&#x20AC;ord to Live Without!

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€ÛÝÛÛMay 20, 2013


Floor Planning Perfection: NextGear Capital Makes it Simple You have options when it comes to floor planning your inventory. You may opt for the traditional lending route with banks, tap into your own reserves, or use one of the specialized floor plan finance companies. Thousands of dealers have discovered that NextGear Capital is the perfect solution to their floor planning needs, offering more than just financing. When you select a business partner for something as critical as funding your inventory purchases, you need more than just the money. Will the auction work with the company? How long does it take to get a title sent to you? Who is available when you have questions? NextGear Capital excels at meeting these needs and more. A result of the merger of Dealer Services Corporation and Manheim Automotive Financial Services, NextGear Capital’s pedigree is refined by the many years in the automotive remarketing industry of these two well-known leaders. To grasp just how impressive their services are, we need to take a look under the hood… A local account executive works directly with dealers, learning their specific needs and expectations. This provides the dealer a more personal touch in assisting with questions or circumstances related to their floor planning needs and their account with

NextGear Capital. At auction, the process of flooring with NextGear Capital is beyond simple; it’s nearly effortless. The dealer informs the auction representative that he wants to use his NextGear Capital line of credit. The auction confirms the credit availability, and the process begins. Once vehicles are purchased by the dealer, the behind the scenes process reveals the true benefits of working

This unique vault is so secure only designated specialists have access to it. NextGear Capital takes the security of their customers’ titles quite seriously. In the event that a title requires additional work to perfect it, such as a reissue by a state BMV, NextGear Capital can handle the entire process, eliminating time and frustration for dealers. All of this is handled by NextGear

their mobile app, dealers on the go can still stay informed. When a vehicle is paid off, that transaction is processed immediately allowing the title to be overnighted. Customers are also sent an email providing delivery date, time and location. Inevitably, the need to call and speak with someone will occur. NextGear Capital’s Customer Service Center is

with NextGear Capital. When a vehicle is floored, the auction sends the vehicle’s title to NextGear Capital’s corporate headquarters in Carmel, IN. The title is assigned an RFID address, nearly eliminating the possibility of it being lost or stolen. From there, every title is scanned in full-color and high resolution. This allows dealers to view their titles online and review all the details to ensure accuracy. Titles are then recorded and secured in a custom-designed, fireproof vault.

Capital’s team of title specialists. This highly-skilled group is comprised of a multi-faceted team with years of experience in title work. They ensure that every single title is recorded, processed, perfected and tracked throughout the entire lifecycle of a floor planned unit. While NextGear Capital is renowned for their superb customer service, their use of technology to the benefit of customers is remarkable. Online account management tools allow dealers to keep abreast of all transactions. Through

world class, handling an average of more than 90,000 calls per month. Service representatives work in teams assigned to specific dealers to establish a relationship and better understand their needs. NextGear Capital’s team of customer service representatives gets results for their customers. Yes, there are many options to consider in flooring your inventory. When you look at all the benefits of working with NextGear Capital, you will see why they are the industry leader.

Come see us at the NABD Show May 19th - 23rd @ Wynn Las Vegas (Booth # 725)


FEX DMS is a best-of-breed dealer management system (DMS) designed to help manage all aspects of a "Buy Here, Pay Here" or Special Finance dealership. The FEX solution is comprised of feature rich inventory management, sales, customer and account tracking tools, along with unsurpassed collection utilities and custom reporting. FEX also electronically integrates with local, regional and national Lenders. FEX was the first 100% Internet based DMS in the market and this means you have no huge upfront fees and typically requires no additional hardware purchases. FEX DMS is the result of over 20 years of research and testing in dealerships, just like yours. The system is continually evolving to meet the ever growing demands of industry regulation and dealership efficiency.

Inventory Management Powerful DMS Features Internet Marketing Payment Device Integration Accept Credit Cards/ACH

BHPH Management Integrated Solutions Automated Dialing Technology FEX Mobile

Contact us to schedule an online demo 866-339-2878

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TO FIND WHAT YOU’RE REALLY LOOKING FOR AutoCheck® reports provide dealers with an in-depth view of a vehicle’s history to better understand, compare and select the right vehicles. With exclusive access to critical auction data from the two largest U.S. auction houses and Experian’s patented AutoCheck Score,® our vehicle history reports are just the tool you need to get a fresh perspective on your inventory and find what you’re really looking for. Get the fresh perspective you need with AutoCheck. Visit or call 1 888 754 4408 today. © 2012 Experian Information Solutions, Inc. All rights reserved.

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The confidence to close more deals Are you confident that every sales conversation focuses only on the best qualities of the vehicle…the strength of your reputation…and the competitiveness of your pricing — no matter who the salesperson is?

You can be with AutoVisor from vAuto Genius Labs.

From a simple scan or click, AutoVisor dynamically delivers all the information needed to turn car browsers into car buyers. AutoVisor instantly pulls and displays: Your vehicle favorably compared to trusted third-party book values and competition in the live market Positive third-party reviews and vehicle history reports Positive customer dealership reviews AutoVisor is the easiest way to be sure that every potential opportunity is powerfully presented to produce more sales and more profit.

Get confidence in every sale.

Visit / confidence or call 877-944-6030.

Smart. Simple. Stand-alone. Applications that solve everyday challenges for every kind of dealer.

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Used Car News 5/20/13  
Used Car News 5/20/13