June 16, 2014
ON THE WEB: Wholesale Prices Down
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Incoming NIADA President Exemplifies Service
Wholesale used vehicle prices were down in May. The Manheim Used Vehicle Value Index reading fell to 124.7 for the month. That still represented a 4.7 percent increase from a year ago.
CPO Sets Record
Certified pre-owned sales were 207,371 in May, according to AutoData Corp. The daily selling rate was the highest ever.
Copart Reports Strong Results for Quarter
Copart, Inc. reported higher revenues for the quarter ended April 30. For the three months ended April 30, 2014, revenue, gross margin and net income were $309.7 million, $132.3 million and $40.9 million, respectively.
Photo Courtesy of Kuehn Auto Sales BUMPER TO BUMPER: Arlan Kuehn, president of Kuehn Auto Sales in South Sioux City, Neb., shows off some classic cars at his buy-here, pay-here dealership. Kuehn takes over this month as the president of the National Independent Automobile Dealers Association. By Jeffrey Bellant
Feds Say Car Crashes Cost $871 Billion
The National Highway Traffic Safety Administration $871 billion in economic loss and societal harm.
(Arlan Kuehn, owner of Kuehn Auto Sales in South Sioux City, Neb., is the incoming president of the National Independent Automobile Dealers Association.) UCN: Tell us a little bit about your background
Rush - Dated Material
and how you got into the car business. Also, tell us about your business today. Kuehn: I’ve been married to my wife, Jean, for 33 years. She worked for Ford Motor Co. for 25 years in the parts and service division. Dave and Dan are my two sons. Dan, my youngest, is in
business with me. He’s my general manager. He does all the financing. I started in the business in 1970 with a General Motors store and then I was with a Ford store. Later, I was a partner in a Lincoln-Mercury dealership. After that, I managed a GM full-line store. Then I just did wholesal-
ing for a few years, going on the road buying and selling cars. I had a three-car trailer. I travelled from Kansas City to Minneapolis every week. I was buying for several Ford and GM dealers. I was doing a lot of wholesaling, working with ADESA and Manheim. Continued on page 8
As Auto Credit Reaches Record High, Industry Looks at Risks By Ted Craig
Auto credit remains strong, but there are some reasons for concern. The total outstanding balance of auto loans was $884 billion in April, a record high and an increase of 10.8 percent from the same time a year ago, according to Equifax. Serious delinquencies, meanwhile, represented less than 1 percent of total outstanding balances, the lowest level in more than five years. “Auto lending continues to lead the recovery,” said Amy Crews Cutts, chief economist at Equifax. “By any
metric you consider, whether new originations, total balances, or low delinquency levels, the auto sector is running on all cylinders.” Some of this growth comes with increased risk, however. One risk is higher monthly payments. Average monthly payments for used vehicles rose to $352 in the first quarter from $348 in the same period a year ago, Experian reports. And consumers are paying those amounts for longer periods of time as loan terms continue stretching out. Continued on page 22
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