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June 3, 2013

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ON THE WEB: IARA Offers Input for Online Platform Sales

Tesla Makes Bold Resale Guarantee

The International Automotive Remarketers Alliance (IARA) has prepared a white paper outlining a set of standards for online platform selling.

TransUnion, Carfax Develop Risk Tool

TransUnion has developed a risk assessment model designed to help auto lenders evaluate the potential for future loan delinquency based on the history of the vehicle used as collateral. The TransUnion Vehicle History Score was developed in partnership with Carfax and uses vehicle-specific information to help lenders improve risk segmentation.

Armed Forces Set Dealership Off Limits

A Virginia used-car dealership has been formally placed off-limits to all military personnel in the Hampton Roads area by the Joint Armed Forces Disciplinary Control Board for Southeastern Virginia and Northeastern North Carolina.

CHARGING AHEAD: The Tesla S recently wowed the staff at Consumer Reports, earning the highest rating ever from the magazine. The company also thrilled investors with its recent earnings. By Ted Craig

Tesla Motors continues to take on the traditional automotive industry, with one of the latest moves being an increase in the Model S resale value guaranteed to be the highest of any premium sedan brand made in volume. Buying a Model S through

the Tesla financing offering now comes with a guarantee that the resale value will be higher than that of BMW, Audi, Mercedes, Lexus or Jaguar. These companies have some of the best resale values in the industry, but it is not out of the question for Tesla to top them, said Alec

Guiterez, senior market analyst for automotive insights at Kelley Blue Book. “The Tesla S will definitely be able to hold its own just because of its advanced technology and because it’s thrilling to drive,” Guiterez said. Eric Lyman, vice president for partner development at

ALG, said Tesla’s short supply of vehicles and positive media reception will also boost its resale value. The firm is hedging its bets. Black Book managing editor Ricky Beggs said the resale guarantee definitely works based on the specific way Tesla has calculated resale value.

Rush - Dated Material

Most EVs Fall Far Short of Expectations Tesla Motors stands out for many reasons. Chief among them is it’s one of the few electric vehicles to show signs of success. At the other end of the spectrum is Fisker Automotive. The firm finds itself in a desperate search of a last-minute savior, similar to what Saab went through last year. If the effort fails and Fisker goes completely under, its vehicles will suffer the same fate as Saab and Daewoo on the used-car market. The biggest issue for all those brands became the availability of parts for repairs. That becomes an even greater concern given Fisker’s

electric powertrain. Most average consumers will probably avoid them, said Alec Guiterez, senior market analyst for automotive insights at Kelley Blue Book. “There could be some collectors that seek them out,” Guiterez said. Even the electric vehicles sold by major manufacturers, such as the Nissan Leaf and the Chevrolet Volt, have failed to meet expectations. “It’s very clear consumer demand has not been up to par with manufacturers’ projections,” said Eric Lyman, vice president for partner development at ALG.

Take the betting out of bidding To learn more, turn to the back cover or visit auctiongenius.com/go/genius

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June 3, 2013ÛÛÝÛۀ

USED CAR NEWS

Dealer Made His Mark While Spreading Gospel By Jeffrey Bellant

LAS VEGAS – The National Alliance of Buy-Here, PayHere Dealers added John Linnehan, former owner of Linnehan’s Credit Now Auto in Ellsworth, Maine, to its Hall of Fame. Ingram Walters, owner of iCars in Monroe, N.C., announced the award during the NABD conference at the Wynn Las Vegas. “He’s a legend in our industry,” Walters said. “For over 60 years, the name ‘Linnehan’ was well known across the state of Maine. Those close to him, like me, knew that he rose on the tide of his own ambition. “He’s one of the few men I’ve seen in Las Vegas carrying a Bible.” Since selling the business, Linnehan has been working on Christian ministry fulltime, planting churches and schools, along with and other work through his Good News Center in Trenton, Maine. Linnehan also gave an inspirational session to dealers at the NABD and he made it count. He brought in a friend

who performed “God Bless America,” along with a couple of other songs. “This is one of the highest honors I’ve ever received in my life,” Linnehan said. His talk was as much a sermon as anything else, as he quoted the Bible throughout and even ended with a prayer for the attendees. But he also focused on the traits needed to achieve success in business and life. He talked about the importance of character and integrity – keeping your word. Linnehan said leaders also need confidence, humility, focus, vision, goals and fun. “You can have fun (despite what others might say),” he said. One of the most important traits a leader must have is love, Linnehan said. He also said that leaders must always try to excel and improve at what they are doing. At the same time, contentment is also important, he said. Although Linnehan’s goal was always to achieve the great success he’s had, he

Photo by Jeffrey Bellant WELCOME TO THE CLUB: Ken Shilson, left, and Ingram Walters, right, of the National Alliance of Buy-Here, Pay-Here Dealers, welcome John Linnehan, center, to the NABD Hall of Fame.

warns other dealers about the dangers of fame. “Don’t let it go to your head,” he said. Linnehan said striving for these traits and values can help dealers reach their goals. Linnehan’s plan for success apparently worked.

“He was the largest usedcar dealer in Maine for many years,” Walters said. One of the times he came up short was when he made a bid for the state Senate in Maine and lost, Walters said. But it was one of the few endeavors he failed to

succeed at. Walters said Linnehan’s dedication to his vision and the way he has carried himself has been an inspiration to him, “Despite the fact that I stand over 6 feet 5 inches tall, I always feel small when I’m next to him,” Walters said.

Credit Reports Offer Insights Beyond Bad Score By Ted Craig

Many buy-here, pay-here dealers don’t pull a potential buyer’s credit history, knowing it will be bad. They miss out on a lot of useful information by doing that. Dealer Fran Cavenaugh told attendees at the recent National Alliance of Buy-Here, Pay-Here Dealers Academy that she always has her underwriters pull credit reports. One of the main reasons is a credit report helps verify information such as residency, Social Security number and addresses. The reports also show the honesty of the potential customer. Cavenaugh said it often turns out the potential customer carries more debt than they admit. “They don’t always tell you all the debt they owe,” Cavenaugh said. “And I’m not certain they know all the debt that they owe.” There are differences between the types of debt, as well, with some creditors proving more aggressive in collections. Medical creditors are garnishing wages more often. Also, the federal government will deduct back payments on student loans from tax refunds. That can create problems in using these

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refunds to catch up on car payments. Credit reports also provide important information about child support. Unpaid child support can become a major issue, landing a customer in jail which means no car payments. Another area in which an applicant might bend the truth, knowingly or not, concerns bankruptcies. A potential customer may list a bankruptcy, but say it was discharged when it was really dismissed. There’s a major difference. A discharged bankruptcy means all the requirements were met while a dismissed bankruptcy means the court voided the process. Cavenaugh said a credit report often also reveals the difference between what a dealer and a consumer considers a repo. She said many consumers consider returning a car they are unable to pay for as a minor matter, whereas a dealer views it as a voluntary repossession. Cavenaugh said the most important information in a credit report regards how the consumer paid past auto credit. “That’s how they’ll pay you,” Cavenaugh said.

Photo By Ted Craig READING BETWEEN THE LIES: Dealer Fran Cavenaugh shares her best ideas for checking a potentital customer’s credit background. Cavenaugh recommends going over credit reports.

Cavenaugh offered others tips in addition to pouring through the credit reports. A critical one is knowing the differences in types of phones and living arrangements that determine a potential customer’s likelihood to stick around.

Cavenaugh is cautious when a consumer’s cell phone comes from a pre-paid plan, such as Cricket or MetroPCS. She also prefers home owners to renters. And owning a home means having a mortgage, not a land contract or contract to deed.

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 ÛÛ�ÛÛÛJune 3, 2013

USED CAR NEWS

NEWS BRIEFS ALG Forecasts Lower Residuals

Personal Auto Consultant, via Auestimated market value data and ing increasingly important toNation Direct, who can answer pricing to 30 million annual visitors. ALG is forecasting a slight dequestions about financing and availcrease in 36-month residual values Avis Budget Program Takes Trades able warranties and collect personal of minus-0.5 percentage points, Avis Budget Group Inc. announced vehicle information to provide buywhich compares favorably to his- Social Media Plays Larger Role Online dealership reviews on sothat its Ultimate Test Drive pro- ers with fair market value on tradetorical norms that expected a minus-0.9-percentage point drop, ac- cial media networks are now playing gram, the company’s car sales initia- in vehicles. This value can then be applied tocording to the latest ALG Industry the most important role in the deal- tive, now accepts trade-in vehicles. ward the new vehicle purchase. ership selection process. In collaboration with AutoNation Report. Ultimate Test Drive is available in The Spring 2013 Automotive SoInc., Ultimate Test Drive off ers conALG has also launched an updated forecasting model, adding real dura- cial Media and Reputation Trend sumers a no-haggle process and fea- Arizona, California, Colorado, Florble goods as one of the new macro- Study released by Digital Air Strike tures a wide selection of late-model ida, Nevada, New Jersey and Texas. economic drivers to better reflect included an in-depth analysis of Avis and Budget rental vehicles for The program features more than 75 current factors impacting vehicle how 650 U.S. dealers use social me- purchase. Customers can shop on- makes and models. The Ultimate Test Drives are freedia and an online survey of 2,000 line at www.avis.com or www.budvalues. The Industry Report includes consumers who purchased a vehicle get.com and schedule their “ulti- of-charge for two hours or can be as long as three days for a nominal mate test drive.� a macro look at the U.S. economy in the last 6 months. rental fee. The majority of car buyers said Potential buyers are assigned a and factors that can impact vehicle pricing - including gasoline prices, they consider review sites as “helpdurable goods and interest rates. ful� in their decision as to where to Published By General Media LLC Other measures of the nation’s purchase a vehicle. The study found that 24 percent of USED CAR NEWS (ISSN 1555-7413) is published at economic health are considered, 24114 Harper, St. Clair Shores, MI 48080 including job reports, consumer consumers consider online review confidence and unique factors sites to be the “most helpful� factor, Phone: 586-772-5200 or 800-794-0760 Fax: 586-772-9400 such as the recent “sequester,� the exceeding all other factors includwww.usedcarnews.com impact of which may affect used ing the 15 percent of car buyers who vehicle values moving forward. consider dealership websites “most helpful�. Charles M. Thomas The study also showed that review Founder (1947-2002) sites in organic searches are becomU.S. News Adds TrueCar Lynda R. Thomas, Publisher U.S. News & World Report has exColleen Fitzgerald, General Manager panded its relationship with TrueC R O S S WO R D by Myles Mellor Car Inc. to now incorporate ClearEditorial: Book, TrueCar’s used-car valuation Ted Craig, Managing Editor PAGE 21 tool, in various places on the U.S. Jeffrey Bellant, Staff Writer News Best Cars website. CAA-Santa_UCNjun3.pdf 1 pro5/22/13 4:37 PM TrueCar will be the exclusive Contributing Writers: vider of trade-in value and used car Sheila McGrath, Jenny King Columnist: Tony Moorby Advertising: Shannon Colby, Account Manager Megan Frump, Account Manager Marie Hingst, Account Manager Circulation: Helen Thomas Production: Josie Godlewski, Media Manager Tim Montie, Graphic Designer ——— C

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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.

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June 3, 2013 �Ûۂ

USED CAR NEWS

Classic Car Sale Falls Short of Expectations The second annual Classic Motorcars spring sale in Novi, Mich., held great promise, but produced lackluster results. What should have been a buyers’ and sellers’ delight wasn’t. Bids at the Suburban Collection Showplace, both live and off-site, were not high enough to satisfy the majority of sellers. Of the more than 150 vehicles for sale during the twoday event, only 50 changed hands. Classic Motorcars reported total sales at the April 27 28 event of $744,429, including cars sold, memorabilia and buyers premiums. Top sellers included a 1965 Dodge Coronet 500 Hemi convertible ($41,580, including the 8 percent buyer’s premium); a 1940 Ford V-8 Deluxe convertible ($37,800), and a 1949 Triumph 2000 Roadster ($36,720). Canton, Ohio-based Classic Motorcars did round up an interesting and varied inventory. There were Jaguars, Mercedes and Porsches, a couple of Model Ts, handsome members of the Amer-

ican Motors family, hot rods, Corvettes and older luxury sedans. The seller of a signal orange 1973 Porsche 914 2.0-liter outlined its history on the car’s windshield. The two-seater, with plaid inserts in black vinyl, had one ground-up restoration and was described as a “complete blast to drive.� Close inspection was encouraged. But the “original luggage rack� car did not sell. John Jacques was disappointed when his gleaming dark blue metallic 1965 Chevrolet Impala SS 396 Turbo Jet also failed to change hands as it crossed the auction block at Novi the first day of the weekend sale. The high bid was $29,000, said the Clay, Mich. resident. Not enough, said Jacques, an experienced enthusiast who spent four years bringing the Impala SS to perfection. Jacques said the Impala, which he bought locally five years earlier, had earlier had a body-off restoration. He added a dry cell battery and new air conditioning. The car features Eaton Positrac-

Photo by Jenny King KEEP ON TRUCKIN’: An unusual restored 1967 Ford Bronco un-cut half cab with 289-inch V-8, tow package and winch sits on display at a recent classic car sale. The truck sold for $8,640.

tion, a new interior and an aftermarket AM/FM radio with no modifications to the dash, he said. “This was not my first

project of this kind,� said Jacques, who appeared anxious to begin another. “I also put in an oversize aluminum radiator and three-inch dual

exhausts in the Impala. It does not purr like a kitten.� Among the successful sales was a 1948 Chevrolet Fleetmaster Deluxe coupe.

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ƒÛÝÛÛJune 3, 2013

USED CAR NEWS

Eco Boost Draws Lawsuit

ONE HAPPY CUSTOMER: This man is celebrating because Ford helped raise money for his cause as a way to promote its Eco Boost system. Other consumers are less happy with the company and filed a class-action suit.

Bohrer Law Firm LLC has filed a class action complaint on behalf of all Louisiana purchasers and lessors of 2011 and 2012 Ford F-150 trucks with the Eco Boost engine. The lawsuit was filed by two Louisiana residents alleging Ford manufactured and sold defective F-150 trucks with the Eco Boost engine. The class-action lawyers are

reviewing cases for residents of all states who have experienced problems with the defective charge air cooler whose vehicle has stalled, gone into limp mode, had poor gas mileage, failed to accelerate or shuddered or whose vehicle was brought to a Ford dealership to fix these issues and the repair did not resolve the problems.

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PAGE 8 - HOW TO GET A LIFE OFF THE LOT

Seller Helps Raise Support for Charter School, Shelter By Jeffrey Bellant

Ingram Walters, a Monroe, N.C., buy-here, payhere dealer, spends his time off the lot serving his community. Walters sits on several boards of various organizations. For example, he serves on the foundation for his children’s charter school, which requires a lot of fundraising. “A charter school gets money from the state for operations, but they don’t get facility money,” he said. “The facility money has to be raised by the board.” Walters helps organize the fundraisers for the school. “My best fundraiser is an auction,” he said. “I don’t know if I got that idea from the car business or not. “But we go around and take donations of big-ticket items. “For example, we’ll offer a nice beach house for a week, or offer a (weeklong stay) in the mountains, or a five-course dinner party for 12 with a wine pairing.” It also includes a silent auction.

“We bring in two professional auctioneers and offer an open bar, of course,” Walters said. “We charge a lot of money and it’s a black-tie (affair) so everyone dresses up.” Walters said the silent auction is up early with the live auction coming later. As the auction gets started, businessmen start competing and showing off to win the items up for auction. “Some bidders want to show off once the egos kick in, he said. “We’ve raised $250,000 in a single night,” Walters said. He said a successful fundraiser in his county might normally reach about $50,000 or $60,000. Walters has headed up the event for 10 years. One of Walters other philanthropic efforts involves help for a local battered women’s shelter. He’ll even collect personal items for the shelter when he attends out-oftown events like the recent conference for the National Alliance of Buy-Here, PayHere Dealers in Las Vegas. “When I come to these

File photo FUNDRAISER: Ingram Walters, a Monroe, N.C., dealer pictured with his wife, Missy, helps raise money for his children’s charter school through an auction held by a foundation.

shows, I ask all of the people that I’m close with to bring the shampoos, conditioners and soaps they get in their rooms and we put them in a bag to bring to the shelters,” Walters said. Any of the dealers who travel can do this, he said.

“It’s the little things,” he said. “It doesn’t cost anything and they really appreciate it. “I used to bring the (toiletries) home. But I’ve got enough shower caps and small shampoos.” Walters said his biggest

involvement off the lot involves his three children. “I’m really involved in AAU sports and travel teams,” he said. “They play basketball. Walters jokes that he even referees the games – from the stands.

Dealer Finds Focus on Health Gives Him More Energy By Ted Craig

Looking at dealer Steve Hall a few years ago, few people would consider him unhealthy. But Hall felt less than optimal. He felt run down, just like many business owners keeping a hectic schedule. Then the owner of Dallasbased Driversselect came across two men that helped change his life. The first was Jim Loehr, a performance psychologist and author of several books, including “The Only Way to Win” and “The Power of Full Engagement.” “You have a choice every day on where to spend your time,” Hall said. Reading Loehr’s books led Hall to examine his priorities. One area he realized needed work was his health. Hall wasn’t overweight, File photo FIT: Dealer Steve Hall, right, credits Dr. Kenneth Cooper with helping him create a healthier lifestyle, one that helps him perform better at work.

…ÛÛÝ June 3, 2013

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but he wasn’t optimal, either. That is when he came into contact with legendary Dallas physician Kenneth Cooper. A long time advocate of proper diet and exercise, Cooper literally wrote the book on aerobics in 1968. Hall started making more time for exercise. He also started to change the way he ate, something that proves challenging for many people with his kind of job. “I love to entertain,” Hall said. “And I have to for business. So I eat out a lot.” This meant Hall needed to learn to control his meals rather than letting the restaurant do it. He avoids fried foods, for the most part, and other less healthy options. Hall doesn’t ignore cravings, but he does curb them. He might order a plate of

French fries, for example, and throw out three-quarters of them. Hall started to spread his new healthy habits to his staff. He brings lunch in a few times a week. In the past, Hall let his staff choose the menu and that usually meant pizza and other comfort foods. The energy at the store crashed by late afternoon. Now he brings in dishes that keep the staff going for the whole day. Hall has also worked stretching and movement breaks into the schedule. This may seem a waste of time and money to some, but Hall said the extra energy and healthier staff can pay for itself with one extra car sale a month. “It’s an investment,” Hall said.

NEXT ISSUE: NIADA CONVENTION www.usedcarnews.com

5/28/13 5:38 PM


Rick Williams Owner, Texas Direct Auto

Mike Welch Owner, Texas Direct Auto

Rick and Mike’s story ... “WE STARTED IN A SMALL WAREHOUSE, BUYING USED CARS, CLEANING THEM, LISTING THEM ONLINE. NOW WE SELL 1,500 USED VEHICLES A MONTH.”

When Rick and Mike of Texas Direct Auto needed more than local banks could provide, Ally stepped up with the expertise, flexibility and financing they needed to grow their used car business from a small start-up to one of the country’s most successful used car retailers. And Ally looks forward to the opportunity to be there for Rick and Mike, with tools that can help them go as far as their ambition and talent can take them. Because helping dealers work toward their full potential is more than our passion. It’s our pledge and our promise. To hear the rest of the Texas Direct Auto story, go to ally.com/dealer or contact an Ally Account Executive. ©2013 Ally Financial. All rights reserved.

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~‡Û�ÛÛJune 3, 2013

USED CAR NEWS

CPI Changes to Meet Needs Tuesday’s at 11am in San Antonio Friday’s at 10am in Corpus Christi

Collateral protection insurance has really taken off as a product for buy-here, pay-here dealers in past few years although it has a much longer history as a financial product. And some of that history is negative. Chris Kirwan of Berkshire Risk Services explained the product to attendees at the recent National Alliance of Buy-Here, Pay-Here Dealers Dealer Academy. Kirwan

spoke on how it differs today from some of the unpleasant past. Collateral protection insurance, or CPI, is insurance placed by a lien holder on a vehicle when the diver’s insurance lapses. It only covers physical damage. CPI started in the 1970s. By the late 1980s, there were numerous lawsuits over disclosure failures and other issues. NABD founder Ken Shilson said most of these issues have been resolved, but he said dealers need to perform due diligence when choosing a provider. For dealers who do this, CPI addresses a major issue. Most dealers require proof of insurance when a consumer enters into a retail installment contract. Kirwan said about a third of all buy-here, pay-here customers will let that insurance lapse during the term of the contract. A dealer who places a CPI clause into his contract can then place the physical damage policy on the vehicle and charge the driver a monthly payment. The payment is then passed onto the CPI provider. Kirwan said the dealer doesn’t have to cover the cost if the consumer fails to do so, but can if he chooses.

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~ÛÝÛÛJune 3, 2013

USED CAR NEWS

Few Small SUVs Score Well

DETROIT (AP) – Only two of 13 small SUVs performed well in frontend crash tests done by an insurance industry group, with several popular models faring poorly in the evaluations. Subaru’s 2014 Forester was the

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~ Û�ÛÛJune 3, 2013

USED CAR NEWS

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– Continued from page 12

Wrangler received only “marginal� or “poor� ratings from the Insurance Institute for Highway Safety. Small and midsize SUVs, which get decent gas mileage and have the cargo and passenger space of larger SUVs, are among the fastest-growing segments of the U.S. auto market. Sales grew 50 percent from 2005 to last year, when U.S. consumers bought more than 2.5 million of them, according to Ward’s AutoInfoBank. The IIHS ratings are influential because many auto shoppers find them while researching vehicles on the Internet. The group says its crash tests and ratings are designed to get automakers to improve the crashworthiness of their vehicles. The ratings are for the institute’s “small overlap� crash test that covers only 25 percent of a vehicle’s front end. The test was added to the IIHS evaluations last year, with the institute aiming to push automakers into bolstering the crash resistance of their vehicles. The group’s tests are more stringent than the U.S. government’s full-width front crash test. The institute says that in many vehicles, a crash affecting onequarter of the front end misses

the main structures designed to absorb the impact of a crash. Yet such crashes account for nearly a quarter of the collisions that cause serious or fatal injuries to people in the front seats, IIHS said. The new Ford Escape, the topselling small SUV so far this year, got a “poor� overall rating, while Honda’s CR-V, the No. 2 seller, got a “marginal� rating. Toyota’s RAV-4, another big seller, hasn’t done the testing yet because Toyota asked for a delay to improve the vehicle’s structure, the IIHS said. Other SUVs getting “poor’’ ratings were the Jeep Patriot, Buick Encore, Kia Sportage and Hyundai Tuscson, the institute said. The BMW X1, Nissan Rogue, Mazda CX-5, Volkswagen Tiguan and Jeep Wrangler two-door all got “marginal� ratings. The Forester and Outlander Sport each received the IIHS’ coveted “Top Safety Pick Plus� award because they performed well in multiple tests including the small offset crash. Many of the other SUVs, including the Escape and CR-V, won “Top Safety Pick� designations, but didn’t get the “plus’’ due to their performance in the small offset tests. Only 20 vehicles across all car segments have received the IIHS “Top Safety Pick Plus� award.

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~ÂƒĂ›Ă?ÛÛJune 3, 2013

USED CAR NEWS

PEOPLE IN THE NEWS

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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.

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Jaguar, the Jaguar logo, and Jaguar Financial Group are trademarks of Jaguar and any use by JPMorgan Chase Bank, N.A. (“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.

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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.

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Š 2013 JPMorgan Chase Bank, N.A. Member FDIC. All rights reserved. (13-038) 02/13

Manheim recently announced three promotions: É&#x; Ć€É&#x; Rock Anderson, to vice president and chief people officer; É&#x; Ć€É&#x; Mark Ford, to Florida market vice president; and Ć€É&#x; Rich Coutu, to North Central market vice president. On July 1, Anderson succeeds Senior Vice President and Chief People Officer Lilicia Bailey, who is retiring. Anderson most Rock recently served as vice presiAnderson dent of people strategies for Manheim. In this role, he was responsible for all human resources functions. His strategic input played a key role in many people strategies successes, including recognition from the Atlanta chapter of the Society of Human Resources and the Atlanta Regional Commission. Before joining Manheim, Anderson held leadership positions with several large companies including Siemens, Wachovia Bank and Inroads Inc. Anderson is a member of the board of directors and serves as chairman

of the strategic implementation committee for the United Way of Metropolitan Atlanta. He is chairman of the benefits committee and a member of the finance committee for the Catholic Archdiocese of Atlanta and president of the finance committee for St. Anthony Catholic Church. Manheim also promoted two regional executives. Ford has been named market vice president for Manheim’s Florida Market and Coutu has been named market vice president for the North Central Market. Ford has been with Manheim for 24 years. In his new role, Ford will lead the Florida Market’s nine Florida operating locations and one Puerto Rico location. Ford moves into this role after serving as market vice president for the North Central Market for more than two years. Prior to his VP role, Ford was general manager at Manheim Ohio for three years. Coutu joins the North Central Market team from Manheim Financial Services, where he has been vice president of operations since 2012. Coutu will be responsible for leading the North Central market’s six operating locations.

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RETAIL MARKETS COLORADO

Cindy Christensen, general manager, Herbie’s Auto Sales, Greeley, Colo.: “We’ve been in business since 2000. “We have one location, but we’re going to franchise. Now we’re licensed in every state. “We don’t have another store yet, since we’re just starting. “We sell about 105 per month. “Our goal is to keep about 117 in inventory at a time. Our goal is to have 60 on the actual lot. “Sometimes we’ll only have 30 and the rest are stuck in reconditioning. “Last year, our first quarter was little bit better. This January and February were a little slow. “We were about 15 percent off. I think it had to do with the late tax (returns). “Our vehicles come from a number of places. “We get them from several other dealerships and wholesalers. “We have auctions in the area that we use. “We also have a campaign

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called ‘we buy cars,’ because we understand that the biggest purchaser of cars – and the biggest seller – is the general public. “So we’ll probably get as much as 20 percent of our cars that way. “We’re pretty close to 100 percent buy-here, pay-here, though we do a few credit union deals. “We’ll even do some cash deals. “The average down payment is $300, plus the trade, normally. During tax season, it’s $650 plus the trade. “The terms go out about 48 months. We used to only go out 36 months. “It just keeps creeping up because of the cost of cars. “Our inventory is mostly domestic. We like domestic. “We’ll also sell some Japanese, but not German vehicles. “If you place vans in the truck category, we probably sell 50 percent cars and 50 percent trucks. “Our goal is to have less than 100,000 miles on our cars and less than 150,000 on trucks.

Compiled by Jeffrey Bellant “We changed our program. “(Earlier), we decided to sell a less expensive car and ended up with more mileage. “But we’re going back to our old model. “The reason is we have a 24-month warranty and that doesn’t mix (with higher mileage cars). “The average model year is about 2004. “We have our own shop so we service our own vehicles. We don’t really do outside work. “Our goal for reconditioning is $750 per vehicle. “But in all actuality it’s more like $900. “About 60 to 70 percent of our sales are repeat and referral business. “We don’t do any advertising. However, we do some branding. “For example, we’ll have all these little (logos) all over town, and little Herbie’s cars. “We also reach out to the community by being involved in different groups and organizations. “Our average contract price is just under $14,000.”

TENNESSEE

Bob Hayes, owner, J & L Auto Sales, Tullahoma, Tenn.: “I’ve been in business six years. “I keep about 25 units on the lot. That’s about the same as this time last year. “We’re a small (store), so we’ll sell anywhere from two to 10 units a month. “(For inventory), I bought from a wholesaler for a long time. But now I’ve started going back to auctions. I had a wholesaler who (I had problems with). “We’re lease-here, payhere. We shoot for a $300 payment over 36 months. That puts the retail price at right around $11,000 or $12,000. I carry cars, since I can’t really afford trucks. “My inventory is all domestic. The reason is, the Japanese stuff is expensive to buy. I love European cars, but it’s crazy how much it costs to fix them. “We’re changing our focus on model years and mileage. We’re trying to buy 2000 to 2004 and spend about $4,000. Mileage on those were anywhere be-

tween 100,000 and 150,000. Now we’re thinking to get a better car, increasing it to $5,000 or $6,000, with the model years in the 2004 to 2007 range. We’d like to get mileage somewhere around 100,000. We think we’d be able to get more money out of those. Our customers will be happier and I want the car to (last.) “I like lease-here, payhere. We only pay on the money we collect. “Our reconditioning costs are somewhere between $400 and $700. That hasn’t changed from this time last year. “We replace the tires on the cars, which really runs our costs up. “We don’t do any marketing or advertising. We have to change that. The (National Alliance of Buy-Here PayHere Conference) really opened my eyes up to this. “After sitting through the (show), I’m convinced that the only reason we’re not selling more cars is that we’re not advertising where we should be advertising. “That alone made it worth coming.”

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~…ÛÝÛÛJune 3, 2013

USED CAR NEWS

WHOLESALE MARKETS MINNESOTA

Robin Thompson, president, Mid-State Auto Auction, New York Mills, Minn.: “We’ve been in business for 29 years. It will be 30 years in August. “The auction has four lanes. Right now, we’re running three. “Our volumes have been between 400 and 500 units. “It’s off a touch from this time last year. It’s not down dramatically, but I’d say it’s off a little bit. “The conversion rates have been good. We’ve been right around that 60 percent mark pretty consistently. “Our bidder average has probably been around 125 to 150. We’re kind of in a remote spot. But that’s a little less than this time a year ago. “However, the buyers who come to our place are typically planning to buy multiple cars, not just one. So anytime we have a sale, it’s not uncommon for a guy to buy 10 to 15 cars at a whack. “We obviously draw quite a bit of dealers from all over Minnesota. We also get a lot

of dealers from the eastern half of North Dakota and the eastern half of South Dakota. We’ve definitely seen some new faces. “It seemed at the beginning of May, business was down a bit (for dealers) but, by the end of May, I saw a lot better attitude and traffic was up. But we had a colder and snowier than average winter. With the taxes coming in late, I think some of that spring market got pushed later. “We are at least a 90-percent dealer consignment. But we also have (accounts with) Westlake Financial, Union Leasing, and Choice Auto Rental. A big account for us is United Auto Corp. “We just started a GSA sale last year. We’re expecting about six sales this year. We had one earlier and we’ll have our next one at the end of June. “They’ve got the right mix of cars. In a lot of cases, we’ll get 40,000-, 50,000or 60,000-mile cars. The number of units per GSA sale (has varied). The normal sale is about 100 units, which is open to public. The

Compiled by Jeffrey Bellant lowest number we’ve had is 53 and highest number we’ve had is 128. We’ll get a lot of Impalas and Malibus. We also get a fair amount of pickups and, lately, we’ve been getting quite a few SUVs. “Our average price coming through the lanes is right about $5,000.”

OHIO

Jay Wilson, general manager, ABC Detroit/ Toledo, Perrysburg, Ohio: “We just had our 13th anniversary. “We run six lanes and they’re all simulcast. “Our volumes have been steady. We average 800 to 900 a week typically. Our conversion rate is 64 percent for the year. “We’re pretty close to what we were this time last year. “It’s pretty steady compared to last year. “I know the whole country is still in a little bit of a recession and this area’s about as bad as anywhere in the country. So to be holding on as strong as we are means kudos to my staff.

“Our typical dealer attendance each week is about 625 to 650. That’s been pretty steady since last year. “A lot of dealers might complain that they aren’t doing well. Yet, they hate to miss the opportunity (in the lanes) to find that certain car they may need for their lots. “We’re a Friday sale. So we’ll get a lot of dealers that hit the other sales early in the week. We get a lot of dealers from Michigan and, of course, Ohio. We get a lot of dealers coming from the Cleveland area. We also get a good draw from Northern Indiana. “I see a lot of the steady dealers, but we see a lot of new faces as well. The new faces keep the other guys honest. “There are some dealers having a tougher time, but there are other dealers keeping a positive outlook. But you hate to see the tough-luck group all hanging together because then they kind of feed off each other. You really want to hang around the positive group of guys and feed off

that. “The mix of our volume has changed over the past three or four years. We used to be 40 percent fleet-lease and 60 percent dealer consignment. I would say it’s probably 75 to 80 percent dealer consignment, with 20 to 25 percent fleet- lease. “But our sales staff has done a tremendous job so that we never burned those ties with dealers when we were running strong with fleet-lease. “We’re seeing some increases in the fleet side. “We do a weekly in-op sale, which has grown. Everything is on the TV screens. We’ll run anywhere from 20 to 35 units weekly. “Right now, that $3,000-and-under car is a tough sell right now. That $3,000 car, a few months ago, is worth $1,500 today. That’s the post-taxseason drop. “The average price in the lanes is anywhere from $5,000 to $5,500. That’s been very consistent from last year. “It’s been a very good year for us.” TM

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ACTUAL WHOLESALE AND PROJECTED RESIDUAL VALUES JUNE 2013

SOURCE: BLACK BOOK

2010 MODELS

2011 MODELS Domestic Cars Buick LaCrosse CX 4D Sedan Cadillac DTS 4D Sedan Chevrolet Cruze LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 Base 4D Sedan Chrysler 200 Touring 4D Sedan Ford Mustang Base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan Ford Focus SE 4D Sedan Import Cars Acura TL Base 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan 2.4 Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Galant ES 4D Sedan Nissan Altima Base 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra Base 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Trucks Cadillac Escalade Base 4D Utility AWD Cadillac SRX Luxury 4D Utility AWD Ford Edge SEL 4D Utility Chevrolet Colorado LT Crew Cab 4WD Z85 Chevrolet Equinox LS 4D Utility FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D Utility 4WD Ram Dakota Bighorn Ext Cab Dodge Grand Caravan Express Wagon Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Flex SEL 4D Utility Jeep Grand Cherokee Laredo 4D Utility 4WD Jeep Wrangler Sahara 2D Utility 4WD BMW X3 XDrive28i 4D SAC

Jun-12 20600 27100 14400 14450 20300 14700 17800 20050 26600 13800 Jun-12 26200 27800 63800 15700 15650 29600 41600 12900 13900 15200 13100 16000 14600 17200 Jun-12 50700 32800 22100 19725 18600 20925 30475 15875 16350 18150 30725 21325 21775 24400 22925 34300

Dec-12 18200 27000 11800 11900 17850 12700 14950 17600 21800 10750 Dec-12 23400 24400 58700 14100 13600 27700 36700 10700 11900 13200 10850 14050 11800 15300 Dec-12 46150 30500 20750 19025 16400 19825 26525 15175 13875 16775 26375 19225 20875 23825 21475 31900

Jun-13 16200 24000 11500 11200 16700 11200 14600 15850 22200 11100 Jun-13 23000 24200 48400 14250 13300 25900 31400 10600 11700 13000 10350 13750 11700 14800 Jun-13 43200 27750 20900 19600 16100 19525 26375 15525 14300 15550 26650 19450 19175 24425 21975 30800

Projected Figures Jun-14 Jun-15 14200 12225 18300 15475 9375 8025 9925 8700 13525 11650 9375 7975 13100 11650 13400 11350 17100 14175 9100 7750 Jun-14 Jun-15 19025 16400 19100 16250 44925 38625 12275 10750 10750 8850 21825 19150 26925 21950 8575 7225 10200 8975 11250 9900 8550 7375 11775 10450 10100 8800 12175 10350 Jun-14 Jun-15 36350 30800 23050 19850 16900 14325 16700 14775 12675 10200 16625 14800 23200 20150 13475 12075 11775 10050 13775 11575 21050 17400 15775 13750 16800 14375 19375 15975 18600 16375 25375 21350

2009 MODELS Domestic Cars Buick LaCrosse CX 4D Sedan Cadillac DTS 4D Sedan Chevrolet Cobalt LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 Touring 4D Sedan Chrysler Sebring LX 4D Sedan Ford Mustang Base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan Ford Focus SE 4D Sedan Import Cars Acura TL Base 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Galant ES 4D Sedan Nissan Altima Base 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra Base 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Trucks Cadillac Escalade Base 4D Utility AWD Cadillac SRX 4D Utility AWD V6 Ford Edge SEL 4D Utility Chevrolet Colorado LT Crew Cab 4WD Z85 Chevrolet Equinox LS 4D Utility FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D Utility 4WD Dodge Dakota Bighorn Ext Cab Dodge Grand Caravan SE Wagon Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Taurus X SEL 4D Utility FWD Jeep Grand Cherokee Laredo 4D Utility 4WD Jeep Wrangler Sahara 2D Utility 4WD BMW X3 XDrive30i 4D SAV

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Jun-12 11600 16800 8150 10550 14200 9500 13300 11650 18650 10150 Jun-12 20600 19700 49900 12850 10050 22600 27000 9600 11450 12250 10700 13150 11300 13100 Jun-12 35700 21200 16375 17400 12525 17125 24275 12425 11675 14150 15325 16250 13300 15950 19550 25150

Dec-12 10250 16300 6850 9350 13000 7950 11150 10400 15900 8050 Dec-12 18600 18150 44500 11600 8350 20800 23600 8450 9900 10700 8950 11250 9150 11100 Dec-12 34950 19450 15875 16425 11275 15525 22625 11725 9750 13175 14425 15375 11875 15200 18000 22500

Domestic Cars Buick LaCrosse CX 4D Sedan Cadillac DTS 4D Sedan Chevrolet Cobalt LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 Touring 4D Sedan Chrysler Sebring Touring 4D Sedan Ford Mustang Base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan Ford Focus SE 4D Sedan Import Cars Acura TL Base 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Galant ES 4D Sedan Nissan Altima Base 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra Base 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Trucks Cadillac Escalade Base 4D Utility AWD Cadillac SRX Luxury 4D Utility AWD Ford Edge SEL 4D Utility Chevrolet Colorado LT Crew Cab 4WD Z85 Chevrolet Equinox LS 4D Utility FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D Utility 4WD Dodge Dakota Bighorn Ext Cab Dodge Grand Caravan SE Wagon Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Flex SEL 4D Utility Jeep Grand Cherokee Laredo 4D Utility 4WD Jeep Wrangler Sahara 2D Utility 4WD BMW X3 XDrive30i 4D SAV

Jun-12 17650 19700 9950 12500 15000 12400 15400 17350 22200 12100 Jun-12 23200 23600 58600 14200 12050 26000 37000 11300 12500 13800 11800 14500 12500 14700 Jun-12 42800 30600 18425 18250 15850 19325 26875 14150 14050 15950 19925 18675 19425 18850 21625 29400

Dec-12 15400 18300 8550 10850 14100 10850 13350 15500 18000 9350 Dec-12 20800 21200 51500 12800 9850 24200 32500 9550 10600 11900 9950 12550 10300 13000 Dec-12 40450 27800 17975 17525 13975 18350 24100 13175 11500 15300 17675 17350 18500 16775 20150 27400

Jun-13 14200 18300 8200 9900 13350 9850 13200 14400 17900 9600 Jun-13 20600 20600 41000 12800 9750 22500 27800 9000 10450 11750 9550 12250 10500 12500 Jun-13 38600 25300 17900 17850 13850 18050 22950 12800 12025 14525 17550 17250 18400 16925 20550 26350

Projected Figures Jun-14 Jun-15 12325 10350 14650 12400 6800 5875 8575 7425 11300 9700 7350 5925 11250 9775 11625 9675 13875 11325 7675 6425 Jun-14 Jun-15 16550 13800 16675 14050 38325 32875 10775 9300 8350 6900 18575 15750 21825 17500 7275 6050 9075 7775 10025 8575 7725 6500 10300 9000 8650 7525 10725 9025 Jun-14 Jun-15 31525 26050 20100 16700 14075 11800 14750 13000 10275 8100 14925 13100 19975 17025 11175 9850 9350 7775 11625 9625 14650 12000 13725 11925 14475 12325 14975 12525 16625 14475 21700 18125

Jun-13 8300 12700 5500 8400 10700 5650 9500 7250 12300 6650 Jun-13 14800 14800 23400 10100 7050 16700 17400 6650 8050 8750 7050 9750 7700 9600 Jun-13 28250 15600 12975 14800 8700 13400 18775 9550 8075 10500 11750 13000 8900 11925 16850 17600

Projected Figures Jun-14 Jun-15 6850 5900 9775 8275 4650 4000 6275 5075 9200 7575 4225 3300 8075 6875 6325 5300 9200 7625 5075 3950 Jun-14 Jun-15 11025 9050 11675 9625 17850 14150 7925 6625 5375 4325 13450 11375 13625 10650 4875 3925 6250 5250 6950 5825 5200 4250 7700 6550 6225 5325 7400 5975 Jun-14 Jun-15 20100 16050 11875 9850 9475 7750 11175 9425 6000 4800 10875 9350 14275 11600 8175 7100 6825 5600 7875 6075 9500 7325 9925 8450 7300 5925 9950 8075 13100 11100 14400 11925

2008 MODELS Jun-13 9900 15200 6500 8800 12050 7150 10800 9100 14800 7800 Jun-13 18800 17600 35800 11450 8300 19500 21200 7500 9300 10100 8100 10950 8900 11000 Jun-13 34300 17450 15000 16375 10775 16075 22625 11200 9800 12525 14325 15900 10775 15200 18900 21350

Projected Figures Jun-14 Jun-15 8350 7175 12625 10525 5650 4875 7450 6425 10800 9175 5525 4400 9325 8050 7975 6775 11300 9325 6250 5150 Jun-14 Jun-15 14175 11725 14025 11675 31925 26300 9325 7975 6925 5625 15675 13425 17650 13925 6025 4875 7775 6625 8750 7500 6350 5325 8975 7750 7475 6375 8925 7350 Jun-14 Jun-15 26650 21450 14750 12175 11775 9775 13125 11250 8175 6300 13275 11550 17575 14550 9725 8525 8250 7000 9850 7925 11825 9700 12075 10400 9275 7675 12750 10475 14775 12900 17425 14500

Domestic Cars Buick LaCrosse CX 4D Sedan Cadillac DTS 4D Sedan Chevrolet Cobalt LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 Touring 4D Sedan Chrysler Sebring LX 4D Sedan Ford Mustang Base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan Ford Focus SE 4D Sedan Import Cars Acura TL Base 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan Lexus ES 350 4D Sedan Mercedes-Benz E Class E350 4D Sedan Mitsubishi Galant ES 4D Sedan Nissan Altima Base 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra Base 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Trucks Cadillac Escalade Base 4D Utility AWD Cadillac SRX 4D Utility AWD V6 Ford Edge SEL 4D Utility Chevrolet Colorado LT Crew Cab 4WD Z85 Chevrolet Equinox LS 4D Utility FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D Utility 4WD Dodge Dakota SLT Ext Cab Dodge Grand Caravan SE Wagon Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Taurus X SEL 4D Utility FWD Jeep Grand Cherokee Laredo 4D Utility 4WD Jeep Wrangler Sahara 2D Utility 4WD BMW X3 4D SAV 3.0si

Jun-12 9900 15200 6950 9000 12700 7850 11600 9650 16800 8350 Jun-12 16300 17400 30200 11600 8500 19400 21600 8150 10250 10950 9600 11900 9350 11900 Jun-12 30650 18600 15075 15700 10775 14550 21525 10825 9300 11950 13250 13550 10975 13625 17700 20900

Dec-12 8250 13800 5800 8000 11600 6400 9700 8200 14150 6700 Dec-12 14600 15600 27900 10500 7050 17600 18600 7450 8900 9600 8100 10100 7750 10200 Dec-12 29800 17050 13400 14575 9200 13225 19000 10125 7950 11000 12125 12700 9500 12075 16750 18750

5/28/13 5:41 PM


‡ÛÛÝÛÛÛJune 3, 2013 PlazaAAofIowa-UCN_jun2-half.pdf

USED CAR NEWS 1

5/22/13

4:14 PM

Compiled By Jeffrey Bellant

Manheim Lets Sunshine In

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SOLAR FLAIR: Manheim New England and the area around it features a solar project that consists of more than 10,000 panels which will serve the auction and community.

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Cox Enterprises announced the completion of solar projects at its Manheim New England auction during a recent dedication ceremony. The Manheim New England project, in North Dighton, Mass., includes a 3-megawatt ground mount installation and 509- kilowatt roof installation. Combined, these produce enough energy to annually power 400 homes and prevent 3,005 tons of carbon from entering the environment. The roof system provides 29 percent of the auction’s energy requirements. The 3-megawatt ground mount system is comprised of more than 10,000 solar panels and was created through an agreement with Taunton Municipal Lighting Plant. The clean energy produced goes directly to serve the community. “We are proud to be the site of one of the largest solar installations to date in the area,” said Tim Hoegler, general manager for Manheim New England. “This project demonstrates to our employees, customers and our community that we are committed to conservation and doing our part to protect the environment.”

RSA Honors Indiana Auto Auction

Indiana Auto Auction has been recognized by Remarketing Services of America for the Best Auction Performance in the U.S. in 2012. RSA executives Tom Pietras, Megan Haley and Don Edman visited the auction during its anniversary sale on April 25 to present RSA’s top award to auction owners Henry and Patty Stanley and Eric Autenrieth. “Indiana is one of our strong auction partners,” said Megan Haley, director of remarketing strategies, Lending Services, Fiserv. “They proactively manage vehicle inventory and are always willing to go the extra mile to ensure success while consistently achieving very

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high service levels.” RSA cited Indiana Auto Auction for excellence in multiple areas in 2012, including transportation, retention, administration and marketing/communication. “It is a thrill to be recognized as the nation’s top performer for a customer like RSA,” Autenrieth said. We invite news items and top-quality photos from our readers to be considered for “Around the Block.” Please include the name of a contact person and a telephone number. Send items and photos to: Jeffrey Bellant Mail: Used Car News, 24114 Harper Ave., St. Clair Shores, MI 48080. Fax: (586) 772-9400 e-mail: jeff@usedcarnews.com

5/28/13 5:42 PM


June 3, 2013Ă&#x203A;Ă&#x203A;Ă?Ă&#x203A;Ă&#x203A;~

USED CAR NEWS

Disconnected Jottings From Tony Moorby... Tax avoidance is legal while tax evasion is not. Apple Computers (or its parent company) has been roundly criticized recently for moving profits offshore, in this case to Ireland, to avoid paying taxes in the U.S. Duh: This prac-

protectorate, derives most of its revenues by hosting businesses or â&#x20AC;&#x153;management companiesâ&#x20AC;? to hold funds away from the domicile of earnings. The British have been doing it since Red Beard was an able seaman.

Tony Moorby

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tice has been going on since Joseph and Mary went from Nazareth to Bethlehem. Is anyone really surprised to see someone exert an option of paying less or no taxes when the option is there? Commercially itâ&#x20AC;&#x2122;s a no-brainer, especially in a country that imposes a 35 percent base corporate tax rate on companies, virtually the highest in the civilized world. The Caribbean is full of little havens to hide ill-gotten fortunes alongside sheltering legally earned incomes. Even snooty Bermuda, a British

While the well-to-do sun themselves on the pink sandy beaches drinking Dark and Stormies, the local rum quaff, tiny offices with naught but a plaque on the front door of an innocent-looking two-story walk up in some back alley, rack up the tally of a major corporation in London. It doesnâ&#x20AC;&#x2122;t even require that anyone be there â&#x20AC;&#x201C; just maintain the presence at the address and pay local taxes. Iâ&#x20AC;&#x2122;ve mentioned before that as much as $2 trillion of American money is secreted away in such conveniences,

obviating its circulation in the normal course of commerce. It will stay that way until companies can make more than they save. Repatriating that money into a growing economy would spur even more growth â&#x20AC;&#x201C; imagine how many people could be put back to work with an injection of that magnitude. But companies would have to be incentivized to do it â&#x20AC;&#x201C; a tax holiday, to all intents and purposes, with no penalty so long as itâ&#x20AC;&#x2122;s put to good use in investment and employment. Tax abatements have been used as incentives by state governors to attract all kinds of investments. Here in Tennessee, Nissan was attracted to Nashville, Amazon to Chattanooga along with VW. Dell Computers enjoyed the same dangled carrot (but didnâ&#x20AC;&#x2122;t keep their side of the bargain and moved out). With all this thriving industry around infrastructural entities grew too â&#x20AC;&#x201C; schools, hospitals, the health care industry, financing, retail and so on. Nashville is now the â&#x20AC;&#x153;itâ&#x20AC;? place to live â&#x20AC;&#x201C; nice climate, low unemployment compared to other areas, good restaurants, itâ&#x20AC;&#x2122;s relatively safe and

C R O S S WO R D

itâ&#x20AC;&#x2122;s in a beautiful area. If this, or any, administration would quit shaking their fists at othersâ&#x20AC;&#x2122; successes and work with them to build together, weâ&#x20AC;&#x2122;d all be better off. The stars are lining up to form a growing economy. U.S.based energy resources are more abundant (yes, I know we have to be careful with the environment), there is a pent up demand for all kinds of consumer and capital goods and the average American wants to shrug off the cloak of the recent past and look forward to something new. Why doesnâ&#x20AC;&#x2122;t Congress look to new and innovative ways to keep money in our own economy? Simplifying the tax code would be a good start but it strikes me that many Washington officials come from legal or accounting backgrounds; many still be-

ing partners in such firms and their incomes thrive on the complexities of the law and financial doings. Iâ&#x20AC;&#x2122;m not advocating a flat tax or â&#x20AC;&#x2DC;fairâ&#x20AC;&#x2122; tax but simple things tend to work; earn a hundred dollars, pay fifteen, no excuses, no rebates or deferments, no subsidies. Apply it to individuals the same as corporations â&#x20AC;&#x201C; plain and simple. Thereâ&#x20AC;&#x2122;s a lot to be attracted by this method; easy to police and a willingness to cough up would keep the IRS off most peoplesâ&#x20AC;&#x2122; backs â&#x20AC;&#x201C; including the Tea Party! The downside is that a voracious government would increase it to 20 percent in five years, introduce different rates for different things and weâ&#x20AC;&#x2122;d be back to where we are today. Itâ&#x20AC;&#x2122;s worth a try anyway - the money would work to our advantage and evasion would be a thing of the past.

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

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