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ON THE WEB: Boston Becomes First City to Team with CFPB

The Consumer Financial Protection Bureau and the City of Boston announced a partnership to connect consumers with the CFPB to ask questions and submit complaints about financial products and services. Boston residents who call the Mayor’s hotline with a question or complaint about consumer financial products or services will be transferred directly to the Bureau, which can answer these inquiries.

IHS Signs Agreement To Buy Polk, Carfax

Diversified market data provider IHS Inc. has signed a definitive agreement to acquire R.L. Polk & Co. The $1.4 billion transaction will be funded with 10 percent equity and the remainder with cash on hand, cash from an existing revolver and a new bank term loan. The acquisition is subject to customary closing conditions. R.L. Polk consists of two divisions - market data provider Polk and vehicle history provider Carfax.


Auction Expansion Ready to Move Ahead By Sheila McGrath

After clearing a costly hurdle unexpectedly thrown in their path, owners of the Central Pennsylvania Auto Auction are hoping to get the go-ahead this summer to start a major expansion project next year. Grant Miller started the auction in Lock Haven, Pa. in 1987, and was joined in the business two years later by his son, Doug, who learned the business from the ground up. The Millers made a few cosmetic changes to their operation over the years, but it wasn’t until they started running out of space for their customers and staff that they started making plans for expansion. The five-lane facility handles about 700 units each Thursday, and they noticed that on auction day people were practically tripping over each other, Doug Miller said. “We just got to the point where we needed to expand our operations,” he said. Last year, the company went to the local township government to get the necessary permits. But their

LOOKING FORWARD: Grant Miller, left, and his son Doug look out on their soon to be expanded auction in Lock Haven, Pa. The pair had to overcome numerous concerns about the impact on the environment before getting the green light to start building.

forward progress came to a halt when Pennsylvania’s Department of Environmental Protection decided a major storm water management system was needed at the site. The move was deemed necessary because runoff from the buildings and parking areas on the 60-

acre lot drain into a sinkhole behind the building. Since then, they’ve been working with engineers, architects, and the area conservation district to get the plan in place. “We have spent nearly $60,000 with our engineers to design a storm water management plan and

haven’t even turned a shovel full of dirt over,” Miller said. He estimates the added expense when they begin the work will be $200,000 to $250,000 for the storm water management project alone. But there’s a light at the end of the tunnel. Continued on page 15

Rush - Dated Material

Auto Finance ABS Continues to Get Upgrades Standard & Poor’s issued 50 upgrades for subprime auto asset-backed securities last year, an all-time record that the ratings agency is already on pace to top this year. There have been 36 upgrades through the first five months of 2013, S&P structured finance director Amy Martin told attendees of the recent National Automotive Finance Association conference. Still, there are signs the impressive rise of auto finance is coming down to earth. “This is part of the normal ebb and flow of consumer financing,” Martin said. She said the ratings agency is paying special attention to

the firms that debuted following the downturn. “It’s easy to start an auto credit company in the middle of a crisis when nobody is lending and look good,” she said. There has been some concern about the growth in auto lending this year, that it might lead to some practices that create problems for the industry. One of those concerns is the growth in term length. Creditors keep extending the contracts, but this increases the risk of something going wrong during the life of the deal. Martin said tern length had little effect, as long as the contract doesn’t outlast the car.

How two guys went from writing software to re-writing the rules of used car selling. See back cover. ©2013 Ally Financial. All rights reserved.

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July 1, 2013ÛÛ�Ûۀ


Chrysler Strikes Deal with Feds in Jeep Recall DETROIT (AP) – After initially defying federal regulators, Chrysler abruptly agreed to recall some oldermodel Jeeps with fuel tanks that could rupture and cause fires in rear-end collisions. But the recall, which came in an 11th-hour deal between the automaker and the National Highway Traffic Safety Administration, covers only 1.56 million of the 2.7 million Jeeps that the government wanted repaired. The rest are part of a ``customer service action’’ and many may not get fixed. By giving in to government pressure, Chrysler sidesteps a showdown with NHTSA that could have led to public hearings with witnesses providing details of deadly crashes. Earlier this month, the automaker publicly refused the government’s request to recall Jeep Grand Cherokees from model years 1993 through 2004 and Jeep Libertys from 2002 through 2007. NHTSA contends the Jeep gas tanks can rupture if hit from the rear, spilling gas

and causing a fire. NHTSA said a three-year investigation showed 51 people had died in crashes in Jeeps. Here’s how the recall will work, according to Chrysler: Ć€É&#x; "É&#x; )'*(3É&#x; 1#&&É&#x; ,call 1.56 million Libertys from 2002 through 2007 and Grand Cherokees from 1993 through 1998. If they don’t have factory or Chrysler ``Mopar’’ trailer hitches, dealers will install them. The heavy metal hitches bolt to the frame and help bolster protection for the gas tank. Ć€É&#x; )/.É&#x; ŹźŲÉ&#x; '#&&#)(É&#x; ,(É&#x; Cherokees from the 1999 to 2004 model years will be part of the ``customer service action.’’ Owners will get notices saying their vehicles are fine if they have factory or Chrysler trailer hitches. Dealers will inspect other trailer hitches to make sure they’re secure. But if the Jeeps don’t have trailer hitches, Chrysler won’t do anything, maintaining that the Jeeps are safe and do not need any changes. A Chrysler spokesman was not sure how many of the SUVs are without trailer hitches.

Jeep, Acura Top Residual Awards It wasn’t all bad news for Jeep in recent weeks. The SUV brand took the top spot among non-luxury brands in the’s third annual Best Retained Value Awards.

The awards recognize the brands and new car models that have the highest projected residual values after five years based on their average True Market Value price when sold new. Jeep won with a

projected 50.6 percent residual value after five years, and Acura won the luxury crown with a projected five-year residual value of 45.1 percent. In addition to these brand-level awards, issued

model-level awards in 22 separate categories. Ford and Toyota tied for the most model winners with four apiece. All vehicle makes with more than 100,000 unit sales in the U.S. in 2012 were eligible.

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6/24/13 12:45 PM

 ÛÛ�ÛÛJuly 1, 2013


NEWS BRIEFS CarMax Reports Record Results

CarMax Inc. reported record results for its latest quarter ended May 31. Net sales and operating revenues increased to $3.31 billion. Used unit sales in comparable stores increased 17 percent. Total used unit sales rose 22 percent. Total wholesale unit sales increased 6 percent. CarMax Auto Finance income increased to $87 million. Net earnings grew to $146.7 million.

Huntington Expands in New England

Huntington Bancshares is expanding its auto dealer financing business into Connecticut and has added personnel to support the initiative. The bank has hired a seasoned team with local market knowledge. It is processing applications now and expects to provide financing solutions to more than 140 dealers throughout Connecticut. Huntington now serves dealers in all of New England, along with 10 other states.

present customized vehicle trade-in appraisal offers directly to consumers on their websites. This powerful tool leverages local market data and features dealer-controlled appraisal values, resulting in realistic appraisals for used vehicles through the combination of Dealertrack analytics, dealer-configured settings and Black Book data. TradeDriver is available as a web service for partner integration and as a website plug-in for dealerships’ websites. TradeDriver and the rest of Dealertrack’s Digital Retailing online solutions, including SmartFind, PaymentDriver and FinanceDriver functionality, can be integrated into third-party dealer websites and are also included as a core component of Dealertrack’s Interactive Suite for dealer websites.

Integration Smooths Process

VinSolutions and vAuto have announced integrated used vehicle appraisal and pricing features for dealer customers who use both systems. The integration brings elements of vAuto’s Appraising and Pricing tools C R O S S WO R D

Dealertrack Adds Trade-in Tool

Dealertrack Technologies Inc. has introduced TradeDriver, an online trade-in appraisal tool. CAA-Santa_UCNjun3.pdf 1 5/22/13 TradeDriver enables dealers, OEMs and third-party portals to

by Myles Mellor

PAGE 21 4:37 PM

into the VinSolutions customer relationship management system’s used vehicle inventory module. With the integration, a dealership’s used vehicle manager can complete a vAuto-powered appraisal in the VinSolutions system. When the appraisal is complete, the salesperson receives an automated alert and can instantly access and share the appraisal details with customers. Similarly, a salesperson can print an appraisal voucher for customers who want to consider the offer and come back to sell or trade their vehicle. In the VinSolutions system, deal-

ers can now access vAuto’s Pricing tool “Gauge Page� with a single click. The “Gauge Page� lets dealers base their used-vehicle pricing decisions on real-time market comparisons and data, as well as the profitability potential of each car. With the integration, the VinSolutions and vAuto systems “remember� individual users and their workflows - instantly taking them to the screens and tools they need. In the past three years, Auto Trader Group (ATG) has acquired Homenet, vAuto and VinSolutions. Each company is now a business unit within ATG’s Software Division.

Published By General Media LLC USED CAR NEWS (ISSN 1555-7413) is published at 24114 Harper, St. Clair Shores, MI 48080 Phone: 586-772-5200 or 800-794-0760 Fax: 586-772-9400 Charles M. Thomas Founder (1947-2002) Lynda R. Thomas, Publisher Colleen Fitzgerald, General Manager Editorial: Ted Craig, Managing Editor Jeffrey Bellant, Staff Writer Contributing Writers: 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 ———









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.

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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6/24/13 1:20 PM

July 1, 2013 ÝÛۂ


RK Motors Starts Running Newly Acquired Auction By Jenny King

PINEHURST, N.C. – RK Motors of Charlotte tested the classic car auction waters here prior to the inaugural Pinehurst Concours d’Elegance. RKM Collector Car Auctions offered 111 cars and trucks to bidders. Twenty-five vehicles sold for a total of close to $2 million. The top four included a 1970 Dodge Charger ($185,000), two 1963 Chevrolet Corvettes ($183,000 and $161,000) and another 1970 Dodge Charger ($140,000). Charlotte, N.C.-based RK Motors added the RKM Collector Car Auctions to its business portfolio earlier this year. “We’re encouraged by the final numbers posted from our inaugural event” held in early May, said Jamie Wiehe, RK Motors Charlotte director of marketing. “Our primary goal for the Pinehurst event was to replicate the RK Motors brand standards in a new sales en-

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vironment, and continue to offer some of the best cars in the classic car marketplace today,” Wiehe said. Danny Burnstein was up from Columbia, S.C. in hopes of selling his award-winning 1954 Ford Crestliner. Designed by Keith Kaucher and featuring air suspension and a tri-power 390 with toploader four-speed manual, the Ford appeared ready for an invitation to a major custom show. And Burnstein, an experienced collector, said he was ready to move on to another automotive project. The purple rhapsody Crestliner, with custom 1954 Chevrolet grille, a tilt column with Mooneyes steering wheel and upgraded sound system, did not sell at the May 4 auction. But an unrestored, singlefamily-owned 1964 Amphicar did: for $64,000. The like-new amphibious convertible, with its proper nautical safety equipment and two rear propellers, offered no guarantees as to its seaworthiness but apparently had tremendous appeal to

Photo by Jenny King SURF AND TURF: The classic car sale in North Carolina offers a 1964 Amphicar 1. This “unrestored survivor” with a one-owner history and 6,154 miles brought a hefty $64,000.

a buyer. It had 6,154 miles on its 14-horsepower 1.2-liter engine. An auction volunteer assigned to watch over some of the sale cars said he thought Amphicars likely took on water if left afloat too long. The strange little vehicles, available in four colors, were built in West Germany and equipped with pumps, just

in case. Another product of the 1960s, a ’65 Ford Mustang fastback with “$129,000 in receipts” and powered by a Smeding Performance 575-horsepower 428 V-8 mated to a five-speed manual, was offered at Pinehurst but did not sell. On the “sold” list was a long, seamless 1951 Joe

Bailon Mercury, the result of a 10-year build and extensive re-working. The custom housed a 351 Windsor V-8. It sold at auction for $37,000. RK Motors’ Wiehe praised the high quality of vehicles for sale at Pinehurst. “The average price for vehicles sold was approximately $70,000,” Wiehe said.

6/21/13 4:10 PM

ƒÛÝÛÛJuly 1, 2013


Many Quality Issues Arise from Vehicle Design The majority of problems owners experience with their new vehicle in the first 90 days of ownership are design-related rather than manufacturing defects. These design problems are far less likely to be successfully resolved at the dealership than are defects, according to the J.D. Power 2013 U.S. Initial Quality Study. The study has been enhanced to better measure the quality of today’s vehicles, particularly problems related to new technologies and features now being offered. In addition, the study, now in its 27th year, allows for more detailed feedback from new-vehicle owners. Nearly two-thirds of the problems experienced in the first 90 days of ownership are related to the vehicle’s design, as opposed to components that malfunction. For example, the component may be working as designed, but owners deem it a problem because it may be difficult to understand or operate. Because design problems are not the result of a breakdown or malfunction, just 9 percent of these problems are taken to a dealership within the first 90 days of ownership. When owners take their vehicle to a dealership for a design-related issue, the problem is fixed only 13 percent of the time. In contrast,

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28 percent of owners who experience a defect or malfunction with their vehicle within the first 90 days of ownership take it to a dealership, and 42 percent of the time the dealership is able to fix the problem. “Automakers are investing billions of dollars into designing and building vehicles and adding technologies that consumers desire and demand, but the risk is that the vehicle design, or the technology within the vehicle, in some cases may not meet customer needs,” said David Sargent, J.D. Power’s vice president of global automotive. “Keep in mind that automakers are trying to design vehicles that appeal to a broad array of consumers, and what works for the majority may not work for all. The successful companies will be those automakers that find a way to give customers the technology they want while at the same time making it sufficiently intuitive so all customers find it easy to use.” According to Sargent, some of these problems may be mitigated at the time of purchase by the salesperson explaining how to use the technology, and others may be remedied with software changes. However, features that are difficult for owners to operate, hard to understand, or inconveniently located

in the vehicle likely will remain a problem for the life of the vehicle. Porsche ranks highest among nameplates included in the study, averaging 80 PP100. GMC ranks second with 90 PP100, and Lexus ranks third with 94 PP100. Infiniti (95 PP100) and Chevrolet (97 PP100) round out the five highestranked positions. Among the 26 model-level segment awards, Chevrolet receives five, while Honda, Kia, Mazda and

Porsche each receive two. Chevrolet models receiving an award are the Avalanche (tie), Camaro (tie), Impala, Silverado HD and Tahoe. Honda receives awards for the Civic and CR-V; Kia for the Soul and Sportage (tie); Mazda for the Mazda2 and MX-5 Miata; and Porsche for the Boxster and 911. The Lexus LS ranks highest in the Large Premium Car segment and achieves 59 PP100, the lowest average problem level among all models.

6/21/13 3:58 PM


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Independent Offspring Learn Together at Auction Academy By Jeffrey Bellant

Aaron McConkey, a member of the inaugural Next Generation class of the Auction Academy, was skeptical when the program began in 2012. “Do 20 kids with nothing in common – sitting in a conference room together for a weekend – really have anything important to say to each other?” wondered McConkey, a product manager with Auction Edge. But like his classmates, McConkey now raves about the program. The Next Generation/Sons and Daughters group, a twoyear program for the children of today’s independent auction owners, includes 16 students representing 14 auctions and one vendor. Pierre Pons, president of remarketing consultancy TPC Management Co., introduced the plan during the 2011 National Auto Auction Association convention. Pons said the idea came

…ÛÛÝ July 1, 2013

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through conversations with longtime auction operators Bob McConkey and Lynn Weaver. From the beginning, Pons said the networking aspect of the program would be crucial. Emily Barber, a partner in State Line Auto Auction in New York and a member of the class, had already met a lot of the parents of her classmates though conferences over the years. “But I didn’t know their kids who are my age,” she said. “So it’s nice to have someone in my peer group who understands the business.” Barber, a Cornell grad, said at least once a week she’s in contact with others in the class. “It’s extremely beneficial for all of us to have that at this point in the game,” Barber said. “It’s almost like it’s been put in this little kit for us. Here are a lot of people that we’ll need to know in the future. We already know

FIRST CLASS: The Next Generation/Sons and Daughters gathers for a group picture. This

group is preparing to take the lead at several independent auctions across the country.

each other and we’re extremely comfortable with each other.” The classmates have all helped out at their parents’ auctions from a young age. “As a little kid, the auctioneers were kind of my super heroes,” McConkey said. Clint Weaver, of Harrisburg Auto Auction in Penn-

sylvania, remembers his first experiences, from picking up garbage on the lot to mowing the lawn. Barber got her start in the office as a youth, but she joked about the actual work she did. “Looking back on it, I think all I did was move a pile of papers from one place to an-

other,” Barber said. McConkey remembers spending a school vacation in the detail shop, pulling stickers off cable company vans and other commercial vehicles. “That’s how I spent that summer – with numb fingertips,” he said. Continued on page 16

6/24/13 12:38 PM



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Handy was sentenced for one count of bank fraud involving credit card transactions she processed through Peoples State Bank. According to evidence presented at the guilty plea, Handy fraudulently caused Leglue Nissan in Alexandria to issue unauthorized refunds to her own credit cards more than 72 times between July 2009 and July 2011 for a total of $57,894. As office manager, Handy was responsible for handling the dealership’s daily cash deposits, processing credit card transactions and making salary payments.

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6/13/13 2:36 PM

6/21/13 10:52 AM

~ÛÛ�ÛÛJuly 1, 2013


Spoof Site Targets Car Sales You’ve got paper. We’ve got cash.

An alert Boise, Idaho, auto dealer nearly fell victim to an online scam. A man called Maverick Car Co. and said he had $2,500 to send in as the down payment on a car, but first he needed a picture of the car as it sat on the lot. The car wasn’t on the lot, but the strange call and offer of deposit caused Maverick Car Co.’s owner, Freeman Dawson, to investigate. Dawson learned the company was the victim of an overseas spoofing scam. The shakedown is operated with

a website, using the addresses of unsuspecting used-car dealers. The website claims to have great deals on high-end cars. Generally, the cars are listed at thousands below market prices. A fake car sales company, Astoria Motors, was using the company’s physical address to trick shoppers into thinking the cars on Maverick’s lot were representative inventory. The BBB found the website was registered to John Bramblett, in Haney, British Columbia. Haney, B.C., appears to be fictitious.



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~ÛÝÛÛJuly 1, 2013


AG Sues Defunct Dealerships The Ohio Attorney General announced lawsuits against Boasko’s Rt 4 Automall LLC of Sandusky and Buyers Choice Cars of Columbus, charging the used-car dealerships and their owners with violations of Ohio’s consumer laws and seeking full reimbursement to the Title Defect Recision Fund. According to the Attorney General’s lawsuit, Boasko’s Rt 4 Automall entered into numerous consumer transactions and failed to transfer titles as required by Ohio law. The Attorney General’s Office issued $37,465 from the TDR Fund

to resolve 17 consumer complaints against the business. The lawsuit names the dealership and Stacey M. Boasko and Marc L. Boasko, who ran the business, as defendants. According to the lawsuit, Buyers Choice Cars failed to provide titles to consumers within 40 days of the sale and the Attorney General paid $19,415.52 from the TDR Fund to resolve consumer complaints. The lawsuit charges the dealership and its owner, Robert Cordell, with violations of Ohio’s Certificate of Motor Vehicle Title Act.


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July 1, 2013ÛÛ�ÛÛ~‚


Auction Expansion “It appears within the next 45 to 60 days we will have our permit issued and we can move forward,� Miller said. The renovations at the dealeronly auction will be done in two or three phases, he said. First on their list is expanding parking for customers and sales vehicles, and additional storage parking for their fleet vehicles. The expansion would nearly

- Continued from page 1

an in-house transportation company. Miller said he doesn’t foresee any drastic changes in the way they do business once the expansion plans are complete, aside from the fact that there will be space for the auction’s customers and nearly 50 employees. “I hope it’s going to be an added convenience for our office staff, employees and customers,� Miller said. “We’re excited to get moving

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Amy Yost double their parking, with 2,532 forward with it now that the spaces proposed.Once the parking application has been submitted to has been added, they’re going to the conservation district. Hopefully break ground on a new operations we’ll get their final stamp of office and add on to their existing approval.� facility with more office space. The auction is located off “There’s going to be a canopy Interstate 80, and Lamar Township that will cover our five lanes of Secretary Amy Yost said she thinks traffic that our sale-day vehicles the expansion will be a good thing go through – they’ll be able to stay for the township. under a roof to keep them out of any “They’re very meticulous about foul weather,� Miller said. appearances so it’s going to be a Further down the road, they’re nice facility. We know that,� Yost also planning a new facility for their said. “When you get off Interstate repair and reconditioning shop it will IAG_UCN-july1_half.pdf 1 and 6/19/1380, 3:05 PM make our township look the diesel repair shop they keep for nice.�

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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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6/24/13 1:17 PM

~ÂƒĂ›Ă?ÛÛJuly 1, 2013


Auction Academy Of course, since then they have worked in practically every department of an auction over the years. McConkey, Weaver and Barber all went to college before returning to the auction industry. Both McConkey and Barber have siblings in the program. After spending much of their early years in the family business, the Auction Academy has given them a chance to look outside that paradigm. “You know, it’s great to learn from someone outside your parents, such as learning how other people do things and how other auctions operate,� Weaver said. Barber said the program also has given her a chance to take a fresh look at the industry. “It’s been really good to meet the key players in all different facets of the industry,� Barber said. “There’s so many pieces to the (business) that sometimes you’re afraid to ask, ‘what does that company do?’ So this is a great overview.� Through the classroom presentations, auction visits, dinners and other events, the program helps to put faces with names. Pons has been pleased with the feedback. He said industry sponsors have been critical to the program.

– Continued from page 8

Although the original support came from independent auctions and vendors like Black Book, a host of others have climbed aboard. Remarketers, manufacturers and even chains like Manheim and ADESA have lent a hand. McConkey said this Next Generation/Sons and Daughters course comes at a time when family-owned independent auctions are nearing a massive generational turnover. “It seems as if many auction owners and operators are nearing retirement age in the next 10 to 15 years,� he said. The incoming generation is much more technologically literate and having access to this new group is a great opportunity for McConkey. “Frankly, it’s just a little different conversation when talking with your peers (about technology) than an auction owner who’s nearing retirement,� he said. That’s not to say this next generation doesn’t have big shoes to fill. “Both my grandfather and my dad knew how to shake a hand, close a sale and arbitrate a car,� McConkey said. “It was just in their blood. “There’s a fast-paced and creative business sense required to survive in this industry. The generation before us has been innovative in its ability to adapt.�

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Spireon has named Marc Brungger as its new chief executive officer. The transition of the CEO role from Brian Boling to Brungger took effect June 10. As the company’s founder and CEO, Boling led Spireon to become a leading developer of cloud-based GPS tracking and management systems for vehicles, equipment and other mobile assets that enable companies across multiple vertical industries to capture and leverage business intelligence that drives smarter, faster, more profitable business decisions.

TrueCar Names Dealers to Advisory Group

Six automotive dealers from around the U.S. have been named new members of the TrueCar Dealer Council, an advisory group comprised of automotive retailing experts. The TrueCar Dealer Council provides feedback and insights to the automotive pricing information and analysis company, with the goal of improving collaboration between TrueCar and its nationwide network of dealers. The new dealers joining the panel are: Bill Green, president and general

manager of Automotive Avenues, Denver, Colo.; Dani Hart, Internet sales and marketing director, Pohanka Auto Group, Washington, D.C.; Dave Simpson, president of Simpson Buick GMC and Simpson Chevrolet, Orange County, Calif.; Earl Stewart, owner of Earl Stewart Toyota, Lake Park, Fla.; Jeff Gerald, partner at the Gerald Automotive Group of greater Chicago; and Kevin Reilly, owner and president of Alexandria Hyundai, Alexandria, Va. The council consists of 20 members whose dealerships collectively represent 19 states, 40 unique makes and 276 franchises. Members represent different roles within a dealership as well as large dealer groups, regional dealer groups, single-point and familyowned-and-operated stores. Independent chairperson Gary Marcotte, a 30-year automotive industry veteran who was formerly senior vice president of marketing and ecommerce at AutoNation Inc., leads it. The council, launched in April 2012, meets with TrueCar senior management six times a year. The company has taken many actions based on the group’s feedback, including providing more training

to participating dealers, accelerat- Consultant Adds Trainer ing TrueCar’s mobile experience NCM Associates hired two new for both consumers and dealers, and associates to serve its retail automoshaping TrueCar’s television adver- tive clientele. tising campaign. Lee Michaelson and Robert Crocker have joined NCM’s Retail Operations Consulting division unFTC Appoints Consumer Protection der Paul Stowe’s direction. Director With more than 25 years of autoThe Federal Trade Commis- motive retail operations and mansion announced several personnel agement experience, Michaelson is changes, including one that directly making his variable, fixed and adaffects car dealers and related busi- ministration operations expertise nesses. available to auto dealers. In addition Jessica Rich has been appointed to executive and general managedirector of the Bureau of Consumer ment positions with large dealerProtection, having served as associ- ship groups in Kentucky and Pennate director in charge of the Division sylvania, Michaelson also worked as of Financial Practices since January a business broker, assisting compa2012. nies in business planning, exit stratRich was a deputy director of the egies and targeted growth plans. Bureau from November 2009 to Jan- He holds a business administration uary 2012. degree from Temple University and In addition, she has served as the is an NADA Dealer Candidate Acadacting associate director and assis- emy graduate. tant director of the Bureau’s DiviCrocker joins NCM with a backsion of Privacy and Identity Pro- ground in retail automotive mantection, assistant director in the agement, training and consulting. Division of Financial Practices, and Crocker worked in his family’s Ford counselor to the Bureau Director. dealership from 1972 to 1985, beShe joined the FTC as a staff attor- coming the dealer principal there. ney more than 20 years ago, after He has also held positions for auto starting her career in private prac- dealerships and independent contice in New York City. sulting organizations since 1987. She is a graduate of New York Corkers attended Ford Motor University Law School and Harvard Company Institute, Bentley College University. majoring in accounting.

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Lester Howell, president, Professional Car Sales, Clinton, Miss.: “I’ve been in business almost 30 years. I’m 73 years old and I’ve been a member of the Mississippi Independent Automobile Dealers Association the last 25 or 30 years. “I’m now serving as chairman of the board. “I’m president and my wife’s vice president. “We’ll carry 70 or 80 units. “Most of my cars (retail) for $3,000 to $5,000. “I probably sell 20 to 25 per month. “My business is good. The tax season was equal to last year. “It was just slower to develop and lasted longer. There was still some tax money coming in during April. It gave us a good tax year. “(To acquire vehicles), I start with Mid South Auction in Pearl, Miss., which is right next door. “I get a few from (Manheim Mississippi) in Hattiesburg, Miss. I also get some from Dixie Auto Auc-

tion in Grenada, Miss., and I also go to ADESA Little Rock. I go wherever the heck I have to go. “This is strictly buy-here, pay-here. “Our average contract length is two years. The average down payment is about $1,100. “The average model year range is 2003 to 2008. “I carry more domestic than imports. I carry about 95 percent domestic. “(The inventory is) mostly cars, with 25 percent being trucks and sport utility vehicles. The number of trucks and SUVs has increased over the past few years. I don’t know what that’s changed. “I don’t service vehicles here. I don’t do more than change a battery. I send it out to be worked on. “I’m positive about where we’re headed this year. I feel differently from a lot of my counterparts (regarding the business climate). I feel good. “We recently sold a 2004 Pontiac Grand Prix. The car had 173,000 miles on it. We sold that for $5,950.”

Compiled by Jeffrey Bellant UTAH

Sam Russell, president, Automatic Car Credit, Layton, Utah: “We’ve been in business since 1991. “We have five locations. They all sell similar inventory. “Here, our original location, we usually carry 50 to 60 cars. it’s the same amount as last year. In fact, we’ve been carrying the same amount of inventory forever. “Our sources for inventory include a mix of dealers that we buy from and auctions. “At this location, we’re selling an average of 50 to 60 units per month. We work hard at that – selling a lot of cars off smaller inventory. That’s the way I’ve always operated. “The average retail price is probably $10,000. That price hasn’t changed from this time last year. “I do buy-here deals, but most of our retail is subprime. I also write some ‘A’ credit loans through some credit unions, but it’s not a big block of our business. “We’re doing less buy-

here, pay-here deals and more subprime than we have in previous years. “We carry a little bit of everything, but the average model years are 2005 to 2010. “The average mileage is probably 50,000 to 60,000. That’s probably a little higher than this time last year. It seems like the cars are carrying more mileage than they were in the past. “I would say we carry 80 percent domestics compared to 20 percent imports. That (mix) hasn’t changed from last year. “We carry about 50 percent cars and 50 percent trucks/SUVs, which is the same as this time last year. “We do not service our own vehicles. “My average reconditioning costs about $300 per vehicle. That hasn’t changed from last year. “One recent vehicle we sold was a 2007 Ford Expedition. It had 81,000 miles. We got $12,900 for it. “We do very little advertising compared to what I used to do. “I do a little bit of adver-

tising on the Internet with a local media site and that’s it. “We used to have some pretty heavy television and radio campaigns. “But we’ve been in the same location for 22 years. We’re on a very busy main road (with a shopping focus). It’s not just a commuter road. You pay a little bit more to be there. You have your inventory, flags and point-of-sale (marketing). Those types of things are much more beneficial than spending money elsewhere. I’m located near other dealers, so people are down here looking for cars anyway. It’s just a great location. “Plus, (a study) was recently released that said Utah is the No. 5 economy is the nation. Utah’s economy is pretty strong compared to most of the rest of the nation. “So we’re starting to feel a definite recovery from the recession. I would say this is the first year I’ve felt solid about the traction we’re on (since the recession started). “Finding the inventory is still the challenge.” TM

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July 1, 2013ÛÛÝÛÛ~†



Mark Cooley, vice president/sales manager, Nebraska Auto Auction, Lincoln, Neb.: “We’ll have been in business five years in August. “There are three lanes. “We’re running about 350 (units) per week. “Volumes were about 300 to 325 per week last year. (I attribute the change) just to growth in the business. “Sales percentages have been between 55 and 60 percent. That’s down a hair from last year. “As far as bidders, we’re (drawing) between 180 and 200. That’s roughly about the same as last year. “Our bidders are coming from a 200- to 300-mile radius. We’ve got some regular bidders coming from Sioux Falls (S.D.), guys from Witchita, Kan., that are here regularly and we’ve got a strong buyer that flies in from Wisconsin on a regular basis. “For dealers, it’s been a roller coaster ride this year. “Dealer consignment makes up about 95 percent of our volume. That hasn’t

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changed much, although we’ve picked up some repo accounts. “We have a lot of franchise stores that run here on a regular basis. We probably have 20 new-car stores here each week. “We pretty much get 90 percent of the repos from SAC Federal Credit Union. They’re the largest lender for cars in Nebraska. We also have an account with VSC Government. It’s a Flynn Jensen Co. We get all of the Internal Revenue Service (seizures). “Our average price coming across the block is between $4,500 and $5,000. That’s up $1,000. That’s up because we’re getting more franchise dealer (cars). “If a car has low miles and looks the part, it’s going to bring the money. Put it this way, if a car is not fully reconditioned, (then it won’t bring top dollar).”


Clint Weaver, assistant general manager, Harrisburg Auto Auction, Mechanicsburg, Pa.: “The auction has been

Compiled by Jeffrey Bellant around for 30 years. “We have six (physical) lanes, but we actually turn that into 10 lanes (on sale day). We’ll run two lanes in the morning as an ‘as-is’ sale for our in-ops. Then once that’s over, we open all six lanes for dealer consignment. “Then once the dealer consignment sale is over. We open up two or three lanes – depending on how many cars we have – for our lease sale. “Our volumes have been sticking right around the 1,600 to 1,800 range. Probably 1,200 to 1,400 of those are dealer consignment and 300 to 400 or fleet-lease vehicles. “The fleet-lease thinned out a little bit after tax season. Dealer consignment has picked right up with what we lost on the fleetlease side. But even we have seen fleet-lease start to pick back up and some of our main clients’ inventory has started to grow a little bit more. So it does seem like it’s coming back. “Volumes overall are

about the same as last year. “We average about 600 dealers a week in the lanes. We give out at least 800 bidder badges. That’s comparable to last year. “At the end of the month, we’ll run a truck sale and we’ll see a spike in the numbers, just because we’ll draw a different crowd for those heavy-duty commercial trucks. “We’ll see everything from Dually pick-up trucks to bucket trucks and box trucks. We’ll usually run 150 to 200 units a month. “It used to be called an RV sale, because it started with one company that brought in a bunch of motorhomes and RVs. “But we’ve kind of grown it into a heavy-duty truck and equipment sale. “We have a reliable group of dealers from across the country. I believe we’ll get dealers from 42 states. “We also have a few dealers that come from about a half-dozen other countries. We get a lot of export business, just because we’re so close to the Baltimore and

New Jersey ports. “Before July 4, it usually slows down. “But, to be honest, we’re still selling around 65 percent every week. “We’ll also run about 75 in-op vehicles a week. About half of those are dealer consignment and half are fleet-lease. That’s turned into a pretty big crowd. “The average sale price is about $5,000. During the past four or five years, it’s ranged between $4,000 and $5,500. “The whole market is doing better than I’d expect for this time of year. All of the fleet-lease companies are starting to get more inventory than they’ve had for the past couple of years. “The only thing that’s struggling is the high-dollars stuff, like the 2013 lowmileage cars. They struggle a little bit this time of the year since (manufacturers) are coming out with the 2014 models. You’re starting to see a different type of buyer. “You’ll see independent dealers buying those cars when they would normally get beat out by a new-car dealer.”

6/24/13 10:55 AM

‡ÛÛÝÛÛÛJuly 1, 2013


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SONS OF CHARITY: Motorcyclists, who cruised through various towns in Massachusetts as part of ADESA Boston’s 13th Annual Classic Car and Motorcycle Run, hit the auction.

ADESA Boston’s 13th Annual Classic Car and Motorcycle Run cruised through the local Massachusetts towns of Framingham, Weston, Waltham and Newton in this 30-mile police escorted event. “I am fortunate to be able to participate in numerous charitable activities throughout the year, but this one will always remain near and dear to my heart,” said ADESA President and CEO Tom Caruso. “It is amazing to see everyone pull together for a good cause — and it really is a great time with some amazing vehicles.” The event started as a casual conversation more than a decade ago between Caruso, a Boston native, and ADESA Boston General Manager Jack Neshe. “It just gets more and more exciting every year—the level of enthusiasm from our employees, our customers and our community continues to grow,” said Neshe. All proceeds will benefit the Juvenile Diabetes Research Foundation. The event has raised nearly $500,000 over the years.

Manheim Auctions Hold Food Drive Manheim Minneapolis and Manheim Northstar Minnesota recently completed a month-long food drive in which employees and customers at both locations joined forces to support the community. Donations were collected at both the Maple Grove and Shakopee locations, with all proceeds going to two non-profits, CROSS Food Shelf and CAPS organization. Both Manheim locations collected food, hygienic items and monetary donations. There was even a car donated that brought $1,000 at the Manheim Minneapolis TRA Sale, all of which was donated to the drive. There were nearly 2,000 donated

items, and $2,300 in monetary donations. “We’re so proud of our dealers and employees for stepping up and embracing our community with this food drive,” said Carter Theissen, auction manager, Manheim Minneapolis and Manheim Northstar Minnesota. 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:

6/24/13 10:52 AM

July 1, 2013ÛÛ�ÛÛ~


Disconnected Jottings From Tony Moorby... So we’re sending arms to Syria, but it would appear that country’s conflict is not high in the minds of average Americans. There are sufficient concerns for our

all the sectarian entities now vying for leadership? I dare say that more people have met their demise in the last 10 years than those who lost their lives at his

Tony Moorby

Ć€É&#x; Ĺ´Ĺ°Ć?3,É&#x;0.,(É&#x;) É&#x;."É&#x;#(/-.,3 Ć€É&#x; ,-#(.É&#x; ,)'É&#x;ŹŚŚšƑŲŰŰŰÉ&#x;) É&#x;É&#x;É&#x; É&#x; /.)').#0 Ć€É&#x; ,0É&#x;-É&#x;Ɖ-É&#x;2/.#0É&#x;0#É&#x;É&#x; É&#x; *,-#(.É&#x;) É&#x;-&-É&#x;(É&#x;',%.#(! Ć€É&#x; )),3É&#x;Ć É&#x;--)#.-É&#x;ŲŰŰŜƑ*,-(. Ć€É&#x; 1,É&#x;."É&#x;#(!É&#x;) É&#x;)(),É&#x;3É&#x;É&#x; É&#x;   Ć€É&#x; É&#x;&&É&#x;) É&#x;',

own well-being to eclipse worries about what’s going on elsewhere. Americans are war-weary, especially where no clear objective stands in view. Apparently, the costs of recent involvements overseas stand at about $45,000 per household. You have to wonder if anyone does anything like a costbenefit analysis to topple tyrants and despots. Was it easier to keep the activities of Saddam Hussein in focus rather than

hand. If you’re concerned about his development of nuclear weapons and taking innocent lives, then why do we stand and watch as Iranian leaders and ayatollahs do the same thing now? Post-war allied relationships, having spent our soldiers’ lives and unmitigated fortunes, have turned out to be worth less than a leaf blown away on a breeze. Those now pleading for aid would just as soon turn our M-16s back on us, once in

power. Syria doesn’t have oil and so doesn’t command the strategic attention of oil-rich neighbors – not that we’re so dependent any more. The loss of the innocents is of constant concern – or is it? There neither is nor was any disconcert over the genocides in Africa in the last 20 years, where families, villages, tribes and total populations were wiped away and didn’t even make the headlines here. Such ethnic cleansing was considered awful in Bosnia but unreported in Africa. Shame on us. Do we care more now because it’s in the Middle East? Our allied relationships with Israel and Turkey are important and I believe are sustainable regardless of our stance in Syria. When regimes fall, it seems that infrastructures that have been in place for millennia implode under political and religious pressures. Do we really have any right to impose democracies on people


who have lived (hitherto successfully) under a serfdom for the last 5,000 years? This country started with years of war before settling into a comfortable constitution; England and the rest of Europe even longer. Why so much surprise and high dudgeon when we witness the same going on around us now? The use of chemical weapons is a “red line� according to President Obama. I suppose that means it’s OK to use scud missiles on schools and hospitals and villages. It’s difficult to figure out these rationales for what’s ‘acceptable’ and what’s not.

In the meantime, I don’t see what would be achieved by having our military feeton-the-street. Soldiers in uniform and Jeeps and tanks don’t seem to reconcile with today’s warfare. Better to stay out and operate a drone from a control center in Colorado! Or is that the same as using chemical weapons? The results are inevitably the same. If I’ve stirred up lots of questions and confusion then it just goes to prove what a tangled web we’ve woven over the years. It may be better to spend the money here, shoring up our own example of what we consider to be the paragon of political virtue.

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


By Miles Mellor




4 8



Across 1. Auto, in slang 4. XK and XJ 8. Compete 10. Reasons to buy 12. 9-3 was one of their cars 13. Nascar stop 15. Bigger 17. Fix 18. Silver___ truck 21. Nissan model 24. Theft prevention device 25. Period just before 26. 3000 mile change

27. Goes with Mrs. 28. Not new 29. VW coupe convertible 31. It can blow hot and cold 33. Reputation 34. Night beam 37. Saturn roadster 38. ____ spot 39. ____ shock 41. End of the year month, for short 42. In-flight info, for short 44. Type of fuel 45. 200 or 300

13 15





12 14










26 27





1. Popular car color 2. Cadillac model 3. Freelander 2 is one 4. ___ Grand Cherokee 5. Travel 6. Chevy truck 7. Impreza or Forester 8. Pontiac car 9. Stutz-__ Porte sedan 11. Polite way to address a customer 14. Google backed electric car 16. Promotion 19. Approach to close a deal (2 words) 20. Chevy from the 70s 22. VW minivan 23. Bro’s partner 27. Entrepreneur’s degree 30. States 32. Swiss vehicle plate letters 33. Expensive



32 34

33 35






41 44

35. Lotus model, predecessor to the Elan 36. Journey or Viper 37. Auto metal 38. Flat __ truck 39. Time segment, abbr. 40. Hwy. 43. Mena’s state




Answers to the 6/17/13 puzzle D A T S U N







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Please cut out and return this survey before July 30th by fax 586-772-9400 or mail to Used Car News PO Box 80800, St. Clair Shores, MI 48080


Which is your overall favorite auto auction?

Which auto auction has the best facility?

Which auto auction has the best customer service?

Which auto auction has the best reconditioning facility?

Which auto auction has the best ringmen?

Which auto auction has the best cafeteria/restaurant?

Which auto auction has the best scheduled event/sales promotions?

Which auto auction has the best run consignment sales?

Which auto auction has the best run online sales?

Which auto auction has the best auctioneers?


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Questions? 586-772-5200 x101


6/21/13 11:16 AM

Rick Williams Owner, Texas Direct Auto

Mike Welch Owner, Texas Direct Auto


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 or contact an Ally Account Executive. ©2013 Ally Financial. All rights reserved.

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3/21/13 2:32 PM

6/21/13 11:16 AM

Used Car News 7/1/13  
Used Car News 7/1/13