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July 5, 2010
www.usedcarnews.com
Wholesale Prices Cool Off in June ADESA’s executive vice presTemperatures are heating ident of industry analysis. up, but prices at auction “That’s still among the finally show signs of cooling. highest prices we’ve ever By Ted Craig
“That’s still among the highest prices we’ve ever had.” – Tom Kontos
Auction prices declined every week through June, according to value guide Black Book. “Over the past few weeks we have seen signs that the normal summer slowdown for the wholesale side in sales and prices that occurs around the Fourth of July has arrived a little early,” said Black Book editor Ricky Beggs. Prices remain high at an average above $10,000, according to Tom Kontos,
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had,” Kontos said. Used-car prices started bumping against new-car prices this spring, he said. Manheim economist Tom Webb said June’s decline marked the first movement downward since the start of 2009. There was a slight dip in October following the Cash for Clunkers program. The bigger improvement for dealers is a higher level of inventory. “(Vehicles are) definitely more expensive, but they’re there,” said Kenny Loveless, owner of Northside Auto Sales in Manassas, Va. Loveless struggled finding the right cars at the right price last winter. “I looked out at my lot and thought anybody driving by will think we’re going out of business,” he said. But Loveless refused to overspend, knowing prices would ease after tax season. “People can’t forget it happens every year,” he said. High wholesale prices reflect a strong retail market.
Photo by Jeffrey Bellant VALUE PROPOSITION: AnthonyUnderwood, the president of the National Independent Automobile Dealers Association, speaks to members at the group’s recent convention.
Association President Praises Past Leaders
The new president of the National Independent Automobile Dealers Association wants the group’s members to understand what they’re paying for. Anthony Underwood kicked off his presidency with a speech that mixed humor and a serious message about selling the NIADA’s value to current and potential members. Even though membership rates may increase, dealers still get a great value for their money, Underwood said. “Let’s put our money where our mouth is and support the association,” he said. Underwood also said the association must accept that tomorrow’s used-car business will look different from today. “We’ve got to be able to (utilize) the technology that we have today,” he said, singling out social media as an important part of selling cars. Underwood praised the longtime leaders of the NIADA, saying the group stands “on the shoulders” of people like 1987 National Quality Dealer and past president Bob Lawrence, and past NIADA presidents like Bob Galloway, D.T. Mosley and John Hiatt. “Their purpose stands as strong now as it did then,” Underwood said.
IN THIS ISSUE • Domestics top imports for the first time in quality study. – Page 3
• Auctioneer wins championship on third try. – Page 16
• Finance reform affects most usedcar dealers – Page 4
• Scam artists target auto finance with complex schemes. – Page 18
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