1-800-554-1026 August 3, 2015
ON THE WEB: Orange Is the New Black for Cars
Men’s interest in orange and other nontraditional car colors has increased significantly, while women continue to prefer more mainstream, neutral car colors, according to the second annual Gender and Car Color Preferences Study by iSeeCars.com.
NextGear Capital Eyes National Expansion
NextGear Capital recently announced plans to expand into 30 additional markets across the U.S. by the end of the third quarter.
Shoppers Stay Loyal
Used-car shoppers are brand loyal once they have submitted a lead when online shopping, according to a study by CarStory.
Copart Announces Second Contest
Copart Inc. announced the launch of its second annual Copart Rebuild Challenge, a contest designed for car enthusiasts and auto rebuilders.
Rush - Dated Material
www.usedcarnews.com
Recalls Create Regulatory Hassles Recalls are raising concerns about auto sales from politicians and regulators. The National Independent Automobile Dealers Association, National Automobile Dealers Association, National Association of Minority Automobile Dealers and the American International Automobile Dealers Association were all scrambling to have their members contact federal legislators to prevent an amendment to the pending highway bill. The amendment, proposed by Connecticut Senator Richard Blumenthal, would prohibit the sale or lease of a used motor vehicle that is subject to an open recall until the defect or noncompliance has been remedied. “NIADA is concerned about vehicle safety and wants to see a process that encourages that recalls get fixed,” said Steve Jordan, the NIADA’s executive vice president. “Unfortunately, this amendment does not accomplish that goal.” Meanwhile, General Motors Co. recently disclosed that the Federal Trade Commission is in-
POLITICAL ACTION: Sen. Richard Blumenthal speaks on an issue in Washington. The Connecticut Democrat’s latest target is unfixed recalls.
vestigating’s advertising methods for its certified pre-owned program. The company received notice of an investigation by the FTC on June 3. The investigation concerns certified pre-owned vehicle advertising where
dealers had certified vehicles allegedly needing recall repairs. GM officials said they were cooperating fully with all requests for information in ongoing investigations. They said such investigations could in the future
result in the imposition of material damages, fines, civil consent orders, civil and criminal penalties or other remedies. For more on recalls, turn to page 10. For more on federal regulation, turn to page 12.
Public Dealership Groups Report Higher Used Vehicle Sales Dealer groups reported strong used-car sales in the second quarter. Sonic Automotive Inc. reported record pre-owned sales in the second quarter as the chain ramped up its used-car superstores. Sonic reports quarterly pre-owned retail sales of 30,301 units, up 6.3 percent over the prior year quarter. Sonic retailed 100 pre-owned units per store per month for the quarter on a same store basis. The chain’s Echo Park used-car stores retailed 881 units in the quarter, up 221 units from the prior quarter. Echo Park launched at the end of 2014.
Lithia Motors Inc. reported that used vehicle retail same-store sales increased 16 percent in the second quarter. AutoNation Inc. saw retail used vehicle unit sales increase 9 percent overall and 7 percent on a same-store basis. Asbury Automotive Group, Inc. reported that used vehicle retail revenues were up 15 percent at its stores. Group 1 Automotive Inc. reported that used vehicle retail revenue increased 18.2 percent, primarily reflecting 17.7 percent higher used retail unit sales. U.S. same-store used vehicle revenue increased 16.1 percent, reflecting 14.2 percent growth in unit sales.
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