September 15, 2014
ON THE WEB: Carfax Claims Title Washing Rampant
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NAAA Readies for Annual Gathering
According to new research from Carfax, nearly 800,000 used cars on America’s roads might have washed titles. Consumers in New Jersey, North Carolina, Mississippi, California and Georgia are most at risk, but thousands of title washed cars are in every state.
Firm Says Santander Misled Its Investors
A law firm has filed a class action suit on behalf of shareholders after the company announced the federal government is investigating its securitizations.
GM, GM Financial Sign Support Agreement
General Motors Co. and General Motors Financial Company Inc. have entered into a support agreement, reaffirming the critical role GM Financial plays in GM’s success. The agreement provides for leverage limits and liquidity support to GM Financial if needed, as well as other general terms of support.
Rush - Dated Material
Photo by Jeff Kowalsky BE OUR GUEST: Incoming National Auto Auction Association president Ellie Johnson and outgoing president Jack Neshe prepare to host guests at a dinner in Detroit. The pair have been traveling together for the past year. By Jeffrey Bellant
Jack Neshe didn’t realize he’d need to know French to serve as president of the National Auto Auction Association. Neshe, who completes his term this month, said the language barrier came up during a visit to a Canadian
auction in Quebec. “Normally, we send out arbitration diagrams (signage) in English to all of our member auctions,” he said. “We never realized that in Quebec, you can’t hang it in English. It had to be in French. We never knew that.” So when NAAA Executive
Director Frank Hackett got back to the office, he had another sign made up in French and sent it back to the auction, Neshe said. It’s one of those things that showed the NAAA that there’s always something to think about when serving members, he said. Neshe said his time in
leadership has gone by quickly. “Everyone said it would go by fast,” he said, “but it actually went faster than I expected.” The NAAA structure has the president travel with the president-elect throughout the year to make for smooth transitions.
Wholesale Prices Continue to Ease Down from Historic Highs Wholesale used vehicle prices declined 0.7 percent in August, according to Manheim. This was the fourth consecutive monthly decline and brought the August Manheim Used Vehicle Value Index reading to 121.8, down 0.4 percent from a year ago. the Index adjusts prices for mix, mileage and seasonality. Manheim chief economist Tom Webb said the movement reflects a reversion to trend levels after an extended period of exceptionally strong pricing, as well as increased supply and lower retail demand. Volumes sold at auction remained low in August, and average mileage slipped back below 40,000. With new
vehicle sales into rental up 10 percent in August, some increased flow back into the wholesale market is inevitable, whether it is via the traditional auction process or some other channel. Mileage and seasonally adjusted prices for major market classes showed only pickups and vans (especially cargo vans) up year-over-year. Luxury cars remained the segment with the largest decline in wholesale pricing over the past year, but the pace of decline was in line with the overall market. The strongest pricing remained in the $13,000 to $15,000 range, with the weakest in the $9,000 to $10,000 range.
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Experts Split on State of Auto Finance Some Warn of Lower Scores DETROIT (AP) _ Big discounts. Six- or seven-year loans, in some cases to buyers who would have been turned down in the past. As the auto industry strives to sustain its postrecession comeback, car companies are resorting to tactics that some experts warn will lead to trouble down the road. Vehicle discounts have risen 5.5 percent from a year ago. More than a quarter of new buyers are choosing to lease, a historically high percentage. Auto company lending arms are making more loans to people with low credit scores. The industry is adding factory capacity. And the average price of a car keeps rising, forcing some customers to borrow for longer terms to keep payments down. Annual auto sales in the U.S. should top 16 million for the first time in seven years. But the pentup consumer demand that has driven sales is ebbing. Sales are predicted to grow 5.5 percent this year, the slowest pace since the financial crisis. The big discounts and other steps eventually should help push sales above 17 million, most experts say. But Honda Motor Co. U.S. sales chief John Mendel last week scolded competitors for using â€œshort-termâ€™â€™ tactics such as subprime loans, 72-month terms and increased sales to rental car companies to pad their sales. â€œWe have no desire to go there,â€™â€™ said Mendel, whose companyâ€™s sales through July have fallen 1.3 percent, trailing the industry. Some on Wall Street see a price to pay. â€œIt could be a disaster later on,â€™â€™ says Morgan Stanley analyst Adam Jonas. â€œWeâ€™re clearly robbing Peter to pay Paul.â€™â€™ He sees sales growing to an annual rate of 18 million in 2017 â€“ then sinking to 14 million a year later. That will mean factory closings, restructurings, and thousands of job cuts just for companies to break even. Not all forecasts are that dire and no one â€“ not even Jonas â€“ is predicting a re-
peat of billion-dollar losses and cars piling up on dealer lots. Automakers have cut costs and are better positioned to handle a downturn than they were in 2008
23 percent in 2008, according to LMC Automotive. Dealers can offer longer loans on expensive cars, making the payments seem reasonable. But those loans
and 2009. Still, easier credit brings back not-so-fond memories for at least one auto dealer. â€œIt just seems like 2007 all over again,â€™â€™ said veteran Toyota dealer Earl Stewart of North Palm Beach, Florida. â€œThe credit ease with which people are financed is as liberal and loose as it ever was.â€™â€™ Among the numbers that concern some experts: Ć€É&#x;ĆŞĹ˛ĹťĹˇĹ°Ĺ˛ĹźÉ&#x;0,!É&#x;#-)/(.É&#x; per new car through July. Theyâ€™re heaviest in two segments: Midsize cars (up almost 21 percent through July) and compacts (up 10 percent). Automakers need to move the cars because a lot of factory space is committed to building them. Ć€É&#x; ĹąĹ˛ĹşĹˇÉ&#x; *,(.ĹźÉ&#x; "É&#x; 3,Ć? over-year increase last quarter in auto loans to â€œDeep Subprimeâ€™â€™ buyers _ those with credit scores lower than 550. Loans to â€œsubprimeâ€™â€™ buyers (credit score lower than 620) rose 5.3 percent, according to Experian. Combined, both are just over 12 percent of all auto loans. Those with lower credit scores generally have a higher default risk. Ć€É&#x; ĹłĹ˛É&#x; *,(.ĹźÉ&#x; ,(.!É&#x; of auto loans that are 72 months or longer, up from
are loaded with interest early on, so it takes a long time for buyers to pay principal and build equity for a tradein, says Greg McBride, chief financial officer at Bankrate.com. Ć€É&#x; Ĺ˛ĹśÉ&#x; *,(.ĹźÉ&#x; ,(.!É&#x; of sales that are leases, up from 18 percent in 2008, according to LMC. A flood of expiring leases in three years could depress usedcar prices, hurting new car sales. Ć€É&#x; ĹˇĹ°É&#x; *,(.ĹźÉ&#x; "É&#x; #(Ć? crease last quarter in auto repossessions, according to Experian Automotive. Sixty-day delinquencies are up 7 percent. Still, both are below 1 percent of all auto loans. Karl Brauer, senior analyst for Kelley Blue Book, sees trouble in the juicy discounts. In 2007, spending on incentives was just under 9 percent of the average sales price for a vehicle. That dropped to around 8 percent in 2012 and 2013. Itâ€™s back up to 8.4 percent and likely will rise toward 9 percent later in the year, he says. Based on an average sales *,#É&#x; ) É&#x; $/-.É&#x; )0,É&#x; ĆŞĹłĹ˛ĹťĹ°Ĺ°Ĺ°ĹťÉ&#x; the additional discounts would cost the industry al')-.É&#x;ĆŞĹľĹşĹ˛É&#x;#&&#)(É&#x;*,É&#x;3,Ĺş
Others See Stability thatâ€™s due in part to a large pool of people with damNumerous media reports aged credit. Carlson said many conclaim a bubble is forming in subprime auto finance. sumers saw their credit Facts, however, tell a scores fall due to issues with mortgages and other challenges. The credit score of most subprime borrowers today remains above 600, Carlson said. And while growing, subprime finance only accounts for 30 percent of auto credit, compared with 40 percent before the downturn. Some finance companies have become more aggressive in the past year. Ratings agency Fitch reports lower FICO scores across several lenders in its ratings portfolio. Fitch sees this as more of a normalization of auto credit more than a bubble. Fitch reports that many creditors are actually seeing better results despite different story. increased access to credit. Experian Automotive reThe average net loss ports subprime lending is rate for lenders covered in actually decreasing. Fitchâ€™s report was 0.6 perThe average amount fi- cent in the second quarter, nanced by subprime con- down from the fourth quar-/',-É&#x; &&É&#x; .)É&#x; ĆŞĹąĹśĹťĹľĹ´ĹśÉ&#x; #(É&#x; ter of 2013 but up from the the second quarter from second quarter of 2013. ĆŞĹąĹˇĹťĹ°Ĺ˛Ĺ°É&#x;#(É&#x;."É&#x;-)(É&#x;+/,Ć? Carlson said many peoter of 2013. ple hear â€œsubprimeâ€? and Used deep subprime fi- immediately think of the ((#(!É&#x; &&É&#x;.)É&#x;ĆŞĹąĹ´ĹťĹłĹľĹ¸É&#x; ,)'É&#x; subprime mortgages that ĆŞĹąĹľĹťĹąĹąĹłÉ&#x;#(É&#x;."É&#x;-)(É&#x;+/,Ć? played a major part in the ter of 2013. last recession. â€œAlthough weâ€™ve seen Mortgages are not auto relative stability in the au- loans, however. tomotive industry the past Housing is viewed as an several years, lenders are investment in an appreciatstill showing cautionary ing asset. Cars are expected signs when lending to the to start losing value as soon subprime market and keep- as they leave the lot. ing their risk at manageâ€œNobody buys a car on able levels,â€? said Melinda a loan with the idea that Zabritski, senior direc- theyâ€™ll flip it,â€? Carlson said. tor of automotive finance Consumers today put a for Experian. higher priority on making Equifax recently con- auto payments despite this ducted a study that drew difference, Carlson said. on data from 210 milThatâ€™s due in part to the lion consumers in the ease of losing a vehicle as firmâ€™s database. compared to a house. The study shows subCarlson said the efficienprime lending as stable cy of the repossession and since 2012 with little rea- remarketing process makes son to expect a change. auto credit less risky. Equifax deputy chief Carlson said he would economist Dennis Carlson worry if there was a spike said while more subprime in write-offs and delinconsumers have received quencies, but for now unfinancing in the past year, derwriting remains strong. By Ted Craig
9/8/14 5:18 PM
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NEWS BRIEFS Santander Consumer Makes Secondary Offering
Santander Consumer USA Holdings Inc. announced the public secondary offering of 10,047,954 shares, or 2.88 percent of its outstanding common stock, by Sponsor Auto Finance Holdings Series LP, an investment vehicle jointly owned by investment funds affiliated with certain entities, including Warburg Pincus LLC and Kohlberg Kravis Roberts & Co. L.P. Upon completion of the offering, Sponsor Auto will own approximately 1.18 percent of the common stock of SCUSA. Santander Consumer USA Holdings Inc. will not receive any proceeds from this offering. J.P. Morgan is acting as the sole underwriter for the offering.
App Provides Auction Sounds
attendees access the online bidding platform for auction sites using OnLine Ringman technology. The system automatically detects that the iPhone is enabled with AuctionEar and directs the user to a mobile interface that is audio/video enabled. AuctionEar includes separate audio and video controls, giving the user the ability to watch or listen to the auction, or both, enabling the user to conserve and manage his/ her data plan. Other features include access to â€œon the blockâ€? vehicle information, the option to view vehicle run lists, and the userâ€™s ability to switch smoothly and easily between auction lanes. The app supports 3G, 4G and Wi-Fi. Auction Ear is currently in development for the Android platform and will be available for Android smart phones soon.
Xcira has announced the release of a mobile app for the iPhone Ally Adds Online Tool Ally Financial launched a new tool called AuctionEar, which adds instantaneous audio and video to to help consumers decide whether the companyâ€™s mobile bidding buying or leasing might be their best platform. Available from the Apple iTunes C R O S S WO R D by Myles Mellor store, the app brings the enthusiasm and excitement of the auction PAGE 37 to life with an enhanced audio and video interface. Carolina_UCN Sep1-Autoberfest.pdf After the AuctionEar app has been 1 8/18/14 1:56 PM downloaded to the iPhone, auction
option when shopping for a vehicle. Available for free on Allyâ€™s website, the interactive buy or lease tool will help arm consumers with the right information to start the vehicle financing process. The tool leads consumers through five simple questions on their automotive and driving needs, including how many miles they drive annually, down payment intentions and maintenance, as well as preferences on how long to keep a vehicle. After completing the questions, consumers will learn which option may best fits their needs - buying, leasing or the Ally Buyerâ€™s Choice product.
Consumers can explore additional information on these financing options, or take what theyâ€™ve learned and head into the dealership.
Creditor Joins DealerCenter
Western Funding Inc. is now active on DealerCenter. This integration makes Western Funding financial products more accessible to dealerships by offering instant approvals and the ability to change the structure of the deal to meet the customerâ€™s need. DealerCenter is a web based dealer management system catering to independent dealerships.
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 www.usedcarnews.com 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: Ed Fitzgerald, Jenny King, Sheila McGrath 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 â€”â€”â€”
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.
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9/8/14 4:21 PM
Dealer Admits to Selling Hurricane Sandy Cars A New Jersey used-car dealer pleaded guilty to using fraudulent vehicle titles to sell cars damaged in Hurricane Sandy. A suspended Motor Vehicle Commission technician who helped him obtain the fraudulent vehicle titles also pleaded guilty in the criminal scheme, and charges are pending against a former car salesman at the dealership. Jonathan Olin, the operator of D&D Auto Sales in Old Bridge, pleaded guilty to an accusation charging him with second-degree theft by deception. Under the plea agreement, the state will recommend that he be sentenced to three years in state prison. Olin must forfeit his license to sell vehicles in New Jersey for a period to be determined by the court, and he must pay full restitution to the victims. In pleading guilty, Olin admitted that he orchestrated a scheme in which fraudulent titles were obtained for eight flood vehicles, seven of which were then sold to customers by Pinky N Brain Corp NJ, doing business as D&D Auto Sales. Co-defendant Jessie Dinome, who formerly worked as a technician at the Freehold Motor Vehicle Agency, pleaded guilty to an accusation charging her with third-de-
gree tampering with public records or information. The state will recommend that she be sentenced to up to 364 days in the county jail as a condition of a term of probation. Dinome must forfeit her state job and will be permanently barred from public employment. A former car salesman at D&D Auto Sales, Jacob Douek, faces pending charges for allegedly deceiving customers about the flood vehicles. He is charged with conspiracy to commit theft by deception (2nd degree), theft by deception (3rd degree) and conspiracy to tamper with public records (3rd degree). A woman who worked as a clerk at the dealership, Christina Farese, also was charged in the case, but she has applied to the court to have the charges dismissed through participation in the pre-trial intervention program. The defendants carried out the fraudulent scheme from February through July 2013. The dealership acquired eight vehicles at auction that sustained flood damage during Superstorm Sandy. The eight flood vehicles acquired by Pinky N Brain were all insured by the same company, which paid claims on them as total losses after Sandy. The insurance company had the vehicles auc-
SOAKED: Workers clean up after Hurricane Sandy in 2012. A dealer who was the subject of an ABC News exposé’ recently admitted to selling flood cars without disclosure.
tioned without titles under “bills of sale,” designating them as to be used “for parts only.” At Olin’s direction, Dinome – allegedly with assistance from Farese – improperly utilized the Motor Vehicle Commission (MVC) computer system to create false “clean” titles for the vehicles. The signatures of the prior owners were forged to transfer the titles to D&D. Dinome was suspended without pay by the MVC after she was
charged on Oct. 28, 2013. D&D sold seven of the vehicles to customers using the fraudulent clean titles, without disclosing that the vehicles had been damaged in Hurricane Sandy. The seven vehicles were sold by D&D for a total of approximately $86,000. Douek, the salesman, allegedly misled at least one customer about a flood vehicle and about adverse information that was in the vehicle’s Carfax report.
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Expert: Help Employee with Addiction By Sheila McGrath
When a top-notch salesperson falls into the grip of addiction, many dealership owners will want to give them the benefit of the doubt. They’ll send the employee to a 12step program like Alcoholics or Narcotics Anonymous in hopes of bringing them back to their former level of star performance. But what if they slip a second time – or a third? At what point does an employer let go of an otherwise good salesperson who can’t get over an addiction? According to Jay Schrader, admissions director and interventionist with The Recovery Team in North Palm Beach, Fla., there are particular aspects of the sales profession that might lead someone down the path toward addiction. “You’re working over 40 hours, you’re always on the job, and you take the job with you,” Schrader said. Drinking or drugs might help salespeople feel like they’re better able to socialize, he said, and they might be in the habit of handing out their cards in a bar setting. But whether the employee is exemplary or average, everyone deserves a chance to turn their life around, he said. “If you have a good salesman – he’s met his quota or goes way past or beyond what the job calls for – and he runs into a problem, you do want to get them into local 12-step meetings,” he said. “Sit down and talk with them, do a small intervention. Tell him ‘You mean this much to us. Can we give you some time off to go to meetings?’” Schrader said he’s seen car dealerships where they’ve had five or six people in treatment at the
same time. “They hold their own meeting at the car dealerships,” he said. Some employees respond well to the 12-step approach, experience a spiritual awakening and recover. But others will continue to relapse, attending meetings only sporadically or quitting them altogether. There are some telltale signs when that is happening, Schrader said. They might avoid eye contact and spend a lot of time looking down. “If you’re not going, you really get that guilty feeling, and it’s hard to look someone in the face,” he said. “There’s a lot of lying going on.” If a 12-step program isn’t working for a valuable employee, sending him or her to a 30-day stay in a rehab facility might get to the root of the problem, he said. If the alcohol or drug addiction is affecting the person’s job, it’s probably affecting their home life, too, and sometimes it’s good to have an interventionist come in and talk about other things in life that might be causing the problem, he said. It’s important, when the 30 days are up, to let the salesperson re-acclimate gradually to the job, he said. They need a chance to start a different life. “Let them work back into it, let him work his self-esteem back up,” he said. “If your self-esteem is low, you’re not going to be able to sell, you’re not going to be at the top of your game.” But if the employee continues to slide back into addiction even after a 30-day stay in rehab, it might be time to let them go, Schrader said. “Be supportive, no matter what,” he said. “That doesn’t mean you have to keep them, but you have to be supportive.”
Feds Say Missing Miles Mean Fraud A Missouri used-car dealer has been indicted by a federal grand jury for a mail fraud scheme in which he sold dozens of vehicles with fraudulent titles that greatly underreported the actual mileage of the vehicles. Kenneth W. Smith, owner of Cars Unlimited in Lebanon, was charged in a seven-count indictment that claims he obtained fraudulent replacement titles for dozens of vehicles between February 2010 and Nov. 7, 2011. Smith allegedly applied for and received 54 replacement titles from the state of Missouri, each of which underreported the vehicle’s actual mileage between 95,000 and 209,000 miles. Smith allegedly resold these 54 vehicles at auto auctions using the fraudulent replacement titles. These 54 vehicles were sold for
an aggregate total of approximately $346,450. Beginning in February 2010, when Smith purchased vehicles at auto auctions, the vehicle titles he received showed each vehicle’s actual mileage. After purchasing a vehicle, Smith allegedly submitted an “Application for Missouri Title and License” seeking a replacement title for the vehicle. Although Smith sought a replacement title, the indictment says, he in fact possessed the original title for the vehicle. In each of those instances, Smith allegedly forged the signatures of the previous owner of the vehicle. The state of Missouri prepared a replacement title that was mailed to Smith at Cars Unlimited. The federal indictment charges Smith with seven counts of mail fraud.
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PAGE 8 - NAAA
Second Generation Auction Exec Set to Lead Association (Ellie Johnson, general manager of Manheim North Carolina, is the incoming president of the National Auto Auction Association.) UCN: Tell us a little bit about your background in the business. Johnson: We started out as just an auction company – a real estate/equipmenttype auction. My father, Kenneth Aycock, actually built the auction in 1984. I started working there in 1986. I became GM in 1997. The rest is history. I’ve been there ever since. We were part of the ADT group and Manheim bought it in October 2000. I also have a real estate broker’s license and a background in accounting. UCN: How does your varied experience/education in these different areas help you in the industry and leading the NAAA? Johnson: I think any type of business education you have as you get into this industry certainly benefits you. One thing that I really like is that we started out as an independent auction, then we were part of a small group and now with Manheim, certainly, we’re a part of a much larger group. So it’s given me the perspectives of all these different areas. I believe that will help me in representing the NAAA. So it will help me represent each individual location. UCN: At one time the industry used to be these big chains and then the independents. Now the chains are smaller and some independents have formed their own coalitions – a la ServNet. How does that affect how you represent those different interests? Johnson: I don’t think that makes a big difference. We still represent those auctions as an association in the same way. Being part of our association still means you have that quality (NAAA) symbol. We still have to hold high the same ethics. Every member location does that, whether it’s a Manheim, ADESA or small independent.
ÛÛÝÛSeptember 15, 2014
UCN: Do you get feedback from different auction owners/general managers as you’ve moved up in leadership? Johnson: Yes, I do. For instance, I’m very good friends with Henry and Patty Stanley of Carolina Auto Auction. I talk with Henry and we talk about the days when our location was an independent. But we also talk about business from the perspective of the association. So that’s nice. UCN: Could you talk about your involvement in dealer associations, including the Carolinas Independent Automobile Dealers Association and the National Independent Automobile Dealers Association? Johnson: Well, I do it first because they (dealers) are our customers. Those customers have been coming to our auction for 30 years, so you want to be part of their organizations and what they support. Also, (I want to know) if there are issues that arise in the industry from a state level or national level that affect our dealer base, because those issues will also affect our auction locations. UCN: You’ve always been involved in bringing members into those groups, winning Crystal Eagle awards for your efforts. Johnson: It’s always been important. We have done multiple membership drives at the auction. In North Carolina, they have continuing education requirements for dealers. So what we currently do now is have a continuing education class for dealers at our location. We host it for the Carolinas IADA. It also gives us an opportunity to be in front of some dealers who might not already attend our location. UCN: As dealers address more challenges on the legislative/regulatory front, are there things that the auction industry can do to help? Johnson: I’m hearing more and more – in the Carolinas especially – that it’s important to make sure the dealers are getting educated.
Photo by Jeff Kowalsky GOOD TIMES: Jack Neshe celebrates the end of his tenure as NAAA president with incoming president Ellie Johnson.
For the states where there isn’t a continuing education requirement, maybe the auctions could sponsor some events that would help dealers. They wouldn’t have to teach a class, but sponsor (or provide a location for classes). Also, we can help keep dealers informed when we learn about (legislative/ regulatory) issues. UCN: When you first became NAAA vice president, you had mentioned issues that were important to you: the need for a uniform commercial title code, legislative advocacy; and technology at auctions. Are these still concerns? Johnson: Those things are still important. On the technology side, we should be able to get AutoGrade out to all the member locations by the end of this year. The association also purchased Kink or Bend LLC (an IT company specializing in creating online resources for automobile structure types). That certainly helps our association and customers. As far as the uniform title code, it is the white whale. I think every day at an auction you see the need for having that uniform title. It seems like every day we have title issues that would complete-
ly go away if we had (a universal title). I want to say we’re closer. Hopefully with the association, along with Manheim and ADESA, we can continue to push ahead with this. UCN: What are the other challenges that you see the industry facing right now? Johnson: One thing is the importance of getting more information up online as soon as possible (for sales), whether it be with the dealer base or even the commercial units. We want to get those cars in earlier and make sure condition reports get done (more quickly) and information is quickly available to dealers. UCN: A few years back, annual car sales dropped to 10 million, but now they seem to be coming back to pre-recession levels. What are you seeing in the lanes? Johnson: We’ve seen a steady growth of vehicles at our location. We’re hearing more about off-lease units and volumes coming back this year. All of our commercial consignors are saying that we’re going to see more volumes. UCN: What are some of the goals you have for the upcoming term?
Johnson: As I’ve said, getting the AutoGrade out to all of the auctions by the end of the year is important. We want to continue to build relationships with the NIADA, the National Automobile Dealers Association and the National Auctioneers Association. It’s also going to be important to build up the PAC and (have a big turnout) at the NAAA Day on the Hill (next spring). UCN: Have you received any advice from your predecessors? Johnson: You can’t print it (laughs). But, seriously, No.1 is to enjoy this time. Get out and see the other locations and members. Show the members that the association appreciates their membership in the group. I think that’s the biggest thing. Even in the past year, I’ve been able to travel with Jack Neshe (outgoing NAAA president) and visit auctions that the NAAA has never visited before. The response has been overwhelming. They really appreciate us taking the time to come out and visit their locations. We even had a dinner at an area with (representatives) from a Manheim, an ADESA and an independent sale at the same time. That was really nice.
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9/8/14 5:24 PM
to our very own Ellie Johnson, for being elected as the 2015 NAAA President.
General Manager, Manheim North Carolina
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9/5/14 2:46 PM
Fitch Expects Strong Residuals Used-vehicle values will continue to decline moderately from their recent untenable highs. However, auto lease ABS will continue to perform within expectations and ratings will be stable, according to Fitch Ratings. Fitch expects used-car values to further weaken as off-lease and fleet volumes rise and sales of new vehicles continue to be strong. Fitch also believes the robust loss protection in auto lease ABS (including continued realization of residual gains) will continue to support stable ratings, despite expected market pressure. Securitized residual maturities have been higher in 2014 than any year since the last recession. March marked the highest level of securitized residual maturities ever recorded by the Fitch Index at over $525 million. As the new vehicle annual sales rate hit its highest level since 2006 this July, vehicle trade-ins entering the secondary market increased. Additionally, incentive spending remains high. Despite these trends, auto lease ABS is still generally producing residual value (RV) gains. Fitch’s Auto Lease residual index gained 5.76 percent through July 2014, down from gains of 8.38
percent in June and 12.02 percent a year ago. July marked the fourth consecutive month of declining gains for the index, reflecting the recent softening in used vehicle values. Residual retention has been mixed among vehicle segments. Luxury gains in the Fitch RV index declined dramatically in July to 2.77 percent, down from 17.08 percent a year ago. Notably, the car segment is experiencing pronounced price pressure, particularly within the luxury space. Wholesale performance of larger vehicles has been much better, particularly for the pickup segment. Fitch remains cautious and expects residual values to decline further in the near term as dealers receive new models and discount older ones in the fall. Fitch expects that pressure to be evident in the coming months and securitized residual maturities coming off lease to remain high through 2015. Despite some negative trends discussed, ratings performance is not expected to be impacted in 2014. Fitch has upgraded or affirmed all outstanding rated bonds since 2008, when a single class of notes was downgraded.
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9/5/14 11:19 AM
Classics See Strong Summer
67 Years Can’t Be Wrong.
TRASH OR TREASURE?: Crowds in Monterey, Calif., check out a 1961 Aston Martin DB4 with dried grass under the open hood. It went for $290,000 at the RM Auctions sale. By Jenny King
MONTEREY, Calif. – Four major classic car auctions had sellers, bidders and the just-plain-curious scurrying around Monterey, Carmel and Pebble Beach, Calif., in August checking out cars and, in some cases, their bank accounts. Combined sales this year from the Bonhams, Gooding & Company, RM and Mecum auctions were in excess
of $389 million. Competition among the auctions with numbers of exotics and luxury cars to offer, specifically Bonhams, Gooding & Company and RM Auctions, is stiff. London, England-based Bonhams handled the top-selling vehicle for this 2014 season: a 1962-63 Ferrari 250 GTO Berlinetta, which brought $38,115,000. Continued on page 14
9/8/14 4:26 PM
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Bonhams reported a number of world sale records including models from Maserati, Mini, Napier, Rolls Royce and Speedwell. The company said sales in Carmel totaled $108 million; 117 cars were offered. At RMâ€™s two-day sale in Monterey, bidders from 29 countries vied for favorites among the 118 cars available. RM said 35 vehicles broke the $1-million mark and three exceeded $10 million. The top seller for Ontario-based RM was a 1964 Ferrari 275 GTB/C Speciale: $26,400,000. This yearâ€™s Gooding auction realized more than $106 million, with 107 of 121 lots sold. Gooding reported an average price of $990,699 per car, with 30 cars selling for over
$1 million. The top seller at the companyâ€™s Pebble Beach tent was a Ferrari 250 GT SWB California Spider. It brought, including buyer fee, $15,180,000. Mecumâ€™s three-day sale moved over 700 vehicles plus boxes of automobilia and generated a sales hammer total of $32,148,873. Top seller? Another Ferrari: this one a 1961 250 Series II cabriolet which brought $2,250,000, One of the most beautiful and interesting cars for sale at Mecumâ€™s Hyatt Hotel site was a blue-green 1938 Delage Aerosport Coupe with LeTourneur & Marchand body work. The seller was looking for at least $3 million; best bid on the Delage was $2.3 million.
State Says Dealer Withheld Taxes The Florida Department of Revenue recently arrested a used-car dealer for failing to pay sales tax. Jorge Edwin Toro, owner of Smart Choice Motor LLC, is charged with stealing more than $36,000 in sales tax he collected from customers, but failed to send to the state. If convicted, he faces up to 15 years in prison and up to $10,000 in fines, as well as possible repayment of stolen
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Copart Salutes Rebuilder Copart, Inc. recently announced the top three winners of its firstever Copart Rebuild Challenge. The contest was designed for car enthusiasts and auto rebuilders to show how they restored, customized or rebuilt a vehicle. Copart members from across the country submitted their rebuild projects for a chance to win the $10,000 grand prize. A panel of Copart judges narrowed the contest entries to 10 finalists, and then the public voted to select the top three winners. Entrants ranged from first-time car enthusiasts to professional rebuilders. The $10,000 grand prize went to John Redshaw from Pennsylvania. In his video, Redshaw described how he turned a damaged motorcycle into a customized threewheeled bike. Redshaw has rebuilt a handful of vehicles over the years, and today, many of his family members drive vehicles he repaired. Redshaw has been a Copart member for three years and said he plans to use some of his prize money to purchase his next big rebuild project. â€œWe were really impressed with the customizations Redshaw made to the bike he entered into the con-
test,â€? said Copart chief marketing officer Matt Burgener. â€œHe took a regular bike and transformed it into something special. Iâ€™m not surprised that the public agreed.â€? At a young age, Redshaw was in a motorcycle accident and lost functionality in his left arm. The three wheeler he rebuilt for the Copart contest was the first bike he had been on since his accident. He modified the bike to allow him to ride without using his left arm. â€œJohn is a perfect example of how our buyers understand the possibilities of used or damaged vehicles,â€? Burgener said. â€?Itâ€™s very inspiring.â€? The second place winner is Chad Lennert of Indiana who rebuilt a Subaru WRX. He received $2,000. The third place winner is Joshua Meeks of Georgia who rebuilt a BMW Z3. Meeks earned one year of Copart Premier Membership. â€œWe had an overwhelming response to the Copart Rebuild Challenge,â€? Burgener said. â€œOur members fixed up everything from luxury cars to boats and motorcycles. It was wonderful to see how talented our customers truly are.â€?
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CarMax Adds Stores, Staff
CarMax Inc. celebrated its first two stores in the Portland area, which are the company’s first stores in Oregon. CarMax’s Clackamas store is now open at 13750 SE Johnson Road. A second Portland area store in Beaverton is set to open at the end of September at 9405 SW Cascade Avenue. Each store will stock more than 250 used vehicles. During the stores’ grand opening celebration, CarMax announced that The CarMax Foundation will invest approximately $85,000 into building a playground in the Cully community. The playground will be built in the spring of 2015 through a partnership with the Habitat for Humanity Portland/Metro East, the Helensview Heights Home Owners’ Association and KaBOOM!, the national nonprofit ensuring that all kids get the balance of play they need. “Giving back to the communities in which we live and work is an important part of the CarMax culture,” said CarMax CEO Tom Folliard. “Our new Portland stores are no exception. “These stores will provide residents with the unique CarMax experience when they search for their perfect vehicle, and the new
playground will provide children the needed space to be healthy and active.” The CarMax Foundation also announced $10,000 grants to both the Boys & Girls Club of Portland Metropolitan Area and the YMCA of Columbia Willamette. These grants came at the recommendation of local CarMax associates. Meanwhile, CarMax continues to prepare for growth. The used-car superstore chain is recruiting for more than 1,000 positions in locations across the country. The majority of open positions are in service operations (detailers, experienced technicians) and sales, with additional positions in purchasing and the business office. Some of the areas with a large number of service job openings include Sacramento and Bakersfield, Calif.; Cincinnati; Atlanta; Lancaster, Penn.; and Huntsville, Ala. Approximately 75 positions are for the company’s new store in Reno. This is the third CarMax location in Nevada. The new Reno store, which is more than 45,000 square feet, is located at 35 Auto Center Drive. It is scheduled to open in November.
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Your source for quality, value, selection: Chase. A broad selection of pre-owned vehicles from an industry leader. October 2014 Chase High Lines, featuring Jaguar Land Rover Financial Group
Chase ADESA Boston October 3, 10, 24, 31 508-626-7000
Columbus Fair AA October 1, 8, 29 614-497-2000
Manheim New Orleans October 8 985-643-2061
ADESA Charlotte October 2, 16, 30 704-587-7653
Manheim Atlanta October 2, 15, 16, 30 404-762-9211
Manheim Orlando October 7, 14, 21, 28 800-337-8491
ADESA Cincinnati/Dayton October 28 937-746-4000
Manheim Baltimore Washington October 21 410-796-8899
Manheim Pennsylvania October 2, 3, 16, 17, 30, 31 800-777-2053
Manheim Dallas October 8, 22 877-860-1651
Manheim Phoenix October 2, 9, 16, 23, 30 623-907-7000
ADESA Golden Gate October 14, 28 209-839-8000 ADESA Houston October 1, 15, 29 281-580-1800 ADESA Indianapolis October 14, 28 800-925-1210 ADESA Kansas City October 14, 28 816-525-1100 ADESA Lexington October 23 859-263-5163 ADESA San Diego October 16 619-661-5565 ADESA Tulsa October 10 918-437-9044 America’s AA-Chicago October 1, 29 708-389-4488 Brasher’s Salt Lake AA October 7 801-322-1234
Manheim Denver October 22 800-822-1177 Manheim Detroit October 2, 16, 23, 30 734-654-7100 Manheim Fredericksburg October 9, 23 540-368-3400 Manheim Milwaukee October 8, 22 262-835-4436 Manheim Minneapolis October 15 763-425-7653 Manheim Nashville October 1, 8, 29 877-386-5004
Manheim Pittsburgh October 22 724-452-5555
ADESA Boston October 3, 31 508-626-7000
Manheim Dallas October 8 877-860-1651
Manheim Orlando October 21 800-337-8491
ADESA Golden Gate October 14 209-839-8000
Manheim Milwaukee October 22 262-835-4436
Manheim Pennsylvania *October 2, 16, 30 800-777-2053
Manheim Atlanta October 15 404-762-9211
Manheim Nashville October 1, 29 877-386-5004
Manheim Riverside October 23 909-689-6000
*Only Jaguar and Land Rover vehicles will be sold on October 2 and October 30. All other high lines, excluding Jaguar Land Rover, will be offered on October 16.
Mazda Capital Services ADESA Boston October 10, 24 508-626-7000
Manheim Detroit October 2, 16, 30 734-654-7100
ADESA Golden Gate October 28 209-839-8000
Manheim Fredericksburg Manheim Pennsylvania October 9 October 3, 17, 31 540-368-3400 800-777-2053
ADESA Kansas City October 14 816-525-1100
Manheim Milwaukee October 8 262-835-4436
Manheim Pittsburgh October 22 724-452-5555
Manheim Southern California October 2, 30 909-822-2261
Columbus Fair AA October 8 614-497-2000
Manheim Nashville October 1, 29 877-386-5004
Manheim Riverside October 21 909-689-6000
Southern AA October 22 860-292-7500
Manheim Atlanta October 16 404-762-9211
Manheim New Jersey October 8, 22 609-298-3400
Manheim Seattle October 15 206-762-1600
Manheim Riverside October 21, 23 909-689-6000 Manheim Seattle October 15 206-762-1600
Manheim Nevada October 3, 31 702-361-1000 Manheim New Jersey October 8, 15, 22 609-298-3400
Choose Chase on ADESA.com and OVE.com for quality bank-sourced vehicles. Contact auctions directly for current sale information.
Manheim Orlando October 14, 28 800-337-8491
Subaru Motors Finance ADESA Boston October 10 508-626-7000
Manheim Detroit October 2, 16, 30 734-654-7100
Brasher’s Salt Lake October 7 801-322-1234
Manheim Fredericksburg Manheim Pittsburgh October 23 October 22 540-368-3400 724-452-5555
Columbus Fair AA October 1, 29 614-497-2000
Manheim Milwaukee October 22 262-835-4436
Manheim Seattle October 15 206-762-1600
Manheim Dallas October 8 877-860-1651
Manheim New Jersey October 8 609-298-3400
Manheim Southern CA October 2, 30 909-822-2261
Manheim Denver October 22 800-822-1177
Manheim Orlando October 21 800-337-8491
Southern AA October 22 860-292-7500
Manheim Pennsylvania October 3, 31 800-777-2053
*The tradename “Subaru Motors Finance” and the Subaru logo are owned / licensed by Subaru of America, Inc. and are licensed to JPMorgan Chase Bank, N.A. (“Chase”). Retail / Loan accounts and lease accounts are owned by Chase. *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. *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. © 2014 JPMorgan Chase Bank, N.A. Member FDIC. All rights reserved. (12-381) 06/12
9/5/14 1:31 PM
Auction Adds Parking, Offices Flint Auto Auction has embarked on an expansion project that will net the Flint, Mich., facility an additional 27 acres of vehicle parking and 8,000 square feet of office space. Auction co-owners John Luce and Bill Williams report that the auction recently purchased two adjacent properties and began construction earlier this summer. “The timing on the property acquisition was ideal, allowing us to prepare additional acreage for the lease returns which are showing marked increases and will continue to expand into the coming year,” Williams said. “In addition to making way for additional vehicle storage, we were also able to add 118 more spaces for customer parking, to accommodate the increasing numbers of people who attend the auction every week to buy and sell in the lane.” The largest portion of the expansion is Flint Auto Auction’s new North Lot, located approximately four miles from the main facility.
Encompassing 20 acres, it is dedicated to the auction’s storage and marshaling operations. A 1,300-square-foot office on the property includes offices for the auction’s Ally Financial and General Motors departments, as well as for the representatives for both accounts. Phase II of the expansion will begin in the fall, and includes 8,000 square feet of office space that will accommodate 18 offices, a conference room and break room. Williams said the new facility would house the marketing and accounting departments, IT, Legacy Floor Plan, human resources and arbitration. “We’re happy to report that at Flint Auto Auction we continue to grow our facilities right along with the services we provide to our customers,” Williams said. “We are proud of what we have accomplished in our 60-plus years of business, but our focus is on continued success for our remarketing partners.”
Changing Tastes Hurt Compacts DETROIT (AP) – The seismic shift in American car-buying toward trucks and crossover SUVs is creating great deals on compact and midsize cars. The shift, which has been going on for more than a year, is hurting car sales so much that automakers are offering bigger discounts to keep moving metal. The change became even more pronounced in August, with companies such as General Motors and Chrysler reporting that truck sales, including crossover SUVS, were up while car sales fell. The increasing SUV and truck popularity, and discount-fueled sales of some midsize cars, helped U.S. auto industry to its best August in 11 years, with sales rising 5.4 percent from a year ago to 1.58 million, according to Ward’s Automotive. While prices remain high for trucks and SUVs, they’re either falling or rising only slightly on cars, and that means good deals for consumers. “It’s definitely a good time to buy a midsize car,’’ says Jessica Caldwell, senior analyst at the Edmunds.com automotive website. Every midsize sedan is comfortable, looks good and performs well, so price is nearly the only differentiator, she says. Automakers spent an average of $1,841 per car to discount compacts last month, up 7 percent from a year ago, while prices fell 1.2 percent, according to estimates from Edmunds. On midsize cars, companies spent an average of $2,344 on discounts, up 4 percent. Average sales price rose slightly as buyers
added features. Yet for some brands, deals brought out car buyers. Honda reported record sales of its Accord midsize car in August, up 33 percent to more than 51,000. Nissan reported an August record for its Altima midsize car, with sales up 4 percent. And Ford’s Fusion also did well, with sales up nearly 20 percent. Accord sales were so high that it again unseated Toyota’s midsize Camry as the top-selling car in the U.S. for the month. Camry sales fell 1.5 percent to just over 44,000. Caldwell theorized that Accord, Fusion and Altima sales were aided by discounts that brought owners with older versions of the cars off the sidelines. “All of those vehicles have pretty large customer bases,’’ she said. “They see some of the deals that are out there.’’ Edmunds estimates that Honda spent $2,013 per car on discounts for the Accord in August, more than three times what it spent a year ago. Altima discounts were $2,293, up 5 percent, while Ford discounted the Fusion by $2,774, up 42 percent. Crossovers, which are built on car underpinnings, making them more efficient and maneuverable than the old truck-based SUV. They also get gas mileage that’s similar to cars. Buyers, especially empty-nest baby boomers who are downsizing, like the storage space and utility, said Erich Merkle, Ford’s top sales analyst. The shift, Merkel predicted, will continue for the foreseeable future, although it may slow next year.
9/8/14 4:37 PM
9/5/14 11:00 AM
Recalls Range from One to 200,000 Units The latest manufacturer recalls include thousands of vehicles from a defunct brand, a new warning about insect infestation and a single vehicle. Koenigsegg Automotive AB is recalling one model year 2013 Agera vehicle manufactured in December 2012, equipped with a BF1 Systems Tire Pressure Monitoring System (TPMS). The affected vehicle may experience the TPMS system not illuminating the TPMS malfunction indicator light when the vehicle is restarted. Thus, this vehicle fails to comply with the Federal Motor Vehicle Safety Standard No. 138, “Tire Pressure Monitoring Systems.” If the TPMS doesn’t illuminate properly when the vehicle is restarted it could cause the driver not to know there is a problem with the tire, increasing the risk of vehicle crash. Koenigsegg has notified the owner, and a dealer has installed a new software version, free of charge. Suzuki Motor Of America Inc. is recalling 19,249 model year 20102013 Kizashi vehicles manufactured October 2009 through July 2012. In the affected vehicles, spiders may weave a web in the evaporative canister vent hose, block-
ing it and causing the fuel tank to have an excessive amount of negative pressure. Negative pressure could cause the fuel tank to crack resulting in a fuel leak, increasing the risk of a fire. Suzuki is in the process of notifying owners, and dealers will replace the evaporative canister vent line on the affected vehicles with a vent line that has a filter on the end. If the canister vent line is found to be obstructed by a spider web, the fuel tank will also be replaced. The recall began on Aug. 12. Suzuki’s number for this recall is VG. General Motors LLC is recalling 202,155 model year 2002-04 Saturn Vue vehicles manufactured Sept. 11, 2001 to April 6, 2004. In the affected vehicles, it may be possible for the key to be removed from the ignition when the ignition is not in the “Off” position. If the key can be removed from the ignition when the ignition is not in the “off” position, the vehicle could roll away: (a) for an automatic transmission, if the transmission is not in the “Park” position; or (b) for a manual transmission, if the parking brake is not engaged and the transmission is not in the “Reverse” position. This potential for rollaway in-
creases the risk for a crash and occupant or pedestrian injuries. GM will notify owners, and dealers will inspect the vehicle to see if the key can be pulled out when the ignition is off. If it can, dealers will replace the ignition cylinder and keys, free of charge. The manufacturer has not yet provided a notification schedule. GM’s number for this recall is 14506. Until a vehicle has been remedied, owners and operators are advised that when exiting, to be sure
that the vehicle is in “Park,” or in the case of a manual transmission, that the vehicle is in the “Reverse” position and the parking brake is engaged. Also, GM is recalling 120,426 model year 2011-2013 Buick Regal and model year 2013 Chevrolet Malibu vehicles. These vehicles are equipped with two turn signal bulbs in each front turn signal. If one of the two front turn signal bulbs burn out in either front turn signal lamp, there is no indication to the driver.
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9/5/14 1:31 PM
‘Edsel King’ Hangs up His Crown, Sells 2,600 Scrap Units BEULAH, N.D. (AP) – After the crushers move out, LeRoy Walker, the ``Edsel King,’’ will be car poorer and cash richer. For decades, the rural Beulah man has operated a salvage yard tucked out of sight on hills tiered to the level in an old lignite mine north of Beulah. Today, he has 2,600 vehicles lined up in rows out there in the hills, a neat and orderly operation, as far as salvage yards go. Just recently, he signed a deal with BF Salvage, of Minot, to crush and remove 2,300 of those vehicles for an amount he says is not the $1 million he’s been offered before, but comes pretty close. “I’ll invest it and live off the interest,’’ he figures. It’s not a bad ending for a man who, since 1957, has made a living buying junked or wrecked vehicles and “parting them out,’’ as it’s said in the salvage trade, along with repairs. He loved drag racing, enduro races and demolition derbies, and competed and traveled all over the region and country, the Bismarck Tribune reported. “It’s been a great life. I’ve seen a lot of places and got to do what I liked,’’ Walker said. And, he said, the income was good enough.
“My stomach didn’t growl much,’’ he said. He and the buyer, Tom Boe, went through the yard recently and counted the inventory. A bright orange “S’’ spray painted on the windshield marks the cars Walker wants left behind. Those are interesting old collectibles, ones still intact enough to have value, or ones he hopes to still restore himself someday. And it goes without saying that his collection of 200 Edsels – the largest collection anywhere, he says – isn’t going anywhere. He’s obsessed with the Edsel, a car only briefly manufactured by Ford Motor Co. One, a ‘58 Edsel Citation convertible, painted its original buttery yellow with chrome and black accents, is beautifully restored and in storage out at his place. Walker, 73, who’s got a bad hip and other health issues, said a guy called him last week and offered him $50,000 for it. No deal, Walker said. He’s not ready to sell. Not yet. He’s got more miles to go. He bought his first Edsel in 1962 and his last one just last summer, a ‘59 station wagon from a guy in South Dakota. He loves their big steady motors and smooth
Photo by The Associated Press IT’S GOOD TO BE KING: Leroy Walker poses with one of his prize Edsels at his home and salvage yard in Beulah, N.D. At last count, he had 226 of the cars.
wide ride. “A few are still hiding around, but they’re getting pretty scarce,’’ he said. Word’s out that Walker’s yard will be cleaned out soon, and he said a lot of people have come through in the past few weeks looking for a certain part or piece, or maybe a whole rig they ought to buy and pull on home before it’s crushed and gone forever. It’s always been a pretty busy
place, between salvage and repair work in his shop. “A lot of people heard about me just word-ofmouth,’’ he said. Steve Gowin of Hazen, a customer and friend, said local car club members depend on Walker as a quick source for a needed part. “He’s unique,” Gowin said. “He’s not only a student of the Ford, but of every car and he’s memorized universally used parts.” Continued on page 26
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© 2014 ADESA, INC.
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ADESA Colorado Springs 10680 Charter Oak Ranch Road Fountain, CO 80817 719-391-6600
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ADESA Kansas City 15511 ADESA Drive Belton, MO 64012 816-525-1100
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– from page 24
“When you need something, he grabs a 5/8-inch wrench and drives out there and gets it with one wrench,’’ Gowin said. “I’d need a whole tool box and a hammer. I’ve never seen anything like it. He’ll leave a large void here.” Walker said it’ll be hard to see some of those cool old Jeeps, Studebakers and Internationals get flattened like a metal pancake and tossed onto a semi. “But if I sell it to someone to restore, or he takes it and scraps it, what’s the difference?’’ he said. “I still get paid.”
Boe said it won’t take him long to crush the vehicles. Boe said he’ll leave the salvage yard looking good when he’s done, and Walker says he’ll finally get all of his Edsels in one area, instead of some here and some there on his 37 acres. Walker doesn’t get around as well as he used to, but he can still work hard and he plans to keep going on his own projects. “I get up at 7 a.m. and work until 10 p.m.,” he said. “I can still do it, but I run out of gas.”
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Museum Opts to Close Sinkhole That Swallowed Corvettes BOWLING GREEN, Ky. (AP) – A massive sinkhole that swallowed eight prized sports cars won’t be a permanent attraction at the National Corvette Museum in Kentucky. The museum’s board of directors voted Aug. 31 to fill in the entire hole that opened up in February and became an Internet sensation. Curiosity over the hole revved up attendance and revenue for the museum in Bowling Green. Board members reversed course by deciding against preserving a section of the gaping hole. Mindful of the hole’s popularity, museum officials in late June were leaning toward keeping part of the hole open and putting a crumpled sports car back in it to memorialize what happened when cars toppled like toys amid rocks, concrete and dirt when the sinkhole opened up in the museum’s Skydome. The option of keeping part of the hole open lost favor because of added costs due to safety features, museum officials said. “We really wanted to preserve a portion of the hole so that guests for years to come could see a little bit of what it was like, but after receiving more detailed pricing, the cost outweighs the benefit,’’ said museum Executive Director Wendell Strode.
The museum didn’t disclose how much it will cost to fill in the 60-foot-long, 45-foot-wide, 30-footdeep sinkhole. Repairs are expected to start in November and take about six months, officials said. The museum will remain open, but the Skydome will be sealed off from visitors, who will be able to watch the repairs through a Plexiglas wall. The hole will be filled completely with rock, then workers will drill into it to install steel casings, Frassinelli said. Crews will pour grout into the casings, creating a steel and concrete pillar to provide additional support under the floor. No one disputed the bonanza the Corvette Museum reaped from the sinkhole as more people ventured off the nearby interstate to visit. Security camera footage showing the floor’s collapse has been viewed nearly 8.3 million times on YouTube, the museum said. The Corvettes were pulled out of the hole to great fanfare. Visitors have been able to take a close look at the hole and the damaged cars. Attendance surged by 66 percent since the hole opened up and revenue shot up 71 percent, Frassinelli said. Museum membership has increased, and sales of merchandise
are up at the museum, she said. The museum sells sinkhole-related shirts, postcards, prints and a 39-minute DVD about the sinkhole. Meanwhile, the museum and Chevrolet have decided to repair three of the damaged cars. Chevrolet will restore the 1992 white 1 millionth Corvette and the 2009 ZR1 Blue Devil, which was the first car pulled from the hole. Chevrolet will fund restoration of a 1962 black Corvette, but the museum will oversee the work. The other five were too badly damaged but will be displayed in their dented and crushed condi-
tions at the museum. “As the cars were recovered, it became clear that restoration would be impractical because so little was left to repair,’’ said General Motors global product development chief Mark Reuss. “And, frankly, there is some historical value in leaving those cars to be viewed as they are.’’ The museum owned six of the cars and the other two were on loan from GM. In all, General Motors will provide nearly $250,000 in support to help the museum recover from the sinkhole, the automaker said.
9/8/14 4:43 PM
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9/5/14 11:15 AM
ÛÝÛÛSeptember 15, 2014
USED CAR NEWS
PEOPLE IN THE NEWS Law Firm Forms Collections Group
Hudson Cook LLP has added two nationally-recognized collections attorneys as partners. Gary Becker and Barbara Sinsley will join current Hudson Cook attorneys in creating a new practice group to focus on lender oversight and regulatory compliance Gary for third-party Becker debt collectors, debt buyers, collections law firms and creditors collecting their own debts. Becker is an attorney and entrepreneur who has worked Barbara in the collections indusSinsley try for nearly 30 years. He is the former CEO, chairman and general counsel of national collection agency DCM Services; a founding partner of Balogh Becker, one of the nation’s largest collection law firms; and a founding board member of the
National Association of Retail Collection Attorneys. Becker received his law degree in 1978 from Ohio State University College of Law. Sinsley previously served as general counsel of DBA International (formerly the Debt Buyers Association). Over the course of her career, both as an outside attorney and inhouse counsel, Sinsley has assisted dozens of large and small collections businesses in coming into compliance with state and federal laws, and has represented numerous industry members before the CFPB, Federal Trade Commission, state attorneys general and in the courts. She received her law degree in 1989 from South Texas College of Law. The pair will be joining several current Hudson Cook attorneys, including Joel Winston (former head of the FTC’s debt collection enforcement program), Chuck Dodge, Ron Gorsline, Eric Johnson, Blake Sims and Tom Buiteweg, in a group that focuses on compliance as it relates specifically to the regulated aspects of lenders’ collection and recovery; creditor supervision of third-party debt collection by agencies and law firms; and the sale of consumer debt.
Cox Names Manheim Execs
Cox Automotive announced a pair of promotions at Manheim. Rock Anderson has been promoted to senior vice president and chief people officer, effective immediately. Anderson was previously Manheim’s regional vice president – Rock West Regional Anderson Operations. Barry Roop, Manheim’s market vice president for the Texas Market, will assume Anderson’s previous role. In his new Barry role, Anderson will lead a team Roop of more than 24,000 employees in 11 countries. He will be responsible for all human resources functions for Cox Automotive. Prior to this assignment, Anderson was responsible for leading Manheim’s 33 operat-
ing locations in the western half of the United States. Anderson is a member of Manheim’s executive team and previously led the company’s global people strategy with responsibility for all human resources functions, including providing oversight for corporate and field operations, security and employment practices. He will report to Sandy Schwartz. Barry Roop was promoted to regional vice president – west regional operations. Roop will lead strategy, operations and a team consisting of more than 5,500 employees. Roop has served as Manheim’s Texas market vice president since 2011, after serving as general manager of Manheim Dallas for almost 30 years. He brings more than 40 years of experience in the auto and remarketing industry to his new role. Throughout his career, Roop has held various leadership roles, including assistant general manager and general manager at Dallas Auto Auction. Roop is a past national President of NAAA and co-founder and past President of the Texas Wholesale Auto Auction Association.
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9/8/14 1:49 PM
Toyota Sees Future of Safer Cars with Drivers at Wheel YPSILANTI, Mich. (AP) – Your car soon will do more to help avoid a crash. As for one day leaving all the driving to the vehicle while you relax in back, don’t get your hopes up. That’s the message from safety executives at Toyota, who on Sept. 4 promised by 2017 to have collisionprevention technology installed across its U.S. line-up, in both mainstream and luxury vehicles. But for now at least, every vehicle the company designs and builds will require someone in the driver seat. Toyota expects by “mid-decade” to roll out a next generation of safety systems in the U.S. that allow cars to steer themselves enough to stay in the center of a lane. And to keep the driver focused on the task at hand – driving – the cars will also feature a camera that monitors the driver’s eyes and makes sure that hands are on the steering wheel. If the eyes drift off the road or hands come off the wheel, the car would issue a warning. “In other words, a full-time back-seat driver,” Ken Koibuchi, general manager of Toyota’s intelligent vehicle division, said at the Sept. 4 briefing. Several other automakers already have lane-steering technology and TPC_ChryslerCapital_halfUCN.pdf driver monitoring systems, but of-
ten they’re only available in highercost or luxury models. Toyota’s system might eventually have the ability to warn you if your freeway lane is going away, or merging traffic could hit your car. That technology is still being developed and is limited by mapping data nationwide, the safety executives said at a safety briefing near Ypsilanti, Mich. The company sees a gradual shift toward cars doing most of the driving work, with each increment helping people to gain trust in the automated systems. Toyota says the industry is more a decade 1 than 9/5/14 11:17 AMaway from making a car that could drive itself, due to
technology limitations and legal issues. And unlike Google, Toyota doesn’t see the day where a human won’t be needed behind the wheel. “Toyota will not be developing a driverless car,” said Seigo Kuzumaki, the company’s deputy chief safety technology officer. Humans still will be needed to handle situations that can’t be anticipated by a computer, Toyota executives said. Toyota and other automakers already have radar-activated cruise control that keeps a safe distance from other traffic and can even stop the car when needed if the driver doesn’t react. The next-generation Toyota system will have more sen-
sitive radar that can see farther and react faster. Collision-prevention systems will be on all cars in its U.S. model lineup by 2017, Toyota says. The systems are likely to include the radar-activated cruise control, although Toyota said details will be released at a later time. The radar system now is available as an option on Lexus and six Toyota models. Toyota’s safety briefing came ahead of next week’s Intelligent Transportation Society of America World Congress in Detroit, where many automakers and parts suppliers plan to show off new safety technology.
9/8/14 4:59 PM
RJ Foley, owner, Foley Motorsports, Shrewsbury, Mass.: â€œWeâ€™ve been in business since 1983. We have one location. â€œUsually, we carry about 140 cars. Thatâ€™s typical for this time of year. â€œWeâ€™re selling anywhere from 60 to 70 (units) per month. Thatâ€™s just retail. If you include wholesale, we probably do more than 100. â€œ(To acquire inventory) we have a lot of people calling us on trade-ins. We specialize in highline stuff and we have a lot of dealers calling us on trades. We also buy what we can at auctions all over the country. We also buy online. Most of the stuff we buy is under factory warranty. â€œI would say our average model year is 2011, with average mileage in the 30,000s. â€œInventory is very hard to find. â€œWeâ€™re probably carrying 60 percent cars and 40 percent trucks/sport utility vehicles.
â€œWeâ€™re 80 percent imports and 20 percent domestics. â€œ(Our reconditioning costs) are $1,200 to $1,500 a car. We do them up right. â€œWe have our own service shop. We also do outside service. Thatâ€™s doing very well. We have six bays and we actually have to expand. We have a great reputation and every month is gets busier. â€œFor advertising, we do AutoTrader.com, Cars.com and we run some TV ads. But thatâ€™s about it. We have huge word-of-mouth business. If you go on DealerRater.com, youâ€™ll see some of the feedback we have from our customers. We have a lot of out-of-state people who buy from us and we just ask them to look at DealerRater to find out what kind of dealership we are. â€œItâ€™s not a one-man show. We have a great team thatâ€™s been with me a long time. â€œWe just sold a 2014 Bentley Continental GT a couple of weeks ago. It was brand new. I bought it from a dealer. We do some new car business, as well. I think we
sold it for $230,000. â€œ(For a regular used car), we sold a 2013 Mercedes S-550, sport package. It had 11,000 miles. We sold it for $70,000.â€?
Danny England, owner, Danny England Motors, New Tazewell, Tenn.: â€œAs of this year, weâ€™ve been in business 37 years. â€œWe just have one location. In 2011, we more than doubled the dealership space and created a threecar showroom, though I can probably put up to four cars in it. We had a 3,700-squarefoot building, where now weâ€™re probably looking at a 7,000-square-foot building. We gutted the whole building. â€œWeâ€™re carrying 69 units on the lot. Thatâ€™s stable with this time last year. â€œWeâ€™re selling anywhere from 23 to 28 units per month. Weâ€™re tracking the same as last year. â€œ(To acquire vehicles) weâ€™re staying on the road to auctions everywhere. Weâ€™re even branching out to more and more auctions. My son,
Daniel, does a lot of buying. â€œInventory is still challenging because everyone is chasing the same inventory. So itâ€™s putting us in the position of traveling outside of our normal buying area to find cars. Online buying is more and more a necessity than ever before. â€œMy average retail price on the lot is about $23,000. Thatâ€™s up from about $20,000 last year. â€œWeâ€™re now stocking 2014 models and back. The average mileage on my frontline cars is under 30,000. â€œIt absolutely is a challenging market. But I have finance rates (through lending partners) as low as 1.75 percent. Plus, I can offer 100 percent financing on a 75 month (term). That puts us on a competitive playing field with new-car dealers. â€œOver the years, based on our business criteria and the reputation that we have, weâ€™ve been able to work with lenders that normally wouldnâ€™t work with independent dealers. â€œOur inventory is 60 percent in trucks/SUVs and 40
percent cars. â€œWe are probably 75 percent domestics and 25 percent imports. â€œOn average, with the kind of inventory we carry, our recon is probably less than $500 a car. â€œWe donâ€™t do the service ourselves, I have an outside service department. Heâ€™s the No. 1 service department in the area and has an impeccable reputation. â€œWe use the Internet for advertising. We use Autotrader.com, but I could devote five days a week to people presenting their Internet business proposals to me. â€œWe donâ€™t use any print, radio or TV. Television is affordable â€“ you can do some cable network ads. But weâ€™re seeing you can take that same money and put it into Internet to get a broader market. We had someone come in here from Colorado to buy a vehicle. â€œWe recently sold a 2013 Jeep Wrangler. It had 11,000 miles. I got $30,000 for that. â€œI think the rest of the year is going to be fine.â€?
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WHOLESALE MARKETS ARIZONA
Jim DesRochers, vice president, Dealers Auto Auction of the Southwest, Phoenix: “We’ve been in business 13 years. We have six lanes. “Actually, our volumes have been up 20 percent compared to last year. We’ve been very fortunate. We have partners that have been growing exponentially. “We run a lot of Earnhardt (Auto Center) cars and a lot of dealer cars. Those dealers are doing some great retail business and we’re getting the offshoots of those business. “Our partnerships with Lobel, CPS and Westlake have been growing and we’ve been the recipients of that growth. “Our niche has been absolutely incredible. We feel it’s been a niche that’s been underserved big time. We focus on older cars and those older cars have a tremendous amount of demand in good times or bad. “In the height of the season – which for us is the first quarter – we push in
the high 70s and low 80s (percentage-wise). We’re in the mid- to high 60s now. “We’re running 600 to 700 vehicles through the lanes each week. “We’re averaging around 440 dealers in the lanes. We’re averaging around 1.5 cars per buying dealer. We also simulcast everything. “Our volumes are 60/40, between dealer cars and repossessions. “The average price coming across the block is about $4,000. “(Our success is) the result of the programs that we’ve put in. We have a Mexico-ready program that makes it easier for dealers to ascertain which vehicles can legally go across the border, without a whole lot of work required on the buyer’s side. “We also have a transparent transaction program I designed with Carfax. Every car gets a green, yellow or red sticker. “A green or yellow sticker means that it’s either clean and/or it has minor announcements. “If the car is as-is, and it
Compiled by Jeffrey Bellant has a red sticker, you know the car is going to have issues, but you know that going in. “That’s something we’ve been doing for two years. “We’ve also put in a new Whann Tech system which makes everything easier. It’s a totally different operating style. “We draw dealers from Arizona, New Mexico, Colorado, Nevada and even a couple of guys flying in from California. Of course, we also have Hispanic guys coming up from Mexicali and a couple of other places. “We even created an entire (additional) website that’s all in Spanish. “We also run simulcast salvage inside. We’ll have 45 to 50 cars. “We also installed a downdraft cooling system in the arena and it has worked fabulously, It has dropped the ambient temperature about 10 to 15 degrees. “As far as the rest of the year, we see it being stable. We don’t have the big ups and downs based on (rental car) returns.”
Mike Hockett, president/general manager, Tidewater Auto Auction, Virginia Beach, Va.: “We’ve been business since 1967. I’ve been here since 1996. “Our volumes have ranged just short of 1,000 on the low side and just over 1,300 on the high side. We have eight lanes. “Seventy percent of our vehicles are dealer consignment. “Volumes are up just a little compared to this time last year. “I think the economy has a lot to do with it, but not necessarily because there has been a dramatic improvement. Sometimes, some auctions see their volumes go up because dealers can’t sell cars at retail. To go a step further, the new-car stores have trended toward keeping vehicles with upward of 150,000 miles to retail. This is unprecedented in history. When you think about your reputable newcar stores, do you ever see them on TV advertising
their used car lots? They’re not experts in that area. It’s the used-car guys that are the experts in those cars. “In terms of sales percentages, we’re hanging in the upper 40s to the mid-50s. “Our bidder badges range from 400 to 600. “Buyers come from Baltimore, Washington D.C., Roanoke, Va., Raleigh, N.C., and obviously the local area. We’re even pulling dealers from central North Carolina. “A lot of vehicles we’re getting are from our financial institutions. The cars we’re getting from the north are new-car trades. “The dealers are picky in the lanes. They are looking for cars that don’t exist – the 5- to 7-year-old car that has 100,000 miles. Those are really hard to find. “The average price is about $5,000, which is up from last year. “We have a GSA sale once a month. We’ll run 250 at a time. We also do a power sports/toy sale each week. These are motorcycles, ATVs, boats, etc. I’m seeing more motorcycles this year.”
9/8/14 4:43 PM
Certified Pre-Owned Retail Sales DOMESTIC
Ford/Lincoln/Mercury Ford / Mercury Lincoln GM Buick Chevrolet GMC Oldsmobile Pontiac Saturn Hummer Cadillac Saturn through 2009 Chrysler/Dodge/Jeep Chrysler Dodge Jeep Memo: Fiat Memo: Chrysler w. Fiat Total Domestics
24,977 22,514 2,463 37,426 3,895 27,139 6,234 124 34 0 1,848 13,667 2,400 6,341 4,926 93 13,760 77,918
21,370 179,935 19,197 162,897 2,173 17,038 30,694 255,077 2,420 24,675 22,780 186,485 4,886 42,339 381 1,202 227 376 3 1 1,591 13,720 11,366 96,301 2,193 18,475 5,172 44,435 4,001 33,391 29 385 11,395 96,686 65,024 545,034
152,536 137,915 14,621 232,178 18,396 173,645 34,952 3,393 1,792 11 12,475 82,213 17,169 37,995 27,049 192 82,405 479,413
20,093 3,731 13,852 2,144 32,533 6,976 9,254 4,833 4,469 67 4,202 102,154
25,139 158,487 4,098 27,761 11,081 92,778 1,119 13,661 36,425 239,251 6,476 50,031 7,306 63,596 3,532 31,119 3,667 28,758 65 481 3,705 29,809 102,613 735,732
171,399 28,435 77,880 7,672 254,047 48,928 51,462 22,195 24,870 515 23,871 711,274
4,733 30 10,797 93 526 1,054 13,012 6 1,096 1,113 8,762 30 1,351 42,603
3,651 30 7,735 29 317 537 9,252 9 738 942 8,711 29 819 32,799
26,088 240 54,692 192 2,371 4,193 66,183 58 4,427 6,524 66,571 280 7,173 238,992
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Honda Acura Nissan Infiniti Toyota Lexus Hyundai Kia Mazda Mitsubishi Suzuki Subaru Total Asian EUROPEAN
Audi Bentley - EST. BMW Fiat Jaguar Land Rover Mercedes-Benz Smart MINI Porsche Volkswagen Maserati Volvo Car Total European Total - EST.
30,676 240 67,026 385 3,987 7,861 79,643 61 6,311 7,695 61,903 265 9,365 275,418
222,675 200,436 1,556,184 1,429,679 Source: Autodata Corp.
9/8/14 10:33 AM
ACTUAL WHOLESALE AND PROJECTED RESIDUAL VALUES SEPTEMBER 2014
SOURCE: BLACK BOOK
2013 MODELS Domestic Cars Buick LaCrosse 4D Sedan Cadillac CTS 3.6 4D Sedan Chevrolet Cruze LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 base 4D Sedan Chrysler 200 Touring 4D Sedan Ford Focus SE 4D Sedan Ford Mustang base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln MKS 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 Lancer ES 4D Sedan Nissan Altima base 4D Sedan Nissan Altima S 4D Sedan 3.5 Nissan Sentra S 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Trucks BMW X3 XDrive28i 4D SAC Cadillac Escalade base 4D Utility AWD Cadillac SRX Luxury 4D Utility AWD Chevrolet Equinox LS 4D Utility FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D Utility 4WD Dodge Grand Caravan SE Wagon Ford Edge SEL 4D Utility Ford Escape SEL 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Flex SEL 4D Utility Honda CR-V LX 4D Utility AWD Honda Odyssey LX Wagon Honda Pilot EX-L 4D Utility 4WD w/RES Jeep Grand Cherokee Laredo 4D Utility 4WD
Sep-13 $24150 $29100 $13400 $13950 $20200 $13900 $13500 $18100 $19600 $29900 Sep-13 $27900 $33800 $69200 $17500 $15000 $33800 $41700 $13000 $15000 $19150 $13400 $17350 $13950 $16350 Sep-13 $36350 $50400 $33350 $19250 $21525 $32850 $17650 $22700 $22650 $27300 $22725 $22500 $19500 $21550 $29875 $27075
Mar-14 $21900 $26500 $11850 $11950 $20250 $12600 $12550 $16200 $17450 $23800 Mar-14 $24400 $30650 $70800 $16950 $13900 $31300 $37800 $11200 $13600 $17000 $12300 $16100 $12750 $15000 Mar-14 $33350 $46500 $29700 $16900 $20800 $30075 $15300 $19800 $20150 $27525 $21325 $20100 $18650 $20050 $28550 $25400
2012 MODELS Sep-14 $19800 $25000 $11250 $11750 $18850 $12650 $12350 $16000 $17000 $25050 Sep-14 $23100 $26050 $64000 $16400 $13400 $31300 $33600 $11450 $12700 $16000 $12450 $14600 $12550 $16150 Sep-14 $30550 $45350 $30250 $16000 $21400 $28500 $14600 $22300 $18050 $27200 $21600 $21700 $18600 $21250 $28950 $24100
Projected Figures Sep-15 Sep-16 $17700 $15700 $21225 $18225 $9925 $8675 $10100 $9000 $16200 $14025 $10775 $9275 $10200 $8775 $14050 $12400 $14200 $12525 $22450 $19875 Sep-15 Sep-16 $19500 $17175 $22725 $19075 $51150 $43450 $13825 $12275 $11375 $9750 $25425 $21825 $28975 $24500 $9475 $8225 $11175 $9800 $13650 $11925 $10075 $8675 $12750 $11300 $10650 $9450 $13550 $12225 Sep-15 Sep-16 $26200 $22525 $38625 $34050 $25300 $22650 $13050 $10950 $18375 $16575 $24825 $22300 $11875 $9700 $17550 $15150 $14700 $12575 $22325 $19200 $17875 $15675 $17250 $14750 $15925 $14100 $17675 $15800 $24775 $22275 $19800 $16925
Sep-13 $15600 $21850 $10850 $10350 $16500 $10550 $10450 $14100 $15500 $21450 Sep-13 $22000 $22450 $46300 $13800 $12200 $25400 $32100 $10650 $11000 $12300 $10250 $13150 $11200 $14000 Sep-13 $30050 $43300 $25850 $19250 $14100 $18625 $25900 $13000 $20700 $14150 $26100 $18725 $18850 $15650 $17700 $24950
Mar-14 $13600 $19100 $9600 $8900 $15500 $9800 $9100 $12900 $13700 $22100 Mar-14 $19700 $19700 $44500 $12650 $11200 $22500 $27800 $9850 $9600 $10900 $9000 $11900 $10250 $12700 Mar-14 $27250 $38150 $22800 $18000 $11300 $17425 $23175 $11250 $16950 $12950 $24500 $17900 $16850 $15050 $15950 $23650
Sep-13 $21450 $24700 $12100 $12100 $17650 $12100 $12250 $15900 $17400 $24600 Sep-13 $24600 $28200 $57500 $15300 $13550 $29000 $36300 $12050 $12300 $13600 $11500 $15050 $12500 $14850 Sep-13 $33200 $46700 $29000 $20750 $16300 $19800 $29950 $15050 $21300 $16300 $27100 $20350 $19550 $17900 $19900 $28350
Mar-14 $19150 $21800 $10600 $10700 $17450 $11000 $10950 $14500 $15550 $19700 Mar-14 $22000 $25650 $55500 $14200 $12450 $26300 $31800 $10500 $10800 $12100 $10350 $14000 $11450 $13750 Mar-14 $30250 $42100 $26050 $19500 $13000 $18950 $26975 $13350 $18900 $15700 $26275 $20050 $18750 $17350 $17850 $26800
Sep-14 $17900 $21100 $10250 $10300 $16100 $11450 $10950 $14300 $15500 $21300 Sep-14 $20900 $24400 $47600 $13400 $12050 $24500 $28800 $10800 $11200 $12500 $10450 $13200 $11100 $13900 Sep-14 $27050 $40350 $26000 $20850 $13300 $21000 $27300 $13100 $20000 $14250 $25200 $21200 $20700 $16950 $18850 $26650
Projected Figures Sep-15 Sep-16 $15050 $12900 $17775 $15125 $8625 $7450 $8925 $7900 $13150 $11250 $9200 $7775 $8700 $7450 $12200 $10875 $12300 $10675 $18025 $15700 Sep-15 Sep-16 $17475 $15050 $19775 $16425 $38950 $33125 $11725 $10425 $9825 $8300 $20450 $18025 $24550 $20500 $8625 $7300 $9450 $8200 $10500 $9125 $8575 $7450 $11375 $10025 $9600 $8400 $12175 $10425 Sep-15 Sep-16 $22400 $19025 $34050 $29050 $21700 $19025 $17500 $15300 $10425 $8700 $16750 $14825 $22950 $20175 $9775 $7825 $15550 $13325 $11600 $9850 $20175 $17075 $16675 $14325 $15825 $13350 $14300 $12625 $15850 $13775 $22675 $19750
Sep-14 $11200 $14300 $5850 $8250 $11250 $7300 $7950 $11300 $12950 $16100 Sep-14 $17000 $14700 $31950 $10350 $7650 $18000 $22600 $7800 $8650 $9950 $7750 $10050 $8500 $10000 Sep-14 $21500 $32950 $19400 $16900 $9825 $16900 $20800 $9400 $13500 $10400 $14300 $15800 $13400 $12700 $12200 $19650
Projected Figures Sep-15 Sep-16 $9325 $7875 $10825 $9025 $4850 $4225 $6550 $5600 $9200 $7825 $5300 $4200 $6250 $5225 $9400 $8175 $9500 $7875 $12575 $10250 Sep-15 Sep-16 $13125 $10850 $12725 $10650 $27250 $22825 $8975 $7775 $6600 $5450 $15125 $12875 $16725 $13475 $5950 $4950 $6975 $5950 $7850 $6675 $6475 $5475 $8450 $7400 $7175 $6250 $8500 $7175 Sep-15 Sep-16 $17075 $14175 $25075 $20525 $15725 $12975 $13525 $11800 $7050 $5875 $13150 $11475 $17100 $14375 $6600 $5175 $10725 $9175 $8075 $6725 $11325 $9175 $12225 $10425 $10725 $9225 $10775 $9475 $10525 $8925 $16050 $13525
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 Focus SE 4D Sedan Ford Mustang base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 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 Lancer 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 BMW X3 XDrive28i 4D SAC Cadillac Escalade base 4D Utility AWD Cadillac SRX Luxury 4D Utility AWD 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 Grand Caravan Express Wagon Ford Edge SEL 4D Utility Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Flex SEL 4D Utility Honda CR-V LX 4D Utility 4WD Honda Odyssey LX Wagon Honda Pilot EX-L 4D Utility 4WD w/RES
Domestic Cars Buick LaCrosse 4D Sedan Cadillac CTS 3.6 4D Sedan Chevrolet Cruze LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 base 4D Sedan Chrysler 200 Touring 4D Sedan Ford Focus SE 4D Sedan Ford Mustang base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln MKS 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 Lancer 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 BMW X3 XDrive28i 4D SAC Cadillac Escalade base 4D Utility AWD Cadillac SRX Luxury 4D Utility AWD 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 Grand Caravan SE Wagon Ford Edge SEL 4D Utility Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Flex SEL 4D Utility Honda CR-V LX 4D Utility AWD Honda Odyssey LX Wagon Honda Pilot EX-L 4D Utility 4WD w/RES
Sep-14 $12700 $17950 $9450 $9150 $14450 $10350 $9150 $12700 $13500 $20400 Sep-14 $18950 $18300 $38500 $11800 $10750 $20950 $25200 $9200 $9900 $11200 $9250 $11350 $10000 $12150 Sep-14 $24900 $35400 $23100 $18850 $11450 $18500 $24200 $11000 $17000 $12400 $22000 $18000 $17400 $14550 $15950 $23500
Projected Figures Sep-15 Sep-16 $10725 $9250 $13125 $11025 $7625 $6525 $7700 $6700 $11275 $9550 $7975 $6675 $7275 $6175 $11025 $9800 $10750 $9100 $15650 $12950 Sep-15 Sep-16 $15175 $13025 $15200 $12825 $32325 $27325 $10300 $9050 $8375 $6975 $17850 $15750 $20375 $16725 $6825 $5750 $8125 $6975 $9100 $7825 $7500 $6425 $9700 $8625 $8475 $7375 $9925 $8400 Sep-15 Sep-16 $19550 $16325 $28825 $24300 $18575 $15875 $15350 $13375 $8550 $7050 $15075 $13325 $19700 $17100 $8475 $6750 $13050 $11150 $9925 $8350 $17325 $14475 $14050 $12075 $13125 $11150 $12250 $10825 $13250 $11450 $19250 $16375
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 Focus SE 4D Sedan Ford Mustang base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 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 Lancer 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 BMW X3 XDrive30i 4D SAV Cadillac Escalade base 4D Utility AWD Cadillac SRX Luxury 4D Utility AWD 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 Grand Caravan SE Wagon Ford Edge SEL 4D Utility Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Flex SEL 4D Utility Honda CR-V LX 4D Utility 4WD Honda Odyssey LX Wagon Honda Pilot EX-L 4D Utility 4WD w/RES
Sep-13 $13900 $18200 $7500 $9150 $13200 $8800 $9050 $12700 $13950 $17350 Sep-13 $20000 $19000 $39100 $12400 $8800 $22000 $28500 $9750 $9750 $11050 $9400 $11750 $9950 $11800 Sep-13 $25000 $37650 $24300 $17450 $12375 $17600 $23025 $11275 $17400 $12700 $17150 $16550 $17300 $14300 $13750 $22200
Mar-14 $11700 $16000 $6150 $7450 $11650 $7850 $7900 $11500 $12850 $17950 Mar-14 $17700 $16500 $37250 $11200 $7850 $19300 $24800 $8650 $8450 $9750 $8450 $10250 $9050 $10800 Mar-14 $22600 $34150 $20350 $16250 $10325 $16275 $21425 $9400 $14725 $11200 $15200 $15175 $14275 $13450 $12850 $20700
9/5/14 2:46 PM
SCRAPES FOR LITTLE SCRATCH
Compiled By Jeffrey Bellant
MANHEIM SERVES FOOD TO FAMILIES
See how easy it is to restore that like-new finish in just an afternoon. Watch our online how-to videos to show you how.
Photo courtesy of Manheim SERVING FAMILES: Manheim’s Joe Aliberti (from left), Steve Schaufert, Noor Bibi, Sal Bibi, Bob Heisler and Brian Harding fed a group of 50 at Philadelphia Ronald McDonald House.
This summer, more than 20 members of Manheim’s Northeast Market sales team joined the Ronald McDonald House support network and volunteered their time. “I am so proud of our team’s efforts,” said Tim Van Dam, market vice president for the Northeast. “I am not sure our volunteers realize the impact they had on the families of seriously ill and terminal children. These parents, siblings, grandparents and other family members are going through very tough times, so a meal and a smile can really brighten their day a little bit.” More than 100 parents, siblings, grandparents and other family members were fed by groups of Manheim volunteers in Albany, N.Y., Boston, Mass., and Philadelphia, Pa. On July 30, a group of five volunteers cooked and prepared a meal and a variety of desserts to 35 family members staying at the Ronald McDonald House in Albany, N.Y. More than 50 people were treated to a meal by a group of six Manheim volunteers at Ronald McDonald House in Philadelphia on July 16. A group of five members of the Boston area field sales team cooked dinner for the residents of the Ronald McDonald House in Boston. They provided a buffet-style meal of baked stuffed chicken and sides for 20 people in June.
ADESA Raises Funds for Diabetes Research QU AL
ASSUR IT Y O .E .MR. COLO H MA T C UA RANTE
Paint pens >>> ½ oz and 2 oz bottles >>> 12 oz spray cans Ready-to-spray pints, quarts and gallons
ADESA, a subsidiary of KAR Auction Services Inc., announced that several of its auction locations raised $157,856 on behalf of JDRF. Five auctions worked closely with Ford Motor Co.’s Ford Global Action Team to bring awareness to the organization and its mission during a two-month campaign. JDRF is the leading funder of type 1 diabetes (T1D) research. Some of the special events were: ADESA Indianapolis, Sweet Rides and Sugar Motorcycle Run and 5th Annual Car, Truck and Bike Show;
ADESA Boston, 14th Annual Classic Car and Motorcycle Run; ADESA Phoenix, Charity auction of two vehicles; ADESA Buffalo, full-day event featuring an auction and celebrity golf tournament; and ADESA Los Angeles, a charity motorcycle auction. 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: firstname.lastname@example.org
9/8/14 12:36 PM
Disconnected Jottings From Tony Moorby... Just recently I attended the National Independent Automobile Dealers Association’s annual board meetings. It’s a two-day, deep dive into the association, where its financial state, operating structure and current interests are all reviewed. Commercial and legislative positions are evaluated and p l a n s plotted for the future with updated information. The quality and dedication of the staff is as remarkable as it is small and tightly knit. They have a total of 19 employees and call on other experts on an as-needed basis. They cover the waterfront from TV production, magazines and marketing, convention and meeting planning, as well as membership development. Membership development is like a two-sided coin. They try to develop the amount of members who belong, after all,
there’s strength in numbers but they’re keen to develop the existing membership into better, more efficient and profitable business people who operate with an ethical and fair-minded business attitude. The CFPB would do well to take note of how honestly a used-car dealership can be run. NIADA membership creates clear access to and monitoring of compliance issues and honing an awareness of what it takes to succeed in one of the most multi-faceted businesses out there. Along with the National Auto Auction Association, they maintain a PAC and thus a presence on the Hill; whilst this is a relatively behind-the-scenes activity, it’s one of their most important undertakings. Ultimately, the strength of any association lies in its ability to help improve its members’ financial health and well-being. So as I was listening to up-dates from each of the departments, I was impressed by the commitment, not only of the staff, but also of the volunteer committee and
board members toward this undertaking. Now, I’ve been around the NIADA since 1982 – it was the first association our company joined after the NAAA, recognizing that its’ memberships have entwining interests. I’ve missed a few meetings for various reasons in the last couple of years and was a bit out-ofdate when I joined this latest gathering. I have to tell you that I was flabbergasted at the amount of dealer programs that have been developed to an enormously high degree. I voiced some surprise that the world hadn’t been apprised of education and training opportunities through the talented offices of Joe Lescota (late of Northwood University) and Georgia Brown. I’m sure the existing membership is well aware of these secret weapons as they’ve been witness to the Certified Master Dealer Program, a complete curriculum encompassing everything about running a dealership. They also run Dealer 20 Groups that study all kinds
C R O S S WO R D
1. Ford plug-in hybrid (2 words) 6. 1950s car feature 10. False statement 11. Mazda ___ 12. Brit sports car makers 15. Common soccer score 16. NAPA offering 17. Raise 18. ____ SS Saloon Phaeton 21. Arrival time estimate, for short 22. Hyundai Santa ___ 23. S-type or F-type 26. Second-smallest U.S. state 28. Nurse, abbr. 29. Sale clause, abbr.
31. The A in AC 32. Toyota sedan 33. Place for a price 37. Copy 38. Lane for short 39. Attempt to persuade 40. Car protector 41. Motor racing barrier at corners 43. Saturn model 44. Concorde or Conquest 45. Isuzu models 47. Shade provider 48. Mid-size Hyundai
To see past columns from Tony Moorby, visit www.usedcarnews.com/ columnists/tony-moorby
Sponsored by INSURANCE AUTO AUCTIONS
By Miles Mellor
gadgets and gizmos he gets industry partners to extend a myriad of services and products with deep discounts, normally unavailable to local guys, on a national basis. The list is so long and a typical dealer using a modicum of the services available could either save or improve profitability by thousands of dollars. You’d have to be stupid not to avail yourself of association membership just for this facet of the NIADA, alone. Then state associations provide even more attachments, such as coupons for services at auctions and the important relationships at the legislature. Even members of the NAAA can access these benefits too. Wear the websites out and join your state association today.
of best practices, performance groups, financial comparisons and operational reviews. Convention educational sessions are designed and put on to enrich meetings in Las Vegas in other ways than cash. These modules are also offered at state meetings and conventions. All this is further supported with video training segments aired on NIADA TV. They run training programs for allied industry members under an Ambassador program that mirrors the training available to dealers. Scott Lilja who runs the Member Benefit Services gave another report that stopped me in my tracks. This guy is like “Q” is to James Bond but instead of
1. With pistons, it operates poppet valves 2. GMC crossover SUV 3. Civic or Corolla competitor 4. Mitsubishi ___ Summit 5. ____ the engine, accelerate 6. Truck type 7. 2nd in the family 8. Gear position 9. Ferrari symbol 13. Environment protectors, abbr. 14. Prefix for “angle” 19. Top-selling Toyota 20. Sport -- (4WD vehicle) 24. Visual statistics aid 25. Showed off for the first time 27. Cadillac first introduced in 1981 30. City on the Rhine 33. SUV from Subaru
34. Gone by days 35. Luxury Hyundai 36. Measure of weight 37. Goes on the fritz 42. Lotus model 44. Freon, generically, abbr. 46. Decision to move forward
Answers to the 9/15/14 puzzle 1
S Y 37
I L T
T T I
Answers to this puzzle in the 10/6/14 issue. Call 1.800.794.0760 for a FREE subscription.
9/8/14 2:01 PM
ÛÝÛÛSeptember 15, 2014
USED CAR NEWS
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9/9/14 9:40 AM
Your KNOWLEDGE IS THE FORMULA FOR WINNING SEPT 15 – OCT 12
I N S T A N T LY
ION W I N@A U C T
01 02 03 04 WEEK ONE YOU FIND. YOU SCORE!
WEEK TWO PUMP UP YOUR BUYING.
WEEK THREE FLEX YOUR SELLING MUSCLE.
You’re in the car business to win, right? Knowing how to use the right tools to get the edge is the formula for winning. Let Manheim show you ways to be more effective and efficient when finding, buying, selling and managing inventory.
WEEK FOUR MASTER HOW YOU MANAGE.
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9/5/14 2:45 PM
FLIP YOUR DINNER AND YOUR USED INVENTORY, ALL AT THE SAME TIME.
With the SmartAuction® mobile app, you can run your life and your used vehicle inventory together. Conduct basic or advanced searches. Access saved searches from your profile. Place bids. View and respond to pending offers. Update price and auction status. And much more. All from virtually anywhere. Download the app for your iPhone® or Android™ mobile device at allysmartauction.com/mobile. Or call 877-273-5572 to learn more.
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12/18/13 12:21 PM
9/5/14 10:57 AM