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SEE OUR AD ON PAGE 11 September 21, 2015

ON THE WEB: Millennials Want Dodge Magnums Most of All

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NAAA Adds Remote Access to Convention

Dodge Magnum has a higher rate of Millennial buyers than any other vehicle on the usedcar market, according to a new analysis by Edmunds.com.

NHTSA Fines Triumph Motorcycles

The National Highway Traffic Safety Administration imposed a $2.9 million civil penalty against Triumph Motorcycles for violations of Safety Act reporting requirements and failure to fully respond to communications from NHTSA. Triumph must pay a $1.4 million cash penalty and must spend at least $500,000 meeting a series of safety requirements.

Off-Rental Prices Up Slightly, Remain Low

A straight average of auction prices for rental risk units bumped up from July’s low, but remained below 2013 and 2014 levels, according to Manheim. The average mileage on rental risk units fell to its lowest level since October.

Rush - Dated Material

Photo by Jeffrey Kowalsky SEE YOU IN ORLANDO: Incoming NAAA President Mike Browning, left, and outgoing NAAA President Ellie Johnson visit Detroit in August.

Members of the National Auto Auction Association are gathering in Orlando Sept. 22-24 for the group’s annual meeting. But those who can’t attend this year can still gain knowledge from the event. A webinar at 2 p.m. on Sept. 24 will address the

“Top 100 Arbitration Questions Answered in 60 Minutes.” Industry arbitration expert Matt Arias, Manheim’s director of operational excellence, and Paul Lips, ADESA’s executive vice president of operations and finance, will headline the

event. NAAA CEO Frank Hackett will moderate. Those interested in the event can sign up now to view the webinar. This session also offers the opportunity to join in the question and answer portion with the live studio audience. Those who want to

submit questions can email them to Arias during the interactive program. Those who make the trip to Florida will get the chance to hear some nationally recognized speakers, including political consultants James Carville and Mary Matalin.

AutoNation Commits to Repair All Recalls Before Cars Sold The nation’s largest used-car retailer announced a policy to not sell, lease or wholesale any new or used vehicle that has an open safety recall. AutoNation Inc. announced that this policy will apply to each of its 293 new-car stores across the U.S. “There’s no way to expect that customers would or should know of every safety recall on every vehicle they might purchase, so we will ensure that our vehicles have all recalls completed,” said AutoNation CEO Mike Jackson. “We make it our responsibility as a retailer to identify those vehicles and remove them from the market until their safety issues have been addressed.”

Under the policy, all vehicles with open safety recalls are identified, physically pulled from inventory and “Not For Sale” hang tags and key tags will be placed on them. This move follows recent criticism of CarMax Inc. for selling vehicles with unrepaired recalls. AutoNation has the ability to fix these vehicles because it operates only franchise stores. “The current recall system is based on the manufacturer’s relationship with its dealers and registered vehicle owners, and not with independent used auto retailers, like CarMax,” said CarMax spokesperson Casey Werderman. CarMax does share recall information with its customers.

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USED CAR NEWS

September 21, 2015 • 3

Changing Workforce Brings Leadership Challenges By Jeffrey Bellant

FORT WORTH, Texas – Today’s workforce includes four different generations – a first in history – making it even more challenging for leaders to manage and motivate employees. Helene Lollis, president of the consulting firm Pathbuilders, recently lead a workshop at the International Automotive Remarketers Alliance Roundtable here to show remarketers what this new dynamic means for their businesses. Using group exercises, Lollis asked the audience to remember where they were during events ranging from the death of Martin Luther King Jr., and the marriage of Prince Charles and Diana, to the fall of the Berlin Wall and 9/11. For one generation, the Beatles’ first appearance on the Ed Sullivan Show might be a defining memory, while a younger generation may think the same about the death of Michael Jackson. “Shared experiences literally shape our view of the

world,” Lollis said. The point is there are shared experiences that many generations have and other experiences that may only be important to one generation. This impacts how people interact in the workforce via leaders and their staffs. The four different generations in the workforce include: Traditionalists (born before 1946); Baby Boomers (1946-1964); Generation X (1965-1980); and Generation Y/Millennials (1981-1994). The problem with this is that different generations can interpret events or problems in completely different ways. The goal for leaders is to tailor their efforts in communication and motivation in a way that hits home with different generations. For example, Millennials grew up shaped by the Internet, so communication by text or other digital tools will be more successful than a phone call. But Baby Boomers may still prefer a phone call to a text and a Generation X

Photo by Jeffrey Bellant TALKIN’ ‘BOUT MY GENERATION: During the recent IARA Roundtable, Helene Lollis of Pathbuilders discusses the challenges of leading a workforce of multiple generations.

employee may use email as a primary tool. Adapt your modes of communication with the person you are trying to lead or sell to, Lollis said. Career expectations also vary by generations, as Traditionalists expect to work a lifetime with one employer and see leadership based on hierarchy.

Millennials, on the other hand, expect to have varied careers and expect leadership through guidance and motivation. Lollis said a Traditionalist might be motivated by money and public recognition, while a fun workplace and continuous learning motivate a Millennial. Generation employees may

see time-off and skills training as good motivation while Baby Boomers look for promotion and the corner office. The key is to line up leadership techniques to the individual, whether it’s communication tools, motivation or even understanding how to build trust – which may all vary based on the generation you are dealing with.

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4 • September 21, 2015

USED CAR NEWS

NEWS BRIEFS Subprime Firm Secures Funding

and, more importantly, will develop the winning F&I product for the retail automotive marketplace. The company will also return a percentage of the product’s revenues to Northwood University. The students must research, rationalize and demonstrate the market viability of the new product, and its potential to facilitate F&I product sales in franchise dealerships. In addition, the teams will keep video diaries of their progress, challenges, breakthroughs, etc., that will be Firm, Northwood University Sponsor uploaded to YouTube each week. The competition will run from Sept. F&I Contest EFG Companies and Northwood 7 to Nov. 13. University will hold an F&I competition designed to jolt the automotive industry into a higher standard Sam’s Club Offers Used Car Program to Members of innovation. Sam’s Club, the warehouse diviThe F&I Innovator of the Year sion of Wal-Mart Stores Inc., anAward, to be held annually, will pit six teams of Northwood’s junior and nounced its new Auto Buying Prosenior undergraduate automotive gram, which promises guaranteed marketing and management stu- savings off the manufacturer’s sugdents against one another to concep- gested retail price (MSRP) on new tualize and build a new F&I product cars and access to exclusive member while earning course credit. A panel savings on used cars. TrueCar now powers the all-new of leading dealer principals, EFG Auto Buying Program. executives, and Northwood’s At launch, Sam’s Club members automotive program educators will judge each team’s business case in will have access to more than 10,000 November. EFG Companies will TrueCar Certified Dealers nationaward the winning team $25,000, wide. Pelican Auto Finance LLC announced the closing of a new $100 million warehouse funding facility with Wells Fargo Securities LLC. The facility represents a substantial expansion and extension of Pelican’s previous funding capacity. The new warehouse funding allows Pelican to increase penetration with existing dealers and execute on geographic expansion.

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Western Funding Inc. announced its first two dealers to receive their second payment as part of its Triple Pay program. Vegas Valley Motors is the first dealership to receive its second payment in the amount of $25,000. The second dealership, Hollywood Preowned, received a $15,000 second payment. Triple Pay is Western Funding’s program that gives dealers the opportunity to build a portfolio of accounts and share in the profits of each deal. The program gives the dealers three opportunities to receive payment on the same contract. Dealerships maximize their profits by earning up to 50 percent of the interest collected and the entire principal as the customer makes payments.

Columbus Fair CEO Steps Down

years as CEO and an owner of the business.

Copart Names Winner in Rebuild Contest

Copart Inc. recently announced the top three winners of its second annual 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 $2,000 grand prize. A panel of Copart judges narrowed the contest entries to 10 finalists, and then the public submitted thousands of votes to select the three finalists. Entrants ranged from hobbyists to professional body shop owners. Thomas Lea-Anderson from Michigan was named the $2,000 grand prize winner.

Whann Technology Group announced that founder Keith Whann will be overseeing the day-to-day operations of the company. Whann has stepped down from his duties as CEO of Columbus Fair Auto Auction. Whann has been part of the CFAA team since 1987, serving the past 10

C R O S S WO R D by Myles Mellor

PAGE 28

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

Advertising: Shannon Colby, Account Manager Megan Frump, Account Manager Marie Hingst, Account Manager

Contributing Writers: Ed Fitzgerald, Jenny King, Sheila McGrath

Circulation: Emily Brown Baker, Helen Thomas

Columnist: Tony Moorby

Production: Josie Godlewski, Media Manager Tim Montie, Graphic Designer

Vol. 21 • No. 12 Used Car News is published the first and third Monday of each month.

Call Leah Bar today at 888-762-9889, x103 for more information.

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. OUR ADVERTISING APPROVAL POLICY Please submit clear, legible copy. Payments from first time advertisers must accompany the insertion order. Distribution is guaranteed by U.S. Postal Carriers. The advertising reservation deadline is 5:00 p.m. Friday, 10 days prior to the issue date. Camera ready ads must be received by noon on Monday prior to the issue date.

Join the Conversation! 888.762.9889 I www.atlasacq.com

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Visit Used Car News online at www.usedcarnews.com or scan this QR code with your smartphone to be taken directly to the website.

9/14/15 3:05 PM


USED CAR NEWS

September 21, 2015 • 5

Auction Marks Anniversary of Broadcast Sale

State Line Auto Auction, in Waverly, N.Y., is celebrating a major milestone for the entire industry Oct. 12 – the 20th anniversary of broadcast selling. It was on that date in 1995 that the auction offered vehicles both “live” and “electronically” in a General Motors closed auction. There were 400 vehicles offered that day, and all were sold with 125 bidders in attendance on the floor, and 15 dealers bidding remotely from their stores. These remote bidders purchased 45 cars. The sale was run by the Campus Group, which had developed a device that allowed medical conference attendees to “vote” electronically with the capability of tabulating and recording these “votes” from many remote locations simultaneously. Founder Steve Campus had tried unsuccessfully to get several manufacturers interested in his concept before contacting ServNet. State Line owner Jeff Barber said he would be willing to “give it a try” if a consignor would go along. That consignor wound up being GM. They utilized satellite technology, which was available at that time from the “rooftops” of convention hotels. Many General Motors dealerships had similar equipment

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for the use of their parts departments. State Line’s sales and marketing team was able to gain permission for remote bidding using the existing equipment. The satellite trucks set up in Waverly that day had come from the recent U.S. Open Tennis Tournament. In an odd twist, GM had to “buy back” the satellite time slot between 10 a.m. and 2 p.m. from Chrysler Corp., to which it had previously been sold. State Line had already conducted a couple of dry runs during the summer. The first vehicle sold to a remote bidder in conjunction with a live auction was car No. 8 that day. It was sold to George Marble, used-car manager for Farnsworth Chevrolet of Canandaigua, N.Y. Farnsworth bought eight cars remotely, and another dealership, Bob Johnson Chevrolet, bought 12. Of the fifteen dealers signed on remotely, only two failed to buy at least one vehicle. GM planned on rolling out a satellite sales program in 1996, following the success of this event. However, personnel changes at the company and the rise of Internet derailed the program.

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6 • September 21, 2015

USED CAR NEWS

Vegans Drive Move Away from Leather Interiors

DETROIT (AP) - Tesla Motors shareholders Mark Peters and Elizabeth Farrell Peters had a simple request for the electric-car maker at its annual meeting in June: Stop offering leather interiors and make Tesla the first “cruelty-free� premium brand. Shareholders rejected the proposal after Tesla’s board said it would delay production of its electric cars. But Tesla CEO Elon Musk seemed intrigued. “We’ll look into it,� he said. Last month, they took delivery of a leather-free Tesla Model S, the second one in their Hurst, Texas, garage. For car buyers like the Peters who have been vegans for more than two decades – leather-free choices are limited. The car-buying site Edmunds.com says 78 percent of 2015 model-year vehicles have standard leather seats on at least one trim level. In other words, buyers content with basic models can get cloth seats and plastic steering wheels, but as they add options like better engines, heated seats or upgraded speakers, they usually have to add leather seats. Edmunds says 79 vehicles in the 2015 model year don’t require buyers to get leather at any trim level.

Those include the Toyota Prius hybrid, the BMW 3 Series and the Volkswagen Jetta. But even some models with cloth or faux-leather seats – like the plugin hybrid Chevrolet Volt – still have leather-wrapped steering wheels. That’s not likely to change any time soon. Most customers worldwide equate leather with quality, richness and comfort, says Mel Stephens, a spokesman for automotive seat-maker Lear Corp. “Vinyl is good, but leather is better,� he said. “People like natural materials.� Luxury automakers, including Audi and Cadillac, say requests for non-leather interiors are rare. Even when they get them, highvolume automakers can’t necessarily stop the assembly line and make a personalized car. Ford won’t replace leather seats at the factory, for example, but says dealers can install different seats if a customer requests them. David Peters of DLP Advisors, a leather-industry consulting firm, forecasts continued growth in automotive leather over the next decade as luxury car sales increase worldwide, particularly in China. Automakers used around 2 billion square feet of leather in 2014,

NO MOO: This Tesla Model S features a leather interior. Tesla now also offers a non-leather option for vegans.

or around 45 million cowhides; that was 17 percent of the global supply of hides. By 2025 that could grow to 25 percent Peters said. A vehicle interior usually requires two or three hides; some high-end luxury vehicles, like the Rolls Royce Phantom, use as many as nine. Environmentalists and animal rights groups say leather tanner-

ies pollute land and water with chemicals like chromium, which the U.S. government classifies as a carcinogen. Raising, processing and transporting livestock also accounts for an estimated 14.5 percent of all greenhouse gas emissions, according to a 2013 report by the United Nations Food and Agriculture Organization.

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8 • September 21, 2015

NAAA CONVENTION

USED CAR NEWS

INCOMING PRESIDENT PROMOTES COMMUNITY (Mike Browning, general manager of Manheim San Antonio, is the incoming president of the National Auto Auction Association.) UCN: What is your background? Browning: I’ve been in the automotive world since I got out of school. I was in retail for 14 years. I did everything from wash cars to sell them. I ended up as the general manager of a Toyota store. I got in the auction business in 2003. I worked at Manheim New Orleans. I became general manager in 2005. I became general manager in June and then, on Aug. 29, Katrina hit. I became general manager Each chapter will have its of Manheim Mississippi in 2008 and then last year I became general manager at Manheim San Antonio. own winner that will receive a $5,000 prize for the chariUCN: It seems like there ty of their choice. Then we’ll has been a lot of move- announce the overall winner ment at Manheim and at the 2016 convention. We’ll throughout the entire auc- give $10,000 to the charity of tion industry. How does their choice. that affect your role as This goes back to my New president? Orleans roots. That was Browning: It’s an excit- when I learned that coming time. A lot of people are munity involvement is really actually having fun again. important. There’s a little apprehension with all the change, UCN: You must have but change has been a word done a lot for the commuloosely used in the past and nity in 2005. it’s real now. That’s a good Browning: And the comthing. munity did a lot for us. You Every one is trying to got to really see some of the find their niche with all the best in the people in our changes, both in the lanes community and our comand online. pany. Cox was amazing. The employees all banded toUCN: What are some of gether. your goals? And then there were the Browning: We are go- dealers. The dealers did a ing to launch an award for tremendous job. It was a full community involvement. It circle of family and friends will be called ‘Auction of the that was amazing. Year for Excellence in ComThere’s a lot of that out munity Service.’ It will really there. We want to get it out highlight what out auctions in the open and push it. do in each of their communities. UCN: How important is There is a lot of great work politics becoming for the from people who don’t even NAAA? ask for recognition, but deBrowning: The collecserve it. There are also auc- tive efforts of the NAAA, the tions that could do more. We National Automobile Dealwant to highlight some of the ers Association and the Nagreat things that we do and tional Independent Automothe great people that we have. bile Dealers Association are

Photo Credit: Jeff Kowalsky

focused on protecting our auctions and our dealers. Our recent success in Washington shows that we can mobilize when we stay aware. A few years ago, I don’t know if you would have seen that level of awareness. UCN: What goal do you have for the membership? Browning: We have to get more young people involved. We have some tremendous talent out there, but they haven’t heard the call to arms yet. We need to talk about involvement. A lot of times we just sit on the sidelines until we’re asked to get involved. UCN: What was it like spending the past year traveling to different auctions? Browning: Eye-opening. It’s been a really fun year for me. What I learned is the owners and their employees enjoy us visiting. They’re very proud of their facilities and it’s an opportunity for them to show their peers what they do and how they do it. It was an important opportunity for me to learn different tips and tricks. UCN: Any final message? Browning: Open your hearts, open your minds, it’s going to be a good year.

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10 • September 21, 2015

USED CAR NEWS

Outgoing President Stresses Safety at Sales (Ellie Johnson, general manager of Manheim North Carolina, is the outgoing president of the National Auto Auction Association.) UCN: How would you describe your year as NAAA president? Johnson: It went by a lot faster than last year did. It was very good. I had a lot of good visits with auction owners, auction general managers and at some of the corporate locations. We made it to 15 or 20 auctions. UCN: What is the state of the auction industry? Johnson: The chains, even the smaller chains, are buying auctions and building greenfield auctions. We’re seeing increases in volumes throughout the industry. We visited a couple of locations that were adding lanes.

Photo by Jeff Kowalsky

UCN: What did you learn during your time as president? Johnson: It doesn’t really matter if you’re an independent or a chain location; it all comes down to service. It all comes down to how we treat out customers. All the locations we visited were great, but there were a couple where you could tell as soon as you walked in the door that not only were the employees glad to work there, but the customers were glad to be there as well,

and take pride in the facilities. You can see it.

UCN: What do you consider your biggest accomplishment as president? Johnson: The safety program we’re kicking off. We’re planning on rolling that out Jan. 1. It is a big initiative. We made a lot of headway there. It’s going to be really good for the industry. It’s going to be good for our customers. It’s going to bring to light an awareness that we’ve always had that safety is something we really need to pay attention to. UCN: What do you wish you had more time to get to? Johnson: I’d really like to have been able to roll out the safety program before the convention. It’s taken a lot of work, with a lot of different moving parts. I think we’ve gotten far enough along with it. It’s going to be a success and Mike (Browning) is going to do a good job seeing it through. The whole industry is going to take ownership of it. UCN: Any parting words? Johnson: Mike is going to do an awesome job. There is still a lot of passion for what we do. We’ve seen it as we’ve traveled across the country.

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12 • September 21, 2015

USED CAR NEWS

Ally Seeks Claimants By Ted Craig

68 Years Can’t Be Wrong.

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Buy-here, pay-here dealers may find this hard to believe, but their situation with the Consumer Finance Pro tection Bureau could be a whole lot worse. The CFPB opted for enforcement authority only over buyhere, pay-here, rather than including superviNicholas sion authority Smyth as it did with the finance companies. “Supervision is the much more powerful and invasive authority,” said Nicholas Smyth of the law firm Reed Smith. The CFPB’s supervision staff is three times the size of its enforcement staff, Smyth said. Smyth was the lead attorney in DriveTime’s enforcement action from the CFPB. The buy-here, payhere chain paid $8 million to settle claims and agreed to change its debt collection and credit reporting practices. He said the CFPB could decide in the future to expand its supervisory authority to cover the largest buy-

here, pay-here dealers such as Drive Time and America’s Car-Mart Inc. The enforcement actions are bad enough. Smyth said Ally Financial Inc. is finding itself in the strange situation of not only having to pay $80 million to consumers, but also determining who those consumers are. Ally agreed to pay that amount in 2013 to settle a disparate impact claim from the CFPB. This means the firm’s finance policies allegedly harmed minorities even though Ally collected no direct data on race or ethnicity. Ally must now send out questionnaires to all the consumers the CFPB estimates are affected minorities and verify that they are in these groups. Smyth said the response in similar class action settlements have been 20 percent. It can prove challenging for companies to even prepare for an examination because details are kept confidential. For example, several banks recently settled with the CFPB for $56 million based on disparities identified in examination. However, the supervisory action was nonpublic. Smyth said this means the institutions paid a large price but avoided public embarrassment.

9/14/15 3:35 PM


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14 • September 21, 2015

USED CAR NEWS

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A California city that’s struggling to draw more people downtown is looking at a proposal that would gradually edge auto-related businesses out of the downtown area. In their place, city officials hope to see hotels and microbreweries. At an August meeting of the Gilroy City Council, City Planning Manager Susan Martin introduced a report looking at ways to beautify main roads into the city of 52,000 residents, and make the downtown area more inviting. According to her report, autorelated businesses line many of the city’s most visible commercial corridors, but provide minimal landscaping and streetscape amenities. She proposed urging car dealers and mechanic shops to move to a new Auto Mall Parkway roughly 3 miles away. Under the proposal, existing businesses would be grandfathered in and would not be forced to move, Martin said. But if a dealership changes ownership or closes its doors for more than 120 days, it might not be allowed to reopen in the same place. If a car dealer were allowed to open in the downtown area, she said, it would be opened under

O r i g i n a l

F A L L

a conditional use permit, giving the city more control over its appearance. “The intent is not to put operators out of business per se,” she said. “We really want to look at future businesses coming in.” Mark Salos, owner of Simple Auto Sales on Monterey Road in downtown Gilroy, said he didn’t think the proposal would ever become reality. “There are a good seven or eight dealers like myself in the downtown area,” he said. “I don’t know how it could be done – the infrastructure isn’t there.” And Salos said he wouldn’t have any interest in moving to the Auto Mall Parkway. “I never did think that was a good location to begin with,” he said. The discussions, he said, are “just a reflection of the times.” Two council members objected to the proposal, saying it would be an extra, burdensome layer of regulation designed to drive car dealers out of town. “We have businesses out there that have been in business longer than I’ve been alive,” said Council Member Perry Woodward. “I don’t want to see them become empty lots because we’re aggressively pushing people to some other location. Continued on page 16

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16 • September 21, 2015

USED CAR NEWS

Draw – from page 14 “I don’t think that’s right,” Woodward said. Council member Dion Bracco said many of the small dealerships in the area wouldn’t be able to relocate to the auto mall due to the cost of moving. And if the city moves out all the car lots and mechanic shops, “half the buildings downtown will be empty again,” he said. “Auto-related businesses bring people downtown – there’s traffic,” Bracco said. The August meeting was just the beginning of the discussions, Martin said, and many future meetings would be required before any action is taken. City Administrator Thomas Haglund said a specific date for further discussion has not been set,

and the city council has not taken any specific actions or held further discussions on the matter since August. But Mayor Donald Gage said discussions about how to revive the downtown area need to happen. A few years back, he said, the area was full of antique stores, but now there are only a handful still in business. “Fifty antique stores there didn’t cut it,” he said. “You’ve got to get the attraction there or you’re never going to be successful. We’re looking for restaurants, things like that. “This is an opportunity for us to say ‘What is it that we don’t want to be in the downtown area, that won’t help us progress, and where do we put them?”

Store Gets Titles Out of State

LINCOLN, Neb. (AP) — A low car-titling fee in Nebraska likely prompted an out-of-state dealership to turn to the Lancaster County Department of Motor Vehicles for such certificates. LaBelle Chevrolet of Bridgewater, Mass., has requested and received nearly 3,000 car titles from the Lancaster County DMV since February, said Don Arp, motor vehicle

manager for the Lancaster County Treasurer’s office. The Nebraska DMV charges just $10 per title, while Massachusetts charges $75. Nebraska allows out-of-state companies to get newly purchased vehicles inspected outside of Nebraska and then have those inspection documents sent to DMV offices in Nebraska for titling.

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Your source for quality, value, selection: Chase. A broad selection of pre-owned vehicles from an industry leader. October 2015 Chase High Lines, featuring Jaguar Land Rover Financial Group

Chase ADESA Boston October 2, 9, 23,30 508-626-7000

Manheim Atlanta October 1, 14, 15, 29 404-762-9211

Manheim Orlando October 6, 13, 20, 27 800-337-8491

ADESA Charlotte October 1, 15, 29 704-587-7653

Manheim Dallas October 7, 21 877-860-1651

Manheim Pennsylvania October 1, 2, 15, 16, 29, 30 800-777-2053

ADESA Cincinnati/Dayton October 27 937-746-4000

Manheim Denver October 21 800-822-1177

ADESA Golden Gate October 13, 27 209-839-8000

Manheim Detroit October 1, 15, 29 734-654-7100

ADESA Houston October 14, 28 281-580-1800

Manheim Fredericksburg October 8, 22 540-368-3400

ADESA Indianapolis October 13, 27 800-925-1210

Manheim Milwaukee October 7, 21 262-835-4436

ADESA Kansas City October 13, 27 816-525-1100

Manheim Minneapolis October 14 763-425-7653

ADESA Lexington October 29 859-263-5163

Manheim Nashville October 6, 7, 28 877-386-5004

ADESA Tulsa October 9 918-437-9044

Manheim Nevada October 2, 30 702-361-1000

ADESA Washington DC October 21 703-996-1100

Manheim New Jersey October 7, 14, 21 609-298-3400

America’s AA-Chicago October 28 708-389-4488

Manheim New Orleans October 7 985-643-2061

Brasher’s Salt Lake AA October 6 801-322-1234

Manheim Ohio October 6 800-477-6446

Manheim Phoenix October 1, 8, 15, 22, 29 623-907-7000

ADESA Boston October 2, 30 508-626-7000

Manheim Milwaukee October 21 262-835-4436

Manheim Pennsylvania *October 1, 15, 29 800-777-2053

ADESA Golden Gate October 13 209-839-8000

Manheim Nashville October 28 877-386-5004

Manheim Riverside October 22 909-689-6000

Manheim Atlanta October 14 404-762-9211

Manheim Ohio October 6 800-477-6446

Manheim Dallas October 7 877-860-1651

Manheim Orlando October 20 800-337-8491

Manheim Pittsburgh October 21 724-452-5555

*Only Jaguar and Land Rover vehicles will be sold on October 1 and October 29. All other high lines, excluding Jaguar Land Rover, will be offered on October 15.

Manheim Riverside October 20, 22 909-689-6000

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Manheim Seattle October 14 206-762-1600 Manheim Southern California October 1, 15, 29 909-822-2261 Southern AA October 21 860-292-7500

Columbus Fair AA October 7, 14 614-497-2000

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ADESA Boston October 9, 23 508-626-7000

Manheim Detroit October 1, 15, 29 734-654-7100

ADESA Golden Gate October 27 209-839-8000

Manheim Fredericksburg Manheim Pennsylvania October 8 October 2, 16, 30 540-368-3400 800-777-2053

ADESA Houston October 14 281-580-1800

Manheim Milwaukee October 7 262-835-4436

Manheim Pittsburgh October 21 724-452-5555

Columbus Fair AA October 7 614-497-2000

Manheim Nashville October 7 877-386-5004

Manheim Riverside October 20 909-689-6000

Manheim Atlanta October 15 404-762-9211

Manheim New Jersey October 7, 21 609-298-3400

Manheim Seattle October 14 206-762-1600

Manheim Orlando October 27 800-337-8491

Subaru Motors Finance ADESA Boston October 9 508-626-7000

Manheim Detroit October 1, 15, 29 734-654-7100

Brasher’s Salt Lake October 6 801-322-1234

Manheim Fredericksburg Manheim Pittsburgh October 22 October 21 540-368-3400 724-452-5555

Columbus Fair AA October 14 614-497-2000

Manheim Milwaukee October 21 262-835-4436

Manheim Seattle October 14 206-762-1600

Manheim Dallas October 7 877-860-1651

Manheim New Jersey October 7 609-298-3400

Manheim Southern CA October 1 909-822-2261

Manheim Denver October 21 800-822-1177

Manheim Orlando October 20 800-337-8491

Southern AA October 21 860-292-7500

Manheim Pennsylvania October 2, 30 800-777-2053

*The tradename “Subaru Motors Finance” and the Subaru logo are owned / licensed by Subaru of America, Inc. and are licensed to JPMorgan Chase Chase Bank, N.A. (“Chase”). Retail / Loan and lease accounts are owned by Chase. *The Jaguar word mark, the Jaguar logo, and Jaguar Financial Group are trademarks of Jaguar Land Rover Limited and any use by Chase is under license. The Land Rover word mark, the Land Rover and Oval logo, and Land Rover Financial Group are trademarks of Jaguar Land Rover Limited 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 Chase. Retail / Loan and lease accounts are owned by Chase. JPMorgan Chase Bank, N.A. Member FDIC ©2015 JPMorgan Chase & Co. (14-723) 10/14

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18 • September 21, 2015

USED CAR NEWS

Consumers Know Little About Safety Technology DETROIT (AP) – Adaptive cruise control has been an option on some cars for almost a decade. But in a recent national survey, 65 percent of U.S. drivers didn’t know what it was. The survey, by the University of Iowa Public Policy Center’s Transportation and Vehicle Safety program, suggests big gaps in the public’s knowledge about potentially life-saving features. Based on the responses, the university and the National Safety Council have developed a new Web site - http:// mycardoeswhat.org - to teach drivers about new features, from tirepressure monitoring systems to automatic emergency braking. The site is one of several places where car owners and shoppers can learn about safety technology. The federal government’s auto-safety website – http://www.safercar.gov – lists crash-test results and uses icons to highlight cars with recommended safety features, including lane-departure warning and forward-collision warning. The Insurance Institute for Highway Safety – http://www.iihs.org – also explains key collision-avoidance features like automatic braking, and lists which cars have them. Carmakers - prodded by government regulators and public crash-

test rankings – are rapidly adding safety features. By 2018, for example, the U.S. will require all new vehicles to have backup cameras. But at the same time, cars are getting more reliable and lasting longer, so millions of people driving older cars may not be familiar with the latest safety options. The average vehicle on U.S. roads is now 11.5 years old older than adaptive cruise control. Daniel McGehee, who conducted the survey, was surprised to find that even car dealers and service department managers weren’t always familiar with new safety features. “The technology is changing so quickly they don’t have a good understanding,” said McGehee, the director of the Transportation and Vehicle Safety Research program. The survey, which questioned 2,015 people last September about nine safety features, found that 92 percent of drivers had heard of antilock brakes, which have been common on cars since the 1980s. But only about half had heard of more recent options like lane-departure warning, which gives an audible warning or vibrates to warn drivers when the car leaves its lane, or forward-collision warning, which alerts drivers to an imminent crash. Ninety-four percent were aware

of cruise control, which keeps the vehicle at a set speed on the highway. But only about one-third had heard of its more advanced sibling, adaptive cruise control, which maintains a set speed and distance from the car ahead and can accelerate or brake on its own. It used to be a feature on luxury cars, but as radar and cameras have gotten cheaper, it’s being added to mainstream vehicles like the Honda CR-V and the Mazda 6.

Even features that are standard on every car caused some head scratching. Only 55 percent of drivers were familiar with tire-pressure monitoring systems, which have been mandated by the U.S. government since 2007. The system alert drivers, usually with a dashboard message, when one of the tires is underinflated. McGehee said drivers might not realize they have a feature like that because their tires are properly inflated.

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20 • September 21, 2015

USED CAR NEWS

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Store Pays for Violations A New Jersey judge has ordered a used-car dealership to pay $693,645.91 after finding that it violated the state’s consumer protection laws and regulations a total of 640 times. The state’s 10-count complaint, filed in March, alleged that RLMB Inc., located in Ledgewood, and its manager, Michael L. Bloom Sr., violated the Consumer Fraud Act, the Motor Vehicle Advertising Regulations, the Automotive Sales Regulations, the Used Car Lemon Law by, among other things, advertising used motor vehicles for sale without disclosing to consumers the vehicle’s prior damage or prior use; selling vehicles “as is” when they qualified for a warranty; and permitting third parties to advertise, offer for sale and/or sell used motor vehicles on Craigslist that were titled to RLMB. The defendants failed to file a response to the complaint, resulting in Judge Stephan C. Hansbury entering a final judgment by default. The judgment requires the defendants to pay $640,000 in civil penalties, $31,200.91 in reimbursement to the state for its legal and investigative costs and $22,445 in restitution to seven consumers. “The penalty ordered in this matter is appropriate and should send a clear message to all motor vehicle dealerships that violating our consumer protection laws and regulations comes at a steep

price,” said Acting Attorney General John J. Hoffman. “We are continuing to review the practices of new and used motor vehicle dealers to ensure consumers are not taken advantage of.” The state, in its complaint, alleged that RLMB: • Failed to provide consumers with title and registration to used motor vehicles prior to the expiration of temporary title and or registration; • Required that consumers sign blank sales documents; • Offered used motor vehicles for sale at the dealership location that did not have prominently displayed the Federal Trade Commission Used Car Buyers Guide, a document which, among other things, indicates whether such vehicle comes with a warranty; • Offered for sale used motor vehicles that did not have the total selling price conspicuously posted; • Advertised and/or offered for sale used motor vehicles through the RLMB website, without the required statement that “price(s) include(s) all costs to be paid by a consumer, except for licensing costs, registration fees and taxes;” • Failed to itemize documentary service fees; and • Since at least 2007, failed to pay the $0.50 administrative fee for each used motor vehicle sold, as required by regulations.

Protection Brings Problems C

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CONCORD, N.H. (AP) – John Deere and other farm and heavy equipment manufacturers told the New Hampshire Supreme Court that a new state law looping them into protections designed for automobile and truck dealers unconstitutionally interferes with their existing and future contracts with dealers. Lawyers for John Deere and the state faced off over the socalled Auto Dealers Bill of Rights law, which lawmakers expanded to encompass manufacturers of tractors and yard and garden equipment. “It protects dealers and, I would argue, it hurts consumers,” attorney Gordon MacDonald, representing John Deere, told the court. Because the law is retroactive, it affects every existing contract the company has with dealers, he said. Assistant Attorney General Francis Fredericks argued that the new law is a merger of laws that previously dealt separately with automobile manufacturers and farm and tractor manufacturers. The new law bars manufacturers from terminat-

ing contracts with dealers without just cause and places the burden on the manufacturers to justify any terminations. “It’s about the regulation of a relationship,” Fredericks told the justices. “Termination is the overriding issue,’’ said attorney Gregory Holmes, arguing in support of the law on behalf of Frost Farm Service of Greenville, an intervener in the case. MacDonald argues that that undermines the essence of Deere’s contracts with its dealers. “We agree with the dealers to sell certain products, where they can sell them and who can sell them,’’ MacDonald argued, saying provisions of the new law violate constitutional protections. Attorney Brian Cullen, representing Kubota Tractor Corp., said the law amounts to “a hostile takeover” of the industry. Thomas Collin, a lawyer representing Husqvarna Professional Products, said applying the law to his client is “arbitrary and irrational.”

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22 • September 21, 2015

USED CAR NEWS

RETAIL MARKETS ARKANSAS

H.B. Willis, owner, Car Corner, Van Buren, Ark.: “I’ve been here 20 years. I have one location. “It’s rare that we have more than 10 to 12 cars for sale on the lot at a time. But we average 120 to 150 sales per month. “Most of our trucks are sold before they even get on the lot. We put them on our Web page. Our average turnaround on a car is about three days. “We’re a buy-here, payhere lot. We also do body work and we have a garage. “We go to auctions and we also have other venders that rebuild salvage cars for us. We rebuilt cars in our body shop for years, but we quit doing that about three months ago. “We don’t hide the fact that they have been rebuilt. When we sell it, it will generally be sold as a salvage title. But we put the affidavit of reconstruction with it and then it comes back as a rebuilt title.

“After President Obama pulled his Cash for Clunkers (effort), we went into rebuilt very heavy. Now, with the price of autos going down, it’s a smaller percentage of our business. Rebuilt makes up 25 percent of our (sales). “Our average retail price is $7,000 to $12,000. “The average model year is 2007 to 2012. Average mileage is 65,000, with a range of 40,000 to 100,000. “We have low down payments – 10 percent of selling price. The term length is two to three years. “We wish we had more SUVs and trucks. So many SUVs have been overpriced. “About 60 percent (of inventory) is cars. “About 80 percent of our cars are domestic. “I would say our average cost is $800 for (reconditioning). “We have one side of our shop totally devoted to customer repairs. If we sell you a car, we will work on the car until you no

longer own it. “Our other shop is for (prepping vehicles). “We have a Web page and we do some Facebook stuff. I’ve also run in (the local paper) for seven years. They have a special car section every Wednesday so we run in that. About 80 percent of our business (is referrals). “We sold a 2012 Kia Optima. It had 30,000 miles and sold for $12,500.”

FLORIDA

Scott Lanier, president, Credit Cars, Orlando, Fla.: “We’ve been in business since 1963. It is a secondgeneration business with one location. “We try and keep about 60 cars on the lot. That’s similar to last year. “We’re selling 75 per month. We’re up quite a bit since last year. “We’re up 20-cars-amonth since last year. We built a new facility on the same piece of property back in December. “But we also upped our advertising budget and

Compiled by Jeffrey Bellant we’ve been selling cars for $1 down, which has created a lot more traffic. We started that when we moved into our new building. Hence, we’ve got more sales out of it. “All we do is buy-here, pay-here. Our average term length is 42 months. For the price of the car we carry, we have to term it out that long to bring it down to a reasonable payment. “Our average down payment is $600, which is down from this time last year. “Every vehicle is equipped with a GPS. We only use it for location. We don’t use a payment device. “Ninety-five percent of our cars come from auction. “Average model year is a 2009. The average mileage would probably be 90,000 miles. It’s very similar to what it was last year. “It seems that cars are a little more available than they were last year. “We carry about 60 percent cars, 40 percent SUVs. Maybe pickups are about

2 percent. “The pickups are just hard to mark-up (because they cost more). “(Inventory) is probably 60 percent Asian imports to 40 percent domestic. “The reconditioning cost, on average, is about $800. “We have our own (repair) shop. We do our work in-house. We do very little outside work. We’ll only do it for a current customer that’s out of warranty. “On every vehicle, we put a month/30,000 mile warranty. “For advertising, we have a web page, a Facebook page and we do television commercials, some bulk emails we’ve done postcards in the past. We also push a referral program. The difference from last year is that we do more television. “We also give away five $1,000 college scholarships every year for customers or customers’ kids. “We recently sold a 2008 Chrysler 300. It had 92,000 miles. It sold for $12,995.”

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24 • September 21, 2015

WHOLESALE MARKETS TENNESSEE

Todd Rea, general manager, Dealers Auto Auction of Chattanooga, Chattanooga, Tenn.: “David Andrews owns this auction and he bought it in February 2014. The auction has been here since 19951996. “We actually have an eight-lane facility. We utilize five lanes. “We run about 650 cars per week. I would say our volumes are up about 15 percent, in that range. “Our ‘sold’ numbers are about 20 percent higher from this time last year. “We’ll average about 52 percent (conversion rates). “We’ve just gone out and really busted it. We’ve tried to find new business and get involved in the community as far as working with our used- and new-car dealers in the area, along with our local finance companies. We really try to concentrate on giving back and working with our dealer base. “Per week, we draw

250 dealers. “We have a small public sale that we offer on Tuesday nights. It’s mostly usedcar dealers who attend that sale. “We run vehicles from the Tennessee Valley Authority once a month. Then three times a year, we’ll run local government vehicles – police departments, sheriff’s departments, narcotics division, and drug seizures – about three times a year. “The Tennessee Valley Authority vehicles could be anything from the vehicles they have in service for their employees to ¾-ton trucks or box trucks. “The local government cars could be anything from police cars to the car the mayor might drive. “We have a TVA/local government sale coming up Oct.1 and we expect to have more than 200 units. “More than 95 percent of our volume is (dealer vehicles). But we also sell bank cars, repossessions, etc. “We run 75 to 100 in-op

cars once a month. “For online sales, we are associated with Auction Pipeline and with Liquid Motors which utilizes OVE. com, SmartAuction and OpenLane. It definitely is still a growing part of our business. “We also do lots of detail business. “Our average price coming through the lanes is $4,900 and I think that’s up from last year. “We sell a lot of off-lease vehicles from GE Fleet Services, Element and ARI.”

WASHINGTON

Dave Blake, general manager, DAA Seattle, Auburn, Wash.: “We celebrated our 2nd anniversary in May. During our first year, we changed our sale day from Tuesday to Friday. “We’ve been building our relationships over the last year. Our consignment has increased. It doubled over last year. “On an average week,

we’re running 700 to 750 units. During our promos, we’re running north of 1,000. Sales percentages are about 60 percent. “We have six lanes. We have two double blocks and the buyers love the sales arena. “You’re able to see the entire sales area wherever you are inside those lanes. “We draw 350 to 400 dealers in the lanes, plus our online (bidders). We use Edge Simulcast. We had guys on last week from Honolulu. “We have dealers from California, Oregon and Montana. Most of the traveling comes in from Washington, Vancouver, B.C., and northern California. But through online business, we’ve been shipping cars all over the place. “We have a good mix. About 65 percent is dealer consignment, 20 percent is fleet-lease and 15 percent is Canadian. “We have a full, beautiful reconditioning center. We can run two shifts a day.

USED CAR NEWS

Compiled by Jeffrey Bellant “Everything here has condition reports and they are posted online. We have a service shop for repairs. “A big part of the business is our post-sale inspection program called Buyer Protection Plan. About 50- to 60-percent of vehicles purchased will go through that program. “Trucks are always hot. It’s mostly all-wheel-drive or four-wheel-drive. But you do see two-wheel drive trucks. “The rail systems and transportation out here are reasonable. So it gives buyers the opportunity to ship things anywhere. “We have what we call our ‘heavy metal’ sale every two weeks. We’ll run 50 (units) – anything that can’t make it through the lanes safely or on its own momentum. “The market through September has been picking up in this area. I think September, October and November will be strong.” “The car market feels like it’s back.”

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TRUE COST OF INCENTIVES (TCI) August-’14

Compact Car

TCI $1,910 1 $13,842 2 $12,294 3 $11,106 4 $9,353 5 $7,504

Subcompact Car TCI $1,160 1 $13,001 2 $11,452 3 $10,752 4 $8,211 5 $6,852

Midsize Car

TCI $2,393 1 $16,572 2 $14,272 3 $12,799 4 $10,859 5 $9,472

Large Car

TCI $4,047 1 $19,048 2 $16,534 3 $15,310 4 $11,995 5 $9,809

August-’15

% Change ‘14-’15

$2,018 $12,813 $11,916 $10,629 $9,273 $7,665

5.65% -7.43% -3.07% -4.29% -0.86% 2.15%

$1,589 36.98% $11,717 -9.88% $10,576 -7.65% $9,635 -10.39% $8,242 0.38% $6,668 -2.69% $2,873 20.06% $15,846 -4.38% $14,209 -0.44% $12,109 -5.39% $10,094 -7.04% $8,895 -6.09% $3,603 -10.97% $21,222 11.41% $17,249 4.32% $14,343 -6.32% $12,465 3.92% $9,734 -0.76%

Compact Crossover Suv

TCI $1,684 1 $19,014 2 $16,464 3 $14,596 4 $12,380 5 $10,461

$1,653 $18,216 $16,937 $14,738 $12,312 $10,793

Midsize Crossover Suv

TCI $2,446 1 $22,110 2 $19,809 3 $17,571 4 $13,873 5 $12,326

$2,622 $20,849 $19,895 $17,341 $14,239 $12,146

-1.84% -4.20% 2.87% 0.97% -0.55% 3.17% 7.20% -5.70% 0.43% -1.31% 2.64% -1.46%

Midsize Traditional Suv

TCI $1,813 1 $25,948 2 $23,330 3 $21,533 4 $17,632 5 $14,114

$2,164 19.36% $26,874 3.57% $23,916 2.51% $21,308 -1.04% $19,333 9.65% $15,936 12.91%

Large Crossover Suv

TCI $3,696 1 $26,355 2 $22,649 3 $20,486 4 $16,013 5 $13,284

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$3,861 $27,287 $23,828 $20,319 $17,010 $13,156

4.46% 3.54% 5.21% -0.82% 6.23% -0.96%

August-’14

August-’15

% Change ‘14-’15

Large Traditional Suv

TCI $2,810 1 $34,542 2 $29,736 3 $27,216 4 $23,872 5 $18,205

Compact Truck

TCI $589 1 $21,711 2 $19,488 3 $16,702 4 $14,868 5 $13,119

Large Truck

TCI $3,900 1 $28,529 2 $25,993 3 $22,590 4 $18,836 5 $17,210

Minivan

TCI $2,811 1 $22,368 2 $20,089 3 $18,449 4 $12,945 5 $10,604

Van

TCI $2,337 1 $19,410 2 $17,740 3 $15,248 4 $12,428 5 $11,215

Entry Sport Car TCI $2,695 1 $21,458 2 $19,722 3 $18,727 4 $16,845 5 $13,268

$2,624 -6.62% $33,457 -3.14% $31,046 4.41% $27,459 0.89% $24,253 1.60% $20,867 14.62% $772 31.07% $22,205 2.28% $20,534 5.37% $18,290 9.51% $15,074 1.39% $13,882 5.82% $4,033 $29,447 $25,592 $24,051 $20,468 $17,621

$2,661 -5.34% $20,627 -7.78% $19,878 -1.05% $17,778 -3.64% $15,008 15.94% $10,010 -5.60% $1,856 -20.58% $21,893 12.79% $17,360 -2.14% $15,412 1.08% $13,972 12.42% $11,047 -1.50% $1,827 -32.21% $22,250 3.69% $19,562 -0.81% $17,403 -7.07% $15,924 -5.47% $15,217 14.69%

Midrange Sport Car TCI $1,547 1 $42,733 2 $34,500 3 $31,692 4 $27,995 5 $25,267

3.41% 3.22% -1.54% 6.47% 8.66% 2.39%

$983 -36.46% $46,429 8.65% $36,384 5.46% $30,461 -3.88% $30,037 7.29% $24,425 -3.33%

August-’14

August-’15

% Change ‘14-’15

Premium Sport Car

TCI $2,088 1 $75,520 2 $63,612 3 $66,022 4 $48,491 5 $42,937

Entry Luxury Car TCI $2,814 1 $26,878 2 $22,392 3 $21,335 4 $17,060 5 $14,538

Entry Luxury Suv

TCI $1,855 1 $31,665 2 $27,253 3 $24,469 4 $20,673 5 $16,293

$1,813 -13.17% $79,333 5.05% $64,922 2.06% $56,205 -14.87% $62,029 27.92% $44,517 3.68% $3,116 10.73% $27,353 1.77% $22,399 0.03% $19,138 -10.30% $17,109 0.29% $14,103 -2.99% $2,298 23.88% $30,823 -2.66% $27,580 1.20% $23,565 -3.69% $20,505 -0.81% $17,348 6.48%

Midrange Luxury Car TCI $3,965 1 $37,675 2 $33,754 3 $30,020 4 $21,823 5 $16,932

$3,022 -23.78% $37,568 -0.28% $31,418 -6.92% $27,679 -7.80% $23,059 5.66% $17,987 6.23%

Midrange Luxury Suv TCI $1,025 1 $43,192 2 $38,123 3 $30,363 4 $25,986 5 $21,818

$1,249 21.85% $44,248 2.44% $36,862 -3.31% $30,602 0.79% $25,452 -2.05% $21,192 -2.87%

Premium Luxury Car

TCI $2,987 1 $61,542 2 $49,665 3 $44,224 4 $35,325 5 $27,833

$4,477 49.88% $62,402 1.40% $49,517 -0.30% $39,162 -11.45% $36,162 2.37% $29,853 7.26%

Premium Luxury Suv

TCI $3,135 1 $57,315 2 $46,947 3 $40,113 4 $31,749 5 $27,163

$2,487 -20.67% $59,319 3.50% $51,051 8.74% $39,807 -0.76% $34,239 7.84% $25,750 -5.20%

Edmunds.com’s monthly True Cost of Incentives (TCI) report takes into account all of the manufacturers’ various United States incentives programs, including subvented interest rates and lease programs as well as cash rebates to consumers and dealers. To ensure the greatest possible accuracy, Edmunds.com bases its calculations on sales volume, including the mix of vehicle makes and models for each month, as well as on the proportion of vehicles for which each type of incentive was used. TCI data (and other Edmunds.com data products) can be viewed industrywide, import vs. domestic, by country of origin, by make, by model and by segment. True Market Value (TMV) is the transaction price for vehicles.

9/11/15 2:06 PM


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REGISTER TODAY: www.SEMAshow.com/UCN 27_UCN.indd 1

NOVEMBER 3–6, 2015 LAS VEGAS CONVENTION CENTER LAS VEGAS, NV

9/10/15 9:47 AM


28 • September 21, 2015

DISCONNECTED JOTTINGS FROM The National Auto Auction Association’s national convention is in Orlando this year, marking the end of a peripatetic era, visiting vari-

TONY MOORBY

were flush, they even held a spring meeting in London. From here to the foreseeable future, conventions will be held in the anonymity of

Tony Moorby

• 40-year veteran of the industry • President from 1997–2000 of ADT Automotive • Served as ADESA’s executive vice president of sales and marketing • Moorby & Associates 2006–present • Awarded the Ring of Honor by NIADA • NAAA Hall of Famer

ous cities around the country to acknowledge the current president’s region. So if the president’s auction were to be in say, Baltimore, the convention would be held there or close by in Washington, D.C. Two spring meetings used to take place, usually somewhere sunny and warm like Palm Springs, Scottsdale or Miami to shrug off the winter chills and to convince the attendees of brighter things to come for the rest of the year. When things

Las Vegas. You know, “Everything that happens in Vegas …” I have to admit to having mixed feelings about this approach. The NAAA has joined the other three hundred and fifty two thousand organizations to convene in Las Vulgar, eh, sorry Vegas. I suppose if you were to work out a “Benjamin Franklin Balance Sheet”, you know, that list of pros and cons to help you close a sale, there’s plenty to support a decision to go there

C R O S S WO R D

and keep going there. The NIADA has been doing it for years. The hotels can plan for years ahead, smoothing out the revenue streams through good times or bad and thus price their rooms competitively, no matter what. They can handle crowds like no one else; even long lines to check in at Caesar’s Palace are an entertainment all to themselves. Talent to entertain is all over town and food of every ilk is at your elbow. But after four or five conventions a year, the ennui of a ‘been-there, done-that’ sense soon pervades to the extent of avoidance. As I age, a visit to Vegas once every two or three years is quite sufficient for my mundane appetites. Even the subject matter of the meetings seems to have reached the stage of flogging a dead horse. Only the opportunities to see new technologies and catch up on legislative matters fuel a desire not to be left out. That and being able to

28. Rear view facilitator 32. Get up and go 34. Rushed 35. Volume measurement, for short 37. Spanish compact executive car produced by SEAT 40. Old Dodge 42. Expression of delight 43. Bother 44. Discouraging words 46. Land Rover ____ Sport 49. Sumptuous 50. Gun the engine 51. Wheel turners 52. Sign on a car or a lawn, 2 words Down 1. The Mille Miglia made this car maker famous 2. It’s been largely displaced by fuel injection 3. __- negotiable

buddy up and socialize. But you could do that equally, if not better, in San Diego or San Francisco (anywhere with a ‘San’ in front sounds pretty good to me). Savannah or St. Pete don’t sound too hateful either. So if travel broadens the mind, then seeing more of the country would seem to serve. It’s one of those oblique senses that gets the creative juices flowing whereas, going to the same place over and over, especially Vegas, has a stultifying effect to the point that, after two days you’re aching to go home, its glitz and glamor having stripped away any sensory alertness. If you’ve only been to Las Vegas once or twice, I understand a certain excitement at the prospect of all the lights, gambling and the shows, after all, there’s nowhere else like

it in the world. But after 34 years I must have been there a hundred times with no exaggeration. On the other hand, some of the seemingly more mundane cities have provided great meeting places – Indianapolis, Philadelphia, Baltimore, Columbus (yes, that Columbus in Ohio) and so on. And Orlando’s no slouch. Apart from all the obvious (expensive) park attractions, the downtown and old town around Lake Eola and Winter Park are all charming and very attractive with some of the best restaurants known to man. Lake Nona Golf Club is world class as are many on the Disney properties. There’s lots to look forward to and I realize I may be in the minority but sometimes I like to swim upstream just for the exercise.

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

Sponsored by INSURANCE AUTO AUCTIONS

By Miles Mellor

Across 1. Porsche’s ____ Turbo 4. Popular German hatchback 6. Ford muscle car 9. Kia crossover 11. Chivalrous- sounds like a Mitsubishi 14. Dark red color 15. VW minivan 17. Honda model 19. Email address intro 20. Lane, abbr. 21. Evidence of tire wear 22. Older of two sons 23. Compass direction 24. Flat___ truck 25. With cars, it may mean good! 26. Lincoln ____

USED CAR NEWS

1

4. Tracker and Prizm were cars in this line 5. Subaru sedan 6. Pontiac ____ AM 7. Mitsubishi SUV 8. Accelerated very fast, 2 words 10. 2000 lbs. 12. ____ welder 13. Handed-down history 14. Boston’s state 16. Accessory, 2 words 18. Compact Ford SUV 20. Camry trim level 23. Walton of Wal-Mart 24. Muscle car made by Plymouth, making a comeback with Chrysler 27. Color popular with sports car enthusiasts 29. Hot ___ car 30. Over, old way 31. GMC SUV 33. Type of car inspired by the 1964 Ford Mustang 36. Mid western city, abbr. 37. Toyota’s ___oma truck

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45

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49

50 51

52

Answers to the 9/7/15 puzzle 1

38. Smells 39. Word used in many Subaru ads 41. Expedition’s competition 45. Bentley Flying ____ 47. Letters on a Cardinal’s cap 48. Time to look ahead

C

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A 10

2

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23

R 14

A

J A

I E

T I

Answers to this puzzle in the 10/5/15 issue. Call 1.800.794.0760 for a FREE subscription.

28_UCN.indd 1

9/11/15 2:01 PM


USED CAR NEWS

September 21, 2015 • 29 Advertisers are solely responsible for content of classified advertisements. To place an ad, or for more information, call the Classified Department: 800-794-0760 ext.107

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Off Lease Only The nation’s used car destination is expanding again and needs good people in Sales & Finance Management, Internet Sales & Auction Buyers positions in all dealerships. We are the country’s largest volume independent used car dealer with unlimited growth potential. Live and work in beautiful Florida – Orlando, West Palm Beach, Miami and Tampa areas. If you are the industry’s best and want the opportunity of a lifetime, please call 844-807-2925 for more information about an interview.

MY

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AUCTIONS

2015 UPCOMING ISSUES

OF USED CAR NEWS October 19

Deadline ThursdayOctober 8

November 2

Dealer Life [BHPH Spotlight Advertorial] Deadline Thursday, October 22

November 16

Factory Focus

Deadline Thursday, November 5

December 7

Tax Season Preview

Deadline Thursday, November 24

December 21

Year In Review

TO ADVERTISE IN USED CAR NEWS CALL 800.794.0760 EXT.101

29_UCN.indd 1

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FINANCE MANAGERS FINANCE MANAGERS – FL 5th largest used car dealer is currently seeking Finance Managers for its West Palm Beach, Miami and Orlando locations. Must have minimum 5 yrs experience in finance, must be able to handle 100 minimum spins a month, be detailed with paperwork, run clean, tight CITs and work in a fast paced environment. Closers can earn 20-30k per month, 8-11 days off avg per month, benefits and 401(k). Send resume to: johnc@offleaseonly.com

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CLASSIFIEDS 9/11/15 10:47 AM


30 • September 21, 2015

USED CAR NEWS

AROUND THE BLOCK

Compiled by Jeffrey Bellant

AUCTION HITS MILESTONE

KICKING TIRES: Dealers check out the cars on the lot of Auto Auction of New England during its 20th anniversary sale.

The Auto Auction of New England (AANE) spent the summer celebrating 20 years in the auction business. “We can’t help but be grateful for the spectacular summer we are having too,” said Steve Deluca, AANE general manager. “Our summers may be short but New

Englanders know how to make the most of every opportunity to celebrate.” In June, AANE celebrated with a Dealer Appreciation and Classic Car Sale. More than 1,200 units crossed the block that day, and the over 900 dealers in attendance were

treated to a steak and lobster dinner followed by a raffle with over $10,000 in prizes. “It was a beautiful day and a great event,” said DeLuca. “Our goal was to sell cars, as always, but we also wanted to make sure every dealer who came to the sale that day left with a full stomach, a commemorative gift and a smile.” July was Employee Appreciation Month at AANE, which included casual events like lunches and ice cream and a month-end employee cookout as a way to thank the auction staff for all their hard work during harsh winter weather and during the anniversary event. “We have several games and an employee raffle,” said DeLuca, “but the highlight this year was the dunk tank where any employee could line up to dunk the manager of his/her choice. There were some pretty long lines.”

Sale Celebrates 19th Anniversary Southeastern Auto Auction of Savannah held its 19th anniversary sale on Aug. 26. The sale offered a large consignment featuring a variety of vehicles from new car dealers, independent dealers and institutional accounts. These were offered to a recordbreaking number of dealers both in the auction lanes and online via Simulcast, according to auction staff. The anniversary celebration was all month long with prize giveaways at every sale. Dealers in the lanes each week had a chance to win a diamond-plated shrimp and oyster steamer while dealers online had a chance to win an iPad mini. The anniversary sale included free Georgia BBQ and over $15,000 in cash and prizes. Adding to the day, a donation was given to Shriners Hospital for Children, which came from money raised through a 50/50 drawing.

We invite news items and top-quality photos from our readers to be considered for “Around the Block.” Please include the name of a contact person and a telephone number. Send items and photos to: Jeffrey Bellant. Mail: Used Car News, 24114 Harper Ave., St. Clair Shores, MI 48080. Fax: (586) 772-9400 e-mail: jeff@usedcarnews.com

CHECKBOOK

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Available to all signed floorplan dealers

30_UCN.indd 1

For more information or to apply:

(800) 873-2907 autouse.com

9/14/15 4:06 PM


Joffa LaRoe – Inventory Director, Gateway Buick GMC Jennifer Friday – Senior Sales Manager, Ally SmartAuction

Some lenders might go the extra mile. We went the extra 3.1.

Joffa LaRoe was blown away by the extraordinary dedication Jennifer Friday showed helping her implement Ally SmartAuction®. So much so, she asked if Jennifer would like to continue her support by joining her in a 5K charity race. Jennifer — despite not being an avid jogger — was all in. Because at Ally, when it comes to proving our dedication to our dealers, we don’t just talk the talk, or even walk the walk — we run the run.

ally.com/driven/extramile ©2015 Ally Financial. All rights reserved. Driven by what we love is a service mark of Ally Financial. SmartAuction is a registered service mark of Ally Financial.

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9/10/15 9:07 AM


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