Used Car News 1/22/2024 by General Media LLC

USED CAR NEWS

Used Car News 1/22 /2024

NIADA Plans Busy 2024 IN THIS ISSUE: • Finance • Legal Update • Tony Moorby

By Jeffrey Bellant

The National Independent Automobile Dealers Association, along with the used-car industry, faces some challenges in 2024, but it has a plan in place. NIADA President Gordon Tormohlen, who started his term last June, said it’s been a different kind of challenge. “The association has some uphill battles to fight, and it is building back after COVID (because) there were a couple of down years because of that,” he said. “Also, having new leadership and things of that nature. So, it’s been different, but good.” Tormohlen said his focus is how to set up this year for success. The board approved the new budget and

is now evaluating the job of NIADA CEO Jeff Martin, who took the reins of the organization last year. Tormohlen said the year will include a lot of behind-the-scenes prep work for the annual convention, the National Policy Conference this fall in Washington D.C. and the BHPH dealer forum, which will be in New Orleans this year. Martin talked about the association goals as reflected in the new budget. “Creating a healthy budget was Step 1 – having a budget that we could live within,” he said. “But there are a handful of things that we have to focus on as an association this year. “We’ve got to make sure that we start building out our compliance and our government relations department.”

and the leave-behind documents they provided to legislative offices, Martin said. But NIADA wants a dedicated person on staff who wakes up every morning thinking about how to grow the influence of the association in the areas of compliance and government relations. It’s not just about having a presence in Washington D.C., but it’s also being present at the state conventions to ensure NIADA is monitoring what’s going on in various states, Martin said. If an issue pops up, NIADA wants to be able to support a state or, if the Eric Johnson, a partner with state is not in the position to deal Maryland-based law firm Hudson- with it, stepping in and handling it, Cook (see page 4), has served on he said. retainer for NIADA and has “done “What we’re going to do this year a phenomenal job for us,” Martin is start to lay the groundwork for said. Johnson has helped the asso- that and then just continue to grow ciation in responses to federal agen- on that,” Martin said. “It’s somecies and he was “omnipresent” at thing that we have to focus on as an 1920X1080 Policy NADA SCREEN.pdf 1 1/14/24 5:06 PM the National Conference and association.” helped in developing comments Continued on page 5

Rush - Dated Material

CMY

01_UCN.indd 1

1/15/24 8:23 AM

S:9"

optim Our job is to make your job easier. With thousands of vehicles listed daily, our SmartAuction platform gives you access to inventory beyond what's on your lot. We're all better off with an ally.

ally.com/smartauction

02_UCN.indd 1

1/12/24 7:23 PM

Finance News 1/22/2024

Experian: Used Financing Falls, Charge-Offs Down By Jeffrey Bellant

Auto finance remains a hot issue as high interest rates, inflation and the retreat of some lenders from the automotive space press down on the industry. Experian’s Melinda Zabritski, head of automotive financial insights, recently discussed the results of Experian’s State of the Automotive Finance Market Q3 2023. At the start of the report, a snapshot of how and what consumers are financing showed that the percentage of used vehicles being financed has dipped to 37.42%, which is a 4% drop from the prior year. “One of the things that is having

an impact on the used vehicle side is we’re also starting to see older vehicles becoming a larger portion of what’s being purchased,” Zabritski said. “Of course, whenever that happens, you start seeing not as much financing on some of the oldest vehicles.” One surprising trend on the newvehicle side involved the percentage of financing by vehicle segment. Sedans, which were once left for dead by manufacturers, made up more than 18% of financed vehicles, topping even pickups, which were less than 16% of new vehicles financed. “I was digging into the data to see where sedans were making up

most of the market, and there are some sedans that made up some significant volume increases year over year,” Zabritski said. “The Toyota Camry was the No.1 sedan in Q3. But there were some that saw pretty big increases in volume. We saw a big increase in Tesla Model 3. We saw a big increase in volume from Honda Accord, Corolla Civic – so yes, I think a lot of that is from the affordability aspect.” Another big change was the average loan rate for new cars financed, which jumped to 7% from 5.26% in 2022 and just over 4% in 2021. “The farthest back I can look at my data is 2008 and that’s the closest it’s been to 7%,” Zabritski said. “In Q1 of 2008 for new vehicles, it was like 6.98%. “So, my guess is 2006 or 2007 (was the last time it was this high).” The report also showed that used values and LTVs (Loan to Value) fell across most credit tier segments, with the exception of “deep subprime.” Zabritski explained that the interest rate is going to impact the monthly payment, but not the amount financed. “When the values were up really high, that’s when you saw the LTVs come down quite a bit, because people had more equity in their vehicles,” she said. “Year over year, it’s still relatively low for used, which is nice. Part of it also could be that with the higher interest rates, we could see people bringing more money into the transaction to keep loan amount down, to keep the monthly payment down.” The report shows 30-month delinquencies on loans have risen year over year from 1.64% in Q3 2020 to 2.33% in 2022. Also, 60-day delinquencies on loans rose to 0.91% from 0.54% in 2020. “It’s kind of where we expected it to be,” Zabritski said. “As the payments went up, with year over year increases that were at a historical highs for payments, then increased delinquencies are going to go hand in hand with that.” However, charge-offs are actually down, she added, because “values are holding and being strong at auctions.” While Zabritski doesn’t follow repossession trends, she hears that the repo market is growing. “The biggest restraint I’m hearing in the repo industry is just the lack of agents,” she said.

03_UCN.indd 1

1/13/24 1:20 PM

Legal/Compliance Update

USED CAR NEWS

1/22/2024 Ongoing compliance requirements pose an even greater risk for dealers in 2024 than they have in prior years. Eric Johnson, partner at Maryland-based law firm Hudson-Cook, warned dealers not to let their guards down this year. “Really, it’s going to be kind of a continuation of what we saw in 2023 of the attacks by the FTC, state AGs and state regulators,” he said. “But I think you really have to throw in this FTC CARS (Combating Auto Retail Scams) Rule. “That’s the big iceberg on the horizon if our ship is the Titanic. It’s going to affect franchises more, but it’s certainly going to affect used car dealers, as well.” The CARS rule will take effect on July 30, 2024. “The rule gives them the ability to level penalties against somebody that violates the provisions of the rule as a UDAP (unfair, deceptive or abusive acts or practices), to level $51,000 and charge a penalty per violation,” Johnson said. “In fact, the FTC and Connecticut

recently filed a suit against a dealer for many of the things that will be violations in that rule,” he said, “So, they’re not really waiting around for that rule to go into effect to start enforcing things.” The FTC said the rule is to prevent “bait-and-switch tactics, hidden charges, and conduct that harms consumers and honest dealers.” One of the problematic requirements is that a dealership has to provide – it its initial communication with the customer – what’s called an “offering price.” Johnson said that price is to include everything that’s wrapped up in the price of the vehicle, whether the consumer asks about it or not. It’s also unclear about what’s actually part of an “offering price.” Johnson describes it as “the full cash price for which a dealer will sell or finance a vehicle to a consumer.” The only thing you can exclude is required government charges, such as taxes, fees, etc., he said. The FTC doesn’t want dealers to advertise one price and give a different price

Put the power of Chase Auto to work for you Your customers want to choose from quality vehicles, so you need a national industry leader who can deliver. That’s Chase. We offer: • A broad range of vehicles — from economy to luxury — upstream and through auctions nationwide • Convenient online and in-lane vehicle availability with on-site Chase remarketers Choose Chase owned vehicles at ADESA.com and Manheim.com.

Your clear choice for quality 3

1 The tradename Subaru Motors Finance (SMF) and the Subaru logo are owned by Subaru of America, Inc. (Subaru) or its affiliates and are licensed to JPMorgan Chase Bank, N.A. (Chase). Auto finance accounts are owned by Chase. 2 The tradename Maserati Capital USA and the Maserati logo are owned by Maserati North America, Inc. (Maserati) or its affiliates and are licensed to JPMorgan Chase Bank, N.A. (Chase). Auto finance accounts are owned by Chase.

The tradename Aston Martin Financial Services and the Aston Martin logo are owned by Aston Martin Lagonda of North America Inc. (Aston Martin) or its affiliates and are licensed to JPMorgan Chase Bank, N.A. (Chase). Auto finance accounts are owned by Chase. 3

4 The tradenames Jaguar Financial Group and Land Rover Group and their respective logos are owned by Jaguar Land Rover North America, LLC (JLR) or its affiliates and are licensed to JPMorgan Chase Bank, N.A. (Chase). Auto finance accounts are owned by Chase.

Neither JPMorgan Chase Bank, N.A. nor any of its affiliates are affiliated with ADESA, Inc. or Manheim, Inc. Each auction is solely responsible for their website content, sales events, promotions, fulfillment and operation of the auction. Dealer communication only; not intended for retail purchaser. ©2021 JPMorgan Chase Bank, N.A. Member FDIC

21-014 (2021)

Volume 29 | No.12 Published By General Media LLC USED CAR NEWS (ISSN 1555-7413) is published at : Used Car News P.O. Box 80800 St. Clair Shores, MI 48080 Phone: 586-772-5200 or 800-794-0760 Fax: 586-772-9400 www.usedcarnews.com

Eric Johnson when the customer gets to the lot. Also, if a customer is texting a salesman about a certain vehicle, the salesman has to put that in writing. Johnson said the FTC has argued that it will shorten the time period of a deal, but he believes it’s going to add to the time at a dealership. If a customer asks about a different car, the process has to start all over with the offering price and offering it in writing if the discussion is in writing, he said. Another wrinkle to the 372-page rule is that it has “quite a bit more record keeping requirements” that you have to maintain for at least 24 months. “It’s a laundry list of requirements,” Johnson said. It’s a lot more than what a dealer would typically keep in a deal jacket.” Another big part is dealers cannot offer or sell a voluntary protection product – “an add-on” – without offering the consumer “expressed informed consent.” According to the FTC, a “signed initial document” does not qualify as expressed informed consent. The FTC states it must be the consumer’s “unambiguous assent to the charge.” It may require a separate document signed and dated by the consumer. A dealership will have to keep all its ads as part of their record-keeping, even text messages that a salesperson exchanges with a consumer. Trade groups did their best to fight against the rule, but it seems to be moving forward. The NADA and Texas Auto Dealers Association have filed suit in the 5th Circuit Court in Texas to essentially block the effective date. “The problem is, it’s coming up at the end of July, so there’s not a lot of time to get ready,” he said. “I don’t think dealers are able to wait to see what happens with the court case.” “I think dealers are going to have to start getting ready now. “ A dealer’s guide to the rule is available at FTC.gov.

Charles M. Thomas Founder (1947-2002) Lynda R. Thomas, Publisher Emeritus Colleen Fitzgerald, Publisher Editorial: Jeffrey Bellant, Managing Editor Ed Fitzgerald, Staff Writer Advertising: Shannon Colby, Account Manager Tony Moorby Columnist: Circulation: subs@usedcarnews.com Production: Tom Savage, Production Manager Cee Lippens, Web Master Used Car News is published every third week. 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 Payments from first time advertisers must accompany the insertion order. Distribution is guaranteed by the USPS. The advertising reservation deadline is 12:00 noon Thursday, 11 days prior to the issue cover date. Ad materials are due by 5 pm Friday, 10 days prior to issue cover date. For advertising specifications please email colleen@usedcarnews.com. Join the Conversation! Visit Used Car News online at www.usedcarnews.com or scan this QR code with your smartphone to be taken directly to the website.

C R O S S W O R D PAGE 14

04_UCN.indd 1

1/14/24 1:16 PM

Used Car News 1/22/2024

NIADA – Continued from page 1 NIADA will be looking to hire that person for compliance/government relations and then later hire a new D.C. lobbying firm. Martin said the second goal, nearly as important as the first, is adding more programs to help the states. “We’ve got to be better partners with our states, and we have some great opportunities because of the resources that we have in place,” he said. “We can help states do a handful of things. No. 1, help them generate revenue, which every state needs. No. 2, provide better services for the members in the states. No. 3, which I mentioned earlier, is supporting those states when they need it, when it comes to compliance and government relations.” For example, while NIADA will provide more education for its members in general, it will also provide more education to its state associations, Martin said.

“I’ll tell you that we’ve budgeted for six different education classes,” he said, “but we’re only going to provide education for states that ask us and we’ll be able to work in conjunction with them marketing the program since we know the education that we’ll be providing. “Plus, there will be a revenuesharing with the states.” Going forward, Martin said that when NIADA comes up with a program, it “will need to do three things.” No. 1 it must provide a benefit to the state’s members/dealers. The second thing is, can NIADA provide education, for example, to a state that traditionally doesn’t provide the education? If so, that’s a benefit to the dealer that they’re not getting now, Martin said. Also, by doing revenue-sharing to states that are using that education it means that they can promote the

class as a member benefit, while raising money for the association, he added. The third thing is the program has to be mutually beneficial for the state and NIADA. “We’ve got to move forward together,” Martin said. “There are things where the NIADA can benefit from the state relationship and things where the state can benefit from the NIADA relationship. “We’ve got to continue moving forward with that mentality.” For example, if a state is putting on an event or a class and NIADA has talent in the association who can help the state put on the event, then NIADA must use its resources to help that state event be successful, Martin said. Helping dealers – both at the state and national levels – succeed in the regulatory environment and battle

against any overly onerous rules – seems critical at this time. Martin also wants to put more focus on associate members – such as vendors, sponsors, etc. – who are valued members of the association and support the association through the products they provide or how they support NIADA issues and concerns, from tech products to compliance solutions. Tormohlen discussed the challenges of dealing with compliance as federal agencies like the Federal Trade Commission and Consumer Financial Protection Bureau target businesses with increasing rules and regulations. “We’re in what I would call difficult times,” Tormohlen said. “We’ve got a government in place that believes the market is better if they manipulate it than let the consumers and business investors do what the market tells them to do.”

05_UCN.indd 1

1/14/24 1:17 PM

EV News 1/22/2024

Hertz Slashes EV Fleet Hertz Global Holdings has made the strategic decision to sell approximately 20,000 electric vehicles from its U.S. fleet, or about one-third of the global EV fleet, it reported in a filing with the Security and Exchange Commission on Jan. 12. These vehicle dispositions, which were initiated in December 2023 and are expected to take place in an orderly fashion over the course of 2024, will cover multiple makes and models. EVs held for sale will remain eligible for rental within the company’s fleet during the sales process. The company expects to reinvest a portion of the proceeds from the sale of EVs into the purchase of internal combustion engine vehicles to meet customer demand. The company expects this action to better balance supply against expected demand of EVs. This will position the company to eliminate a disproportionate number of lower

Using Suzie Queue’s Toolbelt you can access Vehicles in your inventory that need immediate attention!

margin rentals and reduce damage expense associated with EVs. The company will continue to execute its strategy around EV mobility and offer customers a wide selection of vehicles. The company continues to implement a series of initiatives that it anticipates will continue to improve the profitability of the remaining EV fleet. These initiatives include the expansion of EV charging infrastructure, growing relationships with EV manufacturers, particularly related to more affordable access to parts and labor, and continued implementation of policies and educational tools to help enhance the EV experience for customers. Going forward, the company will continue to actively manage the total size of its EV fleet, as well as the allocation of EVs among customer segments, including leisure, corporate, government and rideshare.

SAVANNAH

Unleash the Power of WorkQueues! Zoom in on key action items, and spotlight the crucial details for review, all with superhero efficiency!

solutions@autoims.com 888-683-2272

wednesday, february 14 th

6 0 0 + un its ex pected $5,000 LATE BiRD DRAWiNG MUST BE PRESENT iN THE ARENA AT THE TiME OF THE DRAWiNG.

cash drawings after the sale AMERiCA’S AUTO AUCTiON: SAVANNAH 1712 DEAN FOREST RD, SAVANNAH, GA 31408 | WWW.AMERiCASAA.COM | (912) 965-9901

06_UCN.indd 1

1/14/24 1:18 PM

07_UCN.indd 1

1/12/24 7:25 PM

Compliance News 1/22/2024

State Law Requires Repo Agencies to Erase Auto Data By Daniel J. Laudicina

A new Illinois data privacy law specifically tailored to motor vehicle-secured financing transactions became effective Jan. 1 and is likely to lead to similar laws in other states. The law, Senate Bill 800, amends the Illinois Collateral Recovery Act and requires licensed repossession agencies to clear, erase, delete, or otherwise eliminate personal information collected or stored in a vehicle after repossession. The law defines “personal information” as information that is associated with an owner, driver, or passenger of the collateral and that is collected and stored by electronic means in or by the collateral (this appears to include information saved to the cloud that

is accessible—and erasable—from the vehicle) during the course of use of that collateral. The law specifically refers to several examples of covered personal information, including, but not limited to: • contacts, addresses, and telephone numbers; • garage door codes; • map data; • digital subscriptions; and • biometric information (such as fingerprints allowing keyless entry to vehicles). The new law also expressly covers information that is deemed “sensitive personal information” by the Federal Trade Commission, “personally identifiable information” under federal or Illinois law, and “individually identifiable health information” under the Health Insurance Portability and Accountability Act.

To ensure that the law covers all bases, the Illinois legislature added a broad catch-all to cover “information that a licensed repossession agency reasonably believes would be deemed confidential or private by the person who is associated with the information.” A repossession agency that has cause to believe that a repossessed vehicle collects personal information must delete or otherwise clear this information from the repossessed vehicle as soon as practicable upon repossession of the vehicle and prior to release of the vehicle. (As an aside, the law does not make an exception to the requirement to delete information when the vehicle is released back to the consumer, perhaps upon reinstatement). The repossession agency must use a standardized electronic so-

lution approved by the American Recovery Association to delete covered information. The Illinois law is expected to be among the first of what will be a long progression of similar laws to be enacted in other states, as technological advancements increase the amounts and types of information collected and stored in or by vehicles and, as a result, the risk of identity theft or unauthorized access to personal information. Daniel J. Laudicina is a partner in the Maryland office of Hudson-Cook, LLP. © CounselorLibrary.com 2020, all rights reserved. Based on an article from Spot Delivery. Single print publication rights only to Used Car News.

PLEASE JOiN US FRiDAY, M A RC H 1 5 TH E ST . 2 0 0 1

iN CASH

LATE BiRD DRAWiNG FOR T HO SE iN ATTENDANCE AF TER TH E SALE.

K i CKiN G O F F TH E SALE

AT 9:30AM

TO B UY ER S AND S ELLER S iN ATTENDANCE AFTER THE SALE.

CHARLESTON

Anniversary 3 2 rd

iN SiX LANES

GREEDY BOARD B EFOR E & AFTER THE SALE FOR A CHANCE TO W iN UP TO

$2,000

AMERiCA’S AUTO AUCTiON: CHARLESTON 651 PRECAST LANE, MONCKS CORNER, SC 29461 | WWW.AMERiCASAA.COM | (843) 719-1900 8

08_UCN.indd 1

1/14/24 1:19 PM

for all your dealership needs! • Local Point of Service in YOUR market • Bulk Purchase Program • Payment Stream Advances (6-15 months) • Aged Pay Share Program that gives you Capital and Cash Flow! • Floorplan for select BHPH Dealers • Servicing for all types of Auto Receivables

1.877.570.8857 09_UCN.indd 1

1/12/24 7:26 PM

Retail Markets Compiled by

1/22/2024

Ed Fitzgerald

MICHIGAN

John Drouillard, co-owner, Autohaus Service and Sales, Royal Oak, Mich. “We’ve been here since 1984. My dad started in the ‘70s with a gas station that did repairs. “Our business has changed. Very rarely does a customer just show up. Most of the time it starts with emails, back and forth. They come in to buy the car, but some people never come in at all. They can do a Facetime or a video walk-around. We ship cars all over. “Right now, we have 18 cars in inventory. That’s how it’s been for the last couple of years, normally it was 30. We sell 10-12 a month, it used to be 20-plus. We’re cutting back and fortunately we have the service department. “We specialize in European cars but I just sold a truck,

it was probably a trade-in. We really don’t have room for them, but whenever I get one, I make money on it. We probably sell 70 percent SUVs and 30 percent sedans. “We buy maybe 2-3 cars a year in the Detroit area, the rest we buy out of state. The shipping is crazy but with European cars the condition is everything and buying from California makes all the difference. We look for older cars with really low miles. “We’ve been buying more from local customers. Dealers are giving them a really bad trade-in. Usually, we can beat it and it’s still a good deal for us. “We probably spend an average of $1,000 on reconditioning. For every car that doesn’t need anything, there’s another car that needs $2,000. “We now have an educa-

tion requirement in Michigan that my dad (Jerry) and I pushed for. “People are losing deals over interest rates. Customers have this thing about low rates, anything over 4 percent, because it was low for so long. “Yesterday, I sold an Audi Q5. It was an ’18 with 46,000 miles, a one-owner car. A guy made me an offer of $25,500, a little less than what I was asking.”

NEW MEXICO

Rob Martinez, owner, ABQ Auto Sales, Albuquerque, N.M. “We’ve been in business 13 years; my wife and I own it. “I was the guy who felt he had to be at every auction, to touch and feel the vehicles. I did the buying for the first five years of my company’s existence and I had a buyer the last five years. He and I

were on the same page. COVID forced me to be comfortable buying online. “We keep about 35 vehicles in inventory and sell in the low 20s per month. “SUVs would be the largest share of what we sell, probably 40-45 percent. Cars would be the next largest share and then trucks would round it out. “We have a much bigger market here for domestics, though we do sell imports. “Our down payments are considerably higher than in the past. It’s leveled out some, but it’s still surprising how much people have available. If I had to give you a number, I’d say it’s about $3,000. With today’s interest rates we’ve probably had to stretch payments out the longest in my career. “There are very few people who can afford to do less than 80 months, but I’d say

about 72 months is the average. “I spend about $200 in reconditioning per vehicle. I sell a lot of late-model, lowmileage cars. “Here in New Mexico, we have a gem in our state association’s director, Mark Powell. He’s the reason I continue to stay affiliated and give my time. “They’ve done an amazing job with pre-licensing classes, and they will bring in different vendors. “Right now, we have some additional training a dealer can invest in. New dealers should approach their local association and see what resources might be available. Sometimes they just don’t have a clue when starting out. “The last car we sold was a ’21 Ram 1500. It had 45,000 miles and we sold it for $25,400.”

Fed Up With Tire Prices, Dealers Turn To Champtires Save your recon department thousands each month. All brands and sizes. Three-step inspection process. Special dealer incentive program. Free shipping.

Watch: How I Save Thousands of Dollars Every Month

CHAMP TIRES www.champtires.com/used-car-news 10

10_UCN.indd 1

1/14/24 1:20 PM

FEBRUARY 2024 Find an auction near you to stock your inventory of pre-owned vehicles

ADESA Boston February 2, 16 508-626-7000

Columbus Fair February 7, 14 614-497-2000

Manheim Orlando February 6, 13, 20, 27 800-822-2886

ADESA Charlotte February 8, 22 704-587-7653

Manheim Atlanta February 8, 21, 22 404-762-9211

Manheim Atlanta February 21 404-762-9211

Manheim Nevada February 9 702-730-1400

Manheim Pennsylvania February 8, 22 800-822-2886

Manheim Palm Beach February 14, 15 561-790-1200

ADESA Chicago February 2 847-551-2151

Manheim New Jersey February 14, 28 609-298-3400

Manheim Riverside February 1, 15, 29 951-689-6000

Manheim Dallas February 14, 27, 28 877-860-1651

Manheim Dallas February 27 877-860-1651

Manheim Pennsylvania February 2, 8, 9, 16, 22, 23 800-822-2886

ADESA Cincinnati/Dayton February 6 937-746-4000

Manheim Orlando February 27 800-822-2886

Manheim Seattle February 7 206-762-1600

Manheim Denver February 28 800-822-1177

Manheim Milwaukee February 28 262-835-4436

Manheim Phoenix February 1, 15, 29 623-907-7000

ADESA Golden Gate February 6 209-839-8000

Manheim Detroit February 8, 22 734-654-7100

Manheim Nashville February 14 615-773-3800

Manheim Palm Beach February 14 561-790-1200

Manheim Pittsburgh February 28 724-452-5555

ADESA Indianapolis February 6, 20 317-838-8000

Manheim Fredericksburg February 1, 15, 29 540-368-3400

Manheim Riverside February 1, 13, 15, 27, 29 951-689-6000

ADESA Kansas City February 6, 20 816-525-1100

Manheim Milwaukee February 14, 28 262-835-4436

Manheim Seattle February 7 206-762-1600

ADESA Lexington February 15 859-263-5163

Manheim Minneapolis February 21 763-425-7653

Manheim Southern California February 8, 22 909-822-2261

ADESA New Jersey February 8, 22 908-725-2200

Manheim Nashville February 13, 14 615-773-3800

Manheim Tampa February 8, 22 800-622-7292

ADESA Salt Lake February 27 801-322-1234

Manheim Nevada February 9 702-730-1400

Manheim Texas Hobby February 8, 22 713-649-8233

ADESA Boston February 2, 16 508-626-7000

Manheim Denver February 28 800-822-1177

ADESA Tulsa February 9 918-437-9044

Manheim New Jersey February 14, 28 609-298-3400

Southern AA February 28 860-292-7500

ADESA Charlotte February 8, 22 704-587-7653

Manheim Pittsburgh February 28 724-452-5555

Manheim Fredericksburg February 1, 15, 29 540-368-3400

ADESA Washington DC February 28 703-996-1100

Manheim New Orleans February 7, 28 985-643-2061

ADESA Salt Lake February 27 801-322-1234

Manheim Seattle February 7 206-762-1600

Manheim New Jersey February 14, 28 609-298-3400

Columbus Fair February 7 614-497-2000

Manheim Southern California February 8, 22 909-822-2261

Manheim Orlando February 6, 20 800-822-2886

Manheim Dallas February 14, 28 877-860-1651

Southern AA February 28 860-292-7500

Manheim Pennsylvania February 9, 23 800-822-2886

Manheim Atlanta February 21 404-762-9211

Manheim Milwaukee February 28 262-835-4436

Manheim Pennsylvania February 8, 22 800-822-2886

Manheim Dallas February 27 877-860-1651

Manheim Nashville February 14 615-773-3800

Manheim Riverside February 1, 15, 29 951-689-6000

Manheim Palm Beach February 14 561-790-1200

Manheim Seattle February 7 206-762-1600

Financial Services* Manheim Atlanta February 21 404-762-9211

Choose Chase on ADESA.com and OVE.com for bank-sourced vehicles. Contact auctions directly for current sale information.

* The tradename Jaguar Financial Group and the Jaguar logo are owned by Jaguar Land Rover North America, LLC (JLR) or its affiliates and are licensed to JPMorgan Chase Bank, N.A. (Chase). Auto finance accounts are owned by Chase. * The tradename Land Rover Financial Group and the Land Rover logo are owned by Jaguar Land Rover North America, LLC (JLR) or its affiliates and are licensed to JPMorgan Chase Bank, N.A. (Chase). Auto finance accounts are owned by Chase.

* The tradename Subaru Motors Finance (SMF) and the Subaru logo are owned by Subaru of America, Inc. (Subaru) or its affiliates and are licensed to JPMorgan Chase Bank, N.A. (Chase).Auto finance accounts are owned by Chase. * The tradename Maserati Capital USA and the Maserati logo are owned by Maserati North America, Inc. (Maserati) or its affiliates and are licensed to JPMorgan Chase Bank, N.A. (Chase). Auto finance accounts are owned by Chase.

* The tradename Aston Martin Financial Services and the Aston Martin logo are owned by Aston Martin Lagonda of North America Inc. (Aston Martin) or its affiliates and are licensed to JPMorgan Chase Bank, N.A. (Chase). Auto finance accounts are owned by Chase.

Neither JPMorgan Chase Bank, N.A. nor any of its affiliates are affiliated with ADESA, Inc. or Manheim, Inc. Each auction is solely responsible for their website content, sales events, promotions, fulfillment and operation of the auction. JPMorgan Chase Bank, N.A. Member FDIC ©2024 JPMorgan Chase & Co.

11_UCN.indd 1

(2/24)

1/12/24 7:31 PM

Wholesale Markets 1/22/2024

Compiled by

Jeffrey Bellant

MONTANA

Jake Gertsch, sales manager, Auto Auction of Montana, Billings, Mont. “We run four lanes and we have two lanes that we can run double block. “Last year was all over the place, like everybody. Then we hit the normal adjustment for the holidays, though it was a little more of a stout adjustment coming in November just because prices were so high. “Volume was down there the holiday weeks, which was normal. This week (Jan. 10) was kind of our first week (of the new year). It was routine and I think we ran just over 500 vehicles. Pretty similar to this time last year. We sold 54% which wasn’t too bad considering how things have been in the market. “I think the market will start ticking up a little bit.

“Between on the floor and online, we’ll have between 250 and 300 registered bidders. I would say (in-lane) it’d probably be 100 bidders or so. We use Online Ringman for Internet sales. “The average price in the lanes is in the $32,000 to $35,000 range. A lot of trucks and high-dollar SUVs. But that price has doubled over the past five years. It used to be $16,000 to $18,000. Values, for sure, have gone up. The $10,000 car is now $18,000. “Plus, we’re selling a lot more late-models because of the shortage of new vehicles. New trucks got so expensive that, you know, $80,000, $90,000 or $100,000 is what you expect to pay for a loaded pickup or SUV today. It used to be in the $55,000 to $70,000 range. “Yeah, it’s crazy, but that’s where we’re at.

“We have a lot of dealer vehicles. Of course, being close to Canada, we sell a lot of Canadian imports. “Our lease lane has picked up. We sell a lot of Enterprise, Hertz, GM Financial – those types of vehicles. That lane usually has between 120 and 150 vehicles per week. There’s also been an uptick in repos. “We also do a GSA sale once a month, sometimes twice a month. Those numbers have come back up as well.”

OKLAHOMA

Kyle Clopton, general manager, Oklahoma Auto Exchange, Oklahoma City, Okla. “We are in our 19th year. “Currently, we are running three lanes. I think eventually we’ll be back at four lanes like we were pre-COVID, but right now it’s three.

“This week (Jan. 10) we ran 725, so it’s been between 700 and 750 every week. We’re selling about 64%. “Our volume was up in Q4 of 2023 and our number of sold vehicles was up. We finished the year up 13% yearover-year on sold vehicles. We didn’t really see the typical inventory dip that you usually see at the end of the year. Those numbers at the end were closer to Q3-type numbers than Q4. “Some of the manufacturers have caught up on production of new vehicles, which has stabilized the market for what we do. “We’ve also capitalized on some opportunities in Oklahoma City and around the state to grow our commercial business. I think the last time we talked we had just started running vehicles for Exeter and they’re running

every other week now. Stellantis Financial Services is running with us as well as Merchants Fleet. “I would say our volumes now are about 65% dealer trades and 35% commercial fleet/repos. “But, still, when my dad started back in 2005, it was about taking care of our local franchise and independent dealers, filling a void in our market. Our bread and butter has been, and always will be, our local franchise and independent dealers. “We have a lot of buyers from the area, but we also have buyers that travel from Kansas, Iowa, New Mexico, Arkansas, etc. “For online we’re with Xcira Fastlane and before COVID we weren’t online. “Our average sale price is right around $8,800, which I think is the perfect sale price.”

Streamline and Scale your Dealership Operations Experience the Value of Cloud-Based DMS Inventory Management Sales Processing Compliance Forms Reporting & Analytics DMS Integrations With over 200 tools from industry-leading partners to choose from, customize a suite of solutions tailored to fit your dealership’s needs, ensuring you not only meet but exceed operational expectations.

www.Frazer.com | Phone: 888-963-5369

12_UCN.indd 1

1/14/24 1:20 PM

your winter inventory! Santander Consumer USA has the certified reconditioned vehicles you need! New inventory is rolling in. Refresh your lot and jumpstart your winter sales with the preowned vehicles your customers want to drive.

Ready, set, refresh for winter! Chrysler Capital is proud to present some of today’s most popular off-lease trucks and SUVs. Visit a Chrysler Capital auction partner or ChryslerDirect.com to get up-to-the-minute, off-lease vehicles and refresh your inventory for winter.

Visit ChryslerDirect.com or Adesa.com to view available vehicles. ©2024 Santander Consumer USA Inc. All rights reserved. Santander, Santander Consumer and the Flame Logo are trademarks of Banco Santander, S.A.or its subsidiaries in the United States or other countries. All other trademarks are the property of theirrespective owners. SC-866627_010824

13_UCN.indd 1

©2024 Santander Consumer USA Inc. All rights reserved. Chrysler Capital is a registered trademark of FCA US LLC and licensed to Santander Consumer USA Inc. Jeep and Ram are registered trademarks of FCA US LLC. All other trademarks are the property of their respective owners. CCAP-866627_010824

1/12/24 7:29 PM

Tony Moorby

Disconnected Jottings From

Tony Moorby 1/22/2024

• 50-year veteran of the industry

I’m not good at prognosticating these days so my forecasts would be as useful as the Farmers’ Almanac. Used to be I could share time with some of the brightest minds in the industry; our own economist, Tom Kontos brought clarity to our crystal ball meetings, underwriting our approaches to budgeting as well as bringing meaningful content to customer meetings and advisory boards. We shared time with the “suits” at the manufacturers and other major car-related entities. Whilst not being experts in every facet of vehicle selling and distribution, such associations gave us confidence to make decisions for ourselves and others. J.D. Power used to hold private dinners at major conventions like the NADA,

which included domestic and overseas manufacturers’ leaders. He recognized the importance of the fluidity of the used car market and included us in many of his coveted invitations. Of course, access to almost any industry data, in any of its myriad forms, is available at our fingertips today but it feels arm’s length. It’s not the same as discussing the rationale that arrives at the numbers with the boss of BMW or Ford, bolstered by personal opinions (some of which were far-fetched). I remember an evening with J.D. at dinner on the patio of a fabulous restaurant in New Orleans with many industry icons. The evening started out precariously as company leaders decided how comfortable they were in the

relaxed presence of their peers. It was the first time I’d met Sergio Marchionne, before he took over the Fiat Chrysler Group and he turned out to be the life and soul of the party. There were gentle jibes about market shares and customer retention rates but as the evening became more ‘lubricated’ everyone lightened up and enjoyed the occasion to relax. Mike Dale, an archetypal Brit and head of Jaguar Cars North America, rubbed shoulders with Eberhard von Kuenheim, Chairman of BMW. I know it sounds like name-dropping but it was special to witness such an auspicious group in the industry. ADT Automotive has now been sold for five years longer than the company was in existence and the indus-

5 Mercedes van 9 Auto’s grill protector 10 XT4 or LYRIC makers 11 Rolls Royce model

26 Truck fuel

4 Racetrack shape

27 Tattoo spot

5 Polite address to a man, abbr.

29 Kingly color of some cars, 2 words 30 Inside storage space in a vehicle 32 “Give it ___!” (2 words)

14 Exercise class, abbr.

33 Buick sedan

15 Throughway in a city

37 Iconic truck name

17 Kia sedan

35 Tart green fruit 38 Cluster of seals

39 Silent agreement 20 System that 40 _____ wagon removes harmful substances from the vehicle’s oper- Down ations 1 Buick sedan 23 Safety feature in 2 Caravan maker case of overturn 3 __ that glitters 25 ____ up job!

try has changed enormously at every level. But forecasting was as important then as it is now. The company was first to publish a Used Car Market Report, segmenting performances of various parts of the industry from Total Industry Volumes to Rental Car Registrations and even regional product preferences. Tom Kontos was the fulcrum for the production of the numbers and the publication became a soughtafter volume for most car related offices. It’s nice to see that Jonathan Smoke now continues those undertakings for Manheim. Referring to my last article about EVs and their market acceptance (I know, I know, it’s a long-term inevitability) but the marketplace will be roiled for a good few years to

2000 of ADT Automotive

• Served as ADESA’s

executive vice president of sales and marketing

• Moorby & Associates 2006–present

• NAAA Hall of Famer • IARA Circle of Excellence

To see past columns

from Tony Moorby, visit

www.usedcarnews.com/ columnists/tony-moorby

be able to focus on forecast numbers with any sense of surety. I know I don’t always go with the flow. I just bought a Jaguar F Type R75 Dynamic. There are lots of electric gizmos but the engine ain’t one of them! And of course it’s yellow!

Play Online at Us e d C a r N e ws. co m

By Myles Mellor

Across 1 Mitsubishi SUV

• President from 1997–

6 Chrysler brand from the 80s and 90s 7 Kia model 8 Web location

16 Lamborghini sports car 18 Striped creature 19 Purplish-red color 21 Auto pioneer, 2 words 22 Red light at the rear of a vehicle 24 Purple color 25 Good deal

12 Resort 13 Buick mid-size sedan

28 Security feature in a car 31 Turnpike turnoff 34 Allow 35 Shortest-named zodiac sign 36 Really long time

E L

I 15

B R

M A A

S R

M A

E 21

R E

C D

C O

M E

I N

E 22

E R

D U

T H

R 12

M A

U A

A S

O T

L 17

A A

R D P

O W A

N A

4 8

E 32

Solution to the 12/18/2023 puzzle

Solution to this puzzle in the 2/12/2024 issue. Call 1.800.794.0760 for a FREE subscription.

14_UCN.indd 1

1/15/24 9:08 AM

buying made

SIMPLE. NATIONAL NETWORK

AKRON AUTO AUCTION akronautoauction.com

AA OF NEW ENGLAND aane.com

OPTIMIZING IN-LANE AND DIGITAL EXPERIENCE

GREATER ROCKFORD AA graa.net

SERVNET auctions offer advanced technology solutions, providing a best-in-class experience for inventory management, remote repping, online buying, and customer service.

GREENVILLE AA greenvillencautoauction.com

OPERATIONAL EXCELLENCE

AVDAA LOS ANGELES avdaauction.com

Confidently secure vehicles with the comfort of knowing SERVNET auctions operate with the highest level of standards and integrity in the industry.

INDIANA AA indianaautoauction.net BEL AIR AUTO AUCTION bscamerica.com

CAROLINA AA carolinaautoauction.com

MID-STATE AA msaanym.com

CORPUS CHRISTI AA corpuschristiautoauction.com

MISSOURI AA missouriautoauction.com

DAA OF IDAHO daaofidaho.com

NORTH BAY AA nbauto.com

PERSONALIZED SERVICE

Each SERVNET auction is independently owned and operated. No matter which location you buy or sell with, each SERVNET auction offers the same exceptional support and assistance. DAA SEATTLE

DAA NORTHWEST MID STATE AA

AA OF NEW ENGLAND

DAA OF IDAHO

DAA NORTHWEST magauctions.com

SAN ANTONIO AA sanantonioautoauction.com

GREATER ROCKFORD AA NORTH BAY AA

GREAT LAKES AA INDIANA AA VALUE AUTO AUCTION

MISSOURI AA

STATE LINE AA AKRON AUTO AUCTION BEL AIR AUTO AUCTION GREENVILLE AA

DAA SEATTLE magauctions.com

STATE LINE AA statelineauto.com

AVDAA LOS ANGELES

CAROLINA AA

GREAT LAKES AUTO AUCTION

GREAT LAKES AA greatlakesaa.com

TALLAHASSEE AA bscamerica.com

SAN ANTONIO AA CORPUS CHRISTI AA

TALLAHASSEE AA

VALUE AA valueautoauction.com

SERVNETAUCTIONS.COM 15_UCN.indd 1

1/12/24 7:28 PM

16_UCN.indd 1

1/12/24 7:27 PM