Used Car News 2/12/24 by General Media LLC

USED CAR NEWS

Used Car News 2 / 12 /2024

BHPH Dealer Exits into Marketing Biz

IN THIS ISSUE: • Finance News • Compliance Photo by Jeffrey Bellant TALKING SHOP: Kendra Brown (far left) joined several industry leaders at an NIADA Convention & Expo to discuss life as a buy-here, pay-here dealer.

By Jeffrey Bellant Kendra Brown, a second generation dealer and head of her own marketing company, has walked away from her buy-here, pay-here business. “We made that decision a few months ago,” she said. “We are in collecting mode only. We’re not selling cars.” Brown and her husband, Charles, who owned Brown Family Auto Sales, moved on to share another dealer’s lot in a nearby city, but strictly to continue collections on their existing accounts. Brown, who has served on panels at NIADA and other conventions, said with the rising rent on her Houston lot and the skyrocketing costs of acquiring inventory, combined with a need to sell more vehicles, it “wasn’t working.” She said even though Houston is a large market, the competition is

fierce. Another problem was when she and her husband tried to move out of Houston to a new city, they weren’t allowed to transfer their dealer license. In the end, however, it was just the right time to call it quits. One of the areas where Brown was a stickler in her business was debt, a topic that draws differing philosophies. She said someone in a dealer Facebook group once asked whether debt can be good. Dealers typed into the discussion to say, “As long as you can manage it,” or “as long as you can do it right,” Brown said, “In the past three months I’ve seen those dealers who piped in saying that kind of stuff – they’re out of business now.” For Brown, debt was the crux of the matter. She tells a story about a time in 2018 when she and Charles went to a Texas dealer conference. Each at-

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• Retail Markets Kendra Brown loans. That’s why their score is low tended different sessions. “He sat in on a dealer panel that because it’s unpredictable. It’s high was all about how to get inventory,” risk. “So that’s why I say, figure out Brown said, “and I sat in on a panel your risk appetite.” that was all about how to get out of Brown said it’s hard for her to give debt. advice because everyone’s business “So, the joke afterwards was that style is different. Her business had I was in the panel on how to get a very low floorplan and an unseout of debt and he was in the panel cured line of credit with very low about how to get into debt.” interest. The strategy for dealers who And that’s another one of the reawanted out of debt was to close losons why the couple made their cations and get smaller. exit – higher interest rates. It wasn’t “It was a process of de-leveragwhat they enjoyed eight years ago. ing,” she said. She would advise dealers to make Brown would tell future BHPH sure you know your numbers and dealers to take a hard look at their vet your lenders. stomach for the business. “If anything, be disciplined in the “I would say before you get into financial aspect,” she said. the BHPH business, have a serious It’s not different than her customassessment of your own appetite for ers at tax time. The people who risk,” Brown said. “Never forget that want to come in and put their entire they are called subprime loans berefund checks down on a car are the cause they are unpredictable. customers who fail, Brown said. “You can’t predict when or how or “It doesn’t end well,” she said. “It’s UCNgoing Front Feb 12.pdf 1 2/2/24 3:23 PM why CAA-IAA they are to pay on their Continued on page 3

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Used Car News 2/12/2024

Lender Uses AI to Examine Changing Marketplace By Jeffrey Bellant

In a topsy-turvy economic market, one auto lender’s strategy is about staying in its lane, doing what it does best. Lendbuzz, founded in 2016, is an AI-based financial technology company that helps consumers access credit when purchasing a vehicle. “We use machine learning and alternative data to provide better access to credit to underserved populations, mostly focused on consumers who do not have a credit file, a thin file, and near-prime consumers,” said Amitay Kalmar, chief executive officer and co-founder. “We work with thousands of dealerships nationwide to help them finance their clients and sell cars to a more diverse customer base.” “We’ve been good, a very busy new year, no complaints.” Kalmar discussed some major macrotrends that have recently hit the industry. “The first one is the constraint on new-vehicle inventory which started with the supply issues in 2021,” he said. The impact on new-car dealerships, but even more on the used-car dealerships.

“The values just skyrocketed,” Kalmar said. “There was a lack of supply, so it’s been challenging to get inventory as well as sell inventory at these levels. “Consumers used to getting into a car with an average monthly payment of $350 or $450 now are going in and having to pay $650 or $750 for a similar vehicle.” The end of 2023 and early 2024 have seen the closure of prominent used car dealerships and others are going to continue to struggle, he added. Another big issue is the higher interest rates impacting consumers, Kalmar said. “We are hoping that 2024 will show a shift in that trend and provide relief to consumers,” he said. The third big issue is consumer delinquencies. “So, we moved from a trough of delinquencies – a historical bottom in 2021 driven by government stimulus – to near an all-time peak in nonprime auto delinquencies in 2023,” Kalmar said. This has had a huge impact on vendors in this space who are struggling with higher funding costs as well as higher defaults and higher losses.

“On that side we are probably seeing stabilization,” Kalmar said. “So, toward the second half of 2023 we have started to see that trend stabilize. We’re hoping we are at the peak or near the peak and we’ll see some reversion to the mean as inflation and rates decrease.” The fourth big trend is the significant pull back of lenders in this space, Kalmar said. The regional banking crisis that happened in March 2023 resulted in banks pulling back from products, with indirect auto loans being at the

top of the list. “It’s a product that doesn’t create a long-term relationship with a consumer (for the banks),” Kalmar said. Even specialty lenders that just deal with auto loans have pulled back. “These are big trends over the last 12 to 18 months,” he said. “It’s a lot of moving parts.” Kalmar said what has helped LendBuzz fair better than other players in the industry is that it is “relatively conservative on the Continued on page 4

BHPH Dealer – Continued from page 1 the cycle where it’s feast during tax time and famine three months later when they can’t make their payments.” Brown doesn’t believe their missteps were in the area of underwriting. The pandemic simply made it harder and more expensive to acquire inventory. “We have little appetite for debt,” Brown said. “For our lifestyle – if you can’t sleep at night, then it’s not fun anymore.” In July 2023, after their last tax season, Brown looked at certain KPIs (key performance indicators) that she felt needed to be met. They weren’t. “I could look back and say, ‘OK, we haven’t been consistently meeting these KPIs – we have to pull the plug,’” she said. Dealers who can’t make that

hard decision can end up in a bad place. Some dealerships start cutting corners when things get tight or uncertain. There are always stories of dealers who fudge numbers on bank statements with an intention to make it right later. But that can end in disaster. Brown and her husband’s understanding of leverage and their philosophy about debt prevented them from a catastrophe and have allowed them to make a soft landing out of the business. Their portfolio still includes about 65 accounts, which allows them to continue collections through the middle of next year. “We’re not going to walk away with nothing and we’re not going to walk away in Chapter 11, we’re still collecting,” she said. “It’s the best I could have asked for.”

The couple still had to face a life apart from their dealership. Brown said her husband is missing the dealer life but he went back to landscape construction, his previous career. Even now, Brown won’t say she’ll never go back. “We’re 90% certain we’re done with buy-here, pay-here,” she said. “If I were ever to ramp it back up, I would be a retail operator.” For now, Brown has started her own marketing company to help BHPH dealers. She said The Dream Team Media Company hit its revenue goal for its first full year in business in 2023. She even spoke at a recent dealer conference related to her marketing work. “Things are going well,” she said. Ironically, if it wasn’t for her time in the dealership, Brown might not have ever ended up

with the marketing company. “I chose to go into marketing in 2020 because I found a passion for it within my dealership,” she said. “Then I went on to work with other dealers.” During a presentation at a recent dealer conference, Brown was there with people who knew her before she created The Dream Team Media Company and saw the transition. One person she spoke to at the conference told her she seemed more passionate about marketing. “I think that’s probably accurate,” Brown said. “With my personality type, I’m a constant learner and, at some point, knowing everything about compliance just doesn’t interest me. “I love to apply my knowledge of the industry to really help dealers where they need to go. “I’m happy about it.”

Finance News

USED CAR NEWS

02/12/2024 Continued from prior page credit side,” not participating in the traditional subprime, which is the part of the market that’s faced the most challenges. “So, our losses have been relatively muted,” he said, though in a time of widespread delinquencies, LendBuzz will still be hit, just not as hard as other players. LendBuzz is also conservative in balance sheet management, leverage, how much risk it likes to take, etc. “So, the increase in funding costs has obviously been a drag on the bottom line,” Kalmar said, “but it didn’t really destabilize the business.” LendBuzz also benefited from the pullback of local banks and credit unions from the market after they offered rates that didn’t take into account the actual credit risk, he said. “Their pullback from the market allowed us to be more aggressive and take share from the market where we think credit is misunderstood or mispriced,” Kalmar said. “We’re able to offer consumers a better deal.

“So, we’ve been able to increase volume this year in excess of 50% in year-over-year growth, while most lenders have been pulling back.” What helps LendBuzz is, for good or bad, it only offers a specific product to a specific segment of the market. So, it’s unlike a bank or lender that dabbles in different segments or markets, jumping in or out depending on dips or rises in the economy. “As a result, when we look at credit risk, do our planning, do our pricing, we think about it through cycles, making sure we are able to go through a challenging consumer credit cycle and come out the other side still profitable,” Kalmar said. “And usually, when the cycle is bad, that’s where there is more opportunity. But you have to know your segment very well. You have to know your dealerships very well. You have to know the inventory you are dealing with very well, as well as the historical trends.” Without the luxury of diversification that a local bank has, LendBuzz has to be an expert in the narrow market it serves.

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For example, Kalmar said a very small percentage of his consumers’ FICO scores are below 500-550. “What we know to do well are people who don’t have a credit file or have a thin file or a near prime score of 550 to 700,” he said. “The traditional deep subprime is not where we are very good.” Using alternative data helps LendBuzz identify a potential customer who would otherwise be defaulted to a subprime or deep subprime lender at higher rates. This allows them to offer this type of consumer a better rate and get them into a better car that’s less likely to break down, driving them into a deep subprime cycle, Kalmar said. For LendBuzz, focusing on its specific segment of market, a specific type of dealership and a limited number of finance programs is what helps it navigate a challenging economic environment. “We’re also a very data-driven company,” he said. “Everything is done based on machine-learning scores which allows us to identify very early on where the models are performing and not performing to respond quickly. “Hopefully, we’ll be able to continue to execute at the same level.” At press time, Kalmar was planning to attend the NADA conference which was held Feb. 1-4 and he is looking ahead to the National Independent Automobile Dealers Association Convention & Expo in Las Vegas this summer. “We like NIADA, he said. “It’s a smaller conference, but it’s focused on independents and independents are a big part of our business and it’s a good opportunity to get out there and meet people.” Looking at the current landscape, Kalmar sees some daylight coming. “I think overall, we expect the delinquencies to reach the peak, or close to the peak, based on historical trends,” he said. “We are – in nonprime auto – at monthly delinquency rates that are very close, or equal to 2008-2009, which was obviously a much more challenging economic environment with much higher unemployment rates. “So, I think we’re going to see stabilization or decline (in delinquencies) from here.” This means LendBuzz will continue to be aggressive and continue to expand. “We are not playing defense at this time,” Kalmar said. LendBuzz is still monitoring credit performance. Kalmar thinks the company is “in a good spot to expand the business.”

Volume 29 | No.13 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 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

Political News 2/12/2024

Car Dealer Hopes to Move to Congress from State Senate Andy Zay, an Indiana independent auto dealer and former president of the Indiana Independent Automobile Dealers Association, wants to be a strong voice for the industry in Washington, D.C. Zay, a sitting Republican state senator, is running for the U.S. House of Representatives seat in Indiana’s Third Congressional District. The Republican primary for the race is May 7. Zay is one of 10 candidates in the crowded field. Zay attended the NIADA Policy

Conference in Washington, D.C., last September and the BHPH Dealer Forum in Indianapolis, Ind., in the fall, speaking on the benefits of having a fellow independent auto dealer in Congress. “I’m running for Congress because I believe we need leadership in Washington,” Zay said, “We are in desperate need of a representative who will work to cut stifling red tape, bring the right-torepair policy to the front of the line, and get the CFPB off the back of the

auto industry.” “In Washington, I’ll be a voice and a vote for retail auto dealers across our country and fight back against harmful policies. “In fact, I will be the only legislator in Congress representing independent car dealers.” Zay of Huntington, Ind., spoke last year about running a dealership while serving his state in the legislature. “When you’re home, you’re constantly doing political work, whether it’s networking with some of your

colleagues, or local elected officials,” Zay said. “You understand what’s needed to provide the best constituent service and to have the best public service we can in Indiana.” Zay has benefited from numerous endorsements in his run for Congress, including the backing of more than a dozen fellow state senators. Zay previously served as president of the IIADA. In 2023, he was honored for his exemplary service to the group.

Consumer Confidence Rises The Conference Board Consumer Confidence Index rose in January to 114.8 (1985=100), up from a revised 108.0 in December. The reading was the highest since December 2021, and marked the third straight monthly increase. The Present Situation Index— based on consumers’ assessment of current business and labor market conditions—surged to 161.3 (1985=100) from 147.2 last month. The Expectations Index—based on consumers’ short-term outlook for income, business, and labor market conditions—improved to 83.8 (1985=100) in January, up from a revised reading of 81.9 in December. “January’s increase in consumer confidence likely reflected slower inflation, anticipation of lower interest rates ahead, and generally favorable employment conditions as companies continue to hoard labor,” said Dana Peterson, chief economist at The Conference Board. “The gain was seen across all age groups, but largest for consumers 55 and over. Likewise, confidence improved for all income groups except the very top; only households earning $125,000+ saw a slight dip. January’s write-in responses revealed that consumers remain concerned about rising prices although inflation expectations fell to a three-year low. Buying plans dipped in January, but consumers continued to rate their income and personal finances favorably -- currently and over the next six months. Consumers’ Perceived Likelihood of a U.S. Recession over the Next 12 Months continued to gradually ease in January, consistent with an Expectations Index rising above 80.” Peterson added: “Assessments of

the present situation rose in January, buoyed by more positive views of business conditions and the employment situation. Furthermore, when asked to assess their current family financial conditions (a measure not included in calculating the Present Situation Index), the proportion reporting ‘good’ increased while those saying ‘bad’ fell. This suggests consumers are starting off the year in good spirits about their current finances. “Consumer expectations for the next six months increased slightly in January, due to receding pessimism around future business conditions, labor market, and income prospects. Expectations that interest rates will rise in the year ahead plummeted to just 41.5 percent. Average 12-month inflation expectations fell to 5.2 percent, the lowest since March 2020 (4.%). Consumers’ views of their expected family financial situation, six months hence (not included in calculating the Expectations Index) were slightly more tempered in January but remained on net optimistic. On a month-to-month and six-month basis, buying plans for autos, homes, and big-ticket appliances declined slightly.” Consumers’ assessments of current business conditions were more positive in January. • 22.5% of consumers said business conditions were “good,” up from 21.1% in December. • 14.2% said business conditions were “bad,” down from 17.2%. Consumers’ appraisal of the labor market was also more positive in January. • 16.6% of consumers expect business conditions to improve, down from 18.7% in December.

Used Car News 2/12/2024

State AG Sues Dealer for Alleged Violations Rhode Island Attorney General Peter Neronha has filed a lawsuit against a car dealership for deceptive sales and advertising practices, in violation of the state’s consumer protection law. In a complaint filed in Rhode Island Superior Court, the attorney general alleges that King Philip Motors, based in Bristol, R.I., and its two managers, Neil and Tammy DeAlmeida, engaged in the sale and advertising of unsafe motor vehicles, including a years-long practice of failing to obtain a state safety inspection and window sticker before offering vehicles for sale. The practice of selling vehicles without an inspection is a violation of the Deceptive Trade Practices Act. A customer in Rhode Island filed a complaint regarding his experience with the defendants. According to the customer, he purchased a GMC

Acadia and immediately began to have issues. When the customer’s 16-year-old child was driving home from school, the vehicle died at a traffic light. Neil DeAlmeida allegedly blamed the consumer for these issues and became verbally abusive. After the Division of Motor Vehicles began an investigation and a thirdparty diagnosed the vehicle with a failing engine, the defendants agreed to buy it back from the consumer. As alleged in the complaint, instead of making those repairs, the defendants sold the vehicle to another consumer without disclosing the issue and prior to the vehicle passing a state safety inspection. The DMV eventually ordered the dealer to buy back the vehicle. Another consumer allegedly bought a vehicle from King Philip Motors but his check-engine light came on during his ride home. The consumer attempted to have the

Photo Courtesy of Rhode Island Attorney General

LAWSUIT: Rhode Island Attorney General Peter Neronha has filed a lawsuit against a dealership for alleged unfair and deceptive sales and advertising.

dealer fix the issues nine times, but the defendants allegedly refused to attempt any more repairs. According to this consumer, DeAlmeida allegedly became physically threatening. The state is seeking to bar King

Philip Motors from unfair and deceptive sales and advertising, as well as to obtain civil penalties. “Consumer protection is just as much about safety as it is about money,” said Neronha.

Hemmings Celebrates 70th Anniversary with Title Product By Jeffrey Bellant

For some, the Hemmings name will always refer to the monthly classified collector car ads stuffed in the plain brown wrapper of what looks like a small telephone book. But times have changed. As it celebrates its 70th year, Hemmings has launched Hemmings Pay + Title, a first in the collector car space. The new service, powered by KeySavvy, provides secure payment and vehicle titling, which can often be complicated, particularly across state lines. Pay + Title is the newest offering in the Hemmings.com “frictionless marketplace” that helps collector car enthusiasts buy, sell, and beyond. “This innovation is a first-ever revolutionary service that streamlines the payment and vehicle titling process securely for collector cars,” said Jonathan Shaw, president of Hemmings. “Pay + Title underscores Hemmings’ commitment to providing secure, efficient solutions that enhance the collector car experience and build trust within our community.” Shaw, president since 2020, unveiled the new service during a recent webinar. He has worked to push Hemmings into a “dynamic

digital marketplace” while preserving its present legacy. He celebrated the Hemmings legacy, which began in 1954 when Ernest Hemmings from Quincy, Ill., found a way to connect Model A and Model T enthusiasts at the same time. “He printed a four-page pamphlet, mailed it to 100 different enthusiasts and that became the original collector car marketplace,” Shaw said. “Our mission today remains the same as it was 70 years ago at our founding, to uplift and grow the collector community.” The company’s move into the digital space keeps that original mission in mind. “At Hemmings we live for the collector car community because we were here when the hobby started,” Shaw said. The community is made up of 18 million collector car owners of all ages. Shaw said Millennials and Gen Z account for the majority of insurance quotes for collector cars. Shaw said the market includes more than 327,000 collector vehicle transactions in 2022. On the digital side, there were more than 42,000 online auction sales of collector vehicles. To service this massive market, Hemmings has an app and offers its classified marketplace, an online

Jonathan Shaw

marketplace and an online auction – totaling 30,000 collector vehicles for sale monthly. In response to consumers’ concerns, Hemmings has launched a valuation product, a pre-purchase inspection, a shipping product, an insurance marketplace and a secure environment where people can pay for and title their collector vehicle. Pay + Title features a promise to make the process “the safest, easiest, and fastest way” to transfer funds and titles between buyers and sellers, including:

• Online Payments: Buyers can pay sellers online using their bank account. There is no need to meet at the bank or carry large amounts of cash. • Scam Protection - Hemmings Pay + Title eliminates title and payment fraud by verifying the buyer’s identity and the seller’s ownership of the vehicle. • DMV Paperwork - Detailed instructions for signing the title and other paperwork required to transfer ownership are provided. Hemmings Pay + Title works with even the most complicated sales.

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Retail Markets Compiled by

2/12/2024

Ed Fitzgerald

COLORADO

John Lindberg, owner, Stan’s Auto Sales, Westminster, Colo. “My wife and I and another couple bought out Stan Martin a couple years ago. I had a store for 20 years, Auto Warehouse in Brighton. I sold that to my niece and employees who worked for me – just trying to take care of the people who take care of you. “We carry between 70 and 100 vehicles. We sell from 45-80 per month. “In Colorado we focus more on SUVs because that’s what people typically want. Trucks are hard to buy, but they are good sellers. “Imports and domestic sales are probably 50-50, not one more than the other. If we’re selling a truck, then it’s definitely a domestic. You really can’t buy a Toyota truck, that would really be

more difficult. “I attend auctions a couple times a week, but COVID has changed that. We do more online. We go to Dealers Auto Auction of the Rockies. “Our customers’ down payments are really all over the board, from $500 to $8,000 – whatever they’ve got, and we try to make it work for them. “We spend about $700 on reconditioning. Tires can be $300-400, right there. “All of our advertising is online. “I’m looking for the midline car that people can afford, not too old, not too new, a car that is still financeable or something the banks like as collateral. Mileage has changed over time. You used to think that 100,000 was, oh my gosh, a lot of miles. Now it’s ‘only’ got 100,000 miles.” “Right now is probably not a great time for someone to

get into this business. You have to watch your cash flow. A lot of new dealers get into flooring a lot of vehicles, then tough times hit or interest rates rise, and they’re stuck with all these cars, and you’re swimming around. You’ve got to be real smart now. “The last car we sold was an Audi Q5 with around 87,000 miles.”

NEBRASKA

Chad Tessman, owner, Velocity Auto Sales, York, Neb. “I have been in the business for 24 years, 12 at a Chrysler dealership and 12 on my own with my current dealership. We were the state Quality Dealer of the Year in 2019. “The average number of vehicles in our inventory is 35. We sell an average of 25 per month. Our sales are

25% trucks, 25% cars and 25% SUVs. We sell more domestics than imports. “We do some buy-here, pay-here. “We do our reconditioning work in-house and spend an average of around $1,200 per vehicle. “I attend auctions both inperson and online. The average vehicle we’re looking for is a 2012 and with 100K miles. “Our average down payment from customers is $1,500 over 36 months. “Dealers just getting into this business should start out slow and avoid, or limit, debt. “We have extensive relationships in the dealer community that allow us to purchase a wide variety of lease returns and new car trades. We offer a full array of financing options. “We run history checks on

all of our vehicles and every vehicle is inspected for the customer’s piece of mind. Customers do not have to worry about high pressure sales, back and forth negotiating, extra fees, or any of the other hassles. “Getting a car serviced can be stressful. We offer shuttle service. If customers prefer to wait, then we have a luxurious waiting area. “We believe in providing cars with the exact service that it needs. What that means is that customers will see us a little less, because we will have done the service right the first time. As much as we love seeing our customers, we prefer to see them with a smile on their face rather than a problem in their car. “The last vehicle I sold was a 2011 Ford F-150 Lariat with 106,000 miles. We sold it for $17,500.”

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Wholesale Markets 2/12/2024

Compiled by

Jeffrey Bellant

CONNECTICUT

Tanner Litowski, national remarketing manager, Central Auto Auction, Hamden, Conn. “We have four lanes, but typically we’re running three lanes. “Volume per sale is probably about 150 to 200. We also have a government contract and those vehicles once a month. On those sales, it doubles our volume to 300+. “The government sale is typically on the third Tuesday of each month. “(Our conversion rates) are typically around 60%. “For sales, we usually have about 75, maybe 100 (bidders) in the lanes physically. Then we get 100 to 150 total who are online (Edge Pipeline). We run weekly on simulcast, as well. “A predominant part of our business is going to be fleet/lease/repos. We have a

number of those companies and donation companies. Of course, we also have dealer trades. “I would say 60% to 70% of our volumes are probably non-dealer vehicles. We do a lot of business through our donation cars. “Just donation vehicles alone will make up 60 cars a week in our sale. “Our average price across the block? That’s a fantastic question. I’ll say we’re a ‘better-value’ auction. There’s no such thing as cheap cars in this industry. So, I would say our forte is that vehicle that’s $10,000 and under. “Everybody’s remaining extremely positive. We have tax season coming up and that’s definitely going to be freeing up some business. Also, I think we’re going to see a flood of inventory hitting the market this year. “On March 19, we’re go-

ing to have an extremely big promotion. We’re going to be spotlighting a couple of repo companies. We’re going to have a promotion where any vehicle that you purchase (or sell), you’re going to be entered into a drawing for up to $2,500. “Last year, Central Auto Auction had a fantastic year. We’re excited about 2024 and what it has in store for us and our customers.”

GEORGIA

Corey Sanford, general manager, America’s Auto Auction - Atlanta, Cartersville, Ga. “It’s been on fire. It’s been going so well. “For the month of January, we sold 2,400 cars and ran about 1,000 to 1,100 a week. “We got the Westlake account, which is, from what I’m hearing, the largest fleet/lease company in

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America. They are giving me more cars than I know what to do with. “On top of that, we landed the Hughes Automotive group out of Athens, Ga. They have a Honda store, a Toyota store and a Subaru store. That’s another 80-sold cars a month. “In 2023, the percentage of fleet/lease would have been 92% new-car trades and 8% fleet/lease. Now, because of Westlake, it’s more like 85% new-car trades and 15% fleet/lease. “The number of dealers in the (physical lanes) is down and Internet is up. We’re getting about 450 in the lanes and another 450 online. “Dealers say they are doing good, but they’re feeling their volume constraints. They’re not getting enough cars. The lots are still not packed in this part of the world. But they are selling.

“As for us, January, February and March are my three favorite months of the year. That’s where you make your money. “Our average price on the block is $9,800. It was higher pre-COVID but I’m running a lot more in-ops, It’s just grown a lot. The in-op sale is twice a month. That brings the average price down. I run 150 per sale so about 300 total a month. I take 16 pictures of each car and run two big screen TVs on one lane, so dealers are not out in the weather. We sell about 90%. “For us, 2023 was another record year. We’re strong as death. For eight years, we’ve been growing every year. “I’m excited and looking forward to the spring. I have the best sales team in America. My sales manager has been with me for 18 years. She’s one of the best in the business.”

Used Car News

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. 3 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. 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)

P O D C A S T L I S T E N N O W O N Y O U R F A V O R I T E S T R E A M I N G S E R V I C E .

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

ADESA Boston March 1, 15, 29 508-626-7000

Columbus Fair March 6, 13 614-497-2000

Manheim Orlando March 5, 12, 19, 26 800-822-2886

ADESA Charlotte March 7, 21 704-587-7653

Manheim Atlanta March 7, 20, 21 404-762-9211

Manheim Atlanta March 20 404-762-9211

Manheim Nevada March 8 702-730-1400

Manheim Pennsylvania March 7, 21 800-822-2886

Manheim Palm Beach March 13, 14 561-790-1200

ADESA Chicago March 1, 29 847-551-2151

Manheim New Jersey March 13, 27 609-298-3400

Manheim Riverside March 14, 28 951-689-6000

Manheim Dallas March 13, 26, 27 877-860-1651

Manheim Dallas March 26 877-860-1651

Manheim Pennsylvania March 1, 7, 8, 15, 21, 22, 29 800-822-2886

ADESA Cincinnati/Dayton March 5 937-746-4000

Manheim Orlando March 26 800-822-2886

Manheim Seattle March 6 206-762-1600

Manheim Denver March 27 800-822-1177

Manheim Milwaukee March 27 262-835-4436

Manheim Phoenix March 14, 28 623-907-7000

ADESA Golden Gate March 5 209-839-8000

Manheim Detroit March 7, 21 734-654-7100

Manheim Nashville March 13 615-773-3800

Manheim Palm Beach March 13 561-790-1200

Manheim Pittsburgh March 27 724-452-5555

ADESA Indianapolis March 5, 19 317-838-8000

Manheim Fredericksburg March 14, 28 540-368-3400

Manheim Riverside March 12, 14, 26, 28 951-689-6000

ADESA Kansas City March 5, 19 816-525-1100

Manheim Milwaukee March 13, 27 262-835-4436

Manheim Seattle March 6 206-762-1600

ADESA Lexington March 14 859-263-5163

Manheim Minneapolis March 20 763-425-7653

Manheim Southern California March 7, 21 909-822-2261

ADESA New Jersey March 7, 21 908-725-2200

Manheim Nashville March 12, 13 615-773-3800

Manheim Tampa March 7, 21 800-622-7292

ADESA Salt Lake March 26 801-322-1234

Manheim Nevada March 8 702-730-1400

Manheim Texas Hobby March 7, 21 713-649-8233

ADESA Boston March 1, 15, 29 508-626-7000

Manheim Denver March 27 800-822-1177

ADESA Tulsa March 8 918-437-9044

Manheim New Jersey March 13, 27 609-298-3400

Southern AA March 27 860-292-7500

ADESA Charlotte March 7 704-587-7653

Manheim Pittsburgh March 27 724-452-5555

Manheim Fredericksburg March 14, 28 540-368-3400

ADESA Washington DC March 27 703-996-1100

Manheim New Orleans March 13, 27 985-643-2061

ADESA Salt Lake March 26 801-322-1234

Manheim Seattle March 6 206-762-1600

Manheim New Jersey March 13, 27 609-298-3400

Columbus Fair March 6 614-497-2000

Manheim Southern California March 7, 21 909-822-2261

Manheim Orlando March 5, 19 800-822-2886

Manheim Dallas March 13, 17 877-860-1651

Southern AA March 27 860-292-7500

Manheim Pennsylvania March 8, 22 800-822-2886

Manheim Atlanta March 20 404-762-9211

Manheim Milwaukee March 27 262-835-4436

Manheim Pennsylvania March 7, 21 800-822-2886

Manheim Dallas March 26 877-860-1651

Manheim Nashville March 13 615-773-3800

Manheim Riverside March 14, 28 951-689-6000

Manheim Palm Beach March 13 561-790-1200

Manheim Seattle March 6 206-762-1600

Financial Services* Manheim Atlanta March 20 404-762-9211

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.

(3/24)

Wholesale Numbers

USED CAR NEWS

2/12/2024 seg_type -------Car Car Car Car Car Car Car Car Car Car Truck Truck Truck Truck Truck Truck Truck Truck Truck Truck Car Car Car Car Car Car Car Car Car Car Truck Truck Truck Truck Truck Truck Truck Truck Truck Truck Car Car Car Car Car Car Car Car Car Car Truck Truck Truck Truck Truck Truck Truck Truck Truck Truck Car Car Car Car Car Car Car Car Car Car Truck Truck Truck Truck Truck Truck Truck Truck Truck Truck

make_model_name --------------Toyota Camry Honda Civic Honda Accord Toyota Corolla Nissan Altima Chevrolet Malibu Hyundai Elantra Nissan Sentra Hyundai Sonata Ford Mustang Ford F150 Chevrolet Silverado 1500 Honda CR-V Toyota RAV4 Ram 1500 Jeep Grand Cherokee Toyota Tacoma Ford Escape Jeep Wrangler Nissan Rogue Toyota Camry Honda Civic Honda Accord Toyota Corolla Nissan Altima Chevrolet Malibu Hyundai Elantra Nissan Sentra Hyundai Sonata Ford Mustang Ford F150 Chevrolet Silverado 1500 Honda CR-V Toyota RAV4 Ram 1500 Jeep Grand Cherokee Toyota Tacoma Ford Escape Jeep Wrangler Nissan Rogue Toyota Camry Honda Civic Honda Accord Toyota Corolla Nissan Altima Chevrolet Malibu Hyundai Elantra Nissan Sentra Hyundai Sonata Ford Mustang Ford F150 Chevrolet Silverado 1500 Honda CR-V Toyota RAV4 Ram 1500 Jeep Grand Cherokee Toyota Tacoma Ford Escape Jeep Wrangler Nissan Rogue Toyota Camry Honda Civic Honda Accord Toyota Corolla Nissan Altima Chevrolet Malibu Hyundai Elantra Nissan Sentra Hyundai Sonata Ford Mustang Ford F150 Chevrolet Silverado 1500 Honda CR-V Toyota RAV4 Ram 1500 Jeep Grand Cherokee Toyota Tacoma Ford Escape Jeep Wrangler Nissan Rogue

2023-02-01 ---------17400 16475 18625 15575 14400 14125 13200 13850 14750 18050 31100 29250 21200 21425 30800 22650 28325 15200 31600 15675 19100 18050 20375 17400 16475 16025 15325 16125 16700 19975 34500 35250 23225 23075 33500 25550 30275 17650 34350 17500 21050 19675 22300 18750 17650 17500 16475 17825 18250 22750 40000 37150 25350 24550 36500 28000 32375 20025 38625 22750 23200 22525 24525 20325 18825 18125 17600 18925 20400 25975 44000 43200 26500 27275 39500 31600 33950 22425 41375 24950

2023-08-01 ---------17750 16425 19025 15625 15450 15025 12950 14050 14800 21600 31100 32700 22100 22175 31900 21675 30025 16225 32150 17900 19750 18400 21000 17900 17775 17900 15275 17125 17550 23675 34000 36000 24200 23675 34750 24100 32275 19150 35200 19900 22200 20175 23150 19400 19225 19750 16975 19250 19425 26350 40500 38500 26350 25600 37750 26750 33775 21500 38875 23900 23975 22225 25000 20325 20225 20775 18400 20550 21500 28775 45800 42000 28400 27900 41250 31125 35725 23900 43075 24950

2024-02-01 ---------14350 12350 14400 11725 11950 12350 9300 9600 10200 14800 23200 24000 17450 17125 25600 17050 25475 12000 25100 13700 16125 14000 16300 13150 13875 14050 11675 12750 13500 17250 28200 28000 19250 19050 29700 19850 27000 13700 28125 15500 18100 15450 18050 14850 16575 16200 13025 14200 15400 19250 32700 30500 21750 20500 32200 21250 28000 15200 31375 19150 19500 17200 20100 16175 17575 17200 14250 15050 16525 20975 37000 38000 23050 23000 33800 23100 29325 17250 35725 20250

2025-02-01 ---------11875 9925 12075 9450 9850 9525 7325 7625 8100 12775 20400 21350 14800 14800 21525 13800 23350 10325 22900 11175 13425 11400 13650 10950 11400 10950 9175 10275 10925 15075 24750 24900 16400 16575 25000 16300 24925 11975 25450 12875 15350 12725 15450 12425 13650 12800 10600 11575 12500 17250 28825 27650 18475 17875 27425 17925 25925 13500 28075 16150 16550 14600 17775 13675 14775 13925 11800 12400 13600 19075 32700 34625 19700 20425 29550 19975 27350 15450 31675 17250

2026-02-01 ---------10150 8300 10225 8000 8200 7475 5825 6200 6725 10750 17675 18600 12700 12925 18125 11225 21125 8850 20550 8900 11600 9600 11525 9375 9450 8650 7350 8450 8950 12925 21375 21650 14150 14525 21025 13450 22600 10475 22700 10575 13175 10850 13375 10700 11350 10250 8700 9575 10275 15175 24975 24475 16050 15700 23350 15050 23650 11925 24750 13250 14400 12800 15775 11925 12475 11400 9900 10375 11350 17000 28325 30800 17275 18275 25800 17300 25125 13725 27725 14375

Actual Wholesale and Projected Residual Values

my --------s2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022

Source: Black Book

Tony Moorby

Disconnected Jottings From

Tony Moorby 2/12/2024

• 50-year veteran of the industry

There was a time when I would freely opine on things political. That was when everyone’s opinion was respected on a ‘to each, his own’ basis. While it was still a subject to be avoided at a polite dinner table – just like sex and religion – it used to rouse little more than gentle banter in mixed company. Sometimes a little vocal thrust and parry to test the sentiments of a group could be an enjoyable joust of words without insult. I’ve been known to harshly criticize sitting presidents and even Congress in general and though quite single-sided, I knew others’ opinions could be just as fervent on the con side of argument but without ire or irritation. I think the fixations of political leanings these days are almost viciously guard-

ed, to the point of completely ignoring those of others. There’s no middle ground these days – in Congress or in public. It’s a shame. There is so much to enjoy and celebrate in this country. The pandemic made people selfish and inward looking and I wonder how long it will take us to revere what’s around us rather than revile it. For instance, there’s nothing actually wrong with immigration – it built this country – control and consistency are the watchwords. It took me nearly 15 years to qualify as an American citizen going through the various visa statuses during that time. Not only was the endeavor worthwhile, it made me appreciate all that’s good here. Hard work and a broad mind has brought so many benefits to me and my family

– more so here than in England, for instance. Lest you think I was born with a silver spoon firmly planted in my mouth, I grew up among the bombsites of post-war London when food was rationed and we made the best of it. Self-dependency probably formed the early basis of my conservative views, as I witnessed my parents making something out of nothing. However, my conservatism doesn’t stretch so far as to dismiss the feelings of others. The world around us seems to be comprised of single-minded groups, to the detriment of progress and betterment. Wars are rife, senselessly sucking the lifeblood from populations and economies. The Ukraine campaign is the belligerent whim of one man. Syria suffers under al-Assad as African dicta-

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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

again. I read he didn’t see his shadow so spring is arriving early. In the very next article the National Weather Service said that cold and wet conditions would last well beyond normal. Choose which one you believe. Sounds like our politicians!

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Solution to this puzzle in the 3/4/2024 issue. Call 1.800.794.0760 for a FREE subscription.

2000 of ADT Automotive

• Served as ADESA’s

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

By Myles Mellor

Across 33 Type of car popularized by the Ford 1 Bentley model, 2 Mustang words 34 Aston Martin ___ 6 BMW’s little suc12 cess 35 Honda models 10 Jeep SUV 39 Swerves 11 Adjusts the suspension to improve 40 Speedometer or tire life tachometer, e.g. 13 X3 and X5 maker 42 Radiator cover 15 Alfa Romeo’s lux43 Attempt ury plug-in hybrid 44 Calendar abbr. 17 Manufactured 45 Compete 19 Maine time, abbr. 47 Chinese car com21 Email address pany intro 22 Profit for an inves- 48 Electric vehicle, for short tor, abbr. 49 Muscle car, 2 23 Rambler car from words the 50s and 60s 26 __-driver in long Down races 1 Former Pontiac model 28 Light brown 29 Separation 2 Urge 31 Acura model 3 Make a deal 32 Printer maker 4 4 door car

• President from 1997–

tors annihilate hundreds of thousands while they line their Swiss bank accounts. Economic cycles are very often out of synch with the political philosophies of those in power – it takes years to turn this country around so the claims to fame or the pointing of blame are often misplaced, shrouded in the mists of time or the changing flat world around us. I feel I should apologize for this rambling rant. I should probably have come up with a rousing, new year’s optimistic theme. I fear it would have sounded hollow. When the weather reflects what is written, it’s known as a pathetic fallacy – the atmospheres being the same. Crazy weather abounds; it’s even been cold in the Carolinas. Punxsutawney Phil should go back to sleep

Solution to the 1/22/2024 puzzle

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