Used Car News 11/08/2021

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UCN

Used Car News

11/8/2021

Marvelous ‘Spider’ Camera Saves Time By Jeffrey Bellant

Buy with Total Confidence.

IN THIS ISSUE:

Rush - Dated Material

• Tax Sales • F&I • People in the News

Automotive consultants will tell used-car sellers they can never have enough photos. More photos and more angles are better, they say. Apparently, Black Widow Imaging took that advice to heart with an automated device that takes photos to a new level. A vehicle parks in a space with a spider-like device hung above, with cameras on the sides around the vehicle, covering all angles. Jason Hauk, CEO and founder of Black Widow Imaging, said in recent years mobile phones had become the typical tool for shooting vehicle photos. He said critics thought Black Widow’s approach was all a bit too much. But Black Widow launched in 2019 at the National Automobile Dealers Association Convention & Expo in San Francisco, and timing is everything. “Us building an automated device seemed a little excessive and against the grain of what everyone else was doing,” he said. “Everybody said, ‘Why in the heck do you need all that?’ “Then COVID hit, and it was like, ‘We’ve got to get a lot of volume done, where’s that Black Widow thing.” Hauk got his start in reconditioning vehicles for dealers out of St. Louis. “I’m a fixer by trade and I was the recon guy,” he said. “So, I kept trying to ease the headaches of the dealers.” Recon led to pinstripes to window tinting, to transportation to auc-

tions and then to photography. “Everywhere I went, I knew the finish line was the photos,” he said. “No matter how hard we worked, no matter how many trucks or people we had, no matter how much PDR we had, you were the outcast until

those photos were online. Nothing counted until that was done.” To make it more streamlined, they invented studios, turntables and beautiful $200,000 set-ups. “Nobody had any room for them,” Hauk said. “You also needed an experienced person to use them and if that person was sick, then no photos were being taken.” So, people focused on mobile phones, but since people are different heights, there were too many variants and no consistency, he said. Hauk started selling studios, but it

wasn’t a scalable solution. “We weren’t afraid to fail,” he said. So, the company focused on learning more and adapting to what could work. The answer for Hauk’s company was the Black Widow and it came to him while he was in bed, unable to sleep. Hauk said he looked up and saw the ceiling fan, which was off. “I thought everybody ’s got a service

drive or a garage door,” he said. “I thought, ‘I’ll just hang it from the ceiling.’” The company built the first version and went to market in 2019. “What it does is tie everything together and make everything go faster,” he said. It may not be the most perfect, elegant solution, but Hauk said it offers one of the most critical components in a fast-paced industry: consistency. “A trusted standard,” he said. Also, he wanted something that could be used by anyone, from the office manager to the porter. It isn’t a condition report, but the Continued on page 5

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Tax Season 11/8/2021

Upcoming Tax Season Signals Big Returns

By Jeffrey Bellant

There will be a tax season and it will be huge, according to Bill Neylan. With all the money dumped into the economy over the last 18 months, this past year’s tax season was a bit of a wash, said Neylan, president and CEO of TRS Tax Max. But the upcoming season looks strong for buy-here, pay-here dealers and it couldn’t come at a better time. As of now, TRS’s larger and mid-level dealers are seeing sales softening and down payments weakening. “Also, nothing serious, but they’re seeing their collections start to turn, as far as delinquencies,” Neylan said “What we’re seeing is that the money flow in the U.S. is drying up.” This comes after a period of unprecedented strength in the BHPH market buoyed by numerous government checks and a pandemic that forced businesses to shut down for a while. During that time, BHPH dealers did much better than typical retail sellers. Darla Booher, president and owner of Deal Depot in Greer, S.C., said business this year was “wide, wide, wide open” up until October, she said. “October was the first slow month we’ve had in about 18 months.” With the $1,200 stimulus checks gone and unemployment enhancements ended, the next big checks coming down the pike for BHPH customers are their tax refunds. “We’re projecting this to be the

best tax season in the past five years,” Neylan said. “In essence, tax refunds are going to be bigger to much bigger than last year.” The problem, however, is many in the industry think the exact opposite. “A lot of people feel there’s going to be no tax season at all because of the advanced child tax credit,” Neylan said. Getting into the weeds a bit, Neylan said the refundable portion of the Child Tax Credit last year and previous years was $1,400, which means if you had no tax due, you could still get $1,400 in your refund for every child. “With this new COVID plan, they increased the plan from $1,400 to $3,000,” Neylan said. So, the advanced portion this year is $1,500, even though the bump in the plan went to $1,600. Some dealers aren’t aware of the bump in the refundable portion, so they think their BHPH will get less refund money this year. Another thing is the Earned Income Credit is going to increase 3-5%, but a “substantial change” is going to affect people with no children. “Last year, you had to be 26 or older and make less than $15,000, and they would give you up to $500 in Earned Income Credit,” Neylan said. “They changed it so that if you’re 19 years or older and now make less than $27,000 a year, they’re going to give you Earned Income Credit up to $1,502.” Even though unemployment is considered income, it does not affect the Earned Income Tax Credit, he added. In effect, refunds for single people are going to increase from maybe $500 to $2,000, Neylan said.

On top of that, many taxpayers can get money back for day care expenses, up to 50% of up to $16,000. Bottom line: BHPH dealers are primed for a strong season. “This is the biggest tax incentive, for lower income people, in U.S. history,” Neylan said. Booher, the 2015 National Quality Dealer of the Year, is celebrating her 20th year in business. Part of the current challenge for her is like everyone else’s, finding inventory. “It’s not so much that you can’t go out and find cars, it’s that you have to pay exorbitant prices for them,” she said. One problem could occur when prices drop again and a BHPH customer sees he’s paying a higher payment on a car he bought when prices were sky high. That BHPH customer may walk away from that car and just buy another cheaper one to get a lower payment. Booher has 1,000 deals in her $10 million portfolio, so she’s concerned about having too many of these higher-priced car deals on the books. Still, the government handouts have made collections better than ever over the past year-and-a-half, Booher said. The tight inventory poses a different challenge for dealers like Booher, who normally would start stocking up for tax season on Oct. 1. During this time, prices are normally lower, so BHPH dealers usually buy early and sit on vehicles until tax refunds start. Then Booher starts throwing some “eye candy” vehicles onto her lot to draw customers’ attention, so that when the tax refunds come, they remember her dealer-

ship. With prices so high, that strategy doesn’t always work. Booher said pre-COVID she would stock up to 120 units on her lot, with another 40 in the getready queue as she prepped for tax season. “Right now, I’m sitting with 75 cars total, in the queue and on the lot,” she said. The reason Booher would buy them early is to pay lower prices. “If I’m going to have to pay a premium, which I’m happy to do, there’s no real advantage to doing it now since the prices are so high,” she said. Booher added that the end of the moratorium on repossessions may help to bring a few more cars into the BHPH space. Also, customers themselves may be holding on to cars they would normally trade because they know the cost to replace them will be too high. “So, I think in the first part of the year, when the tax money comes in, there will be a pent-up demand,” Booher said. In addition, people that normally didn’t qualify for earned income tax credits will now qualify, which will help on the BHPH side, Booher added. “They may not even realize it yet,” she said. Either way, tax season still puts refunds in the average BHPH dealer’s pocket. Even last year, when tax season was underwhelming, the average refund Tax Max processed for its dealers was $5,801. “We’re expecting it to be substantially higher this year,” Neylan said. With dealers paying huge premiums on inventory while seeing Continued on page 5

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People in the News 11/8/2021

Auction Names New GM Dealers Auto Auction of Oklahoma City announced earlier this month that Pat Stevens has been hired as general manager, filling a role that was vacated by longtime general manager Bruce Beam.

PAT STEVENS Stevens has been in the auction industry since 1993. He began his career as Fleet Manager at Manheim Dallas Auto Auction before moving to ADESA in 2000. There he was General Manager of ADESA Dal-

las, and eventually was named to an EVP position before moving to the Xlerate Group as their COO in 2017. During his tenure at KAR, Stevens managed 25 auctions during its IPO rollout and was in a leadership role in developing the growth of ADESA’s physical and online platforms. In 2006 he served as NAAA Western Zone President. In his new role at Dealers Auto Auction of Oklahoma City he will oversee the day-to-day operations, which include dealer, commercial and online sales. “I am very excited to be a part of the DAAOKC team. Along with the strong physical location, our focus will be to grow both our physical and online presence in our market,” Stevens said. “We are honored to have someone with the experience and industry knowledge that Pat has to join our team,” owner Gary Smith said. “Bruce did a great job leading the team, and we have all the confidence that Pat will continue where he left off and elevate us to the next level.”

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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.

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. 2

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

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21-014 (2021)

KAR Hires Tech Exec KAR Global announced the company has hired James Coyle as chief digital officer. Coyle will be responsible for a number of the company’s digital marketplace businesses and other digital offerings. He will focus on expanding the company’s digital footprint and delivering a differentiated suite of

Volume 27 | No.11 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

JAMES COYLE products and services to KAR’s commercial, dealer, financial institution, rental and fleet customers. Coyle will be a member of the company’s executive leadership team and will report to KAR Global CEO Peter Kelly. “KAR’s vision is to build the world’s greatest digital marketplaces for used vehicles,” Kelly said. “James’ leadership and experience will contribute to our achievement of that vision while advancing and accelerating our digital transformation. He brings a proven track-record of success rapidly scaling digital marketplace businesses across a variety of industries and international geographies. “And his deep digital knowledge, entrepreneurial spirit and customer-first mindset are a strong cultural fit for our organization,” Kelly said. Coyle brings a broad range of leadership, technology and digital experience to KAR, including previous roles at Microsoft and Amazon. He was most recently the CEO at RealSelf, a digital marketplace connecting consumers with physicians for medical and cosmetic procedures. “I am thrilled to join the KAR Global leadership team at such an exciting time in the company’s evolution,” Coyle said. “KAR has assembled a portfolio of digital platforms, capabilities and offerings that is unrivaled across the industry and mirrors many best-inclass consumer digital marketplaces.” Coyle holds a bachelor of science degree in public financial management from Indiana University.

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C R O S S WO R D PAGE 14


News 11/8/2021

Tax Season — Continued from page 3

sales soften and delinquencies rise, big refunds couldn’t come at a better time. “This is absolutely the best time for dealers to take care of tax season and get some of this $15,000 to $17,000 in refunds from (BHPH) customers,” he said. A challenge is that both some dealers and potential customers aren’t aware of these changes. TRS Tax Max uses weekly newsletters, live training and other ways to alert dealers so they can inform their customers. It’s good news for Tax Max and the BHPH industry. For the company, “2020 was a mixed bag,” he said, explaining the firm is involved in different areas, from automotive, to check-cashing, insurance and other businesses. “In the automotive vertical we were down, probably, 20%,” Neylan said. “What happened was, is that one of the stimulus checks dropped on Jan. 5.”

The company’s typical customers, after multiple stimulus checks and/ or enhanced federal unemployment benefits in 2020 and early 2021, didn’t really need the tax refund money they’d normally get and filed it later this year when they did need the money. Tax Max added new services because of the pandemic, allowing dealers to pass off the tax prep work to Tax Max, who then deals with customers directly online or even through a link on their cell phones. “Customers can take pictures of their tax documents with their cell phone, and everything is sent to us, and we do all the work in a paperless process,” Neylan said. “The money still goes to the dealer.” Tax Max allows customers to schedule irregular payments. For example, if the customer expects to come into some money on a specific month – such as a Christmas bonus – the dealer can schedule a boosted payment for that specific month.

Photos — Continued from page 1 high quality of the imaging and AI allows the system to provide clear transparency of the vehicle’s condition. By scanning the VIN or license plate, for example, the system, using AI, knows the specifications of a particular vehicle. Working with Manheim it’s taken photos of more than a half million cars, Hauk said. “It takes about 10 seconds per car,” he said. The dealer or auction doesn’t have to load anything, Hauk said. The Black Widow loads directly to your website and categorizes it. Auto Auction of Montana is using the Black Widow and dealers can also use it. It requires a minimum of 25x30 feet for the vehicle, but the cam-

era hangs from the ceiling, so it doesn’t take up a lot of real estate, Hauk said. “It’s like a ceiling fan that doesn’t move,” he said. The pandemic made Hauk look like a genius as automated systems became very appealing and websites became even more critical to selling and wholesaling. Now, Black Widow is even helping auctions get into the imaging business, allowing auctions to monetize those photos. “We’re able to enhance the background of the photos, as well,” Hauk said. The company recently hired Darren Kemper as its chief operating officer. He formerly served as director of business analytics for ADESA.


F&I Products 11/8/2021

F&I Firms Tout Service Contracts in Challenging Market By Jeffrey Bellant

F&I remains big business for the automotive industry, and it’s even more important in an era of low inventory and shrinking margins. Some of the leaders in the industry are making moves and seeing success as they continue to offer tools for independent dealers. For many years, the industry has seen some fly-by-night companies come and go, so when it comes to warranty and service contract firms especially, independents are looking for some history and stability. GWC Warranty and AUL Corp. are a couple of the giants in the dealer space with products and history that can draw confidence. Recently, GWC Warranty teamed with DealerCenter, a leading provider of dealership management systems (DMS) in the used-car industry, to offer a free 90-day trial

of DealerCenter’s all-in-one, cloudbased DMS to independent dealerships. “Many independent dealerships are clamoring for more technology resources to help them do business more efficiently,” said Jeremy Beck, vice president of sales operations at GWC Warranty. When F&I and DMS platforms are fully integrated, dealership employees no longer have to leave the DMS platform and log into a separate F&I system to get rates and terms during the F&I process. AUL had its own announcement, as it recently issued its 3 millionth contract, said Jimmy Atkinson, AUL Corp. president and CEO. AUL, founded in 1990 offering just a single product, the Any Year Any Mileage vehicle service contract (VSC), expanded its finance and insurance offerings to include GAP insurance and a full suite of ancil-

Courtesy of Manheim Wisconsin

lary F&I products in 2019 and added EV and Auto Technology policies in 2020. “As boring as a service contract product can be, we try to be innovative with ideas for dealers and

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agents,” he said. Responding to the market, AUL has begun to focus more on the franchise side of the business, Atkinson said. Continued on page 8

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F&I Products 11/8/2021

Service Contracts — Continued from page 6 “We realized coming out of the recession in 2009-2010 that the market was shifting for the franchise space,” he said. The recession caused a contraction in the new-car market as manufacturers filed bankruptcy and many franchises closed, Atkinson said. “Franchises became much more serious about their used-car operations,” he said. “So, we dove in and rode that wave and began offering ancillary offerings like GAP and began offering some unlimited time programs.” Atkinson also doesn’t dismiss the independent dealers’ efforts in their battle for the market over the past decade. “I think it’s a tribute to the independent side that they kind of fought back and found their way again,” Atkinson said. “The market has shifted, as well as the entry mileage car for them, but it’s still a strong market.”

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Speaking of independents, GWC Warranty and NIADA announced a strategic partnership earlier this year to provide the NIADA Certified Pre-Owned (CPO) Vehicle program. Independent dealers will benefit from a nationally recognized endorsement of their CPO program and dedicated support and training from GWC, giving their dealership a competitive advantage. As more consumers enter the used vehicle market, dealers are looking for ways to build a competitive advantage and give buyers more confidence in vehicle ownership, NIADA reported. This comprehensive CPO program, including a multi-point inspection process and limited warranty protection, is a huge differentiator for dealerships while also providing customers with peace of mind. “CPO programs are not new to the industry, but we are seeing independent dealers find a great deal of

success this year in particular,” says James Virgoe, senior vice president, GWC sales. “Vehicles are more expensive to purchase and maintain, so the risk associated with ownership is higher. Dealers offering this elite program backed by NIADA make a strong statement about the quality of their inventory, giving customers the reassurance they need while also increasing dealership margins and profitability.” James Gibson, NIADA vice president of member services, said NIADA is “excited to partner” with the firm. “GWC has a great reputation and a proven track record of providing excellent service and training to dealers nationwide,” he said. AUL, meanwhile, has gotten creative in the types of service contracts it offers now, as cars are staying on the road longer. “We’ll have a mileage term, but no time,” Atkinson said.

For example, a customer can get a policy for 150,000 miles, no matter how long they own the car. “It’s easier for them to understand,” he said. It also fits in a time where inventory is short and cars are carrying more mileage, plus it’s something the F&I managers like and find easier to sell, Atkinson said. Today, AUL Corp. sells a full suite of automotive protection policies through a national network of dealers, agents, and financial institutions. AUL’s products include vehicle service contracts, extended warranties, technology systems coverage, electric vehicle coverage, GAP insurance, theft protection, tire and wheel protection, key replacement, roadside assistance, and other products.


WE ARE OPEN! WELCOMING DEALERS & DRIVING VEHICLES THROUGH THE LANES!


Retail Markets 11/8/2021 Compiled by Ed Fitzgerald

TENNESSEE Newton Welch III, owner, Newton Motor Co., Hendersonville, Tenn.: “I’ve been in business since 2001. In 2003, I moved from my original location. “We didn’t have to shut down ‘entirely’ for COVID. I haven’t gone to the auction because of restrictions. I used to go three days a week. “I’m a small dealer. The average size of my inventory is probably somewhere around 25 vehicles. I sell in the range of 15-20 a month. “In trying to find inventory I’ve tried to specialize in classic cars and specialty cars. It’s tough competing with CarMax and DriveTime. “I sell 100 percent SUVs and late-model stuff. The cars are about dried up as far as what demand is. I’ve probably got 30 people wanting vehicles and two of them want cars and 28 want SUVs. I work kind of as a broker where people tell me what

they want. It’s hard to buy an Altima and a Chevy Suburban and compete with everyone else. It’s pretty absurd. I’ve found more cars on CarGurus. I saw a car on OVE for $44,000 and then I saw it on this retail lot for $42,000. I called and said, ‘I want to buy it.’ And he said, ‘are you a dealer,’ and I said, ‘yes’ and he said, ‘your price is $44,000, don’t you understand wholesale is higher than retail?’ “I do not do any buy-here, pay-here. “I don’t look for a particular model year. I’ve got a 1930 model in stock and I’ve got a 2021. I’ve got a ’27 model Bugatti coming in. It’s been converted, it has a Volkswagen engine in it now. “My re-conditioning costs are in the range of $500-600. “For advertising, CarGurus is my main one. But I do Dealer Web Sites and they boost it up to about 30 different places. “My advice for a new deal-

er is: Don’t give up and, yes, keep your overhead low. If I had to pay rent, I would not be in business doing this. “The last car I sold was a 1985 Jeep CJ7 Renegade with 130,000 miles, for $37,000.”

LOUISIANA Lance Leblanc, general manager, Don’s Automotive Group, Lafayette, La.: “We opened around 2009. We had a different location but Don’s Wholesale turned into Don’s Automotive Group in ’09. “We have three lots with another one about to open in North Lafayette. We had one in Lake Charles that had to be torn down because of the hurricane in September. We plan on opening it back up when we have time. “We didn’t have to shut down for COVID. We dropped down to minimal employees. The shop closed, the office closed, but even with COVID and people on unemployment, we stayed

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busy. “We’ve been finding over the last few years that the business is moving online. The days of waiting in the lot for a customer are over. “The average inventory at our smaller lot is probably 30-40 cars. The larger two lots are over 100. We sell close to 200 a month. “We sell more trucks than cars. We’re known for our trucks, we lift (the suspension) and put tires and rims on almost every truck that comes through the shop. We have a bunch of wholesalers who work for us. “We sell at the auctions, but we don’t buy there. We have DonBuys.com and after five years that’s starting to crank up. We buy an average of 100 a month there. “We don’t do buy-here, pay-here through Don’s. We own a separate company that does that. “We have a shop and an accessory department and every vehicle goes through.

You can have a $5,000 ticket on a 90,000-mile diesel. We spend a lot on accessories. “We’re probably the only place around that has the money to fix 90,000- and 100,000-mile trucks. There’s a market for people who don’t want to pay $70,000 for a truck. “We do a little advertising. We’re established online. A lot of people will come to us because we carry specialty cars like a Roush Mustang, or just hot items. We’ve got something for everyone. “We do good with both imports and domestics. It’s just a matter if we can buy it right.” “I recommend to new dealers that they do the right thing, every time, no matter how much it costs. It’s going to pay off in the end. A lot of people start out thinking they can’t afford to fix everything. Even if we’re not responsible for something after the sale we still take care of them. It goes a long way for repeat business.”



Wholesale Markets 11/8/2021 Compiled by Jeffrey Bellant

NEBRASKA Ryan Durst, vice president, Lincoln Auto Auction, Waverly, Neb. “Next year will be our 30th year in business. “We have four lanes and we’re running all four. “With all that’s going on and this time of the year, our volumes are down the last four or five weeks. “Prior to that, we were up – year-to-date – about 800 units sold, with about 900 to 1,000 more consigned (yearover-year). After the last five weeks, that number is about 500 or 600. “We’re running 250 to 300 with everything normal, but lately it’s been 200 to 225. Year-to-date, our conversion rates are 82.9%. We had an 88% sale on Oct. 27. We’re pretty proud about our conversion rates. Every year, it seems we get a little better. All we tell everybody, ‘Just

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give us the opportunity, give us the chance to sell the car.’ That’s what we do. “Live dealers in the lanes are in the 180-220 range, depending on the weather, but our online bidders have increased exponentially. PreCOVID, we’d have – at any given sale – 20 to 40 guys. Now we’re getting 60 to 80 online weekly. We sell to somebody new every week. “We run 90/10 dealer-tocommercial consignment. “Our average price across the block is the highest it’s ever been. It’s $6,150, which is almost $1,700 more than (pre-COVID). We’re selling more online and getting better cars. “I hope what’s going on doesn’t wipe out some of these smaller independent guys, with the shortage of inventory and the demand. “You can’t predict anything anymore. You used to be able

to plan out the month and year by the trends. But now I don’t know what’s going to happen next week.”

OHIO Joel Maltese, general manager, America’s Auto Auction – Toledo, Perrysburg, Ohio “There is the old line that you had to talk to 10 people to get three leads, which led to one sale. Now you’re almost doing double – 20 visits for six good leads to get one (customer). It’s been a challenge, but you have to change with the times or they’ll run right over you. “I’ve got a great leadership team. It’s a good mixture of the new and the experienced. That’s what you need now, the stability of the past with the outside-the-box thinking of the future. “We have six lanes and we’re running four. On aver-

age, we’re running 400 units. Pre-COVID, we’d run double that. We lost our Chrysler Capital account in late 2019 going into COVID-19, so that was a double whammy. “(On conversion rates) we’ve always been historically strong. We would usually have 60% to 65% preCOVID. We’re really heavy into new-car stores and commercial business. We’d have 40% commercial, selling at 80-90%. The rest was heavily into new-car stores. “We’re 75/25 split between dealer cars and commercial. “Recently, we’ve been eclipsing 70-75% now. “We get great attendance. We’ve got 400 bidders, but it’s not 400 bodies in the lanes. Pre-COVID, we’d sell about 15% online. Now we’re 40% and that’s consistent. I’ve got just as many eyeballs on the Internet as I do in the lanes.

“We have an in-op sale. That has been pretty steady. We’ve had a huge influx of in-ops hit the auction and that’s continued. “Pre-COVID we were running 50 units and now we’re running 40 (per sale). That stuff brings some good money because used-car prices are so high. Anything to get a deal now. “Our average price across the block is anywhere between $5,000 to $6,000. I would imagine we’re up about 20% before COVID. “We don’t anticipate any drastic change going into the end of the year. We’re just putting our heads down and we’re going forward, knowing this is the new world we’re in now. We’re going to take our share of the pie that’s out there.”


Wholesale Numbers 11/8/2021

seg/type

make/model/name

2020-11-01

2021-05-01

2021-11-01

2022-11-01

2023-11-01

--------

---------------

----------

----------

----------

----------

----------

2017

Car

Toyota Corolla

10800

11400

13450

10650

8850

2017

Car

Nissan Altima

10900

12000

12800

9525

7475

2017

Car

Ford Fusion

11500

11950

14850

11200

8850

2017

Car

Chevrolet Impala

13600

13700

15125

11750

9375

2017

Car

Kia Soul

10150

10400

12525

9425

7575

2017

Car

Chevrolet Camaro

19000

19500

21025

16875

14225

2017

Car

Kia Rio

6850

7625

9000

6600

5100

2017

Car

Acura TLX

16100

16100

17700

13225

10500

2017

Truck

Ford F150

29300

30300

28800

23150

19750 21925

2017

Truck

Chevrolet Silverado 1500

29900

31000

31300

25450

2017

Truck

Ram 1500

26700

28000

28000

23050

19850

2017

Truck

Jeep Grand Cherokee

21125

20900

22150

16200

12675

2017

Truck

Ford Explorer

21850

21200

23125

16550

12950

2017

Truck

GMC Sierra 1500

34500

35400

34600

28425

24525

2017

Truck

Nissan Rogue

12950

14375

16325

12550

10225

2017

Truck

Ford F250SD

31900

34200

36800

30475

26050

2017

Truck

Chevrolet Tahoe

34975

35275

38300

28725

22875

2017

Truck

Chevrolet Silverado 2500

30500

32000

35100

29100

25475

2018

Car

Toyota Corolla

12250

13500

16150

12625

10375

2018

Car

Nissan Altima

12425

13650

15350

11350

8875

2018

Car

Ford Fusion

12575

13850

17300

12975

10250

2018

Car

Chevrolet Impala

15150

15725

17950

13925

11075

2018

Car

Kia Soul

11425

11850

14425

11125

8925

2018

Car

Chevrolet Camaro

20700

20925

23325

18700

15650

2018

Car

Kia Rio

8700

9450

11600

8500

6525

2018

Car

Acura TLX

20250

19750

21625

16025

12600

2018

Truck

Ford F150

31600

34300

32000

26375

22975

2018

Truck

Chevrolet Silverado 1500

31700

34000

34500

28250

24425

2018

Truck

Ram 1500

28000

30000

31000

25500

22100

2018

Truck

Jeep Grand Cherokee

23075

23200

24600

18150

14325

2018

Truck

Ford Explorer

23725

23900

26175

19050

15200

2018

Truck

GMC Sierra 1500

38000

39400

39000

32250

27875

2018

Truck

Nissan Rogue

14475

17000

19625

15100

12225

2018

Truck

Ford F250SD

33400

37200

40100

33700

29100

2018

Truck

Chevrolet Tahoe

37175

40000

43175

32925

26675

2018

Truck

Chevrolet Silverado 2500

32600

35000

38100

31825

28075

2019

Car

Toyota Corolla

13700

15600

18200

14200

11700

2019

Car

Nissan Altima

15350

17050

19550

14325

11025

2019

Car

Ford Fusion

13875

15250

18650

14325

11500

2019

Car

Chevrolet Impala

17425

18975

21300

16525

13125

2019

Car

Kia Soul

12575

13000

17000

12950

10350

2019

Car

Chevrolet Camaro

22550

22900

25200

20475

17325

2019

Car

Kia Rio

10400

10875

13300

9900

7700

2019

Car

Acura TLX

23550

22575

24425

18100

14225

2019

Truck

Ford F150

33300

36300

36000

29875

26200

2019

Truck

Chevrolet Silverado 1500

36800

38500

38000

31375

27400

2019

Truck

Jeep Grand Cherokee

25400

25050

27225

20525

16550

2019

Truck

Ford Explorer

25075

25700

28750

21550

17700

2019

Truck

GMC Sierra 1500

42600

44900

44900

37725

33050

2019

Truck

Nissan Rogue

15975

18500

21525

16675

13600

2019

Truck

Ford F250SD

36900

39700

43100

36825

32325

2019

Truck

Chevrolet Tahoe

41500

44000

48500

37775

31200

2019

Truck

Chevrolet Silverado 2500

37600

38500

40600

34225

30450

2020

Car

Toyota Corolla

15350

17700

19550

15725

13300

2020

Car

Nissan Altima

17250

18825

20875

15500

12100

2020

Car

Ford Fusion

14725

17200

20750

16050

13075

2020

Car

Chevrolet Impala

20250

21975

24275

19100

15325

2020

Car

Kia Soul

15075

15450

18725

14725

12025

2020

Car

Chevrolet Camaro

25750

26175

27000

22250

19250

2020

Car

Kia Rio

12200

12650

15250

11575

9150

2020

Car

Acura TLX

27050

25975

27450

20400

16050

2020

Truck

Ford F150

37700

41000

39200

33200

29700

2020

Truck

Chevrolet Silverado 1500

38800

42000

39900

33525

29750

2020

Truck

Jeep Grand Cherokee

28325

29225

31275

24150

19900

2020

Truck

Ford Explorer

32025

31925

33750

26075

21925

2020

Truck

GMC Sierra 1500

47600

47400

47500

40450

35950

2020

Truck

Nissan Rogue

17800

20000

23975

18875

15525

2020

Truck

Ford F250SD

41900

43200

45800

40150

36150

2020

Truck

Chevrolet Tahoe

46100

49550

53400

42675

36150

2020

Truck

Chevrolet Silverado 2500

42100

44500

46500

39900

36000

Actual Wholesale and Projected Residual Values

MY ---------

Source: Black Book


Disconnected Jottings From

Tony Moorby 11/8/2021 Tony Moorby It probably comes as no surprise whatsoever to regular readers that I’m feeling a little cynical these days. News this morning brought us a super new way to negotiate our way around airport check-ins, luggage handling and security using face recognition technology. Since when was the FAA interested in making travellers’ experiences better, speedier or more comfortable? Remember when you last renewed your driver’s license and wanted to use it in the future for travel I.D. purposes – the authorities named it a “Real ID” – you had to do back flips, cartwheels and herkies in the lobby of the DMV. Then you had to produce so many documents proving that your great-grandmother’s maiden aunt’s sister-in-law was a U.S. citizen and really

did live on Magnolia Avenue for the last 80 years. Getting a colonoscopy, including the prep, was easier. Presenting the voluminous file of documents to support your application was like walking a tightrope in the excruciating hope that all was present and correct. It’s hard to tell the clerk’s reaction as she (don’t give me a hard time – they are usually ladies, at least here in Tennessee) sifts and sorts through your curriculum vitae and all you can see is the top of her head. A simpering, wimpish smile is all one can muster as you’re directed to the photo section. “You can smile – not a lot – just a little,” you’re told. I suppose the government bodies wanted their population to look happy at getting a national database of facial recognition technology. It wouldn’t be so bad but

in times of COVID awareness and distancing, the lines seem like they’re six times longer and the air in the offices becomes more fetid. I was advised not to use their parking lot – once in you can’t get out as the line to find a little oasis is endless. Manners go out the window – but then that’s another new phenomenon that seems to prevail these days as folks find any reason to pick a fight. We’re worried about leaving digital footprints, where and when our kids and grandkids leave their trails on ‘games’ or Facebook, Instagram and the like. But this is getting like China. We’ll have even more cameras in the streets and other places so the Feds can see where we went, when we went there, how long we stayed, whom we were with. The list gets horrifying.

By Myles Mellor

37. Malibu maker

7. Famous Ford

1. Dodge SUV

40. Spin, in slang

8. Loft fodder

5. Old Spitfire

42. Day before a holiday

13. ___ and don’ts

15. Consume

19. Blue car color

50. Salt Lake City’s state, 22. Mitsubishi SUV abbr

23. Gull-____ doors

18. It’s in the ___!

52. Mercedes vans

25. Subaru SUV

20. Top grades 21. Hyundai sedan 24. Horse power, abbr. 26. Trooper, for one

24. GMC have rereleased it as an EV

Down

27. Lawn piece

1. Compact SUV from Nissan

28. Musical ability 30. Model

41. Check for accuracy

31. Shone

4. Toyota compact

35. Mazda SUV

47. Away from home

37. AC Shelby ____

48. Naval rank: abbr.

39. Security features

34. Neither’s partner

1

2

3

M A

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4

M A

6

7

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38. He bugs Bugs

11

12

C

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M A

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15

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14

S

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27

M A

19

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29

D

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G I

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40

L

A

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T

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46

E

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M

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V

I

N

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43

E

44

F

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A

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N

R

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R

A

B

E 51

H

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47

W 50

C

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38

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53

R

S

42

49

R

T

30

35

A

37

41

48

U

A 34

E

36 39

S

32

V H

S

22

24

28

E

33

S

I

Y 21

31

C

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B

23

N 25

K

16

P

18

D

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A

54

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56

A M B

Solution to this puzzle in the 11/29/2021 issue. Call 1.800.794.0760 for a FREE subscription.

14

9

A

I

13

45

49. Twofold

8

P

L

10

17

45. Very long period of time

5

C

I

55

6. Creeping plant

3. Hyundai SUV

36. Mister, in Mexico

29. Morning show time

5. VW SUV

27. Kia SUV

32. Hyundai compact

2. George Washington’s dream

33. Chrysler __Baron

12. Honda minivan

51. Former rubber capital of the world

14. ___ Antonio, Texas

20. Wire service

46. GPS suggestion

17. One thing ___ time, 2 words

and even costing the lives of some participants. I fear the thin end of this long social media wedge has been driven in too far to extricate without a lot of pain. I know this sense of cynicism will lift, as I have much to rejoice about, regardless of life’s passing parade.

11. Jaguar model 16. In that case, 2 words

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

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

Across

9. Auto insurer with road- 43. Exist side service 44. Kiddie fun vehicle at a fair, 2 words 10. Carnival maker

• 50-year veteran of the industry • President from 1997– 2000 of ADT Automotive • Served as ADESA’s executive vice president of sales and marketing • Moorby & Associates 2006–present • NAAA Hall of Famer • IARA Circle of Excellence

Saying ‘I’ve got nothing to hide,’ is not the point. This is un-American. We will no longer go about OUR business. What we do will be everyone’s business. Today’s newscasters positioned the new travel check-in arrangements as purely for efficiency and convenience – Poppycock! Perhaps this administration will find a way to monetize the data and resell it to whoever buys the stuff from Facebook etc. That way they might pay down the $2.5 trillion debt burden that we’ll be saddled with – or our kids will – or their kids will. Perhaps that money would go some way to appease the thousands of lobbyists for the social media companies. They’re haunting the corridors of power, bending Senators’ minds as to how their companies are not socially debilitating

A

D

O

R

T

Solution to the 10/18/2021 puzzle



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