Used Car News 11/20/2023

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USED CAR NEWS

Used Car News 11/20/2023

BHPH Dealer Sells Business After 33 Years

IN THIS ISSUE: • Tax Season • Fighting Fraud • Black Book Numbers By Jeffrey Bellant

Rush - Dated Material

Texas buy-here, pay-here dealer Keith Hagler has spent a lifetime closing deals through his dealership Taylor Auto Credit. A year ago, he closed one of the biggest deals of his career – selling his business to national buy-here, pay-here chain America’s Car-Mart. For Hagler, it was the right time and right partner for Taylor Auto Credit, the business he started in 1990 in Taylor, Texas. Hagler said he’d been contemplating an exit from the car business when he met Jeff Williams, who was then CEO of America’s CarMart. He has since stepped into the role of CEO emeritus. In 2022, Hagler was attending the National Independent Automobile Dealers Association’s annual convention in Las Vegas. Hagler served for years in NIADA, including a stint as president of the association in 2013-2014.

At the 2022 event, Hagler met with Illinois dealer Steve Taylor and Williams. “I knew Steve from my 20 group and when I met with them, I saw Steve was wearing a Car-Mart shirt and asked him, ‘what’s that?’ “He said, ‘That’s who acquired my business.’” Hagler, 67, had been contemplating selling his dealership but was looking for the right company. He and his wife, Marcia, have two daughters, but neither was interested in taking over the family business. Hagler joked that his daughters spent years in the back seat of his car listening as he and Marcia fretted over the latest challenge in their business. Exit plans always seem to be a blind spot for dealers. Hagler told the story of a conference years ago put on by the Texas IADA. “We met to have a session about exit strategies and it lasted about

five minutes because nobody had one,” Hagler said. So, a year ago, Hagler and his wife had been looking at where they were in life and the state of the BHPH market and its challenges. “The cost of money was increasing and the cost of inventory was increasing and there’s a lack of availability of parts – everything was changing so drastically,” he said. “We were both deciding that it was time to move on and do something different besides the car business that we’ve loved so well and that we’ve been in forever.” After running into Williams at NIADA, the Car-Mart exec offered to come down and visit Hagler at his Texas store. “He came out, sat down with us and saw our operation, met Marcia and the family,” Hagler said, “I guess he liked what he saw with the business. We started having conversations from there.” Prior to America’s Car-Mart, Ha-

gler met with another buyer, but he didn’t feel good about it. He had a better feeling when meeting with Williams, the way he talked about the business and his vision. “I’ve learned since the acquisition that the ‘Car-Mart Way’ is so much like the way we operated our business,” Hagler said. “From the way the acquisition went, the way they’ve treated my employees – everything they’ve done, I couldn’t have asked for anything better.” Hagler said he wanted to feel good about this life-changing decision. “I’m being honest when I say I can’t think of a negative thing,” he said. “They’ve done everything they said they were going to do.” It was important for him that his employees – several of them had been with Hagler for 25 years – were treated right. His employees “felt like the sky was falling” when they heard Hagler’s plans. But no Continued on page 6

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BHPH News 11/20/2023

Tax Season Can Still Help Auto Dealers Boost Sales By Jeffrey Bellant

While some folks get an early start on Christmas shopping, buy-here, pay-here dealers are already planning for tax season. The annual effort to turn tax refunds into auto sales now starts before tax returns are even filed. This is where a firm like Tax Max – which has spent nearly three decades helping retail and BHPH dealers market tax returns as down payments for automobiles – comes in. Each year, Tax Max looks for new ways to make that pitch easier, and 2024 is no different. CEO Bill Neylan III said its new “File and Drive” campaign offers a quicker path from tax return to car sale. “While customers are on a dealer’s website looking at the inventory, the customer can now click on a ‘File and Drive’ button and file their taxes directly with Tax Max,” said Neylan. “The dealer no longer has to do any of the work. We do all the work.” This program is brand new this fall, but Tax Max took it for a spin last year. “We did a beta test last year on a dealer group and they moved an extra 15-20 cars per location,” he said. The Tax Max crew works with the customer directly so the program isn’t automated. It begins in January after the customer receives their W-2. “It’s a digital process,” Neylan said. “So, while the customer is using their cell phone, they can click on a button marked ‘File and Drive.’” The next screen shot brings up “Step 1, Step 2, Step 3,” describing the process. The customer then clicks on “Get Started,” which brings them to the Tax Max website. “Our system will prompt them to take photo copies of their tax documents using their phone, hit ‘Submit’ and those documents go to us,” Neylan said. “We then prepare the tax return and usually within 20 to 30 minutes we send the customer a text message saying that their tax return is ready for them to review. “They review their tax return and then sign it using their finger on their phone and then hit ‘Submit.’” Neylan said Tax Max then files the return with the IRS. “If the customer is approved, they can get a same day refund advance of up to $6,000 and that refund goes to the dealership,” Neylan said.

Photo by Jeffrey Bellant TAXMAN: Bill Neylan III, right, CEO of Tax Max, meets with dealers during a past convention. Tax Max is entering its 29th year of helping dealers use tax returns to build sales and long-term customer relationships. Tax Max’s newest program offers dealers an online tool that allows customers to file returns directly to Tax Max online, with refunds used for down payments.

Tax Max has always offered the tax return option for dealers, but this is the first completely online option. Like a lot of new online programs, the catalyst was the pandemic. “I guess it all started with COVID,” Neylan said. “We wanted a touchless, paperless product (in case) COVID raises its head again and they had to shut dealerships down.” As dealers shifted to selling cars remotely, Neylan wanted to give them the ability to use Tax Max remotely, too. “The other part is with cars being more expensive and inflation rising, a lot of dealerships are running lean and have had to lay off some staff members. So, they don’t have as much staff to do the Tax Max program the old way.” Neylan responded to dealers’ struggles with training staff with more turnover, or maybe the staff doesn’t buy into the program. “We remove all of (those objections) by just sending checks to the dealerships,” he said. “Now there’s no training needed, no buy-in from the staff needed because the website does all the work.” Neylan added that in today’s digital world, third party marketing sites are driving traffic to a dealer’s website. Customers get to the website and the “File and Drive” button is waiting for them. His team discovered another interesting trend in today’s market. “We’ve been doing business for 29 years and we’ve always been open from 8 a.m. to 10 p.m.,” Neylan said. “With the test pilot we did last year, we’ve come into the office and there

were hundreds of tax returns submitted between midnight and 5 a.m. “There is a lot of traffic on a dealer’s website between 10 p.m. and 5 a.m.” His team began developing this program during the pandemic and has been fine-tuning it for three years. “We’re very slow to market,” Neylan said. “We don’t want to put a product out there that’s not perfected.” The program will be available in all 50 states. He points to Tax Max’s A+ rating with the Better Business Bureau to make his point. “We take the customer’s experience very seriously,” he said. “We provide them with all of the digital assets and they put it on their website Jan. 2,” Neylan said. “We recommend they get these assets to their programmers in November. That way, when their website is updated, they can leave it in a staging mode offline. That way, when January comes, they can push it live.” The program will be valid from Jan. 2 to April 15. Neylan also recommends starting to market the program now so customers will know it’s coming. “They can lean on us for any help,” Neylan said. One additional benefit for dealers came out of the beta testing Tax Max did. All the overnight traffic the pilot dealers experienced allowed Tax Max to capture customers’ information, such as their name, email address and cell phone number. “So, any dealer using our campaign can run a report to see who’s on their website and we provide them in a re-

port the customer’s name, email and cell phone number that they can use for lead generation,” Neylan said. Unlike third-party leads a dealer pays for without knowing where they come from, these leads are generated straight from the dealer’s website. Neylan said this year tax season can be a huge opportunity because consumers are struggling with inflation and higher interest rates, which has led to a lot of voluntary repos. But for BHPH customers struggling in the middle of an installment contract, dealers can use the tax refund to rewrite the loan. “What we’re recommending buyhere, pay-here dealers do is tell customers that if they use the Tax Max program and pay $1,000 down, we will re-underwrite you to lower your payment,” Neylan said. “That will make the car more affordable for the customer.” Tax Max also has an ‘irregular payment’ program that can help the customers and the dealer. At the time of the purchase, a customer may put $800 down as they are buying their car. In order to trim the number of payments off the back end of the contract, a dealer asks the customer if they’d like to take an extra $1,000 out of a future tax return and schedule that one-time payment in March. So, the payment plan may show the customer paying 1-12 as $100, then payment 13 is $1,000, then payments 14 through 100 go back to $100. “But doing that, they can shrink the term by 15%, lowering a 50-month term to 42 months, for example,” Neylan said.

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News Briefs

USED CAR NEWS

11/20/2023

NextGear Announces 2023-2025 Portal mobile app that allows in- will, Indiana dependent dealers to make faster, • Carlos Capitillo, CarsCatch Dealer Advisory Board Building on the success of its inaugural DRIVE Dealer Advisory Board launched in 2021, NextGear Capital has tapped a new board for 2023-25 to gain even greater understanding of what independent dealers require to be successful in an evolving marketplace. The new board held its first meeting with NextGear Capital President Scott Maybee and members of his leadership team in October and will continue meeting bimonthly in a virtual setting. DRIVE provides a platform for open and direct dialogue between NextGear Capital and a representative group of independent dealers. “The first-hand perspectives we’ve gained from our Advisory Board have been incredibly valuable to helping us focus on solutions that deliver the highest value to our 20,000-plus dealer clients every single day,” Maybee said. Among the solutions that DRIVE has contributed to are the development and launch of the Account

more informed buying and selling decisions, and suggested improvements to client communications. To ensure varied viewpoints and feedback, DRIVE is composed of a diverse group of dealer clients based on the following criteria: varying lines of credit; minority and femaleowned dealership representation; those who use technology in different ways; buyers from different wholesale vehicle auctions; and both long-term and new NextGear Capital clients. The new 10-person Advisory Board also represents a cross-section of NextGear Capital’s national footprint from Florida to Oregon.

Feedback from past and present advisory board members articulates the value of DRIVE. “It shows that NextGear Capital is a real partner that listens to the needs of its clients and creates real world solutions,” The new Advisory Board members Maybee said. “I think this board are: is an invaluable tool for NextGear • Maurice Rached, AutoBay Capital to get firsthand input from in Burlington, New Jersey dealers to help shape and develop • Mark Becker, Forthright products that are relevant to current Auto in Albuquerque, New Mexico market conditions.” • Tripp Blandford, Pure 1 Auto in New Bern, North Carolina BHPH Group Adds Partner • Rob Boley, 24/7 Cars in Lar-

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.

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1

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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. 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

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in Woodstock, Georgia • Mike Hall, Premier Trucks and Imports in King, North Carolina • Daniel Johnson, LiteHouse Auto Inc. in Lakewood, New York • Ray Lashgari, Crown Motors PDX in Gladstone, Oregon • Gary Pretzfeld, Auto Trust USA in Miramar, Florida • Tawanda Roberts, B & J Auto Sales LLC in Olive Branch, Mississippi

21-014 (2021)

BHPH United, a national organization dedicated to providing education and training of buy-here payhere automobile dealers, has added a new, key partner — Auto Master Systems (AMS). The addition of AMS comes as a replacement to Berkshire Risk Services, which was recently acquired by Buckeye Dealership Consulting. The annual BHPH United Summit was created to provide BHPH dealers with the best-in-class education to improve their operations, and ultimately, their net profits. The Summit’s sole focus on education allows attendees to get operational training, industry trends, expert insights and advice, without other distractions. Six key industry service providers originally founded BHPH United in 2021. With the addition of AMS, the partners of BHPH United are now: Auto Master Systems; Big Time Advertising & Marketing; Buckeye Dealership Consulting; Ignite Consulting Partners; Ituran USA; PrimaLend Capital and Tax Max. “Auto Master is a well-known, well-respected service provider within the buy-here, pay-here sector possessing significant experience and expertise in our unique market segment,” said Paxton Wright, President of BHPH United. “Under Mike Downey’s leadership, AMS continuously demonstrates the values and vision that all our partners share, striving to improve our industry.”

Volume 29 | No.10 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


Compliance News 11/20/2023

Hunter Automotive Fraud Alliance Roots Out Deception By Jeffrey Bellant

Fraud remains a giant threat to the auto industry with both dealers and lenders feeling the brunt of it. In some cases, they often don’t have a handle on the scope of this threat. Experian Automotive announced a new effort in 2024 to help lenders combat fraud with its Hunter Automotive Fraud Alliance, a collaborative data network designed to help automotive lenders in the United States share real-time fraud intelligence to minimize fraud risk, while maintaining a positive customer experience. The Hunter Automotive Fraud Alliance builds on the company’s recent announcement of a fintech focused version of Experian’s Hunter in the U.S., as well as the data network’s 30-year track record of success across the globe. Jim Maguire, Experian Automotive’s senior director of product marketing, said the program will be launched in the United States in early 2024. “Just came back from talking to a whole bunch of lenders and they reiterated the fact that fraud is a giant issue in the industry today, both for lenders and for dealers. “Fraud takes many different forms, whether it’s first-party fraud, thirdparty fraud or synthetic identity fraud,” he said. First-person fraud can involve something as simple as fudging a payroll stub to someone lying about their intention to pay. “First-payment defaults are a real thing,” Maguire said. Synthetic fraud is a growing type of fraud in the e-commerce space as well as in the auto industry. “In fact, it’s the fastest type of fraud, according to the FTC (Federal Trade Commission).” The auto industry feels a disproportionate impact from synthetic identity fraud and it poses a unique challenge. “If I purchase a house with fraudulent information, you know where to find the house,” Maguire said. “But when you purchase an automobile – which, in these days can be a sixfigure purchase – it’s a giant amount of risk.” Maguire said when you look at synthetic identity fraud, people are creating identities from individual pieces of information that by themselves may be accurate -- a type of Frankenstein identity. “This may be someone’s real name,

Jim Maguire this is someone’s address, this is someone’s Social Security number,” Maguire said. “Each one of those data points may check out and traditional fraud solutions show that those are correct. “But when you have a solution that’s focused on synthetic identity fraud, you can see that these pieces when all put together don’t check out.” The real-time component checking the data in the Alliance can reveal an identity is being used to accomplish fraudulent activities all at once. Maguire heard an anecdote recently that illustrated this. “We had a fraudster who created multiple synthetic identities and purchased five cars in one day,” Maguire said. “This person actually got caught – while trying to buy their sixth car.” Both lenders and dealers will feel the pain of fraud, but Maguire’s recent talk with lenders underscored the heavy burden risk poses for lenders. “In general, 70% of businesses have seen an uptick in fraud,” Maguire said. “The challenge of quantifying it is real, as only 45% of businesses say they understand the impact of fraud in their business.” Prior to its planned launch in the U.S. next year, Hunter has already been used by more than 360 organizations in 17 countries across a variety of vertical markets. In the auto-

motive industry, Hunter is used by organizations in five countries, saving $684 million in potential fraud losses annually. “We are pulling together industryspecific fraud networks, because each industry has their own unique challenges – mortgage, auto, fintech,” Maguire said. “In the auto space, we know there is an opportunity to bring real-time fraud risk data to improve outcomes at the point of origination for auto lender clients, as well as portfolio management over time.” Maguire said new fraud risks pop up every day and “if you’re not looking at how they apply to all the people already on your books then you’re not really understanding the scope of the fraud.” The Alliance will include several lenders who will contribute historical data and real-time data, Maguire said. “The data is not just the fraudulent activity, it’s all activity,” he said. “Because the challenge has been that fraudsters are moving very quickly and innovating. While e-commerce makes it more convenient and efficient for business and consumers, it also makes it easier to initiate their fraud. “That dynamic is what is drawing the need for a new approach. The innovation that is being used on the fraud side has to be matched with innovation on the security and verification side. That’s why Experian is

working with lenders today.” The speed of fraud just adds to the work lenders and dealers are already doing. All the things auto lenders have done in the past are still very important, such as validating identity and making sure financial information is correct. The old school methods of checking the data and verifying information the customers provide remain a given. However, sometimes the fraud only comes out after the fact, so you want to get ahead of it. With Hunter networks, Experian has seen a 35% increase in fraud detected, but what analysts also see is a decrease in fraudulent activity. The reason is fraudsters see that this particular business has their shields and alarms up, so fraudsters avoid them. Hunter networks have also seen a 40% decrease in fraudulent activity being directed at them once the word gets out. “When you look at fraud across the spectrum, you start to see trends – brand new trends that you’ve never seen before – and if you wait until it’s already in your portfolio, you’re essentially evaluating the problem after it’s already occurred.” The Hunter Automotive Fraud Alliance allows partners in real-time to utilize machine learning to look at the trends in the transactions and identify new trends that indicate that there’s fraud and find new strategies that have never been there before. “In real time when the lender is submitting a transaction for review,” Maguire said, “they’re getting back a fraud score, an indicator of what the challenges are. “At the same time, we’re using all that new transaction data to analyze what’s on their books already.” To use the example of synthetic fraud, it’s a sophisticated effort where people will create the identity, invest in the identity by even making payments and then they will do what Maguire calls “the bust out.” This means that all at once, they will use that good credit they built to conduct a bunch of transactions, with no intention to pay. “This Alliance will allow the industry to see such activity across a range of different circumstances, whereas before, everyone would just see the one transaction that looked good to them at that moment in time,” Maguire said.

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Used Car News 11/20/2023

Car-Mart – Continued from page 1 one left and it seems to have worked out. “The transition was so smooth that they really don’t know any difference -- we just all work for Car-Mart now,” Hagler said. The process went quickly from meeting for the first time in June to closing the deal on Dec. 31 the same year. “They bought all my inventory and leased out my facilities (including his service shop),” Hagler said. “But I’m collecting all my receivables.” At the time of the deal, Hagler had 1,000 accounts on the books, so that will provide continued cash flow. Even before the acquisition, Hagler had spent the previous five or six years trying to get out of debt, but he had a long way to go. “My whole goal was to get out of debt,” he said. “I just didn’t want to leave my family in debt.” Hagler added that negotiations

went well, were uneventful and he was happy with the deal. Under terms of the deal, Hagler remains as general manager of the dealership for three years. “I just make sure there’s a smooth transition, make sure all the employees stay and that the business runs well,” Hagler said. “But if I left tomorrow, I think (my team) would be good. I think everybody’s comfortable with the Car-Mart corporation.” Being GM is a lot less stressful than being the owner, he said. “I think the main thing with your stress level as an owner is acquiring inventory, and now Car-Mart does that,” he said. “The other thing is acquiring capital and they have the capital, as well as the corporate support team. “Anything you need, you have the support.” Hagler and his wife still own oth-

er businesses, so that remains unchanged. Along with vehicle acquisition and the capital issues, Car-Mart handles collections for the vehicles purchased after the buyout. Collections are becoming harder as it’s even more important to work with customers to keep them in the car. “That’s where I’ll give Car-Mart a lot of credit,” he said. “They will work with people. They will bring them in, sit them down and try to figure out everything they can to keep them in the car.” Hagler’s happy with where he’s at and appreciative of the industry. “If it wasn’t for the car business, I don’t know where I’d be,” he said. “It got my kids through college and took care of me. I got to meet some of the greatest people in the world. I love the car business.” The Hagler deal was also some-

thing new for America’s Car-Mart, which opened its first dealership in 1981 in Rogers, Arkansas. The business, founded by Bill Fleeman, has now grown to more than 150 dealerships across 12 states Until the last few years, all of the Car-Mart stores were new businesses. But acquisitions are a big part of Car-Mart’s future, said Mike Robortaccio, vice president of mergers and acquisitions. “What I’m doing is actively going out to build the pipeline and find the right dealers that are a fit for us culturally,” he said. “I’m trying to make contacts in the industry who are looking for an exit. “It’s been a challenging time for our industry. So now more than ever some independent dealers might be looking at options for moving on to their next chapter. “I think we can provide that for them.”

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Retail Markets Compiled by

11/20/2023

VIRGINIA

Ed Fitzgerald

Donald Sullivan Jr., owner, Sullivan Auto Trading, Fredericksburg, Va. “We have been in business 33 years. We have another location in Norfolk. “The UAW strike doesn’t seem to have affected anything. If it’s going to have any lasting effect, I don’t think we’ll see it for another 3-6 months. “I don’t think the new-car supply ever got fully replenished (after COVID). I have a friend with a Ford store and he’s only got 10 new trucks on his lot. The manufacturers are really getting picky about where cars go. “Our inventory is about 300 vehicles over the two stores. We sell about half of that each month. “Trucks account for maybe 25 percent of our sales, but 40 percent of our profit. What we’re seeing now is

that we’re selling smaller cars. Just the other day one of our managers said, ‘We have 80-some trucks in stock, I need some cars!’ “The stock market, gas prices, presidential election, maybe a war, there are a lot of things just around the corner. Things can be manipulated, but you never get a real feel for how it will be until about January when the election is over. “We buy cars from Florida all the way to New Jersey. We touch every car we buy. Even if we buy online, we touch every car. “We do a lot of prime sales, so most of those customers don’t do a down payment. I will tell you that we’re seeing a decline in credit and available cash. The car business is really back to what it used to be like. Our average down payment is $500 to $1,000, but I’ve got some people

putting $15,000 down. “We’re looking for cars 10 years or newer, with average miles of 12,000 a year. “We spend an average of $1,750 on reconditioning. “The way rates have gone up; it’s really squeezed our margins. Now, it seems we’re working way harder to make less money. “We just sold a ’16 Dodge Ram 1500, with 90,000 miles. We got $17,000 for it.”

WASHINGTON

J.T. Curry, owner, Motors Northwest, Tacoma, Wash. “Next year we’ll be celebrating our 20th anniversary, all in the same location. “People are feeling more comfortable buying online, I don’t think COVID really had anything to do with it. I remember having a discussion with my dad about selling a $100,000 car to a guy in

St. Louis who’s never seen it, smelled it or touched it. It’s pretty amazing. “Our average inventory is 85. We sell about 75 a month. That breaks down to: 40 percent cars, 40 percent trucks and 20 percent SUVs. “I still go to auctions in person. We have Dealers Auto Auction and also the McConkey Auction Group, which is phenomenal. “I don’t do any buy-here, pay-here. We have a Lojack on every one of our cars. It’s not the original Lojack, the technology is completely different. A company called Kahu bought them and only wanted their name. “I was just looking at our average down payment and, honestly, I was taken aback. Sometimes we struggle to get a down payment but last month we took in 35 finance deals and $108,000. “What I’ve learned is that

it’s either very minimal or the bulk of it, nothing in the middle. Our average term is 54 months. “We spend a lot of money on reconditioning. Our average amount is probably $1,600. “Our advertising is all online, and I think that’s mostly due to the cost of print. “There’s something to be said about having something in your hand, but the cost of print is high. “Six to ten years back is probably our sweet spot for our vehicles. We’re trying to roll in at the 80,000-mile range. “I don’t think the car business is any different than the dental or concrete or framing business. Just take pride in what you do. “The last car I sold was a 2022 Mustang Mach-E, with 6,800 miles. We sold it for $43,000.”

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Wholesale Markets 11/20/2023

SOUTH CAROLINA

Vann Humphrey, general manager, Carolina Auto Auction, Williamston, S.C. “We’re running about 1,200 cars a week. We’re a little shy of where we were before COVID, but not by much. “In my opinion, we handled COVID as well as we probably could. We had to shut down for about five weeks. But after five weeks, we were able to open back up the sale and begin running cars in the lanes. That was gold for us. “The buyers and sellers ultimately want their cars in the lanes. They want to feel them and touch them. So, we were able to find a way to continue running cars through the lanes when a lot of other auctions were not able to or decided not to run cars in the lanes. I think that was the advantage we had.

Compiled by

Jeffrey Bellant ““Year to date, we’re at about 55% conversion rate for the year, which is pretty good for us. “Our attendance is typically 50/50. We usually have a bidder badge count that’s over 600, with 50% of that typically online and the other 50% are in-lane. “We do everything through Auction Edge online. “The feedback we’ve been getting from dealers on the franchise side is that there’s been a lot of focus on their used car side. They’re not really doing much with trades at the physical auction house. If they aren’t able to retail them, then they use some of the virtual wholesale outlets to remarket those cars. The retail environment is strong for both retail and independents. “On the independent side, they are still relying a little bit more on the auction

houses to help with trades or remarket their vehicles. “Our commercial business is probably close to 60% of our business. Our fleet partners are strong partners and have been with us for a very long time. “I think everyone is seeing an increase in repos, but I don’t think it’s substantial or what they expected. I think lenders are trying to work with customers more than they have in the past.”

WISCONSIN

Veronica Kireem, general manager, Greater Milwaukee Auto Auction, Milwaukee, Wis. “Volumes are coming up. Pre-COVID we ran 800 plus, then since COVID we were running 400 to 500 and this week (Nov.9) we got to 600. “I think the increase is definitely because of customer service and the cars bring

the money for our sellers. “Our conversion rate is 62% to 70%. We have loyal customers who have been with us for 19 years. “We definitely have a packed lane. We probably have 300 to 500 weekly in the lanes. It depends on the week and the type of cars you have. Buyers are being really picky right now, really selective. Online (attendance) could be 50 to 100. “The thing is now that used cars are rougher, you definitely have to be there to touch it, hug it and drive it. “That $5,000 car today is really what the $2,000 car (used to be). “I think retail business has recently slowed down a little bit, but overall, they’re doing OK. “We do have fleet/lease/ repo, we run a lot of them. The fleet/lease we run is about 100 (units) a week.

“I have to say I do see an increase in repos. But I also see an increase in redemptions. The problem is, once the car gets repossessed, they can’t afford to buy a new one. The cars are 30% more than they used to be. I see people redeeming really junky cars just because they can’t afford another one. It’s really sad. “I’d say our average cars coming across the block range from $5,000 to $10,000. The market is screwy right now, you just don’t know what you are going to get. “We’re selling a $500 car every week and we’re selling a $100,000 car every week. So, it’s all over the place. But I’d say the $5,000 to $10,000 range is that sweet spot. “On Nov. 30 we’re having a ‘Dealer Appreciation Sale’ and we’ll probably have 1,000 cars for that.”

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DECEMBER 2023 Find an auction near you to stock your inventory of pre-owned vehicles

ADESA Boston December 8, 22 508-626-7000

Columbus Fair AA December 13, 20 614-497-2000

ADESA Charlotte December 14 704-587-7653

Manheim Orlando December 5, 12, 19 800-822-2886

Manheim Atlanta December 14, 20 404-762-9211

Manheim Atlanta December 14 404-762-9211

Manheim Nevada December 15 702-730-1400

Manheim Pennsylvania December 14 800-822-2886

ADESA Chicago December 8 847-551-2151

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

Manheim Dallas December 5, 6 877-860-1651

ADESA Cincinnati/Dayton December 12 937-746-4000

Manheim Pennsylvania December 1, 8, 14, 15, 22 800-822-2886

Manheim Denver December 6 800-822-1177

Manheim Dallas December 5 877-860651

Manheim Riverside December 7, 21 951-689-6000

ADESA Golden Gate December 12 209-839-8000

Manheim Phoenix December 7, 21 623-907-7000

Manheim New Jersey December 6, 20 609-298-3400

Manheim Detroit December 14 734-654-7100

Manheim Orlando December 5 800-822-2886

Manheim Seattle December 13 206-762-1600

ADESA Indianapolis December 12 317-838-8000

Manheim Pittsburgh December 6 724-452-5555

Manheim Milwaukee December 6 262-835-4436

Manheim Fredericksburg December 7, 21 540-368-3400

Manheim Nashville December 20 615-773-3800

Manheim Palm Beach December 13 561-790-1200

ADESA Kansas City December 12 816-525-1100

Manheim Riverside December 5, 7, 19, 21 951-689-6000

Manheim Milwaukee December 6, 20 262-835-4436

Manheim Seattle December 13 206-762-1600

Manheim Minneapolis December 20 763-425-7653

ADESA New Jersey December 14 908-725-2200

Manheim Southern California December 14 909-822-2261

Manheim Nashville December 19, 20 615-773-3800

ADESA Salt Lake December 5 801-322-1234

Manheim Tampa December 14 800-622-7292

Manheim Nevada December 15 702-730-1400

ADESA Tulsa December 8 918-437-9044

Manheim Texas Hobby December 14 713-649-8233

Manheim New Jersey December 6, 20 609-298-3400

ADESA Washington DC December 6 703-996-1100

Southern AA December 6 860-292-7500

Manheim New Orleans December 6, 20

ADESA Lexington December 21 859-263-5163

985-643-2061

Manheim Milwaukee December 6 262-835-4436

Manheim Pennsylvania December 14 800-833-2886

Manheim Atlanta December 14 404-762-9211

Manheim Nashville December 20 615-773-3800

Manheim Riverside December 7, 21 951-689-6000

Manheim Dallas December 5 877-860-1651

Manheim Palm Beach December 13 561-790-1200

Manheim Seattle December 13 206-762-1600

ADESA Boston December 8, 22 508-626-7000

Manheim Denver December 6 800-822-1177

Manheim Pittsburgh December 6 724-452-5555

ADESA Charlotte December 14 704-587-7653

Manheim Fredericksburg December 7, 21 540-368-3400

Manheim Seattle December 13 206-762-1600

ADESA Salt Lake December 5 801-322-1234

Manheim New Jersey December 6, 20 609-298-3400

Manheim Southern California December 14 909-822-2261

Columbus Fair AA December 13 614-497-2000

Manheim Orlando December 12 800-337-8491

Southern AA December 6 860-292-7500

Manheim Dallas December 6 877-860-1651

Manheim Pennsylvania December 1, 15 800-833-2886

Manheim Atlanta December 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. ©2023 JPMorgan Chase Bank, N.A. Member FDIC 12/23


Wholesale Numbers

USED CAR NEWS

11/20/2023 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 Accord Honda Civic Toyota Corolla Nissan Altima Chevrolet Malibu Hyundai Elantra Nissan Sentra Volkswagen Jetta Subaru Impreza Ford F150 Chevrolet Silverado 1500 Honda CR-V Ram 1500 Jeep Grand Cherokee Jeep Wrangler GMC Sierra 1500 Chevrolet Tahoe Chevrolet Silverado 2500 Honda Pilot Toyota Camry Honda Accord Honda Civic Toyota Corolla Nissan Altima Chevrolet Malibu Hyundai Elantra Nissan Sentra Volkswagen Jetta Subaru Impreza Ford F150 Chevrolet Silverado 1500 Honda CR-V Ram 1500 Jeep Grand Cherokee Jeep Wrangler GMC Sierra 1500 Chevrolet Tahoe Chevrolet Silverado 2500 Honda Pilot Toyota Camry Honda Accord Honda Civic Toyota Corolla Nissan Altima Chevrolet Malibu Hyundai Elantra Nissan Sentra Volkswagen Jetta Subaru Impreza Ford F150 Chevrolet Silverado 1500 Honda CR-V Ram 1500 Jeep Grand Cherokee Jeep Wrangler GMC Sierra 1500 Chevrolet Tahoe Chevrolet Silverado 2500 Honda Pilot Toyota Camry Honda Accord Honda Civic Toyota Corolla Nissan Altima Chevrolet Malibu Hyundai Elantra Nissan Sentra Volkswagen Jetta Subaru Impreza Ford F150 Chevrolet Silverado 1500 Honda CR-V Ram 1500 Jeep Grand Cherokee Jeep Wrangler GMC Sierra 1500 Chevrolet Tahoe Chevrolet Silverado 2500 Honda Pilot

2022-11-01 ---------20150 21200 18550 17350 17475 16875 15700 16350 18950 16250 33500 32700 24200 32300 25100 33975 34600 37125 33500 28750 22500 23375 20300 19850 19425 19125 17475 18525 20500 19025 36200 37800 26350 36000 27925 36875 36600 39450 43500 31275 24800 25750 22925 21650 21425 21000 18775 20025 21725 19975 44500 39050 28550 39500 30400 41550 38500 56025 47000 35025 27450 27950 25850 23025 23175 23050 20075 21075 22450 20725 48500 46700 30550 43800 34225 43600 47000 61675 53200 37875

2023-05-01 ---------18825 20225 17275 16625 15900 15325 14150 14900 17425 14925 32000 32500 22825 32500 22775 33450 32700 35450 33800 26550 20675 21850 19700 18850 18150 18000 16475 17825 18900 16400 35300 36500 25100 34500 25775 35975 34500 39050 38200 29975 22950 24325 21275 20350 19550 19300 17725 19450 20125 17625 41800 38500 26950 38800 29025 39425 38000 54100 43000 32750 25075 26075 22975 21375 20100 20250 19350 20550 21400 18875 47000 43700 28250 41800 32575 43125 43000 61050 48000 36275

2023-11-01 ---------15875 16500 14575 13425 13600 13300 11750 11450 14775 13225 26300 28500 20400 28500 19400 30125 29400 31325 29700 24500 17775 18600 16400 15300 15550 15600 13775 15375 15850 15000 32300 31300 22600 33100 22000 32650 31200 36100 31700 27300 19700 21000 19075 17150 17925 18200 15525 17250 17725 16375 37000 34300 24900 36000 24500 36625 35800 50050 35700 30800 21800 23600 21075 18575 19500 21200 17350 18800 18900 17975 43500 40200 27600 38200 27800 40775 39500 57550 42800 34400

2024-11-01 ---------12650 13500 11525 10850 10875 10075 8975 8950 11525 10400 22925 24550 17100 24100 15500 26475 25175 25300 26800 20625 14350 15225 13075 12525 12475 11900 10700 12100 12650 12025 27475 27400 18950 28050 17850 28700 27025 29650 29250 23275 15900 17550 15225 13950 14500 14075 12325 13500 14325 13425 31950 30800 21425 30850 20275 31875 31250 40600 33075 26575 17725 20275 17400 15325 16050 16525 13850 15000 15650 15075 37475 37000 23850 33500 23500 35400 35150 47625 39850 30050

2025-11-01 ---------10675 11375 9450 8925 8950 7850 6950 7050 9175 8400 19225 20575 14075 19625 12275 22775 20925 19600 22875 16900 12250 12800 10800 10450 10275 9300 8425 9625 10275 9850 23000 23150 15775 22800 14275 24650 22700 23325 25725 19250 13575 15050 12600 11750 12050 11125 9925 10850 11800 11225 26875 26400 17875 25350 16525 27050 26375 31850 29125 22100 15225 17825 14825 13025 13475 13125 11375 12100 13300 12900 31325 32175 19975 28150 19625 29900 30350 38125 35125 25250

Actual Wholesale and Projected Residual Values

my --------2019 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


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Tony Moorby

Disconnected Jottings From

Tony Moorby 11/20/2023

• 50-year veteran of the industry

I’ve mentioned before that Terry and I quit the Nashville area this year to move to South Carolina. The house isn’t far from the coast and is situated on a lake. A house on or near the beach invites all kinds of consequences from the weather, but we’re close enough to explore all kinds of amenities offered by it. I have become enthralled with watching the lake every day; at first, I imagined the view would constantly just consist of the water and the sky – blue some days, gray on others. Was I wrong? A large, screened porch with an outdoor kitchen affords the benefit of outdoor living on most days and we take every advantage. The view changes constantly, and we watch the riotous parade of wildlife as the seasons are gradually chang-

ing. Sir David Attenborough would be as captivated as we are. The area is a wildlife sanctuary for alligators and snakes, so a keen awareness of our surroundings is always called for. The payoff is that we can watch the alligators’ graceful progress as the make their way around, basking on the top of the water. We miss the frenzy of feeding time as they mostly eat at night but other wildlife around gives them a wide berth. It’s entertaining to watch panicked fish if the gators get too close. It’s thought that alligators avoid getting too close to things that are bigger than they are – I’ll not be putting that theory to the test, especially as there is one that’s about 17 feet long! I’ve always had a fascination for birds and here in the Low Country there is a

habitat for all kinds of avian amusement. Egrets strut like ballerinas down to the water’s edge and join herons in a waiting game. It’s quite amazing that so elegant a bird can be so vicious with a stab of its beak - so fast you hardly see it. Arctic Terns spend time here, as with most of the coast. They dart with a flitting motion of their wings, suddenly dropping to the water, snapping up tiny fish which they gobble up on the wing and start over. The most amazing sights belong to the Bald Eagles that nest nearby; they patrol the string of lakes that adjoin ours, spying from aloft until they focus on a fish near the surface. They swoop so fast and scoop their prey with murderous talons that promise their dinner a quick demise. About two weeks ago the crows were going

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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

lion diamond bracelets, shimmering back to the sun. The blue-green water reflect the weather until sunset behind us, when things calm again to give glowing reflections of the opposite bank. Pine tree bark glows salmon pink in a warm goodbye to the day.

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Solution to this puzzle in the 12/18/2023 issue. Call 1.800.794.0760 for a FREE subscription.

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• Served as ADESA’s

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

By Myles Mellor

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crazy in front of our house so I went to see what the ruckus was all about. Two bald eagles were in a tree across the street. The male (as it turns out) presented a whole fish to its partner and watched her devour the gift, elegantly pulling the flesh away. After she’d finished, she moved along the branch toward the male who flung his head back and made a gargling shriek before mounting her. Apparently, this time of year is mating season for eagles in the area. I was riveted to the spot for almost an hour Our back porch faces east so we’re treated to stunning sun rises most mornings across a millpond calm surface, occasionally rippled by fish jumping or an alligator gliding to its territory for the day. The glassy surface changes during the day to a mil-

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