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October 3, 2016

Teen Sells Cars At His Family Dealership

STARTING YOUNG: Fourteen-year-old Joey Caggiano stands on the lot at his family’s dealership in Tyngsboro, Mass. Caggiano is only a high school freshman, but he’s selling cars and learning the trade already. By Jenny King

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Joey Caggiano’s best sales day so far at Modern Auto Sales was delivering three cars: a Fiat, a Honda Civic and a Jeep Wrangler. Not bad for a 14-year-old who can’t even drive the cars he sells. Caggiano is on the staff at Modern Auto Sales in Tyngsboro, Mass., where his father Joe Caggiano is the dealer. A family business, Modern Auto Sales has an inventory of close to 100 late-model cars and trucks, priced from $9,000 to $50,000. Caggiano maintains several service bays, an informative website and

sales of some 40 cars a month. At 6 p.m. on a September Thursday, Joey had just completed a test drive with a customer, answered questions and prepared paperwork for a 2013 Fiat 500 pop hatchback. “He’s coming back tomorrow,� the young Caggiano said, his confidence bolstered by the fact that the buyer had left a deposit. He had spent close to two hours on the deal, following a full day of classes. The high school freshman said he prepares for work by checking information on vehicle stickers and by taking online training through Cardone On-Demand. Mike Mon-

nett of On-Demand has given him guidance, he said. And reading and answering questions has given him confidence in his selling skills and customer interaction. “When you complete a study unit, you can print out a sales service certificate,� he said. Caggiono has attended dealer auctions. He says the dealership tends to keep vehicles on the lot until they sell instead of holding to a specific turn schedule. The young sales pro, who used to build and sell mini bikes and hover boards with friends, said he enjoys

working with customers and so far has not had any bad experiences. Follow-up with visitors to the dealership is important. And a positive attitude is an asset to any salesperson, he said. “I try to know as much as I can about the cars,� he said. While he works with and for other generations, Joey Caggiano’s taste in cars reflects his age. The 2013 Audi S7 4.0T Prestige on the Modern Auto Sales lot, with a suggested price of $49,700, was not of as much interest to him as the Subaru WRX ST1 he recently sold. Jeeps and lift trucks are other favorites, he said.


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October 3, 2016 • 3

Used Vehicle Leasing Finally Poised for Growth By Ted Craig

Used-car leasing might finally be ready for growth. It’s an idea that has been talked about for years, but now more banks and captive finance companies are offering the product to the dealers they work with. Used-car leasing grew to 3.71 percent of the market in the second quarter, up from 3.26 percent in the second quarter of 2015, according to Experian. That translates to about 40,000 used leases each quarter. The growth in new-car leasing is driving the growth in used-car leasing, said Melinda Zabritski, Experian’s senior product director of automotive finance. Cars coming off-lease are being put back out the same way. Leasing tends to have lower levels of delinquencies, Zabritski said, but that’s because prime consumer make up a majority of lessors.

Even subprime lessors perform better than traditional retail customers. The 60-day delinquency is 2.29 percent versus 3.13 percent for financing. The lower monthly payment makes it easier for consumers to keep up, Zabritski said. Several factors are driving the growth of used leasing, including the large volume of vehicles coming back into market, increased reliability and the growth of certified pre-owned programs, said Anil Goyal, senior vice president of operations at Black Book. “Used leasing isn’t going to work for every vehicle,” Goyal said. “You need to be data-savvy and realize where used leasing makes sense and where it doesn’t make sense.” The vehicles that don’t make sense are those with large incentives on the new side, Goyal said, since the main appeal is the lower

monthly payment. The main obstacle for growth in used leasing remains a lack of finance companies willing to offer the option. “When you look at the new leasing market, it’s dominated by captive lenders,” Zabritski said. “The used leasing market is much more fragmented.” Goyal said the amount of data available current mod-

els allows lessors to forecast used residuals fairly accurately. Determining the residual at the end poses less of a problem than determining the starting value. “When you’re setting residuals and you’ve got a new vehicle, you know what your starting point it,” Zabritski said. Another obstacle is being able to sell the idea to

consumers. That’s because many dealership staffers don’t understand used leasing. “As leases come back and captive finance arms explore their options and explain them to the F&I managers and the dealers, there is more potential for it,” Goyal said. Goyal said used leasing could reach 15 percent of the market.

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4 • October 3, 2016


NEWS BRIEFS DriveTime Teams with SiriusXM

SiriusXM and DriveTime Automotive Group Inc. announced that the buy-here, pay-here chain’s customers will now receive a threemonth subscription to the SiriusXM “All Access” package when purchasing any pre-owned vehicle with a factory-installed satellite radio. The “All Access” package is SiriusXM’s most extensive offering and includes Howard Stern, every NFL, MLB and NBA game, every NASCAR race, plus NHL games, PGA coverage and live college sports, as well as SiriusXM’s commercialfree music, plus talk programming, comedy and several exclusive online-only channels. All-Access subscribers also get access to SiriusXM programming outside the vehicle on the SiriusXM app and online at

Consultancy Adds Auction Partners

Auction Management Solutions, Inc. has partnered with Columbus Fair Auto Auction, Rochester Syracuse Auto Auction in Waterloo, N.Y., and Greater Quad City Auto Auction in Milan, Ill., for business development consulting. AMS, which was started in early July by industry veterans Tom

Stewart and Richard Curtis, provides consulting services to the automotive industry that include independent auto auctions. Adding the auctions brings the group to 11 total locations, which also includes Greater Erie Auto Auction, DAA Chattanooga, DAA Murfreesboro, DAA Memphis, DAA Huntsville, DAA Mobile, Southeastern Auto Auction and 166 Auto Auction.

Finance Platform Partners with NADA Used Car Guide

Online lender management platform E-Credit Express has entered into an agreement with NADA Used Car Guide to speed up the used vehicle sale and loan approval process. The integration of NADA Used Car Guide’s values into the ECE platform makes all vehicle value information available to lenders with the platform’s credit application feature. E-Credit Express’ platform connects dealers and their customers with banks and lenders across the country.

IAA Debuts New Tool

Insurance Auto Auctions Inc. announced its newest development, IAA Loss Advisor. The tool enables insurance claims

staff to generate an early total loss recommendation. It generates the recommendation based on information they provide regarding the post-accident condition of the vehicle combined with the ACV and IAA salvage vehicle market value data.

ing previous investors L Catterton, General Catalyst Partners, Allen & Company, and funds and accounts advised by T. Rowe Price Associates Inc. The latest financing brings Vroom’s total funding to $218 million since inception.

NIADA Names Benefit Partner

Fiserv Introduces Tools for Finance Companies

Dealer Assist Now has joined with the National Independent Automobile Dealers Association as its latest National Member Benefit partner, offering handwritten custom vehicle comments to the association’s independent and NIADA Certified Pre-Owned dealers. NIADA members who sign up for Dealer Assist Now receive discounts on personal writers and selfservice library access. DAN provides custom vehicle comments/descriptions for dealership inventory, offering custom descriptions that go far beyond the information provided by a VIN decoder or auto-generated comment.

Fiserv Inc. announced the launch of a multi-tier implementation model for its Auto Loan Origination System and Automotive Account Servicing solutions to help new entrants expand into auto financing and growing lenders to improve their efficiencies. Services include credit processing, contract funding, dealer integrations, accounting and cash management, default management, collateral management and customer care which enable lenders to use a single partner. C R O S S WO R D

Online Retailer Raises More Money

by Myles Mellor

Online retailer Vroom announced the completion of a $50 million Series E funding round with new investors Altimeter Capital and Foxhaven Asset Management, join-


Published By General Media LLC USED CAR NEWS (ISSN 1555-7413) is published at 24114 Harper, St. Clair Shores, MI 48080 Phone: 586-772-5200 or 800-794-0760 Fax: 586-772-9400 Charles M. Thomas - Founder (1947-2002) Lynda R. Thomas, Publisher Colleen Fitzgerald, General Manager Columnist: Tony Moorby

Editorial: Ted Craig, Managing Editor Jeffrey Bellant, Staff Writer Contributing Writers: Ed Fitzgerald, Jenny King, Sheila McGrath


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

Circulation: Helen Thomas Production: Tom Savage, Production Manager Cee Lippens, Web Master

Vol. 22 • No. 11 Used Car News is published the first and third Monday of each month. 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

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October 3, 2016 • 5

CarMax Sells More Retail Units, Fewer Wholesale CarMax Inc. reported higher sales and revenues in the recent quarter ended Aug. 31. Total used vehicle unit sales grew 7 percent and comparable store used unit sales rose 3.1 percent versus the prior year’s same quarter. The comparable store sales performance reflected a solid increase in conversion that was partially offset by a decrease in store traffic. Other sales and revenues declined 4.8 percent compared with the same quarter last year. This primarily reflected a decrease in new vehicle sales due to the disposal of two of the chain’s four new car franchises. Extended protection plan revenues increased 17.1 percent, reflecting the growth in used unit sales and pricing changes. In addition, last year’s extended protection plan revenues were reduced by an increase in estimated cancellation reserves. Total gross profit increased 4.6 percent versus last year’s quarter, to $545.4 million. Used vehicle gross profit rose 6.7 percent, driven by the 7 percent increase in total used unit sales. Used vehicle gross profit per unit was consistent at $2,160 versus $2,166 in the prior year period. Wholesale vehicle unit sales declined 1.3 percent versus the same

quarter last year. There was one fewer Monday this year than in last year’s comparable quarter. CarMax runs its auctions on Mondays. Excluding the effect of the calendar shift, CarMax estimates this year’s wholesale vehicle units would have increased 1.4 percent versus last year’s quarter. Wholesale vehicle gross profit declined 9.7 percent versus the prior year’s quarter, reflecting the 1.3 percent decline in wholesale unit sales and a decrease in wholesale vehicle gross profit per unit to $870 from $951. Compared with the same quarter in 2015, SG&A expenses increased 10.7 percent to $366.1 million. The growth reflected the 11 percent increase in CarMax’s store base since the beginning of last year’s quarter, representing the addition of 16 stores. Compared with last year’s quarter, CarMax Auto Finance income declined 2.4 percent to $96 million. The decline was due to an increase in the provision for loan losses and a lower total interest margin percentage, partially offset by the effects of the growth in average managed receivables. The increase in the provision for loan losses reflected the combined effects of some unfavorable loss ex-

perience in the current year’s quarter and the growth in managed receivables. Average managed receivables grew 11.7 percent to $10.05 billion. The total interest margin, which reflects the spread between interest and fees charged to consumers and the company’s funding costs, declined to 5.9 percent of average managed receivables from 6.2 percent in last year’s same quarter. The total interest margin has now been at 5.9 percent for three con-

secutive quarters. The allowance for loan losses as a percentage of ending managed receivables was 1.08 percent as of Aug. 31, compared with 0.96 percent as of Aug. 31, 2015, and 1.05 percent as of May 31. During the second quarter of fiscal 2017, CarMax entered into a new $100 million warehouse facility that will be used to fund CAF’s Tier 3 loan origination activity. This facility has a one-year term, expiring Aug. 1, 2017. | AFC On the Go Mobile App We make doing business easy, wherever the road may take you. Take advantage of our 24/7 online access and mobile app to manage your AFC account any time, any place. Visit us online, give us a call, or visit your local AFC location to learn more about our used inventory finance programs. © Automotive Finance Corporation. All rights reserved.

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Auto Finance Shows Strain U.S. auto loan and lease credit performance will likely continue to deteriorate in the second half of 2016 and into 2017, according to a new report from Fitch Ratings. Year-over-year credit performance deteriorated for auto lenders in the first half of 2016, despite improved loss rates relative to the first half of 2015, which Fitch attributes primarily to seasonality. “Fitch expects credit performance to continue to deteriorate going into 2017, particularly in the subprime segment as less tenured auto finance companies with looser underwriting standards have entered the market in recent years,” said Michael Taiano, director of Fitch Ratings. Strong auto loan and lease portfolio growth for Fitch-rated auto finance companies continued in the first half due to strong auto sales, low interest rates and continued consumer demand for leases and extended loan terms, although the growth rate decelerated slightly from last year. Fitch expects loan growth to continue to moderate, particularly should interest rates rise and usedcar values decline, which could impact lease pricing.

Despite the recent credit deterioration, Fitch-rated auto lenders’ ABS credit performance continues to be strong relative to historical norms as the average net loss rate increased a modest eight basis points to 0.73 percent in the second quarter from 0.65 percent in the second quarter of 2015. Average 30-day delinquencies actually decreased slightly to 3.16 percent from 3.25 percent during the same period. Losses among the largest auto lenders remained low, but continue to normalize due to an increase in both loss frequency and severity. The average net charge-off rate on the managed portfolios for lenders cited in the report increased to 0.53 percent from 0.43 percent year over year. Huntington Bancshares Inc., JPMorgan Chase & Co., and American Honda Finance Corp. ended the first half of the year with the lowest credit loss rates largely due to the prime nature of their portfolios and consistent underwriting standards. In related news, the S&P/Experian Consumer Credit Default Indices showed auto finance defaults recorded a 1.01 percent default rate in August, up from 0.93 in July.

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It’s going to cost car dealers in Attleboro, Mass., a lot more to renew their license this year if they don’t get their paperwork in on time. On Sept. 20, the Municipal Council approved increasing the license fee from $100 to $300 for any dealers who don’t have their renewal application in by the first Friday in November, the due date set by city ordinance. City officials said they need to have all the applications in by then so they can be processed by Jan. 1, when the new licenses take effect. City Clerk Stephen Withers said he hopes the new measure will give the city’s dealers some incentive to be timely with their applications. “Last year, it was a big problem,” he said. In 2015, 13 of Attleboro’s 38 used car dealers and one of six new car dealers turned their applications in late. In prior years, the city required late applicants to attend a public

hearing in order to renew their license. But that wasn’t helping, city officials said. Last year, on Dec. 15, more than a dozen car dealers appeared before the council to get their licenses renewed. Several said their applications had been late because they simply misplaced the paperwork or didn’t notice the deadline. But others had more complicated reasons. One said the landlord from whom he leased his property had not yet paid his property taxes, and he couldn’t turn in his application until the taxes were paid. One was involved in an ownership change, and another was still waiting for a new workers’ compensation certificate after changing insurance companies. Withers said none of the city’s dealers attended a public hearing in September to discuss the proposed change before it took effect. Packets will be mailed out to all the city’s car dealers early in October with the application renewal forms and a notice of the new fee, Withers said.

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October 3, 2016 • 7

Shoppers Use Social Media Despite Drawbacks Consumers who use the internet during their newvehicle shopping process are increasingly turning to social media websites as a source of information, according to the J.D. Power 2016 New Autoshopper Study. The study analyzes how new-vehicle buyers use digital devices – tablets, smartphones and computers – to gather information prior to purchase, as well as which websites and apps they use during the shopping process. The study also examines which types of content newvehicle buyers access during their shopping process and which content they find most useful. Among automotive internet shoppers, 22 percent use a social media site as a source while shopping for their new vehicle, up from 16 percent in 2015. The most popular social media sites used by auto internet shoppers during the shopping process are YouTube (13 percent), DealerRater (7 percent) and Facebook (5 percent).

“Social media plays a large role in many consumers’ lives, so it’s not surprising that it’s one of the tools they’re using during the vehicle-shopping process,” said Mike Battaglia, vice president of automotive retail at J.D. Power. Among automotive internet shoppers who use social media, only 13 percent indicate that the information posted on social media sites influenced their purchase decision, and only 2 percent say a social site was the “most useful site” they visited. “Social media platforms aren’t as useful as automotive shopping websites for automotive information, but they do serve the needs of consumers for unbiased dealer reviews, affirmations from other vehicle owners, accessing automotive-related videos and exchanging ideas and opinions with friends and family members,” Battaglia said. Slightly more than onethird of new-vehicle buyers using social media for automotive information post a picture of their new vehicle

on a social site. Facebook is by far the most posted site at 88 percent, followed by Instagram at 21 percent. While the use of social media in the automotive research process is increasing, it still does not rival the traffic to auto shopping websites. The study finds that more than nine out of 10 automotive internet shoppers visit at least one automaker’s site during the shopping process, while 84 percent visit a dealer site and 79 percent visit a third-party site. On average, internet shoppers visit 10 automotive websites in their shopping process: four automotive manufacturer websites, three third-party websites and three dealership websites. The most frequently accessed content on automotive shopping websites are model information (89 percent), vehicle pricing (88 percent) and photo galleries (81 percent). Yet, automotive internet shoppers find different types of sites more useful for different reasons. For example, automotive internet shoppers find that

automotive brand sites are most useful for their model information, vehicle configurators and photo galleries, whereas dealer websites are found to be most useful for inventory searches, and vehicle pricing and thirdparty sites are most useful for vehicle ratings/reviews and vehicle comparisons. More than half of automotive internet shoppers use a mobile device in their quest for automotive information. For 2016, smartphone usage surpasses tablet usage (37 percent vs. 33 percent, respectively). The use of desktop or laptop computers remains most common at 92 per-

cent, but has been steadily decreasing from 99 percent in 2012. Consequently, the proportion of time spent shopping on mobile devices continues to increase, with 33 percent of the total shopping time now conducted on a mobile device. The three most frequently visited third-party sites have remained consistent since 2012 (listed in alphabetical order): Consumer Reports, and Kelley Blue Book. Among the 37 third-party websites measured in the study, TrueCar experiences the largest increase in site visitation for a second consecutive year.



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8 • October 3, 2016


Dealer Life CFO AIDS LOCAL WOMEN, CHILDREN An exercise class Madalene Daniell once taught to a group of pregnant women turned into a decades-long mission that has helped thousands of women and children in her community. She also manages to squeeze in her full-time job as chief financial officer of Daniell Motors, the family business in Hattiesburg, Miss. Daniell’s husband, Steve, is president of the company and their son, Breck, is sales and finance manager. “The same year we (my husband Steve and I) started Daniell Motors – 1978 – we had just had our

national organization that partners with local hospitals dedicated to advancing the cause of women’s health and wellness. “It started as a support system for women in their child-bearing years,” Daniell said. She said people have become more transient over the years and women may not live near their own mothers or grandmothers. Many mothers don’t have extended families passing down support, information on development and other kinds of knowledge as they did in the past. “So the logic originally was to reach out to help young mothers have postpartum support and care of their babies,” Daniell said.

two kids and I was actually teaching at a local college,” she said. Daniell, who holds a Master of Fine Arts degree from the University of Southern Mississippi, said she thought a fitness class for pregnant momsto-be could be advantageous to the community. After proposing the program to some local obgyns, they decided to let her try it out. Daniell developed a series of classes through Forrest General Hospital, which is part of the Spirit of Women network of hospitals. Spirit of Women is a

Daniell calls her programs, “Fitness for Two,” and they focus on prenatal and postnatal programs for moms and their babies. The programs are sponsored and supported by the hospital. A local clinic provides space for the classes. The classes range from “Coach’s Corner;” which teaches labor and delivery techniques, to classes like “Mommie and Me,” which give mothers and their babies an opportunity to interact and exercise together using “music, movement, story and rhyme.” These programs are offered to mothers and their

By Jeffrey Bellant

children through age 3, Daniell said. “So I work here at Daniell Motors and do all the financials and then split my brain up and go over to the hospital to enjoy dancing and loving some beautiful babies,” she said. She develops relationships with the mothers, who are referred by area doctors. Classes involve activities that develop the children’s physical, mental and social skills and advance as the children grow from babies to toddlers. The classes provide an interesting mix of women in various life situations, she said. “Some of them are mothers trying to stay home after having been career women,” Daniell said. “Some are single parents and their moms bring them so they can have a network of support and to learn. “It crosses all types of socio-economic levels.” Classes are available to “pretty much anybody” as hospitals subsidize the classes, which have a nominal charge. Since the children participate in activities ranging from song and dance to music and books, they get a head start on preschool. “Now we realize that these babies and children are actually excelling because of the development we are giving them through the arts and other activities,” Daniell said. One benefit of the program’s diversity is the

experience with special needs children. “I had one child that was a spina bifida baby,” Daniell said. “What I find is that when I get a special needs baby, it exposes all the children early on with those situations and they become extremely supportive of one another.” Daniell has been able to see how the families turn out. “For instance, we were at the University of Southern Mississippi football game once and one of my ‘moms,’ as I call them, had a daughter who was out there as a Dixie Darling (USM’s dance team),” Daniell said. “That daughter was one of the babies that I had in classes.” One long-term result of these programs is moth-

perience of working with generations of mothers and children with how the dealership has provided transportation to the children of past customers. She gets to know the families and help with their needs in a different way. Daniell said her husband has been gracious in giving her the time away from the dealership to teach these programs. “Obviously, Daniell Motors is primary for our family,” she said, “but ‘Fitness for Two’ serves a special purpose in my life as well.” In 2015 alone, Daniell taught 201 classes with 3,826 mothers, babies and family members attending. She said she’s seen the difference these experiences make.

ers develop a community of friends they didn’t have before. Daniell said she even has young mothers referred by their own mothers who participated in the program years ago. She compares the ex-

“They find a network of long-range support from each other,” Daniell said. “They have people they’ve connected with – other women and families – and they stay connected with them for a lifetime.”

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October 3, 2016 • 9

Tesla Sues State

Ready. Set. Pause.

LANSING, Mich. (AP) – Tesla sued Gov. Rick Snyder and other top state officials, challenging a Michigan law that ensures automakers can only sell through independent, franchised dealerships and not directly to customers. The federal lawsuit seeks a declaratory judgment that the 2014 ``anti-Tesla’’ law is unconstitutional and an injunction to prevent its enforcement. The Michigan Department of State last week denied Tesla Motors Inc.’s application for a dealer license to sell to consumers, citing the law that is backed by big auto companies and their dealerships. It has not yet decided on Tesla’s bid to register a vehicle repair facility in the state that is home to the Detroit Three carmakers. “The sole purpose for applying (the law) to a non-franchising manufacturer like Tesla is to insulate Michigan’s entrenched automobile dealers and manufacturers from competition,” the Palo Alto, California, company said in the suit. Tesla said it prefers that legisla-

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tion be enacted to lift the ban on direct sales but was told by legislators in June that no hearing will be held. “As a result of this law, Michigan consumers are forced to accept reduced access to the products they want, less competition and higher prices. ... Tesla will continue to fight for the rights of Michigan consumers to be able to choose how they buy cars in Michigan,” Tesla Motors Inc. said in a statement. In 2014, the Republican governor and GOP-controlled Legislature amended state law to clarify that car companies can only sell through franchised dealers. Tesla officials said it was a last-minute, monopolistic strike at their upstart company, which has no traditional dealerships. In the United States, Tesla operates stores in 23 states and the District of Columbia. Tesla also operates in 20 other countries. There are no countries where Tesla has not been able to sell directly, and the only states where it has been unable to get a license are Michigan, Texas, Connecticut and Utah.

Copart Expands Overseas Copart Inc. reported financial results for the quarter and year ended July 31. For the three months ended July 31, revenue, gross margin, operating income, and net income were $332.7 million, $141.5 million, $106.2 million, and $84.1 million, respectively. These represent an increase in revenue of $50.4 million; an increase in gross margin of $22.7 million; an increase in operating income of $19.4 million; and an increase in net income of $26.7 million, respectively, from the same quarter last year. This marked the end of Copart’s fiscal year. For the year, revenue, gross margin, operating income, and net income were $1.3 billion, $544.6 million, $406.5 million, and $270.4

million, respectively. These represent an increase in revenue of $122.4 million; an increase in gross margin of $61.2 million; an increase in operating income of $62.1 million; and an increase in net income of $50.6 million, respectively, from the same period last year. The company expanded its presence in the United States and overseas during the quarter. Copart expanded its San Antonio facility and opened a second facility in Denver. The salvage auction chain opened its first German vehicle storage and auction location in Bad Fallingbostel, near Hanover. Copart also debuted its first real time online auction of vehicles in Spain.

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10 • October 3, 2016


Enterprise Grows Stores


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Enterprise Car Sales, a service of Enterprise Rent-A-Car, has opened two new locations in the Phoenix area. To celebrate the openings, all Enterprise Car Sales locations in Arizona appraised trade-in vehicles using Kelley Blue Book trade-in value plus an additional $1,000 throughout September. The 3,831-square-foot Scottsdale dealership, which is located at 1723 N. Scottsdale Road, can accommodate more than 100 vehicles. The 13,192-square-foot San Tan Motorplex dealership is located at 1312 E. Motorplex Loop in Gilbert and shares space with an Enterprise Rent-A-Car branch. The San Tan Motorplex dealership features an outdoor display space that can accommodate 135 vehicles as well as a dedicated indoor delivery area – making it the largest Enterprise Car Sales location in Arizona to date and one of the brand’s largest locations nationwide. “Our flagship San Tan Motorplex facility replaces the former Enter-

know at a glance which vehicles to bid on. Subscriptions start at just $50 / month.

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* Separate subscription(s) required. † App download fee is $1.99. Apple and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Google Play is a trademark of Google Inc. NADA Used Car Guide and its logo are registered trademarks of National Automobile Dealers Association, used under license by J.D. Power and Associates.


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prise Car Sales location in Tempe, Ariz., and represents the new look of our dealerships, which provides a truly customized car-buying experience,” said Chuck Maslin, Enterprise Group Car Sales Manager in Arizona. The new store offers a variety of settings for consumers to go through the sales process, including high-top workstations in the showroom, private offices and even a lounge area equipped with WiFi and charging stations. The new facilities in Scottsdale and the San Tan Motorplex join two other Arizona-based Enterprise Car Sales locations in Tucson and Peoria and represent the latest examples of the overall growth of the Enterprise Car Sales network of more than 130 locations nationwide. So far this year, Enterprise Car Sales has relocated two other locations to enhanced facilities and opened three new dealerships, including Marlow Heights, Md., Ventura, Calif., and a fourth location in the Chicago area.

Court Sentences Salesman A former salesman was sentenced to at least 16 months in prison for stealing car payments from customers and dealerships in Nassau County. Michael McGriff pleaded guilty to charges, from two separate indictments, of grand larceny, identity theft and scheming to defraud. McGriff must pay restitution in the amount of $365,546 by civil judgment to his victims. At Lexus of Rockville Centre and Port Motors Lincoln Mercury in Roslyn, McGriff concealed his theft from his victims by preparing finance contracts that did not reflect the down payments given. As a result, customers were forced to pay higher-than-expected monthly payments or face repossession because the down payment given to McGriff

was never applied to the loan. McGriff also collected cash payments in full for used cars from customers. Months later, the customers discovered that McGriff had forged finance contracts generated and filed with multiple banks for auto loans that the customers never authorized. Some customers had their vehicles repossessed as a result. In yet another scheme while working at Port Motors, McGriff collected cash payments from customers, but never produced a car. McGriff also used an alias, Michael Glenn, claimed an affiliation with Titanium Auto Group in Uniondale, and collected $12,900 cash from a victim to purchase a vehicle at auction, but never bought the car.

9/26/16 7:06 PM


PEOPLE IN THE NEWS Dent Wizard Adds Executives

Dent Wizard International recently appointed two executives. Gil Eaton was promoted to the position of vice president of information technology. Eaton will manage all functions of Dent Wizard’s IT systems. He will report to chief financial officer Tammy Conner, and work from the company’s headquarters in St. Louis. Eaton joined the IT team in 2014, serving as software developer. Prior to joining Dent Wizard full time he was an IT specialist for wholesale vehicle auction operator Manheim, focusing on the Dent Wizard business. Scott Goodwin will serve as vice president of OEM services for Dent Wizard’s Know How Systems (KhS) business unit, which

provides high-volume automotive repair, claims management, and appraisal services to automotive OEMs and insurers in the

Goodwin will report to KhS’ CEO Scott Blind. Goodwin has more than 23 years of experience in vehicle logistics, most recently in senior management positions with Volkswagen Group of America. He has also worked for Glovis America, Inc. and Hadley Auto Transport.

He will report to Brian Cosgrove, president of PWI. Warzynski joined the KAR group of companies in 2005 as a dealer sales representative with ADESA. Mostly recently, Warzynski served as ADESA’s executive director of dealer relations, leading dealer relations teams at auc-

Preferred Warranties Taps Sales VP

Scott Goodwin U.S., Canada and Mexico. Goodwin will be responsible for KhS’s newly established OEM services group, directly supporting OEMs in the finished vehicle supply chain by providing solutions for in-transit repairs with a focus on key, battery, wheel and tire replacement, as well as light mechanical.

Preferred Warranties Inc., a business unit of KAR Auction Services Inc., announced that the company has named Ryan Warzynski as vice president of sales and marketing. In this role, Warzynski will direct all sales, marketing and training departments, while providing strategy for all sales and marketing campaigns nationwide.

Dan Diedrich tions throughout the U.S. as well as the company’s national inside sales team. Warzynski earned his master’s degree from Northern Illinois University and his

October 2016••11 October 3, 3, 2016 11

bachelor’s degree from University of Wisconsin–Madison. He also served for five years with the U.S. Army.

Auction Edge Names New President

Auction Edge has announced changes to the structure of company management. Scott Finkle now serves in a strategic advisory role with the company after leading Auction Edge for the last 30 months. Taking over as president will be Dan Diedrich, a member of the Auction Edge management team since 2012. Diedrich is an industry veteran with over 18 years of experience.

Tech Firm Partners with Attorney

Over the Edge, a technology development/design company and creator of the TecAssured Software Suite, has announced

Keith Whann

a partnership with Keith Whann, an attorney and compliance authority. Whann will advise and consult clients as they use the company’s TecAssured system to easily create, sell, manage and administrate F&I, warranty and other protection products. Released in May, TecAssured is a cloudbased e-rating and econtracting solution that provides easy-touse tools for dealers, agents and TPAs to sell and manage their own products.

American Credit Acceptance

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12 • October 3, 2016



Lauren Bowden Thomas, president, Bowden Motors, Bellefontaine, Ohio: “We’ve been in business 23 years. “We keep about 50 to 60 vehicles on the lot. It’s about the same as this time last year. “We’re selling about 30 a month. It’s been pretty good. Our spring was good. Our July was a little bit slow but then August was great. “We do retail and we’re a little different from other dealers. We specialize in Hondas and Acuras. That’s all we keep. Hondas are made right near us. There are several Honda plants and subsidiaries in our county. Almost everyone in our town is associated with Honda, so those are the cars they want. “We work mostly with prime lenders, but we also do some subprime. “We get our vehicles from auctions. It’s about 100 percent. I keep my trades

if they are good. I use the Manheim auctions a lot. I also use some independent ones. “The average model year is 2010. I would say most of our cars have 80,000 to 100,000 miles. We have to reach out further and further for the right cars. We have to go out of state sometimes if we can’t find them locally. “The only truck we carry would be the Honda Ridgeline. So I buy most of the ones I see because our customers like them. “We’ll only have about three or four of them at a time. “There’s not that many of them in the used market but hopefully, with the new model coming out, maybe the previous Ridgeline owners will trade in and they will be more available at auction. “Reconditioning costs vary from car to car. On average, I’d say we’re spending $200 to $400 a car. The big challenge for us is that

all the customers want us to do the timing belt and water pump on them because it’s something most of the Hondas need. But we have our own service center, so we like to negotiate that in with the deal. “We mostly service our existing customers. We have eight bays and two technicians. We also service the general public, but we don’t advertise it. “Most of our advertising is online. We have a website and we use Autotrader. We’re doing a little bit more on Facebook. Our local paper has a website so we advertise on that. “We recently sold a 2010 Honda Element. It had 124,000 miles. We got $13,295. I buy every one I find.”


Tyler Larson, general manager, Law Motors, Sioux Falls, S.D.: “We started in October 1997. We have one location.

Compiled by Jeffrey Bellant “On average, we carry 68 units. But we’re at 58 (in the third week of September). I was SUV-heavy through the summer and that inventory had become stale, so I unloaded that. Now I’m getting ready to buy back some – and some trucks – for the winter. “Seventy percent of our inventory is from private parties or auctions. Thirty percent of our inventory is from trade-ins. We do not wholesale our inventory. “The auctions we use are Manheim Omaha, Manheim Minneapolis, Manheim Northstar Minnesota and ADESA Sioux Falls. “Average retail price is $12,700. Over the year we have increased our prices for our targeted customer. I have not lost traffic. “It’s all internet. We do most of our sales through the internet. “We either deliver out of the state or they come and pick up the car. “But we don’t see any lot traffic. We’re open for it. We

just don’t see it. “Part of it is location. But we have good local search tools online that people use. “Our average model year is 2009. The average mileage is 75,000. “I’m buying inventory that people want to buy – what’s in demand in the marketplace. “We carry 60 percent trucks and 40 percent cars. Of those trucks, it’s 60 percent pickups and 40 percent SUVs. “It’s 80 percent domestic and 20 percent import. “Reconditioning costs depend on the year of the vehicle. But overall it would be about $450. It’s going up. “We do the service ourselves. We have two fulltime mechanics. We do retail service and internal. I have enough inventory coming in and going out that I keep busy, so I don’t advertise the (retail service). “We recently sold a 2012 Chrysler Town & Country with 42,000 miles for $20,350.”


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9/27/16 9:49 AM



Stephanie Baker, general manager, Dealers Auto Auction of Murfreesboro, Murfreesboro, Tenn.: “It’s a six-lane facility, but we run four lanes. “This year is the sixth anniversary of Dealers Auto Auction of Murfreesboro. We celebrated it Aug. 17. We did a lot of charity this year. We were teamed up with Dreams and Wishes of Tennessee. “It’s for children who had cancer, went into remission and then (relapsed). “We’re running about 450 a week, which is average (for the end of summer), maybe a little better than this time last year. “During the busy time we’ll run 600. “Our sales percentages are anywhere from 48 to 54. “We draw 350 dealers into the lanes. “They mainly come from around us here in the Southeast region. “We’re on Pipeline so we get some online bidding. Ac-

tually, we see an increase on online bidding every week. Several of our customers like to know how many bidders they get. “You can track that and report it to sellers. “Everybody has been on an upswing, but now with the election coming up, they are preparing for a little offseason. “Fleet-lease makes up about 25 percent of our sale. We have consignors like ARI, Emkay and Enterprise. “Our average price overall is $5,400. “We run a GSA sale once a month on the third Wednesday. “We’ve sold over 2,200 units already (through September) this year. They could be anything from sedans to a bucket truck. “We’re still a truck market here. “We’ve done some remodeling. We have a cyber room for dealers. It gives them a spot to go in and use our computers or bid online. That’s a big push for us.”

From the



Dale Martin, general manager, Lone Star Auto Auction, Lubbock, Texas: “We had a 31st anniversary sale this year in July. We had 1,100 cars at that sale. “Currently, we have seven lanes and we’ve been running in the 800-car range this time of the year. We’ve had a few bigger than that, too. We’re maybe just 2- or 3-percent off in consignment compared to last year. “We draw close to 300 dealers in the lanes. That’s the same as this time last year. “We’re in West Texas, so we’re six hours away from all the major metroplexes. We’re the center hub if you’re going to get to Dallas or San Antonio and other places. So we draw from a pretty good 250- to 300mile radius. “We have dealers that come from a long distance – California and Kentucky dealers. We also have Oklahoma dealers and others. But the majority comes

October 3, 2016 • 13

Compiled by Jeffrey Bellant

from within two hours of here. “In our area, we have kind of a mix of (industry). We have some farming, some oil and we have a big regional medical hub here in Lubbock. So our economy is pretty stable. I’d say their business is not down, hopefully up a bit. “Our mix is 75 percent dealer to 25 percent commercial. That’s pretty close to this time last year. “On the non-dealer consignment, they are just a mix of fleet and repossessions – remarketer’s repossessions. “The average price overall in the lanes is $10,000. That hasn’t changed from last year. “For our online sales we use Whann Technologies, the old AWG. We’re selling maybe 7 percent to 10 percent simulcast for the main sales. “We also do a damageand-disabled sale that also runs online. We have those every week. We ran 75

(units) during one recent week. We sell a really high percentage of those to online buyers. You don’t really have to touch it or feel it if it doesn’t run anyway. “For our regular sales, we sell a lot of pick-up trucks in this market. “People like four-wheel trucks, but we can sell twowheels, too. We’re flat as a pancake out here. You can see for 14 miles in any direction. A lot of the companies don’t use four-wheel drive unless they have to be offroad, like some of the oil field companies. “But some of our dealers from Kentucky can’t sell anything that’s not fourwheel drive. “The four-wheel drives bring a little more. Mainly those are for the young guys who want to lift it up and have four-wheel drive because it’s a status symbol. “There are buyers for all kinds of vehicles. We’ve grown our buyer base to where we can sell just about anything.”

Working with our generous auction partners, Santander Consumer USA will share the holiday spirit with several charities again this holiday season – and you can help!


for the


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Each time your dealership purchases a car at auction, Santander Consumer USA, and participating auctions will donate a portion of the proceeds* to selected charities.

* Combined donation will total $6 per auction vehicle purchased.

Child Legacy International | | Oct. 1 – Oct. 31 Mercy International | | Nov. 1 – Nov. 30 St. Jude Children’s Research Hospital | | Dec. 1 – Dec. 31

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14 • October 3, 2016


Special Advertising Section





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9/26/16 7:37 PM


DISCONNECTED JOTTINGS FROM I was strolling around Barnes and Noble the other day. I still enjoy the tactile environment of a real bookstore even though I buy most


car, screaming my head off but enjoying every minute. I’ve written often about my escapades with food but failed to observe that you

Tony Moorby

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

of my books on Amazon – probably like most people, on a whim and on my butt. Anyway, while wandering about I realized that the phalanx of shelves bulging with cookbooks was adjacent to just as many holding books on dieting. I fear it had not so much to do with any sense of marketing balance but reflected many people’s struggles with food, in general. When you picture the roller coaster of eating and dieting, that’s me in the front

have to pay the piper every now and then. I love all the usual suspects: potatoes cooked any way you can think of; pasta in any shape or size and in any kind of sauce; bread so long as you don’t need an axe to cut it like one of those “healthy multi-grain” concrete slabs covered with the contents of the bottom of a bird cage and rice in all its universal glory from Cajun to curry or basmati to baked rice pudding. Cheese is another naughty indulgence. It can come

in any form or color you like - I’m in! The softer, gooier and smellier the better or blue cheese strong enough to make your teeth itch and cheddar sharp enough to separate the skin from the roof of your mouth – even those little crackers which contain the cheese that’s the same color of the clothing and equipment normally reserved for those in the rescue business – hi-viz orange! Cheese is one thing the French have provided for the good of mankind, along with bread and proof that pasteurization, as insisted upon by the USDA, is detrimental to flavor development. A case in point, and a favorite of mine, is a cow’s milk cheese called Epoisses. When left at room temperature for a couple of hours its odor will wrap itself around you like Dracula’s cloak while it oozes out of itself like molten lava but its nutty, heady taste will stay with you as long as a visiting relative, It’s been banned on French public transporta-

C R O S S WO R D example 33. Lady in Germany 34. Have title to 36. Brake ____ systems 38. GMC ____, aka Chevrolet Astro 41. The “p” in r.p.m. 42. Glove compartment item 43. Grazing area 44. Older than Jr 45. Highway divider 46. Move quickly Down 1. Future model 2. Coast Guard officer, abbr. 3. Lotus model 4. Weight

tion, the smell being considered so offensive. So all that calorific, cholesterol-laden lusciousness has to be countermanded by eating enough salad that you start leaning toward the sun or submitting to the cleansing effects oatmeal and the like. I’m not one of those people with the willpower to eat one salted peanut or jalapeño potato chip or the ability to drink water in sufficient amounts to sink a battleship, although it’s delicious when mixed with bourbon. Cereals for breakfast that boast the taste and consistency of packing peanuts hold no attraction whatever except perhaps the possibility of an early morning bowel movement, Moderation in all things has always been good advice – easier said than done, of course. A nice salad is very

pleasant so long as it’s a precursor to the main course with dessert or cheese to follow. Actually a three-course meal now seems a thing of distant memory. Some may remember when everything started with a shrimp cocktail and ended with Black Forest gateau - fat chance these days (pun intended). Luckily I enjoy chicken and fish but I’m an inveterate snacker with chocolate being the real culprit, oh and a Jewish deli pastrami and Swiss on rye would also qualify! So for now, lunch is fatfree cottage cheese with the consistency of mealy porridge atop a watercress and arugula salad adorned with a fat-free dressing – Yummo! I now have proof of Einstein’s Theory of Relativity – a Snickers bar, when eaten quickly, can provide a huge amount of energy!

To see past columns from Tony Moorby, visit Digital version available at

By Myles Mellor

Across 1. Classic 60s and 70s Chevy 5. Reddish brown 10. Toyota minivan 11. Escalade, e.g. 13. Toyota model 15. French carmaker 17. 60 minutes, for short 20. You might want to “open it up” 21. Suspension system part 23. Gas alternative 24. Headlight ray 26. It’s higher on the hwy. 29. Lawyer’s org. 30. Escape and Cherokee, for

October 3, 2016 • 15


measurement 6. Third in the family 7. African river 8. Honda sedan 9. Space in an SUV for example 12. Wheels’ partner 14. Car-engine stat 16. Midsize Kia 18. Directs a car 19. Tank like truck 22. Off white car color 23. Disney dwarf 25. Braking system 27. Alfa Romeo ____ 28. Got around 31. British-made car bought by BMW 32. AARP member, for short 35. Radiator topper








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36. Photo ___ 37. Wheel’s edge 38. ___ Diego, California 39. Thrilla in Manila boxer 40. Agent, briefly 42. Boston’s state



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Solution to this puzzle in the 10/03/16 issue. Call 1.800.794.0760 for a FREE subscription. Crossword 10_3_16.indd 1

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16 • October 3, 2016

USED CAR NEWS Advertisers are solely responsible for content of classified advertisements. To place an ad, or for more information, call the Classified Department: 800-794-0760 ext.107


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18 • October 3, 2016



Compiled by Jeffrey Bellant


BANK ON IT: Employees at KAR Auction Services look over some of the 29,000 food items they collected for Indiana’s Midwest Food Bank.

KAR Auction Services Inc. announced that its annual food drive at the company’s corporate office achieved record-breaking results with the donation of more than 29,000 food items and $1,067. The annual KAR food drive is the largest single-event food drive

for Midwest Food Bank in Indiana. The Indianapolis branch of the Midwest Food Bank benefited from these donations. “It is amazing to see all of our employees rally together for our annual ‘Battle of the Floors’ food drive, and it is incredible what

they are able to accomplish in just one week,” said Jim Hallett, KAR Auction Services chairman and CEO. “We are honored to support such a worthwhile cause – it is rewarding to know that our donation alone will provide a meal to more than 19,000 of our neighbors.” This is the company’s sixth annual “Battle of the Floors” food drive. It groups employees by floor in a friendly competition to collect money and food items. Midwest Food Bank strives to bridge the gap between poverty and prosperity in the communities by alleviating hunger and poverty by gathering and distributing food donations to not-for-profit and disaster sites. “Food collected here at KAR will help feed so many of our neighbors,” said John Whitaker, executive director of Midwest Food Bank.

NFL Hall of Fame

Chad Bailey, president of Akron Auto Auction, was honored by the Pro Football Hall of Fame Enshrinement Festival General Chairman Alumni Association during its annual dinner on Sept. 14. Dan Fuline, 2010 general chairman, presented the award to Bailey. Akron (Ohio) Auto Auction is a third-generation business that employs more than 240 people and offers a public and dealer sale. For many years, Bailey has supported the Enshrinement Festival by providing vehicles for transporting equipment, by sponsoring the 12th Man Float in The Canton Repository Grand Parade, and by personally encouraging other area entities to support the Enshrinement Festival through in-kind services. In accepting the award, Bailey noted the support of his family in contributing to any measure of success he has achieved.

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

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October 3, 2016 • 19

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20 • October 3, 2016


Special Advertising Section

Are Auto Loans Getting Riskier? David Meyer Executive Vice President Spireon, Inc.

Subprime Auto Loans. These three words are causing quite the stir lately. USA Today recently published an article, “Delinquencies rise on riskier auto loans,� featuring research from Fitch Ratings that states delinquencies of at least 60 days for subprime auto loans rose 13 percent month over month in July and are 17 percent higher than July of last year. These increases are not small jumps as CNBC noted in a recent article that the

total amount of auto loans now exceeds $1 trillion. However, this number is not solely due to individuals with subprime and deep subprime credit. Delinquencies among prime auto loan borrowers have also been on the rise, jumping to 21 percent higher than the previous summer. CNBC noted data from Fitch Ratings for the annualized net loss rate, or the subprime loan bundles that are considered likely to default, climbed to 7.39 percent in July, up 28 percent from the previous year. The latest numbers show a general increase from all sides, however many feel that this increase is not unexpected as lenders have loosened credit standards over the past couple years. The debate on the auto loan market is catching a lot of wind as some sides warn of risky business and potential downfalls while others remain unfazed. Fitch Ratings noted that used vehicle values are remaining strong and unemployment rates are low across

the country. However, Fitch also noted that later this year we could see a decline in the value of used passenger cars, would resulting in larger loans being taken for a new car to offset the diminished trade-in value. But what does this all mean for you as an auto dealer and lender? It means there’s a mammoth opportunity to set yourself apart from the pack and showcase yourself as a leader in a rough market. How? Be a best-in-class






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dealership. By best-in-class, it’s not merely about the best product or the latest technology. It’s about customer service. Your teams need to treat customers with respect and help them determine what is best for them. It’s no longer a selling game to convince the customer of their ‘needs.’ It’s about helping your customer make an informed decision by educating them on your inventory, financing

options and other valuable features so your customer knows they’ve made the right decision. Plus, you need to do all of this in an effective manner by having the right tools and resources to manage your lot inventory. Don’t let your business falter during tough times. Take control and get ahead.Â

Improve Your Customer Retention Rich or poor – customers like to change vehicles! On a standard retail car sale or even a buy-here, pay-here sale, once that customer leaves your lot, there’s no guarantee they will come back to your dealership to get their next car. They can go anywhere to trade that vehicle. Used car leasing solves that problem! The Lease’T’OwnŽ business model has proven to bring dealerships increased customer retention.

national average at that time. It wasn’t surprising that he received approximately 24% of the cars back on Lease’T’Own as well. The huge difference between the two models is that 80% of the cars he repo’d with buy-here, pay-here went directly to the auction. It wasn’t worth trying to fix them. Of the cars he took back with Lease’T’OwnŽ, none went to the auction. 55% of those customers who returned their Lease’T’OwnŽ vehicles came back to

With used car leasing, the dealer remains the titled owner of the Lease’T’OwnŽ car. The customer can’t go anywhere else but back to YOUR dealership if they want to change cars. Lease’T’OwnŽ dealers are trained on “rolling� customers from car to car and “rolling� cars from customer to customer! You can provide transportation for life to your customers! A large buy-here, pay-here dealer from Texas decided to try out Lease’T’OwnŽ. After being on the program for a few years, he reported some valuable statistics. His average repossession rate while doing buy-here, pay-here was 24% – the

the dealership for another car once they got on their feet financially. How is this possible? Because a key benefit of Lease’T’OwnŽ is the flexibility! Your customers know they can return the car at any time, for any reason, without penalty. They know they can come back at any time to get another car. Expectations are clearly explained at the time of the deal and the door for communication is left wide open. Doing Lease’T’OwnŽ and doing it right, will gain you customer’s for life! For more information, contact Northland at 800-879-3433 or

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e y E n A p e e K u Yo , s t fi o r P r u o Y n O e y E n A p e e K l l ’ We y r o t n e v n I r u o Y n O

Spireon is a proud member of the NIADA Diamond National Corporate Partner Program.

Partner with the industry’s leading GPS tracking provider and call 855-867-2684 or visit

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22 • October 3, 2016

Special Advertising Section


Credit Acceptance is Easier, Faster and More Profitable Since 1972, Credit Acceptance has offered automobile dealers financing programs to help them sell vehicles to consumers, regardless of their credit history. These programs are offered through a nationwide network of automobile dealers who benefit from selling vehicles to consumers who otherwise could not obtain financing. Credit Acceptance is unique in that enrolled dealers using the portfolio program share in the cash flows from the contract, which creates an alignment of interests and is a critical element of its success. One misconception of the Credit Acceptance program is that it only works for older model vehicles. In fact, it works well with nearly any vehicle; many low-mileage, late-model vehicles (as new as 2015) yield the greatest advances. And, its Credit Approval Processing System (CAPS®) enables dealers to easily structure profitable deals with payments customers can afford. As Credit Acceptance reports to the three national credit reporting agencies, an added benefit of the program is that consumers can

improve their credit with ontime payments and move on to traditional financing sources. It is now easier, faster and more profitable than ever to do business with Credit Acceptance. A significant benefit is eContracting, which enables customers to sign contract documents electronically. This eliminates the need to send contract packages via courier, saving dealers money and considerably reducing funding times. Many deals are funded the same day. Additionally, CAPS® interfaces with multiple vendors (including Dealertrack®) to help dealers easily get applications and leads into the system without duplicate entry. Credit Acceptance has also made enhancements to approval stipulations to streamline the funding process. A proven leader, Credit Acceptance paid dealers over $2,065,409,992 in advances and $202,678,019 in portfolio rofit in 2015 alone. Visit to find out how you can sell more cars and make more money.





The only finance company you can’t afford to live without! To learn how, call 800-873-0512 or visit


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Special Advertising Section

GPS Device Compliance: Think Consumer Privacy and Disclosure With all of the attention being paid to automotive finance by the CFPB and the FTC, it is more important than ever to ensure your business is staying compliant with regard to business and lending practices. The use of GPS tracking devices is no exception. PassTime, an industry leading provider of GPS and automated collection technology devices, is a founding member of the Telematics Solution Providers Association (TSPA). PassTime offers a single voice to promote the proper use of GPS, starter interrupts and aftermarket telematics technology. Consumer Privacy & Disclosure are two topics of interest for lawmakers.

GPS Usage: How Much is Too Much? To put it plainly, excessive locating of a consumer, especially when that consumer is not in default, may be considered a questionable intrusion into consumer privacy. If a device automatically locates every 5 minutes, is that excessive? It might be a nice device function for protecting your asset but ask yourself how it would look from a consumer privacy perspective. How/when/why are you tracking the consumer’s vehicle? Are you locating the vehicle for the purpose of repossession or just whenever you

feel like it? Without a company policy in place to protect your business, you could be walking a dangerous line. The key here is a balance between locating a vehicle because it’s necessary vs. a device locating a vehicle every 5 minutes just because the device is capable. Disclosure, Disclosure, Disclosure Disclosing a GPS system to the consumer has been a requirement from some device providers, like PassTime, for years. With RTC laws and Consumer acts, not disclosing the use of the device to a consumer could expose you to fines, lawsuits, or government action. Content of the disclosure is also critical. Governmental agencies are increasingly becoming interested in not only that a consumer is aware of the device, but also specifically how the device operates and how it will be used by the creditor. Think about your device provider. Is it navigating the political landscape of the industry & working with regulators on your behalf – or is it just selling you a device? With today’s changing climate choosing the right partner for your GPS devices is more important than ever.

October 3, 2016 • 23

Tax Season Success: 100% vs 17% Did you know that only 17% of customers will come back to your lot and make a purchase after their initial visit? How often do you hear, “I will come back when I have more money” or “I’m waiting on my tax refund check.” Problem solved! By implementing the Tax Max refund program you can use a portion of their tax refund check today and capture that sale. Now with the combination of TaxMax and one of our DMS partners, you can have your customer contractually obligated to use a portion of their tax refund check as a payment to you. The average tax refund check for a

buy-here, pay-here Tax Max customer in 2015 was over $5,311. Why send this customer off the lot knowing only 17% will come back. With Tax Max, you will be the first to get paid on every tax deal. Tax season is NOW! Capture 100% of your clients! Call Tax Max at 866-642-4107 for a FREE consultation or visit

Need a Tire or Four? Save With By Shilo Rea Have you ever acquired a car only to find out one or all of the tires need to be replaced? You never have to pay full price for new tires again. can match your brand and tread level for one, two, three or a whole set of tires at a fraction of new tire prices. “If you need one tire for one car or several different sizes and tread levels for multiple cars, we can help you – and we will save you a lot of money,” said Brad Rea, president. specializes in selling high quality, high tread, fully inspected and completely guaranteed used tires to new and used car dealerships and customers. See for yourself by browsing the inventory at www.champtires. com, and give Brad Rea a call at 412-759-8255 for special dealer pricing. Free shipping to your door is included.

We’re Tooting our Horn

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24 • October 3, 2016


Special Advertising Section

Five Ways to Save Money and Improve Cash Flow with the Right GPS Tracking System Auto loan delinquencies are on the rise. More than half of highrisk customer loans default, and the majority of those, within the first year. By installing the right GPS tracking system in the used vehicles you sell to subprime buyers, you can save money and dramatically improve your cash flow. Here are five strategies to boost your bottom line: 1. Eliminate renewal fees. The best money-saving deal you can get from a GPS vendor is to pay for the device once up front – and never get charged renewal or reactivation fees. Some GPS vendors waive the renewal fee for the first couple of years. But then they start charging you annual renewal fees after that. For example, you have a device that comes with two years of free service, but your customer finances their vehicle over three years. You would have to pay a

$15 annual renewal fee for the third year. After the loan is paid off, you remove the GPS device and install it in another used vehicle. If the buyer of that vehicle has a three year loan, that will cost you a reactivation fee and an additional two years of renewal fees. Combined with the fees from the first installation, that’s four years of $15 annual renewal charges, which comes to $60. Multiply that by 300 vehicles you need to keep activated, and you’re out of pocket $18,000. 2. Cut your repo costs in half. On average, repo agencies charge about half of their regular rate to repossess a vehicle with a GPS device. GPS devices save repo companies time and money because they provide the vehicle’s current position (street address, zip code, longitude and latitude), as opposed to a vehicle the repo agency has to track down based on owner and

vehicle information. 3. Reduce impoundment fees. Impoundment fees average hundreds of dollars at the outset, and then increase by $35 a day. If you have multiple vehicles in impoundment any given week, it can add up to thousands of dollars in charges which you will never recover. One solution is for your GPS devices to send you a tow alert when a vehicle is impounded. The alert should give you the street address of the impoundment yard where the vehicle was towed. You can then send someone to have the vehicle released the same day it was towed. 4. Make it difficult for customers to remove your GPS device. Most people are honest. But some aren’t. And a dishonest customer may be tempted to disable or remove the GPS device. Warning: Do not hide

the GPS device behind the radio, as many customers remove the radio to install a better sound system – and when they do, they’ll see the GPS. Solution: Have your mechanic install the GPS behind the speedometer – a part of the dashboard customers virtually never remove. Note: buy-here, pay-here dealers are subject to numerous state and federal regulations regarding the use of a GPS device, such as disclosure of the presence of a GPS device in the vehicle. 5. Buy a high quality GPS device. Some GPS devices are cheaper, and that may be appealing initially. But they are of lesser quality, and as a result, can operate only within a limited temperature range. For example, a GPS manufactured from industrial grade components typically has an operating range of -13 to +158 degrees Fahrenheit. So it works properly whether in the extreme

desert heat of Arizona or the subzero winters of Montana. The up-front purchase price of a top-of-the-line GPS device may be a little higher than an inferior model. But if the GPS vendor has eliminated all renewal and reactivation fees, the total cost of ownership of the superior equipment will actually be less than other systems. Want more strategies on boosting your cash flow? Request our FREE Special Report, 11 ways your GPS solution can improve your cash flow. Just visit www., or call IMETRIK toll-free today at 866-276-5382, ext. 5.


License Plate Accessories

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NADA Books

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KAP Fleet Warranties

Promotional Items

Key Boards

Snow Rakes

Key Tags

Windshield Stickers


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9/27/16 8:21 AM


NextGear IMETRIK GPS TRACKING SOLUTIONS When you invest in a GPS device from IMETRIK, pay for the device just once - and never get a renewal or reactivation bill from us. Our prices are competitive. And with IMETRIK, your savings can add up fast: GPS devices / year

Total estimated savings over 3 years

120 240 360 480 600

$8,640 $17,130 $25,920 $34,560 $43,200

Estimated renewal fee: $15

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Estimated re-use: 30%

To request our FREE Special Report, 11 ways your GPS devices can improve your cash flow, visit:

Yours FREE!

Find out how you could potentially save more money with IMETRIK: 1-866-276-5382 ext. 5.

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26 • October 3, 2016

Special Advertising Section

Capital, Great Service and Consistency The buy-here, pay-here market is constantly changing with the times. Market change is driven by many forces that run the gambit from local competition and changing legal regulations to overall fluctuations in the economy. How do buy-here, pay-here dealers achieve and maintain success through these changes? By being consistent, providing great service, and having a financial partner that can help with the inevitable capital requirements of a buy-here, pay-here dealer. CAR Financial has been providing great service to dealers for over 25 years! CAR understands that there is not a “one size fits all” solution in this industry. That’s why CAR has an entire suite of products built to offer capital to dealers in areas where they need it most. CAR Financial programs include: • Bulk purchasing of both retail or lease receivables. • Payment stream purchasing to meet any short term capital needs a dealer may have. • Payment sharing purchasing

that can give dealers an influx of immediate capital and ongoing stream of cash flow with future payment collections. • Floorplans for the buy-here, pay-here dealer to aid in inventory acquisition with NO Audit Fees! • Servicing of portfolios for dealers and finance companies • Back up servicing for banks and other financial institutions CAR Financial strives to understand the day to day business operations of every dealership. This gives CAR the unique opportunity to structure a program which will meet each dealer’s long term goals and objectives. With CAR Financial, dealers enjoy the consistency and convenience of a single point of contact in the area that makes it easier to work and communicate. CAR Financial operates in 45 states and continues to be a leader in the buy-here, pay-here marketplace. Please come by the CAR booth (#311) at the NABD Convention in Orlando, Florida. November 1st-3rd. For more information on CAR Financial Services’ programs and services go to www.carfinancial. com or call 1-877-570-8857.


Missed Payments: When GPS Is Not Enough While GPS is the newest, sexiest technology, it is not foolproof. Unfortunately, you can still lose cars with it. So what’s a dealer to do? First, understand that GPS is a “reactive” answer to the problem after things are already out of control. Now you have to say, “We’ve had enough. Go get the car.” Obviously, most dealers would rather get paid than go through a repo. Second, consider using a twopronged approach that adds a proactive component to the reactive GPS component. Add our PT2000 as a proactive behavior-modification device that encourages your customers to pay

as agreed. The PT2000 can be used as an “active decoy” (ask us). Mounted right there on the dashboard, it is a visible daily reminder to your customers that they must make their payment by the due date. Having a PT2000 is like having your own proactive collector in each and every car so that you can modify bad behavior before an account becomes delinquent. Contact PayTeck at 1-800-880-3081 or







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See why over 20,000+ dealers have selected NextGear Capital for floor planning needs!*


Inventory options that fit your needs Competitive interest rates Ease of doing business Knowledgeable local representatives

CONTACT US TODAY! 855.372.2329

*Certain conditions apply. All rights reserved. For complete details, terms and conditions, please see your local NextGear Capital representative. All advances are subject to the terms and conditions of any loan documents and any other agreement you have with NextGear Capital. NextGear Capital reserves the right to modify or terminate this offer, as well as NextGear Capital’s terms and programs, at any time. All advances made in California by NextGear Capital are made pursuant to NextGear Capital’s California Finance Lender License.

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9/26/16 4:59 PM


X marks

the spot Find cars. Buy cars. Sell cars.

A new auction choice opens 2016. © 2016 ADESA, INC.

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Used Car News 10/3/16  
Used Car News 10/3/16