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October 17, 2016

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NADA Chief Calls Possible Recall Policy a Tax

CHAIRMAN: NADA Chairman Jeff Carlson takes in the sights at this year’s convention. Carlson recently spoke in Detroit about a range of topics, including the government’s approach to recalls, financing and franchise laws.

By Ed Fitzgerald

Rush - Dated Material

NADA Chairman Jeff Carlson greeted a Detroit audience by saying that in order to keep cars affordable consumers must not feel they’re being taxed to death. “If Washington wanted to implement a policy that would add $600 to the cost of financing a new car, what would you call that?� Carlson asked members of the Automotive Press Association. “What about a policy that would take anywhere from $1,200 to $6,000 out of a customer’s pocket when they went to trade in a used vehicle in order to buy a new one?

“Do you think that customer feels like they just got taxed? You’re darn right they do.� Carlson said he objects to any federal policy “that would add thousands of dollars to every single new vehicle that every manufacturer makes, up and down their entire lineups, right out of the gate. “We’re trying to take the message to policymakers that whatever they need to do, they need to keep cars affordable,� he said. Carlson, a Ford and Subaru dealer in Colorado, offered an example. “You have a 2009 Toyota Corolla that you want to trade in. You get a good idea of what it’s worth, you go

to the dealership, and your dealer tells you: ‘This car has an open recall for an irregularity in the lubrication process for the power window master switch that may cause the switch assemblies to malfunction. Toyota hasn’t manufactured a fix yet, and we don’t know when it’s coming.’ And although both Toyota and (the government) have said this vehicle is fine for you or a future owner to continue driving while waiting for a fix, Washington told me that, in the meantime, I can’t resell or even wholesale it. “That’s going to knock off $1,044 from the value of your trade-in. Sounds like Washington just taxed

that customer $1,000, doesn’t it?� Carlson said the NADA doesn’t oppose all objectives proposed by Washington. “In fact, what NADA has said to leaders in Washington is this: We understand your goals, and we agree with many of your goals, but we cannot accomplish these goals on the backs of our customers.� Despite the obstacles created by recalls, Carlson said it’s important – for both the dealer and the customer – that those recalls be resolved. “We need the customer to learn that if recalls aren’t done then the trade-in value of their car goes down,� he said.

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4 • October 17, 2016

USED CAR NEWS

NEWS BRIEFS CarMax Adds Store

CarMax Inc. celebrated the grand opening of its new store in Maple Shade, N.J. The new store, located at 531 Route 38 West, marks the fourth CarMax location in the greater Philadelphia metropolitan area. The store will stock more than 300 used vehicles and has brought approximately 40 new jobs to the area. In celebration of the Maple Shade store opening, CarMax donated $5,000 to Hopeworks ‘N Camden. Maple Shade CarMax associates selected this nonprofit for its mission of working with youth in the community and helping students develop a plan for education and a brighter future. The CarMax Foundation is also providing a $10,000 grant to the Boys & Girls Club of Camden County. Funding from the grant will help support tutoring and wellness programs for more than 900 youth in the area. Support for this organization also came at the recommendation of Maple Shade associates.

and first in the state of Ohio. Columbus marks Carvana’s seventh new market launch over the past seven months and 16th market overall. Carvana also operates stores in: Atlanta, Austin, Birmingham, Charlotte, Dallas, Houston, Jacksonville, Miami, Nashville, Orlando, Raleigh, San Antonio, Tampa, Richmond and Washington, D.C.

Toyota Sets CPO Milestone

The Wenzel family of Fountain Valley, Calif., bought the five-millionth certified pre-owned Toyota this August. Their 2013 Toyota Highlander, sold by Toyota of Huntington Beach, pushed Toyota across the 5 million CPO sales milestone. The CPO program was launched in 1996. For a used Toyota vehicle to be certified, it must pass 160 inspection points including interior and exterior condition and appearance; engine performance; transmission and transaxle operation; braking, tire and suspension system wear; and electronic system operation. Carvana Moves into Midwest Vehicles sold with the TCUV Carvana announced its expansion designation come with a into Columbus, Ohio. This launch marks the company’s 12-month/12,000-mile comprehenfirst market in the Midwest region sive warranty, seven-year/100,000-

mile limited powertrain warranty and one year of Roadside Assistance. To celebrate the five million CPO milestone, Toyota covered the cost of the Wenzel family’s vehicle, totaling $29,180. The company also donated $10,000 to the family’s favorite charity, Family Promise of Orange County, a homeless shelter for families, plus an additional $5,000 to a charity selected by the dealer: the American Foundation for Suicide Prevention.

Wholesale Prices Come in Flat

Wholesale used vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) remained unchanged between August and September. The Manheim Used Vehicle Value Index stood at 126.9 for September, an increase of 1.7 percent from a year ago. All major car segments had yearover-year price declines in September. All major truck segments were up. The average price of a rental risk unit sold at auction in September reached a record high of just over $17,000. That record price was driven by lower mileage and a better mix of vehicles being sold in better condi-

tion. The index of rental risk pricing adjusted for mileage and broad market class shifts was down 1% for the month and year-over-year. At 37,100 miles, the average mileage of rental risk units sold at auctions was the lowest since November 2013.

Manheim Expands Image Offerings

Manheim has nearly tripled the availability of Enhanced Vehicle Imaging (EVI), expanding from 25 to 74 auction locations throughout North America. EVI provides a consistent set of quality high-resolution images that showcase vehicles in an optimal way. Using programmable cameras and software, certified photography staff shoots the images after vehicles have been reconditioned. They display one car at a time and include a consistent set of views.

PAGE 18

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 www.usedcarnews.com Charles M. Thomas - Founder (1947-2002) Lynda R. Thomas, Publisher Colleen Fitzgerald, General Manager

EVERY SALE IN OCTOBER – JOIN US FOR A CHANCE TO

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Columnist: Tony Moorby

Editorial: Ted Craig, Managing Editor Jeffrey Bellant, Staff Writer

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Contributing Writers: Ed Fitzgerald, Jenny King, Sheila McGrath Advertising: Shannon Colby, Account Manager Marie Hingst, Account Manager

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. SM

Production: Tom Savage, Production Manager Cee Lippens, Web Master & Graphic Designer

Vol. 22 • No. 14 Used Car News is published the first and third Monday of each month.

BUY ONLINE | All Lanes Available SELL ONLINE | Via These Industry Platforms:

Circulation: Helen Thomas

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! www.southeasternaa.com | 1712 Dean Forest Rd | Savannah GA | 912-985-9909

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Visit Used Car News online at www.usedcarnews.com or scan this QR code with your smartphone to be taken directly to the website.

10/10/16 4:49 PM


USED CAR NEWS

October 17, 2016 • 3

Non-Drivers Most Comfortable with Driverless Cars New research from Kelley Blue Book shows that Americans are most comfortable with the vehicles currently on the road, believing that they are significantly safer than models with a higher level of autonomy. According to the 2016 Kelley Blue Book Future Autonomous Vehicle Driver Study, consumers are torn between the need for safety and the desire for control, with 51 percent of respondents replying that they prefer to have full control of their vehicle, even if it’s not as safe for other drivers, while 49 percent prefer to have a safer roadway for all, even if that means they have less control over their own vehicle. “The industry is talking a lot about self-driving vehicles these days, with multiple automakers and ride share companies throwing their hats in the competition to build and release the first fully autonomous vehicle to consumers,” said Karl Brauer, senior analyst for Kelley Blue Book. “Much is still unknown about fully au-

tonomous vehicles, including how they would react in emergency situations, but the lower-level options are gaining steam. “For tentative buyers, first-hand experience like test drives, short-term leasing or daily rentals will be crucial when making future purchasing decisions. Automakers will need to address hesitant drivers in order to be successful.” According to the survey, awareness of the higher levels of vehicle autonomy is limited, with six out of 10 respondents admitting that they know little or nothing about autonomous vehicles. For half of the survey respondents, the perception of safety and personal comfort with autonomous technology diminished as the level of autonomy increased. When survey respondents were asked to make a choice between the different levels, Level 4 autonomy hits the “sweet spot” by providing all the benefits of full vehicle autonomy without stripping away the option of driver

control. This isn’t surprising, considering 80 percent of respondents believe that people should always have the option to drive themselves, and 64 percent prefer to be in control of their vehicles. In fact, most consumers (62 percent) do not think they will live to see a world where all vehicles are fully autonomous. However, not all Americans are hesitant about the

technological future of their automobiles. Respondents in the tech-savvy pre-driving Gen Z (12-15 years old) age range are ready to get on board with autonomy and consider themselves the most educated about autonomous vehicles. The majority (67 percent) of predriving Gen Z respondents believe they will see fully autonomous vehicles in their lifetime. Forty-three percent of pre-

driving Gen Z respondents report that they know a lot about autonomous vehicles compared to only 1 percent of Baby Boomers (51-64 years old). Pre-driving Gen Z are the most comfortable (73 percent) and feel the safest (79 percent) among all age groups with fully autonomous vehicles. Older Millennials (25-34 years old) are not far behind, at 44 percent and 61 percent, respectively.

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10 • October 17, 2016

USED CAR NEWS

Dealer Must Create Culture of Compliance By Ted Craig

There should be no questions among buy-here, payhere dealers about whether life under the Consumer Financial Protection Bureau is different from how it was before the agency’s creation. If any attendees at the recent DealerSocket User Conference had lingering doubts, attorneys Tom Hudson and Eric Johnson cleared them up with their presentations.

Before the CFPB, it was enough to not violate the law. Now, dealers have to prove they took steps to prevent any violations. Small dealers face the greatest challenge in this new environment. A one-store operation and a large chain such as America’s Car-Mart are under the same regulations. But the large chain has legal resources the single-store dealer lacks. The CFPB’s action against a small buy-here, pay-here

dealer called Herbies drove this point home. “The lesson of Herbies is that there is no such thing as a dealership that’s too small,” Hudson said. Herbies is a stand-alone dealership in Greeley, Colo. In January, the CFPB took action against the store for what it claimed were abusive financing schemes, hidden auto finance charges and misleading promotions. Herbies had to pay $700,000 in restitution to harmed consumers, with a

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suspended civil penalty of $100,000. Johnson said dealers should expect a fine that large if they run afoul of the regulator. The CFPB wants to make it too expensive not to comply, he said. Some of the claims against Herbies were typical of practices that can land dealers in trouble, such as charging for payment assurance devices. Others were pushing into new territory, Johnson said. The biggest issue in this area was calling the difference between the price of a car paid for in cash and the price of one financed a hidden charge. Johnson said Herbies made very few cash sales, but those proved enough to create an abusive practice in the eyes of the CFPB. Some dealers at the conference expressed confusion over the CFPB’s authority and why they would go after a small dealer when they are supposed to focus on “larger participants,” such as Car-Mart and DriveTime. The CFPB has the power to create rules for larger participants in the buyhere, pay-here business, but it has enforcement authority for the entire segment. Johnson said sometimes

the CFPB uses this enforcement authority because it is faster than writing rules. The Herbies case has now created precedent in several areas, including discounts to cash customers and posting prices. Hudson said the most important goal for dealers is to create a “culture of compliance.” The CFPB expects a written “compliance management system,” meaning written procedures for following the rules. The regulators will be willing to accept a scaled down version, but dealers must take basic steps. They need to read their retail installment contracts, for example. They also need to become familiar with the state and federal laws that impact their business. Hudson said dealers must invest resources in this compliance culture, including paying for training. A dealer would never think of hiring an untrained person to work in the service department. Hiring salespeople without any compliance training, however, is common practice. “You’re in one of the most highly regulated industries and you’re throwing people into sales with no training whatsoever,” Hudson said.

FTC Makes ‘Yo-Yo’ Claims

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The Federal Trade Commission has charged nine Los Angeles-area auto dealerships and their owners with using a wide range of deceptive and unfair sales and financing practices. This is the FTC’s first action against an auto dealer for “yo-yo” financing tactics: using deception or other unlawful pressure tactics to coerce consumers, who have signed contracts and driven off the dealership’s lot, into accepting a different deal. The FTC also alleges that the defendants packed extra, unauthorized charges for “add-ons,” or aftermarket products and services, into car deals financed by consumers. According to the FTC’s complaint, the defendants entice consumers, particularly financially distressed and non-English speaking consumers, into their deal-

erships with print, internet, radio and television ads that make an array of misleading claims, including that vehicles are generally available for the advertised terms and that consumers can buy vehicles for low prices, finance with low monthly payments, or make low down payments. Other allegedly misleading claims include that consumers can finance the purchase of vehicles – when in fact they are lease offers – and that the defendants will pay off consumers’ trade-in vehicles, despite the fact that consumers ultimately are responsible for paying off any amount owed on the trade-in. The FTC also alleges that the defendants use phony online reviews to tout their dealerships and discredit negative reviews that highlighted their unlawful practices.

10/10/16 4:52 PM


4 • October 17, 2016

USED CAR NEWS

NEWS BRIEFS CarMax Adds Store

CarMax Inc. celebrated the grand opening of its new store in Maple Shade, N.J. The new store, located at 531 Route 38 West, marks the fourth CarMax location in the greater Philadelphia metropolitan area. The store will stock more than 300 used vehicles and has brought approximately 40 new jobs to the area. In celebration of the Maple Shade store opening, CarMax donated $5,000 to Hopeworks ‘N Camden. Maple Shade CarMax associates selected this nonprofit for its mission of working with youth in the community and helping students develop a plan for education and a brighter future. The CarMax Foundation is also providing a $10,000 grant to the Boys & Girls Club of Camden County. Funding from the grant will help support tutoring and wellness programs for more than 900 youth in the area. Support for this organization also came at the recommendation of Maple Shade associates.

and first in the state of Ohio. Columbus marks Carvana’s seventh new market launch over the past seven months and 16th market overall. Carvana also operates stores in: Atlanta, Austin, Birmingham, Charlotte, Dallas, Houston, Jacksonville, Miami, Nashville, Orlando, Raleigh, San Antonio, Tampa, Richmond and Washington, D.C.

Toyota Sets CPO Milestone

The Wenzel family of Fountain Valley, Calif., bought the five-millionth certified pre-owned Toyota this August. Their 2013 Toyota Highlander, sold by Toyota of Huntington Beach, pushed Toyota across the 5 million CPO sales milestone. The CPO program was launched in 1996. For a used Toyota vehicle to be certified, it must pass 160 inspection points including interior and exterior condition and appearance; engine performance; transmission and transaxle operation; braking, tire and suspension system wear; and electronic system operation. Carvana Moves into Midwest Vehicles sold with the TCUV Carvana announced its expansion designation come with a into Columbus, Ohio. This launch marks the company’s 12-month/12,000-mile comprehenfirst market in the Midwest region sive warranty, seven-year/100,000-

mile limited powertrain warranty and one year of Roadside Assistance. To celebrate the five million CPO milestone, Toyota covered the cost of the Wenzel family’s vehicle, totaling $29,180. The company also donated $10,000 to the family’s favorite charity, Family Promise of Orange County, a homeless shelter for families, plus an additional $5,000 to a charity selected by the dealer: the American Foundation for Suicide Prevention.

Wholesale Prices Come in Flat

Wholesale used vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) remained unchanged between August and September. The Manheim Used Vehicle Value Index stood at 126.9 for September, an increase of 1.7 percent from a year ago. All major car segments had yearover-year price declines in September. All major truck segments were up. The average price of a rental risk unit sold at auction in September reached a record high of just over $17,000. That record price was driven by lower mileage and a better mix of vehicles being sold in better condi-

tion. The index of rental risk pricing adjusted for mileage and broad market class shifts was down 1% for the month and year-over-year. At 37,100 miles, the average mileage of rental risk units sold at auctions was the lowest since November 2013.

Manheim Expands Image Offerings

Manheim has nearly tripled the availability of Enhanced Vehicle Imaging (EVI), expanding from 25 to 74 auction locations throughout North America. EVI provides a consistent set of quality high-resolution images that showcase vehicles in an optimal way. Using programmable cameras and software, certified photography staff shoots the images after vehicles have been reconditioned. They display one car at a time and include a consistent set of views.

PAGE 18

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 www.usedcarnews.com Charles M. Thomas - Founder (1947-2002) Lynda R. Thomas, Publisher Colleen Fitzgerald, General Manager

EVERY SALE IN OCTOBER – JOIN US FOR A CHANCE TO

Throw a Touchdown Pass & WIN CASH!

Columnist: Tony Moorby

Editorial: Ted Craig, Managing Editor Jeffrey Bellant, Staff Writer

Wednesday October 19th

SOUTHEAST BUY & SELL FOR A CHANCE TO WIN TICKETS TO ATLANTA FALCONS -OR- CAROLINA PANTHERS AUTO AUCTION OFFERING VEHICLES FROM THESE GREAT INSTITUTIONAL ACCOUNTS & MORE!

Contributing Writers: Ed Fitzgerald, Jenny King, Sheila McGrath Advertising: Shannon Colby, Account Manager Marie Hingst, Account Manager

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. SM

Production: Tom Savage, Production Manager Cee Lippens, Web Master & Graphic Designer

Vol. 22 • No. 14 Used Car News is published the first and third Monday of each month.

BUY ONLINE | All Lanes Available SELL ONLINE | Via These Industry Platforms:

Circulation: Helen Thomas

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! www.southeasternaa.com | 1712 Dean Forest Rd | Savannah GA | 912-985-9909

04_UCN.indd 1

Visit Used Car News online at www.usedcarnews.com or scan this QR code with your smartphone to be taken directly to the website.

10/10/16 4:49 PM


USED CAR NEWS

October 17, 2016 •5

Repair Requires Rebuild

By Ed Fitzgerald

If a tree falls on a dealership, will the city let it rebuild? Randy Jeffers, manager of Jeff’s Auto Sales in Denison, Texas, has been working out of a temporary office since a tree crashed onto their building and destroyed it in a summer storm. But due to changes in the city’s zoning rules, the business can’t rebuild without first getting the city’s OK. Jeffers said the storm on July 9 did significant damage across the city of Denison, and “came out of nowhere.” “The radio kept saying it was going to be 100 degrees and sunny all day,” he said. “There were bad straight-line winds – it was just a really bad storm.” Three people were in the office when the tree landed on the building, but no one was injured. “We were all standing pretty close to the door,” Jeffers said. Jeff’s Auto Sales has been in business at 1316 S. Armstrong in Denison since 1978, and typically keeps between 60 and 90 vehicles in its inventory. After the storm, Jeffers said they rented a mobile office like the ones used on construction sites, and in-

stalled computers and phones. Insurance covered the damage, he said. The dealership was getting ready to put up a 1,200-square-foot building to replace the old one. But first, the business needs to get permission from Denison’s zoning office. Since 2009, the city has been requiring auto dealers to get a conditional use permit to operate in a commercial district. The business had previously been grandfathered into compliance, but since they’re putting up a new building, the property will have to conform to current zoning standards. Also, a portion of the lot had to be rezoned from two-family residential to commercial use. The business now will need to put up a screening fence on two sides of the property that face a residential area. Jeffers’ application still must go before the City Council for final approval, but the permits were unanimously approved at the Planning and Zoning Commission, where members said the new building would be an improvement over the old one. “It’s just a formality,” Jeffers said. “We’ve been here since 1978, so they don’t want us going anywhere.”

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6 • October 17, 2016

USED CAR NEWS

Regulators Look at Collections By Ted Craig

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The Consumer Financial Protection Bureau continues to work on new rules for debt collections and buy-here, pay-here dealers need to pay attention to this process. Shaun Petersen, executive vice president of legal affairs for the National Independent Automobile Dealers Association, told attendees at the recent DealerSocket Users Summit that the current rules being developed are aimed at third-party debt collectors. But rules concerning collections by the initial creditor are coming. The current law concerning debt collection, the Fair Debt Collection Practices Act, took effect in 1977 and has changed little since then. Now the CFPB is working on creating new rules for debt collections. The process started earlier this year and Petersen said it could be another year before the rules are finalized. The CFPB’s biggest concern is the legitimacy of the debt, Petersen said. Debt collectors will have to show a chain of ownership for the debt from the initial creditor to them. Under the proposed rules, all collections will have to cease if the debtor disputes the collector’s

claims. The dispute is any challenge: written or oral. Another key issue is communication between the collector and the debtor. The CFPB wants to make sure the debtor is fully aware of the collections process. Petersen said this often means giving the debtor the ability to fight the collection. For example, the collectors will have to disclose to the debtors if they intend to sue and what that means. While the CFPB might want more communication between collectors and debtors, it doesn’t want too much. The rules under consideration include limits on how often collectors can contact debtors, limiting it to a half dozen attempts by various means. All these rules apply to third-party debt collectors, not the original creditors. However, Petersen said the CFPB would pursue first-party creditors if they engage in what the bureau considers an abusive practice. For example, it took action against a title pawn firm called TMX Finance that attempted to collect on its own debts by sending collectors to the debtors’ homes and workplaces.

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8 • October 17, 2016

USED CAR NEWS

MY BEST ADVICE BEST ADVICE COMES FROM MANY DIFFERENT SOURCES Good advice comes from many sources, from parents to other business owners, even the DMV. Chris Martin, president of E-Z Auto, in Fayetteville, N.C., has been in the business since 1995. His dad, Buddy, was the mechanic and partner of driver Ronnie Sox in the famous Sox & Martin drag racing team and started the dealership nearly 25 years ago. His father gave lessons on frugality early on. “To him, if you can’t afford to pay cash for it, you can’t afford it,” Martin said. “He didn’t go out and buy a bunch of toys or live an extravagant lifestyle.” But even in the case of the car business, it was also important to put money back into the business. “That’s something he’s always done, to keep rolling money back into the business,” said Martin, who is a past president of the National Independent Automobile

Dealers Association. Martin, a former banker, said his work at Wachovia prior to getting in the car business also taught him similar lessons about saving and investing early in life. The experience also gave him a better understanding of the bank’s view when he got into the car business. He learned about handling agreements, managing customers and best practices

regarding lending relationships. “That experience has played a big role in what we’ve been able to accomplish here,” said Martin, who is also a certified master dealer. He said not all dealers understand that the bank is more than a simple lender. If they’re loaning you a large percentage of the value of your business, Martin said,

then it is a partner in the business. When Martin was a banker, few customers viewed the relationship this way, but he appreciated those that did. “My experience as a banker made it easy for me as a dealer to understand their needs,” he said. “It wasn’t that they were picking on me. They needed it to protect their investment.”

So one piece of advice for dealers is to understand the relationship with the bank is a partnership, and treat your banking representative that way. Sandra Moss, of Moss Motor Co. in Dillwyn, Va., credited the Department of Motor Vehicles for helping her and her husband Bill’s business. “I would have to say that the best advice I ever received was from our DMV representative the week we went into business 32 years ago,” Moss said. “He advised us to join the Virginia association which we did immediately. “Because we took that advice, we have consistently received good information and also  advice from fellow dealers.  Most of the improvements made at our dealership over the years have come from these connections.” Moss went on to earn the designation of certified master dealer and currently serves as secretary/treasurer of the NIADA Services Board. Fellow CMD Lou Tedeschi, president of ASPI Motor Cars in Deadham, Mass., offered the following nuggets. “Don’t worry about what everyone else is doing, worry about yourself,” he said. “Surround yourself with successful people and pay attention.” He added some traditional advice that he also uses at home.

“Treat other people the way you want to be treated,” he said. “This is one that I tell my kids.” Bob McConkey of McConkey Auction Group said the best advice he has is not to overreact to the market. “When business is bad it will get better,” he said. “When business is good it will get worse. “When it’s bad don’t panic, when it’s good don’t take too much credit.” He said businesses should not overlook the desires of their customers and encourage that mentality among employees. “Examine your customers needs and priorities through their perspective, not your own,” McConkey said, “and value your employees above everything and they, in turn, will value the customer.” Former president of the National Independent Automobile Dealers Association Keith Hagler operates several buy-here, pay-here dealer-

ships around his hometown of Taylor, Texas. He’s been in the business for more than 30 years and he said he’s received all kinds of advice during that time. But the best advice was to make sure that “you’re the one who turns on the lights in the morning and you’re the one who turns off the lights at night.” Hagler does neither these days, as he is busy with different business ventures, including a ranch, and two teen-age daughters, but he still embraces the spirit of the advice. “I take that as, ‘Watch your business closely,’” Hagler said. The best advice he received specifically for the buy-here, pay-here business came from Chuck Bonanno, a consultant who currently works for the NIADA. That advice was that buy-here, pay-here is about sales rather than collections.

NEXT ISSUE: NAAA CONVENTION 08_UCN.indd 1

10/10/16 4:41 PM


Your source for quality, selection and value: Chase. A broad selection of pre-owned vehicles from an industry leader. November 2016 Chase High Lines, featuring Jaguar Land Rover Financial Group

Chase

Manheim Milwaukee November 16 262-835-4436

ADESA Boston November 4, 18 508-626-7000

ADESA Tulsa November 11 918-437-9044

Manheim New Orleans November 2, 30 985-643-2061

ADESA Boston November 18 508-626-7000

ADESA Brasher’s November 1, 29 916-991-5555

ADESA Washington DC November 16 703-996-1100

Manheim Orlando

ADESA Golden Gate Manheim Nashville November 8 November 16 209-839-8000 877-386-5004

ADESA Charlotte November 10 704-587-7653

Columbus Fair AA November 2, 23, 30 614-497-2000

ADESA Chicago November 18 847-551-2151

Manheim Atlanta November 9, 10 404-762-9211

ADESA Cincinnati/Dayton November 22 937-746-4000

Manheim Dallas November 2, 16, 23, 30 877-860-1651

ADESA Golden Gate November 8, 22 209-839-8000

Manheim Denver November 16 800-822-1177

ADESA Houston November 9, 23 281-580-1800

Manheim Detroit November 10, 22 734-654-7100

ADESA Indianapolis November 8, 22 800-925-1210

Manheim Fredericksburg November 3, 17 540-368-3400

ADESA Kansas City November 8, 22 816-525-1100

Manheim Milwaukee November 2, 16, 30 262-835-4436

ADESA Lexington November 3 859-263-5163

Manheim Minneapolis November 9 763-425-7653

ADESA New Jersey November 10 908-725-2200

Manheim Nashville November 1, 2, 16, 29, 30 877-386-5004

ADESA Salt Lake November 1, 29 801-322-1234

November 1, 8, 15, 16, 22, 29

Manheim Riverside November 17 909-689-6000

800-337-8491 Manheim Pennsylvania November 10, 11, 22 800-777-2053 Manheim Phoenix November 3, 10, 17, 22 623-907-7000 Manheim Pittsburgh November 16 724-452-5555 Manheim Riverside November 15, 17 909-689-6000

Manheim Atlanta November 9 404-762-9211

Manheim Orlando November 16 800-337-8491

Manheim Dallas November 2 877-860-1651

Manheim Pennsylvania November 10 800-777-2053

Mazda Capital Services ADESA Boston November 4, 18 508-626-7000

Manheim Detroit November 10 734-654-7100

ADESA Golden Gate November 22 209-839-8000

Manheim Southern California November 10 909-822-2261

Manheim Fredericksburg Manheim Pennsylvania November 3 November 11 540-368-3400 800-777-2053

ADESA Houston November 9 281-580-1800

Manheim Milwaukee November 2, 30 262-835-4436

Manheim Pittsburgh November 16 724-452-5555

Manheim Tampa November 10 800-622-7292

Columbus Fair AA November 2, 30 614-497-2000

Manheim Nashville November 2, 30 877-386-5004

Manheim Riverside November 15 909-689-6000

Southern AA November 16 860-292-7500

Manheim Atlanta November 10 404-762-9211

Manheim New Jersey November 2, 16, 30 609-298-3400

Manheim Seattle November 9 206-762-1600

Manheim Seattle November 9 206-762-1600

Manheim New Jersey November 2, 16, 30 609-298-3400

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

Manheim Orlando November 22 800-337-8491

Subaru Motors Finance ADESA Boston November 4 508-626-7000

Manheim Fredericksburg Manheim Pittsburgh November 17 November 16 540-368-3400 724-452-5555

ADESA Salt Lake November 1, 29 801-322-1234

Manheim Milwaukee November 16 262-835-4436

Manheim Seattle November 9 206-762-1600

Columbus Fair AA November 23 614-497-2000

Manheim New Jersey November 2, 30 609-298-3400

Manheim Southern CA November 10 909-822-2261

Manheim Dallas November 2, 30 877-860-1651

Manheim Orlando November 15 800-337-8491

Southern AA November 16 860-292-7500

Manheim Detroit November 22 734-654-7100

Manheim Pennsylvania November 11 800-777-2053

*The tradename “Subaru Motors Finance” and the Subaru logo are owned / licensed by Subaru of America, Inc. and are licensed to JPMorgan Chase Bank, N.A. (“Chase”). Retail/ Loan and lease accounts are owned by Chase. *The Jaguar word mark, the Jaguar logo, and Jaguar Financial Group are trademarks of Jaguar Land Rover Limited and any use by Chase is under license. The Land Rover word mark, the Land Rover and Oval logo, and Land Rover Financial Group are trademarks of Jaguar Land Rover Limited and any use by Chase is under license. Retail / Loan and lease accounts are owned by Chase. *The tradename "Mazda Capital Services" as well as the Mazda and Mazda Capital Services logos are owned by Mazda Motor Corporation or its affiliates and are licensed to Chase. Retail / Loan and lease accounts are owned by Chase. ©2016 JPMorgan Chase Bank, N.A. Member FDIC (16-037) 11/16

09_UCN.indd 1

10/10/16 11:38 AM


8 • October 17, 2016

USED CAR NEWS

MY BEST ADVICE BEST ADVICE COMES FROM MANY DIFFERENT SOURCES Good advice comes from many sources, from parents to other business owners, even the DMV. Chris Martin, president of E-Z Auto, in Fayetteville, N.C., has been in the business since 1995. His dad, Buddy, was the mechanic and partner of driver Ronnie Sox in the famous Sox & Martin drag racing team and started the dealership nearly 25 years ago. His father gave lessons on frugality early on. “To him, if you can’t afford to pay cash for it, you can’t afford it,” Martin said. “He didn’t go out and buy a bunch of toys or live an extravagant lifestyle.” But even in the case of the car business, it was also important to put money back into the business. “That’s something he’s always done, to keep rolling money back into the business,” said Martin, who is a past president of the National Independent Automobile

Dealers Association. Martin, a former banker, said his work at Wachovia prior to getting in the car business also taught him similar lessons about saving and investing early in life. The experience also gave him a better understanding of the bank’s view when he got into the car business. He learned about handling agreements, managing customers and best practices

regarding lending relationships. “That experience has played a big role in what we’ve been able to accomplish here,” said Martin, who is also a certified master dealer. He said not all dealers understand that the bank is more than a simple lender. If they’re loaning you a large percentage of the value of your business, Martin said,

then it is a partner in the business. When Martin was a banker, few customers viewed the relationship this way, but he appreciated those that did. “My experience as a banker made it easy for me as a dealer to understand their needs,” he said. “It wasn’t that they were picking on me. They needed it to protect their investment.”

So one piece of advice for dealers is to understand the relationship with the bank is a partnership, and treat your banking representative that way. Sandra Moss, of Moss Motor Co. in Dillwyn, Va., credited the Department of Motor Vehicles for helping her and her husband Bill’s business. “I would have to say that the best advice I ever received was from our DMV representative the week we went into business 32 years ago,” Moss said. “He advised us to join the Virginia association which we did immediately. “Because we took that advice, we have consistently received good information and also  advice from fellow dealers.  Most of the improvements made at our dealership over the years have come from these connections.” Moss went on to earn the designation of certified master dealer and currently serves as secretary/treasurer of the NIADA Services Board. Fellow CMD Lou Tedeschi, president of ASPI Motor Cars in Deadham, Mass., offered the following nuggets. “Don’t worry about what everyone else is doing, worry about yourself,” he said. “Surround yourself with successful people and pay attention.” He added some traditional advice that he also uses at home.

“Treat other people the way you want to be treated,” he said. “This is one that I tell my kids.” Bob McConkey of McConkey Auction Group said the best advice he has is not to overreact to the market. “When business is bad it will get better,” he said. “When business is good it will get worse. “When it’s bad don’t panic, when it’s good don’t take too much credit.” He said businesses should not overlook the desires of their customers and encourage that mentality among employees. “Examine your customers needs and priorities through their perspective, not your own,” McConkey said, “and value your employees above everything and they, in turn, will value the customer.” Former president of the National Independent Automobile Dealers Association Keith Hagler operates several buy-here, pay-here dealer-

ships around his hometown of Taylor, Texas. He’s been in the business for more than 30 years and he said he’s received all kinds of advice during that time. But the best advice was to make sure that “you’re the one who turns on the lights in the morning and you’re the one who turns off the lights at night.” Hagler does neither these days, as he is busy with different business ventures, including a ranch, and two teen-age daughters, but he still embraces the spirit of the advice. “I take that as, ‘Watch your business closely,’” Hagler said. The best advice he received specifically for the buy-here, pay-here business came from Chuck Bonanno, a consultant who currently works for the NIADA. That advice was that buy-here, pay-here is about sales rather than collections.

NEXT ISSUE: NAAA CONVENTION 08_UCN.indd 1

10/10/16 4:41 PM


8 • October 17, 2016

USED CAR NEWS

MY BEST ADVICE BEST ADVICE COMES FROM MANY DIFFERENT SOURCES Good advice comes from many sources, from parents to other business owners, even the DMV. Chris Martin, president of E-Z Auto, in Fayetteville, N.C., has been in the business since 1995. His dad, Buddy, was the mechanic and partner of driver Ronnie Sox in the famous Sox & Martin drag racing team and started the dealership nearly 25 years ago. His father gave lessons on frugality early on. “To him, if you can’t afford to pay cash for it, you can’t afford it,” Martin said. “He didn’t go out and buy a bunch of toys or live an extravagant lifestyle.” But even in the case of the car business, it was also important to put money back into the business. “That’s something he’s always done, to keep rolling money back into the business,” said Martin, who is a past president of the National Independent Automobile

Dealers Association. Martin, a former banker, said his work at Wachovia prior to getting in the car business also taught him similar lessons about saving and investing early in life. The experience also gave him a better understanding of the bank’s view when he got into the car business. He learned about handling agreements, managing customers and best practices

regarding lending relationships. “That experience has played a big role in what we’ve been able to accomplish here,” said Martin, who is also a certified master dealer. He said not all dealers understand that the bank is more than a simple lender. If they’re loaning you a large percentage of the value of your business, Martin said,

then it is a partner in the business. When Martin was a banker, few customers viewed the relationship this way, but he appreciated those that did. “My experience as a banker made it easy for me as a dealer to understand their needs,” he said. “It wasn’t that they were picking on me. They needed it to protect their investment.”

So one piece of advice for dealers is to understand the relationship with the bank is a partnership, and treat your banking representative that way. Sandra Moss, of Moss Motor Co. in Dillwyn, Va., credited the Department of Motor Vehicles for helping her and her husband Bill’s business. “I would have to say that the best advice I ever received was from our DMV representative the week we went into business 32 years ago,” Moss said. “He advised us to join the Virginia association which we did immediately. “Because we took that advice, we have consistently received good information and also  advice from fellow dealers.  Most of the improvements made at our dealership over the years have come from these connections.” Moss went on to earn the designation of certified master dealer and currently serves as secretary/treasurer of the NIADA Services Board. Fellow CMD Lou Tedeschi, president of ASPI Motor Cars in Deadham, Mass., offered the following nuggets. “Don’t worry about what everyone else is doing, worry about yourself,” he said. “Surround yourself with successful people and pay attention.” He added some traditional advice that he also uses at home.

“Treat other people the way you want to be treated,” he said. “This is one that I tell my kids.” Bob McConkey of McConkey Auction Group said the best advice he has is not to overreact to the market. “When business is bad it will get better,” he said. “When business is good it will get worse. “When it’s bad don’t panic, when it’s good don’t take too much credit.” He said businesses should not overlook the desires of their customers and encourage that mentality among employees. “Examine your customers needs and priorities through their perspective, not your own,” McConkey said, “and value your employees above everything and they, in turn, will value the customer.” Former president of the National Independent Automobile Dealers Association Keith Hagler operates several buy-here, pay-here dealer-

ships around his hometown of Taylor, Texas. He’s been in the business for more than 30 years and he said he’s received all kinds of advice during that time. But the best advice was to make sure that “you’re the one who turns on the lights in the morning and you’re the one who turns off the lights at night.” Hagler does neither these days, as he is busy with different business ventures, including a ranch, and two teen-age daughters, but he still embraces the spirit of the advice. “I take that as, ‘Watch your business closely,’” Hagler said. The best advice he received specifically for the buy-here, pay-here business came from Chuck Bonanno, a consultant who currently works for the NIADA. That advice was that buy-here, pay-here is about sales rather than collections.

NEXT ISSUE: NAAA CONVENTION 08_UCN.indd 1

10/10/16 4:41 PM


Your source for quality, selection and value: Chase. A broad selection of pre-owned vehicles from an industry leader. November 2016 Chase High Lines, featuring Jaguar Land Rover Financial Group

Chase

Manheim Milwaukee November 16 262-835-4436

ADESA Boston November 4, 18 508-626-7000

ADESA Tulsa November 11 918-437-9044

Manheim New Orleans November 2, 30 985-643-2061

ADESA Boston November 18 508-626-7000

ADESA Brasher’s November 1, 29 916-991-5555

ADESA Washington DC November 16 703-996-1100

Manheim Orlando

ADESA Golden Gate Manheim Nashville November 8 November 16 209-839-8000 877-386-5004

ADESA Charlotte November 10 704-587-7653

Columbus Fair AA November 2, 23, 30 614-497-2000

ADESA Chicago November 18 847-551-2151

Manheim Atlanta November 9, 10 404-762-9211

ADESA Cincinnati/Dayton November 22 937-746-4000

Manheim Dallas November 2, 16, 23, 30 877-860-1651

ADESA Golden Gate November 8, 22 209-839-8000

Manheim Denver November 16 800-822-1177

ADESA Houston November 9, 23 281-580-1800

Manheim Detroit November 10, 22 734-654-7100

ADESA Indianapolis November 8, 22 800-925-1210

Manheim Fredericksburg November 3, 17 540-368-3400

ADESA Kansas City November 8, 22 816-525-1100

Manheim Milwaukee November 2, 16, 30 262-835-4436

ADESA Lexington November 3 859-263-5163

Manheim Minneapolis November 9 763-425-7653

ADESA New Jersey November 10 908-725-2200

Manheim Nashville November 1, 2, 16, 29, 30 877-386-5004

ADESA Salt Lake November 1, 29 801-322-1234

November 1, 8, 15, 16, 22, 29

Manheim Riverside November 17 909-689-6000

800-337-8491 Manheim Pennsylvania November 10, 11, 22 800-777-2053 Manheim Phoenix November 3, 10, 17, 22 623-907-7000 Manheim Pittsburgh November 16 724-452-5555 Manheim Riverside November 15, 17 909-689-6000

Manheim Atlanta November 9 404-762-9211

Manheim Orlando November 16 800-337-8491

Manheim Dallas November 2 877-860-1651

Manheim Pennsylvania November 10 800-777-2053

Mazda Capital Services ADESA Boston November 4, 18 508-626-7000

Manheim Detroit November 10 734-654-7100

ADESA Golden Gate November 22 209-839-8000

Manheim Southern California November 10 909-822-2261

Manheim Fredericksburg Manheim Pennsylvania November 3 November 11 540-368-3400 800-777-2053

ADESA Houston November 9 281-580-1800

Manheim Milwaukee November 2, 30 262-835-4436

Manheim Pittsburgh November 16 724-452-5555

Manheim Tampa November 10 800-622-7292

Columbus Fair AA November 2, 30 614-497-2000

Manheim Nashville November 2, 30 877-386-5004

Manheim Riverside November 15 909-689-6000

Southern AA November 16 860-292-7500

Manheim Atlanta November 10 404-762-9211

Manheim New Jersey November 2, 16, 30 609-298-3400

Manheim Seattle November 9 206-762-1600

Manheim Seattle November 9 206-762-1600

Manheim New Jersey November 2, 16, 30 609-298-3400

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

Manheim Orlando November 22 800-337-8491

Subaru Motors Finance ADESA Boston November 4 508-626-7000

Manheim Fredericksburg Manheim Pittsburgh November 17 November 16 540-368-3400 724-452-5555

ADESA Salt Lake November 1, 29 801-322-1234

Manheim Milwaukee November 16 262-835-4436

Manheim Seattle November 9 206-762-1600

Columbus Fair AA November 23 614-497-2000

Manheim New Jersey November 2, 30 609-298-3400

Manheim Southern CA November 10 909-822-2261

Manheim Dallas November 2, 30 877-860-1651

Manheim Orlando November 15 800-337-8491

Southern AA November 16 860-292-7500

Manheim Detroit November 22 734-654-7100

Manheim Pennsylvania November 11 800-777-2053

*The tradename “Subaru Motors Finance” and the Subaru logo are owned / licensed by Subaru of America, Inc. and are licensed to JPMorgan Chase Bank, N.A. (“Chase”). Retail/ Loan and lease accounts are owned by Chase. *The Jaguar word mark, the Jaguar logo, and Jaguar Financial Group are trademarks of Jaguar Land Rover Limited and any use by Chase is under license. The Land Rover word mark, the Land Rover and Oval logo, and Land Rover Financial Group are trademarks of Jaguar Land Rover Limited and any use by Chase is under license. Retail / Loan and lease accounts are owned by Chase. *The tradename "Mazda Capital Services" as well as the Mazda and Mazda Capital Services logos are owned by Mazda Motor Corporation or its affiliates and are licensed to Chase. Retail / Loan and lease accounts are owned by Chase. ©2016 JPMorgan Chase Bank, N.A. Member FDIC (16-037) 11/16

09_UCN.indd 1

10/10/16 11:38 AM


10 • October 17, 2016

USED CAR NEWS

Dealer Must Create Culture of Compliance By Ted Craig

There should be no questions among buy-here, payhere dealers about whether life under the Consumer Financial Protection Bureau is different from how it was before the agency’s creation. If any attendees at the recent DealerSocket User Conference had lingering doubts, attorneys Tom Hudson and Eric Johnson cleared them up with their presentations.

Before the CFPB, it was enough to not violate the law. Now, dealers have to prove they took steps to prevent any violations. Small dealers face the greatest challenge in this new environment. A one-store operation and a large chain such as America’s Car-Mart are under the same regulations. But the large chain has legal resources the single-store dealer lacks. The CFPB’s action against a small buy-here, pay-here

dealer called Herbies drove this point home. “The lesson of Herbies is that there is no such thing as a dealership that’s too small,” Hudson said. Herbies is a stand-alone dealership in Greeley, Colo. In January, the CFPB took action against the store for what it claimed were abusive financing schemes, hidden auto finance charges and misleading promotions. Herbies had to pay $700,000 in restitution to harmed consumers, with a

Ryan Wolf » Master Inspector » Manheim San Diego

suspended civil penalty of $100,000. Johnson said dealers should expect a fine that large if they run afoul of the regulator. The CFPB wants to make it too expensive not to comply, he said. Some of the claims against Herbies were typical of practices that can land dealers in trouble, such as charging for payment assurance devices. Others were pushing into new territory, Johnson said. The biggest issue in this area was calling the difference between the price of a car paid for in cash and the price of one financed a hidden charge. Johnson said Herbies made very few cash sales, but those proved enough to create an abusive practice in the eyes of the CFPB. Some dealers at the conference expressed confusion over the CFPB’s authority and why they would go after a small dealer when they are supposed to focus on “larger participants,” such as Car-Mart and DriveTime. The CFPB has the power to create rules for larger participants in the buyhere, pay-here business, but it has enforcement authority for the entire segment. Johnson said sometimes

the CFPB uses this enforcement authority because it is faster than writing rules. The Herbies case has now created precedent in several areas, including discounts to cash customers and posting prices. Hudson said the most important goal for dealers is to create a “culture of compliance.” The CFPB expects a written “compliance management system,” meaning written procedures for following the rules. The regulators will be willing to accept a scaled down version, but dealers must take basic steps. They need to read their retail installment contracts, for example. They also need to become familiar with the state and federal laws that impact their business. Hudson said dealers must invest resources in this compliance culture, including paying for training. A dealer would never think of hiring an untrained person to work in the service department. Hiring salespeople without any compliance training, however, is common practice. “You’re in one of the most highly regulated industries and you’re throwing people into sales with no training whatsoever,” Hudson said.

FTC Makes ‘Yo-Yo’ Claims

I BOOST BUYER AND SELLER CONFIDENCE.

As a dealer, you need to know the exact condition of every vehicle you offer. That’s why top-notch inspectors like Ryan put in the work, meticulously looking over vehicles and providing accurate Condition Reports so your customers can buy with confidence. Learn how to increase online sales with Condition Reports at MyManhiem.com

© 2016 Manheim, Inc. All rights reserved. Manheim M logo is a trademark of Manheim, Inc.

10_UCN.indd 1

The Federal Trade Commission has charged nine Los Angeles-area auto dealerships and their owners with using a wide range of deceptive and unfair sales and financing practices. This is the FTC’s first action against an auto dealer for “yo-yo” financing tactics: using deception or other unlawful pressure tactics to coerce consumers, who have signed contracts and driven off the dealership’s lot, into accepting a different deal. The FTC also alleges that the defendants packed extra, unauthorized charges for “add-ons,” or aftermarket products and services, into car deals financed by consumers. According to the FTC’s complaint, the defendants entice consumers, particularly financially distressed and non-English speaking consumers, into their deal-

erships with print, internet, radio and television ads that make an array of misleading claims, including that vehicles are generally available for the advertised terms and that consumers can buy vehicles for low prices, finance with low monthly payments, or make low down payments. Other allegedly misleading claims include that consumers can finance the purchase of vehicles – when in fact they are lease offers – and that the defendants will pay off consumers’ trade-in vehicles, despite the fact that consumers ultimately are responsible for paying off any amount owed on the trade-in. The FTC also alleges that the defendants use phony online reviews to tout their dealerships and discredit negative reviews that highlighted their unlawful practices.

10/10/16 4:52 PM


USED CAR NEWS

October 17, 2016 • 11

Automakers Prepare for New Car Price War DETROIT (AP) – While the U.S. inched its way out of the Great Recession, consumers went car shopping in droves. As sales rebounded, the price of cars and trucks rose to record highs. Now, the price trend is set to reverse itself, partly because some buyers are unwilling or unable to pay the high prices and instead are opting for used cars. Although overall industry sales are tracking last year’s record 17.5 million, many automakers are selling more cars to rental companies to maintain the momentum. Sales to consumers are declining, so companies are ramping up incentives. Discounts in September hit a level not seen since automakers were desperate for sales during the financial crisis in late 2008. “Inherently, you’re seeing a price war,” says John Mendel, executive vice president of Honda North America. “You’re already seeing the pricing pressure.” Analysts say the deals will only get better during the next two years as millions of leased cars flood the usedcar market and pull new-car prices down. Auto prices have risen every year since the Great Recession, hitting a record average of $31,825 in De-

cember 2015, according to J.D. Power. The average price in September was $30,862, an all-time high for the month. Prices have remained elevated largely because buyers are still paying top dollar for red-hot segments such as crossovers and big SUVs, which cost more than sedans. As prices hit record levels and household incomes grew slowly, many buyers were priced out of new cars. Prices are so high now that the average family in the nation’s 50 largest metro areas can’t afford to buy a new vehicle, according to a study by Bankrate.com. That hasn’t stopped some buyers, who are borrowing larger amounts at longer terms to secure that new car, Bankrate says. “Customers have an affordability problem,” says Wes Lutz, owner of a Chrysler-Dodge-Jeep-Ram dealership in middle-class Jackson, Mich., west of Detroit. About one-third of his customers can’t get credit, another third have trouble, and the rest are credit-worthy, he said. Even if prices fall, Lutz expects government safety and fuel economy requirements to push them back up, driving more people from new cars to used. He’s adding person-

nel and square footage to his used-car operation in anticipation. Alaina Dishman, 19, of Lansing, Mich., was among those who didn’t have enough credit to buy a new car when she went to Lutz’s showroom last summer. But a salesman got her into a program that helps young people build credit. Her father co-signed, and she got a two-year lease on new Jeep Compass small SUV for under $200 per month. Dishman, who works at a grocery store, traded in a

1995 Nissan Maxima with 260,000 miles on it, fearing the car wouldn’t be reliable in the winter. Even with slower car sales, times will remain good for the auto industry. Jeff Schuster, senior vice president for forecasting at the consulting firm LMC Automotive, predicts 2016 U.S. sales will fall a bit shy of last year’s record, with slight increases in 2017 and 2018. Mendel says that’s still good business, especially T:5.3375” for automakers like Honda with a lot of new products.

But higher incentives and lower prices could hurt automaker profits down the road. Schuster says many automakers were using rental fleets and incentives to boost sales in hopes of avoiding headlines that could cause consumers to delay purchases and investors to balk at buying stock. “If everything continues to be wonderful, it gets reported as wonderful, and I should go buy a new car,” he said.

James Reed » Manheim Field Sales Rep » Detroit, Michigan

The Arizona attorney general’s office filed a discrimination lawsuit against a used-car dealership accused of wrongfully terminating a disabled employee suffering from stage four lung cancer. The lawsuit alleges Sullivan Motor Company in Mesa discriminated against the employee who became disabled during his ongoing battle with cancer. The state filed the lawsuit based on an investigation conducted by the Arizona attorney general’s office Civil Rights Division. In 2014, Francis Beesley, a salesman at Sullivan Motor Co., was diagnosed with stage four metastatic lung cancer, papillary thyroid cancer, and chronic obstructive pulmonary disease with emphysema. Beesley notified management at Sul-

livan and continued to work at the dealership. In February 2015, Beesley requested a modified work schedule due to his cancer and cancer-related fatigue. Sullivan agreed to grant Beesley’s request. In May 2015, Beesley was diagnosed with skin cancer and needed to be out for two weeks for medical procedures. Management at Sullivan notified Beesley they could no longer accommodate his disability with reduced hours and terminated him. The lawsuit alleges Sullivan Motor Co. violated the Arizona Civil Rights Act by failing to provide Beesley with reasonable accommodation for his disability and denied him employment opportunities based on the need to make a reasonable accommodation for his disability.

T:9.32”

Firing Brings Suit

I’M HERE TO MAKE SURE YOU DON’T LEAVE MONEY ON THE TABLE.

© 2016 Manheim, Inc. All rights reserved. Manheim M logo is a trademark of Manheim, Inc.

CMA160025_Manheim_James_UCN_OPjr.indd 1

11_UCN.indd 1

Running your business at top speed isn’t easy. Manheim finds every advantage, saving you time and money and improving business results. That’s why sales reps like James are out there — wholesale experts dedicated to boosting your bottom line. Find out how James helps dealers succeed at the auction and beyond at MyManheim.com

10/7/16 1:17 PM 10/10/16 4:51 PM


12 • October 17, 2016

USED CAR NEWS

Prosecutors Say Ex-Attorney Posed as Dealer in Scam HOUSTON (AP) – Prosecutors say a disbarred ex-attorney from Utah faces up to 10 years in prison in a Houston luxury auto scam with no cars, dealerships or sales. Howard Price Johnson pleaded guilty in Houston to money laundering. Investigators say the 62-yearold Salt Lake City man was part of a nearly $700,000 bank fraud scheme involving two other people, who earlier pleaded guilty to money laundering and also await sentencing.

Prosecutors say Johnson in 2011 portrayed himself as a used-car seller with two dealerships. Investigators say the scheme involved auto websites but in reality there were no dealerships, inventory or sales. Some banks, based on false documentation, provided loans to Johnson’s associates to purchase vehicles. The money provided to the socalled dealerships for the nonexistent vehicles was never repaid.

Man Found Guilty of Murder MICHIGAN CITY, Ind. (AP) – An Indiana man has been found guilty of murder in the slaying of a used-car dealer who was stabbed nine times in the neck inside his Michigan City dealership. The South Bend Tribune reports that 45-year-old David Morris was also found guilty of robbery, burglary and theft. He will be sentenced Oct. 27 and could receive more than 100 years

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in prison. Hufracio Arteaga was killed in April. A co-owner of the business discovered his body four days later. Prosecutors say Morris knew the victim from running errands for him and doing odd jobs around the car lot. They say Morris also stole two cars from the lot and the murder weapon was found under the hood of one of the vehicles.

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USED CAR NEWS

October 17, 2016 • 13

RETAIL MARKETS ARKANSAS

Verity Johnson, assistant office manager of the legal division, Jon Gibson Auto Sales, Hot Springs, Ark.: “Sales are strong. We’ve been established since 1982. We have a strong rapport with our local customers, so we have a lot of repeat business. “Sales are lower than last year. I don’t know the reason for that, but we were a good 50 sales shorter in August from where we were last year. “We usually sell around 150 units a month. Our current inventory is about 800. That’s for two stores, one in Hot Springs and one in Little Rock. “We’re a one-stop dealer. We have cars, motorcycles, campers, boats, etc. Car and truck inventory is about 500. “We buy at a lot of ADESA and Manheim auctions in California, Dallas and Florida, depending on the cars. We try to buy ‘15s and ‘16s.

We don’t like to buy anything older than that. “We have older cars on the lot, but those are from trades. “Auction prices are in the $18,000-$19,000. “We’re not seeing lower prices. And the transport fees have gone up. “We sell a lot of Chargers and Challengers, as well as classic 300s. “We try not to do too many imports. “They’re expensive to maintain, except Toyotas. Probably 90 percent of what we have is domestics. “Our owner, John Gibson, does all the buying at the auctions. He either goes to local auctions or buys them online. “We have an ADESA sale in Little Rock that he attends in person, but flying to the auctions isn’t practical any more. “We’re a buy-here, payhere dealership. “We offer 60-month terms on the newer vehicles. It’s 48 months for the older

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13_UCN.indd 1

units. “The long term is worrisome. We do use GPS devices. “The election has driven up TV ad prices. “So now John has later spots, less prime time. I was up one night and saw a commercial playing at three in the morning.”

ILLINOIS

Gordon Tormohlen, president, Tormohlen’s Good People Automotive, Freeport, Ill.: “We have stores in Freeport, Ill., and Monroe, Wis. “I’ve been in the business since 1973, so I’ve been at it 43 years. This particular business we ramped up in 1992. “I would say average inventory is about 90 units (for both stores). Last year, I think we were a little heavier. We might have had 110 on the ground. I’m trying to trim it back. “We carry more inventory than we should because my

Compiled by Jeffrey Bellant Freeport location has 300feet of frontage. So if I let my inventory get too low, I look like I’m going out of business. “Most of our inventory is coming from our local auction, Greater Rockford Auto Auction. “We sell 20 to 25 per month. I’m not looking for quantity. We could easily sell an (additional) 10 units a month, but our losses would go up. “We’re looking for a quality customer. “We are buy-here, payhere, about 98 percent. “We do a handful of latemodel deals to our older customers. I was a Chrysler dealer many years ago and so they still come to us and trust us. “Average retail price is about $8,200. “Down payments are running about $700 to $800. They are always thinner this time of the year than in the spring and summer. “Term length is an average of 27 months.

“We aim for a two-year contract. But we do offer a three-year contract to our (repeat) customers. “We just find the customer has a better experience if they pay for them quicker. “Average model year is probably a 2004, with average mileage about 120,000 to 140,000. “Our mix is 30 percent trucks and 70 percent cars. That’s more a result of supply. It’s tough to find trucks. “We’re probably spending about $1,200 a unit for reconditioning. “I’m not afraid of buying a (rough car) at auction, because even if I know I’m going to put a lot of money into it, I also know what I’ll have when I’m done fixing it. For me, it’s almost easier to buy a rough car and make it nice, than it is to pay for a nice car and hope it doesn’t need repairs. “We just delivered a 2004 Chevy Silverado, extended cab two-wheel drive with 153,000 miles. We got $8,450.”

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10/10/16 11:33 AM


14 • October 17, 2016

WHOLESALE MARKETS MINNESOTA

Shaun Schaefer, vice president, Mid-State Auto Auction, New York Mills, Minn.: “We’ve been in business 33 years. We have four lanes. “Our volumes have been great. We’ve actually been running 400 to 450 per week. “We had our biggest sale ever in August for our anniversary sale. We ran 1,100 cars. “We are hitting 58 percent to 60 percent in sales percentage. It’s about the same as last year. But we’re getting to the time where it may dip a bit. “We’re drawing about 200 dealers in the lanes. We’re picking up a few new ones here and there. They are coming from all over Minnesota, North Dakota, South Dakota and some Wisconsin and Canadian people, too. “From what I’ve heard, retail has been all right. It hasn’t been great but it hasn’t been bad. It’s just been steady.

“Our lease and credit union volumes are up this year. Fleet-lease makes up about 20 percent of our volume. We’ve upped it quite a bit. “We’ve gotten new clients and we’ve seen a boost (in the volumes) of the clients we did have. We also have a good lease manager. “We also have the GSA sale, which is our government sale. We usually run that once a month starting in April or May. Our last GSA sale of the year is Oct. 21. “They range from 80 units to 140 units. This year is up from last year. Those are an assortment from DNR trucks, to cars like Impalas, passenger vans – all that stuff. They sell 100 percent. Dealers like them because they are well maintained and can go straight to the lot. “The average price in the lane is between $8,000 to $10,000. “Trucks and SUVs are the hot tickets. Chevy trucks

and Suburbans are doing well. “We’re way up from last year so we’re feeling pretty good.”

NEVADA

Dan Thomas, owner, Dealers Auto Auction of Las Vegas, North Las Vegas, Nev.: “We’ve been in business two years. It was a greenfield site. We have five lanes and we’re running three currently. “We’ve been averaging about 350 cars per week. It’s a huge improvement since we started with zero cars in November 2014. We’ll do an anniversary sale in midNovember. “My staff has a lot of years of experience. I’ve got 41 years. (General manager) Russ Norrish started in the business the same year I did. We’re high school friends. “My assistant manager has been in the business close to 27 years. I was the Manheim regional vice president for 15 years. I retired after 20

years with Manheim. “We average close to 70 percent (conversion rates). That’s one of our strengths. We focus on new-car-store trades and front-line units. So our sales percentages are a lot higher than normal. But we’re definitely the small fish (in this market). “We also get Utah dealers and some California dealers. “Dealers’ (retail sales) seem to be going good. One week they’ll say they are up, another they’ll say they are down. But they are all doing much better than last year. “One thing that’s nice is we get a pretty good pulse of the market because we deal directly with the owners of the dealerships. We have a lot of independents who come to buy the cars and we deal with the newcar stores who are selling trades. “The overall economy is definitely moving forward. Home sales are starting to pick up. There’s a lot of new construction going up,

USED CAR NEWS

Compiled by Jeffrey Bellant which is mind-boggling to me. People are coming in to build like crazy again. “We’re probably 95 percent dealer. We also have a couple of banks, five small finance companies and two rental accounts. “As far as commercial accounts, we would definitely take on more. “We have Auction Pipeline. It’s a really good system. Starting the first of the year, we’re going to start (condition-reporting) all of our cars. We’re doing things in phases. We started with our late-model, green-light cars. Now we’ll go to the later model higher mileage cars that dealers will be interested in. “We also start our sale off with an in-op sale. We probably get about 20 a week. “Our average price per car is $6,200. That’s gone up. We’ve gained a lot of latemodel units. “SUVs still do well. Your bigger trucks and SUVs are doing well as long as the gas stays down.”

anniversary sale

14_UCN.indd 1

10/10/16 3:57 PM


USED CAR NEWS

October 17, 2016 • 15

MONTHLY DEALER CONSIGNMENT AVERAGES AVG. PRICE AVG. MILEAGE

COMPACT CAR

AVG. PRICE AVG. MILEAGE

PICKUP

Jan 2016

$5,093

101,956

Jan. 2016

$15,930

103,848

Feb 2016

$5,055

102,218

Feb 2016

$15,883

104,140

March 2016

$5,262

101,360

March 2016

$16,419

102,255

Apr 2016

$5,345

100,488

April 2016

$16,991

100,402

May 2016

$5,171

101,747

May 2016

$16,773

102,287

June 2016

$5,080

102,022

June 2016

$16,704

102,461

July 2016

$4,989

102,234

July 2016

$16,587

102,938

Aug 2016

$4,891

102,705

Aug 2016

$16,682

102,704

Sept 2016

$4,685

103,811

Sept 2016

$16,119

104,910

YTD AVG

$5,066

102,055

YTD AVG

$16,459

102,859

FULLSIZE CAR

SPORTS CAR

Jan 2016

$3,954

112,752

Jan. 2016

$15,708

77,973

Feb 2016

$3,580

117,212

Feb 2016

$15,317

76,755

March 2016

$3,529

117,020

March 2016

$17,100

70,664

Apr 2016

$3,666

116,329

April 2016

$18,179

70,448

May 2016

$3,528

118,495

May 2016

$17,795

70,152

June 2016

$3,373

116,322

June 2016

$17,897

71,289

July 2016

$3,633

116,487

July 2016

$17,214

71,377

Aug 2016

$3,697

116,520

Aug 2016

$16,530

72,478

Sept 2016

$3,286

116,130

Sept 2016

$16,720

71,579

YTD AVG

$3,577

116,423

YTD AVG

$16,975

72,392

Numbers

LUXURY CAR

TO THE

BUYING CROWD. AGame.Autotrader.com

SUV

Jan 2016

$11,860

97,387

Jan. 2016

$11,707

105,918

Feb 2016

$11,348

100,060

Feb 2016

$11,507

107,377

March 2016

$11,847

98,369

March 2016

$11,712

107,188

April 2016

$13,043

95,515

April 2016

$12,257

105,059

May 2016

$12,500

97,322

May 2016

$12,084

105,798

June 2016

$12,425

97,308

June 2016

$12,003

104,968

July 2016

$12,505

94,296

July 2016

$11,963

104,659

Aug 2016

$11,717

97,305

Aug 2016

$11,495

106,448

Sept 2016

$11,619

96,674

Sept 2016

$11,440

106,311

YTD AVG

$12,078

97,208

YTD AVG

$11,788

106,055

MIDSIZE CAR

VAN

Jan 2016

$5,853

109,103

Jan. 2016

$6,532

118,993

Feb 2016

$5,863

109,784

Feb 2016

$6,276

121,093

March 2016

$6,109

108,953

March 2016

$6,519

120,843

April 2016

$6,359

107,174

April 2016

$6,924

119,053

May 2016

$6,134

107,954

May 2016

$6,764

119,560

June 2016

$6,062

108,328

June 2016

$6,633

118,858

July 2016

$6,070

106,873

July 2016

$6,635

119,584

Aug 2016

$5,881

108,836

Aug 2016

$6,483

120,645

Sept 2016

$5,702

109,383

Sept 2016

$6,312

121,842

YTD AVG

$6,007

108,518

YTD AVG

$6,563

120,073

CURRENT YTD, THROUGH AUGUST 2016

15_UCN.indd 1

PLAY

Cahrelston

SOURCE: MANHEIM CONSULTING

10/10/16 5:07 PM


16 • October 17, 2016

DISCONNECTED JOTTINGS FROM I reached the ripe old age of 68 this last week. Life’s been like Mr. Toad’s wild ride along the bumpy back roads of the early years to the smooth success of gliding along the interstate highways and now enjoying the relaxation of cruise control. But signs along the way always provided a fairly clear path and traffic lights turned green at most opportunities. Some folks along for the ride have slipstreamed right in behind and gone on to bright roads of their own. Some might even say I gave encouragement and insight making their map-reading skills even better. I’ve been truly blessed to be involved with a business that acknowledges success, shares the spoils, allows personal growth and the chance to enjoy learning from others to hone skills and pass them on again. It’s never been a nine-to-five existence and no jarring repetition has ever been endured except as a kid working the nightshift in a bread-making factory running the slicing and wrapping machines and luckily that was short-lived. There’s only one thing better than all this – my family. I love

TONY MOORBY

them more every day and we are all great friends too. I put off filing for Social Security at the age of 65 on the fortunate premise that I was not in desperate need of it and if I did postpone the payments, the sum would grow in later years. Now I’m told it behooves me to enroll in Medicare, Parts A and B, and to do that I should be on Social Security. Since leaving formal, full time employment I’ve been a party to my wife’s company’s insurance program but they’re altering the parameters of their benefits and their costs (duh!). That’s fodder for another column, all of its own. But now I can get better and cheaper coverage, it turns out, by paying for a supplement to Part B. Still following? Good, it took me a while! As of this writing, this is far from a done deal and at minimum will take two weeks to percolate through the system and could take longer should there be questions or queries. I was told I could present myself at the Social Security Administration’s offices on the other side of Nashville or I could file online. I shuddered at the thought of going to their offices on the probability that

it would be akin to a visit to the DMV – only worse. No prizes for guessing that I took the online route. A phalanx of questions ensued but I was quite happy to be at home, coffee at the end of my elbow, in the comfort of the air conditioning and a ceiling fan lending the occasional waft of fresh air. That was until I got to the question of my citizenship papers – they had no record! The Immigration and Naturalization Service does, The Department of Homeland Security does, the FBI and the TSA do, probably the NSA and the CIA too. Even the British authorities recognize me as an American Trusted Traveller while still being a subject of Her Majesty. I dialed the help line and after a number of abortive attempts at raising a human being to the cause, a very helpful young lady from Auburn, Wash., told me I would have to present my citizenship certificate personally at the Social Security office. “While you’re at it, take along your birth certificate, Social Security Card, driver’s permit and a copy of your application so far,” she added helpfully. I mined this portfolio of life’s literature from the lock box at

C R O S S WO R D Across 1. Buick SUV 4. Honda model 10. Swedish car brand owned by China’s Geely Group 11. Luxury Toyota model 13. Lower the lights 14. Couple 15. Add a new coat of paint 17. Go above, at auction 19. Appropriate 21. It’s there in a Jiffy 23. Set a higher price 25. Old VW’s 26. “Put ___ writing”2 words 28. ___ Eliot 30. Security system components 31. Changing gears mechanism 32. In that place

USED CAR NEWS

the bank and attended the SSA offices in high hopes. I was greeted (if that’s the right word) by two desultory security guards at the screening station, virtually having to strip in front of the League of Nations already in attendance. I understand why, these days, but doing it so openly in front of some 150 people adds a lack of decorum to an already stressful visit. Armed with a paperback I was starting to think that “War and Peace” would have been a more suitable reading companion for the duration. I registered electronically and having no appointment (I didn’t know you could make one) the machine spat out a ticket with a number as long as the lottery but surprisingly I was called relatively quickly, after only 20 minutes to an adjacent window. I sat for another 20 minutes, in the company of a blank computer screen, for a clerk to come and make my acquaintance. The office and cubicles beyond the window with a hole in it were totally devoid of people. Eventually a boyish young lady beset with tattoos asked me a few questions to get the session started. When she realized that I hadn’t completed

the whole application she suggested that I rejoin the thronging masses outside to get an interview with someone else. “You should apply for an appointment or you could be waiting for three hours,” she proffered somberly. I pointed out that her colleague in Washington (I didn’t mention Auburn) told me not to proceed until I’d presented the Naturalization Certificate and all. I smiled sweetly and begged her indulgence to proceed with the rest of the online application. In the process she observed that I should have shown the Certificate to the administration after the Naturalization proceedings back in 2005. I didn’t have to do that with any of the other agencies who all seemed to be acquainted with my new status in life. In the end and after a fair amount of chasing my tail, she stuck with me to complete the details. It was now early afternoon and I made my way through the sea of humanity, which seemed to have swollen to twice the earlier number. I’m sincerely hoping that my application requires no further personal visits but if so I’ll make an appointment, hopefully before the age of 69.

Digital version available at usedcarnews.com

By Myles Mellor

33. Brake ____ 35. Former Swedish car company 37. Clubman, for one 38. Chrysler minivan 41. Single, prefix 42. Bond creator, first name 44. Nuts companion 47. ___’easter 49. Time long past 51. Yours and mine 52. Ouch! 53. Connected a seatbelt 54. BMWs and Mercedes, e.g.

9. Kia sedan 12. 2nd in the family 16. Toyota hybrid car 18. Veyron maker 20. Custom sports car maker 22. Golfer’s concern 24. Cadillac sedan 25. Very worn, of tires 27. TV network 29. Snow gear for cars 30. What an auto travels on, for short 31. Horse-drawn vehicle 32. Old Dodge compact 33. Loudspeaker system 34. RSX maker 35. Toyota brand 36. Car club 37. “O Sole ___” 39. Trendy 40. ____ Grande Punto

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8

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11

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21

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18

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24

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25

28

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CROSSWORD

Down 1. Buick sedan 2. Car buyer’s choice 3. Kia compact 5. Rusts 6. Green car color 7. ____ player 8. Nissan SUV

3

33 34

38

47

35 39

37

40

41

48

36

42 49

43

50

44

51

46

52

53

43. Agreement sign 44. Removable front cover, slang 45. Where for sale vehicles are kept 46. Jefferson bill 48. “Fields __ Gold” Sting 50. Electrical giant, abbr.

45

54

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Solution to this puzzle in the 11/07/16 issue. Call 1.800.794.0760 for a FREE subscription.

16_UCN.indd 1

10/10/16 5:01 PM


USED CAR NEWS

October 17, 2016 • 17 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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10/10/16 12:37 PM


18 • October 17, 2016

AROUND THE BLOCK STAFF PULLS PLANE FOR CHARITY

USED CAR NEWS

Compiled by Jeffrey Bellant

Month-long Sale Supports Schools

The winning team, Team Aldi, San Antonio Auto Auction held a pulled the 18,000-pound plane month-long promotion in support across the finish line in just seven of students at local schools, collectseconds. ing more than 1,000 items for two “Supporting the Special Olymschools. pics, and actually meeting the Marketing Manager Payton Walkfamilies with children particier reports that the Stuff the Bus pating in the games, made for a promotion, which ran in August, truly special day,” said Mike Cesencouraged auction customers to ta, general manager of Manheim donate school supplies for elemenChicago. tary and middle school students in “Our friends at the Matteson the community. “Our Stuff the Bus promotion is Police Department presented the the first in a series of special events challenge and our team came towe are planning here at San Antonio gether in a true test of strength Auto Auction to benefit our commufor an amazing cause.” nity,” Walker said. “Our customers To participate, teams are rewere both generous and enthusiasquired to raise a minimum of tic in their support, and we ended GROUND CREW: Nearly two dozen Manheim Chicago employees pull a 737 in a race to $1,000. up with 1,009 donations which we benefit Special Olympics. All proceeds collected through delivered to two schools in the local Twenty Manheim Chicago em- Sept. 10 at O’Hare International fundraising benefit the training Judson ISD School district. and competition for athletes cur“It was gratifying to work togethployees rolled up their sleeves Airport. er as an auction community to help and pulled a United Airlines The Manheim Chicago team rently participating with the Spethose around us,” said Walker. 737 airplane, weighing nearly flexed their muscles for the ul- cial Olympics Illinois. 90 tons, 12 feet to victory in the timate tug-of-war competition, We invite news items and top-quality photos from our readers to be considered for “Around the Block.” 8th Annual Plane Pull benefit- edging the local Matteson Police 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. ting Special Olympics Illinois on Department by one second. Fax: (586) 772-9400 e-mail: jeff@usedcarnews.com

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See why over 20,000+ dealers Next Gear Capt. 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! nextgearcapital.com 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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10/10/16 11:36 AM


From the

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!

, HEART Santader Ad for the

CHILDREN

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 | www.childlegacy.org | Oct. 1 – Oct. 31 Mercy International | www.mercyintl.org | Nov. 1 – Nov. 30 St. Jude Children’s Research Hospital | www.stjude.org | Dec. 1 – Dec. 31

© 2016 Santander Consumer USA Inc. All Rights Reserved

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