Page 1

April 17, 2017

www.usedcarnews.com

Large Recalls Continue to Plague Industry

RECALL WOES: Ford Motor Co. recently issued a recall covering more than 200,000 vehicles, including 2014 Escape; 2014-15 Fiesta ST; 2013-14 Fusion and 2013-15 Transit Connect vehicles equipped with 1.6L GTDI engines for issues with the cooling system. Ford’s biggest recall last year covered more than 3 million units.

By Ted Craig

Rush - Dated Material

DETROIT – Recall volumes hit a new high in 2016 with 927 separate recalls afecting 53.2 million vehicles. This was the third year recalls reached a new milestone. Neil Steinkamp, managing director at SSR, presented an overview of recalls in 2016 and what to expect going forward during an event hosted by the Society of Automotive Analysts. The Takata air bag recalls drove much of the volume of recalls, but there were other major issues as well. General Motors had the larg-

est non-Takata recalls, with 3.6 million units afected. “The large recall is still an important player,” Steinkamp said. Nothing comes close to the Takata recall, however. By 2020, between 64 million and 69 million inlators will be recalled. “Obviously, this is an extraordinary recall,” Steinkamp said. Eighty percent of recalls cover fewer than 100,000 vehicles, with half covering fewer than 10,000 vehicles. The smallest recall last year was Mercedes’ recall of one CLG. The other 20 percent, though, make up 90 percent of all vehicles recalled.

Airbag recalls overall are growing. There were 45 non-Takata air bag recalls in 2016. Part of this comes from the manufacturers playing it safe by issuing recalls rather than just technical service bulletins. It’s not just the inlators that are being recalled, either. Many of these air bag recalls are software recalls. These large recalls often cover vehicles going back several model years. This hurts the completion rates for their repairs. Vehicles that are ive years old and older have completion rates below 50 percent, even after two years. The good news is manufactur-

ers now have an example of how to boost those rates – the GM ignition switch campaign. GM made a major efort, doing everything from setting up a special call center to reaching out to drivers via social media. As a result, the company achieved a completion rate in the 70 percent to 80 percent range. “This is what’s going to lift these old vehicle completion rates,” Steinkamp said. The manufacturers will need to learn from that experience, as the amount of recalls is likely to grow as vehicles become more complicated and sales continue to rise.

TRANSPORT DISCOUNTS See back cover for details


John Yang » Operations Manager / First National Fleet & Lease » Seattle, WA

ONLINE CHECKOUT SAVES ME TIME. AND TIME IS MONEY.

The time John saves by using online checkout is time he can use in more productive ways, like closing deals. And the more deals he closes, the more successful his dealership becomes. See how much time John saves on all his post-sale activities at MyManheim.com.

© 2017 Manheim, Inc. All rights reserved. Manheim M logo is a trademark of Manheim, Inc.


USED CAR NEWS

April 17, 2017 • 3

Higher Delinquences, Lower Prices Create Stress By Ted Craig

Concerns are mounting about the state of auto retail and inance as both wholesale volumes and delinquencies grow while new-car sales plateau. But most industry observers remain fairly conident about prospects for prices and inance, at least for now. Ally Financial Inc. did recently lower its proit expectations to 5 percent growth from 15 percent growth at the start of the year. But Chris Halmy, Ally’s chief inancial oicer, said the company has adjusted its auto inance focus to risk from growth. Halmy also calls the decline in wholesale prices manageable. Melinda Zabritski, of Experian Automotive, said many inance companies are taking the same approach on inancing as Ally and tightening. The situation looks bad right now because delinquencies tend to grow 18 months after origination and

credit was looser in 2015 and early 2016, Zabritski said. It’s not all of auto inance that’s struggling, either. Subprime auto inance, however, is showing more signs of trouble. Zabritiski said deep subprime delinquencies recently saw a larger year-overyear increase than they had in prior years. Amy Crews Cutts, Equifax’s chief economist, said not all subprime is the same, either. Cutts said banks, captive and credit unions are performing fairly well. It’s the pure auto inance irms and larger buy-here, pay-here operations that are seeing more problems. The rise in delinquencies becomes a problem if it leads to more defaults. And that becomes a problem if creditors lack adequate reserves to cover those defaults. Those reserves last longer if the creditors can get back more money at auction. A decline in wholesale prices has many inancing providers predicting higher

Source Manheim

loses going forward. The latest readings for wholesale prices show a fairly resilient market. Manheim reports that wholesale prices declined 0.5 percent in March, when adjusted for mix, mileage and seasonality. The Manheim Used Vehicle Value now stands at 124.1, which represented a 1.3 percent increase from a year ago.

“Although used vehicle values have declined in ive of the last six months, it has not been the collapse that many analysts have warned of for more than a year due to increasing wholesale supplies,” said Manheim chief economist Tom Webb. Much has been made of the unusual decline in wholesale prices in February, which some warned was a sign of a more rapid decline.

But David Von Paris, senior automotive analyst for J.D. Power Valuation Services, said a rebound in March put prices in line with traditional movements. Still, even if prices don’t collapse, a decline is inevitable as volumes grow, said Tom Kontos, chief economist for KAR Auction Services Inc. “It’s best to brace for more softening,” he said.


4 • April 17, 2017

USED CAR NEWS

NEWS BRIEFS Carvana Files for IPO

not be sold, nor may ofers to buy be companies to inform recent cusCarvana has iled a registration accepted, prior to the time the regis- tomers, by mail, that vehicles they statement with the U.S. Securities tration statement becomes efective. bought as far back as July 1, 2013, may be subject to open recalls. and Exchange Commission relating The commission vote approving to a proposed initial public oferFTC Approves Certiied Settlement the inal orders against CarMax, Asing of shares of its Class A common Following a public comment pe- bury and West-Herr GM, and letters stock. The number of shares to be ofered riod, the Federal Trade Commission to commenters was 2-0. and the price range for the proposed has approved inal consent orders ofering have not yet been deter- with CarMax, Asbury Automotive mined. Carvana intends to list its Group and West-Herr Automo- Independent Dealers Grow More Class A common stock on the New tive Group, settling charges that Optimistic The latest installment of the NaYork Stock Exchange under the tick- they touted how rigorously they inspect their used cars, yet failed tional Independent Automobile er symbol “CVNA.” Wells Fargo Securities, LLC; BofA to adequately disclose that some of Dealers Association’s quarterly Merrill Lynch; Citigroup Global the cars were subject to unrepaired Business Conidence Survey relects immense optimism from indepenMarkets, Inc. and Deutsche Bank safety recalls. The inal orders prohibit CarMax, dent used vehicle dealers regarding Securities, Inc. are acting as joint book-running managers for the pro- Asbury and West-Herr from claim- retail sales, consumer traic, proiting that their used vehicles are safe, ability and economic conditions. posed ofering. The survey, conducted in partnerRobert W. Baird & Co. Incorporat- have been repaired for safety issues, or have been subject to a rigorous inship with Equifax during the irst ed, William Blair & Company, LLC, BMO Capital Markets Corp. and spection, unless they are free of open quarter of 2017, showed conidence JMP Securities, LLC are acting as recalls, or the companies clearly and in all of those areas was up substanconspicuously disclose that their ve- tially from the previous quarter and co-managers. The proposed ofering will be hicles may be subject to unrepaired year over year. Nearly two-thirds of respondents made only by means of a prospectus. recalls for safety issues and explain Copies of the preliminary prospec- how consumers can determine a ve- indicated they believe the economy will improve in the next quarter, a tus, when available, may be obtained hicle’s recall status. The orders also prohibit the comsigniicant increase from the previfrom Wells Fargo Securities LLC panies from misrepresenting mate- ous survey, in which only 34 percent and BofA Merrill Lynch. A registration statement relating rial facts about the safety or recall expected economic improvement, to these securities has been iled status of the used cars they adver- and the 36 percent of the irst quarter 2016 – that year’s highest perwith the SEC, but has not yet be- tise. In addition, the orders require the centage. Just 2 percent said they excome efective. These securities may

pect the economy to decline, down from 22 percent in the fourth quarter survey. It’s the irst time since the third quarter of 2015 that a majority of survey respondents have expressed a positive outlook on economic conditions. That optimism is relected throughout the survey. More than half (53 percent) of the respondents plan to invest in more retail inventory, up from 41 percent in the previous survey, and 54 percent expect to hire new sales staf (up from 32 percent), as 70 percent anticipate retail sales to grow (up from 46 percent) and 71 percent expect customer trafic to increase (up from 36 percent). On the inancial side, the percentage of dealers expecting cash low to improve (57 percent, up from 34 percent) and credit availability to expand (32 percent, up from 23 percent) over the next quarter was also sharply higher.

PAGE 16

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 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

70 Years Can’t Be Wrong!

Columnist: Tony Moorby Circulation: Helen Thomas Production: Tom Savage, Production Manager Cee Lippens, Web Master & Graphic Designer

Vol. 23 • No. 2 Used Car News is published the irst 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 irst time advertisers must accompany the insertion order. Distribution is guaranteed by the USPS. he advertising reservation deadline is 12:00 noon hursday, 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 speciications please email colleen@usedcarnews.com.

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


USED CAR NEWS

April 17, 2017 • 5

Cars.com, Kelley Score High looking for a

ONE STOP SHOP to fund your dealership needs?

WE BUY BHPH NOTES AND A WHOLE OL LOT MORE! OR • Local Point of Service in YOUR Market

• Bulk Purchase Program with NO hassles

• Stream of Payment Advances (6-15 months)

• Aged Pay Share Program that gives you Capital and Cash Flow!

• Floorplan for select BHPH Dealers for BHPH Vehicles with NO audit fees

• Servicing for all types of Auto Receivables • Backup Servicer and Custodian for Banks and Finance Companies

The recently published J.D. Power 2017 U.S. Automotive Website Evaluation Study Cross-Device inds that, in general, third-party auto websites have a variety of individual strengths and weaknesses in terms of content delivery. The study examines websites that vary as to speciic function, but that deliver information to prospective automotive vehicle customers. The study examines which current site functions and designs are most effective in helping shoppers narrow their consideration set and increase their likelihood to recommend and return to that website. “Over the past ive years, we’ve seen an explosion of innovation that has been employed by third-party automotive sites, among others, to guide automotive shoppers through the process,” said Thomas King, vice president of PIN OEM operations, media & marketing at J.D. Power. “However, in the end, it always comes back to content and we have found that the top-performing sites are better at delivering key information on diferent devices.” The redesigned study concurrently evaluates automotive third-party websites from two perspectives, across both the desktop and the mobile platform: overall site function,

and the importance of various site features to online shoppers. Kelley Blue Book, the study shows, provides comprehensive vehicle viewing information, including 360-degree interior/exterior views, as well as intuitive dealer locator and inventory search tools. The latter are especially important to shoppers who are immediately involved in the vehicle selection process. The study ranks satisfaction with desktop and mobile rankings platforms separately. Both rankings are based on the combined index scores of the four measures that comprise the overall website experience: navigation; appearance; information/ content; and speed. The study bases satisfaction on a 1,000-point scale. Among the four main measures, website satisfaction is lowest for navigation. Cars.com ranks highest in overall satisfaction with automotive third-party desktop websites (798), followed by Edmunds.com (797) and Carfax (785). Kelley Blue Book ranks highest in overall satisfaction with automotive third-party mobile websites (794), followed by CarGurus (790), The Car Connection (782), and U.S. News Best Cars (782).


6 • April 17, 2017

USED CAR NEWS

Dealers Face Challenges Benchmarks for the buy-here, pay-here business are the worst in two decades, and could get even worse, according to Ken Shilson, founder of the National Alliance of Buy-Here, Pay-Here Dealers. Buy-here, pay-here dealers today face an array of challenges, including increased regulations, changes in accounting practices, higher inventory costs and increased competition. “You just need to be a better operator these days,” Shilson said. The NABD benchmarks show For Cars, Trucks and Vans

that gross proit has declined to 29 percent of vehicle sales from 31 percent last year. Bad debts as a percentage of sales have grown to 27 percent from 25 percent last year. Shilson said the answer isn’t to try growing out of the situation. Too many dealers have already taken on extra debt, with total debt growing to 62 percent of total assets from 56 percent last year. he said. The better solution is to make operations more eicient.

SmokeLess Motor Oil

SIMPLY STOPS OIL SMOKING! Money Back GUARANTEE

North Americas #1 Seller Because it WORKS! ENTEK Smokeless Motor Oil is used by more automotive professionals than any other similar product.

ENTEK dramatically reduces Hydrocarbon & Carbon Monoxide emission! Immediately upon changing the oil and filter, your vehicle will no longer smoke and it will continue to run cleanly as long as you continue to use Entek SmokeLess Oil. Entek SmokeLess Oil is a synthetic lubricant and is not an additive. If you are not completely satisfied with the performance of this exceptional product, we will pickup the unused portion for an immediate, no questions asked refund.

With the purchase of ENTEK SmokeLess Oil, you have purchased more than good oil, you have purchased guaranteed GREAT RESULTS! ee

oll Fr Call T

Entek Smokeless Oil has been specially designed to retard oil burn off in older engines and provide maximum protection against engine wear.

WEB SITE SAVINGS WWW.SMOKELESSOIL.COM

ENTEK Corporation

2158 45th Avenue #215 • Highland, IN 48322 Ordering 1 888-670-4300 • Customer Service 1 888-251-5585 Automotive Products Division • www.smokelessoil.com • All Major Credit Cards Accepted


M RE 10 TURNS PER YEAR

CUSTOMIZED OPTIONS TO HELP ME BECOME A MASTER OF TURN TIME*

CHRIS HAUS | HAUS AUTO GROUP | CANFIELD, OH

NextGear Capital gives me the analytics to help me run my business without worrying about money. Sometimes you forget it’s a floor plan company because they’re a capital source that understands the car business. NextGear Capital is reliable, helpful, and makes it simple and easy to do business. CHRIS HAUS | HAUS AUTO GROUP Smart. Simple. Fast. | Learn how Chris gets MORE at nextgearcapital.com *This testimonial was received via interview, audio and/or video submission. This testimonial is based on this dealer’s individual experiences, reflecting real life experiences of a NextGear Capital dealer. NextGear Capital does not claim they are typical results that dealers generally will achieve. This dealer’s experiences may not be indicative of future performance or success of any other dealers. Some of the testimonial has been shortened so the whole message is not displayed due to length and/or relevance.


8 • April 17, 2017

USED CAR NEWS

GSA SALES GOVERNMENT SALES OFFER STRONG BENEFITS FOR AUCTIONS By Jeffrey Bellant

During the past three years, the U.S. Government Services Administration (GSA) has sold an average of 36,000 vehicles annually through wholesale auto auctions, according to Bill Toth, who oversees GSA’s fleet vehicle and lease acquisitions. The average selling price of GSA vehicles in recent years is $10,602. “The GSA buys new vehicles from the manufacturers and leases them to other federal agencies,” Toth said in an email. “When a vehicle’s leasing period ends, it is sold to the public through auction. Vehicles sold at auction have been used by government agencies for ordinary transportation purposes.” Mid-State Auto Auction in New York Mills, Minn., and Missouri Auto Auction in Columbia, Mo., regularly run GSA sales. “The positive side is you can get a lot of cars with good miles on them, in good condition that you can sell to customers,” said Rob Thompson, president and general manager of Mid-State Auto Auction. Thompson has been running GSA sales for five or six years. Kevin Brown, owner/ general manager of Missouri Auto Auction, has had a GSA sale for about six or seven years. Brown first bid on a GSA sale to bring in solid vehicles and new buyers. Participating GSA Fleet Vehicle Sales auction locations are selected through an open solicitation / competitive contracting process, Toth said. The factors that impact the award of a contract are: the vendor’s ability to meet the contract requirements; the auction location; and the price of the services. “Maximizing the sales proceeds from the disposal

of vehicles plays an important role in our operation, as GSA Fleet does not receive appropriated funds,” Toth said. “The money raised from the sales is used to buy new vehicles for the fleets.” Toth said GSA originally held its own auctions and later migrated to working with commercial auctions. “A national auction contract was established to streamline the process and improve consistency,” stated Toth. The age and mileage of vehicles are determined by federal regulations. Most new government vehicles for are delivered in spring and summer, which is why many GSA sales are held between spring and fall. “Our first GSA sale this year is going to be April 21,” Thompson said. That’s pretty much in line with years past. They will go out until November.” In a typical year, MidState Auto Auction will run between 500 and 600 GSA units. Thompson said the schedule of the GSA selling season depends on when the new cars come in. “We do the marshaling, too,” Thompson said. “If we run the cars when we get them, then a lot more depends on the manufacturers than it does anything else.” Along with extra cars

and customers, the GSA contract does bring some extra work. “New cars will get dropped off here,” Thompson said. “We’ll get the cars prepped and get them ready to go. Then we’ll do a swap-out with the GSA customer.” The auctions will work with individual GSA employees who bring in the old car and pick up their new one. “There’s always going to be a little extra challenge with something like this,” Thompson said. “You’re coordinating with an individual for each car. With dealer consignment, you might go to a dealer and pick up 20 cars for the auction. If you have 20 GSA units, that’s 20 different swaps.” Thompson said there is some prep work to do once a new car is taken off a semi-truck. “You have to put antennas on and license plates – some minor stuff like that,” he said. Sometimes the auction will deliver the new car to the GSA customer - which the auction receives payment for - and sometimes the customer will pick it up from the auction. Brown said the extra work isn’t a big problem. Despite the added work that comes with swapping out 350 vehicles and putting them up for sale, it

NEXT ISSUE: DEALER LIFE

doesn’t require additional staff, Brown said. “We have it dialed in,” he said. “We’re just able to mix it in with the rest of our fleet. I’m sure with some of the larger sales, they may have to do something different.” Brown has a process during the vehicle exchange with GSA employees. “We’ll have a meet-andgreet with their clients,” Brown said. “We’ll walk around the car that they’re turning in. “We’ll exchange the license plates. It’s a really pleasant experience.” Both Brown and Thompson said GSA is a good client. The staff of GSA makes the experience go well, Thompson said. “They are very good people to work with,” he said. “They really look at it like they are partners with you. They work with you to have success. I like that about them. “They’re excellent to work with, in my opinion.” GSA is also attentive to the process. “They come in quite a bit to walk around the cars and check how we’re doing,” Brown said. “It’s a pretty good account.” Auctions have to keep up their end of the deal, if they want to hang on to the account. Brown said the multiyear contract with GSA is not an automatic renewal.

“You always have to bid it out,” he said. The benefit of winning a GSA bid is that it gives the auction a better handle on how much they want to bid when the contract is up the next time if they want to keep the account. What else makes the GSA account attractive to auctions? “More than anything what GSA does is bring you a buying crowd,” Thompson said. “It’s good because you learn what people want.” Later, when the auction is holding its regular sale, auction staffers can get a sense of what certain buyers will want based on what sold at GSA, he said. “It introduces some buyers that you might never see without the GSA sale,” Thompson said. “Very seldom would these be less than 100-percent sales. “They are very motivated. They are here to sell. They are here to sell everything.” Brown said it’s always beneficial to offer good quality vehicles to his customers. “GSA is a good account,” he said. “They are great to work with. They draw a lot of buyers in and they help the rest of our sales.” Toth said over the past five years, GSA Fleet vehicle sales have on average sold for 111.5 percent of Black Book.


Your source for quality, selection and value: Chase. A broad selection of pre-owned vehicles from an industry leader. May 2017 Chase High Lines, featuring Jaguar Land Rover Financial Group

Chase ADESA Boston May 5, 12, 19 508-626-7000

ADESA Tulsa May 12 918-437-9044

Manheim New Orleans May 17 985-643-2061

ADESA Boston May 12 508-626-7000

Manheim Nashville May 10 877-386-5004

Manheim Riverside May 4, 18 909-689-6000

ADESA Brasher’s May 16 916-991-5555

ADESA Washington DC May 3, 31 703-996-1100

Manheim Orlando May 2, 3, 9, 16, 23, 30, 31 800-337-8491

Manheim Atlanta May 24 404-762-9211

Manheim Orlando May 3, 31 800-337-8491

Manheim Tampa May 25 800-622-7292

ADESA Charlotte May 11, 25 704-587-7653

Columbus Fair AA May 10, 17 614-497-2000

Manheim Dallas May 3 877-860-1651

Manheim Palm Beach May 17 561-790-1200

ADESA Chicago May 5 847-551-2151

Manheim Atlanta May 11, 24, 25 404-762-9211

Manheim Milwaukee May 3, 31 262-835-4436

Manheim Pennsylvania May 11, 25 800-777-2053

ADESA Cincinnati/Dayton May 9 937-746-4000

Manheim Dallas May 3, 17, 31 877-860-1651

ADESA Golden Gate May 9, 23 209-839-8000

Manheim Denver May 3, 31 800-822-1177

ADESA Houston May 10, 24 281-580-1800

Manheim Detroit May 11, 25 734-654-7100

ADESA Indianapolis May 9, 23 800-925-1210

Manheim Fredericksburg May 4, 18 540-368-3400

ADESA Kansas City May 9, 23 816-525-1100

Manheim Milwaukee May 3, 17, 31 262-835-4436

ADESA Lexington May 4 859-263-5163

Manheim Minneapolis May 24 763-425-7653

ADESA New Jersey May 11, 25 908-725-2200

Manheim Nashville May 10, 16, 17 877-386-5004

ADESA Salt Lake May 16 801-322-1234

Manheim New Jersey May 3, 17, 31 609-298-3400

Manheim Palm Beach May 17 561-790-1200 Manheim Pennsylvania May 11, 12, 25, 26 800-777-2053 Manheim Phoenix May 4, 11, 18, 25 623-907-7000

Mazda Capital Services Manheim Pittsburgh May 3, 31 724-452-5555 Manheim Riverside May 2, 4, 18, 30 909-689-6000 Manheim Seattle May 24 206-762-1600 Manheim Southern California May 11, 25 909-822-2261 Manheim Tampa May 25 800-622-7292 Southern AA May 3, 31 860-292-7500

Choose Chase on ADESA.com and OVE.com for quality bank-sourced vehicles.

ADESA Boston May 5, 19 508-626-7000

Manheim Fredericksburg Manheim Pennsylvania May 18 May 12, 26 540-368-3400 800-777-2053

ADESA Houston May 24 281-580-1800

Manheim Milwaukee May 17 262-835-4436

Manheim Pittsburgh May 3, 31 724-452-5555

Columbus Fair AA May 17 614-497-2000

Manheim Nashville May 17 877-386-5004

Manheim Riverside May 2, 30 909-689-6000

Manheim Atlanta May 25 404-762-9211

Manheim New Jersey May 3, 17, 31 609-298-3400

Manheim Seattle May 24 206-762-1600

Manheim Detroit May 11 734-654-7100

Manheim Orlando May 9 800-337-8491

Manheim Tampa May 25 800-622-7292

Subaru Motors Finance ADESA Boston May 19 508-626-7000

Manheim Fredericksburg Manheim Pittsburgh May 4 May 3, 31 540-368-3400 724-452-5555

ADESA Salt Lake May 16 801-322-1234

Manheim Milwaukee May 3, 31 262-835-4436

Manheim Seattle May 24 206-762-1600

Columbus Fair AA May 10 614-497-2000

Manheim New Jersey May 17 609-298-3400

Manheim Southern CA May 11 909-822-2261

Manheim Dallas May 17 877-860-1651

Manheim Orlando May 2, 30 800-337-8491

Southern AA May 3, 31 860-292-7500

Manheim Detroit May 25 734-654-7100

Manheim Pennsylvania May 12 800-777-2053

Contact auctions directly for current sale information.

*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. ©2017 JPMorgan Chase Bank, N.A. Member FDIC (17-005) 5/17


10 • April 17, 2017

USED CAR NEWS

Santander Settles with States

LANE POWER AT YOUR FINGERTIPS. SAY GOODBYE TO WAITING FOR YOUR DREAM INVENTORY TO COME DOWN THE LANES.

With BMW Group Direct, the auction comes to you. This easy-to-use online auction provides convenient and eficient access to off-lease BMW Group vehicles. You can perform research, enter proxy bids, purchase, and even arrange unit transportation without ever having to leave the comfort of your ofice. With all this convenience and a lat $250 buy fee on open sales, there is no better way to ill your lot. Be among the irst to shop BMW and MINI inventory at BMWGroupDirect.com.

Register today at BMWGroupDirect.com

©2017 BMW Financial Services NA, LLC. MINI Financial Services is a division of BMW Financial Services NA, LLC. The BMW and MINI names, model names and logos are registered trademarks. BMW Group Financial Services is located at 300 Chestnut Ridge Road, Woodcliff Lake, NJ 07677.

Santander Consumer USA Holdings Inc. has agreed to pay almost $25 million in ines and restitution to consumers in two states. The investigation, handled jointly by the fraud divisions of the Delaware and Massachusetts attorney general’s oices, revealed that Santander allegedly funded auto loans without having a reasonable basis to believe that the borrowers could aford them. In fact, Santander predicted that a large portion of the loans would default, and allegedly knew that the reported incomes, which were used to support the loan applications submitted to the company by car dealers, were incorrect and often inlated. “After years of combatting abuses from subprime mortgage lenders, these practices are unfortunately familiar,” said Massachusetts Attorney General Maura Healey. The investigation by Delaware and Massachusetts also revealed that Santander was allegedly aware that certain dealerships had high default rates due, in part, to the regular submission of inaccurate data on loan applications – most often involving inlated income – but Santander continued to purchase loans from those dealers anyway and, in some cases, sell them to third parties. The AG’s oices found that

Santander’s own internal audit concluded that the company’s oversight of auto dealer conduct when making subprime loans was inadequate. Despite identifying a group of dealers that had extremely high default and delinquency rates and other problems, the company continued to fund loans through these dealers. Santander also allegedly identiied a group of dealers it called the “fraud dealers,” but continued to fund loans through them. The Massachusetts settlement includes $16 million in relief to more than 2,000 afected consumers and a $6 million payment to the state. Santander has also agreed to implement new oversight policies. Santander will provide consumer relief in Delaware by paying $2.875 million into a trust for the beneit of harmed Delaware consumers. A trustee will be appointed to locate and pay restitution to hundreds of eligible harmed Delawareans who inanced vehicle purchases through Santander. Santander will also pay just over $1 million to the Delaware Consumer Protection Fund, which pays for work on consumer fraud and deceptive trade practice matters and other consumer-oriented investigations and legal actions. Continued on next page


USED CAR NEWS

April 17, 2017 • 11

Santander – Continued from prior page The agreement also requires business reforms by Santander, including: procedures to screen loans originated by Delaware dealers to ensure that they are in compliance with Delaware law and that minimum documentation requirements are met; not waiving those screens or documentation requirements with respect to Delaware dealers identiied as “high risk”; and not selling to a third party any loans purchased from Delaware “high risk” dealers that have failed a screen or the documentation requirements.

Santander has also agreed, on a prospective basis, to identify and repurchase subprime loans sold to third parties that it later determines do not comply with Delaware law. This is the second settlement between Healy’s oice and Santander relating to its role in subprime auto lending in Massachusetts. In November 2015, the AG’s oice brought an action relating to Santander’s funding of loans that allegedly included expensive insurance coverages, which caused the inance cost to exceed the state usury limit.

Show Me the Money! Our Income Stream and Payment Sharing Programs are the ideal way for you to raise capital and maintain control of your accounts. You continue the collecting…. You keep the customer… You make more money! Up to 90 cents on the dollar No aging required

WE PU R C H A S E “ B U Y H ERE - PAY HE RE ” AC C OUNTS

800-467-5172 www.sdainc.net Providing Capital to BHPH Dealers Nationwide Since 1990


12 • April 17, 2017

USED CAR NEWS

Economist Sets Retirement Cox Automotive announced that chief economist Tom Webb will retire on June 30. Webb has spent four decades in the automotive industry, working on both the retail and wholesale sides. “Tom has been an invaluable resource in the automotive industry for years, and his contributions are countless,” said Sandy Schwartz, president of Cox Automotive. “While Tom will be missed by us and many in the industry, everyone at Cox Automotive wishes him all the best in his well-deserved retirement and next chapter. He will always be a big part of the Cox Automotive family.” Webb joined Manheim as chief economist in 2000. He authored the annual Manheim Used Car Market Report as well as developed and implemented the Manheim Used Vehicle Value Index. “Like many others, I consider Tom one of the leading authorities and most credible voices in vehicle remarketing today,” said Janet Barnard, president of Inventory Solutions for Cox Automotive. “Our industry has relied on Tom’s insights into economic and remarketing trends to guide business decisions and help evolve the marketplace. We can’t thank Tom enough for all

he’s done for Manheim, our clients and our industry.” Prior to joining Ma n h e i m and Cox Automo tive, Webb spent 26 Tom Webb years with the National Automobile Dealers Association as a spokesman and analyst for the nation’s franchised new-car dealers. In 1999, Webb left NADA to become a senior manager in PricewaterhouseCoopers’ automotive practice. “Sooner or later most people arrive at this point, but I can say with total conviction that I’ve had nothing less than a fascinating, hugely satisfying career,” Webb said. “I had the privilege of serving some of the best dealers in the country during my time at NADA, but my fondest memories involve the many Manheim clients I’ve come to know during the last 17 years. “Above all else, I’m forever grateful for all the relationships I forged over the years.”

WYNN | ENCORE RESORT & CASINO

SAVANNAH, GA

Have You Heard The News? Southeastern Auto Auction is Now Offering Vehicles from:

1000 Vehicles Weekly 1000 Vehicles Weekly WEDNESDAYS

THURSDAYS

9:30AM DEALERS ONLY 750+ Vehicles

7PM PUBLIC SALE 250+ Vehicles

EVERYWEEK: All Float/Free Breakfast

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

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


USED CAR NEWS

April 17, 2017 • 13

PEOPLE IN THE NEWS KAR Hires Execs KAR Auctions Services Inc. has illed a pair of executive positions. Thomas “Tom” Fisher has joined the company as executive vice president and

Thomas Fisher chief information oficer. Fisher will be a member of the company’s senior leadership team reporting to Jim Hallett, chairman and CEO of KAR. Fisher will be responsible for oversight of KAR’s information

technology strategy, operations and activities. Working across KAR’s remarketing platform, Fisher will design and implement an enterprise strategy that leverages KAR’s technology assets to deploy the company’s customer insights and product solutions. Prior to joining KAR, Fisher served as senior vice president of cloud operations and general manager at Genesys. He previously served as chief services oicer for Interactive Intelligence, a publicly traded, Indianapolis-based software and cloud developer recently acquired by Genesys. Fisher graduated from Ohio University with degrees in biology and communications systems management before beginning his career as an IT analyst with Andersen

Consulting and applications consultant at Cisco Systems. Sriram “Srisu” Subrahmanyamm has joined KAR as senior vice president of business transformation. Subrahmanyam brings more than 20 years of executive operations and consulting experience to the role, including leadership positions across multiple companies and industries such as aviation, technology, logistics and education. Subrahmanyam will report to Don Gottwald, chief operating oicer for KAR. Prior to joining KAR, Subrahmanyam served as global vice president of engineering for Ingram Micro, the world’s largest wholesale technology distributor. He previously served as executive vice president and chief opera-

tions oicer for BrightPoint Americas and in executive leadership positions at Career Education Corp. and United Airlines. Subrahmanyam holds a doctorate in chemical engineering from Purdue University and a bachelor’s degree in chemical engineering from Birla Institute of Technology and Science in Pilani, India. Richard Howse has joined the company as chief commercial oficer. Howse brings more than 30 years of automotive industry leadership to the role, which will focus on developing customer solutions that integrate KAR’s capabilities and businesses. Howse will report to Don Gottwald, chief operating oicer for KAR. Prior to joining KAR, Howse served as senior vice president of mar-

keting and business driving loor plan sales development at Volk- growth across mulswagen Credit, where tiple states as director he was previously the director of remarketing. He has also served in senior inance roles at GMAC and GE Capital and leadership positions with JD Power, Audi of America, Honda and General Motors.

NextGear Capital Taps Sales VP NextGear Capital named Lisa Mackie to its newly created position of vice president of sales, efective immediately. She is responsible for strategic leadership, vision and execution of the company’s sales efforts. Mackie joins NextGear Capital with more than 20 years of auto inance and commercial sales leadership experience. Most recently, she was responsible for

Lisa Mackie of commercial dealer services at Capital One. Earlier roles included director of commercial acquisitions for Hyundai Capital and vice president for Chase dealer commercial services. A graduate of University of North Carolina at Fayetteville, Mackie began her career in the Ford Motor Credit Manager Training Program.

FOURTH ANNIVERSARY SALE 1000 UNITS

M AY 1 2

9:00 AM

P O S T- S A L E C E L E B R AT I O N

3130 D Street SE, Auburn, WA | 253.737.2200 | daaseattle.com

BUY WITH CONFIDENCE IN-LANE & ONLINE.

INDEPENDENT. CONNECTED. COMMITTED.

All information subject to change without notice.


14 • April 17, 2017

USED CAR NEWS

RETAIL MARKETS ARIZONA Jared Halsted, owner, Double H Auto Exchange, Queen Creek, Ariz.: “We’ve been in business three years. But I’ve been a licensed wholesaler since 2000. I was also the minority partner in a larger dealership for years before this. “I’m a board member with the Arizona Independent Automobile Dealers Association. I irmly believe that every dealer in the state should be a member. “I normally keep an inventory of 50 to 55, with about 40 available for sale. “Being as small as we are, we sell about 15 a month. “Most of the inventory comes from auctions and some of it comes from wholesalers. ADESA Phoenix in Chandler, Ariz., is one of the main auctions I use. I also use Metro Auto Auction of Phoenix and Manheim Greater Phoenix “I do 60 percent buy-here, pay-here, 20 percent cash and 20 percent outside inancing. On buy-here, pay-

here, the average down payment is right around $1,000. Term length is 24 months, only two years. I’m not a traditional buy-here, pay-here, since I have lenders that help me do the buyhere, pay-here funding. “I use Goldstar by Spireon starter-interrupts/GPS. I don’t typically have to use the starter interrupt, since we have a good rapport with our customers. “Average price is $7,500. “Average model year is 2003 to 2008. Average mileage is 130,000, but most of them are less. “I’ve got 50 percent trucks/SUVs and 50 percent are cars. Trucks are my best payers because they need their trucks to work. “I’m a big ‘Buy American’ type guy, but I still sell a lot of Hyundais, Kias and Hondas. So it’s about 50/50 imports to domestics. “The average cost of my recon is probably higher than most buy-here, payhere guys. I’m putting in around $750 on average. I

need to know these cars are good when I send them out. “Advertising is on a ton of websites. My main ones are CarGurus, Carsforsale, Autotrader and Craigslist. “We recently sold a 2001 Ford F-150 4x4, four-door. It had 140,000 miles and sold for $7,900.”

COLORADO Mark Weida, president, Street Smart Auto Brokers, Colorado Springs, Colo.: “We opened our retail lot about six years ago. Before that I was a wholesaler for four years and before that I had over 20 years in bigstore retail working for franchises. “We keep about 60 to 70 in stock for retail. Our target range is to retail about 40 to 50 a month. In April, we should do in the 40s. “The majority of our vehicles are acquired at the dealership level. We do business with most of the franchise stores in town and some stores out of town. We do

Compiled by Jeffrey Bellant source some vehicles from auctions, probably less than 10 percent of our inventory. “We do some subprime but we don’t carry the note on anything. “Our average retail price on the lot for all of last year was $17,200. That has evolved somewhat over the years and big part of that was economics. When I started out, we didn’t have much money so everything was $10,000 and under. “The average model year is 2012. I haven’t run an analysis on average mileage, but if I had to guess it would be in the 60,000 to 70,000 range. “About 40 percent of our business is cars. Then it’s probably 30 percent SUVs, 20 percent truck and the rest would be minivans or specialties. “We probably have an even mix of imports and domestics for cars. On pickups, we’re probably 80 percent domestic. We do a lot of diesels. On SUVs, we’re mainly domestics, just be-

cause of the availability out there. “We opened our own (service) shop about a year ago. It was taking up to four diferent outside shops to keep up with our work. We weren’t turning them as quickly as we wanted to and, obviously, we weren’t always top priority at the other shops. “We opened it primarily to do our own work, but we’ve actually picked up other independent stores in town that don’t have their own shops. “Average reconditioning cost is about $850 last time I looked. “Everything we do in advertising is on the Internet. Right now, we do CarGurus, Cars.com, TrueCar and we do Craigslist. We monitor our advertising and try to keep our advertising costs down to under $200 a car. “One recent car we sold was a 2002 Buick Lesabre. We normally wouldn’t keep an ’02, but it only had 77,000 miles. We sold it for $5,500.”

RESULTS JUST IN … CHRYSLERDIRECT.COM HAS THE VEHICLES YOU NEED. Fresh inventory is rolling in. Fulfill your CPOV and other inventory needs with the off-lease vehicles customers want. Visit ChryslerDirect.com to view available vehicles now!

Why do business with Santander Consumer USA? Because we are...

OUT FRONT Leadership – getting ahead of industry standards – takes many forms. You can always count on us to lead with quality vehicles, service, prices, value, selection, performance and customer satisfaction. It’s why we remain one of the largest remarketers of vehicles in the country. © 2017 Santander Consumer USA Inc. All Rights Reserved. SC-AD_60919-0_030817


USED CAR NEWS

April 17, 2017 • 15

WHOLESALE MARKETS MINNESOTA Rob Thompson, president and general manager, Mid-State Auto Auction, New York Mills, Minn.: “We’ve been in business 33 years. We have four lanes. “We’ve been in the low 400s for volume. Actually, I think we’re a little bit better than this time last year because our ‘sold’ numbers are up. “In March, conversion rates were pretty strong. They ran between 60 and 65 percent. Normally, I would say we’d be at 50 to 55 percent. “You don’t see a spike in prices during tax season like you used to, but the spike in buying is there. I’ve seen people buying in bigger numbers. “I anticipate that March – when we look at how the inal numbers shake out – is going to be the biggest month we’ve ever had in the history of our place. We got some new accounts. Some of our regular accounts had bigger numbers than nor-

mal. We had the cars here and things fell into place. “Consistently, we draw 180 to 220 dealers in the lanes. Predominantly they come from Minnesota, but we also draw a lot from Fargo, N.D., and some from South Dakota. “As the weather’s gotten warmer and business has picked up the mood of the dealers has gotten better. January was kind of a tough month and then February got a little better. The attitude of the dealers over the last month or two has been really good. “We’re probably 80 percent to 85 percent dealer consignment. On the nondealer side, we get repos, police coniscations and we’ve gotten into some cooperatives. In those cases, businesses join a co-op for like school districts and things like that, so we’ll get some cars that way. “Non-dealer consignment seems to be growing for us. We also have national accounts.

“The average price in the lanes is running about $5,000. That might be up a little bit from this time last year. It’s not dramatically up, but we’ve been selling a lot more late model vehicles. We’ve been moving a lot more $20,000 and $30,000 pieces than we had last year. “We sell a lot of cars online. We use Edge Pipeline. It’s working very well for us. We have about 60 to 65 people online every week. We’re selling cars online. “SUVs and trucks have been doing super. Vans have been good if you can get newer ones.”

OHIO Robert Fahey, Value Auto Auction, Crooksville, Ohio: “We’ve been in business 13 years. We have six lanes. Our (April 6) sale, we ran six lanes. “We’ll run between 550 and 700 units. That’s probably up about 140 units year-to-date. That’s over

the three months. I just (attribute) it to hard work. “Conversion rates are up. They’re always up this time of year, but they’re up even higher from last year. This time of the year they are typically 61 percent to 62 percent. “Tax season is starting to wane. But it was very strong recently, which surprised me. I thought we were over the hump. “Over the irst three months of 2017, we had 684 buyers representing 437 customers. One recent sale there was 262 bidders. “They all seem to be in pretty good moods. The franchise dealers seemed to have slowed down a tad, but not a lot. “Non-dealer consignment is right at 15 percent of our total volume. Basically that’s bank repos. We’ve seen an increase in those. “Average price in the lane is $4,297. “Twice a year we have what we call a specialty sale. This includes powersports,

Compiled by Jeffrey Bellant collector cars, boats and motorcycles. Sometimes there are even a few tractors thrown in. That’s coming up on May 4. We usually run around 150. “We also run a tow lane at the beginning of the sale. Anything that doesn’t run is in that lane, whether it’s a repo or a dealer consignment vehicle. That’s about nine or 10 units. “For our regular sale, we simulcast all six lanes. It’s really picked up. It’s on the rise. We had a buyer last week that bought 11 online. “I read stuf all the time about overall trends, but do I see anything that’s new? Not really. “I think the year is going to be good. There are some positives, like there are going to be more cars in the market. In a supply-and-demand economy, it’s going to drive the prices down, but that is good for buyers. At the same time, it might not be good for lease companies or banks - people who need to sell inventory.”


16 • April 17, 2017

USED CAR NEWS

DISCONNECTED JOTTINGS FROM The spring here in the Mid-South is nearly always a roller-coaster ride going from hot to cold and dry to soaking wet.

TONY MOORBY

nately, no one was hurt, a stark reminder of Mother Nature’s temper left a trail of downed trees, including one in our backyard, along with

Tony Moorby • 50-year veteran of the industry • President from 1997–2000 of ADT Automotive • Served as ADESA’s executive vice president of sales and marketing • Moorby & Associates 2006–present • Awarded the Ring of Honor by NIADA • NAAA Hall of Famer

Warm fronts from the Gulf of Mexico battle it out with cold Canadian fronts still trying to make their presence felt, gradually diminishing to allow the cloying onslaught of muggy summers. The lines between the two deine a constant joust of squall lines and thunderstorms with the inevitable damage to life and limb. An EF1 tornado passed within a half mile of our house and though, fortu-

damaged roofs and buildings. This was just a glancing blow – others have had lifetimes of belongings stripped away within seconds and sadly, lives, too have been lost. This year’s winter was almost non-existent. I always think that a day over 32 degrees is a day stolen from winter and so we’ve had one of the warmest ones on record. That’s the good news. The bad news is that early-

blooming trees like magnolias, forsythia and the like were charmed into blossoming early, only to be caught in cold snap that turned purple-pink cups and gaudy yellow whispers into ugly brown ists shaking at the weather. Now it seems a little more settled, though the threat of frost persists, and our cherry trees have been pink puballs that are now covering the driveway in a snow like carpet. Redbuds ranging from lilac to puce are as showy as I’ve ever seen them. Wildlife has been tempted out early. On the trip to and from school we navigate a hilly vale which hosts a turkey trot and the toms have been strutting around with everything sticking out everywhere, showing of to the hens. Skunks have been all over the place, heralding their sometimes-unseen appearance in the form of their stink. An unfortunate slow gait

C R O S S WO R D 30. Honda model 31. Eco-friendly 33. Rental car time period 35. ___ of the road 36. ___ in class 38. Swedish car 40. Auction listing 41. Ford SUV 43. Drivers’ IDs 46. Boston locale, abbr. 47. Horsepower booster 48. Overhauled Down 1. Nissan SUV 2. Very quick 3. Brake system, abbr. 4. Austin family cars, from the UK 5. Terminated

ifteen as irst light glimpses over the horizon. The “chiew, chiew, chiew” of cardinals, dueling for the top spot, outstrip the eforts of any other birds vying for attention. Even blue jays, the ruians of the avian world, are outdone. Cofee is the only antidote, as sleep is no longer allowed. A nightingale thought it was being clever at two o’clock in the morning last week. All that pretty song deserved was an old shoe hoisted in its direction. I love the spring – it’s truly my favorite time of year despite the risk and reward nature of its awakening. It feels a bit like the new politics. But that’s another subject. I haven’t touched that for a while – perhaps for good reason. Even Mother Nature’s roller coaster looks like a quiet cruise in comparison!

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

By Myles Mellor

Across 1. MX-5 or CX-3 4. Hyundai model 7. Old Saturn 9. ___ Paese cheese 10. Take backs 11. Energy eicient type of light 13. Kia crossovers 14. Time just before 15. No vote 16. Engine part 18. Word in some VW ads 20. Made in the ____ 21. Transport 22. Big name in brake technology 24. Provider of electronics systems 27. Auto part ID 28. Away from home

often results in smelly road kill attracting those ugly turkey vultures. How, in the world, do they eat that stuf? Red-tailed hawks have been wheeling and soaring, looking for love or lunch, both as eagerly, it seems. They look almost haunting when hovering above their domain and then turn away with a surly slap of their wings when disappointed with no reward. Surprisingly close to town, coyotes have been courting. Their nighttime, spine-chilling howls and screeching disturb the quiet of the golf course next door. Amusingly, they echo the sirens of police cruisers, which start them of in a frenzy of a contest with a car and not a canine as nature turns to nurture. The birds’ dawn chorus now starts at around ive

1

6. hey can be seen on billboards 7. Trooper brand 8. Maxima maker 12. Electric vehicle, for short 16. Chevy muscle car 17. Heavenly sphere 19. Transmission and ignition 21. French for this 23. Ferrari SF16-H or Williams-Mercedes FW38, for example, 2 words 24. Veyron maker 25. hey make an Element 26. Unwelcome drivers? 29. Frisbee, e.g. 32. Number on a bus. card

2

3

4

5

6

7

8

9 10

11

12

13

14 15

16

17

18

19

20

21 22

23

24

26

25

27

28

30

29

31 32

35

36

33 37

38

34

39

40 41

42

43

44

45

46 47

48

34. Up to the task

Solution to the 4/03/2017 puzzle 1

2

R

37. Like some

E

A

3

N

E

O

4

G

A

A

5

D

10

A

I

M

L

E

7

R

P

8

U M M N

9

D

6

H

E

A 11

E

O

R A

12

R

I

C

A

T

E

I

E

R

13

renewable energy

A

S

A

14

R

O

I

P

R

N

E

39. Per __ (yearly)

45. Unfortunate

Solution to this puzzle in the 5/1/17 issue. Call 1.800.794.0760 for a FREE subscription.

Y

S 16

O

S

H

O W S

N

O

T

T 19

S

I

X J

20

N

E 17

21

V

A

22

T

O

23

R

S

24

H

D

I

E

V

26

N

J

N

H

27

E

C

T

E

D

C

A M A

R

O

28

F

O

D

29

T

44. Honda SUV

R

T

18

25

42. Old timer

T

15

30

A

U

R

U

R

L

V

31

S

V

P 32

O

Y

A

N

C

G

E

R

33

R

O

35

L

36

I

O

N E

39

T

C

O

V 37

L

I

E

I

R

40

R

Y

L

N

34

R

A M

A

V

38

N

L

H

G

E E

41

E

X

U

S

E

V

E

N

T


2017

&

When Christopher Columbus set out on his voyage in 1492, he didn’t have a map. And while he landed in the history books, the fact is Columbus never reached his intended destination. So what can we learn from this? To get where you’re going, it’s vital to know where you’re headed and what lies between you and your goal, and to have a map to guide you. Which brings us to our theme for the 2017 NIADA Convention & Expo:

CHART YOUR COURSE NIADA provides the maps and knowledge – through the unmatched educational content of the NIADA Convention – to help independent vehicle dealers get to their ultimate destination: success. So let’s get started and set sail toward your goals!

OVERVIEW OF CONVENTION EDUCATIONAL AREAS OF FOCUS: POWER THROUGH LEARNING: Learn how the best performing independent dealers achieve success from acclaimed sales and leadership trainer Dave Anderson of LearnToLead.

OPERATIONAL STANDARDS: NIADA senior vice president of legal and government affairs Shaun Petersen is among the legal and industry experts who will get you up to date on the ever-changing regulatory and legislative issues that affect your business, and offer strategies to stay on the good side of regulators.

BUY HERE-PAY HERE: NIADA national director

CERTIFIED PRE-OWNED: Learn why CPO is the hottest

of 20 Groups Chuck Bonanno and the BHPH world’s best and brightest guide you through best practices in underwriting, collections and more, as well as the latest payment assurance technology.

item in the used vehicle industry and how you can get your share of the record-setting certiied market from 2016 NIADA CPO Dealer of the Year Todd Hoagey and other top CPO dealers.

KEYNOTE SPEAKER: CAPTAIN RICHARD PHILLIPS Keynote speaker sponsored by:

The inspiration for the hit movie Captain Phillips and author of A Captain’s Duty: Somali Pirates, Navy SEALS, and Dangerous Days at Sea, Captain Richard Phillips was at the center of a dangerous drama in 2009 when his merchant vessel, the MV Maersk Alabama, was seized by Somali pirates in the irst hijacking of a U.S. ship in more than 200 years. Having risked his own life to protect his crew, Phillips was taken by the pirates as a hostage and held in a small lifeboat. After a ive-day ordeal, he was rescued by members of the famed Navy Seal Team 6. He’ll offer his perspective on the power of leadership, teamwork, training, belief in self and an unyielding, never-give-up attitude.

Book rooms at The Mirage for only $150 per night including resort fee, in-room Internet and itness center access! USE PROMO CODE: AdUCN

www.niadaconvention.com • 800-682-3837


18 • April 17, 2017

USED CAR NEWS

AROUND THE BLOCK COMPANY UPGRADES FACILITIES

NEED A LIFT?: Manheim Riverside, which features this Volkswagen/Audi Technical Operations Center, is one of the company’s sales that have received major upgrades.

Manheim is on track to complete its five-year, $17 million investment in its four Southern California auction locations in 2018. Enhancements are being made to its physical and digital properties at Manheim California, Manheim Riverside, Manheim San Diego and Manheim Southern Califor-

nia. Collectively, these operations cover 400-plus acres and register more than 577,000 vehicles annually. “We now offer more efficiencies and innovative end-to-end solutions to our clients, improving their ability to source and sell inventory faster and better,” said

Chris Brown, general manager at Manheim Riverside. Manheim Southern California is streamlining the vehicle entry experience for clients and to accommodate more volume. The Fontana-based location has added charging stations for electric vehicles and Xeriscaping to save water. Planned investments include a new Manheim retail advantage recon facility with 14 lifts, as well as a remodeled building to provide an indoor sale for heavy truck, boat, RV and salvage specialty units. Manheim Riverside has added enhanced vehicle imaging booths and vehicle remarketing, and Xeriscaping was installed to conserve water. Manheim San Diego in Oceanside, Calf., renovated the front office and dealer services center and upgraded equipment in the mechanic and reconditioning shops.

Compiled by Jeffrey Bellant

Anniversary Sale Draws Hundreds Charleston Auto Auction’s 16th anniversary celebration on March 17 featured some 1,300 vehicles crossing the block with more than 700 dealers attending. The celebratory event kicked of with live music from The Vistas and a full southern breakfast was provided to all in attendance. Morgan Willis, a ringman at the auction, sang a rendition of the Star-Spangled Banner to a full house. Activities continued throughout the day with vehicles of all types selling in all lanes. Festivities concluded with drawings of $50,000 in cash and prizes. “We are honored to be part of our dealers’ successes over the last 16 years,” said Laura Taylor, general manager of Charleston Auto Auction. “We look forward to continuing to provide premier auction services for many more years to come.”

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: jeff@usedcarnews.com

ONLINE | IN THE LANE 11 Lanes Every Wednesday

MOBILE APP NOW AVAILABLE Connect Anywhere

Bidder Badges

Live Streaming

Front Wheel Drive

R HOLLENSHEAD AUTO

DOWNLOAD NOW

Run Lists

Events


TRANSPORT DISCOUNTS Buy and earn up to $350 toward future transport

Purchase eligible vehicles on DealerBlock this month to qualify for up to 35% transportation discount next month. • Earned transport discounts valid for CarsArrive transportation services • Start earning transportation discount with just ten (10) qualifying purchases!

Learn more at ADESA.com/off-lease

For questions or to ind out how many purchases you need to qualify, contact your ADESA representative or call (888) 526-7326.

© 2017 ADESA, INC.

*Only off-lease, rental, and dealer-consigned vehicles offered in the open sale DealerBlock are eligible; at-auction inventory and vehicles offered in closed sales and private-label sales are not included. Vehicles consigned by Certiied Auction Partners and Repo Service Providers are not eligible. Transportation discount amount cannot exceed the maximum earned amount for each qualifying tier ($150, $250, or $350) and will be displayed on transaction screen when bid is placed. Type 1 transport only; to utilize the earned transportation discount, CarsArrive Network must be selected as transportation provider at time of purchase to qualify for discounted transportation rates. Some loorplan providers do not provide inancing for CarsArrive transport. Contact Customer Connection at (888) 526-7326 to conirm your loorplan provider’s eligibility. ADESA reserves the right to cancel or modify this promotion at any time.

Used Car News 4/17/17  
Read more
Read more
Similar to
Popular now
Just for you