Page 1

July 17, 2017

www.usedcarnews.com

Classic Car Market Stays in High Gear

Photo by Jenny King DRAWING A CROWD: Classic car fans visit the Auburn Cord Duesenberg Automobile Museum in Auburn, Ind., for a recent event. Classic cars remain popular, but buyers are more selective in what they buy. By Jenny King

Rush - Dated Material

Buyer optimism, a healthy economy and a generous supply of vehicles are keeping the classics and collectibles market in high gear. John Crispeno, Manheim Pennsylvania marketing manager, said it is a buyers’ market for classic cars at the auction. Sellers had the upper hand from 2012 to 2015, “with big gains,” but pre-election doubts drove the prices down last year and they are remaining steady. The economy has a “huge efect” on the classics market, Kinney says. For many, these (purchases) are in-

dulgences. Some high-line car purchases are like fashion accessories: what’s “in” comes and goes. Others with deep pockets purchase vehicles as investments. Those with more modest bank accounts may be more cautious, trading by the old saying don’t spend more than you can aford to lose. Demographics will play a big role in the future of collectibles. Like most businesses, the classic car market needs to attract younger buyers to keep the hobby relevant. Barrett-Jackson, the Scottsdale, Ariz., auction long associated with a January mega-sale of collector cars,

said it sold 630 vehicles in Connecticut in June for $23.4 million. Customers included younger buyers and tastes ran to collector pickup trucks and “custom vehicles professionally restored or modiied,” the company said in a press release. Millennials and Gen-Xers appear to be attending its auctions in greater numbers, the company says. And two young teens, working with a parent, rebuilt a Bandit Trans Am and sold it at the auction. While interest in and prices for American cars from the 1950s are lat, and European make values generally are not increasing, muscle cars have recovered from their

post-recession doldrums and are in great demand, according to recent Hagerty valuation reports. “Sales of muscle cars from the ’60s through the ’80s are very active,” said Dave Kinney, publisher of the Hagerty Price Guide. “Younger baby boomers are buying them.” The Manheim Riverside, Calif. auction began selling classics and collectibles in 2016 and is now hosting a monthly classic/muscle car sale through 2017, says Manheim spokeswoman Jennifer Sheran. Broad dealer interest shows that consumers still want the classics, she says. Continued on page 8

Explore AFC’s powerful floorplan solutions on the back cover.


Digital Retailing helps you sell vehicles 6 days faster on average.*


USED CAR NEWS

July 17, 2017 • 3

NAAA Takes Auto Auction Experience to D.C. The National Auto Auction Association is taking steps to improve its members’ odds of future success. One of those steps was a recent “virtual auction” visit to Capitol Hill. The NAAA brought the sights, sounds and excitement of an auto auction, complete with auctioneer, eight colorful quarter-scale cutouts of vehicles and stacks of crisp “NAAA bucks” for bidding to the stafers and legislative aides of the Senate Automotive Caucus members. The mock auction was an interactive part of NAAA’s efort to educate policymakers about the wholesale auto auction business and the vital role auctions play in both the auto industry and the nation’s economy. Prior to the simulation, NAAA presented its new 30-minute video depicting the entire auction process, from vehicles arriving via transport truck, inspection, check-in, repair, painting and reconditioning, photo booth and sale staging

to sales day bidding, and check-out. The ilm also emphasized the credentialing of wholesale dealers. “Promoting and protecting the interests of our members and the industry requires proactively educating as well as advocating,” said NAAA operations manager and legislative director Tricia Heon. Senate Automotive Caucus Chairman Sen. Rob Portman arranged the June 16 meeting. The caucus provides a bipartisan forum where senators can exchange ideas and inluence policy on issues that afect the auto industry. NAAA hosted a reception following the event where the legislative aides had an opportunity for more in-depth discussions with NAAA members. Those included ADESA’s Paul Lips, Heather Greenawald, Elizabeth Murphy and Warren Clauss (NAAA Presidentelect); Cox Automotive’s Craig Amelung and Karyn Wrye; and Independent

STUMPING: ADESA chief financial officer Paul Lips shows a short movie about the auction industry to Congressional aides during a recent visit to Capitol Hill.

Auction Group co-chairman Charlotte Pyle. “I was impressed with the genuine interest and enthusiasm shown by those who attended as well as by the support of the auto caucus,” Pyle said. “It’s rewarding to educate our lawmakers in Washington about our business.” Pyle served as ringman for

the day’s auctioneer, John Nicholls, 2015 NAAA Auctioneer of the Year and president of the Nicholls Auction Marketing Group. In addition to Heon, Sante Esposito, president of lobbying irm Key Advocates Inc., and NAAA CEO Frank Hackett accompanied the delegation. “We received a lot of posi-

tive feedback about our program and about returning to do another in the future,” Hackett said. Looking farther down the road, the NAAA announced the retention of noted automotive industry consultant Glenn Mercer to undertake a 10-year look ahead into the future of wholesale auto auctions.

SAVANNAH, GA

ale! S f f O k ic K y r a s r e Anniv Wednsday, 19th 1000 Vehicles July Weekly Pie Eating Contest With Cash Prizes!

21st

July 19th Through August 9th: Buy & sell to increase your chances at winning some of the $20,000 in cash & prizes that will be given away at the 21st Anniversary Sale. 1000 Vehicles! • $20,000 in Cash & Prizes Free Hamburgers & Hot Dogs

Offering Vehicles From These Accounts:

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

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


4 • July 17, 2017

USED CAR NEWS

NEWS BRIEFS NIADA Partners with Dominion Dominion Dealer Solutions has teamed with the National Independent Automobile Dealers Association as its newest National Member Beneit partner. Dominion will provide its CrossSell Reports to NIADA members at no charge. Additional reporting, such as Cross-Sell Interactive, can be purchased through Dominion. Cross-Sell provides deep insights, including performance measurement, push-pull reporting and trend and market data for more informed inventory, F&I and marketing decisions. NIADA members can save on multiple Dominion products, including Web Control, Cross-Sell Reports, websites and Dominion Dealer Specialties’ on-the-lot inventory services.

CarMax Opens in Silicon Valley CarMax Inc. is celebrating the grand opening of its new store in San Jose, Calif. The San Jose CarMax is located at 750 West Capitol Expressway and has the capacity to stock approximately 340 used vehicles. In celebration of the San Jose store

opening, CarMax and The CarMax Foundation awarded $15,000 in donations and grants to the YWCA of Silicon Valley. Funding from these contributions will help support programs dedicated to eliminating racism, empowering women and promoting peace, justice, freedom, and dignity for all. Support for this organization came at the recommendation of the San Jose store associates.

Carvana Moves into Two Markets Carvana has expanded into two more markets. The online-focused used-car group now operates in Oklahoma City, Okla., and Louisville, Ky. These are Carvana’s irst forays into these two states. Carvana now has locations in 31 markets.

New Vehicle Price Growth Slows Auto Finance Length Reaches AllTime High The average auto loan length reached an all-time high of 69.3 months in June, according to Edmunds.com. That is up 6.8 percent from ive years ago. The average amount buyers inanced recorded the biggest uptick for the year, hitting $30,945 (up $631 from May), also leading to the highest monthly payments for the year, now averaging $517 (up from $510 in May). Edmunds also inds that the APR dipped just below 5 percent for the irst time since February, averaging 4.96 in June. The APR has increased 5.7 percent from a year ago and 13.6 percent from ive years ago.

Average transaction price (ATP) for light vehicles in the United States was $34,442 in June, according to Kelley Blue Book. New-car prices have increased by $511 (up 1.5 percent) from June 2016, while remaining relatively lat (down 0.1 percent) from last month. Transaction prices grew more slowly than normal in June, increasing less than 2 percent.

hicle availability information. The revamped site also ilters inventory search results by speciic features (e.g., leather interior or rearview camera) to help visitors ind the vehicle that is right for them. Once a shopper creates an alert, Honda will notify that customer when the vehicle they are looking for is available. Visitors can view and compare suggestions for other Honda Certiied Pre-Owned Vehicles they may be interested in. The new site enables users to share the vehicles they’re considering with friends and family. Shoppers can compare diferent Honda models to help make their decision. New website design provides a seamless user experience across all platforms, regardless of device. The new www.HondaCertiied. com ofers the latest photos of your favorite Honda vehicles, as well as videos showcasing Honda vehicles in action.

Honda Unveils CPO Website Honda recently debuted a completely redesigned certiied preowned vehicle website at www. HondaCertiied.com. The new site makes inventory the primary focal point for shoppers, introducing a new inventory alert feature for the most up-to-date ve-

PAGE 10

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

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

Vol. 23 • No. 8 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

July 17, 2017 • 5

For Cars, Trucks and Vans

SmokeLess Motor Oil

SIMPLY STOPS OIL SMOKING! Money Back GUARANTEE

CarMax Expands Online

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

By Radiance Cooper

With Carvana Co. capturing so many headlines for its business model, CarMax Inc. has implemented a home delivery method of its own. The transaction process involves several factors from online inancing to online appraisals. CarMax CEO Bill Nash said during a recent quarterly earnings call that customers want this kind of interaction. “This is one component of home delivery and I personally think that consumers want to do more than a transaction online,” Nash said. “To the point where we can make that as easy as possible, make that a much quicker transaction when they come into the store, then that’s a good thing for the customer,” Nash said. Despite new Tesla-inspired state regulations regarding how car transactions take place, Nash said CarMax will continue to provide home delivery because this is an option that many customers want. Nash said CarMax looks to continue improving this process in order to tailor it to speciic customer needs and improve the overall experience. CarMax’s home delivery allows

customers to test drive the vehicle irst before deciding to inish the transaction. If they decide not to buy the vehicle, CarMax takes it back to the store. Nash said the home delivery test is much more than just delivering a car to the customer’s home, but it is the raw experience of interacting with the company. “We think that being able to take the vehicle to their home and having the customer be able to test drive it before they actually purchase it is the right thing to do if we are going to continue to deliver it to the home and at this point there is a small subset of customers that are interested,” Nash said. CarMax is also looking to do more of its inventory acquistion online. Nash said the company’s online appraisal initiative helps CarMax stock the right vehicles. The online system allows customers to receive a value for their vehicle before coming into the store. “It is more proitable than buying it of-site so we’re always trying to drive as much as possible through the line but even given this quarter where we were allowed a little more of-site purchases because of the volume, we’re still able to maintain gross proit per unit,” Nash said.

RELIABILITY YOU NEED Industry-leading service levels Up to an extra $500,000 in contingent cargo insurance

70 Years Can’t Be Wrong!

TECHNOLOGY THAT’S EASY Vehicle Tracking Reports Transportation Management System Text Alerts

SERVICE YOU DESERVE Industry-leading service Available 7 days a week

EXPERIENCE THE DIFFERENCE TODAY! 877-571-6235 | info@metrogistics.com | metrogistics.com | mcnutttransport.com


6 • July 17, 2017

USED CAR NEWS

Classic Cars CLASSICS ATTRACT ATTENTION – CONTINUED FROM PAGE 1 Each Manheim auction determines its interest level in classics sales, Sheran said. Mark Ford, Manheim’s regional vice president for the Southeast, warns that classic cars are not for all dealers. “It is a big investment for a niche market, so it is not the right inventory choice for just any dealer,” Ford says. “You have to be an expert if you are buying a classic car to truly understand what you are getting.” In an economic downturn or period of slow growth used-car dealers may be able to take advantage of reduced prices on collectible vehicles, Kinney said. “Having a few classics on the lot can be a good draw,” he said. Consignment dealer Gateway Classics in Dearborn,

Mich. is having a banner year. Among the 75 vehicles in its expansive showroom in June was a 1935 Ford roadster with 85-horsepower lathead V-8 priced at $70,000. A 2010 Corvette ZR-1 with supercharged 6.2-liter L59 V-8 had an asking price of $95,000. “Beginning in January the market has been very strong,“ says Tony Saif. Gateway, with headquarters in Illinois and operations in 10 states, claims to be the world’s largest classic car company. Figuring a price with the seller is tricky, Saif said. “It’s hard to separate pride and price,” he said. Saif says one of the most surprising transactions in recent months was a 1950 Dodge Power Wagon, com-

pletely restored with updated engine. It sold for $145,000. Competition for vehicles remains stif, although sale results are mercurial. Gooding & Company, a California-based company that sells at the three top venues for classics sales, reported sales of $43 million at Scottsdale in 2016 and $33.4 million at this year’s January event. RM Sotheby’s totals in Arizona were $62.8 million in 2016 and $53.8 million in 2017. At Amelia Island off the coast of Florida, Gooding sold $60.2 million in 2016 and dropped to $30.6 million in 2017. RM Sotheby’s reported sales of $38.6 million at Amelia in 2016 and 79.9 million this year. Part of the success of the

2017 RM Amelia sale was the addition of a private collection that was offered at no reserve. RM boosted its Monterey, 2016 sale in the same manner, hosting a pre-sale auction of a private collection. Some auctions use classic cars as a way to do more than make money for

themselves. ADESA Boston recently hosted its 17th annual classic car show and motorcycle run raised $17,300 through a live auction, show entry fees and sponsorships. All proceeds benefit JDRF, a leading advocacy group for people with type 1 diabetes.

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 NEXT ISSUE: Dealer Life

Run Lists

Events


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

Chase ADESA Boston August 4, 11, 25 508-626-7000

ADESA Washington DC August 23 703-996-1100

Manheim Palm Beach August 9 561-790-1200

ADESA Boston August 4 508-626-7000

Manheim Milwaukee August 23 262-835-4436

Manheim Pennsylvania August 3, 17, 31 800-777-2053

ADESA Brasher’s August 8 916-991-5555

Columbus Fair AA August 2, 9, 30 614-497-2000

Manheim Pennsylvania August 3, 4, 17, 18, 31 800-777-2053

Manheim Atlanta August 16 404-762-9211

Manheim Nashville August 2, 30 877-386-5004

Manheim Riverside August 10, 24 909-689-6000

ADESA Charlotte August 3, 17, 31 704-587-7653

Manheim Atlanta August 3, 16, 17, 31 404-762-9211

Manheim Phoenix August 3, 10, 17, 24, 31 623-907-7000

Manheim Dallas August 9 877-860-1651

Manheim Palm Beach August 9 561-790-1200

ADESA Chicago August 25 847-551-2151

Manheim Dallas August 9, 23 877-860-1651

ADESA Cincinnati/Dayton August 1, 29 937-746-4000

Manheim Denver August 23 800-822-1177

ADESA Golden Gate August 1, 15, 29 209-839-8000

Manheim Detroit August 3, 17, 31 734-654-7100

ADESA Houston August 2, 16, 30 281-580-1800

Manheim Fredericksburg August 10, 24 540-368-3400

ADESA Indianapolis August 1, 15, 29 800-925-1210

Manheim Milwaukee August 9, 23 262-835-4436

ADESA Kansas City August 1, 15, 29 816-525-1100 ADESA Lexington August 10 859-263-5163

Manheim Minneapolis August 16 763-425-7653 Manheim Nashville August 2, 8, 9, 30 877-386-5004

ADESA New Jersey August 3, 17, 31 908-725-2200

Manheim New Jersey August 9, 23 609-298-3400

ADESA Salt Lake August 8 801-322-1234

Manheim New Orleans August 9 985-643-2061

ADESA Tulsa August 11 918-437-9044

Manheim Pittsburgh August 23 724-452-5555 Manheim Riverside August 10, 22, 24 909-689-6000

Mazda Capital Services Manheim Seattle August 16 206-762-1600 Manheim Southern California August 3, 17, 31 909-822-2261 Manheim Tampa August 17 800-622-7292 Southern AA August 23 860-292-7500

Manheim Orlando August 1, 8, 15, 22, 29

800-337-8491

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

ADESA Boston August 11, 25 508-626-7000

Manheim Fredericksburg Manheim Pennsylvania August 10 August 4, 18 540-368-3400 800-777-2053

ADESA Houston August 16 281-580-1800

Manheim Milwaukee August 9 262-835-4436

Manheim Pittsburgh August 23 724-452-5555

Columbus Fair AA August 9 614-497-2000

Manheim Nashville August 9 877-386-5004

Manheim Riverside August 22 909-689-6000

Manheim Atlanta August 17 404-762-9211

Manheim New Jersey August 9, 23 609-298-3400

Manheim Seattle August 16 206-762-1600

Manheim Detroit August 3, 31 734-654-7100

Manheim Orlando August 1, 29 800-337-8491

Manheim Tampa August 17 800-622-7292

Subaru Motors Finance ADESA Boston August 11 508-626-7000

Manheim Fredericksburg Manheim Pittsburgh August 24 August 23 540-368-3400 724-452-5555

ADESA Salt Lake August 8 801-322-1234

Manheim Milwaukee August 23 262-835-4436

Manheim Seattle August 16 206-762-1600

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

Manheim New Jersey August 9 609-298-3400

Manheim Southern CA August 3, 31 909-822-2261

Manheim Dallas August 9 877-860-1651

Manheim Orlando August 22 800-337-8491

Southern AA August 23 860-292-7500

Manheim Detroit August 17 734-654-7100

Manheim Pennsylvania August 4 800-777-2053

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 (17-008) 8/17


8 • July 17, 2017

USED CAR NEWS

RETAIL MARKETS MAINE Lonnie Tinsman, Tinny’s Automotive Outlet, Farmington, Maine: “We’ve been in business for a year. I used to manage a Ford-Lincoln dealership “I keep 65 cars on the lot. We sell 30 a month. “It’s been pretty consistent (over the past six months). “I (acquire vehicles) through auto auctions everywhere. “I go to ADESA Boston, ADESA Concord, Port City in Richmond (Maine), up and down the East Coast, from Manheim New York and Manheim Pennsylvania to Orlando and Tampa. “It’s a little bit of both, (online and in person). “Occasionally I wholesale at auction. “I do a little bit of subprime. I don’t do any buyhere, pay-here. “I work with local banks and credit unions for inancing.

“The average {retail price on the lot) is $15,000. “I probably carry from 2010 and up and average mileage is about 60,000. “It’s pretty easy to get the cars I want. “(Inventory) is about 60 percent SUVs, with the rest cars. “It’s 50/50 domestics and imports. “Average recon costs are $180. We do that work ourselves. We have our own service shop. We do anything. “We do outside work. That’s probably about 60 percent of (our business). We’ve always done service. “For marketing/advertising we have our website and we just do radio. “That’s the same (advertising mix) as when we started. “We recently sold a 2013 VW Beetle convertible. It had 8,000 miles. We sold that for $17,000. “Everything’s going great in our market.”

OKLAHOMA Robert Mulkey, owner, Regal Car Sales and Credit, Tulsa, Okla.: “I’ve been in business since 1986. “We have 15 locations. “We got about 750 (units) in inventory right now. That’s typical for this time of year. “We’re selling about 350 to 370 per month. We’re pretty much even. Both last year and this year are pretty similar. “About 70 percent (of inventory) comes from auction and 30 percent comes from recycled repos. “Yes, I also sell at auctions. We sell every week. We probably sell 50 tradeins, 25 to 30 repos and about ive bad purchases, so about 85 total per month. The bad purchases are those nice little doctored-up units that somebody pawns on us. “We’re 100 percent buyhere, pay-here. “Right now, the average down payment is right at $600. It’s a little lower than

Compiled by Radiance Cooper and Jeffrey Bellant this time last year. “The average term length is 33 months. That term is actually down one-and-ahalf months from this time last year. I think it’s just because of the change in mix of cars and having higher payments. “We do not use GPS or starter-interrupts. We never have. “The average retail price is $11,000. We’re probably up $500 this year over last. “Average mileage is going to come in around 90,000. “Average model year is ’11 or ’12. “For the year we’ve sold over 1,000 cars and about 300 trucks. So we probably sell 23 percent trucks and 77 percent cars. On trucks, it’s probably 60/40 between full-size trucks and full-size SUVs. “I’m going to guess (our inventory mix) is 70 percent domestic and 30 percent foreign, but, again, that’s just a guess. “We do heavy Fords and GMs. But we also pick up

some Hyundais and some Nissans. “Year to date, our average reconditioning costs are $349.75 (per vehicle). We were actually at $350.79 last year. “I would say 95 percent of reconditioning is done inhouse and 5 percent is sent out. But we only do our own work, we don’t do any outside work. We have a central location (to do that work), but we also have one mechanic at every lot. “For marketing and advertising, we’d been using TV and digital. But as of (June) we killed TV and now we’ve gone full digital. We just hired person that does digital marketing. We’re using Facebook, Google and a lot of stuf like that. “We recently sold a 2007 Chrysler 300. It had 130,000 miles. It sold for $5,085. “We’re probably a little up from last year “For buy-here, pay-here, it’s probably the roughest three to ive years I’ve ever seen.”

STYLE IS OUR

MIDDLE NAME CHRYSLER TOWN & COUNTRY JEEP® GRAND CHEROKEE RAM 1500

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

Certified off-lease vehicles are hitting the auction lanes. Build your inventory with vehicles that will have your customers riding in style.

INNOVATIVE Visit ChryslerDirect.com or ADESA.com/dealerblock to view available vehicles. ©2017 Chrysler Capital. Chrysler Capital is a registered trademark of FCA US LLC and licensed to Santander Consumer USA Inc. Lease agreements are owned by CCAP Auto Lease Ltd. and serviced by Chrysler Capital. Chrysler, Jeep and Ram are registered trademarks of FCA US LLC. CC-AD_61107-4 _061917

Keeping a leading position in the industry requires commitment to innovation. You can expect us to seek this in the vehicles we offer, as well as our 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_061617


USED CAR NEWS

July 17, 2017 • 9

WHOLESALE MARKETS GEORGIA Bill McCready, vice president of operations, Southeastern Auto Auction of Savannah, Savannah, Ga.,: “We are celebrating our 21st anniversary in August. “We have four lanes and we run all four. “We run about 700 a week. That is similar to this same time last year. “Overall, this year has been a good year so far. Dealer consignment has been down, but we’ve made up for that with our institutional consignment. “Conversion rates have been at 50 to 60 percent this time of the year. “We’re getting about 350 dealers in the lanes on average. We pull dealers from 150-mile radius. So we get them from Charleston, S.C., Orangeburg, S.C. and Augusta, Ga. We also get them up from the Jacksonville, Fla., area. “One thing we’re seeing is that some of the cars that franchise dealers would

typically send to the auction right away, they’re now taking a shot at retailing them. “About 70 percent of our vehicles are from franchise dealers. Then about 5 to 10 percent of our consignment comes from independent dealers. The rest come from institutional accounts. Those are from banks, credit unions, of-rental stuf from Enterprise and U-Haul. We also get some from C&F Finance, and a bunch of local credit unions, local banks and United Auto Credit, just to name a few. “Repos seem to be a little bit down, which is weird, because typically you’ll see more repos coming up this time of year. “Online, we use Simulcast, OVE, SmartAuction and Openlane. If we’re not able to sell a car in the lane, we’ll put them on those sites. “It gives them an extra opportunity to get those cars sold. It also allows dealers to consign cars even if it’s on their lot. “Our average price across

the block is $6,500. It’s a slight increase from this time last year. “We also have a public sale on Thursday (the day after our dealer sale). This time of the year, we’ll run 120 to 150 for that sale. During tax time we’ll run up to 300. But the average price in that sale is about $1,700. “We feel good about the rest of the year. We’ve had some new additions to the sales force, with one person to spend a whole lot more time in the Florida market. We’ve also done more promotions than we normally have in the past.”

IOWA Mark Greb, owner, Plaza Auto Auction, Mt. Vernon, Iowa: “Plaza has been here since 1962. I’ve owned Plaza since 2003. “We have ive lanes and we’re running three (in early July). “Volumes have been very comparable to this time last year. We’re ofering 300

cars. “We’re averaging 56 percent sold. “The income-per-car is up probably 10 percent over last year, but the oferings and sold amounts are identical to last year. “We average 178 dealers per sale. Lately, the franchise dealers have said that business has slowed down. “About halfway through the second quarter, they said business had been good. But it slowed down a bit. Independents have said business has been OK. “They sell cars when they have the loor traic, but it’s just that loor traic has slowed down a bit, which is typical this time of the year. “Fifteen percent of our cars are leet-lease and bank repos. The other 85 percent is dealer consignment. Some of the repossessions have gone up from this time last year. “Our average price across the block is between $5,000

Compiled by Jeffrey Bellant and $5,500. “We have a powersports sale. We used to do it monthly, but we’ve cut back to doing it quarterly and get a little better response. “Generally we’re ofering about 120 pieces and we’re selling at lease 60 percent. “Most of them are motorcycles, though we do get some specialty vehicles, like campers, four-wheelers and side-by-sides. “But it’s predominantly motorcycles. The next powersports sale is July 19. “We do a truck sale every third Wednesday of the month. We do get a greater number of trucks for that. “Online we use Edge Pipeline and OVE. Participation is getting better. “I think this is going to be a good year (overall). The irst two quarters mirrored the irst two quarters last year. “I think it’s going to pick up in the third quarter and the fourth quarter is going to be good.”


10 • July 17, 2017

USED CAR NEWS

DISCONNECTED JOTTINGS FROM Once upon a time, European automobile styling was clever, chic, sexy even. It used to be the leader that the rest of the world would eventual-

TONY MOORBY

many unnecessary lumps and bumps can be appended to body panels that don’t apparently add anything to aerodynamics. The only maker

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

ly follow. It’s now the equivalent of modern motoring mediocrity. All the eforts to achieve eiciency in aerodynamics, light weight and safety crushable zones have led to the most unexciting designs with fussy, busy engines that admittedly produce a lot of power for their size but seem milquetoast nevertheless. Unfortunately, with a few exceptions, showroom choices ofer a miserable selection. It now seems that design differentiation depends on how

who seems to have stuck to a clean, crisp styling commitment is Audi and the identity maintains throughout their range. As part of the same family, VW follows closely with a visible familiarity from the Up to the Toureg, the Beetle being the only standout, naturally. Even the Asian manufacturers, albeit most of them having facilities in the UK, ofer an emaciated and confusing concoction of cars. Trucks, of course, are still a real second thought in the British mo-

toring mind although, with American inluence, demand is growing with supply ironically coming mainly from Asian makers. French cars are as ugly as their bulldogs – only a Frenchman can get to grips with their Gallic gallimaufry of automotive preferences. They used to be really cool – Citroën Light 15s and DS Pallases competed with Renault Florides and R8s. Now a Renault Mégane Sport looks like its rear end met a malfunctioning Madame Guillotine. To add more madness to the mix, the names of models these days are dumbfounding or unpronounceable, ranging from things that sound like a cup of Starbucks’ coffee to something like a medical ailment. Traveling tribes’ names are trendy – VW has Toureg, Renault has Cadjar, while Nissan comes in with Kashquai – all Middle-eastern nomads. While I used to ind seeing all the European models fascinating, this time it was quite disappointing and I was glad to come home and see some

C R O S S WO R D

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

By Myles Mellor

28. Makers of the Across Ascender 1. Acronym 30. Troublesome for Toyota’s new auto architecture 31. Make a sign 3. Chevy truck at an auction 10. Spectra 32. What the maker elephant said to 11. Wet ground the mouse? 12. Well over the 33. Detach the US speed limits trailer, perhaps 14. Dodge van, 2 35. Countryman, words for one 15. “Heavy class” 37. Suzuki ____ Mercedes Vitara 16. Make a classic 38. Word used in car look like new some stations as a 17. Old VWs gas choice 18. hey race in NASCAR races, Down 2 words 1. Toyota 20. Position pickup 23. Exist 2. Luxury car 24. Honda from Hyundai model 3. Saturn sports 26. Roll Royce car Silver ____

excellent example of stepping out of the mold and shrugging of the staid image of the past. Tuners like Hennessey love to get their power paws on anything from a CTS V to an Escalade bringing a much wider appeal to the younger audience and all the perceptions that marketers attach to these preferences. Performance infers so much these days; the Hellcat has done more for Dodge’s image than any scantily clad blond draped over the hood. Performance as political correctness? Not for long, I fear. Back in the late ‘60s and early ‘70s, size mattered and we see a similar window today. Enjoy today’s muscle and style while we can, lest we end up with the emasculated, laccid eforts of today’s European vision of what’s good for us.

of the exciting advances in styling that have been made here. I was at our local Cars and Cofee this weekend, giving my Morgan an airing with my grandson, and saw the new Lexus LC500 in the lesh for the irst time – it’s absolutely fabulous from any vantage point. To be fair, I’ve been critical of some of Lexus’ recent directions but even the grill on this car is exquisite in terms of engineering and art. The car sets a new standard for up-scale sports sedans. I’ve been equally critical of Lincoln for their fuddyduddy, stodgy styling and the latest Continental is still a statement for the front cover of the AARP magazine. Even the latest ads have the owner sitting in the back! I seriously believe that a lagship American producer can, and should, do way better than this. Cadillac is an

1

4. Roman 2 5. Compact Studebaker 6. Tree 7. Executive car from Kia 8. Made a hole 9. Used car buyer’s concern 13. It’s usually a sports car, 2 words 15. Pursue 17. Formula One racing team named ater a former champion 19. Kia minivan 20. Looked at 21. Trial run (2 words) 22. Mercury compact SUV 25. Old, beat-up car

2

3

4

5

6

7

10 12

8

9

11

13

14 15

16

17

18

19

20

22

21

23

24

25

26 27

28

29

32

33

30

31

34

35 36

37

27. Hawaii welcome 29. Do a 180 31. Light brown color 34. Photo-__ (media events) 36. Mark ___

Solution to this puzzle in the 8/7/17 issue. Call 1.800.794.0760 for a FREE subscription.

38

Solution to the 7/3/2017 puzzle 1

2

3

M A

Y

I

U

B

4

A

C

U

5

6

H

C

P

U

9

O

7

R

O

O

8

L

10

D

A

K

O

T

A

S

L

E

A B

11

E

Q

U

O

I

A

S

12

S

O

O

13

14

I

O

N

A

T

15

M A

16

Z

D

20

Z E

K

24

V

E

A 21

M A

23

E

V

A

N

T

A

R

C

U

19

N

R

R

A M

26

O

A

D

27

I

18

22

25

D

I

17

A

B

L

E

28

N

A

29

L

H

A

R

30

M A

G

U

E

I

C

M A

R

O O

N

I 31

N

32

R

33

I

R

N

O

E

D

U

C

E

39

O

O

40

N

E W

B

O

E

O

H

47

A

41

A

D

G

G

S 44

A

T

E

D

I

A

R

N

A

L

E

45

A

M

48

O

V O

38

42

E

43

D

D 37

B

C

35

36

A

T

34

46

V

R

49

L

I

S

E

O W N


avis budget group

www.hityournumbers.com for CPS financing info


Purchasing power in your palm. AFC puts the tools you need to build your business right in your hands.

C O M P L E T E T R A N S PA R E N C Y W I T H T O TA L A C C O U N T BALANCE CHART

T U R N T I M E TA B L E T O TRACK UNIT PURCHASE H I S T O RY

VIEW BILLS OF SALE AND T I T L E S F O R PA I D - O F F O R U N PA I D U N I T S INSIGHT INTO UNITS COMING DUE SOON

© 2017 Automotive Finance Corporation. All rights reserved.

What sets AFC apart isn’t just the dedicated team located in your community, but a mobile app solution that allows you to easily do business the way you want, wherever you want from the palm of your hand. By leveraging the AFC On the Go mobile app, dealers can take control of their purchasing power to maximize business growth.

Let’s talk shop. Give us a call or a click to find out how we can help you get the tools you need to build your business.

AFCDealer.com® | 888-335-6675

7/17/17  
Read more
Read more
Similar to
Popular now
Just for you