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September 18, 2017

Hurricanes Destroy Thousands of Vehicles

Photo by The Associated Press WASHED AWAY: Vehicles are seen submerged at a dealership off Interstate 45 in Dickinson, Texas. The hurricanes in Texas and Florida destroyed at least a half million units that need to be replaced. By Ted Craig

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The toll of Hurricane Harvey is still being totaled, but while the impact on the lives of people is devastating, the impact on the auto industry looks positive. Hurricane Harvey severely damaged or destroyed between 300,000 and 500,000 vehicles, which translates to $2.7 billion – $4.9 billion in lost vehicle value, according to Cox Automotive estimates. This is likely the worst natural disaster in the nation’s history by measure of vehicle damage. Hurricane Irma was expected to take out another 130,000 to 200,000

in the Florida market. It was too early at press time to know for sure. Those vehicles will be replaced over the months to come. Harvey in essence provided relief to the building inventory pressure on both the new- and used-car sides of the business. In some cases, the process of replacing vehicles is already under way. Cox Automotive’s saw a 16-percent increase in overall dealership website traic and a 26-percent increase in vehicle description page views in the Houston area over Labor Day weekend. It will still take a long time for in-

surance companies to assess losses and then start issuing checks. Mike Smitka, an economist at Washington & Lee University, said many people with negative equity in their vehicles will have to turn to the used market. That should be good for the latemodel segment. It will be a bigger challenge for independent dealers and their customers to replace their vehicles, said Ken Shilson, founder of the National Alliance of Buy-Here, PayHere Dealers. “Many independent operators have sufered big inventory losses and those vehicles will take consid-

erable time and will be diicult to replace,” Shilson said. “Subprime customers who lost their vehicles in the raging water have limited inancial capacity to replace them.” Shilson also expects many consumers to stop paying on outstanding subprime inance contracts as looded vehicles stop running and they lack insurance coverage to repair or replace them. Still, Shilson said, “both Texas and the subprime auto industry will recover from this horriic tragedy.” Trucks will see the biggest segment impact of Hurricane Harvey. Continued on page 5

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September 18, 2017 • 3

Social Media Marketing Takes Constant Attention By Ted Craig

There are three reasons why small businesses use social media, according to digital consultancy Clutch: its cost efectiveness, it’s popular and it allows them to target customers. Missing from this list is the investment in time small business owners, such as car dealers, have to put into their social media marketing. And by social media, most people these days are really talking about Facebook. A Clutch survey found Facebook to be the dominant platform for both consumers and small business owners. Clutch recommends that if small business owners only have the time or resources for one channel, then the best option is likely Facebook. That is the strategy of Kelly Midgett, owner of Kelly’s Automotive in Manteo, N.C. “I wouldn’t be on Facebook if I didn’t have a car lot,” Midgett said. Midgett posts every vehicle in his 40-vehicle inven-

tory both on Facebook and on his website. It’s the only advertising he uses. Facebook grew in popularity as a marketing tool due to its tremendous return on investment. It allowed businesses access to a massive audience at no cost. That is now changing. Midgett said he now has to pay for Facebook to “boost” his posts in order for them to be seen. Social media marketing difers from traditional marketing in the interaction. A post promoting a vehicle for sale does more than inform consumers. It also draws their comments. Sometime that creates problems. Midgett said everybody can share information on Facebook, much of it wrong. For example, he recently posted a 2009 Suburban LTZ with 162,000 miles priced $3,000 below the NADA Used Car Guide value. In the comments, a woman tagged her friend, who then said he paid half as much for a truck with fewer miles. It turns out that truck was

an ’01 and not a top-line LTZ package. “Tagging,” is when somebody on Facebook mentions another person in a post or comment to notify that person. It creates challenges at times in other ways. Midgett said he has been tagged in posts when somebody in the area says they are looking for a car. A few times, Midgett has already dealt with the person and doesn’t want him as a customer.

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For all the hassle, there is a good reason why Midgett uses Facebook – it works. It expands his market and allows him as the only independent in his area to compete with the franchise dealers. “I recently had a family drive over an hour to buy a 2006 Town and Country minivan because they had seen others on Facebook saying we were the best dealer to deal with,” he said.

Midgett is investing even more in Facebook, bringing on a salesperson full time whose duties will include handling the social media accounts. Midgett said that while he is under 40, he’s almost too old to really do Facebook properly. This new employee grew up with it. “If you’re going to be on there, you have to be there and be active,” Midgett said.

4 • September 18, 2017


NEWS BRIEFS CarMax Expands in Maryland CarMax Inc. celebrated the grand opening of its irst store in the Delmarva Peninsula and 7th store in the state of Maryland. The store is located at 1801 North Salisbury Boulevard and has the capacity to stock approximately 140 used vehicles. Customers can also request transfers to the Salisbury CarMax of almost any vehicle from other CarMax locations throughout the country. In celebration of the Salisbury store opening, CarMax Inc. and The CarMax Foundation awarded $8,000 in donations and grants to Junior Achievement of the Eastern Shore. CarMax associates from the Salisbury store recently volunteered with the nonproit and nominated it to receive the contributions.

Millennials Finance Cars at Higher Rate A recent TransUnion study found Millennials’ appetite for new auto loans has grown at a faster rate than Gen X borrowers at the same age points. TransUnion’s study evaluated credit origination trends over 12 months (2015 for Millennials and

2001 for Gen X) for both generations at the same ages between 21 and 34. The study found that Millennials are opening new auto loans and personal loans at a higher rate. The study found 14.58 percent of Millennials opened new auto loans between the ages 21-34. For Gen X borrowers, it was 12.09 percent at the same point.

Carvana Moves into More Markets Carvana unveiled the latest of its Car Vending Machines in Raleigh. N.C. The ive-story, all-glass vending machine is the sixth of its kind, joining those in Houston, Austin, San Antonio, Dallas and Nashville. The Raleigh structure holds 18 cars. Customers will receive an oversized Carvana coin on-site to drop into the coin slot that activates the vending process. Once the car is vended into a delivery bay from the glass tower, the customer takes receipt with a sevenday money-back guarantee. Carvana also has moved into the nation’s largest car market. The company recently launched operations in Los Angeles. This is Carvana’s 37th market.

Ford Goes High Tech for Subprime Consumers Ford Motor Credit Co. and ZestFinance announced the results of a study that measured the efectiveness of machine learning to better predict risk in auto inancing and potentially expand auto inancing for millennials and other Americans with limited credit histories. The study showed improved predictive power. As a result of the study’s success, Ford Credit is developing plans to implement machine learning credit approval models to further enhance its consistent and prudent lending practices across the credit spectrum. The machine learning study compared results from a Ford Credit scoring model with a machine learning model developed by ZestFinance using its underwriting platform to do deeper analysis of applicant data. Ford Credit and ZestFinance found that machine learning-based underwriting could reduce future credit losses signiicantly and potentially improve approval rates for qualiied consumers, while maintaining its consistent underwriting standards.

Index reached a record high for the fourth consecutive month in August. Wholesale used vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) increased 0.75 percent month-over-month in August and 3.4 percent year-over-year. This brought the Index to 131.3. On a year-over-year basis, the midsized car category saw the largest decline (down 0.2 percent) in August, while pickups and vans saw gains greater than the overall market. Other car segments like compacts and luxury saw gains in August too. The average price for rental risk units sold at auction in August was up 1 percent year-over-year, which was the irst year-over-year increase since July 2016. Rental risk prices were up 3 percent compared to July. Average mileage for rental risk units in August (at 41,700 miles) was 2 percent above a year ago.

Manheim Index Sets Record


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

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Vol. 23 • No. 12 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

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September 18, 2017 • 5

Hurricane - from page 1

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Houston is the 10th largest vehicle market, but it ranks even higher as a truck market, with some of the biggest pick-up truck dealerships located there. In addition, the massive amount of construction needed to rebuild the city will also increase demand for trucks. Trucks have already outperformed the overall wholesale market and prices should only climb higher. Smitka said dealers would be smart to start stocking trucks now before demand increases even more as those insurance checks arrive.

There are already press reports of prices climbing at auctions as far away as Ohio. “Replacement demand combined with a reduction in available supply will cause wholesale inventories to tighten for the next two to three months,” said Cox Automotive chief economist Jonathan Smoke. “Supply will be pulled from other regions, so the impact to the wholesale market will be widespread, providing additional support for continued wholesale price gains for at least the next two months.”

Industry Aids Those in Need The automotive industry is rallying to the aid of its dealers and customers in the wake of Hurricane Harvey. The NIADA Foundation has established an emergency relief fund to provide a venue for members of the National Independent Automobile Dealers Association to assist fellow dealers and others in the automotive community devastated by the efects of Hurricane Harvey. Steve Jordan, CEO of NIADA and president of the NIADA Foundation board of trustees, said 100 percent of all contributions received will be donated to provide relief from the efects of looding, help repair property damage and assist with other disaster-related needs attributable to the catastrophic weather event that struck Houston and other areas along the Texas coast. Jordan said the foundation’s goal is to raise $100,000 for the fund. Donations will be made in collaboration with the Texas IADA – NIADA’s state ailiate – and will be considered on a case-by-case basis as identiied through the collaborative disbursement relationship. “We are committed to helping our friends and colleagues in the automotive industry get through this trying time,” Jordan said. “Our thoughts and prayers go out to all those afected or displaced by this massive storm.” On the franchise side, The NADA Foundation has mobilized its Emergency Relief Fund to assist dealership employees who have been impacted by personal property damage caused by the hurricane and looding. The National Association of Minority Automobile Dealers (NAMAD) has spearheaded the NAMAD Disaster Relief Fund to assist employees and families of NAMAD Dealer Members in areas afected by hurricanes. In a member-wide “Call to Action,” NAMAD has asked dealer members to contribute $2,000 for

each dealership they own to this fund. NAMAD has already collected more than $400,000 towards our goal of raising $1 million. Even its dealerships in the afected areas have donated. All of the monies raised will be distributed to NAMAD member dealer employees and their families to help them deal with the loss of income, housing and stability hurricanes Harvey and Irma have created. Some service providers are contributing by donating free use of their systems to afected dealers. For example, Tax Refund Services Tax Max donated a full year of its Tax Max Marketing Program to 100 locations in Houston, Corpus Christi, Galveston, Beaumont and the surrounding afected areas of Hurricane Harvey. “We had to do something to help our friends and customers in Houston and the surrounding areas,” said TRS Tax Max CEO William J. Neylan III. “Being that we are based in Tampa, Fla., we understand full well the devastation from tropical systems, and this is some of the worst we have ever seen. We also know the need will not end when the news cameras go away and donations slow down, so our organization wanted to do something that had a longer lasting efect.” Many auto inance irms are deferring payments for customers in the afected areas. In addition, Toyota and Lexus Financial Services have donated pre-owned Toyota and Lexus cars, SUVs, and trucks to organizations involved in helping move people and property in the recovery eforts. “Access to reliable means of transportation is a critical element to any disaster relief and recovery efort,” said Mike Grof, president and CEO of Toyota Financial Services. “We hope that our donated vehicles will help meet the needs of those afected by Hurricane Harvey.”

6 • September 18, 2017



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Prosecutor Seeks Death Penalty for Lot Murders CLEVELAND (AP) – Prosecutors will seek the death penalty against a man charged with killing a couple at their used car lot in Cleveland. Cuyahoga County Prosecutor Michael O’Malley said that Joseph McAlpin was re-indicted on capital charges in the slayings of Trina Tomola and Michael Kuznik. McAlpin was earlier indicted on aggravated murder, aggravated robbery and other charges. The new indictment includes capital speciications to some of the charges that could result in the death penalty if McAlpin is convicted. O’Malley said in his statement that McAlpin broke into the car lot owned by Kuznik and his ex-wife, Tomola, on April 14 and shot both in the head.

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McAlpin also killed the couple’s dog. O’Malley said McAlpin also stole a vehicle. Surveillance equipment and computers containing business records were also taken from the business. Their 19-year-old son found the couple’s bodies. “This couple dedicated their lives to their family business and the Collinwood community,” O’Malley said after McAlpin’s original indictment. “Words cannot adequately express the pain and damage this crime has caused.” McAlpin was arrested after investigators matched his DNA to evidence gathered at the crime scene. Detectives said the dog, named Axel, bit the robber.

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Kentucky’s attorney general iled suit against a used-car dealer in the state, claiming the dealer defrauded more than 1,400 customers. Kim Sweazy, director of operations for the Better Business Bureau serving Central and Eastern Kentucky, joined Attorney General Andy Beshear in announcing the lawsuit against The United Group Inc., also known as Auto Plaza USA. According to the lawsuit, the Nicholasville dealership violated Kentucky’s Consumer Protection Act by collecting vehicle usage taxes from customers and then falsifying documents in order to avoid making the correct payment to the Kentucky Department of Revenue. As a result, customers received delinquent tax notices from the department and were left owing a tax bill that, in many cases, they already paid to the defendant. The alleged fraud took place be-

tween 2012 and 2016. The lawsuit also alleges Auto Plaza USA charged each customer a $489 fee for preparation of documents and services that were not properly performed. The suit seeks damages including approximately $465,000 in restitution for the customers who incurred additional unpaid usage tax liabilities, and $685,000 for customers afected by the bogus customer fee. The Oice of the Attorney General launched an investigation into the company’s practices and iled suit following more than 100 consumer complaints received by both the attorney general’s oice and the Better Business Bureau. “When calls and complaints started coming into our BBB a few months ago from Auto Plaza USA customers alleging the same unpaid tax problem, we believed there was a serious issue,” Sweazy said.

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8 • September 18, 2017



The news of the hurricanes in Houston and Florida brought back some bad memories for Oklahoma dealer Roy Sisco. Sisco, 70, had a Ford dealership in Seminole, Okla., and a couple of other buyhere, pay-here lots when he went through an historic lood. He had only owned the dealership for two years when the disaster struck. “We’re about 60 miles east of Oklahoma City,” he said, “and we went through this back in July of ’07. “It had been 50 years since the area had a lood like that,” he said. “The last time it had looded was in 1954 or ’55.” Heavy rains caused a local creek to lood and it lowed right into Sisco’s dealership. “It had looded the car lot. We had about a foot of water in the showroom,” he said. “So we really had some stuf going on there.” One big problem for Sisco is he was out of town at the time. “We were racing at the track, so I was in Tulsa at

“It just looked like a big river,” Sisco said. “It was a kind of a sick feeling. It was a bewildered-type of feeling. “It’s something you don’t think about and then it’s up on you. It’s just one of those deals.” The good thing is the inhouse inance lots were on higher ground in a diferent town. But at the Ford lot, about 250 to 300 vehicles were damaged. Since it was a Ford dealership, the manufacturer stepped up and took care of its damaged inventory, Sisco said. “They took every one of their looded vehicles out of there and crushed them,” he said. The bad news came when Sisco inquired about his insurance. “We had been paying for lood insurance and thought we had it,” he said. “I was a country boy and didn’t understand about insurance. But we irst got the insurance policy, we had lood insurance, so I thought I was covered.” Sisco called his local agent and the agent thought there was coverage, too. His insurance did cover the building and some of the costs of the furniture. “They didn’t pay a whole lot, but they did pay a little bit,” he said. The problem was that the Photo by The Associated Press used inventory on his lot was AFTERMATH: Insurance officials work among flooded cars at a racetrack not covered. in Baytown, Texas. “About the third day in, my local agent came down the time,” he said. “We were starting to come back home when the rain started. We had a living quarters in the race trailer, so we just pulled over and went to sleep.” Sisco didn’t think it was a big deal, even as it rained all night long. “Next morning, my phone was ringing and someone said, ‘Roy, you gotta’ get to Seminole, it’s looded over there.’” Sisco said when he arrived home, he saw looding “a quarter-mile-wide all the way down” Oklahoma State Highway 99 and U.S. 377 to his dealership.

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and he was just sick. He said, ‘Roy, I hate to tell you. But they will not cover the lood.’” Sisco said each year he gets a new policy and he signs it for the annual coverage. But at some point, the insurance company stopped carrying lood insurance. “He pulled my policy book and we looked at it,” Sisco said. “That was about an inch thick. Right toward the end, about three pages from the back, there it was (buried at the end of the paperwork).” Sisco said he protested the issue all the way up to the state insurance commissioner, but in the end, he was not covered for the used vehicles. “It was about $750,000,” he said. Sisco described his mindset when he got the news. “If you really want to know the truth of it,” he said. “I sat down out there and just thought, ‘Now Lord, you gave me this dealership, so how am I going to get through this? How are you going to work this out so I can survive?’” The dealership re-opened right away, but it took a while for Sisco and his business partner to get all the way back. They sat down and made out a plan and just went to work. On the vehicles they couldn’t collect insurance on or repair, they sold for scrap. “On the ones that only had a little bit of water damage

but didn’t get into the motor, we pulled the carpet and cleaned them,” he said. “I borrowed a lot of money and started working and it took me a long time. “I think we inally paid it of about two years ago. We inally worked our way out of the hole.” He understands the struggle that dealers in Houston and Florida will have to go through. “Ain’t no doubt, they are going to be hurting,” he said. “They’re going to be doing just like we were – trying to work their way out of this.” They face a worse challenge, Sisco said, because they will be dealing with saltwater from the ocean, as opposed to fresh water. However, he said even these dealers have the ability to come back from this. “What I’m saying is, son, don’t give up,” he said. Today, Sisco still has Seminole Ford, his franchise, and has one Town and Country Auto Inc., a buy-here, payhere store. He even has a new facility to go with his old building. Just a month before his 71st birthday, Sisco is still working hard, but he keeps an eye on the creek, too. “We’re doing pretty good now,” he said. “We still don’t have lood insurance, but when that creek starts rising, we start moving vehicles.”

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10 • September 18, 2017


Some Customers Fly to Buy with Lower Prices DETROIT (AP) – Used vehicle prices vary wildly between U.S. metro areas, sometimes over $3,000. So with some careful research and a plane ticket, some consumers are inding it might be worth the time it takes to travel. “For the adventurous dealseeker looking to save some money, it’s a viable option,” said Lisa Rosenberg, a data analyst with, an online sales site. “The savings can be pretty extreme.” Flying to buy is not for everyone. There’s a big risk in buying a car sight-unseen, and not everyone wants to trust a used-car salesman who’s 1,000 miles away. Rosenberg, who has analyzed used-car variances between metro areas, said Miami generally has the lowest prices in the country, followed by Cleveland; Stamford, Conn.; Tampa, Fla.; New York City; Orlando, Fla.; Sarasota, Fla.; Pittsburgh and Toledo, Ohio. Miami’s prices run roughly 10 percent below the national

average. For instance, the average 2014 BMW 3-Series car would cost about $22,000 in Fresno, Calif., which ranks second among the most expensive metro areas. The same car is $18,995 in Miami, just over $3,000 cheaper. A 2014 Dodge Charger goes for $19,605 in Albuquerque, the nation’s most expensive metro area, but it’s about $3,000 less in Miami. Miami is a huge market for leased vehicles. Beny Ledesma, general sales manager at Williamson Buick-Cadillac-GMC in Miami, said leasing accounts for three-quarters of his dealership’s sales, providing a steady stream of low-mileage used cars. He said the dealership is seeing more people searching the Internet, inding lower prices, and traveling south to buy. “The information that we put out there is so good - the availability of being able to get online and just see everything, the pictures that we take now,” Ledesma said.

Photo by The Associated Press COME FLY TO ME: General sales manager Beny Ledesma of Williamson Cadillac Buick GMC dealership in Miami awaits customers flying in to buy a used car.

His dealership averages about 25 people per year buying from faraway places. He’s in the midst of selling a Cadillac Escalade to a buyer from California, and has sold cars to people from as far away as Canada, Ledesma said. Rosenberg said studies into why prices vary haven’t found a single reason.

Abundant leasing and higher salaries in some areas are part of the equation. The diferences have been consistent over many years, she said. There also are variances by type of vehicle. For instance, Sacramento has the highest price for a used 2014 Ford F-150 pickup at nearly $25,000, while

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Bufalo has the cheapest for the same truck, more than $4,000 lower. That may be in part because Bufalo has more used trucks, but it could also be due to weather. California pickups may be worth more because they’re free of rust caused by road salt used to clear snow. Continued on page 12


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12 • September 18, 2017


Westlake Partners with Firms Westlake Financial Services recently partnered with two irms to increase the credit insights for its dealers. Westlake has expanded its relationship with Clarity Services to strengthen its auto portfolio nationwide. Westlake began testing Clarity’s Clear Fraud a year ago in select markets. During the testing period with Clear Fraud, we saw a measurable lift and clear separation of risk,” said Ian Anderson, Group President of Westlake Financial. By incorporating Clarity’s credit data, Westlake is able to more accurately price and structure deals with proitable loan terms, and determine down payment requirements. Westlake’s use of Clear Fraud helps the lender evaluate subprime applicants with credit scores below 600. Clear Fraud also makes it easy to integrate scores into Westlake’s existing scorecard. “It’s rewarding to have an auto inance industry leader like Westlake validate the power of our data for underwriting subprime consumers,” said Tim Ranney, President of Clarity Services. “Our data is al-


ready known to be very strong for credit cards, marketplace lending and other subprime applications. Westlake embracing Clarity’s data is proof of its value in yet another industry segment.” Westlake Financial also has agreed to use Equifax’s dealer intelligence platform, TradeSight, to manage and monitor its dealer relationships. TradeSight helps analyze originations, current and future dealer partners and performance of the contracts booked through dealer partners. It works by combining Equifax consumer credit information with dealer and vehicle data from thirdparty data sources to assess the dealer network and establish peer benchmarks to help evaluate dealers’ credit risk. “By providing comprehensive analytics from a single platform, TradeSight will help Westlake Financial continue to compete at a high level and establish even stronger relationships with dealers in order to proitably grow their portfolio,” said Lou Loquasto, Equifax’s vice president of auto inance and dealer vertical.

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Tim Capps, who runs Gabriel/ Jordan Buick-GMC in Kilgore, Texas, about two hours east of Dallas, suggests getting the dealer to use Facetime or some other system to show you the car. Capps said his dealership group gets about 15 percent of its sales from outside of Texas. “At some point I’m going to say, ‘It’s worth the risk, it’s going to cost me a $300 (airplane) ticket,’” he said. One of Capps’ long-distance customers, Geof Goldsbury of Tequesta, Fla., near Palm Beach, was searching for a very speciic model: a 2012 Lincoln MKT SUV with a For Cars, Trucks and Vans

pearl white outside and a brown leather interior. It also had to have a unique Lincoln option: a built-in refrigerator/freezer in the back seat. There were few on Florida’s East Coast, where most MKTs are used as limousines, Goldsbury said. The pictures looked great and the dealer checked out, so he lew to Kilgore. A salesman picked him up at the airport; he drove the SUV and then bought it. The dealer installed a temporary Texas license plate so he could drive it home. Later, he found out he paid $4,000 under the normal value for the Lincoln, he said.

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Court Upholds Sales Tax OKLAHOMA CITY (AP) – The Oklahoma Supreme Court on Aug. 31 narrowly upheld the removal of a 1.25 percent sales tax exemption on vehicles sold in Oklahoma, one of several revenue-raising measures adopted by the Oklahoma Legislature earlier this year in an attempt to close an $878 million budget hole. In a 5-4 decision, justices ruled that legislation adopted by lawmakers during the inal week of the 2017 legislative session does not violate strict constitutional guidelines for raising revenue because it did not levy a new tax but merely removed an exemption from an existing tax. The bill was passed out of committee by a 15-13 vote at 11 p.m. on May 23 and the language only became public on May 24, when it passed the full legislature by a vote of 52-47. Oklahoma has only one legislative body. The tax change went into efect July 1. The measure is expected to raise about $124 million a year. The court’s majority opinion – written by the court’s newest member, Justice Patrick Wyrick – rejects allegations by the Oklahoma Automobile Dealers Association, an auto dealership and an individual that the legislation is a “revenue bill” under the state constitution that violated requirements that revenue bills not be adopted in the inal week of the legislative session and receive at least 75 percent of the votes in both the House and Senate. “Our cases have always recognized the important constitutional distinction between measures levying new taxes and measures removing exemptions to already levied taxes,” the 20-page decision states. The Legislature levied a sales tax

on all personal property, including vehicles, in 1933 but passed an exemption for vehicles in 1935, an exemption that has been in place ever since. Vehicles have remained subject to a 3.25 percent excise tax. The ruling states that “we have never before in our history held that a measure revoking a tax exemption is a ‘revenue bill’ ... to hold otherwise would require us to break new ground and overrule well-established precedents.” The automobile association’s attorney, Clyde Muchmore, said the association will not ask the court to rehear the case and declined further comment. The decision was handed down three weeks after the court overturned a $1.50 per-pack fee on cigarettes also adopted this year, a measure that was expected to raise more than $250 million a year. In that case, the court ruled that the fee was a revenue bill and violated constitutional guidelines against approving revenue-raising bills in the inal ive days of a legislative session and without a 75 percent majority vote. Gov. Mary Fallin and legislative leaders lauded the court’s latest decision and said it helps clarify the steps they need to take to manage the state budget for the iscal year that began July 1. Fallin said that including matching federal funds, the court’s rejection of the cigarette fee will cost state agencies nearly $500 million. In a separate opinion, dissenting justices said the intent of the exemption-lifting measure was to raise revenue and it should be subject to the constitution’s strict revenue-raising guidelines. “Calling it a sales tax but collecting it as an excise tax makes little diference to the consumer. It is a tax,” the dissenting opinion states.

16 • September 18, 2017


PEOPLE IN THE NEWS Recon Firm Adds Auction Veteran to Board

the Canadian Auction Group. Simon retired five CARS Recon Inc. has named Steve Simon to years ago, after a 25year career. its board of directors. Simon joins Tony Hires Moorby and Tom MetroGistics Development VP Cunningham as nonMetroGistics has hired Susan Moritz as vice president of business development. In this new position, she will be responsible for leading and growing the OEM and Mega Dealer business segments. Moritz has more than 25 years of experience in the automotive industry, includSteve Simon ing positions with Cox Automotive, Finance executive advisors. An industry veteran, Express, KAR Auction Simon created a num- Services and ADESA. Active in the commuber of companies across North America. Simon nity, Moritz sits on the was the founder and board of Indianapolis CEO of American Auc- Ballet and chairs the tion Group, the founder marketing committee and CEO of Auction Fi- for Chaucie’s Place, an whose nance Group, as well as organization mission is to prevent chairman and CEO of

childhood sexual abuse and adolescent suicide, where her husband serves as executive director.

America’s Car-Mart Changes CEO The CEO of buy-here, pay-here chain America’s Car-Mart is retiring.

Hank Henderson William H. “Hank” Henderson will step down as CEO on Dec. 31. President Jef Williams will move up to fill Henderson’s role. Henderson spent the

last 10 years leading the Bentonville, Ark.-based buy-here, pay-here chain. Prior to that, he served the company in several roles, including chief operating officer and president. Henderson will remain a member of CarMart’s board and have the title of CEO Emeritus. Williams joined CarMart 12 years ago. He has been president since 2016 and chief financial officer since 2005. Prior to joining the company, Williams spent approximately seven years in public accounting with Arthur Andersen & Co. and Coopers and Lybrand LLC in Tulsa, Okla., and Dallas. His experience also includes approximately five years as chief financial officer and vice president of operations of Wynco LLC, a na-

tionwide distributor of United States country animal health products. head. After more than a deSantander Names Chief cade of service to SC, Executive Officer Kulas is stepping down to pursue other opportunities. Powell was appointed CEO of SHUSA in 2015 and has served on SC’s board of directors since 2016. Powell held a variety of senior roles at JPMorgan Chase & Co., including head of banking and consumer lending operations, CEO Scott Powell of consumer banking and retail investments, The board of direc- head of retail lending, tors of Santander Con- head of Chase Auto sumer USA Holding Finance, and chief risk Inc. announced that officer, consumer. He Scott Powell will suc- also spent 14 years at ceed Jason Kulas as Citigroup and its prepresident and chief ex- decessors in a variety ecutive officer, effective of senior risk manageimmediately. ment roles. Powell will continIn addition, Mahesh ue to serve as CEO of Aditya, chief operating Santander Holdings officer of SHUSA, has USA Inc. (SHUSA) and been appointed to SC’s as Santander Group’s board of directors.


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RETAIL MARKETS IDAHO Allen Anderson, owner, A&S Auto, Burley, Idaho: “I’ve been in business since 1999. I have one location. “I keep about 50 vehicles in inventory. I get them from auctions. I use an independent auction in Blackfoot, Idaho (East Idaho Auto Auction). I also use Dealers Auto Auction of Idaho in Nampa, Idaho, and, of course, Manheim and ADESA. “I don’t wholesale very many cars because it’s something I’m not good at. “I’ve been average around 15 (sales) per month. It’s been similar to this time last year, which is kind of disappointing. I just remember in 2007 before the crash, we were selling 30 a month. I was hoping to be back to that. “Average retail price on the lot is probably $4,000. “About 80 percent of my business is buy-here, payhere. That’s what I’ve always done. “We normally get onethird for a down payment.

The average term length is 12 months. We’ve stuck with that (model) forever. “I don’t use starter-interrupts or GPS devices. I played around with those a little bit, but I get too lazy and still end up chasing a car. I’d rather keep the car sold. That’s my goal. “The cars on the lot are high-milers, so they’re about 150,000. “The model years are all over the board. I have everything from a 1997 to a 2008. Some of those older pickups are worth more than some of the newer cars. “Right now, we’re carrying 20 percent trucks. It should be way higher, but they are just harder to buy. “We have a mix of domestics and imports. “The typical cost for reconditioning is $300 to $500. That could be anything. Some cars need tires. Maybe the alternator’s out or the fuel pump works only when it wants to. “I have a mechanic that I use exclusively, but he

doesn’t work for me. Years ago I had a mechanic, but it’s just hard to ind a good one. “For advertising, we do a little bit of Internet and we do some local radio. That’s about it. “On the Internet, we use the local buy-sell-trade (classiieds). We are also on a banner at a couple of local high schools, those sorts of things. “I recently sold a 2006 Dodge Magnum. It had 155,000 miles. We got $5,200. “In the irst week of September, I’m on my 11th car sold. So I’m optimistic now.”

WYOMING Brett Whitlock, co-owner, Whitlock Motors, Cody, Wyoming: “I’ve been in business here in Cody for 21 years. I was in business in other places before that. “We have about 130 in inventory. We had about 110 last year. “We have one location. In fact, we just built a new

Compiled by Jeffrey Bellant facility and moved in December. We’re sitting on six acres and built an almost 11,000-square-foot building. So we moved from a small facility to a full-service facility. “My dad was a new-car dealer, so I was raised in this business. My partner Brian Shumard and I had a plan to have a store set up like a new-car store. “But we’re independent. So we have full-service – four techs and a service manager. We have a parts department and a showroom. “So we’ve gone from averaging 42 cars sold per month to last month when we hit a new record at 76 cars. We’re shooting for 100 cars a month. “We get vehicles from Auto Auction of Montana in Billings. We use the Manheim auctions and buy from dealers. We also buy of the street. “We have our own detail department. Recon costs average $500 or $600 a car. “We do very little subprime

and buy-here, pay-here. “Average model year is 2013 or 2014. Average mileage is around 40,000 or 50,000. It’s hard to judge, because we’ll have a 2003 or 2006 model, too. “Cars make up 20 percent of our inventory, 30 percent is SUVs and the balance are trucks. “We sell a lot of diesel trucks, heavier trucks. We live in truck country. When a gas crunch comes, we feel it. “But by the same token, you can’t haul a horse trailer with a Toyota. “We sell a lot of domestics. We’re not opposed to foreign vehicles, but they just don’t have the heavy trucks. “We also do customer-pay service. We broke $100,000 in sales in our service department last month. “For advertising, we utilize our website, Facebook and the weekly free papers. I also use a lot of radio. “I just delivered a 2010 Toyota Tundra. It had 143,000 miles on it. We got $17,995.”


September 18, 2017 • 19

WHOLESALE MARKETS MINNESOTA Rob Thompson, owner, Mid-State Auto Auction, New York Mills, Minn.: “As of August, we’ve been in business 34 years. We have four lanes and we normally run three. “We just had our anniversary sale on Aug. 18. It was the biggest sale we ever had. “We ended up selling 710 cars. We had consigned, I think, 1,044, so the percentage was at 70 percent for the whole sale. It was fantastic. “We’re used to running about 400 a week, so to run over 1,000 is a big step up. Normal percentages would be right around 60. “Right now, we’re 450 cars ahead of last year. The car count has been up and the percentages have been strong. We’ve got a lot of dealer groups and that’s worked out well for us. “We’re probably 85 percent dealer consignment and 15 percent leet lease. “The trend on repossessions is probably up slightly, maybe 2 to 3 percent.

“On a normal week we (draw) about 170 dealers in the lanes. For our anniversary sale, we had 320. “Dealers have said that August was really strong. July was of a little bit from what I heard. September was of to a normal start. “We’re in a smaller town smack dab in the middle of Minnesota. I guess the main economy around here would be considered farming. “We have Auction Edge. That’s been really good. We’ve been getting a strong Internet buying presence. We’re selling on a normal week, probably, 50 or 60 online. “We also have a GSA sale once a month from April through November. That runs at a diferent time from the regular sale. The regular sale starts at 10 a.m., so the GSA will run at 1 p.m. “We’ll run 80 to 100 in that sale. It’s a good mix. We get a lot of Malibus, Ford Focuses and pickups. We get a fair amount of SUVs and a very

high number of Caravans. “During the anniversary sale, the average price was $5,800. That was slightly higher than normal, which would be $5,000 or $5,200. “Our van market is very good. Cars are OK, but you don’t have the feeding frenzy that you have with the trucks and SUVs.”

VIRGINIA Wyatt Carter, assistant general manager, Richmond Auto Auction, Richmond, Va.: “I‘ve been here since January. Before this I was a leet-lease manager at (a diferent auction). “This year will be our 27th year. We have seven lanes and we run up to six every week. “Volumes have been in the 500s. Dealer consignment is down a little bit, but commercial consignment is up. Overall it is up a skosh – just a little bit. “It’s been a very strong summer market. We’re seeing an increase in sales per-

centage. At a recent sale, we sold 72 percent of our consignment. “The number of dealers in the lanes varies from week to week, but it’s about 300 to 350. “New-car sales are deinitely down. They’re down nationwide. They had record-breaking runs, so I guess this is a normal adjustment. We’re seeing fewer dealer trades as a result. “We’re about a 50/50 mix of dealer and commercial consignment. Last year, we were probably a little heavier on the dealer side. On the commercial side, Suntrust is one of the bigger banks we sell for. We also sell for UHaul. We sell for Navy Federal Credit Union, Virginia Credit Union and some of the larger local credit unions. The state of Virginia is also a big consignor. “We have a GSA sale that runs once a month. They run anywhere from 25 to 100 or 150 (units). We get everything from normal passenger vehicles to buses,

Compiled by Jeffrey Bellant heavy machinery, trucks and trailers. We always get a higher attendance on those weeks. “We have an anniversary sale on Sept. 22. “We run an in-op sale with 40 to 60 units weekly. That’s mainly driven from title loan repossessions. “Average price in the lanes is about $4,500. It’s about 10 percent or 15 percent higher than last year. We have more commercial consignors. U-Haul sells a lot of $20,000 vehicles, and that pushes it up. “All of our lanes are simulcast and ofered through Auction Edge. “We also do online vehicles listings through Openlane, SmartAuction and OVE. “We actually had a very good summer. It was much better than last year. So we’re hoping to continue that trend into the fall and the winter. “The real estate market in Richmond is going nuts. We’re growing here.”




2014 MODELS Recorded Figures

Recorded Figures

Projected Figures

Projected Figures

DOMESTIC CARS Buick LaCrosse 4D Sedan Cadillac CTS 3.6 4D Sedan Chevrolet Cruze LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 200 Touring 4D Sedan Chrysler 300 base 4D Sedan Ford Focus SE 4D Sedan Ford Mustang base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln MKS 4D Sedan

Sept ‘16 11,150 15,000 6,050 7,000 7,100 10,950 5,800 10,500 10,400 13,550

Mar ‘17 9,450 12,500 5,200 5,950 5,600 9,350 4,850 8,500 8,700 11,150

Sept ‘17 9,250 11,550 4,650 5,200 5,000 9,050 4,600 8,750 8,400 9,850

Sept ‘18 8,375 10,300 4,375 5,075 4,500 8,125 3,975 7,600 7,275 9,325

Sept ‘19 7,250 8,600 3,675 4,325 3,600 7,025 3,250 6,200 6,150 8,200

DOMESTIC CARS Buick LaCrosse Leather 4D Sedan FWD Cadillac CTS 3.6 Premium 4D Sedan Chevrolet Cruze LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 200 Touring 4D Sedan Chrysler 300 base 4D Sedan Ford Focus SE 4D Sedan Ford Mustang base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln MKS 4D Sedan

Sept ‘16 16,800 30,400 8,850 14,150 9,150 14,650 8,950 13,750 14,100 18,700

Mar ‘17 14,050 25,450 7,650 12,350 8,200 13,400 7,450 12,100 12,550 16,500

Sept ‘17 14,350 24,100 6,900 11,950 7,550 12,900 7,150 12,050 12,200 15,500

Sept ‘18 12,450 21,125 6,250 10,150 6,725 11,125 6,000 10,400 10,550 13,675

Sept ‘19 10,550 17,575 5,125 8,475 5,400 9,375 4,775 8,475 8,750 11,800

IMPORTED CARS Acura TL base 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan 2.4 Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Lancer ES 4D Sedan Nissan Altima base 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra base 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan

Sept ‘16 14,850 15,000 28,000 9,250 7,600 16,300 18,200 5,350 7,350 7,750 5,550 9,550 7,250 8,725

Mar ‘17 11,850 11,250 21,250 7,850 6,750 13,450 14,900 4,200 6,150 6,550 4,700 7,900 6,400 7,325

Sept ‘17 11,050 11,450 18,750 7,400 5,800 13,300 13,700 4,050 5,150 5,550 4,400 7,350 6,200 6,925

Sept ‘18 8,900 9,575 14,775 6,700 5,500 11,025 11,625 3,525 5,300 5,675 4,050 6,775 5,700 6,425

Sept ‘19 7,050 7,850 11,350 5,675 4,875 9,125 9,275 2,975 4,575 4,900 3,550 5,975 4,950 5,450

IMPORTED CARS Acura TL base 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan 2.4 Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Lancer ES 4D Sedan Nissan Altima base 4D Sedan Nissan Altima S 4D Sedan 3.5 Nissan Sentra S 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan

Sept ‘16 19,900 19,500 45,500 13,400 10,450 22,700 26,200 7,700 10,000 11,400 8,750 11,700 10,900 13,500

Mar ‘17 16,850 16,250 38,750 12,000 9,850 20,400 23,100 6,400 9,450 10,800 8,050 11,050 10,150 12,000

Sept ‘17 15,150 16,300 32,000 11,000 8,900 19,500 22,700 5,950 9,100 10,650 7,700 10,300 9,500 10,600

Sept ‘18 12,375 13,450 25,900 9,800 8,125 16,825 18,725 5,050 7,875 9,075 6,675 9,325 8,575 9,825

Sept ‘19 9,850 10,875 19,925 8,325 6,925 13,675 14,925 4,125 6,750 7,800 5,625 8,000 7,250 8,275

TRUCKS BMW X3 XDrive28i 4D SAV Cadillac Escalade base 4D SUV AWD Cadillac SRX Luxury 4D SUV AWD Chevrolet Equinox LS 4D SUV FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D SUV 4WD Dodge Grand Caravan SE Wagon Ford Edge SEL 4D SUV FWD Ford Escape XLT 4D SUV 4WD Ford Explorer XLT 4D SUV 4WD Ford F150 XLT Supercab Ford Flex SEL 4D SUV FWD Honda CR-V LX 4D SUV AWD Honda Odyssey LX Wagon Honda Pilot EX-L 4D SUV 4WD w/RES Jeep Grand Cherokee Laredo 4D SUV 4WD Jeep Wrangler Unlimited Sahara 4D SUV 4WD Kia Sportage LX 4D SUV FWD Nissan Murano SL 4D SUV AWD Ram 1500 SLT Crew Cab Toyota 4Runner SR5 4D SUV 4X4 V6 Toyota Tacoma Prerunner SR5 Double Cab V6

Sept ‘16 16,500 29,100 18,450 9,500 18,200 21,100 9,000 12,900 10,800 17,200 16,000 14,400 11,700 11,750 20,700 16,950 25,150 9,550 16,600 17,300 22,700 20,625

Mar ‘17 13,950 26,000 14,400 7,900 16,400 16,700 7,200 10,900 9,150 14,400 13,600 11,400 11,300 9,950 17,250 14,800 23,400 7,750 13,400 14,700 21,800 18,775

Sept ‘17 12,200 24,500 14,200 7,150 16,200 16,500 6,700 10,300 8,000 14,200 12,300 10,500 10,850 9,600 16,150 14,000 23,050 7,000 12,500 14,800 21,350 18,375

Sept ‘18 11,400 21,525 12,625 6,225 14,200 14,425 5,700 9,350 7,250 11,875 11,600 9,950 9,525 8,725 14,800 12,625 21,475 6,550 11,025 13,050 18,425 17,575

Sept ‘19 10,000 18,225 10,675 5,150 12,850 12,500 4,675 8,250 6,175 10,625 10,575 8,825 8,500 7,475 12,975 10,900 19,875 5,575 9,750 12,125 15,750 16,175

TRUCKS BMW X3 XDrive28i 4D SAV Cadillac Escalade base 4D SUV AWD Cadillac SRX Luxury 4D SUV AWD Chevrolet Equinox LS 4D SUV FWD Chevrolet Silverado 1500 LT Crew Cab 4WD Chevrolet Tahoe LS 4D SUV 4WD Dodge Grand Caravan SE Wagon Ford Edge SEL 4D SUV FWD Ford Escape SE 4D SUV 4WD Ford Explorer XLT 4D SUV 4WD Ford F150 XLT Supercab Ford Flex SEL 4D SUV FWD Honda CR-V LX 4D SUV AWD Honda Odyssey LX Wagon Honda Pilot EX-L 4D SUV 4WD w/RES Jeep Grand Cherokee Laredo 4D SUV 4WD Jeep Wrangler Unlimited Sahara 4D SUV 4WD Kia Sportage LX 4D SUV FWD Nissan Murano SL 4D SUV AWD Ram 1500 SLT Crew Cab Toyota 4Runner SR5 4D SUV 4X4 V6 Toyota Tacoma Prerunner SR5 Double Cab V6

Sept ‘16 23,550 38,950 25,100 12,800 27,500 28,700 13,400 19,050 14,850 24,600 21,400 20,100 15,450 18,100 27,750 20,500 28,550 12,850 21,825 22,600 26,550 23,100

Mar ‘17 24,600 34,800 21,800 11,000 25,800 27,000 11,300 17,100 13,000 22,000 19,700 18,100 14,450 15,850 25,250 18,850 27,600 11,850 19,525 21,200 25,850 22,700

Sept ‘17 20,500 32,000 20,450 10,150 26,200 25,800 11,000 15,650 12,750 21,300 19,200 18,400 13,100 15,100 23,400 18,550 27,200 10,450 18,075 21,000 26,050 21,650

Sept ‘18 18,075 28,450 17,975 8,950 22,975 21,425 9,175 14,175 10,300 17,650 16,175 15,300 11,600 12,950 20,575 15,575 24,825 9,275 15,425 18,075 22,125 20,625

Sept ‘19 14,975 24,225 15,300 7,500 20,650 18,325 7,400 11,975 8,625 15,125 14,300 13,275 10,425 10,825 17,850 13,400 22,850 7,825 13,250 16,500 19,100 19,025



2015 MODELS Recorded Figures

Recorded Figures

Projected Figures

Projected Figures

DOMESTIC CARS Buick LaCrosse 4D Sedan Cadillac CTS 3.6 4D Sedan Chevrolet Cruze LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 200 Touring 4D Sedan Chrysler 300 base 4D Sedan Ford Focus SE 4D Sedan Ford Mustang base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln MKS 4D Sedan

Sept ‘16 14,750 18,000 7,800 8,500 8,050 13,900 7,650 12,000 12,500 16,050

Mar ‘17 12,650 15,700 6,600 7,350 7,150 12,400 6,200 10,400 10,950 14,050

Sept ‘17 11,100 14,750 5,550 6,500 6,400 11,350 5,500 10,350 10,350 12,400

Sept ‘18 10,075 12,850 5,225 6,200 5,800 9,950 4,775 8,950 9,150 11,725

Sept ‘19 8,600 10,600 4,350 5,225 4,600 8,500 3,875 7,300 7,575 10,175

DOMESTIC CARS Buick LaCrosse Leather 4D Sedan FWD Cadillac CTS 3.6 Luxury 4D Sedan Chevrolet Cruze LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 200 S 4D Sedan AWD Chrysler 300 S 4D Sedan V6 Ford Focus SE 4D Sedan Ford Mustang base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln MKS 4D Sedan

Sept ‘16 17,600 30,500 10,450 15,850 15,150 22,150 10,800 17,500 16,100 21,650

Mar ‘17 16,200 23,700 9,000 13,200 14,400 19,650 9,100 15,050 14,550 19,500

Sept ‘17 15,800 22,350 8,100 13,100 13,550 18,600 8,650 14,000 13,750 18,600

Sept ‘18 13,725 20,200 7,475 11,175 11,925 16,275 7,075 12,750 12,025 16,075

Sept ‘19 11,800 17,050 6,250 9,475 9,725 13,825 5,600 10,675 10,050 13,775

IMPORTED CARS Acura TL base 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan 2.4 Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Lancer ES 4D Sedan Nissan Altima base 4D Sedan Nissan Altima S 4D Sedan 3.5 Nissan Sentra S 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan

Sept ‘16 16,950 17,250 35,500 11,800 9,100 20,350 20,600 6,650 8,950 10,400 7,650 10,450 9,000 11,650

Mar ‘17 13,750 13,750 29,500 10,500 8,450 18,000 18,300 5,450 8,300 9,450 6,950 9,300 7,800 9,850

Sept ‘17 12,350 13,350 25,000 9,650 7,450 17,150 17,300 5,000 7,500 8,450 6,050 8,500 7,000 8,400

Sept ‘18 9,925 11,225 20,200 8,675 6,850 14,850 14,275 4,375 6,825 7,825 5,575 7,925 6,425 8,025

Sept ‘19 7,925 9,150 15,475 7,325 5,900 12,075 11,375 3,575 5,875 6,725 4,750 6,900 5,600 6,775

IMPORTED CARS Acura TLX Base 2.4L 4D Sdn BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata SE 4D Sedan 2.4 Lexus ES 350 base 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Lancer ES 4D Sedan Nissan Altima base 4D Sedan Nissan Altima S 4D Sedan 3.5 Nissan Sentra S 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan

Sept ‘16 22,700 21,750 56,500 15,550 11,750 26,300 31,900 9,400 11,550 13,350 10,150 13,800 11,900 14,850

Mar ‘17 20,200 19,000 49,000 13,900 11,100 24,700 28,800 8,400 11,050 13,400 9,250 12,400 10,850 13,500

Sept ‘17 18,100 18,550 40,000 12,700 10,500 23,800 27,900 7,450 10,450 12,850 8,650 11,750 10,400 11,900

Sept ‘18 15,700 15,875 34,500 11,575 9,375 20,175 23,575 6,625 9,275 11,225 7,500 10,675 9,375 11,225

Sept ‘19 13,000 12,950 26,525 9,800 8,100 16,225 18,900 5,300 7,925 9,550 6,275 9,300 8,000 9,400

TRUCKS BMW X3 XDrive28i 4D SAV Cadillac Escalade base 4D SUV AWD Cadillac SRX Luxury 4D SUV AWD Chevrolet Equinox LS 4D SUV FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D SUV 4WD Dodge Grand Caravan SE Wagon Ford Edge SEL 4D SUV FWD Ford Escape SEL 4D SUV 4WD Ford Explorer XLT 4D SUV 4WD Ford F150 XLT Supercab Ford Flex SEL 4D SUV FWD Honda CR-V LX 4D SUV AWD Honda Odyssey LX Wagon Honda Pilot EX-L 4D SUV 4WD w/RES Jeep Grand Cherokee Laredo 4D SUV 4WD Jeep Wrangler Unlimited Sahara 4D SUV 4WD Kia Sportage LX 4D SUV FWD Nissan Murano SL 4D SUV AWD Ram 1500 SLT Crew Cab Toyota 4Runner SR5 4D SUV 4X4 V6 Toyota Tacoma Prerunner SR5 Double Cab V6

Sept ‘16 21,450 35,100 22,950 11,550 21,600 26,400 11,600 17,450 15,050 22,300 20,000 19,100 13,650 14,250 24,050 19,250 27,100 11,500 19,050 20,500 25,200 22,450

Mar ‘17 17,800 31,000 19,400 9,950 19,200 24,200 9,700 14,950 12,950 18,300 17,700 16,400 12,950 12,050 22,200 17,850 25,650 10,450 17,200 18,000 25,100 21,850

Sept ‘17 14,650 28,500 17,450 9,100 18,500 21,800 8,800 13,350 11,100 16,500 16,000 14,200 12,000 11,900 20,050 16,700 24,800 9,000 15,800 18,000 24,450 20,900

Sept ‘18 13,525 24,725 15,200 8,175 16,500 18,500 7,650 12,300 9,750 14,625 14,450 13,175 10,550 10,425 17,625 14,775 23,075 8,000 13,650 15,700 20,725 19,625

Sept ‘19 11,675 20,875 12,725 6,700 14,775 15,775 6,200 10,575 8,150 12,750 12,750 11,400 9,450 8,875 15,350 12,600 21,550 6,800 11,775 14,375 17,575 17,975

TRUCKS BMW X3 XDrive28i 4D SAV Cadillac Escalade base 4D SUV 4WD Cadillac SRX Luxury 4D SUV AWD Chevrolet Equinox LS 4D SUV FWD Chevrolet Silverado 1500 LT Crew Cab 4WD Chevrolet Tahoe LS 4D SUV 4WD Dodge Grand Caravan SE Wagon Ford Edge SEL 4D SUV FWD Ford Escape SE 4D SUV 4WD Ford Explorer XLT 4D SUV 4WD Ford F150 XLT Supercab Ford Flex SEL 4D SUV FWD Honda CR-V LX 4D SUV AWD Honda Odyssey LX Wagon Honda Pilot EX-L 4D SUV 4WD w/RES Jeep Grand Cherokee Laredo 4D SUV 4WD Jeep Wrangler Unlimited Sahara 4D SUV 4WD Kia Sportage LX 4D SUV FWD Nissan Murano SL 4D SUV AWD Ram 1500 SLT Crew Cab Toyota 4Runner SR5 4D SUV 4X4 V6 Toyota Tacoma Prerunner Double Cab V6

Sept ‘16 27,650 55,400 31,850 14,800 29,900 35,500 16,000 22,650 16,750 26,400 24,500 22,200 17,900 21,600 29,850 22,650 30,150 14,400 28,800 24,700 29,750 24,350

Mar ‘17 25,450 50,800 24,900 12,150 27,500 33,000 13,200 19,650 15,200 25,200 21,700 18,800 16,150 18,350 27,750 22,150 28,900 12,900 25,400 22,500 28,150 23,700

Sept ‘17 24,250 47,600 24,100 11,450 28,000 33,500 12,500 19,400 14,250 23,800 22,800 20,800 14,950 17,100 26,300 21,350 28,650 11,900 24,900 23,500 28,000 23,000

Sept ‘18 20,675 41,625 21,175 10,175 25,125 28,675 11,200 16,450 11,800 20,075 19,350 16,975 13,375 15,125 23,125 18,925 26,325 10,475 20,925 20,475 24,025 21,675

Sept ‘19 17,375 35,225 18,075 8,600 22,750 24,800 9,250 13,900 10,000 17,200 17,500 15,025 12,025 12,600 20,200 16,475 24,175 8,975 17,800 18,650 21,100 19,775


September 18, 2017 • 21

DISCONNECTED JOTTINGS FROM This country’s weather seems to be as ravaged as its politics. While the west coast blisters under blazing heat and


stant communication with the residents, tourists and visitors, the frailties of an infrastructure to handle mass evacuations become clear-

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

wildires and Texans are picking up the pieces after Hurricane Harvey, Hurricane Irma is ripping up the west coast of Florida as I sit and write. It’ll leave who-knowswhat in its unprecedented wake. I have to say that Gov. Rick Scott appears to have done an outstanding job in preparing the state’s population for the worst storm in decades, maybe in a century. While he’s been in con-

er as disaster approaches. Friends of mine recently moved to The Villages, the huge retirement community just northwest of Orlando, where the prospect of evacuation was not the easiest thing to entertain. Interstate 75 was a parking lot and they couldn’t get any gas to hightail it out of there anyway. People who invested in generators were disallowed from illing gas canisters to run them. So they’ve decided to hunker

down and ride it out. While the house is built of steel and breezeblock, the roof and windows still present an obvious weakness. Here in Tennessee, it’s a typical, an early fall morning with crisp, blue skies and nary a breeze to stir a leaf and hummingbirds whizzing back and forth before their epic retreat, makes it even more diicult to appreciate the hardships of the aftermath that folks are dealing with in and around Houston and those that Floridians will face on a disastrous level. Caribbean Islanders have been left with nothing but the clothes they stand in, a life’s eforts and belongings stripped clean overnight as Texans throw away anything that’s been touched by the putrid loodwaters. Even if you’re lucky enough to have insurance, replacement doesn’t contemplate memories and personal attachments. A record-sized earthquake

C R O S S WO R D 33. __ Capitan 34. Period just before an event 35. hese types of cars are revealed at the top auto shows 37. Former brand of Ford vehicle 39. Pontiac Grand ___ 40. Letters of debtors 41. Exists 43. hat is, for short 44. News channel 45. Honda SUV 47. Financial backer 49. Tidily organized 51. hey are being used as part of self-driving car technology 52. Midpoint of a lane, e.g. Down 1. Carrera or Boxster 2. Going there and coming back, 2 words

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

By Myles Mellor

Across 1. Ferrari’s new powerful convertible 7. Pioneering Toyota 10. Car ID 11. VW minivan 13. Automobile pioneer Gottlieb 14. Zip 16. Word with bar or zip 17. Tank-like truck 19. It’s now GPS 21. iPod attachments 23. Prevent 25. Neg. responses 26. Detroit’s state, for short 27. he m in rpm 28. Carcorder or Waze for example 29. ___ fob 31. Manufacturers are working hard to make cars ____

Americans’ generosity is as broad as its willingness to pull up its bootstraps and get things back to normal, hard work and charity going hand in hand. Yet still, there will be the looters, price-gougers and scammers preying on those, only too ready to be taken in by desperation. By the time this is printed, the macho TV weather reporters will have returned to the comfort of their oices, though why they feel the need to stand in the middle of a tempest as winds howl around anoraks and microphones and rain splatters camera lenses, is beyond me – verisimilitude in reporting, I suppose. Mother Nature has shown, once again, who’s really in charge while Donald Trump, like King Canute, deies global warming.

in Southern Mexico, where over a hundred lives were lost and thousands injured, which would normally have been headline news worldwide, has been relegated to the newspapers’ back pages and an afterthought in other media. I know nothing compares to lives lost but now the inancial burdens will have to be met; as the government digs deep to ind the billions of dollars needed to fund reparations, folks will be inding out what the small print really means in their insurance policies. My buddy, who does not live in a lood zone, pointed out that his policy doesn’t cover “water damage.� So if Irma rips his roof of and ruins his belongings, he gets a new roof! His trip to the furniture store will be selffunded.


3. Shape of many stadiums 4. Feature that provides an aerodynamic look 5. Fashionable 6. First auto maker to introduce the fully automatic car 7. Pressure meas. for a tire 8. Light up 9. Colorful features on many minis 12. Daddy day staple 15. Wheel centers 18. Work over the deal again 20. Fasten your seat belts, 2 words 22. Current measurement 24. Greatest boxer 28. Hyundai model 30. At this point 32. Former Nash model 33. Environmentalist’s preix











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36. ___ marketing 38. Household retreat 41. Old Saturn models 42. Division of an oice bldg. 46. Groom’s answer, 2 words 48. Acquire 50. Temperature control knob




Solution to this puzzle in the 10/2/17 issue. Call 1.800.794.0760 for a FREE subscription.



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22 • September 18, 2017



Compiled by Jeffrey Bellant


GROUP EFFORT: ADESA Kansas City team members display a check the auction is donating to Children’s Mercy Kansas City. The money was raised during a special sale.

ADESA Kansas City recently presented a check for $50,457 to Children’s Mercy Kansas City, a local children’s hospital. The funds were raised for the hospital at a special sale and live charity auction event dubbed “Cars-n-Kids.” ADESA Kansas City donated $150

for every car sold. The auction also sold event T-shirts, hosted a shrimp boil dinner, and auctioned items like end zone pylons signed by Kansas City Chiefs players. Proceeds went to Children’s Mercy. “As a not-for-profit children’s hospital, Children’s Mercy is

so appreciative of community partners like ADESA Kansas City, who do more to make a difference for our patients and families,” said Megan Stock, assistant director of philanthropic community engagement and events. “We are grateful to everyone involved with the Carsn-Kids charity car auction for making it such a successful fundraiser.” Kevin Rhoads, general manager of ADESA Kansas City, said his team decided to raise money for Children’s Mercy because the hospital has helped several auction employees and their families. “When we were choosing a charity to sponsor, Children’s Mercy immediately came to mind,” Rhoads said. “The event was a huge success, with dealers raving about the shrimp boil.”

Anniversary Sale Breaks Record Capital City Auto Auction in West Virginia celebrated its 21st anniversary with a twoday event on July 21 and 22 that shattered previous sales records. On Thursday evening, free dinner was served in the lanes while over 300 dealers bid/bought 375 Front-Row Ready units and a special bank consignment of new inventory from a defunct Toyota-Mazda-Mercedes dealership. The 77-percent sale through was accomplished at an average sale price of $24,777. The following day saw 1,905 additional vehicles run through eight lanes selling 74 percent. Dealers also won $21,000 in prizes. “Dealers need quality product and our sales staf did a great job getting the product in for this special event,” said owner Joe Pyle.

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


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Smart. Simple. Fast. | Learn how Abdou gets MORE at *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.