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October 2, 2017

www.usedcarnews.com

CarMax Continues to Grow, But Costs Rise

TO THE MAX: Visitors to this CarMax store are greeted with offers to buy the cars they currently drive. The company enjoyed strong sales in its latest quarter, but is starting to have to pay more in employee costs.

stock approximately 240 used vehicles. In celebration of the Langhorne store opening on Sept. 20, CarMax and The CarMax Foundation awarded $8,000 in donations and grants to the Lower Bucks Family YMCA. Support for this organization came at the recommendation of the Langhorne CarMax associates. However, as the job market grows tighter, the cost of staing the stores rises. The company reported a $15.8 million year-over-year increase during the quarter ended Aug. 31 in the accrual for the company’s incentive pay. These increases were

Rush - Dated Material

CarMax Inc. continues to grow, but the growth is starting to cost more. This summer, CarMax opened three stores. The company entered one new television market (Salisbury, Md.) and added two stores in existing television markets (San Francisco and Hartford, Conn.). CarMax’s latest edition is in Langhorne, Pa. The used-car superstore chain celebrated the grand opening of its new store Sept. 20. This is the company’s ifth location in the Philadelphia area. The store is located at 1776 E Lincoln Hwy and has the capacity to

partially ofset by an $11.4 million decline in share-based compensation expense. CarMax is hiring to ill 50 positions for a new CarMax store in Colma, Calif., slated to open in November. Job applicants hired for the Colma location will be the recipients of special compensation incentives and sign-on bonuses – the largest in CarMax history for these positions. Entry-level associates are eligible for starting pay of up to $25 an hour. Additionally, all Colma associates will receive bonus compensation of $200 on every paycheck to help with cost of living expenses – a total

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of more than $5,000 every year. The associates will also receive a new store bonus awarded semi-annually during the irst two years of employment totaling $2,000. Right now, CarMax continues to do well despite some higher costs. Net sales and operating revenues increased 9.7 percent to $4.39 billion during the latest quarter. Used unit sales in comparable stores increased 5.3 percent. Total used unit sales rose 11.1 percent. Total wholesale unit sales increased 0.4 percent. Net earnings increased 11.7 percent to $181.4 million.


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USED CAR NEWS

October 2, 2017 • 3

Prices Rise as Hurricanes Reduce Vehicle Supply By Ted Craig

The recent hurricanes will deinitely impact the usedcar market by putting thousands of shoppers into the market while eliminating a massive amount of inventory. The impact’s size remains to be seen, however. Initial estimates had as many as half a million cars destroyed in Houston alone. Tom Kontos, chief economist for KAR Auction Services Inc., said those estimates were probably on the high side. However, there is no doubt the unfortunate events happened at a time when the wholesale market is experiencing an abundance of supply, Kontos said. “People need cars and at least the cars are available,” he said. Getting those cars to the consumers in Texas and Florida should prove a more eicient process than even after Hurricane Sandy, which hit the East Coast in 2012. Today dealers can restock their lots online and have the cars shipped to them from anywhere in the U.S. This is already driving up

prices as far away as northern Michigan. One measure of wholesale prices, the Manheim Used Vehicle Value Index, is on track for another record high in September. “Prices are on track to be up nearly three percent over August and six percent compared to September 2016,” said Jonathan Smoke, chief economist for Cox Automotive. “These are signiicant increases. If the pattern holds for the rest of September, we will be seeing the strongest annual price gains since 2010, when the economic recovery was beginning and used-car supply was severely limited.” All seven light-vehicle segments Manheim uses are seeing price gains month-tomonth and year-over-year. Even midsize sedans, which have been seeing price declines for 10 straight months, are seeing gains. However, Kontos said these price increases tend to have short durations. There were some concerns the large amount of cars being scrapped would overwhelm the salvage market. Kontos said the “numbers thus far seem very manage-

able.” The overall impact remains unknown, with several factors potentially afecting the wholesale market in the next few months. One is that rental cars are likely to stay in use longer as many drivers in Houston and Florida await their insurance payments before they buy replacement vehicles. The other key factor is the truck market. Fourteen percent of all pickup truck sales occur in Texas, and Houston in particular has some of the largest new-truck dealerships in the country.

In addition, the construction business drives truck demand and there will be plenty of rebuilding taking place in the next few months. Kontos said the good news here is more trucks were due to come into the wholesale market already, so this should keep prices from getting too high. The buy-here, pay-here business might end up the hardest hit used-car segment from the recent hurricanes. Ken Shilson, founder of the National Alliance of Buy-Here, Pay-Here Dealers said the performance

of in-house inance portfolios following other storms shows they take a major hit. “The losses on the portfolios in some cases were absolutely horriic,” he said. One the biggest challenges will be replacing lost vehicles. While the industry is grappling with an excess of late-model units, the older cars buy-here, pay-here dealers specialize in are in short supply. “We’re not going to be able to easily replace that inventory,” Shilson said. Meanwhile, hurricane season remains in full efect until November.

Equifax Breach Creates Challenges for Auto Finance Criminals exploited a vulnerability in Equifax’s website application to gain access to company iles, afecting as many as 143 million consumers. The company set up a website – equifaxsecurity2017.com - to help consumers check whether their data was part of the breach. Then, making matters worse, Equifax directed customers to a fake site over Twitter. Based on Equifax’s investigation, the unauthorized access occurred from midMay through July. The information accessed primarily includes names, Social Security numbers, birth dates, addresses and, in some instances, driver’s license numbers. In addition, credit card numbers for approximately 209,000 U.S. consumers, and certain dispute documents with

personal identifying information for approximately 182,000 U.S. consumers, were accessed. The credit bureau is offering consumers who may have had their personal information compromised a free year of its credit freeze product, TrustedID. This locks the customer’s credit report unless the freeze is lifted. These freezes are expected to add time to the process of obtaining credit in any transactions, including auto purchases. The data breach put more than consumers’ personal data at risk. It also put a repeal of the Consumer Financial Protection Bureau’s arbitration ban at risk. Consumer groups are calling for everything from Congressional hearings to the nationalization of the credit bureaus.

They are also using the breach to make the case for the arbitration ban. Equifax

tating breach,” said Amanda Werner, arbitration campaign manager for Public

scandals break every week would send a clear signal to bad actors like Equifax and Wells Fargo that they can continue to plunder consumers for proit.” The Congressional Review Act resolution that would block the CFPB’s arbitration ban has passed the House and the Senate Finance Committee, but awaits a vote from the full Senate. Equifax discovered the unauthorized access on July -Amanda Werner 29 and acted to stop the intrusion. Citizen and Americans for The company engaged an Financial Reform. independent cybersecurity “Perhaps more despica- irm that has been conductble is, at this very moment, ing a forensic review to deU.S. senators are weighing termine the scope of the legislation to take away our intrusion, including the speright to hold companies ciic data impacted. Equifax like Equifax accountable in also reported the criminal court,” Werner said. “Re- access to law enforcement pealing crucial consumer and continues to work with protections as new inancial authorities.

“Perhaps more despicable is, at this very moment, U.S. senators are weighing legislation to take away our right to hold companies like Equifax accountable in court” has ofered afected customers its TrustedID product free for one year. However, terms for TrustedID include an arbitration agreement. “It is despicable that Equifax would exploit consumers’ need for identity theft monitoring to avoid accountability for this devas-


4 • October 2, 2017

USED CAR NEWS

NEWS BRIEFS CFPB Finds Issues with Repossessions The Consumer Financial Protection Bureau recently released information on its supervisory actions in the irst half of the year, including those involving auto inance. Many auto credit servicers give borrowers options to avoid repossession of their vehicle if a loan is delinquent or in default. But the CFPB’s examiners found that one or more companies were repossessing vehicles after the repossession was supposed to be cancelled. Some creditors wrongfully listed the account as delinquent. In other instances, customer service representatives did not cancel the repossession order when feasible after borrowers made suicient payments. Also, some repossession agents did not check the documentation beforehand to see if the repossession had been cancelled.

Hearst Auto Unveils New HQ Hearst Autos, parent of several media properties targeting the automotive industry, announced the opening of its new permanent oice in Chamblee, Ga., just outside of Atlanta.

Located in Chamblee’s Antique Row district, the oice has an open loor plan dedicated to optimizing worklow, including whiteboard spaces that allow teams to share ideas openly and track design sprints over multi-day sessions. The decision to move into a new space was based on the company’s strong growth over the last year and its desire to establish a permanent Hearst Autos presence in Atlanta. The company commissioned local artist, Yoyo Ferro, to paint a custom mural in the reception and kitchen areas, and employees collaborated on Atlanta-inspired conference room names.

editorial reviews, photos and videos in the Edmunds app for iOS 11. The feature leverages depth-sensing, area learning and motion-tracking technology to scan a local environment and create a 3D mesh of an environment. This 3D mesh is used with ARKit to determine if the 3D model of a vehicle can it within that environment. Shoppers use the phone’s camera to scan a garage or parking space and then overlays a 3D model representative of the selected vehicle into the image. For driveways and other areas without walls, users will be able to create “virtual walls” in order to provide the same functionality. Edmunds Offers AR Option Once an area is learned, the user Edmunds announced an augment- can cycle through diferent vehicles ed reality (AR) feature that will help to see which ones may safely it. consumers visualize and determine whether diferent vehicles will it GWC Warranty Adopts Classroom in their garages, parking spaces and GWC Warranty recently adopted driveways. the sixth grade classroom of Colleen This new capability will be avail- Franchi at Wilkes-Barre’s Dodson able on the Edmunds app for iPhone. Elementary School. Speciications of nearly all U.S. veIn adopting Mrs. Franchi’s class, hicles from 1990 to present will be GWC employees banded together supported. to make monetary donations and This new feature was developed by collect school supplies for the class Edmunds on the Apple ARKit. The of 56 students. GWC Warranty also feature will be available alongside provided a 100-percent match of

employees’ donations. All the donations combined to meet Mrs. Franchi’s goal of supplying her class of many underprivileged children with the notebooks, folders, pencils, backpacks and more that they will need throughout the school year.

Honda Recalls Incorrectly Installed Airbags American Honda Motor Co. is recalling 646 2008-12 Accord, 2010 and 2012 Accord Crosstour, 2006-11 Civic, 2007-11 CR-V, 2009-12 Fit and Pilot, and 2010-12 Insight vehicles that received replacement passenger frontal air bag inlators. One dealership may have incorrectly installed the replacement air bag inlators. Honda will notify owners, and dealers will replace the passenger frontal air bag module assembly, free of charge.

PAGE 15

Published By General Media LLC USED CAR NEWS (ISSN 1555-7413) is published at 24114 Harper, St. Clair Shores, MI 48080 Phone: 586-772-5200 or 800-794-0760 Fax: 586-772-9400 www.usedcarnews.com Charles M. Thomas - Founder (1947-2002) Lynda R. Thomas, Publisher Colleen Fitzgerald, General Manager Editorial: Ted Craig, Managing Editor Jeffrey Bellant, Staff Writer Contributing Writers: Ed Fitzgerald, Jenny King, Sheila McGrath Advertising: Shannon Colby, Account Manager Marie Hingst, Account Manager

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

Vol. 23 • No. 13 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

October 2, 2017 • 5

Industry Mourns Pioneer

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Finance industry veteran Richard (Rick) Craig Potter died Sept. 5 after a lengthy battle with cancer. He was 58. Potter was the CEO of CAR Financial Services. He was well recognized throughout the inancial services industry. “The auto inance industry has sufered a great loss with the passing of Rick Potter,” said Ken Shilson, founder of the National Alliance of Buy-Here, Pay-Here Dealers. “During the more than 20 years I had to know and work with him, he was one of the smartest, and most talented professionals I have ever known in the auto inance industry. Rick combined his extensive knowledge with the highest character and integrity and made a positive diference in the lives of everyone who knew him. I am thankful to have known Rick and to have shared our great friendship. He will be remembered always.” Gary Page, president of SDA Inc., said that although his company and CAR Financial were competitors, Potter conducted business with such class and integrity that it allowed the two of them to become friends. “Through his leadership at CAR Financial, Rick was a true industry icon and had a profound impact on those around him.” Page said. “Through our 25-plus-year

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Rick Potter relationship, I saw how much Rick cared about his employees, the industry, and the general well-being of his friends. Our industry has truly lost a pioneer, shrewd business leader, and a dear friend. Our heartfelt thoughts and prayers are extended to his family, friends and his coworkers at CAR Financial.” Potter was born in Daytona Beach, Fla., and graduated from the University of Central Florida in 1982. Potter is survived by his wife, Emily Paige Potter, three children Adam Harrison Potter, Nathan Daniel Potter, and Hannah Marie Potter, and his brother Jefrey Potter.

Dealers Grow Less Optimistic More dealers, especially independents, feel market conditions are weakening. The Cox Automotive Dealer Sentiment Index fell to 45 in the third quarter, which means more dealers felt market conditions were currently weak relative to those who felt market conditions were strong. Pricing pressure, increasing costs of doing business, declining proits, slow customer traic and a lack of inventory, especially for independent dealers, are the factors that drive dealers to be less positive about the current market. Dealers were more positive about the next three months. More dealers expected conditions to be strong in the future, compared to those who think conditions will be weak. Derived from a quarterly survey that Cox Automotive issues to a representative sample of franchise and independent auto dealers, the index measures dealer perceptions of current retail auto sales and sales expectations for the next three months as “strong,” “average” or “weak.” The survey also asks dealers to rate new car sales and used car sales separately along with a variety of key drivers including con-

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sumer traic. Responses are used to calculate an index where any number over 50 indicates that more dealers view conditions as strong rather than weak. Franchise dealers are actually very conident. It’s independents that brought the scores down. The biggest split comes in the views on the current used vehicle sales environment. While both were positives, franchise dealers registered a score of 68, while independents had a less enthusiastic score of 53. Independents score gave the lowest scores to their proits and customer traic in the last three months. They score those 38 and 36 respectively, while franchises dealers scored them 50 and 42. Traic was the only category franchises dealers scored as below average. Independents scored ive of their 11 categories as below average. Two categories were from franchise dealers only. Franchise dealers cited market conditions as the factor holding back their businesses the most. For independents, it was lack of inventory.

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6 • October 2, 2017

USED CAR NEWS

KAR Plans for New HQ

KAR Auction Services Inc. announced the development of a new Carmel, Ind.-based corporate headquarters and campus. The 13-acre site will host a new, 250,000-square-foot oice building featuring an open loor plan and broad collaborative workspaces. Nearly 1,600 of KAR’s 17,400 employees are located in Indiana, and the new location provides space for an additional 400 jobs. “We want to give our employees a workplace that relects our entrepreneurial culture and inspires them to create and innovate the moment they walk through the door,” said Jim Hallett, chairman and CEO of KAR. “The new campus will give us the additional space necessary to increase our workforce as we expand our global footprint. And it will help our company, the city and the state attract and retain some of North America’s

best and brightest talent.” KAR’s new $80-million headquarters and campus will house the company’s innovation, technology, data and service divisions and serve as the U.S. headquarters for TradeRev, KAR’s mobile app-based auction subsidiary. The new corporate oices will be located two miles south of KAR’s current headquarters. Construction on the new campus is scheduled to break ground in early 2018 with a target move-in date of the second half of 2019. In other KAR news, Automotive Finance Corp. announced a promotion that allows dealers to pay no loor plan inancing fees and zero percent interest for 45 days on any vehicles bought and sold on TradeRev. The TradeRev – AFC promotion runs until Dec. 31.

Crook Uses Stolen IDs A Kansas man was sentenced to 28 months in federal prison for using stolen identities to obtain car inancing. The sentence is in addition to 20 months he has already served. Reu Charles Chamberlain, of Wichita, Kan., pleaded guilty to two counts of wire fraud. For Cars, Trucks and Vans

In his plea, he admitted he used a stolen identity at Eddy’s Chrysler Jeep Dodge in Wichita to qualify for a $48,902 loan to buy a 2016 Dodge Challenger. At Midway Motors in Wichita, he used a stolen identity to qualify for a $44,746 loan to buy a 2015 Dodge Challenger.

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8 • October 2, 2017

USED CAR NEWS

DEALER LIFE DEALER MAKES COMMUNITY FOCUS OF ALL HIS EFFORTS By Jeffrey Bellant

Eric Freeman, owner of Freeman Motor Co. in Portland, Ore., knows a little bit about community service. The two-time Oregon Quality Dealer of the Year (2007 and 2017) was this year’s runner-up to the National Quality Dealer of the Year. Freeman Motor Co. also won the 2013 National Community Service Award presented by the National Independent Automobile Dealers Association. These awards honor dealers who go above and beyond in serving their communities and Freeman keeps busy in this area. Freeman has been in business 27 years, carrying 85 units in inventory and turns a healthy 75 units each month. Vehicles on the highline used-car lot have an average retail price of $38,000, including a split between cars and SUVs.

The dealership has supported charities that ight sex traicking and child abuse to those that provide housing for the homeless and promote adoptive families for foster children, among many others. One of the charities Freeman supports – and was spotlighted during the NIADA award ceremony – is African New Life, which supports children at attend school in Rwanda.

GIVING: The Urban office, above, is just one way dealer Eric Freeman gives back to the community in Portland, Ore. Freeman has been recognized several times by the Oregon Independent Automobile Dealers Association and the National IADA, below, for his efforts,

Not only did Freeman Motor Co. ofer inancial support, he took a team to Africa to experience the work irsthand. “We took a team of 19 – including 11 employees – over to Africa in 2016 to experience it,” he said. They got to see the actual children that they support each month.

Recently, Freeman has combined his love for community service along with his business savvy on a project that he hopes will be good for both community and commerce. The word “community” comes up a lot when Freeman is speaking and it’s that idea that helped shape his new project. A few years ago, Freeman had bought some property

as part of a transaction to expand parking. He wrestled with what to do with a building he purchased. Going through downtown Portland, he came across what he called a “lex coworking space,” a space that allows people from diference businesses or new entrepreneurs to share working space. “I love entrepreneurship and the idea of small businesses getting the help they need,” Freeman said. What a coworking space does is provide the amenities, business address, conference room and oice space in one place that an individual business owner couldn’t aford to purchase on their own. Urban Oice is located in the Johns Landing neighborhood of Portland. It provides its own oice community, where diferent businesses can rent out space monthly to serve their needs, Freeman said. “We built up a space to house 100 businesses,” Freeman said. “We opened in June and I love the fact community is building around this location.” The space includes a huge kitchen, seating areas, conference rooms, bar areas, a workout facility, televisions and Internet. “It’s so much more than what a traditional oice space would hold,” Freeman

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said. It’s not just for the businesses themselves, it’s also for the neighborhood. “We also have a 6,000 square-foot event space on the irst loor,” he said. Freeman said it’s a great place for entrepreneurs, as well as an option for a large company that might be based somewhere else, but has a handful of employees in the Portland area. Urban Oice already has 10 tenants ranging from a business recruiter for nurses to a media professional working in video. Freeman said it’s not about signing up a bunch of tenants to ill the place. “You want it to have a certain culture,” he said. “So you’re looking for certain business and people to help create that culture. It’s a family culture you’re looking for. People that care about each other. People want to feel important.” Local support has been strong, he said. A local school district recently scheduled their administrative retreat at the Urban Oice. “You don’t have to rent a desk to use the conference or event space,” he said. Freeman’s still learning on the run. Originally, he had charged parking fees since the building only had 23 spaces. “We found that people would rather do it on a irst-

come, irst-serve basis,” he said. “So we made it free.” Freeman said rent for the oice is one lat monthly fee that includes all of the amenities from Internet to the gym. Freeman’s going to use the space, too. He is starting a business called Dealer Consultant Pro with his business partner Marshall Zoerner, one of their general managers, Kara Copeland, and Joe Lescota, formerly of NIADA and Northwood University. “We’re hosting a dealer management seminar here in November,” he said. Freeman said communities don’t look at car dealerships as places that give back to non-proits, schools and communities. With these diferent projects, Freeman wants to change that view in Portland. “We’re actually working with four other dealers in the Portland area, teaching them what it’s like to be involved in their surrounding community,” Freeman said. “It proves contagious. “It’s getting guys to look at the bigger picture (and ask), ‘What kind of legacy are we leaving?’ “We’re leaving a legacy of companies that gave back to a larger cause.”


10 • October 2, 2017

USED CAR NEWS

Disruptors Spend More Time Shopping for Cars Consumers continue spending more time using their smartphones to conduct research prior to visiting a dealership, according to the J.D. Power 2017 New Auto Shopper Study. The study analyzes how new-vehicle buyers use digital devices – tablets, smartphones and computers – to gather information prior to purchase, as well as which websites and apps they use during the shopping process. The study also examines which types of content new-vehicle buyers access during their shopping process and which content they find most useful. This year, the study also explores the behavior of users of disruptive websites and apps that consumers use in their everyday life. Users of disruptive websites and apps comprise 13 percent of new-vehicle buyers who use automotive shopping sites. They tend to be younger, but are not limited to the youngest generations – although 33 percent of Gen Y are users, 18 percent of Gen X and 6 percent

of Boomers and Pre-Boomers also fall into the disruptive user category. “It is important that we understand the automotive shopping patterns of disruptors, as it gives us a look into the future of what the digital auto shopping ecosystem may look like, as more and more consumers embrace these disruptive websites and apps,” said Sean Weingarten, director of automotive retail practice at J.D. Power. “It’s not just young people – it’s anyone who is open to the adoption of completely new experiences.” The path to purchase for these disruptor site and app users is similar to nondisruptive site users – both groups take about four months to shop for and buy their new vehicle - but disruptive site users spend far more total hours conducting automotive research on the internet than non-users (19 hours vs. 12 hours, respectively) and visit more automotive shopping sites (12 sites vs. 9 sites). Users of disruptive technologies also visit more third party sites

and are far more likely to use smartphones to conduct automotive research (69 percent) than are non-users (38 percent). More than half (56 percent) of automotive internet shoppers conduct research on a mobile device. Smartphone usage continues to trend upward in 2017 (42 percent vs. 37 percent in 2016), while tablet usage dips slightly (32 percent vs. 33 percent in 2016). The

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average internet shopper spends 13 hours conducting automotive research online, and now 36 percent of the total time spent is on mobile devices. The study examines 35 third-party websites. The three most frequently visited third-party sites have remained consistent since 2012: Kelley Blue Book (41 percent), Edmunds (29 percent) and Consumer Reports (23 percent), although both

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Edmunds and Consumer Reports experienced notable drops in visitation this year. More than half (53 percent) of automotive internet shoppers indicate that they knew the make or model of the vehicle they wanted to purchase before beginning to shop, then went on to buy it. In fact, since 2013, the percentage of buyers that know the exact model they initially want to buy has increased steadily.

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12 • October 2, 2017

USED CAR NEWS

RETAIL MARKETS CALIFORNIA Brittany Hibdon, dealer principal, Hibdon Auto Center, Orland, Calif.: “We’ve been in business about seven-and-a-half years. We’re about 100 miles north of Sacramento. “My husband Shawn and I are both dealer principals. He runs the service department and I run the sales end. It’s a good partnership. “Right now we have about 80 in inventory. We’re a little light now. It’s kind of the way the market has been. It’s been a little bit hard to buy cars. “On average, we sell about 50 a month. It’s been pretty consistent for the last yearand-a-half. “Mostly we get our vehicles from the auctions. We use North Bay Auto Auction in Fairield, Calif. “We use ADESA Brasher’s in Sacramento and some of the bigger auctions down south, like Manheim Southern California and ADESA Los Angeles. We also get a few trade-ins that we keep

and we try to buy some of the street. “We do a lot of subprime business. About 80 percent of our business is subprime. “Our retail prices range from about $12,000 to $20,000. We want to give the customer something that’s new enough and has low enough miles to be a good, long-lasting car, but not anything too expensive. “Our average model year is two- to four years old and average mileage is maybe 60,000 to 80,000 – that’s our sweet spot. Sometimes it’s a challenge to ind the mileage we’re looking for. “We carry more cars than anything else. They are more readily available and a little bit easier to inance. But we still try to carry about 40 percent of our inventory in trucks and SUVs. “The average recon cost is about $800 to $900. We spend some money on them. We want to make sure that they’re good quality cars in good shape. “We have a full-service de-

partment and we do a lot of retail work. “We do a lot of radio advertising. My husband and I have a lot of fun doing those ads – it’s our voices. So we’ve become pretty well known in our area. We also do quite a bit on Facebook, as well. “We just sold a 2013 F-150 the other day. It was a crew cab with four-wheel drive. That’s one a lot of customers want. It had 105,000 miles. I want to say we sold it in the low $20,000s.”

MICHIGAN Tony Lobretto, owner, Alamo Valley Auto Sales, Kalamazoo, Mich.: “I’ve been open 20 years as of this year. I have one location. “Normally I have about 20 in inventory. I’ll have as many as 40 just before tax season. “I’m selling about six per month. Last year, we were doing a little better. We did have a better tax season this year compared to last year. It didn’t come back in August

Compiled by Jeffrey Bellant like it normally does, as kids are going back to school. We didn’t have a big surge. It’s got me baled right now. “Even though I’m a cashonly (store), I do a lot of business during tax season, because that’s when people have a lump sum. “The thing is, all of my stuf is mostly $3,995 and under. So it’s not unusual for someone to get $2,000, $3,000 or $4,000 back in taxes and go out and spend it on a car. “I’ve never done subprime or buy-here, pay-here. “I just get my inventory from the auctions. I use Greater Kalamazoo Auto Auction and West Michigan Auto Auction in Moline, Mich. “I very seldom sell at auction. “Most of my cars will fall between the 2000 model year and 2005. “Miles are going to be anywhere from 110,000 to 160,000 or 170,000. Everything’s got high miles these days. It’s hard to ind the ones that have just over

100,000. You pay premium if you do. The buy-here, payhere guys will pay a lot more for those because they can sell them for so much more. “I sell mostly cars (not many trucks). “The majority of them are American-made. “For reconditioning, I would say I’m spending $500 to $600 on most of them. Tires and batteries have gone up so much. That’s what has (inlated) the reconditioning costs. “The cost is typical of this time last year. We farm that work out. “Outside of our website, the only thing we do for advertising is we run some ads on Craigslist. During tax season, people are looking at Craigslist. “I just sold a 2005 Buick Lacrosse. It had 136,000 miles. We sold it for $4,200. “I’m getting a little bit more traic now than I did in June and July. I think it’s because people need a car for their high school kid or college kid to drive.”


14 • October 2, 2017

USED CAR NEWS

WHOLESALE MARKETS MICHIGAN Carl Miskotten, general manager, America’s Auto Auction West Michigan, Wayland, Mich.: “We’ve been in business since 1996. I have owned the place two times and we sold in April to America’s Auto Auctions. It’s been perfect. This auction has been going well for years. “We have 12 lanes. “The last six weeks, the volume has been down a little bit, but the percentages have been higher. “Percentages have been in the low 60s. Volumes have been averaging 1,100, but we’re probably used to 1,300. “Part of that (dip) is there is a slowing of the Canadian stuf just a bit. “We’re probably 75 to 80 percent dealer consignment. “On the commercial side, we have Santander, Capital One, Element, T.D. Auto Finance, etc. “I think the lease thing is changing some. Some of the

a spring market going into the fall. “I think retail has picked up. I think we’re going to have very brisk sales. We’ve got 1 million cars out of circulation; they’ve got to get back in somehow. “I think auctions and dealers are pretty thankful for what we have in this country. There are always some people who want to complain all the time, but I think sometimes we forget to count our blessings.”

people who used to have tons of leet cars are having more people who work at home and just pay for their mileage (as opposed to lease a car). “We’re drawing anywhere from 850 to 1,100 dealers in the lanes. Most of them come from Michigan, Illinois, Indiana and Ohio. “We also have a commercial vehicle sale. It’s the irst Friday of every month. It’s mainly small trucks. For example, Consumer’s Power will sell 10 to 12 pickups a month. “We also have a weekly loat sale. “Our average price when we have the SantanderChrysler credit sale usually runs $9,600 and $10,200. That’s every other week. On the weeks we don’t have that, the average price is about $8,000. “I think in the last four or ive weeks, everything is selling well. With the lack of cars in some of the areas that have ben hit with acts of God, it’s (causing) a bit of

TENNESSEE Kip Jarrell, owner/general manager, Clarksville Auto Auction, Clarksville, Tenn.: “We’ve been in business 31 years. My dad and I did this together until he retired, and then passed away in 2010. “Clarksville is a great town because the (military) base, Fort Campbell, is right here on the border with Kentucky. When the soldiers are here, they are buying everything – clothes, SAVANNAH, GA

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cars, whatever. “We have three lanes. Volumes have been down. I’m in a small country-type town about 50 miles outside of Nashville. Throughout the years, I would be able to pull cars from Nashville, but now there is an ADESA and Manheim there and other auctions. That’s really what’s hurt my consignment. “I get a lot of the repos from here (locally) and I get some new-car trades. Other new-car dealers are keeping back some cars and selling them to the public, instead of wholesaling them anymore. “We run about 150 and well at least 50 to 60 a week. “I’ve got three lease companies that I run for. I’ve had Wheels for about 24 years. My leasing repos will sell at 99 percent every week. That’s pretty much my bread and butter. Dealer consignment makes up 35 to 45 percent. “The new-car dealers are not selling the used cars like

Compiled by Jeffrey Bellant they were. They are also not getting the trade-ins like they used to. Cars can last up to 200,000 or 300,000 miles, so people are not trading them like they used to. If they do, they are pretty worn out. “But I’ve got people that have been coming here for 20 years. “We have (online sales). We have an independent guy who came up with his own program for us. We’ve had it three or four years. “I’m going to say the average price is $10,000 to $15,000. That’s just because of the lease cars. But we’ve got a variety, from old note stuf all the way up to a 2016 model. “On the lease side, trucks and cargo vans sell well. The cargo vans will bring $2,000 or $3,000 more than the lease companies ask for them. That market is high. Trucks are the same thing. “It always picks up for us in the fall and that will stay strong all the way into next summer.”


USED CAR NEWS

October 2, 2017 • 15

DISCONNECTED JOTTINGS FROM I love living “in the South.” I have done since the day I landed in Nashville in June of 1982 with some other colleagues from the UK.

TONY MOORBY

growth rates and expansion all around, there’s still a sense of being in a good place. I suppose, to a large extent,

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

The warm air wrapped itself like a warm blanket around your shoulders. That warmth has shown itself in so many ways since then. Not just in the weather but the people, the food and the ambience of a slightly slower lifestyle than other parts of the country. There’s a hands-on, person-to-person feel about living here. While the pace has picked up remarkably in recent years, with phenomenal

it starts with the weather as we enjoy the full four seasons, but it’s only cold in January and February and swelteringly hot in July and August. The other eight months aford us a generally mild and gentle atmosphere, disturbed occasionally by spring storms as the seasons shift. It’s rarely windy unless a front is blowing through or nature is pitching an occasional it in one way or another.

I found the food attractive too – still do. I was 150 pounds and wore a 38-inch long suit in 1982 and almost had to run around in the shower just to get wet. Now I’m more like one of those hogs on its way to a pit for barbecue. These days you can ind Southern styles of barbecue all over the States and it’s even showing up back in London. At the same time, a great deal more culinary sophistication has found its way here. Nashville is now a hot spot for almost any food imaginable, with steak houses to rival anything in New York or Chicago and Asian joints to mirror Los Angeles. Chicken tikka masala may not outdo grits yet but there are four Indian restaurants within a mile of my house. But a Southern style breakfast with all the ixins still takes a lot of beating. Even country hams from central Kentucky, Virginia and here in Tennessee are now being compared to some of Italy’s best prosciutto or Spain’s

C R O S S WO R D 30. Porsche model 33. Hyundai sedan 35. Police vehicle, 2 words 37. Talents 39. Old Saturn model 41. Split 42. Classic car 43. Part of mpg 44. Entirely 45. Braking system, abbr. 46. Put on paper 47. Shade of green 48. Workmanship 49. Have a snack Down 1. Toyota staple 2. Meadow 3. Used car storage area 4. ___ hurry, 2 words 5. Like Ferraris and Fiats

And then there’s the language. As one given to the admiration of linguistic dexterity, especially with similes, metaphors and puns, there’s no better place in America to listen to lowery exaggerations and comparisons and I’ve heard a ton; one dealer about another, “He’s lower’n a snake’s belly in a wagon rut!” or “He’s so crooked he could hide behind a corkscrew!” The words themselves have to ind new spellings for illumination; on that subject, laht bub for light bulb, hisn and hern for his and hers and words that run together for a complete sentence or question. My irst run into a gas station back in ’82 where they still had an attendant to pump the gas was greeted with, “Checkatorlfuryer”? I love Southerners – bless their hearts!

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

By Myles Mellor

Across 1. Safety system being installed in new models of many cars, goes with 12 across 7. Upscale Buick 10. Very very long time 11. Mazda model 12. See 1 across 14. Light metal used in car manufacture, abbr. 15. GMC SUV 18. Hyundai hatchback 21. RAV 4, e.g. 23. Land of the brave and free 24. Intelligent 26. Old Rambler manufacturer 27. Used car sale condition, 2 words

jamon iberico. Vineyards have been sprouting up all over the place – and decent ones, at that. I had the chance to invest in one about 15 years ago and couldn’t as I’d just put money into a car sales and recon center. I sometimes rue that decision and could see myself quite handily as a winemaker. But in the end it’s people that form a lasting impression on where you ind yourself as comfortable, normally taking a lifetime to establish that sense of being. Here in the south it seems a bit easier, more open and outgoing; a warm welcome hovers everywhere, people say ‘hello’ in the street or give you a stubby hand wave from a truck window on a back road. Folks are polite in the supermarket – staf as well as customers.

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16 • October 2, 2017

USED CAR NEWS

AROUND THE BLOCK

Compiled by Jeffrey Bellant

NEW BEL AIR OPENS ITS DOORS

Debut: The Nichols family and various local officials formally cut the ribbon before the first sale at the new Bel Air Auto Auction in Belcamp, Md.

BSC America opened the doors to its new Bel Air Auto Auction facility on Sept. 14. On the preceding evening, the Nichols family hosted a special customer preview, providing both refreshments and facility tours for many of their dealer customers. Following the ceremony, Ray-

mond C. Nichols, CEO of BSC America, sold the first car to cross the block. Vice President Michelle Nichols-Neff capped that by announcing that the auction would make a donation to the Hurricane Relief Funds in an amount equal to the sale price.

BSC America President R. Charles Nichols said the auction’s official opening comes two years after the groundbreaking ceremony that began the construction process. “It has taken us many years of planning and a tremendous amount of work on the part of everyone involved in the building and moving process to bring us to this exciting point in our auction’s history,” Nichols said. The new site includes a 75,000-square-foot, 10-lane auction facility, restaurant and administrative office building, as well as a separate 50,000-square-foot “Vehicle Enhancement Center” which houses both mechanical and body shops, reconditioning bays, paint booths and an imaging center. A separate building provides a streamlined check-in facility for dealers and transporters.

Manheim Adds Southern Sale Manheim celebrated the grand opening of Manheim Wilmington Sept. 15. Manheim’s mobile auction presence in Wilmington. N.C., is one of the company’s longest tenured. “Due to overwhelming interest from our dealer clients, the Wilmington sale has experienced signiicant growth, more than doubling in volume in the last few years,” said Kevin Cook, general manager at Manheim Wilmington and Manheim North Carolina. “Over 25 consignors now run more than 225 cars per week, proving that this location is ideal for a more permanent home. We’re looking forward to being able to ofer more full-service options to an even wider range of clients.” With two lanes equipped for inlane and online auction capabilities, it also ofers inspections, enhanced imaging, OVE, inancing options, as well as DealShield.

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

Working with our generous auction partners, Santander Consumer USA and Chrysler Capital will share the holiday spirit with several charities again this holiday season – and you can help! Each time your dealership purchase a car at auction, Santander Consumer USA, Chrysler Capital and participating auctions will donate a portion of the proceeds to one of three selected charities.*

www.childlegacy.org

www.mercyintl.org

www.stjude.org

*Combined donation will total $6 per auction vehicle purchased. Total dollars collected will be split evenly between all three charities.

© 2017 Santander Consumer USA Inc. All Rights Reserved. SC-AD_70912-0_092017


USED CAR NEWS

October 2, 2017 • 17

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Special Advertising Section

18 • October 2, 2017

Make Your Good Dealership Great In this industry every dealer knows how to “say yes” to their customers, but now there is an option to join a community of dealers committed to delivering a dealership experience, Where Yes Means More. Founded in 2011, CARite is a branded network of car dealers with a captive subprime leasing company and a mission to provide customers with more than just an approval by delivering on its three founding principles. These principles are to provide customers with: • Better cars, • A better experience • Peace of mindregardless of their credit history. Every dealership ofers a wide selection of vehicles, haggle-free pricing and multiple inancing options so customers can shop

with true peace of mind. The CARite partner model enables independent car dealers to better serve consumers with credit challenges. Participating dealers adopt the nationally recognized CARite brand identity and gain access to CARite’s proprietary systems and standardized processes. This includes exclusive access to a unique subprime leasing platform, which allows them to approve customers for leases on late model low mileage cars. In addition, CARite has secured relationships with leading inance companies to provide our partners with an opportunity to participate in programs not traditionally available to independent dealers. At CARite we

have standardized dealership technology and processes to drive proitability in your dealership. This includes negotiated national agreements with CRM, DMS, and Website providers. The beneits of these agreements are available to our dealer partners and we operate using common technology standards so that all dealerships can follow the same processes and beneit from the same information sources. If you are an independent dealer and are interested in joining a dealership network to better service subprime customers, then consider a partnership with CARite. For further inquiries, please visit www.carite. com/open-your-store and complete the initial form.

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USED CAR NEWS


USED CAR NEWS

Special Advertising Section

October 2, 2017 • 19

The Road to Success in Buy-Here, Pay-Here The road to success in buy-here, pay-here is not an easy one. It takes hard work, knowledge, capital, consistency, and investment in the right relationships that help build a business and increase the number of people that business can serve. A relationship with CAR Financial can provide a dealership with capital, knowledge, consistency, and the ability to do more. CAR Financial ofers several products that provide capital for buyhere, pay-here dealers. These include bulk purchases (of either retail or lease contracts), payment interval purchases, aged pay share purchases, and loor plan capital for inventory investment. CAR Financial also provides servicing for dealers who may need help in scaling collections while they focus on growing sales. At CAR Financial we strive to understand each business and their speciic goals so we can provide the right custom solution. Additionally, any dealer can request a free portfolio evaluation from CAR Financial. We provide this as a value-added service to dealers in our industry to

help aid them in understanding their current portfolio and therefore better understand their future business needs. CAR Financial has a proven track record of over 25 years in the auto inance industry. We can help you in all economic times by customizing a purchase or service program that meets your needs while providing quality service through a single local dealer point of contact. CAR Financial operates in 45 states and is continually evolving its programs to meet the ever-changing needs of the buy-here, pay-here market. This message of consistency, integrity, lexibility, support, and leadership was championed by our President, Rick Potter. As we remember Rick in our hearts, we promise to carry his message and mission for this industry forward.

Interested in more information on CAR Financial Services’ programs and services? Go to www.carinancial.com or call 877-570-8857.

Copart Delivers a Personalized Buying Experience With the newest release of the Copart Member Preference Center, buyers can better manage their email subscriptions. “Our buyers are foundational to our business, so we want to ensure they’re getting their vehicle information exactly how they want it,” said Will Franklin, Executive Vice President at Copart. “The latest update of the Preference Center allows buyers to tell us their preferred email language, frequency and content so that we can deliver meaningful communication.” Emails are available in three languages – English, Spanish or French Canadian   Copart’s updated Preference Center, visible within “Message Settings” when logged into a member account, includes integral new features for an enhanced vehicle searching, bidding and buying experience: • Option to select up to ten Copart locations for location-speciic auction reminder emails and special event emails • Opportunity to deine preferred vehicles, price ranges and intended purposes for customized vehicle promotion emails • Ability to self-identify buying needs for more personalized emails

Along with improvements to the Preference Center, Copart has made other signiicant technology advancements in the past year. In September 2016, the company launched a mobile-responsive version of its website, Copart.com, for a faster user experience. In April 2017, it announced the update of the  Copart Mobile App, which now includes a license upload capability, language settings and a smart search tool. Most recently, in June 2017, it expanded its  website language oferings  from six to seven languages with the addition of Mandarin Chinese. “The Preference Center is just another testament to Copart’s vision: ‘To provide an unmatched experience, every day and everywhere, driven by our people, process and technology,’ ” said Rama Prasad, Chief Technology Oicer.  To view the updated Preference Center and gain access to online auctions, become a Copart Member at Copart.com/Register.

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Special Advertising Section

20 • October 2, 2017

YOU CAN HAVE MORE CONTROL Have you ever had a customer wreck the car and then disappear? The insurance company denies the claim because they can’t get cooperation from the customer. Have you ever had a customer stop paying for their insurance but keep driving the car? When you locate the car, you ind it’s been badly damaged. The insurance company denies the claim. Even worse, have you ever had a customer ile a claim, receive money from the insurance company but doesn’t ix the car? We’ve all had similar frustrating experiences with customers and insurance claims. What if you could have more control over the physical damage insurance? Northland Auto Enterprises recently introduced their new physical damage protection and program called Coverage Plus. es Coverage Plus gives you the control you’ve been searching for! Coverage Plus is a policy issued car, to ance the dealership for physical damage e you ey coverage. x the You can add your leased or ences f you buy-here, pay-here vehicles to

your policy and know for sure that they’re covered for physical damage. Your customer reimburses you for the cost of the coverage at the same time they make their vehicle payment. You are in control and the customer has the beneit of fulilling the requirements of the lease or purchase agreement. Customers also beneit from lower premiums in many cases. The premiums are based on the value of the car rather than on the customer’s credit or driving record so all customers qualify. This is deinitely a program that all dealers will beneit from and should check out! Contact Northland at 800-8793433 for more information on the Coverage Plus program or visit us at www.HelpingDealers.com.

USED CAR NEWS

Customer Loyalty – It’s NOT about the Best Price If recent research is accurate, loyal customers provide 60-70% of annual revenues. Buy-here, pay-here dealers invest a lot of time and money to acquire new customers. Bain & Co. reported that a 5% increase in customer retention can increase a dealer’s proitability by as much as 75%. Retaining customers is cheaper than acquiring new ones, but is this relected in our actions and budget? Customers become loyal primarily through service: • Consider loyalty programs for

paying on time and repeat purchases. • Reward referrals – customers are 77% more likely to visit a dealer as a result of a referral. • Focus on service through a friendly and simple payment process. At SDA, we provide buy-here, payhere, dealers with capital to grow. We encourage our dealers to maintain customer relationships and to build on them by collecting payments directly. Call SDA to learn how our 25+ years of experience can help you grow your business, keep your customers, and drive higher proits.

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Make 2018 a Better BHPH Year! The past two years have seen the highest level of subprime and deep subprime competition in history! Fueled by “cheap money” raised with Wall Street syndicated auto bond securitizations, the subprime auto inance market is an estimated $200 billion. Auto inance receivables – for both new and used vehicles as of March 31, 2017 – reached a record $1 trillion, $82 billion outstanding (the highest in history). The deep subprime market has seen credit unions, franchise dealers, inance companies and others enter this market. As a result, independents lost an estimated 20% of market share. “Opportunity knocks” now. Many deep subprime auto bonds are defaulting, and repayment declining. Finance companies and captives have tightened underwriting and credit. Banks are under scrutiny to tighten credit, and shift to customers with better credit. This will reverse subprime customers back to the independents. Their repossessions will be at auctions, creating new inventory. To capitalize on this opportunity will require: 1) Access to capital to regain market share. 2) Reconnecting with customers. 3) Good underwriting practices. 4) Good collection procedures. 5) Expert recovery operations.

6) Maximum cash ROI. 7) The right inventory. 8) Employees trained in compliance, to avoid mistakes that cost operators million$. The upcoming NABD BHPH Conference, in Orlando on Oct. 2325, addresses these items, plus more tips and best practice suggestions. All sessions are interactive. Our Solutions Hall with over 70 sponsors is the best place to see all the latest products and services while enjoying two receptions, a luncheon, and breakfast. If you need motivation, we have three of the best speakers ever at an NABD event: DJ Harrington, Steve Siebold, and Richard Flint. If you want personal instruction, attend training classes by Tax Max and HudsonCook, LLP during the Conference. Our discount room rates expire soon, so reserve your stay – for only $179 per night with no resort fees – online at www.bhphinfo.com or by calling (800) 204-7234 and using code “NABD” while a limited supply remains. Don’t hope that next year will be better; make it that way by attending the NABD Orlando Conference. NABD is the only used car special interest group exclusively for the BHPH industry. Membership has no dues and is obtained by attending one of the upcoming training events.

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Special Advertising Section

22 • October 2, 2017

USED CAR NEWS

Keeping Track of Assets Vital to Business Success High-risk customers who stop making payments or disappear with your vehicle are the biggest threat to your proitability. By installing the right GPS technology in the cars you sell to subprime buyers, you can save money, protect your assets and improve your cash low. But be aware that not all GPS devices are created equal! Just like cellphones and computers, GPS devices keep progressing and innovating. Using the latest technology from the right vendor is critical to your business. Network technology matters Some devices use CDMA networks. This is an old technology which is slated to start being discontinued as early as 2019, leaving some devices without coverage, and dealers in the dark. Other devices, such as newer generation IMETRIK models, use reliable 3.5G GSM networks, a technology which has no announced shutdown date.

In fact, Qualcomm has announced that it will stop developing UMB (Ultra Mobile Broadband) technology in favor of LTE. CDMA will not be ofering 4G/LTE. On the other hand, GSM is deemed to be the only network that will be used with future generations of technology such as 4G/LTE. As the IMETRIK platform already operates on GSM, it will simply continue to support new generations of technology, whereas CDMA will eventually become obsolete. With loans that last longer and vehicles needing to be successfully repossessed and resold, it is important to choose devices you know will last for years to come.

from a system of international satellites, resulting in improved GPS precision, reliability and availability. IMETRIK devices use the latest 72-channel generation receiver providing advanced satellite triangulation allowing you to track your asset down to within 6 feet of its location. This leads to reduced repossession fees and successful recovery stories like this one: “The car was where the IMETRIK GPS indicated, so it worked like a charm” says Brad Cruickshank, CFO, Transcan Leasing Corp., Vancouver, VC. “It was previously missed by our bailif as it was very well hidden.”

GPS technology matters Don’t rely on old technology to track your assets. A lot of progress has been made since 1978, when the irst GPS satellites were launched. Instead, opt for a device that is built with a GPS receiver conigured to receive simultaneous transmissions

Buy quality hardware A GPS device made with commercial grade parts may fail you just when you need it the most. IMETRIK devices are engineered with premium industrial-grade components ofering a broader operating temperature range that won’t let you down.

Ken Starr, President of Sunstar Capital in Albuquerque, NM explains: “The harsh New Mexico environment makes it almost impossible for any GPS unit to survive – that is, except for IMETRIK, which won hands-down in our ruggedness comparison.” Optimize operational costs It’s impossible to keep up with each one of your assets on the road. You need a system that works for you and accumulates the data you need, even before you realize you need it. Optimize your operational eiciency by using GPS tracking solutions with conigurable automated alerts such as Geofences, Power Loss and Automatic Rotational Daily Locate reporting. IMETRIK ofers all of these features and many more, allowing you to in-

crease your vehicle tracking and repossession eiciency. Installing one IMETRIK device takes just 15 minutes. IMETRIK ofers 3 types of GPS devices: the 3.5G LOCATE, 3.5G RECOVER and 3.5G COLLECT. Each model has its own set of features and functionalities to suit your unique needs. Whichever one you choose will provide the right tools to help you save time and money. In today’s used car market, auto loan delinquencies amount to $30 billion. With high-risk customers, more than half the loans default – the majority in the irst year. Only the right device can save you from potentially huge losses. For more tips on boosting your dealership’s bottom line with high-tech GPS solutions, call IMETRIK tollfree at 866-276-5382.

WHAT’S THE BETTER CHOICE? ATTN: BHPH, LHPH, & Lease’T’Own® Dealers!

LOSE Your customer wrecks the car and disappears. The insurance company denies the claim because they can’t get cooperation from the customer. YOU LOSE! The customer stops paying the insurance company but keeps driving the car. When you locate the car, you find it’s been badly damaged. You can’t get the customer to cooperate because you took the car. The insurance company denies the claim.

YOU LOSE! The customer files a claim and the insurance company pays the customer directly. The car doesn’t get fixed and the customer took the money. YOU LOSE!

WIN ADD COVERAGE PLUS TO EVERY DEAL! A COMP & COLLISION PROTECTION POLICY FOR YOUR CUSTOMER!

YOU are in control of the coverage - NOT your customer. Your customer reimburses YOU for the cost of the coverage at the same time they make their vehicle payment. All insurance claims are paid to YOU - It’s YOUR policy!

800-879-3433 www.HelpingDealers.com


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10/2/17