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October 16, 2017

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Hurricanes Drive Wholesale Prices Higher

Photo courtesy of Manheim STICKER SHOCK: Dealers bid for vehicles during a recent sale at Manheim California in Anaheim, Calif. Dealers across the country paid more at auction in September as the decline in supply and increase in demand brought on by the recent hurricanes pushed prices to new highs.

Rush - Dated Material

As expected, used-car prices rose in September after hurricanes Harvey, Irma and Maria destroyed hundreds of thousands of vehicles. The Manheim Used Vehicle Value Index reached 134.9 for the month, a new record high and a 6.3 percent increase from a year ago. Wholesale used vehicle prices, adjusted for mix, mileage and seasonality, increased 2.77 percent monthover-month. On a year-over-year basis, all major market segments saw gains, including midsize cars. Luxury cars, pickups, and vans outperformed the overall market. “Though wholesale market values

continue to show strength as a result of growing retail demand, most of this price strength can be attributed to the recovery following hurricanes Harvey, Irma and Maria,” said Jonathan Smoke, Cox Automotive chief economist. “Replacement demand combined with a reduction in available supply is causing wholesale inventories to tighten.” Black Book’s Used Vehicle Retention Index rose to 113.9 in September from 112.6 in August. “We certainly anticipated a nearterm increase in the Index in last month’s report, and with the storm replacement activity kicking in we

believe this activity will continue in the next month but not much longer,” said Anil Goyal, Black Book’s senior vice president of automotive valuation and analytics. “We saw a nice bump in several car segments, and we also anticipate several truck segments to see increases as well, especially with the demand for service and construction vehicles.” Most in the industry expect this bump in vehicle prices to last for a couple more months. After that, the ever-growing volumes of of-lease vehicles will drive prices down once again. On the new-car side, incentives

also remain a major factor. Incentives reached an all-time high in September. J.D. Power and LMC Automotive reported that average incentive spending per unit to date in September has set a new record at $4,050, surpassing the previous high of $4,024 in November 2016. Spending on trucks and SUVs is $4,044, up $206 from last year. Spending on cars is $4,062, down $38. Incentives as a percentage of MSRP are at 11.1 percent so far in September, exceeding the 10 percent level for 14th time in the past 15 months.

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USED CAR NEWS

October 16, 2017 • 3

Quality Dealer’s Secret: ‘Like Cars, Love People’ By Jeffrey Bellant

STERLING HEIGHTS, Mich. – Terry Wolfgang of Wolfgang Performance Motors in Holland, Mich., won the 2017 Michigan Independent Automobile Dealers Association Quality Dealer of the Year award on Oct. 7. “I humbly thank you tonight for this award,” Wolfgang said at the group’s annual event. “I’d also like to thank each of you (dealers) because you are role models, mentors, encouragers, good businessmen and friends.” Association Treasurer Joe Kuhta of GWC Warranty presented the award during the event at the GM Heritage Museum, a private venue that houses historic General Motors vehicles. Kuhta said Wolfgang’s career started cleaning cars at 10 years old in his father’s Mobile gas station in Grand Blanc, Mich. “”(Now it’s) 41 years later and 8,400 cars later,” Kuhta said. Wolfgang said the business remains “challenging, competitive and ever-changing.” He said dealers should relect on the jobs they do and service they provide. “Whether it’s (someone’s)

irst car, a truck for business or a van for an expanding family, we sell transportation,” Wolfgang said. “We help people’s dreams and lives happen. “Ultimately, our success in this business is based on our integrity and reputation. They keep bringing customers back year after year and keep our businesses growing.” Wolfgang said dealers do more than sell cars. They support communities, charities, families and employees. “You have to like cars and love people,” he said. “That will never change.” He urged each dealer in the room to dedicate themselves to recruiting two new members for the association in the coming year. Wolfgang was a graduate of the GMI Institute (now Kettering University) and later Baker College, “where he ine-tuned his entrepreneurial skills,” Kuhta said. He left work at GM Fisher Body and Paint plant in Flint, Mich. in 1976 to start selling cars at a dealership and rose to second in sales in two months. “He opened his current location in Holland, Mich., in 2015 and remodeled the store,” Kuhta said. “He cur-

Photo by Jeffrey Bellant STATE CHAMP: Terry Wolfgang (center), owner of Wolfgang Performance Motors in Holland, Mich., receives the Michigan Quality Dealer of the Year award. He is pictured with Joe Kuhta, left, and Otto Hahne.

rently sells 20 to 35 cars a month. All of them are sold as certiied vehicles. “His business philosophy is to treat each business customer as a friend and neighbor.” Wolfgang also serves as manager of the Holland Rescue Mission and is an ordained chaplain. The keynote speaker at the awards dinner was Michigan Secretary of State Ruth Johnson. She praised longtime dealers who stayed in Michigan

during the rough economic patch when state unemployment jumped past 14 percent and 75 percent of residents were underwater on their home loans. “I think auto dealers are true partners with the Michigan Secretary of State ofice,” Johnson said. “You are the economic engine of our state of Michigan. You’re ones that stayed during the bad times and continued to be job providers. “You’re the ones that brought Michigan back.”

Two other speakers at the event were industry pioneers – Maurice Van Collie, cited as the oldest active used-car dealer, and Sam Lafata, retired former auction owner. The association also presented scholarships to two students. Lindsey Foy from Law Auto Sales in Wayne, Mich., received $1,000 from the Daryl DeVries Scholarship and Katlyn Koetsier from K2 Autos, LLC., received $1,000 from the Ray Ketelhut Scholarship.

Trade Groups File Lawsuit to Stop Arbitration Ban The Consumer Financial Protection Bureau continues to move toward being in full efect and it’s starting to seem the only option to stop it comes from the courts. The CFPB’s rule prevents auto inance companies and buy-here, pay-here dealers, among other creditors, from using pre-dispute arbitration agreements to keep customers from joining class-action lawsuits. Creditors have long used these agreements as a condition of providing inancing. The industry has been preparing for the CFPB to take action against these agreements since it was created. Part of its original mission as stated in the DoddFrank Act was to produce a study on arbitration and when it did so the indings proved mostly negative. The CFPB unveiled its rule in July and it took ef-

fect Sept. 15. However, creditors using the arbitration agreements have six months before the CFPB starts enforcing the ban. For a while, it appeared Congress would stop the ban before it happened. The House of Representatives and the Senate Finance Committee both introduced amendments under the Congressional Review Act to block the ban. Then came some highproile scandals in which arbitration agreements igured prominently, such as Equifax’s data breach. “The recent data breach has probably afected the appetite of the Senate,” said Eamonn Moran, an attorney with Kilpatrick Townsend & Stockton LLP. Moran said there was always doubt about how serious the Congressional opposition really was. He

and others point to the failure of Congress to block the CFPB’s pre-paid debit card rule. The only hope left for the industry now starts to look like the courts. The U.S. Chamber of Commerce, American

Roundtable, and a coalition of associations located throughout Texas, iled a legal challenge to the antiarbitration rule. As outlined in the complaint, the legal challenge rests on several grounds, including that the rule

“The CFPB’s anti-arbitration rule would produce class action lawsuits that will take years to be heard, clog the courts, and result in comparatively small payouts for consumers. -Chris Stinebert Bankers Association, American Financial Services Association, Consumer Bankers Association, Financial Services

violates the requirements of the Dodd-Frank Act because the CFPB study was lawed and based on biased

data, and because the rule is harmful to consumers. “Such a broad showing of support from every corner of the consumer inance industry demonstrates how critically important today’s iling is,” said AFSA CEO Chris Stinebert. “The CFPB’s anti-arbitration rule would produce class action lawsuits that will take years to be heard, clog the courts, and result in comparatively small payouts for consumers. By contrast, disputes settled by arbitration result in quick decisions and payouts for consumers that average higher than class action settlements.” However, any court action can take time. “I wouldn’t bank on any event happening between now and (March),” Moran said.


4 • October 16, 2017

USED CAR NEWS

NEWS BRIEFS KAR Acquires All of TradeRev KAR Auction Services, Inc. has acquired the remaining interest in Nth Gen Software Inc., the parent company of TradeRev. KAR purchased a 50 percent stake in TradeRev in 2014 and acquired the remaining interest for $50 million in cash and an additional $75 million over the next four years contingent on certain terms and conditions including TradeRev performance. TradeRev will be led by Becca Polak, who for the last 10 years has served as KAR’s executive vice president, general counsel and corporate secretary. Polak will also be promoted to the position of chief legal oicer and secretary for KAR where she will retain oversight responsibility for KAR’s enterprise legal and corporate communications functions.

Nissan, Ininiti Inventory Opens to Independents RMS Automotive and Manheim are ofering a new co-listing capability to give independent dealers access to all open sale vehicles listed on RPM, the Nissan and Ininiti digital sales platform powered by RMS Automotive. The open sale inventory on RPM

will be simultaneously co-listed on Manheim.com and OVE. By clicking on a co-listed vehicle, Manheim and RMS Automotive use sign-on authentication to direct dealers to Nissan and Ininiti’s private label website where they can evaluate, bid, buy and make ofers. Facilitations of this pre-lane inventory are handled by the Manheim digital marketplace and are ofered with a sliding scale buy-fee based on vehicle price. Nissan and Ininiti have conducted closed franchise sales and grounding returns on the RPM technology platform with RMS Automotive since May 2016.

Chain Secures Funding for Expansion CarLotz, a Richmond, Va.-based used-vehicle consignment operation, announced the closing of a $30-million round of equity capital that will support the company’s continued nationwide expansion. CarLotz was founded in 2011. The company has grown to four locations with 70 employees, as well as a dedicated motorcycle operation. CarLotz is now actively seeking new retail locations in Florida, Texas, California, the Midwest, New

England, and the Mid Atlantic.

Westlake Launches Econtracting

meet basic living expenses and major inancial obligations. For auto title loans that are due in one lump sum, full payment means being able to aford to pay the total loan amount, plus fees and inance charges, within two weeks or a month. The rule is actually stricter for title loans because it does not allow a principal-payof option, in which borrowers can take out one loan that meets certain restrictions and pay it of in full.To date, Westlake has funded over 32,000 econtracts using the solution. On average, these econtracts have funded a half-day faster than traditional deals.

Westlake Financial Services announces the launch of its econtracting automotive loan origination solution in 50 U.S. states through DealerCenter. Westlake’s econtracting solution allows both independent and franchise dealers to sign contracts electronically, upload supporting documentation, and push all information to Westlake as soon as the loan package is complete. To date, Westlake has funded over 32,000 econtracts using the soluCDK Partners with CarGurus tion. On average, these econtracts CDK Global announced a stratehave funded a half-day faster than gic relationship with CarGurus. traditional deals. Through this collaboration, dealers using CDK websites will gain CFPB Issues Title Pawn Rule exposure for their inventory on The Consumer Financial Protec- CarGurus.com as well as leads from tion Bureau’s new rule on payday CarGurus shoppers. lending includes a section on auto title loans. As with payday loans, the CFPB found that the vast majority of auto title loans are re-borrowed on their due date or shortly thereafter. The rule requires that lenders determine whether the borrower can PAGE 21 aford the loan payments and still Published By General Media LLC USED CAR NEWS (ISSN 1555-7413) is published at 24114 Harper, St. Clair Shores, MI 48080 Phone: 586-772-5200 or 800-794-0760 Fax: 586-772-9400 www.usedcarnews.com Charles M. Thomas - Founder (1947-2002) Lynda R. Thomas, Publisher Colleen Fitzgerald, General Manager Editorial: Ted Craig, Managing Editor Jeffrey Bellant, Staff Writer Contributing Writers: Ed Fitzgerald, Jenny King, Sheila McGrath Advertising: Shannon Colby, Account Manager Marie Hingst, Account Manager

70 Years Can’t Be Wrong!

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

Vol. 23 • No. 14 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.

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USED CAR NEWS

October 16, 2017 • 5

Police Arrest Former Dealer’s Wife for First Wife’s Murder By Ted Craig

On the morning of May 26, 1990, Marlene Warren opened her door to a very unusual guest. It would be the last time the dealer’s wife would open her door to anybody. A woman stood there, dressed as a clown in full make-up, holding lowers in one hand and a gun in the other. The clown shot Marlene Warren in the face. She died two days later. The murder would be unusual anywhere, but especially in Wellington, Fla., a Palm Beach suburb so high end that the Warren‘s neighborhood was built around an airstrip for the locals’ private planes. As is usually the case, police started looking at the victim’s husband, Michael Warren. There were rumors he was having an afair with Sheila Keen, the woman who handled repossessions for his store, Bargain Motors. Authorities were unable to link the pair conclusively to the murder, even after featuring the case on television’s “Unsolved Mysteries.” But many of those involved never gave up seeking justice for Marlene Warren. In 2014, the Palm Beach County Sherif’s Oice Cold Case Unit reopened the homicide investigation. Witnesses were re-contacted and additional DNA analysis was conducted. Authorities inally felt they had enough evidence to take to a grand jury. The jury indicted Keen and a warrant was issued for her arrest. She was taken into custody on Sept. 26 in Washington County, Va., where she was living with her husband – Michael Warren. The pair married in 2002 and had been running a local restaurant since a few years after he was released from prison after serving two years of an eight-year sentence following his wife’s murder. He had been convicted of odometer tampering and insurance fraud, but not murder. Those charges arose from some very atypical business practices investigators found at Michael Warren’s store and rental car operation. For example, at almost all buyhere, pay-here dealerships, the more payments customers make on their installment contracts, the lower the amount outstanding becomes. At Bargain Motors, the amount customers owed actually increased with each payment. Then there was the matter of a car from Michael Warren’s rental operation – a white Chrysler LeBaron

that was reported stolen the day of the murder. The same car was reported leaving the Warren’s home after the shooting. It turned up in a nearby parking lot. The last driver left behind a clown wig. The Florida attorney general’s ofice eventually moved to seize Michael Warren’s businesses. Unfortunately, the decision took so long that he managed to get rid of his inventory. But the state still had the more than 200 inance contracts to collect on. Terry O’Loughlin was working in the attorney general’s organized crime division, handling lots of high-end foreclosures from the heyday of the Florida drug scene. His bosses tapped him to oversee the inance end of the case and that’s how he found himself in the car business. O’Loughlin knew nothing about running a buy-here, pay-here operation, but he quickly learned to respect those who did. The irst lesson that he learned was customers often don’t want to pay. O’Loughlin had one advantage over the average dealer – the Florida Highway Patrol served as his repo agents. O’Loughlin would watch the junkyards for the cars. And he would search the classiieds for cars being sold without titles. Other customers wanted to make payments and improve their credit. O’Loughlin was happy to help them out. Then there were some unusual encounters, such as the woman who had a special non-monetary payment relationship with Warren. O’Loughlin had to tell her it was now a cash-only business. The state wound down the operation after two years. O’Loughlin came away from the experience with a new interest in the car business. “It was an awful lot of fun,” he said. He became the lead automotive specialist for the attorney general’s oice. After several years, O’Loughlin decided he preferred the other side of the table and now serves as director of compliance at Reynolds and Reynolds, appearing as a regular speaker at numerous dealer events. The state of Florida is seeking the death penalty for Keen. O’Loughlin said he was glad when he heard about Keen’s arrest. He hopes Michael Warren follows her to prison. “He’s a devious fellow,” O’Loughlin said. “From beginning to end, a real slime ball.”

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USED CAR NEWS

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Carvana continues to expand its physical oferings and upgrade its technology. Carvana opened its newest vehicle inspection and reconditioning center in the Phoenix suburb of Tolleson, Ariz. Its newest facility joins counterparts in the Atlanta, Dallas and Philadelphia metro areas. At these centers, Carvana inspects, reconditions, photographs and stores the company’s 7,000-vehicle inventory. The newest center increases the number of cars and speed of delivery to customers as market expansions continue westward. The Tolleson facility is 179,000 square feet and will employ hundreds, spanning inspection, annotation, full paint facilities, mechanical repair and patented 360-degree vehicle photography. Each line is supervised by a master ASE-certiied auto technician who ensures that every vehicle listed on Carvana.com passes the company’s 150-point inspection and comes Carvana Certiied. Carvana also recently launched its newest car vending machine in Jacksonville, Fla. Standing eight stories tall, the fully automated machine holds up to 30 vehicles. This launch marks Carvana’s irst

in Florida, and the seventh of its kind across the country – joining those in Houston, Austin, San Antonio, Dallas, Nashville (Tenn.), and Raleigh (N.C.). Carvana unveiled its Jacksonville Car Vending Machine a little more than a year after expanding into the area. The company is also investing behind the scenes Carvana recently completed phase one of its national rollout with TrackX Holdings Inc. TrackX provides a software platform for the management of physical assets. The irst phase of the solution manages vehicle location and inventory of tens of thousands of vehicles at Carvana’s current U.S. locations. During the second phase, the TrackX Solution will further increase eiciencies by providing detailed analytics and worklows through the inspection, repair and maintenance processes. The implementations will continue as Carvana expands nationwide. “TrackX will help us achieve realtime visibility to the inspection, repair, certiication, and distribution of vehicles through our innovative and industry-leading online usedcar retail process,” said Ernie Garcia, founder and CEO of Carvana.


8 • October 16, 2017

USED CAR NEWS

NIADA POLICY CONFERENCE NIADA MEMBERS LOBBY CONGRESS FOR INDUSTRY By Jeffrey Bellant

More than 200 members of the National Independent Automobile Dealers Association descended on the nation’s capital in September to lobby Congress for its annual National Policy Conference. “We really want to inluence public policy,” said Shaun Petersen, NIADA’s senior vice president of legal & government afairs. “We had the most (attendees) ever.” In addition to lobbying at the oices of 110 lawmakers in the House and Senate, the attendees heard presentations from representatives of the federal government. “For the irst time ever, we had people from the White House,” Petersen said. “Deputy White House Chief of Staf Rick Dearborn was there. “He talked about tax reform, healthcare and infrastructure. He just talked about what the president

has on his plate.” Petersen said NIADA had a few goals going in, such as regulation, tax reform and recalls. “The day we were on the Hill was when the White House released its bullet points for tax reform,” Petersen said.“So before they put pen to paper in terms of actual legislation, the dealers were able to (provide their input).” NIADA left behind a talking-points handout, discuss-

Photo Courtesy of NIADA ON THE HILL: NIADA members lobby Congress during the National Policy Conference in Washington D.C. last month. Above, Virginia Rep. Scott Taylor speaks with Virginia IADA members. Below, Rep. Roger Williams (R-Texas), left, greets fellow Texan, Rep. Jodey Arrington, at a NIADA reception honoring Williams.

ing its positions related to tax reform, recalls, arbitration and the CFPB. Petersen said one aspect of tax reform that is important to NIADA’s members is maintaining the ability to deduct net interest expenses. Eliminating that deduction would hinder a dealership’s

ability to secure inventory, increase borrowing costs and reduce cash low. “Our business is heavily reliant on that (deduction),” he said. The Alabama IADA, led by its executive director Randy Jones, lobbied heavily on that tax issue. The state IADA brought 10 members on the trip, the second year in a row they’ve brought that many people, Jones said. The group met with several lawmakers.

One of those was Rep. Terri Sewell (D-Ala.). “She spent a long time talking with us,” Jones said. “She was very sincere. We work together very well.” Jones said discussing the vehicle recall concerns face to face with another congressman’s stafer helped the person understand how a stop-sell order on recalls could hurt both dealers and private sellers. “Then he understood (our opposition),” Jones said. In a lesson about how democracy works, the group met with Sen. Luther Strange the day after he lost his party’s primary. Lisette Mariner, Florida IADA’s executive director, said one of her members also highlighted the extreme nature of some recalls to a stafer. A few years ago, a recall on cars arose over spiders that spin webs in the car afecting the fuel vent lines. “They have to blow it out with some air or something,” Mariner said. All of the lawmakers asked for talking points from the state group, she said. “NIADA did a great job of preparing everyone,” Mariner said Jones said after ive years of meeting with lawmakers, his state IADA has been able to build relationships on behalf of dealers.

NEXT ISSUE: TAX PREVIEW

“We got some great advice a long time ago from one of the irst legislators we visited,” Jones said. “The legislator said, ‘Don’t wait to come to Washington until your pants are on ire. Come build a relationship prior to that.’” Jef Martin, Texas IADA executive director, urged dealers who have never attended this event to pencil in next year’s conference. He said the efort put in over time helps the industry. “Every dealer in the country owes a debt a gratitude to the dealers and industry leaders who attend this event,” he said. “This is my ifth year to take a group of dealers from Texas and there is no doubt our eforts are starting to pay of. “The Congressmen we visited know who we are and they know our issues, I couldn’t say that four years ago. This is truly your membership dues dollars at work.” During the event, NIADA presented its irst-ever Legislator of the Year award to Rep. Roger Williams (RTexas). The Texas Republican is a car dealer himself, having owned and operated a dealership in Weatherford, Texas, for more than 40 years – and his father, Jack, owned it before that. As a member of the House Financial Services Commit-

tee, Williams has led the charge for tax reform as well as reforming the Consumer Financial Protection Bureau and repealing the CFPB’s recently enacted rule prohibiting arbitration agreements with class-action waivers. He is also a member of the Congressional Auto Caucus and has fought to protect the interests of the used vehicle industry and small business since winning election to Congress in 2012. In addition to the award, Rep. Williams was presented with a contribution of $4,995 from the NIADA PAC fund. NIADA members also had lunch in the Senate Rules and Administration Committee meeting room and heard from Sen. Richard Shelby (R-Ala.), who urged members to come to Washington so they can be the ones to inluence issues like tax policy. NIADA raised more than $95,000 for its political action committee by the end of the conference. In addition to the donation to Williams, NIADA-PAC also made contributions to other lawmakers, including Rep. Jodey Arrington (R-Texas), Rep. Robert Pittenger (R-N.C.), Rep. Scott Tipton (R-Colo.) and Rep. Tom MacArthur (R-N.J.).


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10 · October 16, 2017

USED CAR NEWS

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State Sues J.D. Byrider The Massachusetts Attorney General has sued JD Byrider for allegedly using predatory practices in its sale of defective vehicles with high cost loans at four locations in the state. The attorney general alleges that JD Byrider took advantage of consumers by routinely trapping them in an unsustainable and unfavorable sales package, known as the “JD Byrider Program.” This program generally involves selling drivers a poor quality car with a high cost loan, along with an expensive extended service contract, marketed through an aggressive and misleading advertising and sales campaign. “We allege that JD Byrider ripped off Massachusetts drivers by offering predatory loans for defective and inoperable cars,” Healey said. “Our goal in this lawsuit is to recover losses to Massachusetts consumers and make this company pay for the harm they caused to thousands of drivers across this state.” According to the complaint, consumers were unaware that JD Byrider priced its cars at more than double their retail value, and required drivers to sign on to car financing with an annual percentage rate of 20 percent, regardless of their credit qualifications. The suit claims JD Byrider bun-

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dles its extended service contract into the financing as well. The attorney general alleges that the cars sold by JD Byrider are defective and sometimes inoperable. The complaint further alleges that JD Byrider employs a faulty underwriting process that underestimates the consumer’s expenses and costs in order to qualify them for financing they can’t afford. As a result of these practices, the complaint alleges, more than half of JD Byrider’s deals fail or end in repossession, causing substantial and long-term economic harm to consumers not just due to the inflated costs, but due to losing transportation and suffering long term damage to their credit as well. J.D. Byrider released a statement on the suit: “We are aware of the lawsuit filed by the Massachusetts attorney general and will be looking into the facts of this matter carefully. J.D. Byrider’s focus is to help people get on the road with a better car and the financing they need. We are committed to working with regulators to solve concerns and improve our business. As a company in business for more than 25 years, serving many customers across the nation, we work hard to set J.D. Byrider apart as an industry leader and will continue to do so.”

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10/9/17 5:55 PM


Ron Wilkes » Ron’s Used Cars of Sumter » Sumter, SC

MOBILE AUCTIONS ARE HOW I BUY CARS FRESH OFF A DEALER’S LOT

Ron Wilkes goes to 6 or 7 mobile auctions a month and buys up to 15 cars each time. He finds fresh, retail-ready inventory direct from motivated dealers, with the trust of Manheim managing the transaction. Find out how to grow your business with mobile auctions at MyManheim.com.

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


12 • October 16, 2017

USED CAR NEWS

Automakers Recall Vehicles for Botched Repairs By Ted Craig

As if the rising number of recalls hasn’t posed enough of a challenge for the auto industry, here comes a new twist – recalls of recall repairs. Honda and Chrysler have both issued such recalls recently. The largest is Chrysler’s, which covers 646,394 201114 Dodge Durango and Jeep Grand Cherokee vehicles. The afected vehicles had brake booster shields installed under a previous campaign to prevent water from entering the brake booster and limiting braking ability. This recall is to verify that the brake booster shield installation was performed properly. Chrysler will notify owners, and dealers will inspect the brake booster shield, correcting the installation as necessary, free of charge. The recall is expected to begin Nov. 7. Honda 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. These latest developments come at a time of renewed scrutiny of used-car dealers selling cars with recalls. The group Consumers for Auto Reliability and Safety recently released a study that claims “a survey of nearly 1,700 vehicles for sale at eight CarMax locations – four in Massachusetts, two in California, and two in Connecticut – more than one in four vehicles (27 percent) were found to contain unrepaired safety recalls.” CARS wants the federal court to overturn the recent Federal Trade Commission’s consent orders with CarMax. The group also wants states’ attorneys general to investigate CarMax and other dealers. CarMax responded by once again re-stating its commitment to recall transparency. The company’s statement

BACK TO THE SHOP: Chrysler is recalling more than a half million SUVs because there’s a possibility an earlier recall led to misinstalled brake booster shields.

reads: “We recommend that our customers register their vehicle with the manufacturer and urge them to have open recalls ixed immediately following purchase. Our vehicles meet or exceed state safety inspection requirements in the more than 20 states that mandate vehicles pass safety standards.”

George Hofer, a professor of economics at the University of Richmond, said groups like CARS target CarMax as a way to go after the entire used-car industry. Hofer said the industry is segmented and CarMax has one of the highest proiles. “If NHTSA or any agency made open recall vehicles

non-saleable, this would freeze the liquidity of most American’s most valuable and most liquid tangible asset,” Hofer said. “It would severely harm virtually all U.S. motorists – especially the middle class.” He said the courts and regulators have recognized this and have not imposed extreme measures.


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Manheim Fredericksburg Manheim Pennsylvania November 16 November 10, 21 540-368-3400 800-777-2053

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Contact auctions directly for current sale information.

*The tradename “Subaru Motors Finance” and the Subaru logo are owned / licensed by Subaru of America, Inc. and are licensed to JPMorgan Chase Bank, N.A. (“Chase”). Retail/ Loan and lease accounts are owned by Chase. *The Jaguar word mark, the Jaguar logo, and Jaguar Financial Group are trademarks of Jaguar Land Rover Limited and any use by Chase is under license. The Land Rover word mark, the Land Rover and Oval logo, and Land Rover Financial Group are trademarks of Jaguar Land Rover Limited and any use by Chase is under license. Retail / Loan and lease accounts are owned by Chase. The tradename "Mazda Capital Services" as well as the Mazda and Mazda Capital Services logos are owned by Mazda Motor Corporation or its affiliates and are licensed to Chase. Retail / Loan and lease accounts are owned by Chase. ©2017 JPMorgan Chase Bank, N.A. Member FDIC (17-011) 11/17


14 • October 16, 2017

USED CAR NEWS

Tech Distracts Drivers

DON’T TAKE A CHANCE

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New vehicle infotainment systems take drivers’ eyes and attention of the road and hands of the wheel for potentially dangerous periods of time, according to new research from the AAA Foundation for Traic Safety. Drivers using in-vehicle technologies like voice-based and touch screen features were visually and mentally distracted for more than 40 seconds when completing tasks like programming navigation or sending a text message. Removing eyes from the road for just two seconds doubles the risk for a crash, according to previous research. With one in three U.S. adults using infotainment systems while driving, AAA cautions that using these technologies while behind the wheel can have dangerous consequences. AAA has conducted this new research to help automakers and system designers improve the functionality of new infotainment systems and the demand they place on drivers. “Some in-vehicle technology can create unsafe situations for drivers on the road by increasing the time they spend with their eyes and attention of the road and hands of the wheel,” said David Yang, executive director of the AAA Foundation for Traic Safety. “When an in-vehicle technology is For Cars, Trucks and Vans

not properly designed, simple tasks for drivers can become complicated and require more efort from drivers to complete.” The AAA Foundation for Traic Safety commissioned researchers from the University of Utah to examine the visual (eyes of road) and cognitive (mental) demand as well as the time it took drivers to complete a task using the infotainment systems in 30 new 2017 vehicles. Study participants were required to use voice command, touch screen and other interactive technologies to make a call, send a text message, tune the radio or program navigation, all while driving down the road. Programming navigation was the most distracting task, taking an average of 40 seconds for drivers to complete. When driving at 25 mph, a driver can travel the length of four football ields during the time it could take to enter a destination in navigation – all while distracted from the important task of driving. Programming navigation while driving was available in 12 of the 30 vehicle systems tested. None of the 30 vehicle infotainment systems produced low demand, while 23 systems generated high or very high levels of demand on drivers.

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16 • October 16, 2017

USED CAR NEWS

PEOPLE IN THE NEWS Cars.com Taps Industry Veteran Cars.com has appointed Darren Haygood as the company’s senior vice president of commercial strategy.

Darren Haygood Haygood most recently served as president and chief operating oicer at Transparency AI. Previously, he was executive vice president at Dealer.com. Prior to his roles at Transparency AI and Dealer.com, Haygood was the general manag-

er at the Lokey Nissan dealership in Clearwater, Fla., from 2004-07. He was also the director of e-commerce at Asbury Automotive Group from 2001-04, and served as regional marketing director at the Chrysler Corp. from 1997-2001.

Throughout his ca- brands, reer he has spear- Manheim, headed results-driven initiatives at numerous organizations such as CareerBuilder, Yahoo and DialogTech. Most recently, he served as the vice president of sales for Internet Brands.

GWC Warranty Names Revenue Oficer

Cox Automotive Announces Moves

GWC Warranty has appointed Brian Stach as the company’s new chief revenue oicer. In his role, Stach will oversee all of GWC Warranty’s ield sales operations, including a nationwide team of area vice presidents, dealer consultants and trainers. Stach, a graduate of St. Mary’s University of Minnesota, joins GWC Warranty following more than 15 years of successful sales management experience.

Cox Automotive has named Janet Barnard as chief people oicer following the retirement of longtime human resources leader Rock Anderson. During the past three years, Barnard served as president of the company’s Inventory Solutions group. Grace Huang will succeed Barnard as president of Cox Automotive Inventory Solutions. In her new role, Huang will lead six

including Ready

Grace Huang roles in corporate development at Cox EnJanet Barnard terprises and corporate Logistics and RMS Au- strategy for Cox Media Group. tomotive. Barnard and Huang Previously, Huang started Oct. 2. served as senior vice president, Manheim Inventory Services. Santander Names Auto In addition to her Finance President recent role, for more Santander Consumer than 10 years, Huang USA Holdings Inc. anmanaged strategic ini- nounced several key tiatives across the Cox management changes, family of companies. including a new execuShe served as vice tive for its auto inance president of enterprise operations. product planning for Rich Morrin will Cox Automotive and take on a new role as held senior director president of Chrysler

Capital and Auto Relationships, reporting to Scott Powell. Morrin will be responsible for Chrysler Capital, SC’s sales and marketing activities, dealer and customer relationships, dealer oversight and RoadLoans.com. He will also be jointly accountable for Dealer Commercial Services, (DCS), which is part of Santander Bank N.A. Morrin will be responsible for building Santander Consumer’s integrated product offering for dealers and strengthening relationships with them. Santander Consumer also announced that Juan Carlos Alvarez, corporate treasurer of Santander Holdings USA Inc. is succeeding Ismail (Izzy) Dawood as chief inancial oicer of Santander Consumer, efective immediately.

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18 • October 16, 2017

USED CAR NEWS

RETAIL MARKETS NEW MEXICO Felicia Richesin, co-owner, A Quality Auto Sales, Albuquerque, N.M.: “We’ve been in business since 2009. We have one location. “We keep about 60 to 80 (units) on the lot. That’s typical of this time of year. “We get our vehicles from auctions, from dealers and from trades. “In recent months, I want to say we’ve sold 20 to 30 a month. “We do straight retail. We don’t do subprime or buyhere, pay-here. “The retail price varies depending on the vehicle. We have vehicles that go from $7,000 all the way up to $50,000 and change. “Again, model years vary, too. I would say it’s about a 2008 or 2007, but we’ll have 2013s. “For mileage, we look for anything under 150,000. “We carry more trucks than cars. It’s very expensive to get the trucks. You have to be smart and you have

to know what you’re doing. You also have to have good relationships. It’s so much stuf. “The market changes. So we’re starting to think about selling more mid-sized SUVs. “(Inventory) is more domestic. “Reconditioning costs just depends on the vehicle. It’s a million dollar question. I want to say about $1,500. We do both (in-house and farming out). “We do a lot of diferent advertising for the dealership. We advertise with Dealer Car Search, Cars.com, Facebook, and Craigslist – all kinds of diferent stuf. “We recently sold a 2008 Dodge pickup. I think that one had about 120,000 to 130,000 miles.”

“We carry about 135 units in inventory. (That’s typical) of this time of the year. “I sell about 35 cars per month, on average. That’s typical. “We get our vehicles from various auctions. There are also a couple of new-car dealers I get them from. It’s gotten a lot tougher to ind them than it used to be, that’s for sure. “I do some buy-here, payhere. But we mostly do straight retail and some subprime. So the buy-here, payhere is pretty small, maybe 5 percent. The subprime is, maybe, 20 percent. The rest is straight retail (cash deal). “That mix hasn’t changed from this time last year. It’s about the same. “We handle a lot of trucks and SUVs on this lot. That brings up the average retail price. SOUTH DAKOTA “I would say we’re someDirk Byers, owner, B&B where in that $12,000 range. Motors, Brookings, S.D.: “Average miles is a little “We’ve been in business higher (than other places) for 30 years. We have one lo- because of the trucks. cation. “We probably average in

Compiled by Jeffrey Bellant the 80,000- to 90,000-mile range. “I carry about 25 percent cars. Then the trucks and SUVs make up the rest of the 75 percent. “Most all of the trucks and SUVs are four-wheel drive or all-wheel drive. “The majority of the vehicles are domestic, (because of the trucks). “I looked the other day. Our average reconditioning costs are about $500 per vehicle. We do that work (inhouse). We do it all. We have our own shop. “We also do customer-pay/ outside work. That’s been a little of from last year in the service part of the business. That’s kind of surprising to me. It is a little less than it was this time last year. “We do all of our marketing and advertising online. We use AutoTrader.com, Cars.com, Cargurus.com, etc. “Cargurus.com is probably the best site for us. They’ve gotten pretty strong. They have a good SEO (search en-

gine optimization) so we get a good response. “Our buyers come from within a 100-mile radius of our store. “But we also sell some classics, so we’ll get buyers for those from all over the United States. We try to keep 20 to 30 of them on the lot, like a 1956 Ford. “I sell more gas trucks than diesels. I still sell some diesels, just not as many. “We used to sell a lot of diesels, but not anymore. A lot of farmers now have semis to haul stuf. So they’re not pulling as much with their trucks. “We recently sold a 2012 Ford F-350. It had 127,000 miles on it. We got $16,000. “It’s been a good year for us. The numbers are up a little bit. The grosses are getting a little tougher every year, though. You just have to keep adapting. “September was a little slow for us. But I’m thinking we’re going to pick up and we’re going to have a good last quarter.”

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USED CAR NEWS

October 16, 2017 • 19

WHOLESALE MARKETS COLORADO Matt Read, general manager, Loveland Auto Auction, Johnstown, Colo.: “We’ve been in business 30 years. We have four lanes and we are running four. “Volumes have been really good so far. I would say a little above average. We run about 450 cars a week on average. “The Front Range of Colorado is just growing like crazy. I think that has a lot to do with it. It seems like everybody is moving to Colorado. “Sales percentages, on average, have been about 65 percent. That’s close to the same as last year. “We’re getting 250 to 300 dealers in the lanes. “We are mostly dealer consignment. I would say it’s 90 percent dealer consignment. “Non-dealer consignment is mostly repos, not too many leet accounts. Repos have been about the same this year for us. We have some smaller credit unions

and banks. “We run cars online, but it’s not very big. Last month we may have sold 25 cars. We use Automated Auto Auction online. “Our average price is around $5,000 to $5,500. It may be up a little bit, but not a lot. “It’s tough to sell the cheap cars now. That stuf just doesn’t sell anymore – some of that stuf the newcar dealers trade for. They put $500 or $1,000 in it. “I think it’s going to be a good year for us (through the rest of the year). We don’t see that dip in sales in November and December like we used. “We celebrated our 30th anniversary sale (this summer) and it was fun. It went really well.”

MISSOURI Kevin Brown, general manager/owner, Missouri Auto Auction, Columbia, Mo.: “We’ve been in business 17 years. We run ive lanes.

“Our volumes have been pretty lat compared to last year. We run between 450 and 550 per week. So that’s pretty consistent with this time last year. It’s not bad. “We typically run between 60 and 65 percent (conversion rates). “We draw in probably a little more than 300 dealers in the lanes. We average about 315. “On a weekly basis, we’ll see another 55 to 85 dealers online. “We run on the Auction Edge system. “Although we’re selling about 85 percent of our vehicles in-lane, we do really well on simulcast. We also have a Chrysler sale (Santander/Chrysler Capital) that does well online. But even our dealer stuf does really well online. “The only thing we’ve added this year is we do a sale for Chrysler Capital and Santander once a month. It’s usually the second Friday. We’ll run anywhere from 75 to 220 cars.

“It’s also helped us gain some volume on some consignment that we wouldn’t have normally had. Some other dealers notice, come in to buy and decide that they want to try and sell, too. “Lately, dealer business has been of, particularly in (September). We’re in a college town, so what hurts us – and this may sound miniscule for someone else – is when you have four home football games in a row on Saturday. It afects us. “We’re not in a metropolitan area, so our business will be afected diferently than a sale in a metro area. “Our philosophy is to be consistent. We don’t run big promo-heavy sales here. Like I said, we’ll run between 450 and 550 every week and try to be as consistent as we possible can. “Our dealers are always positive. If they’re in a bad mood when they come in the door, then we’re going to put them in a good mood. “We’re a Friday sale. So

Compiled by Jeffrey Bellant dealers can go to multiple sales all week long, so by the time they get to our sale, they’re tired. “They don’t have to come to my sale. “They make a choice to come to my sale. We want to make sure they make it a habit. “We want this to be their home auction. “We have 75 percent dealer consignment and 25 percent leet and equipment. “Our average price is $6,500, but if you add in Chrysler, it would skew the numbers. “Our average price for Chrysler is $21,000. “We run 15 to 30 in an inop sale each week on a video screen. “We do a GSA sale, but that volume for us has been of. I think this year we’ll sell a couple of hundred. “On the last Friday of the month, we’ll sell for municipalities and some utility companies. That’s a public sale, but 90 percent of it is still bought by dealers.”


ACTUAL WHOLESALE AND PROJECTED RESIDUAL VALUES OCTOBER 2017

SOURCE: BLACK BOOK

2012 MODELS

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

Oct ‘16 11,100 14,800 5,900 6,650 6,850 10,500 5,600 10,000 10,200 13,100

Apr ‘17 9,450 12,500 5,250 5,900 5,600 9,400 4,850 8,700 8,600 11,200

Feb ‘17 8,950 11,200 4,600 5,250 5,000 8,950 4,500 8,500 8,100 9,500

Oct ‘17 7,800 9,375 3,775 4,325 3,975 7,500 3,650 7,000 6,750 8,450

Oct ‘19 6,825 7,925 3,225 3,800 3,250 6,525 3,050 5,900 5,750 7,550

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

Oct ‘16 16,150 29,400 8,550 13,950 9,150 14,100 8,750 13,000 13,900 18,100

Apr ‘17 14,250 25,250 7,600 12,250 8,200 13,450 7,550 12,550 12,700 16,100

Feb ‘17 14,150 23,600 6,850 11,850 7,550 13,000 6,950 11,750 11,950 15,350

Oct ‘17 11,925 19,575 5,475 9,475 6,050 10,375 5,525 9,675 9,825 12,925

Oct ‘19 10,175 16,425 4,550 7,925 4,950 8,775 4,500 8,100 8,200 11,200

IMPORT 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

Oct ‘16 14,550 14,150 26,000 8,750 7,400 16,100 17,800 5,000 7,050 7,450 5,350 9,250 7,000 8,475

Apr ‘17 11,550 11,200 20,250 7,900 6,600 13,500 14,800 4,150 6,150 6,550 4,600 7,900 6,600 7,575

Feb ‘17 11,000 11,500 18,000 7,350 5,900 13,050 13,600 4,000 5,000 5,400 4,350 7,350 6,150 7,125

Oct ‘17 8,650 8,950 13,575 6,225 5,050 10,600 10,650 3,250 4,325 4,675 3,800 6,350 5,300 5,775

Oct ‘19 7,025 7,300 10,575 5,350 4,475 8,750 8,575 2,750 3,775 4,100 3,350 5,625 4,625 4,900

IMPORT 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

Oct ‘16 19,600 18,900 43,500 13,000 10,450 22,600 25,400 7,450 9,800 11,200 8,450 11,550 10,850 13,400

Apr ‘17 16,250 16,000 36,000 11,900 9,850 20,400 23,200 6,100 9,500 10,850 8,050 11,050 10,200 12,200

Feb ‘17 15,100 16,500 31,250 10,900 9,050 19,000 22,300 5,900 9,000 10,550 7,800 10,350 9,550 10,050

Oct ‘17 12,025 12,575 23,600 9,200 7,400 15,500 17,625 4,675 7,425 8,725 6,325 8,750 7,950 8,775

Oct ‘19 9,800 10,150 18,375 7,900 6,350 12,700 14,025 3,850 6,250 7,350 5,375 7,525 6,775 7,450

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

Oct ‘16 16,100 28,600 17,700 9,400 17,600 20,600 8,700 12,300 10,500 16,600 15,500 14,000 11,850 11,850 20,400 16,600 24,900 9,250 16,000 16,800 22,250 20,325

Apr ‘17 13,550 25,800 14,400 7,650 16,400 16,500 7,200 10,700 8,750 14,600 13,600 11,100 11,250 10,150 16,950 14,850 23,200 7,750 12,950 14,500 21,800 18,525

Feb ‘17 12,000 24,400 13,800 7,200 16,000 16,700 6,700 10,200 7,650 13,500 12,100 10,000 10,600 9,600 15,800 13,800 22,950 7,000 12,300 14,000 20,900 18,175

Oct ‘17 10,625 20,125 11,575 5,800 14,100 13,975 5,100 8,850 6,350 12,150 10,800 9,225 9,350 8,050 13,925 11,675 21,250 5,850 10,675 13,125 18,250 16,725

Oct ‘19 9,450 17,025 9,925 4,875 12,725 12,150 4,225 7,800 5,475 10,775 9,950 8,275 8,375 7,025 12,350 10,150 20,050 5,050 9,425 12,125 15,925 15,550

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

Oct ‘16 23,150 38,450 24,350 12,650 26,900 28,500 13,100 18,950 14,350 24,300 20,900 20,000 14,950 17,800 27,600 20,400 28,450 12,550 21,275 22,500 26,050 22,800

Apr ‘17 23,950 34,700 21,700 10,800 26,500 27,000 11,500 16,800 12,700 22,200 20,000 18,200 14,050 15,550 25,300 18,550 27,550 11,600 19,175 21,000 26,400 22,950

Feb ‘17 20,200 31,900 19,950 10,650 26,000 25,500 11,000 15,800 12,800 21,200 19,000 18,500 13,100 15,000 23,150 18,350 27,200 10,450 17,975 21,000 25,850 21,350

Oct ‘17 16,875 26,450 16,725 8,325 22,775 21,450 8,275 12,925 10,025 17,625 16,350 15,425 11,425 12,275 19,875 15,375 24,825 8,550 15,000 18,100 22,400 19,725

Oct ‘19 14,125 22,550 14,375 7,075 20,550 18,350 6,675 11,050 8,375 15,050 14,425 13,350 10,300 10,425 17,375 13,150 23,250 7,275 12,900 16,500 19,675 18,375

#s

2013 MODELS

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

Oct ‘16 14,350 17,800 7,550 8,150 8,050 13,350 7,450 11,500 12,250 15,600

Apr ‘17 12,500 15,700 6,550 7,400 7,150 12,300 6,150 10,650 11,000 13,900

Feb ‘17 10,550 14,300 5,500 6,400 6,400 11,300 5,400 10,000 10,100 12,250

Oct ‘17 9,175 11,825 4,500 5,325 5,100 9,250 4,375 8,250 8,250 10,575

Oct ‘19 7,975 9,825 3,825 4,575 4,150 7,950 3,650 6,950 6,925 9,350

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

Oct ‘16 17,250 29,300 10,400 15,400 15,150 21,600 10,500 16,500 15,800 20,600

Apr ‘17 15,650 23,700 8,950 13,200 14,350 19,500 9,000 15,700 14,500 19,400

Feb ‘17 15,500 21,350 8,050 13,000 13,550 18,650 8,500 14,000 13,650 18,500

Oct ‘17 13,350 18,500 6,550 10,550 10,975 15,100 6,675 11,675 11,225 15,425

Oct ‘19 11,500 15,775 5,550 8,950 9,075 12,875 5,400 10,100 9,400 13,250

IMPORT 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

Oct ‘16 16,650 16,650 34,000 11,500 9,100 20,250 20,200 6,300 8,750 10,200 7,450 10,300 8,800 11,300

Apr ‘17 12,950 14,000 28,000 10,450 8,300 18,050 18,200 5,350 8,300 9,450 6,950 9,300 7,700 9,900

Feb ‘17 12,300 13,000 24,000 9,650 7,550 16,650 16,900 4,950 7,400 8,350 5,950 8,500 7,050 8,000

Oct ‘17 9,775 10,375 18,250 8,050 6,300 13,600 13,375 3,950 6,275 7,100 5,050 7,325 6,000 7,000

Oct ‘19 7,975 8,475 14,175 6,900 5,450 11,150 10,650 3,275 5,300 6,050 4,400 6,425 5,250 5,975

IMPORT 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

Oct ‘16 22,500 21,300 55,000 15,150 11,800 26,200 31,100 9,150 11,350 13,150 9,900 13,650 11,650 14,750

Apr ‘17 19,550 19,250 46,500 13,950 11,150 24,700 28,900 8,350 11,100 13,450 9,250 12,400 10,950 13,700

Feb ‘17 17,700 18,500 37,750 12,550 10,650 23,300 27,500 7,400 10,350 12,750 8,750 12,000 10,450 12,250

Oct ‘17 14,550 14,550 30,000 10,650 8,800 18,750 21,950 5,825 8,600 10,525 7,100 10,100 8,775 9,850

Oct ‘19 12,125 11,875 23,525 9,175 7,575 15,150 17,600 4,750 7,250 8,825 5,975 8,825 7,500 8,325

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

Oct ‘16 21,050 34,600 22,200 11,400 20,300 26,000 11,300 17,050 14,750 21,700 19,200 18,500 13,500 13,950 23,900 19,150 27,000 11,200 18,900 20,000 24,700 22,150

Apr ‘17 16,850 30,000 19,050 9,800 19,000 23,700 9,500 14,350 12,450 18,000 17,500 16,200 12,450 11,650 21,700 17,600 25,450 10,350 16,850 17,800 25,100 21,650

Feb ‘17 14,600 28,300 16,950 9,300 18,000 21,000 8,600 13,350 11,000 16,200 15,900 13,800 11,650 11,600 19,700 16,300 24,700 9,000 15,600 17,300 24,250 20,700

Oct ‘17 12,550 23,275 14,050 7,375 16,025 18,125 6,500 11,225 8,850 13,975 13,750 12,125 10,400 9,825 17,075 13,675 22,975 7,425 13,175 15,575 20,725 18,875

Oct ‘19 10,975 19,625 11,900 6,175 14,400 15,475 5,350 9,750 7,525 12,250 12,225 10,625 9,325 8,475 14,950 11,725 21,850 6,325 11,375 14,250 17,925 17,450

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

Oct ‘16 27,450 54,650 31,100 14,500 29,500 34,800 15,500 21,950 16,350 25,800 24,000 21,600 17,400 21,400 29,700 22,550 29,800 14,100 28,000 24,500 29,200 23,900

Apr ‘17 25,050 50,500 25,150 12,050 28,600 33,200 13,000 19,250 15,100 25,400 21,800 18,800 15,450 17,950 28,000 22,200 29,200 12,850 25,250 22,700 28,350 23,950

Feb ‘17 23,950 46,100 23,450 11,950 27,500 33,000 12,500 20,000 14,450 23,700 22,500 20,700 15,050 16,700 25,800 21,550 28,850 11,900 24,800 23,500 27,800 22,500

Oct ‘17 20,150 38,675 19,700 9,500 24,575 28,250 9,750 16,075 11,425 19,350 19,800 17,700 13,100 14,075 22,375 18,200 26,100 9,850 20,425 20,225 24,475 20,725

Oct ‘19 16,950 32,850 16,975 8,150 22,375 24,450 8,150 13,750 9,675 16,600 17,775 15,500 11,825 11,975 19,700 15,800 24,425 8,500 17,375 18,425 21,850 19,100


USED CAR NEWS

October 16, 2017 • 21

DISCONNECTED JOTTINGS FROM The auto auction business has remained remarkably relevant all the way from its outset back in the late ‘40s and ‘50s. There are quite a

TONY MOORBY

competitive levels. I’m not just talking about sales fees. Transportation pricing is still squeezed to bloodfrom-turnip levels, recondi-

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

few that soon will be celebrating 70th anniversaries. From relatively simple beginnings they have become powerhouses of inluence and industry intelligence. Rather than wilting in the shadow of developing technologies, auctions have been on the leading edges of every facet of transaction technology. The real dexterity of the national network has been exhibited in keeping its pricing to excruciatingly

tioning, as a percentage of sales price, has actually gone backwards by considerable sums and with state and federal mandates to increase labor rates, this can’t maintain for long. Improvements in on-site services, including condition reports (which actually have to relect the real condition), photography, Internet posting and accurate record keeping and accounting have all moved with the times, if not led the charge.

The CFPB has loaded the back end by extending a myriad of new reporting and documentation requirements as a result of client relationships that have existed quite successfully without their oversight for many years. The auction value proposition has grown enormously over the years, especially to the commercial consignor. Dealers have paid incremental increases in fees but, in fairness, they have received more and more protections, conveniences and guaranties to go with the deals. Vehicle descriptions and histories, alone are worth the extra vig. I’ve said a ton of times that you’re safer buying a car from a National Auto Auction Association member than from your own, churchgoing grandmother! No other institution in America can shift volume to so many geographically diverse places in a short space of time and thus protect prices, than any other mech-

C R O S S WO R D 35. Mathematical symbol 36. Toyota model 39. What a repair shop ixes 43. Life preix 45. Well-liked 46. Riviera or Skyhawk maker 47. Once round Indy 48. “Whoopee!” Down 1. XKE maker 2. Car sales stat word 3. Naught 4. Hello! 6. Popular Honda 7. Car company headquartered in Seoul 8. Website address 9. Jetta relative 10. Tax reporting month

as a sale or no-sale is a physical and technological feat by whiz-bang magicians with an organizational kit bag to astound any onlooker. Ensuring workforce safety, a direction the industry has seriously undertaken in recent years, doesn’t come free. Common sense? Most of it – but specialists can improve any facet of building and product safety for the beneit of all. Lot security, in this age of theft to fund various nefarious habits, has increased the necessity for expensive vigilance and grows to meet the clever thieves who think of new and improved ways to steal and rip of. Reconditioning, the single best way to improve a vehicle’s immediate value, has improved in all kinds of ways from products to line techniques, performance evaluations and so on. A successful auction-remarketing partner is a longterm asset to every industry user. Let’s ensure that future.

Digital version available at usedcarnews.com

By Myles Mellor

Across 1. Dodge model 5. Useful camera 11. Retirement fund 12. Maserati sports car 14. Cars on sale 15. Operating 16. Classic Brit. car make 18. Level 19. Numbers guy 21. Polishing 23. Exhibit material 24. Relate 27. It was used as a model for the motor in Saab cars, 2 words 29. NASCAR car 30. Electrical power measurement 32. Acura SUV 33. Classic Ford convertible

anism out there, including Internet sale and placement. Is it possible for an individual vehicle to ind a better home for more money at any given time? Of course. Make the investment of research, buying a place on a speciic site, arrange transport, blah, blah, blah. Today, it’s possible to load your leet dispositions into predictive placement software and sit back while funds transfers conirm your intelligent decisions. You could probably program your leet to drive itself to the nearest auction at the end of its useful life! To achieve all these beneits at an auction requires an enormous investment in training and development of staf. Granted, new igures have found their way in to the business – CIOs, CTO’s, Chief Customer Smoocher and so on. But at the trench level, real betterment has taken place in pure everyday capabilities. Just to get a car from check-in back to exit, either

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22 • October 16, 2017

USED CAR NEWS

AROUND THE BLOCK

Compiled by Jeffrey Bellant

GUITARS, CARS AND RECORD VOLUMES Students Learn

GUITAR HERO: KCI Kansas City hosted its annual Guitars and Cars sale, featuring Missouri’s own Tyler Farr performing for the auction crowd.

Kansas City’s Guitars and Cars Sale delivered the auction’s highest volume sale in its history, with 2,113 selling out of a total consignment of 2,684 units, for an 80 percent conversion rate. “This year’s Guitars and Cars Sale was definitely one for the books,” said Doug Doll, KCI Kan-

sas City’s co-owner. “Not only did we have the highest volume sale in the auction’s history but we avoided a thunderstorm the evening of the concert.” The first day of the two-day sale offered customers six lanes of corporate consignment topping 1,400 vehicles, and several in-lane

prizes. Excitement filled the lanes as the sale began with a $1,000 pre-sale drawing and continued throughout the day as buyers vied to fill their inventory needs. Later that evening, the storm clouds passed, and customers and their guests were welcomed to the Guitars and Cars private party and concert. Once the music started, guests anxiously awaited to see one of Missouri’s own, Tyler Farr, perform live on the KCI stage. His exciting performance captivated the audience as he belted hit after hit on the KCI stage. The following morning customers flocked to the lanes for the Guitars and Cars Main Event Sale with 1,300 fleet-lease and dealer consigned vehicles. Post-sale prizes totaled $20,000. “Guitars and Cars has become the most anticipated, talked-about auction event in the Midwest,” said Doll.

How to Flip Autos Manheim California is gearing up for the third year of its “Flip this Car” project, which enables Valley High School students in Santa Ana, Calif., to recondition cars and auction them of. The auction developed the program with High School Inc., a nonproit organization that helps prepare students for the 21st century workforce through education and business partnerships. “When you can connect the best of what your organization has to ofer with a need in the community, that’s where magic happens,” said Tom Wemhof, general manager at Manheim California. “We’re thrilled to be continuing our partnership with High School Inc.” Since selling its irst car, the team has completed the “Flip This Car” project with four cars, earning a total of $14,000. Proceeds support the auto shop program.

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

MISSED A STORY? VISIT OUR ARCHIVES AT USEDCARNEWS.COM

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FRESH INVENTORY IS ROLLING IN! Fulfill your CPOV and pre-owned inventory needs with the off-lease vehicles your customers want. Visit ChryslerDirect.com to view available vehicles that your customers are shopping for now! Contact your Remarketing Dealer Relations managers for assistance. Call 866.557.6704 or email leaseendsales@chryslercapital.com for answers to all of your pre-owned inventory needs. It is will heartfelt sympathy that we offer our support to all those impacted by the recent hurricanes. The personal well-being of our employees, customers, dealers and their families is our top concern. In the weeks to come, we are confident that the areas hit hardest will recover and come back stronger. Until that time, we will be here to support and assist those impacted.

©2017 Chrysler Capital. Chrysler Capital is a registered trademark of FCA US LLC and licensed to Santander Consumer USA Inc. CC-AD_61216-2_100517 Chrysler, Dodge, Jeep, Ram, Mopar and SRT are registered trademarks of FCA US LLC. FIAT is a registered trademark of FCA Group Marketing S.p.A., used under license by FCA US LLC.

10/16/17