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UsedCarNews.com

February 5, 2018

Cox Experts Upbeat About Used Market

Photo by Jeffrey Bellant LOOKING GOOD: Cox Automotive Senior Economist Charlie Chesbrough details the ways the economy can help the used-car market, as well as some of the risks, such an uncertainity about the tax code. By Jeffrey Bellant

DETROIT – Oicials from Cox Automotive expressed great optimism for 2018 at a presentation at the North American International Auto Show last month. “All the parts of the U.S. economy seem to be moving in the right direction now,” Senior Economist Charlie Chesbrough said. “So we’re very optimistic on what 2018 is looking at.” Tax reform has also boosted consumers’ conidence while also adding extra money to their paychecks as tax withholdings change this month.

“There’s no bubble here,” Chesbrough said. Increased lending has boosted auto sales with $1.1 trillion in lending in 2017. There has also been a lower rate of auto defaults compared to other debt. “We know that car buyers are going to pay their bills,’ Chesbrough said. Employment conditions are good and the economy has had 87 consecutive months of job growth, Chesbrough said. But there are some risks. The Federal Reserve is anxious to

raise interest rates over the concern of inlation. Chesbrough said the question is whether the Federal Reserve can manage this without the economy tipping into a recession. “That’s certainly one of the risks,” he said. The other risk is that the longterm efect of tax reform is still hazy because taxpayers won’t see the full efect until next year. Another issue is any long-term government shutdown. Jonathan Smoke, Cox Chief Economist, said he doesn’t see any signal that consumers are backing of of

buying vehicles. “We do think that 2018 – no question – continues to create an environment where a consumer wants to buy,” Smoke said. He said new-car inventories are inally starting to come down after 17.1 million new sales in 2017 and as manufacturers plan to reduce production of cars that “are no longer in favor.” Smoke, however, said all these new-car sales shouldn’t obscure the importance of the used-car market. Continued on page 3

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USED CAR NEWS

February 5, 2018 • 3

Cox Automotive – from page 1 “Almost 70 percent of the vehicles sold in the country in a given year are typically used vehicles,” Smoke said. In 2017, there were 39 million used vehicle sales. Smoke pointed out that in terms of households, there are no households that just buy new-car vehicles. “Households actually buy both (new and used) over time,” he said. The people most likely to buy used fall into the lower household income category, while new-car buyers and those who lease typically fall

into the higher household income category, Smoke said. A household income that reaches $75,000 seems to be the threshold where a person most likely will buy new rather than used. Then, once the household income reaches $150,000, a buyer is three to ive times more likely to purchase

a luxury vehicle. “The group that is deinitively coming away with more income after (tax reform) is the group in the $150,000 to $500,000 range,” Smoke said. “So the luxury market is looking pretty strong.” Another trend involves crossovers. “In 2018, we estimate that a third of all the of-

lease vehicles will be crossovers,” Smoke said. “(This year) will be the irst time in history where the of-lease volumes of cars will be less than 50 percent.” Smoke sees a slight decrease in demand for new cars in 2018, with the slack picked up by the used-car market. Cox Automotive predicts 39.5 million used-car sales, a boost of 500,000 from 2017. New-car/leet sales are forecast to drop to 16.7 million this year, compared to 17.1 in 2017.

Corvette Museum Rebuilds Cars After Sink Hole BOWLING GREEN, Ky. (AP) – As a teenager some 30 years ago, Daniel Decker started the journey that led to him playing the primary role in restoring a 1962 Corvette that soon will have a place of prominence at

Bowling Green’s National Corvette Museum. ``I picked up a paint gun when I was 15 and painted my irst car,’’ recalled Decker, now the vehicle maintenance and preservation coordinator at the museum’s

AutoZone Maintenance and Preservation Area. In that role, Decker has spent the past year doing body, mechanical and painting work on the 1962 Tuxedo Black Corvette that was one of eight Corvettes

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damaged in the 2014 sinkhole collapse that buried the sports cars in a 30-footdeep hole. The 1962 car will be unveiled Feb. 12 – the fourth anniversary of the sinkhole collapse – and placed back

in its original display space in the museum’s Skydome. It’s the third of the damaged cars to be restored and the irst to be done by museum staf. “We tried to keep everything original,” Decker said.


4 • February 5, 2018

USED CAR NEWS

NEWS BRIEFS CPS Closes Securitization Consumer Portfolio Services Inc. closed its irst term securitization of 2018. The transaction is CPS’s 27th senior subordinate securitization since the beginning of 2011 and the 10th consecutive securitization to receive a triple “A” rating on the senior class of notes from at least two rating agencies. In the transaction, qualiied institutional buyers purchased $190 million of asset-backed notes secured by $193.6 million in automobile receivables originated by CPS. The weighted average coupon on is approximately 3.46 percent.

CFPB Issues Call for Evidence

ways to improve outcomes for both consumers and covered entities. The irst RFI issued by the bureau will seek public comment on Civil Investigative Demands (CIDs). Comments received in response to this RFI will help the bureau evaluate existing CID processes and procedures, and to determine whether any changes are warranted.

Kelley Names Best Resale

sales more than any other category. Of the more than 22,000 consumer complaints iled in 2017, some 3,750 concerned used-car sales. The next highest category, shopping online and in stores, had about 1,170 complaints. The Consumer Protection Section of the attorney general’s oice tracks complaints in several general categories for reporting purposes. In 2017, the top category overall was motor vehicles.

Kelley Blue Book announced the 2018 model-year brand and category winners of the annual Best IAA Introduces New Brand Resale Value Awards, recognizInsurance Auto Auctions Inc. ing vehicles for their projected launched its newest auction channel retained value through the ini- ofering a more targeted buying and tial ive-year ownership period. selling platform. IAA’s new location in Portage, This is the third Best Resale Wisc., will serve as the launching Value for Brand win for Toyota, point for the IAA Ignite brand. which previously won in 2014 and The new IAA Ignite Auction in 2017. This year marks Porsche’s Portage, previously ADESA Wissecond consecutive Best Re- consin, celebrated its grand opening sale Value for Luxury Brand win. Jan.25 and will operate largely like The Top 10 vehicle winners were an IAA Auction except for the spepredominantly trucks. ciic inventory it will ofer.

The Consumer Financial Protection Bureau is issuing a call for evidence to ensure the bureau is fulilling its proper and appropriate functions to best protect consumers. In coming weeks, the bureau will be publishing in the Federal Register a series of Requests for Information (RFIs) seeking comment on enforcement, supervision, rulemakCarite Completes Credit Facility ing, market monitoring, and educa- Used Vehicle Sales Top List of Complaints Crystal Financial LLC announced tion activities. These RFIs will prothe completion of a $45 million seResidents of Ohio complained to vide an opportunity for the public to submit feedback and suggest their attorney general about used car nior credit facility for Carite Hold-

ings LLC. Headquartered in Madison Heights, Mich., the company sells and leases previously owned vehicles through its network of owned and partnered Carite locations. Through Brite Financial Services, they provide access to lease inancing options for consumers with limited or poor credit history. Proceeds from this facility will be used to reinance existing debt and to fund lease portfolio growth.

CarMax Expands in Northeast CarMax Inc. the grand opening of its irst store in Maine. The South Portland location has the capacity to stock approximately 200 used vehicles. In celebration of the opening, CarMax and The CarMax Foundation awarded $7,500 to the Boys & Girls Clubs of Southern Maine’s South Portland Clubhouse.

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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

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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.

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USED CAR NEWS

February 5, 2018 • 5

Milestones KENNETH OSBORN Auction veteran Kenneth “Kenny” Osborn died Jan. 10 at his home in Granbury, Texas. He was 65. Osborn is a past president of the National Auto Auction Association. He was inducted into the NAAA Hall of Fame in 2013 and was also an NAAA Warren Young Sr. Fellow. Jim DesRochers, who worked with Osborn in the NAAA and competed with him in auction business, commented on his passing. “Sadly, our good friend Ken Osborn lost that ight and we are all saddened and will miss him deeply,” DesRochers said. Osborn started his automotive career in 1970 in a parts department working into used-car management. In 1980, Osborn became a partner in building a new venture of TriState Auto Auction with Richard Dupriest in Amarillo. The partners broke ground, wrote the software, and built the business from the ground up. At Tri-State, Osborn honed his talent for auctioneering. The partners expanded their auction business in New Mexico, acquiring the Albuquerque Auto Auction. They sold their stakes in both auctions to Anglo-American and Osborn became co-general manager of Albuquerque with Jerry Stiver. In New Mexico, Osborn went on to receive the New Mexico Independent Auto Dealers Association Horizon Award. When Anglo-American was bought by ADT Automotive, Osborn became general manager of Golden Gate Auto Auction in Fremont, Calif. He was named regional vice president of ADESA overseeing the Southwest region in 2001. In 2008, Osborn became the general manager of ADESA Dallas. Osborn had recently retired. At the 2012 CAR conference, Osborn was awarded the lifetime distinction of a NAAA Warren Young Sr. Fellow. In recognition of Osborn’s comFor Cars, Trucks and Vans

mitment to education, the National Auto Auction Association’s Warren Young Sr. Scholastic Foundation has created the Ken Osborn Auction Education Scholarship. Last December a ceremony was held in Dallas to present Osborn with a plaque commemorating the naming of the scholarship. The Osborn Scholarship is one of the nonproit foundation’s 12 merit scholarships totaling $52,000 awarded annually for study at a college or technical institution to eligible full-time employees of NAAA members or the corporate oice, their children or grandchildren.

GEORGE RAIFORD TROUTMAN Former National Independent Automobile Dealers Association President George Raiford Troutman died Jan. 13. He was 92. Troutman was the owner of Troutman Motors in Concord, N.C. He served as president of the NIADA in 1994-95. His daughter, Karen Barbee, served in the same position a decade later. Troutman was named National Quality Dealer in 1988. He also served as president of the Carolinas IADA. Troutman is survived by his wife of 65 years, Margene Weatherman Troutman, two sons and two daughters, R. Wayne Troutman, Keith D. Troutman (Donna), Karen T. Barbee (husband, Joey), and Blenda T. Snodderly (husband, Norman).

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USED CAR NEWS

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By Ted Craig It seems there is a new story every day about sexual harassment in the workplace. That kind of attention in the past, like the Clarence Thomas hearings in 1992, led to increased legal claims, said attorney Jack Schaedel of The Sacli Law Firm. Employees are now willing to speak up about comments or conduct that they may have been afraid to mention in the past. Dealers already face elevated scrutiny due to the reputation of their business, said attorney Matthew Simpson of Fisher & Phillips LLP. This makes avoiding any additional accusations even more important. “It’s not the type of situation where you want to walk up to the line and not cross it,” Simpson said. “You want to stay far away from that line.” In addition, some states have very speciic laws on the responsibility of business owners to prevent sexual harassment. Schaedel points to a California law that requires any business with more than 50 employees to provide training on this topic and other abusive practices. Creating a culture that prevents such abuses shows a dealership is professional and that it cares about

its employees and about compliance with the law. This creates a positive atmosphere, along with a defense if something does happen. Harassment can come from anybody in the store, including employees, vendors and even customers. The legal standard is fairly high, Simpson said. It requires a severe ofense or unwelcome action or conduct that’s clearly ofensive. So saying a woman looks good in a dress might not meet the legal requirement; saying it on a daily basis gets closer. Simpson said dealers need to take steps to prevent any claims of harassment. This means training staf on proper behavior and taking any claims seriously. Schaedel said dealers should provide a conidential way for employees to report claims of harassment. He said senior management must know where to forward the complaint, which might be to the dealer, the compliance oicer or somebody who handles human resources. These people need training in determining the legitimacy of a complaint, Schaedel said. All these steps come with a cost, Simpson said, but the cost of lawsuits and bad publicity are much higher.


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FORT MILL, S.C. – A pair of guntoting customers are getting credit for stopping a wrench-wielding attacker at a South Carolina car dealership. The Herald of Rock Hill reports that last month’s attack was thwarted by customers legally carrying handguns. Prosecutor Aaron Hayes says the customers stepped in after the man made death threats, damaged cars and cornered an employee. Alonzo Seegars of Charlotte faces

ive felony charges and was released on bond. Hayes says the two customers at the crowded dealership intervened and held him with their pistols until police arrived. The 29-year-old Seegars sufered a broken leg while sculing with York County deputies. Oicials say he was released from a Mecklenburg County medical facility after more than a week despite warrants for his arrest.

Feds Charge Staff in Ad Scam Three people have been arrested for their roles in an alleged advertising scam at a Northern California car dealership. According to the indictment, from at least 2010 to 2016, Amir Bakhtiari orchestrated an embezzlement scheme at Sonnen Motorcars, a dealer group that owned and operated three car dealerships in Marin County - Sonnen Volkswagen, Audi Marin, and Porsche Marin. From 2009 to 2016, Bakhtiari managed the Volkswagen and Audi dealerships. Bakhtiari allegedly used his role

to initiate a scheme wherein Sonnen made payments on fraudulent invoices to fake advertising vendors who then forwarded the majority of the proceeds from the scam back to Bakhtiari. The indictment alleges that Arlette Casino, who served as Sonnen’s controller from 2013 to 2016, and Austin Caba, who controlled one of the fake advertising vendors, conspired with Bakhtiari and participated in the scheme since at least 2013. The indictment alleges that Bakhtiari directed approximately $6.3 million in fraudulent transfers.

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10 • February 5, 2018

USED CAR NEWS

State Convicts on Fraud Two used-car store managers were found guilty of a corrupt business organization plot to deceive a myriad of financial institutions and insurance companies across the country, resulting in a loss upwards of $1.6 million. Mahdi Khelifi and Hamza Dridi were found guilty of conspiracy to commit racketeer influenced and corrupt organization (RICO) and interstate transportation of stolen property. Khelifi was also charged with conspiracy to commit mail fraud and two counts of conspiracy to commit wire fraud. Khelifi and Dridi managed Elite Imports LLC and Elite Car Imports, LLC, which were car dealerships operating in Indianapolis. Elite would work with customers to help them secure financing. Khelifi, Dridi and other members of the Elite Enterprise organization deceived creditors by submitting fraudulent documents and information, such as proof of income (paystubs, driver’s licenses, Social Security numbers, and dates of birth) and proof of residency (utility bills), among other things. Enterprise members created or obtained these fraudulent documents so that they could deceive the finance sources. Many of the fraudulent documents showed that Elite customers worked at shell

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companies. The goal of the Elite Enterprise was to make the prospective creditor believe that the customer was credit-worthy, with appropriate income levels, employment status and valid state drivers’ licenses to obtain loans. The second racketeering fraud scheme involved members of the conspiracy making false claims to insurance companies, reporting vehicles as stolen, when in fact they were not. The defendants and associates were then reimbursed by various insurance companies for the purported stolen vehicles. Eleven vehicles and vehicle parts previously reported stolen to insurance companies and the police were located in a chop shop behind the Keystone location when federal agents raided the business in September 2015. The third fraud scheme involved floor plan financing and money laundering. The case was investigated by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the U.S. Social Security, OIG, the Lawrence Police Department and the Indianapolis Metropolitan Police Department, with assistance provided by the Indiana Secretary of State, Auto Division, and the Indiana Attorney General Consumer Fraud Division.

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RETAIL MARKETS IOWA Todd Givant, general manager, Des Moines Auto Auction, Des Moines, Iowa: “This will be our 10th year in operation. “We have ive lanes and we run four on a regular basis. We run ive when we have our anniversary sale. “January volumes are generally 275 to 350 at best. The last few weeks were in the 300 to 325 mark. “Our volume is steady, but it seems like it’s a little harder – having to make more calls and do more work. “Annually, we stay at that 65 percent (conversion) mark, which is great. We’ve been fortunate. “We’re smaller than a lot of sales, but we’ve been able to keep a high percentage (sale). “Last year, we’d average 250 bidders at the sale. We’re probably of 20 to 30 during the winter. “But a few weeks ago, we still had a 70-72 percent sale.

“Dealers’ (sales) are mixed. Some dealers in particular areas say their business is consistent, which is good, that’s what you want. “We’re probably a 90-percent dealer-consignment sale. But our repossessed vehicle business is growing as far as volume. “At the end of each sale, we’ll have a progressive (cash prize) drawing. “We use Auction Edge online. All of our lanes are online. “Last year, the average price in the lanes was around the $5,000 mark. A lot of dealers are small independents, buying onesies and twosies. “It seems like we do pretty good with trucks and SUVs. “All we can do is keep our noses down and keep following up with customers. It seems to me if you’re working really hard on the customer service end and you’re trying to igure out any problem and being fair, that’s about the only thing you can do.”

NEVADA Russ Norrish, general manager, Dealers Auto Auction of Las Vegas, North Las Vegas, Nev.: “We’re slowly growing. We’ve been up and down for three years, but we just added some employees. “We’re a small independent auction. It seems like each month we’re adding a few more cars and selling a few more cars. I’m happy where we are. “We have ive lanes and right now we’re running four. “We’re running around 325, sometimes that goes up to 350. “Although our anniversary (date) was in November, because of the holidays we kind of held of so we’re having our third anniversary on Feb. 14, Valentine’s Day. “We expect to have over 500 cars on that Feb. 14 sale. “Volumes are up about 20 percent compared to this time last year. I think people are taking time to visit us

$

and see who we are – being the new guy in town. “Word of mouth helps. There are basically ive auctions around, but our sale is on Wednesday before the other sales. So people come in to check it out and say ‘Wow, we didn’t know this is what you had here.’ “Sales percentages had gone up to about 65 percent, but it tailed of a little bit. And a lot are complaining that they are just not selling a lot of cars. We’ve had some guys close down. “Also, guys here start loading up in December and early January for tax time and that’s a big season in Vegas. So guys are holding of because they had a lot of inventory. Hopefully, later this month tax season will take of into March. “Our dealer consignment is 90 percent of volume. “We don’t have the big leet-lease consignors. We have four or ive subprime banks here – Lobel Financial, United Finance, Clark County Credit Union and

February 5, 2018 • 11

Compiled by Jeffrey Bellant we run cars for Avis, Fox Rent A Car and Enterprise runs some seasonal cars. “But most of our stuf is new-car stores and wholesalers. “We use Auction Pipeline since we’re an independent. That’s slowly grown, too. Now we’re starting to get a lot more condition reports done on cars so that’s really enhanced our buying. “We also have a nonrunner sale. It’s small and consists of about 20 cars a week. That starts right before the sale. “Right now, the average price across the block is $6,200. It’s deinitely gone up. When you’re new people bring cars in to see what the market is. When they realize that you have the buyers and get the money, then they bring (better cars) in. “We average about 220 buyers a week. It sometimes might dip to 190. But it’s in that range. “A lot of the independents love the trucks.”


12 • February 5, 2018

USED CAR NEWS

WHOLESALE MARKETS Compiled by Jeffrey Bellant ARIZONA Ace Christian, CEO, Rock Solid Auto Center, Mesa, Ariz.: “We’ve been in business since 2005. We have one location. “On average we keep about 75 to 80 in inventory. But for tax season we’ve got 90. “On average we sell 45 to 52, depending on the month. We like to be at 50. “We get all of our cars from auctions. It was harder last year because a lot of people were coming up from Texas because of the hurricane, so there was a lot of competition. You also had to be on your toes because of cars that were water-damaged. “But it seems to be getting a little easier. “We seem to see a lot of our type of cars coming through the lanes. “We sell most of our repos at auction, about 20 a month. “This year, tax season seems to be a lot better. We just started in December with the TaxMax program and we had a record Decem-

ber. We sold 60 cars. “We are 100 percent buyhere, pay-here. “Our average down payment is about $1,100. That’s because we do one deferred down payment. We try to keep our down payments around $800. “We are 42 months max (for term length). “We use a starter-interrupt, payment reminder and GPS. We’re thinking about going back to just GPS. I’m on the fence as to whether shutting the car of is helpful. We’re more concerned about inding the car. We’re debating that. “Our average retail price is $9,000. “Average model year is ive to 10 years old. Average mileage is right about 100,000. “I would say we carry 90 percent cars and 10 percent trucks. “Mostly we carry domestics. We tried to go to some of the imports. But with being a buy-here, pay-here and the cost of parts, while selling a service contract, it just

didn’t work out for us. “Recon costs average anywhere from $800 to $900. We do that in-house. We only work on our own vehicles and only customers who buy service contracts. “We do a lot of marketing locally through the mail. We also do a lot of TV spots. So we’re doing a lot of tax season spots right now. ‘Bring in your W-2s and drive away today,’ that kind of stuf. “We recently sold a 2012 Ford Flex. It had 120,000 miles. I think we got right around $10,000.

LOUISIANA Scott Rabeaux, manager, Rabeaux Auto Sales, Lafayette, La.: “We’ve been in business 60 years. My grandfather started it. We have just one location. They had more than one (in the past). “We keep 75 to 100 (vehicles) in inventory. That has not changed in the past year. “We get vehicles from all over, man – wherever we

can. We’ll use auctions and other dealers. “We sell about 25 to 30 a month. “That’s of compared to this time last year. That’s because of the oil ields. “We sell at auctions, but seldom. “We sell both prime and subprime, but mostly prime. It’s probably 80 prime and 20 percent subprime. That’s about the same as this time last year. “We have a nicer used car here. Average retail price is $25,000. “But I change my inventory throughout the year. So during this time of the year (January), I go with a cheaper car for tax season. “Normally, I see a bump during tax season. But the last two years: no. It’s been a little diferent the last couple of years. “So mileage and model year (of our inventory) depends on the time of year. So right now the mileage is around 70,000, 75,000 or 80,000. (Outside of tax sea-

son), it will be 50,000 miles. “Right now, we’ll sell a ive-year-old car. “Finding cars depends on the time of the year. Whenever new-car dealers are getting trades, it gets easier. “We carry mostly trucks, then we’ll carry 20 percent SUVs and 20 percent cars. “We carry very little imports. It’s mostly domestics. In general, that’s just the market. “Reconditioning is about $1,000 to $1,500 per car. That’s about the same as this time last year. That’s what it costs to make them perfect. I’m talking about tires, I’m talking about windshields – everything. We sub that all out. We’ve always done it that way. “We do very little marketing and advertising. “We have a website. But we’re old school. About 60 percent is repeat and referral. “We recently sold a 2010 Hyundai Sonata. It had 80,000 miles. I think it sold for $8,000.”

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USED CAR NEWS

February 5, 2018 • 13

DISCONNECTED JOTTINGS FROM There are, no doubt, many ways to value a life. Any meaningful way would make little mention of money. Although some good people do amass fortunes and spread the wealth through building businesses to the beneit of employees and their families or through charitable contributions. I mean in no way to belittle that kind of generosity. But generosity can come from giving other things of value – life lessons that can go with you, no matter what or where. It’s a rare individual who can go through life sharing those things as a matter of their natural being. I try to avoid using this column as an obituary, but occasionally a life passes that should be widely recognized and noted. This was not a worldfamous individual but one known throughout the auto auction industry and all it touches. Kenny Osborn, who passed

TONY MOORBY

away on Jan. 10 this year at only 65, was a quiet, conident individual who questioned everything until he could master the subject and then share his abundant knowledge with employees, colleagues and friends alike. He was a disciplined guy who expected the same from those around him and he had a drive for excellence to match – if you’re good, train to be better, if you’re better, train to be the best. It was a moral thing with him – a responsibility. He shared it with his family who were the only thing he put in front of himself. He came up through the automobile business much like I did – at irst in retail and then in the auction world. He was a fabulous auctioneer on top of his managerial talents. He was a keen motorcyclist, as a dealer, lattrack rider and tourer – we shared many a mile together. His ight with cancer was all too short. Ironically he gave so much

of his generous time and talent to raising funds for the American Cancer Society through many venues including the huge wine auction in Nashville, Un Été du Vin, which on one evening alone topped $1.2 million thanks, in part to his persuasive chant. I was talking to an old friend and colleague, Tim Swift, about friends who had recently passed, including Raiford Troutman, an absolute gentleman of a usedcar dealer in North Carolina, and Nancy Linn, wife of Mike the retired CEO of the NIADA, and we ended up laughing at the memories they had left us. In a way it was the greatest respect we could pay to their memories – that they represented or brought good times to our lives. Kenny’s sense of humor was on the dryer side of belly laughter, but he saw true joy in his kids and grandkids, expressed by an ear-to-ear grin at their very mention. His constant and contin-

ued involvement in the National Auto Auction Association was acknowledged by his induction into their Hall of Fame in 2013, having been its president in 2001 and he was a Fellow of the Warren Young Scholastic Foundation. The used-car business sometimes sufers a little tarnish on its reputation – if only people knew the truth of it! While we’re not all paragons of virtue, our industry is awash with magniicent people who give irst and

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

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

C R O S S WO R D By Myles Mellor

Across 1. Chevy 4-door 5. Hyundai model 10. Nation of the Motor City 12. The Red ____, custom t-bucket hot rod built by Tom Daniel 14. Nash model 15. VW compact 17. New, prefix 18. Popular car color 20. Two-door 22. Shut with force 24. Audi sports cars 25. Mr. Nice ___ 26. Mitsubishi model 29. Professional ___, closed course 31. Place for a car ornament 34. Stretch vehicle

36. Slows by movng the rear end sideways 39. Holiday ___ 41. Detective, abbr. 42. They have a tinted option 45. Young professionals’ demographic group 47. Shade of green 48. New York team 49. Puppy bite Down 1. Nissan SUV 2. __ __ rule 3. Gallardo is one 4. Road around an urban area 6. Auto trader, 2 words

never question the cost. I remember some pedal cars with an anticipated auction value of $50,000 being sold at our annual convention for a half a million for charity. Or one of Carl Miskotten’s staf at West Michigan Auto Auction giving a kidney to one of their customers! I think of all the people with whom I’ve been associated over the years – people like Kenny – who helped me become successful and consider myself a millionaire by any measure.

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Solution to this puzzle in the 2/19/18 issue. Call 1.800.794.0760 for a FREE subscription.

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14 • February 5, 2018

USED CAR NEWS

REMARKETERS FOCUS (Darren Aiken is the assis- pect for 2018? tant vice president for Wheels Aiken: This year looks Inc.) very optimistic for Wheels and the remarketing of leet UCN: Did 2017 meet your vehicles. expectations? The supply, current ecoAiken: Last year was a nomic conditions and congreat market for our clients. sumer conidence will fuel Resale values for true leet the used vehicle industry for vehicles remained strong the remainder of the year. and allowed our customers to enjoy low depreciation costs for another year. The forecasted increase in supply did occur, but the industry was able to absorb the increase in vehicles, due to new vehicle incentives and demand for used vehicles. The last quarter of the year After 2018, the supply of experienced major weather total used vehicles for sale events and our hearts and should start to drop from prayers go out to anyone af- 2018 highs and we should fected by the hurricanes, continue to have strong reloods and the ires. sale values in the future. The natural disasters also had an efect on prices of UCN: What are you doused vehicles across the ing to distinguish your ofcountry with certain seg- ferings with the growing ments of vehicles having amount of inventory enprice increases in the last tering the wholesale marquarter of the year. ket? Aiken: Our strategy conUCN: What do you ex- tinues to be building a used

vehicle brand for Wheels vehicles, whether we are selling them in the lanes or online, by diferentiating our vehicles from all the other used vehicles for sale. This strategy has been working, as we planned for this supply increase over the last ive years.

gies are having the biggest impact on the way you remarket vehicles? Aiken: Simulcast and online purchases by dealers have had the biggest impact on resale for leet vehicles. As it gets more acceptable to purchase a used vehicle digitally, and condition reports,

“Again, dealers want to purchase vehicles from whom they know and whom they trust to stand behind their vehicles.” It has built a great following for Wheels vehicles. Part of our strategy is to ofer certiied units for sale, lane representation, vehicles that are fully maintained while in-service and oneowner vehicles. Dealers like to buy vehicles from someone they know and the integrity of the seller is critical in building a brand. UCN:

What

the grading system and reconditioning improvements get more ine-tuned and accepted by the buyers, we will see a drastic change in how dealers purchase vehicles now and in the future.

UCN: What ways could the auctions better meet your needs? Aiken: The auctions really do a good job and have many good employees working evtechnolo- ery day to make sure sale day

happens without a hitch and on time. One area where they need to continue to focus their attention is operationally. Auctions need to continue to increase productivity of their locations and their employees. Auctions can do this a number of ways by reviewing current processes, using technology and continuing to train employees on improving processes. UCN: What are you doing for dealers? Aiken: We continue to educate dealers about Wheels, to make sure they know our brand: that we sell certiied, one-owner, corporately maintained vehicles that are represented sale events. Wheels does not use our auction lane to sell vehicles that are not owned or managed by Wheels to our dealers. Again, dealers want to purchase vehicles from whom they know and whom they trust to stand behind their vehicles.

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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!

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1/29/18 10:29 AM


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Used Car News 2/5/18  
Used Car News 2/5/18