Used Car News 2/19/18

UsedCarNews.com

February 19, 2018

Autotrader Upgrades Site to Better Compete

By Ted Craig

Rush - Dated Material

Competition continues to grow among digital marketers as dealers move more and more of their advertising dollars online.

One of the pioneers in this ield, Autotrader, is responding to this challenge by putting its site through a major upgrade.

Autotrader celebrated its 20th anniversary last year. Last month, parent-company Cox Automotive announced the overhaul.

The process involves new rollouts throughout the year, but some are already in place.

One upgrade is a new look that is consistent across desktop, tablet and mobile screens, ofering faster loading times.

A modernized search experience to drive relevance and speed – up to 25 percent faster – will sort listings by shopper search criteria, previous shopping history and a combination of distance, value and merchandising.

Part of the goal for the upgrades is leveraging the stable of companies owned by Cox Automotive.

The irst step is introducing the Kelley Blue Book Fair Market Range on all eligible vehicle inven-

tory listings.

This ofering provides shoppers with increased transparency, said Jessica Staford, senior vice president and general manager of Autotrader.

“It smoothes the connection point between the shoppers and the dealers,” Staford said.

Although the rollout just started, Autotrader tested the new feature on select dealers. Staford said the response so far has been extremely positive.

“They love the look and feel, and they love the idea behind a lot of those components,” Staford said.

More importantly, they love the initial results.

“This is a true transformation,” Staford said.

Autotrader’s competitors are moving forward in their own ways.

Cars.com Inc. and media company Tronc, Inc. announced an agreement to convert Tronc’s eight ailiate markets into Cars.com’s direct retail channel, efective Feb. 1 More than 2,000 dealer customers will convert from Tronc’s ailiate network into Cars.com’s direct sales channel.

Tronc’s sales and support teams joined Cars.com.

USED CAR NEWS

February 19, 2018 • 3

Wholesale Prices Decline, Dealer Optimism Rises Wholesale prices fell and used-car sales rose to start out the year.

Manheim reports that wholesale used vehicle prices decreased 0.74 percent month-over-month in January.

This brought the Manheim Used Vehicle Value Index to 131, which was the lowest level since last July. It was a 4.9 percent increase from a year ago.

The Index adjusts prices for mix, mileage, and seasonality.

On a year-over-year basis, all major market segments except midsize cars saw gains. Luxury cars, pickups, and vans outperformed the overall market.

The lower prices were driven mostly by the continuing increase in supply and a market adjustment.

“Depreciation accelerated for most vehicles to catch up with the abnormal pricing performance in September; but now that prices are more in line with the general trend prior to the hurricanes, expect the rate to slow down to normal,” said Cox Automo-

tive chief economist Jonathan Smoke.

The demand side remains strong.

Edmunds estimates that 3.1 million used vehicles were sold in January, up from 2.7 million in December.

As result of market conditions and the general economy, independent dealers are optimistic going into the new year.

The economic and retail sales growth expectations of independent auto dealers have improved substantially, according to the National Independent Automobile Dealers Association’s business confidence survey for the fourth quarter of 2017.

The survey of NIADA members is conducted each quarter in partnership with Equifax to gauge their mood regarding general economic and business conditions.

Fifty percent of the dealers surveyed said they expected economic conditions to improve in the first quarter, up from 36 percent in the third quarter survey. Retail sales growth expectations improved to 67 percent from

Source: Manheim

55, and the number of dealers who expected to increase their inventory investment this quarter rose.

The big drivers of that renewed dealers’ optimism include expectations of tax relief, positive consumer sentiment due to the lowest unemployment rate in more than 30 years and confidence in the current administration’s pro-growth, antiregulation policies.

That inflationary inven-

tory situation continues to put pressure on the business expense side of the ledger, which is one reason 57 percent of dealers expected their cost of doing business to increase, up from 45 percent in the third quarter.

That jump also reflects the significant investment independent auto dealers continue to make in their digital showroom – as reflected in the survey, which shows 56 percent planned to in-

crease their digital marketing spend.

The expectation of rising expenses also showed up in dealers’ perception of the single most important problem facing their business – 25 percent said it was the increased cost of doing business, by far the most popular choice.

The overall picture shows NIADA members expected business to improve heading into the new year.

4 • February 19, 2018

USED CAR NEWS

NEWS BRIEFS NIADA Partners with Ituran, Lyft Ituran USA has enhanced its longterm relationship with the National Independent Automobile Dealers Association by becoming NIADA’s latest Bronze-level National Corporate Partner.

A provider of GPS products, services and solutions for subprime inance companies and buy-here, payhere dealers, Ituran has supported NIADA since shortly after it began providing services in the U.S. NIADA has also partnered with ride-sharing service Lyft.

The partnership provides NIADA dealer members with referral incentives and improved transportation solutions for customers while also supporting Lyft’s eforts to expand its driver community.

NIADA member dealerships can sign up to be a Lyft referral partner and receive bonuses for each driver they refer. Customers who sign up for the program will also receive a bonus shortly after they begin driving for Lyft, which they can put toward their down payment and monthly costs of purchasing a vehicle.

In addition, Lyft’s Concierge program ofers NIADA members an easy, reliable and inexpensive way to provide transportation for cus-

tomers whose vehicles are laid up in program with a valid Auction Access service. number and a current ADESA.com Concierge enables the dealership username and password. to request rides for its customers to get where they need to go while Credit Acceptance Reports Higher Income their car is being serviced.

Credit Acceptance Corp. announced consolidated net income of ADESA Launches Rewards Program $177.1 million for the fourth quarter.

ADESA has launched a rewards This is compared to consolidated program for buyers at its auctions net income of $87.6 million for the and websites. same period in 2016.

GrandADESA Rewards allows For the year, consolidated net incustomers to earn points when they come was $470.2 million, compared purchase qualifying vehicles and to consolidated net income of $332.8 specialty units at ADESA U.S. auc- million for 2016. tion locations and on ADESA.com.

Customers can use earned reward points as ADESA Dollars toward buy Group Buys Rea Brothers Auction fees on future eligible purchases, or Dealers Auto Auction Group LLC convert their earned points to use (DAAG) expanded its footprint by toward the purchase of merchan- purchasing Rea Brothers Mid-South dise, travel or gift cards.

Auction in Jackson, Miss.

Dealers enrolled in the ADESA DAAG currently has additional loRewards program get reward points cations in Murfreesboro, Memphis with their irst transaction – earn- and Chattanooga, Tenn., as well as ing on all eligible open sale vehicles Huntsville and Mobile, Ala. as well as on special promotions John Tidmore takes over as genthroughout the year. eral manager.

Also, bonus points are awarded He brings more than 20 years of when dealers show an increased auto experience, previously workpurchase history at ADESA. ing as a national account managSingle button access to the rewards er for ADESA and most recently program at the top of the ADESA as the general manager of Dixie home page allows dealers to join the Auto Auction in Granada, Miss.

KAR Acquires Fleet Management Firm KAR Auction Services Inc. announced the acquisition of mobility and leet management software company Stratim.

San Francisco-based Stratim was founded in 2016 by a team of technology innovators from Google, eBay and Trulia. Stratim’s software utilizes real-time data and predictive analytics to digitize leet management and help mobility service providers streamline operations.

Fleet owners can manage, service, dispatch and pay all their current vendors.

Stratim operates in more than 25 North American cities and has processed service transactions for many mobility service providers and automotive manufacturers.

Stratim will maintain its current headquarters in San Francisco. Sean Behr assumes the role of Stratim’s president.

PAGE 14

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

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USED CAR NEWS

February 19, 2018 • 5

GM Shares Finance Outlook DETROIT (AP) – If auto loan interest rates rise as expected this year, General Motors and others are likely to make more subsidized loans, including 0-percent inancing, to keep car sales lowing.

CFO Chuck Stevens told reporters after GM released its full-year and fourth-quarter earnings that, generally, auto company inance arms try to make up for rising rates with subsidies.

GM also announced that about 50,000 union factory workers will get $11,750 proitsharing checks this month, based on a full- year pretax North American proit of $11.9 billion.

GM expects loan rates will increase .75 percent this year as the Federal Reserve acts to stave of inlation. As many as three quarter-point hikes are expected.

Auto loan rates now run around 3 percent to 4 percent for buyers with good credit.

Across the industry, subsidized loans make up a relatively low percentage of incentive spending now because inancing rates remain so low, Stevens said. But as rates rise, companies likely will move dollars from other sales incentives to keep loan rates low, he said.

“Leasing and cash-based incen-

tives are kind of predominant now,” Stevens said. “As interest rates increase, there will be more subvented inancing. Then you’ll reduce other parts of the toolbox.”

A quarter-point rate increase pushes up a typical monthly car payment by only $3, Stevens said.

GM expects 2018 to be another strong year for sales because wages are growing, gas prices are low and consumers will have more disposable income due to tax cuts, Stevens said.

GM’s captive inance arm, General Motors Financial Company Inc., recently announced income from continuing operations of $450 million for the quarter ended Dec. 31.

This compared to $242 million for the same period in 2016.

Retail loan originations were $4.4 billion for the quarter, compared to $4.7 billion for the quarter ended Sept.

30 and $3.9 billion for the quarter ended Dec. 31, 2016.

The outstanding balance of retail inance receivables was $32.8 billion at Dec. 31.

Operating lease originations were $5.8 billion for the quarter, compared to $6.5 billion for the quarter ended Sept. 30 and $5.9 billion for the quarter ended Dec. 31, 2016.

“As interest rates increase, there will be more subvented inancing.

Then you’ll reduce other parts of the toolbox.”

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State Bans Ex-Dealer for Life A former Topeka automobile dealer has been permanently banned from doing business in Kansas and ordered to repay more than $25,000 to consumers after being found in violation of Kansas’ consumer protection laws.

Justin Bogina and his business, Auto Acceptance Center Corp., have been permanently ordered to refrain from conducting any business related to the sale of property or services within the state of Kansas. Bogina was also ordered to pay restitution in the amount of $25,776 to four consumers, as well as pay a civil penalty and reimburse the attorney general’s oice for the cost of its investigation. The attorney general had accused Bogina and his company of multiple and recurring violations of Kansas’s consumer protection laws over the past several years.

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USED CAR NEWS

PEOPLE IN THE NEWS Compiled by Jeffrey Bellant IAG Names First Executive Director The Independent Auction Group (IAG) named industry veteran Lynn Weaver as its irst executive director.

In the newly created position Weaver will be responsible for advanc-

LYNN WEAVER

director, Weaver served as volunteer co-chair of the IAG along with former NAAA President Charlotte Pyle, owner of Capital City and Mountain State auto auctions, and Dave Blake, general manager of DAA Seattle. He also sits on NAAA’s Membership and PAC committees.

Weaver has worked in the profession for more than 25 years.

Formerly the owner of Harrisburg Auto Auction, Weaver sold the business to America’s Auto Auction in December 2014. He remained as the general manager. Weaver retired from daily operations on Jan. 1.

ing initiatives to address the needs of the organization’s membership, which com- AutoIMS Appoints prises 195 independent Operating Oficer AutoIMS (Auto Aucauctions in the National Auto Auction Asso- tion Services Corp.) ciation. Prior to his ap- announced the promopointment as executive tion of Venkat Krish-

namoorthy to chief operating oicer.

Krishnamoorthy most recently served as chief information oficer, managing devel-

years at Delta Airlines in its revenue optimization group.

He serves as co-chair of the technology committee for the International Automotive Remarketers Alliance.

Cox Promotes Digital Executives

ZACH HALLOWELL opment, support and updates to AutoIMS. In his new role, he will continue as a member of the strategy team, oversee all facets of the technology team, and add contract management and compliance to his responsibilities.

Krishnamoorthy joined AASC in 2002 as Java Team Lead after 5

Cox Automotive recently promoted a pair of executives to increase its digital oferings.

Cox Automotive has promoted Zach Hallowell to vice president, Manheim Digital Marketplace and RMS Automotive.

In this role, Hallowell will direct and coordinate the overall domestic and global operational activities for digital channels – OVE, Manheim.com and Simulcast and OEMspeciic marketplaces – along with RMS Automotive and its global

business. In his previous role as general manager of RMS Automotive, Hallowell was responsible for directing and coordinating the overall global activities of RMS to ensure optimum eiciency and productivity to maximize growth, proitability and customer satisfaction. Hallowell is a graduate of Middlebury College and is the named inventor on numerous patents related to wholesale remarketing systems, including vehicle lifecycle management, electronic marketplaces, and third-party vehicle inspection processes.

Before joining RMS Automotive in 2015, Hallowell held several senior leadership roles at Openlane and served as vice president of product management for ADESA. Manheim has expanded the role of

Derek Hansen as vice president of ofsite solutions.

In Hansen’s expanded role, all digital and

DEREK HANSEN mobile ofsite solutions are organized under one leader.

Since June 2016, Hansen has been responsible for Manheim’s digital operations as vice president of digital inventory solutions.

Hansen joined the Cox Automotive team in January 2015 as senior director of strategic planning.

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Manheim Orlando March 6, 13, 20, 27 800-337-8491

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Manheim Milwaukee March 7 262-835-4436

Manheim Pennsylvania March 1, 15. 29 800-777-2053

ADESA Charlotte March 1, 15, 29 704-587-7653

Columbus Fair AA March 14, 21 614-497-2000

Manheim Palm Beach March 21 561-790-1200

Manheim Atlanta March 28 404-762-9211

Manheim Nashville March 14 877-386-5004

Manheim Riverside March 8, 22 909-689-6000

ADESA Chicago March 9 847-551-2151

Manheim Atlanta March 1, 15, 28, 29 404-762-9211

Manheim Pennsylvania March 1, 2, 15, 16, 29, 30 800-777-2053

Manheim Dallas March 7 877-860-1651

Manheim Palm Beach March 21 561-790-1200

ADESA Cincinnati/Dayton March 13 937-746-4000

Manheim Dallas March 7, 21 877-860-1651

ADESA Golden Gate March 13, 27 209-839-8000

Manheim Denver March 7 800-822-1177

ADESA Houston March 14, 28 281-580-1800

Manheim Detroit March 1, 15, 29 734-654-7100

ADESA Indianapolis March 13, 27 800-925-1210

Manheim Fredericksburg March 8, 22 540-368-3400

ADESA Kansas City March 13, 27 816-525-1100

Manheim Milwaukee March 7, 21 262-835-4436

ADESA Lexington March 22 859-263-5163

Manheim Minneapolis March 28 763-425-7653

ADESA New Jersey March 1, 13, 15 908-725-2200

Manheim Nashville March 14, 20, 21 877-386-5004

ADESA Salt Lake March 20 801-322-1234

Manheim New Jersey March 7, 21 609-298-3400

ADESA Tulsa March 9 918-437-9044

Manheim New Orleans March 21 985-643-2061

Manheim Phoenix March 1, 8, 15, 22, 29 623-907-7000 Manheim Pittsburgh March 7 724-452-5555 Manheim Riverside March 6, 8, 15, 22 909-689-6000 Manheim Seattle March 28 206-762-1600 Manheim Southern California March 1, 15, 29 909-822-2261 Manheim Tampa March 1, 29 800-622-7292 Southern AA March 7 860-292-7500

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Mazda Capital Services ADESA Boston March 9, 23 508-626-7000

Manheim Fredericksburg Manheim Pennsylvania March 22 March 2, 16, 30 540-368-3400 800-777-2053

ADESA Houston March 28 281-580-1800

Manheim Milwaukee March 21 262-835-4436

Manheim Pittsburgh March 7 724-452-5555

Columbus Fair AA March 21 614-497-2000

Manheim Nashville March 21 877-386-5004

Manheim Riverside March 6 909-689-6000

Manheim Atlanta March1, 29 404-762-9211

Manheim New Jersey March 7, 21 609-298-3400

Manheim Seattle March 28 206-762-1600

Manheim Detroit March 15 734-654-7100

Manheim Orlando March 13 800-337-8491

Manheim Tampa March 1, 29 800-622-7292

Subaru Motors Finance ADESA Boston March 23 508-626-7000

Manheim Fredericksburg Manheim Pittsburgh March 8 March 7 540-368-3400 724-452-5555

ADESA Salt Lake March 20 801-322-1234

Manheim Milwaukee March 7 262-835-4436

Manheim Seattle March 28 206-762-1600

Columbus Fair AA March 14 614-497-2000

Manheim New Jersey March 21 609-298-3400

Manheim Southern CA March 15 909-822-2261

Manheim Dallas March 21 877-860-1651

Manheim Orlando March 6 800-337-8491

Southern AA March 7 860-292-7500

Manheim Detroit March 1, 29 734-654-7100

Manheim Pennsylvania March 16 800-777-2053

Contact auctions directly for current sale information.

*The tradename “Subaru Motors Finance” and the Subaru logo are owned / licensed by Subaru of America, Inc. and are licensed to JPMorgan Chase Bank, N.A. (“Chase”). Retail/ Loan and lease accounts are owned by Chase. *The Jaguar word mark, the Jaguar logo, and Jaguar Financial Group are trademarks of Jaguar Land Rover Limited and any use by Chase is under license. The Land Rover word mark, the Land Rover and Oval logo, and Land Rover Financial Group are trademarks of Jaguar Land Rover Limited and any use by Chase is under license. Retail / Loan and lease accounts are owned by Chase.

The tradename "Mazda Capital Services" as well as the Mazda and Mazda Capital Services logos are owned by Mazda Motor Corporation or its affiliates and are licensed to Chase. Retail / Loan and lease accounts are owned by Chase. ©2017 JPMorgan Chase Bank, N.A. Member FDIC (18-003) 3/18

8 • February 15, 2018

RETAIL MARKETS INDIANA Fred Grote, owner, Grote Automotive, Fort Wayne, Ind.: “We’ve been in business 10 years. We have just one location.

“In February, we have about 220 cars in inventory.

“We sell about 180 a month on average. In January we sold 205, which is our best January we ever had.

“We have three buyers to (acquire vehicles). We don’t do much online. We do inlane buying in Pennsylvania and around here.

“About 65 percent of our business is subprime. The rest are prime sales. We work with local and national banks for inancing.

“Our mix of subprime has gone down. We used to be 85 percent subprime. As we grew, our prime has been growing while our subprime stayed the same.

“Average retail price is $14,000.

“Our average mileage is about 50,000. We have a three-year-old car on aver-

age.

“So far this year, it’s been really good to ind the cars we want without a lot of efort. But this time of the year is usually a lot harder than it is right now.

“In the past, January going into February meant the cars were too expensive.

“Last year we didn’t see a big spike for tax season.

This year, so far, we haven’t.

Tax season isn’t like it used to be. They used to get their taxes over a 45-day period.

But they come so fast now (in a shorter period of time).

“I’d say we carry 50 percent cars, 30 percent SUVs and 20 percent trucks.

“Domestics and imports have really changed. When I walk my lot, I can’t believe how many imports we have now – Kia, Hyundai, Honda and Toyota. It’s really changed from the times I’d walk out there and it would be all Chevy, Ford and Chrysler. I’d say it’s 60 percent to 70 percent import.

“Our average reconditioning is about $650. That’s all

done in-house. We have a full service department “We do outside work, too. That business has been growing. It’s good.

“We do broadcast advertising – TV and radio. We’ve been doing that for the past ive or six years. We also had to get into social media, so we’re doing Facebook, Twitter and Instagram. We also use Google.

“We recently sold a 2015 Chevy Traverse. It had 29,000 miles. We sold it for $21,995.

“When we start out with 205 units sold in January, we’re feeling pretty good about 2018.”

SOUTH CAROLINA Billy Threadgill, president, Van’s Auto Sales, Florence, S.C.: “We have one location for sales. But we have another location that is a rental lot.

We are the oldest U-Save franchise there is in the country.

“We stock 60 to 70 cars as a rule. For tax season,

$ we’re probably up to about 90 cars right now. Yesterday at the (auction), I had about 30 cars marked (to buy) and only bought one. The market was extremely strong.

Prices were just higher.

Now, I bought a good bit of stuf at the tail end of December and prices were a lot better.

“I have a good relationship with franchise dealers that I buy some cars from. I buy a bit from the auctions and I buy from individuals.

“We don’t sell at auctions often. A lot of times we try to stay in that mid-range priced car that doesn’t have the depreciation factor that the late models have.

“For example, we sold a 2000 Ininiti the other day with 110,000 miles. That car is worth the same thing today that it was three years ago.

“January was horrible for us. We don’t normally have bad weather or snow and had almost two weeks worth of snow. I think we sold about ive cars for the

$

USED CAR NEWS

Compiled by Jeffrey Bellant month. We did 14 in January 2017. My goal is to sell about 10 to 12 a month.

“My business model is about 70 percent retail and subprime and 30 percent buy-here, pay-here. We are starting to see lenders tighten up a little recently.

“Average retail price on the lot is about $8,500. Now, I’ve got cars that are $28,000 and others that are $3,900, but my bread and butter is going to be anywhere from $5,000 to $12,000. We are an agrarian-based economy mostly, with a little bit of manufacturing. So the income level in our area is not really high.

“Average model year is probably 2010. The average mileage would probably be 100,000. I’ve actually got a Chevy truck out here that’s got 330,000 miles on it that I drove home last night. We took it a trade for a Toyota 4Runner with 560,000 miles on it.

“We carry about 60 percent imports and 40 percent domestic.

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10 • February 19, 2018

USED CAR NEWS

WHOLESALE MARKETS Compiled by Jeffrey Bellant GEORGIA Corey Sanford, general manager, America’s Auto Auction – Atlanta, Cartersville, Ga.: “America’s Auto Auction purchased us in April 2012.

But we irst opened up in 2003.

“We have four lanes.

“We had a great January.

We had a better January this year than last year, even though last January went well. We continue to grow every year.

“We typically run at 1,000 or between 1,000 and 1,100 units a week. Looking back at January, our best week we sold 704. Average was around 600.

“For the month of January, we sold 62 percent. We ran about 30 more cars in January than we did last year.

But we sold 150 more, so the conversion rate was much better.

“In 2017, the average price per car sold was $4,500. In 2018, it’s $5,500.

“Part of that increase is due to picking up new clients.

We picked up Hennessey Auto Group in Atlanta and they have 14 locations. A lot of their locations are (brands like) Lexus and Land Rover.

So they have a much nicer class of trade. That’s going to be a really nice account for us.

“We are right at 600 dealers a week (in the lanes). In 2017, that number was about 550.

“We draw from Tennessee, a lot of Alabama and metro Atlanta.

“Dealers always grumble about retail sales. But I hear the new-car stores are doing better.

“They have to be doing better because their trades are up. So they have to be doing well.

“We are 80 percent dealer consignment and 20 percent leet. That’s pretty much the way we’ve always been.

Caprock Remarketing, out of Texas, has been an amazing customer for us. They are great people to work with.

They were running 30 every other week last year and

they’re probably up to 75 every other week this year.

“I don’t have any repos. We mostly have lease turn-ins.

“We use Edge Simulcast.

It’s grown every year. Two years ago, we only sold a couple of hundred online.

Last year, we sold almost 1,000 online. We’ve already sold 1,200 online this year.

There has been a lot more activity on Edge Simulcast.

“On the second and fourth Fridays, we run in-ops. That volume is between 120 and 150.

“We have been the No. 1 independent auction for OVE. com sales, most of last year and this year.

“I don’t even know what tax season is anymore. I don’t see much of an increase.

“Since America’s Auto Auction bought us, we have broken records every single year.

From when they bought us in 2012, we have crushed those numbers in 2013, ’14, ’15 and ’16. I don’t see anything diferent.”

LOUISIANA Matt Pedersen, owner, Lake Charles Auto Auction, Lake Charles, La.: “We’ve been in business since 1991.

“We’re currently running three lanes but our fourth lane will be open (this month). I don’t have a date set for it (at press time).

“Volumes are running 350-a-week on average. For January, it’s a little slower, but February should pick up more and March and April should boom.

“We’re actually up 50 cars a week in January from last year.

“I attribute a lot of this (increase) to my sales reps.

They’re just bringing in more cars, so the more you have the more you sell.

“I want to say (conversion rates) are 51 percent.

“Dealers are doing good and they are happy with their returns. They’ve been pretty busy, from what I hear.

“Most of our dealers are from Louisiana, but we do

get some sellers out of Mississippi and Texas.

“Our vehicles are mostly dealer consignment. I would say it’s about 85 percent. We also sell for Enterprise and we sell for some local credit unions and places like that.

Those volumes are steady.

“We do our in-ops once a month, on the last Wednesday. We run about 50 through that sale.

“We also sell for the FBI about three or four times a year. It just varies – whenever they need to turn some (units), they’ll sell it with us.

Those are their employee vehicles. They are a mix of sedans and SUVs. We seldom get trucks. Dealers love those cars. We’re going to sell 30 of them this month.

“Our average price is $8,299 this year. Just a few years ago our average price was $3,400.

“Since I hired new sales reps over the last couple of years, they are just bringing in a nicer vehicle.

“Trucks bring all the money here.”

ACTUAL WHOLESALE AND PROJECTED RESIDUAL VALUES FEBRURARY 2018

SOURCE: BLACK BOOK

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

Feb ‘17 13,100 15,900 6,600 7,350 7,250 12,450 6,300 10,500 11,000 14,250

Jun ‘17 11,550 15,250 5,800 7,150 7,050 11,450 5,650 10,600 10,500 12,950

Feb ‘18 9,300 12,900 4,900 5,700 5,600 10,300 4,650 9,250 8,750 11,150

Feb ‘19 8,250 11,025 4,325 5,100 4,600 8,900 4,100 7,900 7,625 9,650

Feb ‘20 7,300 9,250 3,650 4,400 3,750 7,675 3,450 6,675 6,425 8,550

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 300 S 4D Sedan V6 Ford Focus SE 4D Sedan Ford Mustang base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln MKS 4D Sedan Chrysler 200 S 4D Sedan

Feb ‘17 16,500 28,700 9,200 13,350 19,850 9,250 15,150 14,650 19,500 11,650

Jun ‘17 15,700 26,250 8,250 13,150 18,700 8,600 14,400 13,550 18,800 11,150

Feb ‘18 14,100 23,300 7,100 11,900 17,500 7,350 12,650 12,800 16,900 10,100

Feb ‘19 12,600 20,125 6,175 10,325 14,725 6,225 11,150 11,000 14,150 8,375

Feb ‘20 10,925 17,250 5,225 8,700 12,525 5,075 9,700 9,175 12,150 6,925

IMPORTED CARS Acura TL base 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan 2.4 Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Lancer ES 4D Sedan Nissan Altima base 4D Sedan Nissan Sentra S 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Nissan Altima S 4D Sedan 2.5

Feb ‘17 13,950 14,250 30,500 10,600 8,300 17,900 18,650 5,500 8,300 7,000 9,400 7,800 9,900 8,550

Jun ‘17 12,350 13,600 25,500 9,650 7,650 17,250 17,900 5,250 7,800 6,300 8,800 7,100 8,950 8,000

Feb ‘18 11,300 11,550 22,250 8,150 6,650 14,950 15,000 4,500 6,750 4,900 7,650 6,500 7,150 6,800

Feb ‘19 9,275 9,925 17,400 7,675 5,950 12,775 12,525 3,850 5,775 4,575 7,100 5,950 6,250 5,950

Feb ‘20 7,625 8,425 13,600 6,625 5,250 10,825 10,100 3,275 4,975 4,100 6,275 5,350 5,375 5,150

IMPORTED CARS Acura TLX Base 2.4L 4D Sdn BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata SE 4D Sedan 2.4 Lexus ES 350 base 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Lancer ES 4D Sedan Nissan Altima base 4D Sedan Nissan Sentra S 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Nissan Altima S 4D Sedan 2.5

Feb ‘17 20,300 19,500 50,000 14,000 10,800 24,900 29,150 8,200 10,800 9,200 12,050 10,750 13,600 11,200

Jun ‘17 18,400 19,000 41,750 12,950 10,500 23,900 28,500 7,800 10,300 8,650 12,000 10,500 12,500 10,750

Feb ‘18 15,250 16,750 34,500 10,850 9,650 20,500 25,200 6,150 9,200 7,600 11,000 9,550 10,700 9,350

Feb ‘19 13,975 14,175 27,775 10,125 8,625 17,150 20,800 5,600 7,875 6,725 9,950 8,800 9,325 8,150

Feb ‘20 12,175 11,925 22,025 8,775 7,475 14,400 16,825 4,700 6,750 5,800 8,700 7,725 7,850 7,000

TRUCKS BMW X3 XDrive28i 4D SAV 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 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 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 Cadillac Escalade base 4D SUV RWD Ford Escape SE 4D SUV FWD Honda Pilot EX-L 4D SUV w/RES Toyota Tacoma SR5 Double Cab 4X4 V6

Feb ‘17 18,400 19,400 9,650 19,500 24,700 9,800 14,950 18,700 18,000 16,500 12,950 12,500 18,150 26,050 10,550 17,550 18,600 24,900 29,700 10,300 20,800 24,025

Jun ‘17 15,350 17,950 9,400 19,000 21,900 9,200 14,000 16,800 16,800 15,200 12,100 12,200 17,400 24,750 9,300 16,100 18,000 24,400 27,700 9,450 19,250 23,075

Feb ‘18 13,450 15,625 8,400 16,000 18,400 7,500 11,550 14,800 14,000 12,000 11,050 9,950 14,700 23,350 8,200 14,200 16,200 22,650 26,000 8,400 16,850 21,550

Feb ‘19 12,200 14,575 7,275 14,825 16,700 6,250 10,200 13,475 13,400 11,200 9,975 9,025 13,200 22,400 7,200 12,450 15,450 20,025 21,950 7,425 15,200 20,200

Feb ‘20 10,675 13,225 6,100 13,550 14,350 5,125 8,975 11,850 11,925 9,875 9,050 7,875 11,500 21,500 6,125 10,825 14,325 17,200 18,925 6,250 13,375 18,700

TRUCKS BMW X3 XDrive28i 4D SAV Cadillac SRX Luxury 4D SUV AWD Chevrolet Equinox LS 4D SUV FWD Chevrolet Tahoe LS 4D SUV 4WD Dodge Grand Caravan SE Wagon Ford Edge SEL 4D SUV FWD 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 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 Cadillac Escalade base 4D SUV RWD Ford Escape SE 4D SUV FWD Honda Pilot EX-L 4D SUV w/RES Chevrolet Silverado 1500 LT Double Cab

Feb ‘17 25,500 25,350 12,250 32,900 13,300 19,750 25,000 21,600 19,000 15,900 19,350 21,650 29,500 13,100 25,250 22,600 27,900 23,300 48,800 13,600 26,700 23,000

Jun ‘17 24,550 24,600 11,650 34,000 13,200 19,700 24,200 22,500 20,400 14,950 17,400 21,800 28,950 11,900 25,200 23,500 28,000 23,800 47,200 12,500 25,600 24,500

Feb ‘18 22,500 21,300 10,700 30,200 11,200 18,600 21,800 19,500 19,500 14,200 14,250 19,625 27,600 10,700 22,600 20,500 26,150 21,650 39,400 11,700 22,550 22,500

Feb ‘19 19,100 19,950 9,275 27,450 9,525 15,800 19,400 18,075 17,375 12,675 12,800 18,100 25,775 9,575 19,975 19,075 23,550 20,425 35,125 10,050 20,125 20,650

Feb ‘20 16,175 18,525 8,000 23,725 7,850 13,525 16,575 16,475 15,175 11,550 11,050 15,825 24,325 8,250 16,975 17,800 20,875 18,825 30,900 8,525 17,800 18,900

#s

2014 MODELS

2016 MODELS Recorded Figures

Recorded Figures

Projected Figures

Projected Figures

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

Feb ‘17 14,550 26,500 7,750 12,400 8,300 13,550 7,450 11,950 12,650 16,500

Jun ‘17 14,400 24,400 7,050 12,000 8,000 12,800 7,250 12,200 12,300 15,550

Feb ‘18 12,550 21,350 5,750 10,750 6,800 11,800 6,000 10,550 10,500 13,900

Feb ‘19 11,350 18,475 5,100 9,250 5,575 10,150 5,175 9,100 9,225 11,850

Feb ‘20 9,750 15,575 4,250 7,700 4,575 8,625 4,250 7,700 7,725 10,275

DOMESTIC CARS Buick LaCrosse Leather 4D Sedan FWD Chevrolet Cruze LS 4D Sedan Chevrolet Impala LS 4D Sedan 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 Chrysler 200 S 4D Sedan Cadillac CTS Luxury 4D Sedan RWD 3.6L

Feb ‘17 20,150 11,650 14,450 21,600 10,850 17,000 17,400 23,000 13,000 29,000

Jun ‘17 19,100 10,550 14,300 19,900 10,550 16,500 15,700 21,600 12,050 27,250

Feb ‘18 17,150 9,050 12,950 18,950 8,900 13,950 14,300 20,050 11,400 24,700

Feb ‘19 14,950 8,050 11,375 16,325 7,600 12,650 12,875 16,475 9,625 21,200

Feb ‘20 12,900 6,825 9,700 14,000 6,200 11,075 10,975 14,025 8,150 18,025

IMPORTED CARS Acura TL base 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan 2.4 Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Lancer ES 4D Sedan Nissan Altima base 4D Sedan Nissan Sentra S 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Nissan Altima S 4D Sedan 2.5

Feb ‘17 17,050 16,750 39,750 12,250 9,550 20,600 23,450 6,300 9,450 8,000 10,850 10,100 12,200 9,850

Jun ‘17 15,400 16,500 32,000 11,100 8,800 19,600 23,300 5,850 9,150 7,700 10,550 9,500 11,150 9,500

Feb ‘18 14,100 13,750 27,750 9,250 8,300 17,300 20,200 4,950 8,050 6,700 9,200 8,550 8,800 8,100

Feb ‘19 11,475 11,700 22,025 8,725 7,300 14,650 16,850 4,625 6,925 6,050 8,375 7,900 7,725 7,100

Feb ‘20 9,400 9,850 17,300 7,575 6,325 12,375 13,500 3,900 5,925 5,225 7,275 6,925 6,625 6,075

IMPORTED CARS Acura TLX Base 2.4L 4D Sdn BMW 3-Series 328i 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata SE 4D Sedan 2.4 Lexus ES 350 4D Luxury Sedan Mitsubishi Lancer ES 4D Sedan Nissan Altima base 4D Sedan Nissan Sentra S 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Nissan Altima S 4D Sedan 2.5 BMW 7-Series 750i 4D Sedan Mercedes-Benz E-Class E350 4D Luxury Sedan

Feb ‘17 22,300 26,750 16,650 11,900 29,400 9,400 12,050 10,150 13,750 12,000 15,050 12,350 72,800 35,350

Jun ‘17 21,550 22,500 15,500 11,600 28,900 9,750 12,100 9,950 13,150 11,400 15,000 12,550 60,500 34,400

Feb ‘18 18,600 19,500 13,500 10,550 25,800 8,500 10,700 9,050 12,000 10,500 12,600 11,150 52,250 28,800

Feb ‘19 16,400 16,950 12,000 9,400 21,525 7,350 9,550 8,075 11,200 9,650 9,975 10,000 42,075 24,425

Feb ‘20 14,250 14,325 10,350 8,200 18,125 6,050 8,250 6,925 9,850 8,575 8,450 8,600 33,075 20,000

TRUCKS BMW X3 XDrive28i 4D SAV Cadillac SRX Luxury 4D SUV AWD Chevrolet Equinox LS 4D SUV FWD Chevrolet Tahoe LS 4D SUV 4WD Dodge Grand Caravan SE Wagon Ford Edge SEL 4D SUV FWD 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 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 Cadillac Escalade base 4D SUV RWD Ford Escape SE 4D SUV FWD Honda Pilot EX-L 4D SUV w/RES Toyota Tacoma SR5 Double Cab 4X4 V6 Chevrolet Silverado 1500 LT Double Cab

Feb ‘17 24,500 21,750 10,600 27,300 11,400 17,100 21,800 19,900 18,400 14,150 16,300 19,250 27,400 11,950 19,625 21,200 25,600 34,000 11,650 24,450 24,700 22,000

Jun ‘17 21,000 20,950 10,450 25,000 11,400 16,250 21,100 19,200 17,800 13,150 15,050 18,550 27,150 10,650 18,125 21,000 26,050 31,700 11,250 22,700 24,450 22,300

Feb ‘18 18,400 18,250 9,700 23,500 9,800 14,150 18,950 17,300 16,700 12,450 12,500 16,500 26,000 9,500 16,250 19,800 24,000 28,300 10,350 20,425 22,775 19,500

Feb ‘19 15,850 17,075 8,375 20,500 7,800 12,225 17,025 15,875 15,425 11,275 11,200 14,825 24,500 8,350 14,650 18,425 21,400 24,450 9,050 17,975 21,300 18,125

Feb ‘20 13,400 15,750 7,100 17,550 6,275 10,500 14,575 14,025 13,200 10,200 9,625 12,875 23,125 7,100 12,600 16,950 18,700 21,425 7,550 15,750 19,850 16,725

TRUCKS BMW X3 XDrive28i 4D SAV Cadillac SRX Luxury 4D SUV AWD Chevrolet Equinox LS 4D SUV FWD Chevrolet Tahoe LS 4D SUV 4WD Dodge Grand Caravan SE Wagon Ford Edge SEL 4D SUV FWD 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 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 Cadillac Escalade base 4D SUV RWD Ford Escape SE 4D SUV FWD Chevrolet Silverado 1500 LT Double Cab Honda Pilot EX-L 4D SUV FWD w/RES Toyota Tacoma SR5 Double Cab 4WD V6

Feb ‘17 31,500 28,600 15,250 38,000 15,000 21,500 26,600 22,500 21,800 17,500 21,500 22,800 31,100 14,550 26,600 24,100 30,500 57,500 15,600 25,500 31,000 29,325

Jun ‘17 26,850 29,000 14,450 35,500 14,800 21,850 25,400 23,000 21,500 17,050 19,450 22,950 30,550 13,500 26,175 25,000 30,200 54,500 14,100 25,500 30,400 28,775

Feb ‘18 24,250 24,300 13,150 33,000 13,100 20,450 24,800 21,000 20,500 16,400 17,700 21,400 29,400 12,400 24,225 22,000 28,400 49,300 13,500 23,500 27,900 27,350

Feb ‘19 21,175 22,850 11,375 29,425 10,975 17,325 22,050 19,225 18,250 14,725 15,075 19,850 27,450 10,900 21,075 21,750 26,125 43,400 11,875 22,525 24,825 25,725

Feb ‘20 18,200 21,050 9,725 26,050 8,975 14,975 19,075 17,675 16,300 13,325 13,000 17,750 25,950 9,450 18,175 20,075 23,375 37,425 10,075 20,750 21,925 23,975

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The Federal Trade Commission has announced final amendments to its Disclosure Rule and Pre-Sale Availabilit Rule to give efect to the E-Warranty Act.

Under the Magnuson-Moss Warranty Act the FTC promulg

Used Car News introduces a new site for its readers, Carpliancecenter.com. This site offers the latest developments on legislation, regulation and other compliance issues. It features articles from both our staff and leading industry attorneys. With compliance a bigger issue than ever for the the used-car industry, Carpliancecenter.com is designed to help you navigate through this risky area.

14 • February 19, 2018

USED CAR NEWS

DISCONNECTED JOTTINGS FROM My wife has been keeping something from me. She normally shops for stuf we use at home – you know, the utilitarian things that make a house tick and you don’t give them a second thought.

The thing she’s been keeping a secret is the cost of printer ink.

Having attempted to print something (which I probably didn’t need to in the irst place) and being presented with an emaciated ghost of the image intended, I announced that, as I was going to Costco, I would pick up a new cartridge. Well, four.

So of I toddle expecting to throw this set of ink cartridges into the cart along with the toilet paper and paper towels, pork chops and pineapple juice. But wait – ink cartridges have an aisle all to themselves! In Costco, that’s a half a mile long. Most of them relate to Hewlett Packard machinery.

You know that expression about how many pills Carter’s has? The new one should go, “It’s got more

TONY MOORBY

thingumabobs than Hewlett Packard’s got printers.”

At various points along this never-ending avenue of prepackaged plastic product are stations with lipchart catalogues the size of Encyclopedia Britannica.

These enable you to decode which of these identical-looking parcels will it your needs assuming, of course, you know the make, model, serial number and keyword that alludes to that ink-guzzling monstrosity that sits so innocently in your home oice.

Having whiled away a half an hour, cross referencing and decoding something akin to the Da Vinci thing, feeling smug and smart you start looking for the package depicting the number elicited by your sleuthing skills.

It’s at this point that the store supplies a forklift to reelevate your jaw to its true and proper position within your physiognomy as you try to reattach your eyes to their sockets. The cause of this unbelieving facial dis-

tortion? The price. Stephen King couldn’t come up with anything scarier.

Of course they try to make things look like good value for money by encasing these miniscule containers in a fabulous, huge, plastic sarcophagus it for Tutankhamen. To add injury to insult, the cartridges look as though they contain less ink than there is ketchup in a Heinz sachet at McDonald’s!

Remember the great shaving debacle? Buy a fancy shaver for next to nothing then take out a small business loan to buy a pack of ten blades. Now we’re back to the throw-aways for cheap.

Hewlett Packard sells their printers for a song, gets you hooked because they come preloaded with their ink cartridges and they make their fortune on the back end.

If car dealers did anything like this they’d be strung up. Maybe the CFPB should mean the Computer Financial Protection Bureau. They would actually have something meaningful to do.

In the meantime, the printer companies sound like drug manufacturers, insisting that research and development is responsible for high street price gouging. Apparently they spend unmitigated fortunes on specialty ink substances and delivery designs to keep up with competition.

If they spent some of that money on a printer that delivered a reliable performance, housing ink storage capacity suicient to last beyond that “I only just bought some” period, they’d sell out

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. Ford F-150 _____ 4. They are designed to keep the noise down 11. Engine cylinder 12. Company with a trident emblem 13. Kia minivan 15. Buy alternative 17. ‘’The Motor City’’ 19. Football position, for short 21. Car starter 22. Right on!

24. Draped dress 26. Highlight 27. Storm manufacturer, once 31. Mesa’s state 33. Panama, e.g.

35. ____ roof

36. Proximity and speed control system from Mercedes 39. Handful 41. One of the technologies being used in piloting self-driving cars 42. Popular French car 44. Connect 45. Corn section 47. ____ bender 48. Turn over, as an engine Down 1. Nash and AMC brand 2. VW sedan 3. “Flags of ___ Fathers”

tomorrow and blow away the competition and obviate the need for a marketing maze at the store.

In the meantime I’m going to try and organize a dropdown box every time someone goes to print something in my house that says, “Seriously, you really want/need to print this?”

If the answer’s “Yes,” an alarm goes of and a red light starts rotating.

I’m installing a confessional for anyone to ask for forgiveness and absolution for buying ink.

1

5. Increase 6. It’s filled at a station, 2 words 7. Rental car choice 8. Jogged 9. Very small car 10. Versatile wheels, for short 14. BMW system 16. V-8, e.g.

18. Auction action 20. Science deg.

21. Anger 23. It could be front or back 25. Popular Honda 28. Rowboat need 29. Changed, as gears 30. It gives a rear view 32. Compact SUV from Nissan 34. Pro driver 35. Drink for an Indy 500 winner

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IT ADDS UP. ADESA.com/Rewards