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UsedCarNews.com

June 4, 2018

GPS Devices Provide Dealer with Latest Tech

Photo by Jeffrey Bellant GOOD DIRECTIONS: GPS providers like Spireon (above) have boosted their technologies and features to help dealers do more than just locate a repo. Today, high tech devices can do everything from monitor how someone drives to locate a car once it hits an impound lot. By Jeffrey Bellant

Rush - Dated Material

GPS devices are taking dealers in new directions as technology improves and data becomes more accessible. Today, tools that track how a car is driven, as well as where it’s driven are now a value proposition for the consumer, too, said Spireon’s Carla Fitzgerald, chief marketing oicer. “It’s not just a matter of tracking for the purpose of repossessing anymore,” she said. “I think the industry has changed dramatically when it comes to that.” Firms like Spireon, Imetrik and PassTime ofer a variety of options

and tools and some of their representatives have explained what these mean for the industry. Jef Karg, director of marketing for PassTime, said advances in technology across a dealer’s business make integration of these tools more important than ever. “It’s about making things easier on the dealers and inance companies using our products,” Karg said. “We continue to invest in web service functionality.” PassTime most recently has partnered with Megasys – which provides loan-servicing systems. PassTime now has about a dozen integrated partners to help dealers

utilize PassTime devices with their systems. It helps dealers skip the double entries and helps the DMS automatically sync up with the device. “Then, dealers can often utilize their DMS systems to perform some of the functions of the PassTime device itself,” Karg said. Overall, devices are becoming smaller, quicker, more eicient and less expensive as technology grows, Karg said. One big addition for PassTime is its Trax 6 GPS tracking device, which is a irst in the industry for LTE Category M network. This is a “machine to machine”

technology. “It’s the newest iteration of LTE,” Karg said. “We’re the irst one to be on that network. “The big thing for customers is network longevity.” Chris Desnoyers, director of business development, for Imetrik, said changes in technology standards along with regulations are issues Imetrik is addressing. The bulk of Imetrik’s customers are banks and inance companies. As some competitors struggle with the transition from CDMA to 4G or LTE, Imetrik is getting ahead of the game, Desnoyers said. Continued on page 8

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USED CAR NEWS

June 4, 2018 • 3

NIADA Mourns Loss of Regional Vice President Dealer William “Billy” Leon Graham Sr., a regional vice president with the National Independent Automobile Dealers Association, died May 10. He was 61, 10 days shy of his 62nd birthday. “To say we are crushed by this news is an understatement,” N I A D A CEO Steve Jordan said. “Billy was a dear friend and conidant and was widely loved in our industry. “He was always upbeat and positive, and what I truly appreciated most about Billy was his selless, servant approach to leadership. He was always asking what more he could do to help or serve. He will be missed, and will always be remembered.” Graham, owner and operator of Graham Auto Sales in Loganville, Ga., previously held numerous oices in the

Georgia IADA, including two terms as president. He was also the state’s Quality Dealer of the Year in 2015. He was recently featured in an ad for NextGear Capital. Graham was born in Atlanta and lived for the past 30-plus years in Loganville. He worked for several auto dealerships as sales and F&I manager before opening his own independent dealership in 1994. Graham was a secondgeneration car dealer who started selling cars in high school. “Being a second-generation dealer, I saw my dad spend all his time at the dealership and he didn’t really see his kids grow up,” Graham said in 2016. “I didn’t want to make the same mistake. I wanted to see my kids grow up.”

“He was always upbeat and positive.” -Steve Jordan

That led him to open his own store. “Billy touched the hearts of many people in a way no one else could,” GIADA executive director Paul John said. “He was a great and humble man and he deeply loved and cared about his family, wife Cindy and friends. “Over the course of many years, Billy gave much of his time to GIADA and gave back to an industry he deeply loved. He will be remembered through the hearts and souls of those who had the chance to meet him.” Graham was also an award-winning powerlifter in his spare time. “The great thing about powerlifting is you can compete at any age,” he said in 2016. In 2010, he qualiied to compete at an event in Trnava, Slovakia. He earned a bronze medal in the open class, which is against all ages. The gold medal winner

was in his 20s. Shortly after that victory, Graham sufered a personal setback. He had been diagnosed with transitional cell carcinoma and doctors had to remove his right eye. “The toughest part for me was the mental part, not the

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physical part,” Graham said at the time. In lieu of lowers, memorial donations may be made to the Cancer Research Institute. Used Car News staf writer Jefrey Bellant contributed to this story.


4 • June 4, 2018

USED CAR NEWS

NEWS BRIEFS Credit Acceptance Adds Warehouse Lender

as its provider of inventory management, online marketing and online Credit Acceptance Co. has added selling applications. AutoNation now hosts weekly a new lender to one of its revolving live and digital auctions in Atlanta, secured warehouse facilities. As a result, Credit Acceptance Houston, Orlando and Los Angeles. increased the amount of the facility to $250 million from $100 mil- PassTime Partners with Megasys PassTime and Megasys announced lion. There were no other material the companies have completed a changes to the terms of the facility. As of May 10, Credit Acceptance software integration project. With the new integration project did not have a balance outstanding complete, customers will be able under the facility. manage their PassTime GPS products using the Megasys Omega origiDriveTime Opens Recon Center DriveTime announced the open- nations and servicing system. This ing of a new inspection center for will streamline the process of setthe reconditioning and preparation ting up new accounts and performing many of the PassTime system of vehicles for sale in Philadelphia. Situated on approximately 25 acres functions from one system. Clients will be able to manage an with over 13 acres of vehicle storage, asset directly within the Megasys this new 110,000-square-feet center is located in Morrisville, Penn., at Originations and Servicing systems. The real-time integration allows 1381 S. Pennsylvania Ave. The facility is a relocation from customers to perform several PassDriveTime’s previous Delanco, N.J., Time functions including location, enable/disable and notiication sersite. vices.

in April. Edmunds forecasts that 1,565,683 new cars and trucks will be sold in the U.S. in May for an estimated seasonally adjusted annual rate (SAAR) of 16.7 million. This relects a 16 percent increase in sales from April 2018 and a 3.5 percent increase from May 2017.

AutoNation Taps Auction Edge

CarMax, Inc celebrated the opening of the company’s irst store in Jensen Beach and 18th store in the state of Florida. The Jensen Beach store is located at 3410 NW Main Avenue and has the capacity to stock approximately

Used Car Sales Slow

AutoNation completed the roll out Used car sales were expected to of its auto auction wholesale network from coast to coast with the decline in May. Edmunds estimates that 3.4 milgrand opening of its fourth location lion used vehicles will be sold in in Atlanta on May 17. AutoNation chose Auction Edge May. That is down from 3.5 million

200 used vehicles. In celebration of the Jensen Beach store opening, CarMax and The CarMax Foundation awarded $7,500 in donations and grants to the Hibiscus Children’s Center. The donations for this organization came at the recommendation of the Jensen Beach CarMax associates who also recently volunteered with House of Hope. Newer Cars Grow Safer These volunteer events are the irst Older vehicles are more danger- of many the team plans to particious than newer ones, according to pate in as a part of the Jensen Beach data from the National Highway community for many years to come. Traic Safety Administration. NHTSA’s analysis looked at fatal Autotrader, Kelley Partner with crashes involving passenger cars, LendingTree SUVs, and pickup trucks last year. Autotrader and Kelley Blue Book The data showed that a greater pro- have teamed with LendingTree’s portion of deaths among passengers auto inance marketplace. in fatal crashes occurred within oldShoppers can visit a special secer model year vehicles, compared to tion of both irms’ websites to get a new model year vehicles. free online loan request, compare As vehicle safety improvements competitive rates and payment become more widespread, this trend terms from multiple lenders and use is expected to continue. an auto inance calculator.

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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 Editorial: Ted Craig, Managing Editor Jeffrey Bellant, Staff Writer Contributing Writers: Ed Fitzgerald, Radiance Cooper Advertising: Shannon Colby, Account Manager Marie Hingst, Account Manager Emily Brown Baker, Sales Support

Columnist: Tony Moorby Circulation: subs@usedcarnews.com Production: Tom Savage, Production Manager Cee Lippens, Web Master

Vol. 24 • No. 5 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

June 4, 2018 • 5

Charity Teams with Auctions

PITCHING IN: Dave Stynchula, founder of the Stynchula Foundation, second from right, poses with, from left: Will Robbins of GHN Leasing; Chris Greene of Byers Chevy; and Bruce Pauley of Pauley Motor Co. By Radiance Cooper

diagnosed with autism. Stynchula began developing workshops for the children to learn about diferent sports and life skills. “It started with golf, football and cheerleading camps for the kids,” Stynchula said. “Athletes come to teach the kids.” This expanded to developing life skills, such as becoming more integrated with society. Stynchula said the foundation has been able to raise roughly $300,000 to $450,000. Looking forward, Stynchula wants to create a peer education center, integrate the arts and gain more partners.

The Stynchula Foundation, a charity that works with special needs children and young adults, has partnered with auctions in Columbus, Ohio to raise money for its autism programs. Founder Dave Stynchula said dealers and wholesalers donate to the foundation a percentage of every vehicle sold at the auction. “(The dealers) donate $5 for each car sold and (it adds up to) around $5,000 to $55,000,” Stynchula said. Stynchula created the foundation in 2000 after crossing paths with a family whose 18-month-old son was

Car-Mart Sees Improved Results America’s Car-Mart Inc. reported net earnings of $10.2 million for the quarter ended April 30. Revenues were $169 million, compared to $153 million for the prior year quarter. Retail unit sales increased to 13,082 from 12,126 for the prior year period with improved productivity at 31.1 retail units sold per store per month, up from 29.1 for the prior year period. For Cars, Trucks and Vans

Average retail sales price increased $268 to $10,922. Gross proit margin percentage decreased to 40.6 percent from 41.5 percent for the prior year quarter. Collections as a percentage of average inance receivables increased to 15.8 percent from 15.6 percent for the prior year quarter. The weighted average contract term remained lat at 32.5 months compared to the prior year quarter.

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6 • June 4, 2018

USED CAR NEWS

Court Convicts Man Who Shot Car Dealer, Five Others

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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. 2

The Jaguar word mark, the Jaguar logo, and Jaguar Financial Group are trademarks of Jaguar Land Rover Limited and any use by JPMorgan Chase Bank, N.A. (“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. 3

The tradename "Mazda Capital Services" as well as the Mazda and Mazda Capital Services logos are owned by Mazda Motor Corporation or its ailiates and are licensed to JPMorgan Chase Bank, N.A.(“Chase”). Retail/Loan and lease accounts are owned by Chase. Dealer communication only; not intended for retail purchaser. Neither JPMorgan Chase Bank, N.A. nor any of its ailiates are ailiated with ADESA, Inc. or Manheim, Inc. © 2018 JPMorgan Chase Bank, N.A. Member FDIC.

WILMINGTON, Del. (AP) – A man was convicted of attempted manslaughter in the shooting of a used-car dealer in Delaware. Radee Prince is also accused of shooting ive co-workers at a granite company in Maryland. A New Castle County jury found Prince guilty of attempted manslaughter, reckless endangering, resisting arrest, carrying a concealed weapon and two counts of possession of a irearm during commission of a felony. Prince had been charged with attempted murder in the October shooting of Wilmington dealer Jason Baul, owner of Baul’s Auto Center, but the jury opted to convict him on the lesser charge of attempted manslaughter. Prince testiied that he feared Baul, with whom he had several run-ins, and said the shooting was in self-defense. A judge set an Aug. 31 sentencing date for Prince, who faces at least eight years in prison and a maximum of 89 years behind bars. Three of Prince’s co-workers were mortally wounded in the Oct. 18 shooting at Advanced Granite Solutions in Harford County, Md., before Prince drove to a used-car lot in Wilmington and shot Baul. He was captured in Delaware after a 10-hour manhunt. Prince will be tried later in Mary-

land on charges including three counts of irst-degree murder and two counts of attempted murder. Prince has an extensive criminal record that includes 42 arrests and 15 felony convictions in Delaware. He was charged with ofensive touching in 2014 after putting a coworker in a chokehold, but that case was dismissed. In 2016, he was arrested for allegedly assaulting Baul, but those charges were dropped. Authorities have not said how Prince, who was prohibited from having a gun, obtained the .380 caliber pistol believed to be used in the shootings. The shooting rampage set of an intense manhunt along the Interstate 95 Northeast corridor, with the FBI assisting state and local authorities. Prince was arrested in Glasgow, 20 miles southwest of Wilmington, after a tip led authorities to his vehicle. He was spotted nearby and discarded a handgun when he saw police had recognized him. He was captured after a brief foot pursuit. Prince was tried irst in the state where he was arrested, in part because Delaware criminal sentencing law does not provide for parole, so a sentence there would have more certainty, authorities in both states said.

IADA Backs New Law to Halt Title Washing of Rebuilt Cars By Ted Craig

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Mississippi dealers will no longer have to compete against those selling salvage vehicles with washed titles. A new law goes into efect July 1 that closes a loophole that allowed this practice. The Mississippi Independent Automobile Dealers had been pushing for this law for several years, said executive director Andrew Caldecott. “It’s been a problem in the state for quite some time,” Caldecott said. Under the old law, rebuilders were able to take salvage vehicles, rebuild them and then take them to the state’s Department of Public Safety for inspection. As long as the DPS determined no stolen parts were used in the rebuilding, it issues a clean title. This created a problem for consumers because they were buying salvage vehicles unaware. And it created a problem for dealers be-

cause the cars they bought at traditional auctions were competing against those bought at salvage auctions for much lower prices. Caldecott said the new law drew support from the state’s attorneygeneral, the DPS and other groups. Many rebuilders opposed it, he said, some of whom had set up shop in Mississippi just to take advantage of the law. Rebuilt cars can still be sold in the state, but now they carry titles marked “previous salvage” and other such brands. Consumers can buy the cars for everyday use and there are insurance companies that will cover them, Caldecott said. The change has been welcome not just by the Mississippi IADA, but dealers in the neighboring states. In its monthly magazine, the Texas IADA stated, “Thanks to SB 2277, there is one less state in which an unscrupulous seller can obtain a clear title to such a vehicle.”


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“We’re already on GSM (global system for mobile communication), on 2.5 G, so we can focus on other stuf rather than just catching up with technology.” Desnoyers said keeping up with laws and regulation are critical in this environment A new regulation on privacy and data – called GDPR (General Data Protection Regulation) –implemented May 25 across Europe not only afects companies there, he said. The regulation has to do with data breaches and data collection, Desnoyers said. “Its something we’ve been working on for the last year or so – making sure data is secure and privacy is secure,” Desnoyers said. What helps Imetrik is that it doesn’t have to rely on outside irms. “We’re an engineering irm, so we develop everything in-house,” Desnoyers said. “We do the hardware and irmware. We have our own (telecommunications license) so we’re like Virgin Mobile. “We’re a one-stop shop. There’s no inger-pointing.” Since Imetrik has its own cellular network, it doesn’t have to negotiate with a Verizon or T-Mobile.

Also, the amount of data that Imperil has allows it do ofer dealers all sorts of tools. It’s an issue that Spireon also looks at. It handles a lot of franchise and large dealership groups where tracking inventory is a big concern, more than repossessions. Tracking vehicles on diferent lots, those that are in the shop, on test drives or inding stolen inventory used to be diicult. Fitzgerald said now GPS can track things like battery status, how a car is driven – whether it is speeding – and other things. Brian Deeley is senior director of product management for Spireon’s Goldstar product line, which focuses on the buy-here, pay-here space. One Goldstar feature has preloaded thousands of impound lots to help track down a lost vehicle. “It’s one of those features that really shines,” said Deeley. “It was introduced earlier this year. It takes tracking and GPS to the next level.” The curated database has more than 10,000 tow/impound lots throughout the U.S. “It detects when a vehicle goes into a lot and how long it’s been in that lot,” Deeley said. “That can cost hundreds of dollars a day, depending on the state.”


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RETAIL MARKETS PENNSYLVANIA Bert Straub, owner, First Choice Auto, Fairview, Pa.: “We’re celebrating three years in business. Before that I was the market area manager for Credit Acceptance Corp. in this part of the state. “It was an easy transition, knowing the subprime market. “I loved the product Credit Acceptance had. I use them faithfully here. “We’re members of the Pennsylvania Independent Automobile Dealers Association. We got (training through the association). Our irst audit, six months into the business, went well. For new dealers, the state audits you in the irst six months. “The auditor actually told my wife, ‘You’ve never been in the car business, but you’re doing this better than most.’ “I have one location. I have about 15 vehicles in inventory.

“We try to buy our cars of the street, which is diicult. We also use the auctions. We use Greater Erie Auto Auction and Corry Auto Dealers Exchange, which are both local. “We sell about 12 to 15 a month. “We’re on a 27-day turn so we’re pretty tight. “If I’m being completely transparent, I think that 27-30-day turn hurts me slightly since I’m not stocking enough cars. “I’d think I’d be better with 25 cars. “I don’t currently have a service department. Since I have to outsource my detail and service work, it really dictates how fast I can get something in and out of here. I tend to be a little leery of buying that car that needs a little work because I know that I’m at the mercy of a service garage, especially if it’s sitting for 10 days. “Average recon costs are about $780. “The actual cash value of our inventory has jumped

about $1,500. We’re carrying a much newer, lowermileage car. I believe that putting a better car on the road is squeezing my margins a bit. But I believe it helps me on my loss ratio and portfolio proits down the road. “We’re probably 65 percent subprime. “My average retail price is $10,000. “Average model year is 2008 and average mileage is 110,000. Miles don’t really concern me, though. I have a one-owner, 2008 Denali out here with 145,000 miles. It’s in absolutely brand-new condition and people are dying to have it. “We are heavy in trucks and SUVs now. I would say it’s 75 percent trucks and SUVs, 25 percent cars. “I stay mostly with domestics. “For advertising, we’re strong on Facebook. We do Google AdWords. It’s the social media that we probably push the majority of our stuf, whether it’s You-

$ Tube, Instagram or Twitter. Hands down, Facebook is just crushing it. “We recently sold a 2011 Ford Escape. It was a leet/ lease car. It was a one-owner vehicle. Mileage was 78,846. We sold it for $9,250.”

TEXAS Vicki Davis, owner, A-OK Auto Sales, Porter, Texas: “We have one location, about 30 miles north of Houston. “I’ve been in business for 26 years. “Typically, we keep between 40 to 50 cars on the lot. That’s pretty much the same as last year. I (acquire) our vehicles from auctions. “I sell about 20 per month – 20 to 25. Business is of a little bit for us compared to last year. “I know new-car sales are of because there are just not as many cars at the auction. They are way of. “We’re all buy-here, payhere “Our average down pay-

$

USED CAR NEWS

Compiled by Jeffrey Bellant ment is about $1,200. Average term length is about 28 months. We use GPS to locate the car in the case of a repo. “Average retail price on the lot is probably $8,995. “Our average model year is probably a 2008. Mileage is probably 120,000. We usually stay under 150,000 miles. We have gone over, but not very often. “We mostly carry cars and SUVs. We have a few trucks, but we can‘t aford too many. “We’re probably 95 percent domestic. “Average reconditioning cost is $1,000. We do that work in-house. We have eight bays. We only do inhouse service. “(For advertising) we mostly do social media. We use our website, Facebook and Instagram. “We just sold a 2012 Chevy Equinox for $12,995. It had 130,000 miles.”


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12 • June 4, 2018

USED CAR NEWS

WHOLESALE MARKETS Compiled by Jeffrey Bellant IDAHO Russ Smith, president and general manager, Dealers Auto Auction of Idaho, Nampa, Idaho: “We’ve been in business 17 years. We opened in April 2001. I built it from the ground up. “We have four physical lanes, with double blocks in all of them. So we actually have eight selling blocks through four lanes. We’re currently running ive blocks. “We have also inished a state-of-the-art three-lane detail facility and another 2,000-square-foot mechanics shop and lift area. “Our volume is up. We’re up about 10 percent yearover-year. We’re running anywhere from 450 to 550 each week. First, I’ve got one of the hardest working sales stafs in the Valley. They’ve just got a lot of experience. “The other thing (that’s boosted sales) is going to the double blocks. It reduces the stretch that a buyer has to try and run around and see

all the cars. A buyer can actually stand in one spot and bid on four lanes of cars at one time. “So we’ve gone from about 200 buyers to 250 per week. “We average about 60 online buyers each week through Auction Edge. “The retail market has been very strong. April was a record year for a lot of dealers here. May started of slow, but the guys I’ve talked to in recent weeks say their numbers are right back on target. “We’ve also added an RV sale. We now run about 40 to 50 bank RVs every other week (irst and third week). That’s added to the bottom line. It’s been great. We sell 95 percent of that stuf. “In the general sale, we’re selling about 60 percent. “(Our volume) is probably 65-70 percent dealer consignment and 30 percent leet-lease. Credit unions have gotten really aggressive in our market. We run for the two largest credit unions in the market. For example,

Idaho Central Credit Union probably has more car loans than most of the bigger banks combined. “Our average sale price is about $9,800. We’re getting more lease returns and selling a nicer car. “Tom Stewart and AMS have opened doors for us that would’ve taken years to crack on our own.” “We still do GSA sales. We are the remote site for the GSA sales from Guam, Hawaii and Alaska. We haven’t yet seen GSA cars this year, but we should run about 800 this year. “About every month, we run a public sale for various municipalities and federal agencies like Fish & Game. “We just landed the Idaho Power public sale, which is the largest utility in the state. We do all the remarketing for their trucks and equipment. That’s twice a year. “We’re already up at a time when we haven’t had the GSA sales to back us. I think 2018 is going to be a record year for us.”

OKLAHOMA Kyle Clopton, director of sales, Oklahoma Auto Exchange, Oklahoma City: “We are going into our 14th year. “We are running four lanes, with probably 650 and 700 vehicles per week. We are at capacity. “Our numbers – from a consignment standpoint – are about the same as they were last year. But the sold numbers are up about 10 percent over 2017 at this point. If we can get the cars in lanes, they will sell. That’s for sure. “The economy in Oklahoma has gotten better. We’re based on oil and natural gas so when those prices start to tick up, that means a lot of people are employed and have better paying jobs. That’s good for everyone in the state, especially the car market. “We have about 350 buyers that come every week. “This year got the LeasePlan Outstanding Performance award for the third

time in the last four years. It’s a really competitive region, so we couldn’t be more proud or excited to be honored with that. “We also sell for Lobel Financial and Tinker Credit Union. And we have large buy-here, pay-here consignors. “We (run) about 70 percent dealer trades and 30 percent repo/leet/lease. When my dad started the business, he wanted all the local guys to have a good place to send their trades. That’s been our niche. But we do a pretty good job with the leet/lease/rep that we do have. “It’s good for us to have a personal relationship with consignors. We want to know what they are in the market for, as well as what they’re selling. So it’s not just about them coming out to sell vehicles but also possibly picking up a couple to buy as well. “Our average sale price is $5,000. Trucks and SUVs are extremely hot.”


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14 • June 4, 2018

USED CAR NEWS

DISCONNECTED JOTTINGS FROM It’s been a good few years since I was actively involved in the business on a daily basis but I still maintain a voyeuristic peek through publications, websites, newsletters and so on. My curiosity is constantly fueled by the changes going on – some like a bull at a gate and others a little more nuanced – but all contributing to a vastly diferent world of vehicle distribution from basic wholesaling to sophisticated retailing tactics. Coming from the auction side of the business, I remember the sense and feeling of walking into the lanes on sale-day morning and immediately getting a vibe of what the market was doing there and then. The feeling wasn’t driven by a single event but a conluence of hundreds of little bits of feedback – who’s here, how many, buyers or sellers, the weather, the look on familiar faces, are there any new ones? The available inventory contributed to the overall

TONY MOORBY

sense of livelihood. Were dealers letting go at reasonable prices or hanging on for a swing in the market? Were buyers stepping forward eagerly to outbid their competition? One day could be vastly diferent from the next, as could an auction a hundred miles away. Local sentiment was openly at the forefront in the ultimate expression of the immediate free market. The big stock exchanges were just the same – the clamor and excitement one day, the searching for bidders the next. A number of years ago I wrote about the growth of predictive inventory acquisition and it’s grown to the extent that the days of the old-time wholesaler are probably destined to go the way of the internal combustion engine – only faster. The folks that hawked their wares from one dealership to another, hoping to land a deal and pick up a trade or two to go on and do

it again, are getting as rare as hens’ teeth. They used to be the eyes and ears of the trade – the jungle drums keeping everyone within the sound of the beat. And a good man (or lady) could underpin a deal on the dealer’s doorstep for a set price and the dealer could inalize a deal, while the wholesaler was pitching his knowledge and his reputation against the rest of the market. It all sounds a bit looseygoosey these days but the network hung together like a spider’s web – staying strong so long as no one picked it apart. The international stock markets now do millions of deals in nanoseconds and while this eiciency is to be admired, one has to ask at what point does predictability not follow reality. It’s happened and expensive runs and losses in the hundreds of millions have been the result almost before anyone has looked up from their

computer screen. Dealers can now rely on similar software, not just to predict what cars they’ll need and when but the information gets overlaid into all kinds of other databases they are provided an ongoing stream desirable cars and the reach gets ever further out. Even lease portfolios are now committed to pre-sales before their maturity dates. One question remains; are these residual values realistic when the stock inally becomes available?

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 • IARA Circle of Excellence

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. Mini model 4. Compact Mitsubishi 9. “Awesome!” 10. Baseball stat 12. Dodge Ram ____ 13. Mercury Villager ____ 14. __ display 15. Conidentiality agreement, for short 16. Maxima maker 18. Honda SUV 21. Hyundai sedan 23. Maker of Spider roadsters, 2 words 26. Hyundai’s luxury sedan 27. Pump 28. Nonverbal agreement

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We’ve seen those gaps before causing a rush to acquire when undervalued and gluts with dropping prices at the opposite end. It’s then that we need the lexibility that’s brought by the broader, national market; to bring balance back to pricing and product spread throughout. Shakespeare had a character in The Winter’s Tale called Autolocus listed as “A Snapper-up of Unconsidered Triles.” It’s likely that we’ll always need a few of these.

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Used Car News 06/04/2018  
Used Car News 06/04/2018