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August 6, 2018

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Oldest Auction Celebrates Eight Decades

Rush - Dated Material

Rawls Auto Auction celebrated a milestone May 15, hosting its 80th anniversary sale. The Leesville, S.C., sale was started 80 years ago by J.M. “Martin” Rawls. “The entrepreneurial spirit my father showed starting this auction and instilled in me motivates us to keep looking forward as we continue to innovate and improve our business,” said Jimmy Rawls, the auction’s current owner and general manager. “As we celebrate this historic occasion with great fanfare, it’s inspiring to see a new generation of young managers at our auction perform with great pride to strengthen our legacy.” Martin Rawls spent his adult life in the car business, irst as a Chev-

rolet salesman and then as a usedcar dealer. Martin Rawls also spent a lot of time around cattle auctions. In 1938, he came up with the idea that an auction could work just as well for cars as it does for cattle. Martin Rawls talked his partner, S.L. “Monty” Montgomery into starting just such a venture and they ran their irst sales in March 1938. The auction started at the dealership. It then moved to a one-lane Quonset hut. It grew to two lanes and then four. Today, Rawls Auto Auction runs seven lanes and ofers full mechanic and reconditioning facilities. Last year, the auction upgraded its Auction Edge Simulcast cameras to

high deinition and renovated the lane looring. National Auto Auction Association Executive Director Frank Hackett said Rawls will always be known as the irst auto auction. “They have a great story from the early days,” Hackett said. “If auctions worked for cows, why not cars?” The irst car sold at the auction was a Ford Model A, he said. “The Rawls family have a lot to be proud of, and the members of NAAA are equally as proud to call Rawls Auction Auction the irst auto auction,’ Hackett said. “Jimmy Rawls should be congratulated on keeping a great tradition alive.” The NAAA is celebrating all of its members the week of Aug. 13 during

National Auto Auction Week. The annual event is an opportunity for NAAA members to connect with their local communities. New this year will be the announcement each day of one of the four auctions receiving the Chapter Auction of the Year Award as inalists for the Auction of the Year Award for Excellence in Community Service. The NAAA will also be focusing on safety awareness and accident prevention with the message that auctions are a safe place to work and conduct business. The association ofers an online campaign kit with suggested activities and publicity materials to help plan and promote each auction’s celebration


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USED CAR NEWS

August 6, 2018 • 3

FTC Sweeps Dealers’ Lots to Check Buyers Guides The Federal Trade Commission recently conducted a sweep to see if dealers were complying with updated Buyers Guides required by the Used Car Rule. The FTC, working jointly with 12 partner agencies in seven states, conducted the irst compliance sweep of car dealerships since the amended Used Car Rule took efect earlier this year. The Used Car Rule requires car dealers to post information about each vehicle directly on the windshield. The information provided ranges from a vehicle’s gross weight to disclosures about warranties. It also provides consumers with advice about the sales process, such as get all promises in writing. The compliance sweep was conducted between April and June in 20 cities nationwide. The inspectors found Buyers Guides on 70 percent of the more than 2,300 vehicles inspected, with almost half of those displaying the revised Buyers Guide.

Of the 94 dealerships inspected, 33 had the revised Buyers Guide on more than half of their vehicles, and 14 had revised Buyers Guides on all of their used cars. Following the sweep, the FTC sent letters to each dealership detailing the results of the inspections and providing material to help them come into full compliance with the amended Rule. Over the coming weeks, dealerships that were not displaying the revised Buyers Guide can expect followup inspections to ensure they have brought themselves into compliance with the amended Rule. Under the FTC Act, dealers who fail to comply face penalties of up to $41,484 per violation. State and local law enforcement agencies also enforce the recently amended Rule. One inluential lawmaker wants the guides updated again to include very speciic information. Senate Minority Leader Chuck Schumer, D-N.Y., wants the FTC to add requirements that the sticker

include information about what he calls “a robust lood check.” “In many cases, ethical used car dealers are already performing this kind of check anyway, as part of the inspection process, and all we are saying today is that disclosure of this information should be one of the rules before these cars are able to hit the road,” Schumer said in a release. Schumer’s release says the

call for additional disclosure is driven by the growth of the used-car market and reports that last year’s hurricane damaged more than a half a million vehicles. Schumer’s release claims looded vehicles can be cleaned up for as little as $2,000 and sold to unknowing consumers. It is illegal to sell lood cars without disclosure. Several databases maintain information on all vehicles with po-

tential lood damage. Schumer’s release says that because the FTC’s Buyer’s Guide does not mandate information on potential lood damage, consumers are oftentimes unaware of whether a vehicle was impacted by looding Schumer has sent a letter to the FTC requesting the addition to the rule. The Commission has not responded publicly to Schumer’s letter.


4 • August 6, 2018

USED CAR NEWS

NEWS BRIEFS Carvana Adds Vending Machine

two rating agencies. In the transaction, qualiied institutional buyers purchased $230.3 million of asset-backed notes secured by $239.9 million in automobile receivables originated by CPS. The sold notes, issued by CPS Auto Receivables Trust 2018-C, consist of ive classes. Ratings of the notes were provided by Standard & Poor’s and DBRS, and were based on the structure of the transaction, the historical performance of similar receivables and CPS’s experience as a servicer. The weighted average coupon on the notes is approximately 4.18 percent.

Carvana has launched its 13th car vending machine, located in Cleveland. This is the irst car vending machine in Ohio. Standing eight stories tall, it can hold up to 30 vehicles. Located at 4070 Interchange Corporate Center Road in Warrensville Heights, the Cleveland car vending machine is open Monday through Saturday from 9 a.m. to 7 p.m. Vehicle pickup at any of Carvana’s locations is free for its customers. Carvana debuted in Ohio in September 2016, launching in Columbus, the company’s 16th market. Later that year, it moved into the Cleveland and Cincinnati markets. Carvana also recently expanded in CarLotz Moves into Illinois CarLotz, a Richmond, Va.-based California, moving into the Sacraused-vehicle consignment and remento market. marketing business, will continue its nationwide expansion with the CPS Announces Latest Securitization opening of its irst store in Illinois. The newest store is located at 2150 Consumer Portfolio Services Inc. announced the closing of its third Ogden Ave. in Downers Grove, a suburb of Chicago. term securitization in 2018. It will be the company’s seventh The transaction is CPS’s 29th senior subordinate securitization and largest retail location. At roughly 30,000 square feet, the since the beginning of 2011 and the twelfth consecutive securitization Chicagoland store will have room to receive a triple “A” rating on the for more than 500 vehicles. The fasenior class of notes from at least cility will also support recondition-

CDK Buys Eleadone CDK Global Inc. has entered into a deinitive agreement to acquire Eleadone. The transaction has been unanimously approved by the CDK Board of Directors. The proposed transaction is subject to customary closing conditions. The value of the transaction was not disclosed.

Dent Wizard Acquires Regional Recon Firm

cludes both auto service brands operating under the company’s LLC: Image Auto, the Syracuse-based provider of mobile reconditioning services, primarily through auto dealerships; and Rim Doctor, a fullservice mobile wheel reinishing and custom coatings shop. The areas serviced by both businesses include Central and Western New York, and Eastern Pennsylvania into Northern Philadelphia. Image Auto’s CEO, Paul J. Daly, who founded the company in 2004, will serve Dent Wizard by working to deepen dealer relationships through outreach marketing and brand building. Image Auto’s management team of Jeremy Kappes, Peter Schultz, and Tyrell Zechin also bring many years of experience to Dent Wizard. In related news, the irm also recently hired Jim Powers as chief inancial oicer. He will report to Dent Wizard CEO Mike Black.

Dent Wizard International recently acquired Image Auto LLC, a provider of auto reconditioning and wheel repair services in the Central and Western New York and Pennsylvania areas. The acquisition inalized June 8. Dent Wizard’s acquisition in-

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ing eforts. CarLotz plans to initially hire 20 full-time team members to work in sales, administration, and reconditioning in this store. Since launching in 2011, CarLotz has opened locations throughout Virginia and North Carolina. Earlier this year, it also opened a Tampa, Fla., location.

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USED CAR NEWS

August 6, 2018 • 5

HyreCar Connects Dealers with Rideshare Services By Radiance Cooper

meet both Uber and Lyft’s guidelines for vehicles that are able to drive on the road.” Joshua said the automobile industry is currently in a transformative state, where more people are looking to lease vehicles versus own vehicles. As a result, vehicle access is underutilized and under monetized. “(HyreCar) allows them to monetize it in multiple ways,” Joshua said. “It allows them to monetize vehicles by getting them used, providing usage and it also allows us to help them provide past ownership as well for people who are leasing vehicles in the long run.” Joshua said HyreCar is also looking forward to several upcoming partnerships, including one with HopSkipDrive, a rideshare service in Denver that focuses on providing transportation for families. “At the end of the day, we are a tech company,” Joshua said “A tech platform that allows us to connect mobility, mobility as a service and that’s really the end goal at the end of the day.

With ridesharing rapidly growing in popularity, a service called HyreCar helps match aspiring drivers with used vehicles through auto dealers. HyreCar facilitates rental transactions between drivers and vehicle owners, allowing drivers access to vehicles that meet company guidelines. The company aims to both help drivers ind vehicles and allow auto dealers to monetize their assets. Chief Communications Oicer Ronjini Joshua said Hyrecar can be a good opportunity to ill the commercial gap and help individuals generate more revenue. “We really help address underemployment, so I think that’s an area that the economy has allowed the opportunity to ill in the gaps for people who are unemployed or want to generate other streams of revenue,” Joshua said. “The second piece is there’s about an estimated 50 percent of people who go onto the ridesharing platforms like Uber and Lyft on a monthly basis, but don’t have qualifying vehicles that

REMARKETING ARTIST OR SCIENTIST?

Manager Steals Inventory The former parts manager at a New York dealership pleaded to stealing more than $200,000 worth of inventory from the store. John Labarbera was sentenced to one year in county jail and has to pay restitution to Curry Acura of Greenburgh, his former employer. Labarbera is required to pay $231,317.26. He has paid $115,658.63 so far. According to the charges, Labarbera convinced management of the dealership to sell automobile parts through eBay. With the consent of For Cars, Trucks and Vans

the dealership, he then set up an account to sell parts on behalf of the dealership. Using this valid account as cover, and without management’s knowledge, Labarbera set up a separate eBay account, which he used to sell parts he stole from the dealership. Over the course of almost four years, Labarbera would steal automobile parts, sell them on eBay, ship the parts to his buyers via Curry Acura’s FedEx Ground account, accept payments via PayPal, and keep the money for himself.

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USED CAR NEWS

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General Motor’s current and former captive inance arms both reported strong results in the second quarter. General Motors Financial Company Inc. announced net income of $442 million for the quarter ended June 30, compared to $62 million for the quarter ended June 30, 2017. Retail loan originations were $6 billion for the quarter, compared to $5.1 billion for the quarter ended March 31 and $5.3 billion for the quarter ended June 30, 2017. The outstanding balance of retail inance receivables was $35.7 billion at June 30. The outstanding balance of commercial inance receivables was $10.7 billion at June 30, compared to $10.4 billion at March 31 and $9.7 billion at June 30, 2017. Retail inance receivables 31-60 days delinquent were 3.3 percent of the portfolio at June 30 and 3.4 percent at June 30, 2017. Accounts more than 60 days delinquent were 1.3 percent of the portfolio at June 30 and 1.5 percent at June 30, 2017. Annualized net charge-ofs were 1.7 percent of average retail inance receivables for the quarters ended June 30, 2018 and 2017. Meanwhile, GM’s former captive arm, Ally Financial Inc., reported the largest year-over-year decline in its retail auto net charge-ofs since its IPO in 2014. The retail auto net charge-of rate declined to 1.04 percent in the sec-

ond quarter. Pre-tax auto income of $382 million was $35 million higher yearover-year. Results relect lower provision for loan losses, partially ofset by higher noninterest expense and lower total net revenue, driven largely by lower other revenue due to loan sale activity in the prior year period. Net inancing revenue was $7 million lower year-over-year due to lease portfolio normalization, partially ofset by higher retail auto yields and portfolio balances. Retail auto portfolio yield increased yearover-year to 6.08 percent. Provision for loan losses was $96 million lower year-over-year, driven by reserve release and a lower retail auto net charge-of rate. Consumer auto originations of $9.6 billion in the quarter included $4.9 billion of used retail volume, $3.4 billion of new retail volume, and $1.2 billion of leases. Total consumer auto originations were up $1 billion year-over-year. End of period auto earning assets decreased $0.5 billion year-overyear to $114.8 billion as growth in the retail auto portfolio was slightly outpaced by declines in operating lease assets and lower loor plan balances. Commercial earning assets of $35.6 billion were $3.2 billion lower year-over-year primarily due to lower dealer inventory levels.

Conference Focuses on Auto Compliance General Media LLC announced the opening of registration for its national compliance conference for automotive dealers. Carpliance is a irst-of-its-kind event hosted by Used Car News, the trusted voice of the auto remarketing industry for more than 20 years. It brings together some of the top legal counsel and other experts in the used-car business. Carpliance is intended to help dealer-principals, chief compliance oicers and other senior personnel at used-car dealerships enhance their compliance programs and better protect their businesses. The Carpliance conference will be held Oct. 22-23, 2018 at the Sheraton Charlotte Hotel in Charlotte, N.C. In-person attendance is limited to 120. The agenda for the conference topics will range from risk assessment to credit applications to collections. Speakers will discuss the latest issues facing dealers, includ-

ing sexual harassment and consumer privacy. “Hosting this conference is one of the key ways we are working to improve compliance in the auto industry,” said Used Car News General Manager, Colleen Fitzgerald. “Dealers today face more regulatory and legal pressure than ever before, with challenges coming from D.C. all the way down to their local city councils. To make sure they avoid costly problems, dealers must educate themselves. Currently, there is no compliance speciic educational event for the auto industry. ” “This conference is a valuable opportunity to engage and build relationships with knowledgeable professionals so that the auto remarketing industry may beneit from their insights as future regulations afecting dealers are legislated,” said Used Car News Publisher, Lynda Thomas. To register and for more information visit carpliancecenter.com.


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8 • August 6, 2018

USED CAR NEWS

Inspector General Says NHTSA Moved Too Slowly DETROIT (AP) – An investigation has found that the U.S. government’s highway safety agency failed to act quickly on a consumer complaint, and that could have delayed recalls of dangerous Takata air bag inlators. A report by the Transportation Department’s Inspector General also found that the National Highway Trafic Safety Administration process for monitoring car and truck recalls isn’t adequate. And the report says the agency isn’t verifying recall completion rates reported by automakers or making sure manufacturers ile proper documents. “Overall, inadequate controls and processes for verifying and collecting manufacturer-reported information have hindered NHTSA’s ability to oversee safety recall implementation,” the inspector general wrote. The safety agency responded with a statement saying that it had taken “unprecedented actions to

ensure public safety is prioritized,” including improvements to search functions on its Takata recall website, and that it continues to improve its processes. Sen. Bill Nelson of Florida, the ranking Democrat on a committee that oversees NHTSA, said the report is cause for the Senate not to conirm Deputy Administrator Heidi King as NHTSA’s leader. “This is further evidence that the federal auto safety regulator isn’t doing enough to protect the public,” Nelson said in a statement to the press. The report is one of at least three in recent years criticizing the agency for its oversight of recalls. Investigations have discovered NHTSA shortcomings in the large recalls involving faulty General Motors small-car ignition switches and unintended acceleration involving Toyota vehicles. A 2011 report by the Government Accountability Oice recommended that NHTSA develop plans to use data collected on recalls to

analyze patterns and trends. That recommendation is still open, according to the inspector general’s report. In the Takata case, the inspector general said that NHTSA managers did not make sure their staf suiciently monitored repairs or the size of recalls before the agency and Takata reached a broad recall agreement in May of 2015. The agency did not act quickly on an August 2013 consumer complaint that indicated the Takata recalls didn’t cover enough vehicles. The inaction “may have

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delayed recalls of afected vehicles,” the report said. Takata uses the chemical ammonium nitrate to create a small explosion and inlate air bags in a crash. But the chemical can deteriorate when exposed to high heat and humidity and burn too fast, blowing apart a metal canister designed to contain the explosion. That can hurl shrapnel into drivers and passengers. At least 23 people have been killed and about 300 injured worldwide because of the problem, which forced Takata into bankruptcy protection.

The inspector general found that NHTSA’s “minimal action” to address low Takata recall completion rates “may have contributed to the slow implementation of these recalls between 2008 and 2015.” The report recommendations include having NHTSA develop a process to monitor reporting of recall repairs, the size of recalls and the risk of the defects. It said the process should include taking “appropriate steps” with manufacturers that don’t obey recall rules, “including enforcement actions when necessary.”


USED CAR NEWS

August 6, 2018 • 9

PEOPLE IN THE NEWS Compiled by Jeffrey Bellant ADESA Names Executive Sales Director ADESA recently named a new sales director, as well as illing the top management positions at two auc-

Rod Thompson tions. ADESA named Rod Thompson as executive sales director. In his new role, Thompson will be responsible for managing ADESA commercial client relationships and leading commercial client eforts for both physical auction and

upstream remarketing services, as well as other related products and services available across the KAR group of companies. Thompson brings more than 30 years of automotive, powersports and auction industry experience to his new role at ADESA. He joined ADESA Tulsa in 2015 as dealer sales and services manager. Thompson spent more than 20 years in the powersports industry working for a major powersports manufacturer. He also worked as sales manager for his family’s Chrysler store. ADESA has named Bobby Sylvester as general manager of ADESA San Diego and Henry Cadle as auction manager of ADESA San Jose. Sylvester moves to ADESA San Diego from ADESA San Jose,

where he has served as general manager since November 2017. Previously, he served as leet-lease manager at ADESA Portland. Sylvester’s auction industry career began in 2000 with management positions in detail and body shops for Brasher’s, before transitioning to roles in leet/lease operations and management positions in national sales. Cadle brings two decades of automotive remarketing industry experience to his new role managing day-today operations at ADESA San Jose. He has previously managed auctions in Florida and California and has an extensive background in sales at all levels of the industry. Most recently, he served as ADESA UVA sales manager. Cadle began his career in the industry as

a branch manager for Automotive Finance Corp. in Bradenton, Fla., in 1998.

Columbus Fair Shakes up Management Team Columbus Fair Auto Auction (CFAA) has named a new director of operations, a new director of dealer sales and a new vice president of leet services. Jef Baerga, formerly director of dealer sales for CFAA, has been named director of operations. Baerga has been with CFAA for four years in a variety of operational roles. Josh Koronich has been named director of dealer sales. Koronich, who was the strategic account manager, has been with CFAA for three years in various sales roles. Annie Wheatley has been promoted to vice president of leet ser-

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vices. Wheatley has the AutoGravity Board served several key roles of Directors as a memwith Columbus Fair ber of the board. Auto Auction in her 28 years of service. In her new position, Wheatley will be responsible for all leet operations and service related activities. All of this movement comes about after former general manager Chuck Dearing’s decision to move into semiretirement. Dearing will take on a sales role within the company, traveling in Alex Mallmann the central Ohio area. Mallmann has 20 AutoGravity Taps CEO years of experience AutoGravity an- in auto inance, most nounced the appoint- recently served as ment of Alex Mall- president and CEO of mann as president and Mercedes-Benz Auto chief executive oicer. Finance China. The announcement Mallmann earned comes as the company his undergraduate adds more than 2 mil- degrees in business lion users in less than administration and two years since its ini- management from the tial product launch. International UniverMallmann also joins sity of Vienna.

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RETAIL MARKETS GEORGIA Andrea Winkles, general manager, M&S Auto Sales, Riverdale, Ga.: “We’ve been in business going on 10 years. We have one main location and then we have a storage lot across the street. It has a whole other oice and lot. We’re using it to store cars. “We keep about 100 in inventory. We’ve got more in stock than this time last year. We (acquire) our cars from Manheim. “Usually July is our slower month, but we’ll do 30 to 40 (deals) per month.” “We do lease-here, payhere. “Our down payment starts at $800 and goes up. We have a pick-your-down-payment program. Every car is marked. You have your total selling price, your down payment and your weekly payment. The customer picks. We’ve got some cars with $6,000 down payments. “We don’t like to do anything over four years. Usu-

ally, you’re looking at a twoyear term. We allow them 20,000 miles per year. “We’ll have vehicles from 1996 to a 2017. With our customer, they really don’t care about miles. If it’s a Lexus they don’t care about (high) miles. The bulk of the vehicles are about 150,000 miles. “Most of our vehicles are 2008 and up. We also have a variety of cars and trucks. A lot of drivers like the gassavers. “We have a mix of imports and domestics, but we have a lot of Lexuses on our lot now. It varies.”

NEW YORK Dan Johnson, owner, LiteHouse Auto, Lakewood, N.Y.: “I’ve been here 15 years and I’ve owned it the last ive years. We are in Western New York, south of Buffalo. “I keep about 45 to 50 in inventory. Most of them come from auctions. We also resell a few trade-ins.

Mostly I go to the independents: Corry Auto Dealers Exchange and Greater Erie Auto Auction (both in Pennsylvania). “We sell about 35 per month. That stays pretty consistent year after year. We used to carry closer to 30 to 35 with the previous owner. But after I bought him out, we (increased) the inventory a little. “We ofer subprime. We’re set up with Wells Fargo and they’ll buy pretty deep from us. We’ll also use Credit Acceptance. “Of the top of my head, I’d say subprime is probably 40 percent. It used to be about 25 percent. “We carry a lot of corporate lease vehicles. So a lot of the inventory is one-, two- and three-years-old. Most are 80,000 to 100,000 miles. “We have to be much more careful with what we’re buying. Quality inventory is deinitely harder to ind. I used to be able to just go to the Corry auction

$ and buy my entire inventory. Now I split that up with Erie. We also do a little bit with Manheim and ADESA, but the bulk is with the independents. “We try to carry a mix of everything. I would say 40 percent is cars, 40 percent is SUVs, with the other 20 percent being vans and trucks. It’s about the same as it has always been. “Inventory is about 90 percent domestic. “Our average recon is around $450. For summertime, that’s pretty normal. We farm that out. We’ve always done that. “The next phase of growth for us would be to have a repair facility. We have to save our nickels and dimes for that. We would do outside service as well. “We have a website and we do Facebook ads. We do a little bit of radio and local print ads. The local pennysaver is still very efective for us. “We also sponsor community groups. There is a lo-

$

USED CAR NEWS

Compiled by Jeffrey Bellant cal Christian private school that we sponsor heavily. We also rotate among some summer soccer leagues, the local soup kitchen, etc. We try to help diferent groups at diferent times. We don’t just focus on one or two. It builds good faith in the community. It’s not just about selling cars. “The local economy is struggling. There used to be a furniture industry in the area many years ago. We have a Cummins engine plant and that helps. There are a few factories here and those jobs are the best jobs. “We just sold a 2017 GMC Sierra 1500. That had 17,000 miles, I think. We got $19,700. “It seems like the last couple of years have gotten harder and harder to get each deal done. Our frontend grosses have taken a hit. I’m expecting that trend to continue and we’re preparing for that. So I’m combing through our budget and looking where we can trim back.”


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12 • August 6, 2018

USED CAR NEWS

WHOLESALE MARKETS Compiled by Jeffrey Bellant COLORADO Matt Read, general manager, Loveland Auto Auction, Johnstown, Colo.: “We’ve been in business 31 years. “We have four lanes and we run all four. “Volumes have been OK. It just seems like it’s tough to get cars this time of the year. “That’s what I hear about all the other auctions in Colorado, but it doesn’t make me feel any better. “We’ll run 400 to 475 a week. I think volume is a little bit down from this time last year, but not that much. “Our percentages are good, about 70 percent. “We don’t have a ton of leet-lease or repos. “I would say 90 percent of all of our cars consigned are dealer units. “On average, dealer (attendance) has been about 225. Dealers are saying retail business is up and down. “It will be good one week and shuts of the next. “In recent weeks it’s start-

ing to pick up a little bit. “We do run online and it’s picking up. “We’re quite a bit ahead of last year in the amount of cars sold online. “We use the Auction Edge system for online. “Our economy overall in northern Colorado is very good. It seems everyone wants to move here. “We always do well with trucks and SUVs. The trucks are all four-wheel-drive. Diesels are also good. “We just had an anniversary barbecue recently. We sold like 78 percent. It was crazy. “We’re about (on pace) with last year. “We also have a separate business – Specialty Auto Auction – that sells collector car/muscle car sale. “We only do a couple of those a year. “Our next one is Sept. 8, during the Good Guys Car Show is in Loveland. “We’re running about 150 cars and it’s open to the public.”

INDIANA Chris Walsh, general manager, Fort Wayne Auto & Truck Auction, Fort Wayne, Ind.: “We’ve been in business since 2011. “We have six lanes. “We’re running between 600 and 700 (vehicles) weekly. We also do a heavyduty truck sale. So we run 200 to 300 heavy-duty trucks twice a month. It’s not just cars. “I think we’re running right at the same level as this time last year. “We’re in the 45 to 55 percent range. “One thing we have noticed on the car side is that the price of the vehicle is probably $500 below what it was last year. I would attribute that the dealers retailing more cars that would have sent to auction. “Across the block on the cars, the average price is $6,200. On the truck sale, it’s like $14,000. “For our weekly sale, about 30 percent is com-

mercial/lease/repo and 70 percent is dealer consignment. We’ve been larger on the dealer side and we kind of like that. We’re not dependent on any one group for our volume. “We are also excited because we have Ally Financial coming on board soon. We’re supposed to be getting our irst schedule in the next couple of weeks. I’m excited about that because they are really focused on heavy-duty trucks. It’s kind of a new venture for them, so it’s fun to be a part of something that is new. “Online we use Auction Pipeline and we’ve seen an uptick in our online bidders. “Normally, we see an average (of in-lane bidders) between 300 and 350 per week. For our bigger sales – like when we have a party sale – we’ll hit 400. “Our heavy-duty truck sale runs every other Wednesday. That runs throughout the entire year. “A typical heavy-duty truck sale runs from 250

to 300-plus for a large sale. Those trucks would be anything that is over a 1-ton capacity. So it’s medium-duty on up to Class A. We do some specialty equipment as well. We do your big dump trucks, tri-axles, and trailers – the 53-foot trailers. We do probably 30 to 35 trailers every sale. “Internet participation is phenomenal on the heavyduty truck side. We probably have 125 bidders online as well as 125 to 200 in the lanes. “The market has been excellent on the heavy-duty truck sale. We’ve been selling 50 percent all through the summer months. “I would say that dealers overall have been selective in their buying. “The economy around here is good. We have our own transport company and inding the qualiied CDL drivers for heavy-duty trucks is always a challenge for us. Having our own transporters allows us lexibility with our customers.”


USED CAR NEWS

August 6, 2018 • 13

TONY MOORBY

DISCONNECTED JOTTINGS FROM As I write this, the cost of a Coca Cola is rising as a result of tarif increases on the metals used for their cans. How un-American. How Trump. Also, the Gross Domestic Product numbers for the second quarter have just been released – a whopping 4.1 percent. Even if this were unsustainable for the rest of the year, any president would claim responsibility. How Trump. I’ve mentioned before that trying to keep track of this president’s likely moves would cloud any crystal ball. You have to wonder if he purposely keeps people, including his closest insiders, of balance as a kind of management style. I’ve seen this before. It’s a belief that subordinates should be ready for any eventuality. The problem is that planning goes out the window and everything gets dealt with on an ad hoc basis, even to the extent of going back on previous positions or statements. The recent statements about

Putin and Russia are a good case in point. He’s so sure of his authority he doesn’t get embarrassed or feel an apology is warranted. As for immigration policy – there hasn’t been one – at least not one that anybody has stuck to for more than ive minutes or that one department should be in synch with any other, sharing similar instructions from the top. As for separating children from their parents, this disgusting practice doesn’t belong in this country. They did that in Auschwitz and Bergen-Belsun! They even announced this morning that “some parents were unqualiied to be reunited with their children.” What? Apparently, some repatriated parents signed documents stating that they didn’t want their kids back. Most of them couldn’t speak English, let alone read or understand it without help, which was not forthcoming. I’m not saying that we shouldn’t have a policy – we

should. But apply it equitably and fairly. It took me donkeys’ years to qualify even being married to an American girl. As for sexual dalliances, most politicians should be very careful before casting that stone especially with the Me-too crowd breathing down their necks. Mind you, I hope we don’t become a nation of misandrists, turning to the hatred of men, in general. Meanwhile, the press continues its unabating barrage. I know they’re doing their jobs but it’s getting like dog poop on your shoes – you can’t get rid of it! It used to be that reporters would maintain a middle ground and report the facts. Now the broadcasts are colored with positions already taken and the language leans whichever way suits the station best. I do question the ability of someone like George Snuflupaguss taking the middle ground, having donated $75,000 to the Clinton Foun-

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dation on the run up to the elections. Maybe he thought he’d have some sort of inside track were she to have won. One can’t help but be cynical these days. So Trump carries on alienating allies, whether politically, economically or just crassly cutting of the Queen, but then he has to back-pedal and remake deals or take back statements. The car manufacturers and their parts makers don’t know whether they’re on foot or horseback. Surely Trump or his advisers are

not naïve enough to think that we build cars in this country without importing the bits and pieces to put them together. Here in the South, Hyundai, Mercedes, Toyota, Nissan and many others are talking about raising prices. Farmers are losing markets or will have to pay more for foreign access when retaliation takes hold. ‘Every action has an equal and opposite reaction…’ I hope Canada Dry doesn’t go up – bourbon’s expensive enough.

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


14 • August 6, 2018

USED CAR NEWS

Digital version available at usedcarnews.com

C R O S S WO R D By Myles Mellor

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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.


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Used Car News 08/06/2018  
Used Car News 08/06/2018