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UsedCarNews.com

December 3, 2018

ADESA Winnipeg Wins Auction of the Year

Photo by Jeffrey Bellant AWARDS NIGHT: Gregg Maidment, ADESA Winnipeg general manager, along with his daughters, accepts the 2018 Auto Auction of the Year Award for Excellence in Community Service during the NAAA convention in Scottsdale, Ariz., last month. By Jeffrey Bellant

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SCOTTSDALE, Ariz. – ADESA Winnipeg received the 2018 Auto Auction of the Year Award for Excellence in Community Service during a closing award ceremony at the 70th annual National Auto Auction Association convention here in November. The award goes to the auction with the most outstanding service conducted by members of its auction staf. The NAAA established the annual Auto Auction of the Year Award for Excellence in Community Service

and irst presented it at the 2016 NAAA national convention. The winner appears on the cover of the annual auction guide. Outgoing NAAA President Warren Clauss presented the award as part of his inal duties as president. “The auction that earns the national honor, receives an additional $20,000 which they donate to the charity or charities of their choice.” Gregg Maidment, general manager of ADESA Winnipeg, brought Amira and Isabella, his two young daughters, to the podium with him to receive the award with him. “Today, we are going to give a few

brief words on why we believe giving back to our community is so important,” Amira said. She talked about going to charity events with her family and ADESA stafers. “We were able to serve at the Ronald McDonald House to make and serve dinner,” Isabella said. The pair also made their own businesses, such as lemonade stands, to help raise money for groups like the Children’s Hospital, the Make-AWish Foundation and Princess for a Day. “Each time anyone is able to make a donation to a cause for people suf-

fering a life-threatening illness, you are helping someone in need,” Amira said. “Because whether it’s money or donating your time to volunteer…” Isabella added, “…everything counts to make a change in someone’s life.” The girls ended their remarks with, “Thank you.” Maidment followed his daughters. “Kind of hard to top that,” he said. “But everyone is this room is fortunate to have a business where your mission is to bring people together and excite them through auctions. Continued on page 10

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From our family to yours, we’re wishing you a happy holiday season and look forward to helping you see new ways to succeed in 2019. START SEEING NEW WAYS AT NADA – JANUARY 2019. SEE MORE AT MYMANHEIM.COM

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USED CAR NEWS

December 3, 2018 • 3

NAAA Honors Contributors to Auction Industry The National Auto Auction Association celebrated the people who make the industry work during its recent annual convention. Muray Kent received the National Auto Auction Association (NAAA) Bernie Hart Memorial Auctioneer of the Year Award for 2018. Named in honor of Bernie Hart, who served as NAAA’s executive director for more than 30 years before retiring in 1988, the annual award recognizes the industry’s most visible person. Kent has been seen on the block at auto auctions for five decades. He began calling bids as a teenager at livestock auctions around his western New York home, then following high school the young man traveled to Decatur, Ill., where he attended The Superior School of Auctioneering and graduated in July 1976. The next year, while continuing to work at livestock markets, household and farm auctions, Kent was introduced to the world of

auto auctions at Expressway Auto Auction in Dansville, New York. Today, Expressway and Rochester-Syracuse auto auctions, along with both ADESA auctions in upstate New York, and State Line Auto Auction in Waverly, N.Y., utilize his services on the block. Kent was named the Auctioneer of the Year for 2008 by the New York State Auctioneers Association, and in December 2017 he had the honor of auctioning the last Oldsmobile ever made, an Alero GLS, which sold for $42,000 at State Line. The NAAA named Jim DesRochers a pioneer of the industry for his achievements and contributions of many “firsts” to the remarketing profession. The Industry Pioneer Award, given to those who have worked in the wholesale motor vehicle industry, recognizes individuals who have innovated or enhanced methods of improving services to remarketers through NAAA member

TOP ON THE BLOCK: Muray Kent receives the Bernie Hart Memorial Auctioneer of the Year award during the recent National Auto Auction Association convention. Kent now lives in Florida, but continues to work at auctions throughout New York State, as he has for more than 40 years.

auctions; have championed NAAA member auctions as providing services for motor vehicle remarketers unavailable from any other source; and have consistently followed the standards of the NAAA Code of Ethics. During his 30 years in the

wholesale vehicle remarketing industry that began with Manheim, DesRochers oversaw several innovations. These include the first handheld check-in system tested with Bob Bruno at Manheim Phoenix in 1988, the first auction to create a

MAFS Gold room at Manheim San Francisco and the first to flip lane flow from exterior to interior viewing at Manheim’s CADE with a 13-lane, six-to-eight unit interior viewing auction. Continued on page 6


4 • December 3, 2018

USED CAR NEWS

NEWS BRIEFS Greater Rockford Partners with Online Sale Provider The Greater Rockford Auto Auction announced a partnership with Turn Auctions, a new mobile-based auction platform. Turn ofers 15-minute wholesale auctions via its iOS and Android app. Auctions on the platform began Nov. 1 and will take place seven days a week. Selling on Turn is open to all commercial accounts, franchise dealers and independent dealers. At the completion of a sale, GRAA will inspect the vehicle and arrange transportation. Turn expects to enter into similar relationships with other independent auctions. The Turn Auctions app is available by searching for “Turn Auctions” in the App Store or Google Play.

KAR’s portfolio of software as a service capability including Recovery Database Network (RDN). Clearplan will continue to operate from its Nevada headquarters and will become part of KAR’s digital services group of companies.

Columbus Fair Upgrades AMS

Columbus Fair Auto Auction this month will launch AuctionMaster V3, a technology developed by Integrated Auction Solutions (IAS). AuctionMaster V3 is a web-based auction management system with comprehensive features to perform all auction functions. The new management system replaces A/S 400, which Columbus has been using for more than 20 years. The web-based system will make it easier for all departments -- from accounting to sales -- to work simultaneously. Columbus already utilizes IAS Marketplace, an online platform KAR Acquires Repo Platform KAR Auction Services Inc. has ac- through which users can buy and quired Reno, Nev.-based Clearplan. sell vehicles. Clearplan’s digital platform provides recovery agents, drivers, for- ALG Names Subaru, Jaguar Best in warders and automotive lenders a Pre-Owned Vehicle Value ALG announced the winners of centralized, mobile, cloud-based hub for repossession worklow and the 2019 Pre-Owned Value Awards, logistics management. The acqui- ranking Subaru and Jaguar as the sition brings new mobile technol- top Mainstream Brand and Premiogy and real-time data analytics to um Brand across the board.

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Santander Pays More Than $11 Million for Gap Problems The Bureau of Consumer Financial Protection announced a settlement with Santander Consumer USA Inc. The Bureau found that Santander did not properly describe the beneits and limitations of its SGuard Gap product, which it offered as an add-on to its auto loan products. Santander also failed to properly disclose the impact on consumers of obtaining a loan extension. Under the terms of the consent order, Santander must, among other provisions, provide approximately $9.29 million in restitution to certain consumers who purchased the add-on product. It must also clearly and prominently disclose the terms of its loan extensions and the add-on product, and pay a $2.5 million civil money penalty.

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The 2019 POV awards are awarded to vehicles with the lowest forecasted depreciation from two years of age to ive years of age, during the period 2018-2021. Vehicle segmentation is based on ALG’s proprietary automotive segmentation, which takes into account information such as vehicle size, transaction price, and cross-shop information. Nissan leads with three vehicle segment awards for the irst time, unseating Toyota with the GT-R, Quest and Altima in the Premium Sports car, Minivan and Midsize segments. Although unseated as the overall Premium Brand winner by Jaguar, Mercedes boasts three awards in the Midsize Commercial, Full-size Commercial and Premium Midsize segments. Award winners are determined through careful analysis of used vehicle performance, brand outlook and product competitiveness. Eligibility for a brand award requires a manufacturer to have vehicle entries in at least four diferent segments. To account for diferences across trim levels, model averages are weighted based on percentage share relative to the entire model line.

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USED CAR NEWS

December 3, 2018 • 5

Chase Combines Finance, Marketing in New Role (Chase Auto announced a new shift in leadership that aligns its lending business with marketing into one consumer-facing shop. The combination will be led by Chase Auto Chief Marketing Oicer Melinda Welsh. Welsh will be the irst to lead marketing and direct lending for Chase Auto, playing a key role in Chase Auto’s larger business strategy. Welsh has served as the Chase Auto chief marketing oicer for four years and will oversee how Chase Auto is integrated into all consumerfacing channels, whether online, in a branch, in a dealership or through other marketing eforts. She recently spoke with Used Car News.)

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at Chase and that’s not going away. We want to keep on investing in that. But we want to give people on the digital side more tools. For example, we should be able to approve consumers, especially our existing Chase customers, a lot faster for financing and pre-approve them so they know where they stand when they go into the dealership. We don’t want to forget about the in-person process. That can be either in one of our branches or in a dealership. We are working on ways to improve that process. We want to give people lots of options.

UCN: What is your background? Welsh: I’ve been in marketing/ communication roles my entire career. I have typically had a focus on digital aspects of marketing and communications. I was a consultant for many years. At Chase, I ran digital marketing for credit cards and mortgages. I’ve been with auto for four years. This past year we combined all our consumer-facing business, which includes marketing, lending and product design.

UCN: Will this new initiative help with consumer satisfaction? Welsh: One of the biggest causes of dissatisfaction is consumers aren’t confident that they’re getting a good deal. I think having a lot of tools and education upfront, knowing what you’re pre-approved for, knowing what questions to ask really helps improve confidence in the whole finance process.

UCN: How will you function in this expanded role? Welsh: I call it a marketer’s dream come true, to be truly responsible for business outcomes and to combine that with marketing. Coca-Cola just started taking this approach as well and you’ll see a lot of companies taking marketing to the next level.

UCN: What does this change do for dealers? Welsh: Direct lending for Chase in still a smaller piece of the pie than indirect lending and we’re OK with that. It’s more about giving customers choices. It’s all about getting more of the process done upfront and then closing at the dealership.

UCN: How will this afect the inance process? Welsh: Our goal is to provide financing for our customers however they want it. There has been a focus on digital financing and marketing For Cars, Trucks and Vans

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6 • December 3, 2018

USED CAR NEWS

NAAA Honors – from page 3

INNOVATOR: Jim DesRochers addresses attendees at the NAAA convention after receiving the group’s Pioneer award. DesRochers served as the NAAA president during 2004-05. He has worked at several auctions over the years, including corporate and independent operations.

Later, some other advancements introduced under his leadership as vice president of Dealers Auto Auction of the Southwest in Phoenix, Ariz., include the irst auction to use digital bidder badges, the irst to establish CarFax transparent transactions, the irst to develop a Mexico-Ready program, the irst auction with an in-lane-internetdriven concierge lounge and mobile-tablet-driven operational low from check-in to sale. In addition to his many contributions to the industry, DesRochers served as NAAA president from 2004 to 2005 and was honored by the association as a Warren Young Sr. Fellow. “Jim was one of the most innovative presidents that I’ve had the opportunity to serve in my 15 years at NAAA,” said NAAA Chief Executive Oicer Frank Hackett. “He challenged the industry with his creative thinking and was always one of the irst to point to ways to improve the long-established practices of the auto auction business.” The NAAA also inducted two members to its Hall of Fame. Bob McConkey, president and chief executive oicer of the McConkey Auction Group and Auction Edge board chairman, received the honor for his leadership roles in the industry as ServNet’s chairman of the board, Western Auto Auction Association president and on NAAA’s board of directors as well as several committees. He also served as NAAA President in 2009. His father, Bob McConkey Sr., served as president in 1977. Membership in the Hall of Fame, established in 1968, recognizes individuals whose long-term service to the auto auction industry and NAAA has contributed improvements to remarketing as a whole, has worked with the trade organization to beneit its members and has consistently followed the high

standards of the association’s Code of Ethics. After working at several other auctions, McConkey and his friend Greg Mahugh started DAA Northwest in 1992. Today, McConkey oversees auto auctions in Spokane, Kansas City and Seattle with combined auction sales of more than 100,000 units annually, and leads the executive team in the development of relevant future strategies. He still inds time to regularly call bids on the block. Tom Cross, the Hearst Corporation executive vice president who oversees the media conglomerate’s transportation portfolio, was also inducted. NAAA previously honored Cross by naming him a Warren Young Fellow in 2013. That same year he was inducted into the National Independent Automobile Dealers Association’s Ring of Honor for his many contributions to the industry and his professional accomplishments. Cross is responsible for Hearst’s business media group that delivers more than 8 billion vehicle valuations annually used by dealers and inancial institutions throughout the U.S. and Canada for their transactions. The transportation portfolio includes Black Book, Canadian Black Book and MOTOR Information Systems, an automotive data supplier. He also serves on the board of directors of CAMP Systems International, a Hearst company that is the leading independent provider of aviation management products and services. Cross began his career in the automotive profession with Ford Motor Company, where he spent 15 years in various management positions gaining hands-on dealer ield experience in both domestic and international markets.


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8 • December 3, 2018

USED CAR NEWS

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A man arrested last year by Nevada’s Department of Motor Vehicles for selling cars in the Las Vegas area without a dealership license has pleaded guilty to a related felony charge. Russell Ricafort was arrested July 2, 2017, by DMV investigators and charged with 56 counts of unlicensed dealership activity, operating as an unlicensed salesman, forgery and conspiracy to commit forgery. Ricafort pleaded guilty to forgery and agreed to serve three to ive years’ probation and pay restitution to the state. Ricafort will be formally sentenced in February. The state is seeking restitution based on an outstanding administrative ine and dealer licensing and bond fees that Ricafort should have paid. Ricafort worked as a dealership salesman until his license was denied by the Nevada DMV in 2009. Thereafter, he began acquiring vehicles at dealer wholesale auctions and selling them through Craigslist and on empty lot corners throughout Clark County. In many cases, he represented himself as the owner of a ictional dealership called Aloha Auto Sales. In 2015, Ricafort received a cease

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and desist order from DMV’s Compliance Enforcement Division, but continued selling vehicles to unsuspecting consumers, purporting to be the owner of Aloha Auto Sales. The DMV also blocked the registering and titling of the vehicles he sold. All of the afected motorists were able eventually to register and title their vehicles after paying the appropriate sales taxes and fees as the DMV continued its investigation. In one of the cases, a DMV undercover purchase netted two additional arrests. Oscar Rodriguez, the owner of OS’CARS Auto Sales, a licensed dealership, and Drago Zlatar, 66, an employee of OS’CARS, allegedly conspired to forge DMV documents to make it appear OS’CARS had sold one of Ricafort’s vehicles. Rodriguez and Zlatar were arrested on June 19, 2017, and charged with Forgery and Conspiracy to Commit Forgery. Their cases are expected to be settled next year. OS’CARS has paid an $800 administrative ine to the DMV. Under Nevada law, anyone who sells more than three personallyowned vehicles per year must obtain a dealer license from the DMV.


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10 • December 3, 2018

USED CAR NEWS

Auction – from page 1 He said it was important to be involved in giving, whether you donate your time to run an auction, take pledges on sale day or ofer ways to support your employees with the charitable organizations they support. “As we embark on a new year,” Maidment said, “it’s my hope that every auction continues to use the gifts they have to bring people together and excite them through the forum of auctions and give back to your local communities to make a diference.” Maidment urged auctions at the NAAA event to continue to give and support charities. “Together, as a community of NAAA auctions, we can ignite an unstoppable force, creating a meaningful and long-lasting diference in the communities around us,” he said. ADESA Winnipeg has been Eastern Chapter winner in all three years of the competition, inally winning this year. Other chapter winners included the Midwest Chapter’s ADESA Indianapolis, Southern Chapter’s Manheim Darlington and Western

Chapter’s Kansas City Independent Auto Auction. “Each of the four (regional chapter) auto auctions of the year receive $5,000, which they donate to the charity(s) of their choice,” Clauss said. “The Auto Auction of the Year award is selected by an independent committee and chosen from one of the four chapter award winners. NAAA leadership had previously visited ADESA Winnipeg on one of its sale days. “We were touched by so much of what we saw irsthand,” Clauss said. A video of the sale day and interviews with many of the groups that ADESA Winnipeg supports was shown to the NAAA attendees. Maidment talked about how auction personnel partnered with local charities and non-proits to help the community. “Last year, we had approximately 25,000 people come together,” he said, “If you put together all the events and average attendance and all the dealer partners, staf and people together. “There’s something rewarding there that words can’t describe.”


USED CAR NEWS

December 3, 2018 • 11

PEOPLE IN THE NEWS Compiled by Jeffrey Bellant J.D. Power Promotes Valuation Expert Jonathan Banks has been promoted to vice president and general manager of vehicle valuations at J.D. Power.

In his new role, he will manage the overall operations strategy of Used Car Guide and spearheading initiatives to improve the valuation process.

XLerate Strengthens Digital Team

JONATHAN BANKS Banks has been in the auto industry since 1995. He’s managed the development of analytical models related to new and used vehicle demand and pricing for the last 20 years, and he’s overseen the development of the J.D. Power residual values model.

XLerate Group Auctions announced the promotion of Kelly McAllister to executive director of digital strategy and the hiring of Keith Fetz to the position of digital manager for remote markets. McAllister joined the XLerate Group corporate team in 2015. He is a charter member of the OVE product board. Fetz comes to XLerate Group as an OVE Advisory Board member and recipient of top sales recognition in digital account management. Fetz spent over ive years at an

auction establishing Manheim Promotes digital sales programs Managers and working with both Manheim has andealers and commer- nounced new and excial sellers. panded roles for ive general managers. DealerSocket Adds For- Dana Lowenthal has mer CDK CEO to Board been promoted to genSteve Anenen, the eral manager of Manformer president and heim Central Florida. CEO of CDK Global, Her career with Cox has been appointed to began in 2008 at Cox the DealerSocket board Newspapers before of directors. moving to Manheim Anenen served for corporate. She became more than 25 years at assistant general manCDK Global, formerly ager of Manheim Palm the ADP Dealer Servic- Beach in 2015. es Group. Most recently, she Anenen previously was the auction manled the Dealer Services ager at Manheim Cendivision and grew rev- tral Florida before her enues to more than $2 promotion to general billion. manager this summer. When ADP spun Maxine Mane has of CDK Global into a been promoted to genstand-alone company, eral manager of ManAnenen was appointed heim New England. CEO. Mane joined ManHe oversaw the com- heim in 2012 as the pany’s initial public promotions manager ofering and served as for several Florida aucchief executive until tions before becoming 2016 when he retired. dealer services man-

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1 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.

Mike Cesta, general manager of Manheim Chicago, has assumed the additional responsibility for Manheim Arena, also in Illinois. Cesta joined Manheim in 1998. Emily Decker, general manager of Manheim Indianapolis, will take on general man-

MAXINE MANE ager for Manheim Palm Beach in 2014. Most recently, she served as assistant general manager for Manheim Dallas. Tom Rastelli has been promoted to general manager of Manheim Portland. He joined Manheim in 2014 as a ield sales manager in the Northeast. He most recently served as assistant general manager for Manheim Phoenix. Additionally, Manheim has expanded the roles of two general managers.

EMILY DECKER agement for Manheim Cincinnati in 2019 upon the retirement of current GM Anita Jamison. Decker joined Manheim in 1997.


12 • December 3, 2018

RETAIL MARKETS IDAHO Bobby Petersen, owner, Fairly Reliable Bob’s, Boise, Idaho: “We’ve been in business 43 years. I’m the second generation. “We have one location. “We probably have 135 units. A lot of dealers start to back of of inventory, but this is the time of the year when we can make good buys. We buy everything we can get our hands on this time of the year. If we wait until January, we can’t get anything. “There’s three auctions in our little town, so we get some there. Also we have some wholesalers we work with. When you’ve been in business 43 years, you know a lot of people. We know people as far as the East Coast, back to the West Coast and the South. They know the stuf we like. “Back in the good old days, we’d sell about 80 a month, but now it’s about 50. “We started as a buy-here, pay-here dealer, but it’s

probably only about 15 percent of our business. “We want to be able to accommodate anyone who walks in the door. “We don’t do a lot of subprime. We’ve got a bunch of credit unions in Idaho that are competing so heavily that are buying really deep. “For us, the average retail price is in the $14,000 area. “We carry a pretty good mix. Trucks are more domestic while cars are more foreign stuf. “Minivans have been of, but we still believe in them and carry a few of them. Then the rest are 50/50 between cars and trucks/ SUVs. “We carry 2014 through 2016. We like to be less than 100,000 miles, for sure, but prefer to be under 75,000 miles. “We spent about $1,200 per car on reconditioning. “Our thing is relying heavily on repeat-referral business. We really try to follow up with our customers, making sure they are happy

and asking them that if they have a friend or family member to send them to us. We bend over backwards to get them back. “We sold a 2015 Toyota Corolla recently. It had 38,000 miles.”

WASHINGTON Bob Reid, owner/operator, Reid & Johnson Motors, Port Angeles, Wash.: “I’ve been owner of Reid & Johnson for 31 years. “We have one location and (on Nov. 21 I had) 34 vehicles in stock. I can only it so many on my lot. “I get a lot of referrals from attorneys to acquire estate vehicles. Up here is a pretty big retirement community. Also there are nonproit (groups) that help the elderly with their afairs and when they have to give up driving or go into a nursing home, they call me to buy the cars. They are generally well cared for vehicles. “I also buy cars coming out of the lease companies. “I’m probably selling

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$ in the 18- to 22-cars-permonth range. “The local economy is always struggling. Environmental things have shut the timber industry down. We don’t have any ishing. We don’t have any paper mills anymore. We do have some shipbuilding and maintenance here, as well as a huge retirement community. “Our biggest export out of the North Olympic Peninsula is our young people. “I’m just straight retail. We help arrange inancing through local banks. “We used to do a lot of late-model, low-mileage rental cars. But now we’ve switched over and we’re focusing more on commercial vehicles. “Our average retail price is $14,000 to $16,000. “I’m now in the three- to six-year old vehicle. “Commercial vehicles are work trucks, cargo vans and occasional bucket trucks. About a third of that is our inventory. “Average reconditioning

$

USED CAR NEWS

Compiled by Jeffrey Bellant is anywhere from $600 to $900 per car. Every customer gets a copy of a Carfax on every vehicle. “My tolerance for miles has eased a little bit since I’m selling more commercial vehicles. For regular consumers, the mileage is in the 40,000 to 60,000 mile range. “Most of our stuf has always been domestic. “Lately I’ve been doing some advertising on local radio, because there’s a pretty cool show on that do some things like talk about a ‘car of the day.’ It’s not a canned ad. “I also have a billboard with working headlights on it, so I’ve got a lot of compliments on that. That’s helped my website. “Believe it or not, I sell more cars of Craigslist than I ever did of any other (car ad site). I also do well with Facebook. “I sold a 2011 Ford F-250 XL Super Duty with 75,000 miles. It’s a beautiful truck. That sold for $21,585.”

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USED CAR NEWS

December 3, 2018 • 13

WHOLESALE MARKETS Compiled by Jeffrey Bellant CONNECTICUT Peter Saldamarco, president/general manager, Central Auto Auction, Hamden, Conn.: “Our sale (Nov. 20) was strong. We had a strong sale and our monthly GSA sale the same day. We do it at the same time, just keeping the GSA in a separate lane for the public (bidders). “The Nov. 20 sale was all trucks: pickups, utility-body trucks and vans – that type of thing. Amtrak is one of the (consignors.) That’s one of the biggest clients GSA sends us. Coincidentally, Amtrak is our next-door neighbors. Railroad tracks go behind us and we’re on one side and they’re on the other. “We only had 50 GSA units. GSA was quiet this year. We were down several hundred units from previous years. But it’s winding down for the next three months. “In total, with GSA, we had 354 cars at that sale, so 304 dealer consignment. “We run pretty strong right up to the end of the

year. Then January and (early) February are slow, and then it kicks back up around Washington’s Birthday. “The building has space for four lanes, but we run three. We’re going to start building and then open a fourth lane, hopefully, by our 13th anniversary on Feb. 26. I have some other little projects going on. “We have more than 200 buyers per week. For a small auction like this, that’s a fairly good amount, not to mention online and simulcast. We have a lot of simulcast. “Gross volume is down 10 percent year-to-date, sales volumes down 5 percent. That hit is coming mostly from new-car trades. We’re not getting as many of them. There has been a consolidation of several new-car dealerships into big chains. We lost probably five or six mom-and-pop operations that merged into a big chain. Plus there is a lot of leasing, which means fewer trades. It’s like a perfect storm for our auctions to get hosed.

“Average price in the lanes is $4,500. If anything, the donation cars are dragging that number down. If I took the donation cars out, it’s probably $8,000. “Our volume is probably 50 percent dealer cars, 25 percent donations and 25 percent commercial. The dealer side might be done a little down. “We also have our vehicle evaluation and enhancement center. That plays very well into our donation car business. We own a building next door, which is Chet’s Auto Parts, which is a scrap processing facility. The donation firms love this. “Other auctions aren’t doing this, because there’s a lot of handling and the fees are low. But with our volume and scrap-processing center, I can justify it. It has huge implications for our company. “I’m cautiously optimistic going into 2019. There’s a lot of disruption going on in the business. I feel those things are going to run their course,

so I’m not overly concerned. It does seem like everyone is fighting for a bigger piece of a shrinking pie. “I’m 63 years old, so I remember the gas shortages in 1973 and I was in the game at the time. “You know what the differentiator was? It was those who could hang in.”

MISSISSIPPI Patrick Sellers, general manager, Dixie Auto Auction, Grenada, Miss.: “We’ve been in business since 1982, I believe. “We have three lanes. On average, we run about 300 cars. It just depends on the night. “Business has picked up from this time last year. We’re happy about that. “Depending on what we’re selling, the (conversion rates) have been good. We’re selling around 60 to 70 percent. It’s picked up from last year. It’s supply-and-demand. The economy is good. Everyone’s got a little more

money in their pockets. “We’re about 50/50 between dealer consignment and commercial consignment. Most of our fleet business is from Credit Acceptance Corp. It is 90 percent of our fleet business and we appreciate them. They go over and above for us and we try to do everything we can for them. “Our average price coming across the block is about $4,500. It’s a good average. “It slows down a little bit in December for independents. They’re buying up inventory, but I don’t see the prices increasing. “We sell some repo salvage, as far as anything that comes in wrecked. On average it’s about 20 to 25 every week. “Retail business has been good. I haven’t heard a lot of bad stories. It seems like it’s on the uptick. “I’m looking forward to 2019. The (early part of the year) is our busy season and I like to stay busy. We like to get cars in and sell them.”

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14 • December 3, 2018

USED CAR NEWS

DISCONNECTED JOTTINGS FROM After three months, we’re operating the kitchen with a “loaner” dishwasher from the do-it-yourself superstore with the orange logo – so the saga goes on. More later. In the meantime, the prospect of the approach of winter makes me cringe. Even though we’re now better equipped to deal with most of what Mother Nature throws at us, the idea of bundling up to go anywhere is appalling. Though I spend 99 percent of the year in shorts, it would seem that, as I age with blood thinning, jeans are looking more and more attractive. A ‘pufer’ jacket, donned just to make a 50-yard hop to the store, seems to be a daft exaggeration in this season of discontent, yet that’s what it takes today to make it from the warmth of the car and back again. When I think of being a kid, growing up in a lat with no central heating and sash windows open a click suicient to “air the room” – my

TONY MOORBY

mother’s expression – I now shudder to think of the Siberian fronts that would visit London monotonously in my early years. Even worse, my weekend job washing cars was undertaken despite whatever conditions prevailed. I used to cheat and add a little salt to the water to stop it from freezing. Not only did that not work but it also left a telltale schmear of white across the car! I remember getting dressed for school holding frigid clothing in front of a three-bar electric ire before donning a thick, dark blue Macintosh raincoat for the mile-long walk to get there. My brother and I didn’t wear long pants until the second year in Grammar School and thought nothing of whatever the weather may throw at us. Resilience reduces as age advances and the comforts of home become more attractive. But extensive travel when I irst came here saw the rig-

ors of American weather at its worst. The company rented an apartment in Minneapolis as I spent a great deal of time calling on leet, rental and leasing companies. All the big names were there– 3M, General Mills, Gambles C & M, Gelco and National Car Rental (with Lend Lease) to name just a few. We had an auction in Shakopee that had staf and managers who already had many connections with these companies. The apartment was in a nice part of town called Edina with the poshest grocery store I’d ever seen called Byerlys just across the street. The garage was underneath the apartments and was heated to 65 degrees which was ine until one had to ill up with gas. I remember standing at the pump in minus-15 degree weather, the wind howling like a lone wolf and me feeling as though my legs were being sawn of – and that was just

to set the pump and open the gas cap! A quick retreat to the car’s inside was an imperative. It was, in fact quite possible, so long as you didn’t break down or need gas, to leave the apartment, get in the car, drive downtown to a garage under the Skymall and do your shopping through glazed walkways in your shirtsleeves in complete comfort then drive home. Down here in the South, no such accommodations existed for cold weather. Hot, humid weather? Yes.

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. Lamborghini named ater a ighting bull 6. VW family car 10. Connect 11. Of-road goer, for short 12. Former Chevy pick up truck 13. Makers of the Talon and Summit 14. Trial run with a car, 2 words 17. he S in SUV 19. Number of cylinders in the McLaren F1 21. Full-size Chevy 23. Popular color for a Lamborghini 25. ___ view mirror 26. Cool 28. Include 30. Green color

4. Fall 5. Route for short 6. Cherokee and Wrangler, for example 7. Price ___ 8. Total, for short 9. Turns aside 15. 90s Honda sports car, 2 words 16. Lotus sports car 18. You can get one in a Jify, 2 words 20. Joins metals 22. Boxster maker 23. Toyota hybrid car 24. College web address ending 27. Firebird maker 29. Ford __sport Down 32. Place to stay 1. Former Kia executive 33. Former compact car Chevy 2. Lotus models 35. Spoken 38. ___ standstill, 2 3. Chamomile or peppermint drink words

31. Oxidization 32. Culturally signiicant 34. Negative preix 35. Beatle’s wife 36. Harley 37. hey made the Sky, Vue and Ion 41. Contest with 43. Longtime record label 44. Makers of Jaguar cars 45. Sea ___ airport 47. Founder of Detroit 48. Description of supercars made in limited numbers

But not cold when the occasional Canadian front made life tough. I had a house back in the early eighties which froze solid when the heating system (such as it was) pooped out and when the weather warmed up there were leaks everywhere. The insulation had been as useful as a chocolate ire screen and was even worse after being sodden wet. Things have improved a great deal since but I still rue the threat of Old Man Winter’s approach.

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Solution to this puzzle in the 12/17/18 issue. Call 1.800.794.0760 for a FREE subscription.

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Solution to the11/19/2018 puzzle


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Used Car News 12/03/2018  
Used Car News 12/03/2018