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UsedCarNews.com

February 18, 2019

NIADA President Resigns After FBI Raids

BLUES: Andy Gabler poses with police and Santa Claus during one of his past promotional giveaways. Gabler has stepped down as president of the National Independent Automobile Dealers Association following raids on his businesses and home by the Federal Bureau of Investigation.

Rush - Dated Material

The president of the National Independent Automobile Dealers association has resigned following FBI raids at his home and businesses in Pennsylvania. Andrew Gabler stepped down from his post on Jan. 31 after six months in the role. The FBI raids took place the day before. In an exclusive statement to Used Car News, NIADA CEO Steve Jordan said the group “had no oicial knowledge of this issue before the events that led to Gabler’s resignation.”

Neither the NIADA, the FBI, nor the U.S. Attorney for Western Pennsylvania would discuss details of the raid, saying it was an ongoing investigation. According to local news site GoErie.com, S& T Bank has sued Gable for selling vehicles out of trust and that he has millions of dollars of loans in default. His dealerships have now been placed in a receivership, GoErie reported. President-elect Henry Mullinax, will inish out the remainder of Gabler’s term before starting his own one-year term at the group’s annual convention in June.

Board Chairman Dave Andrews’ term will be extended an additional year to June 2020, since Gabler’s resignation means there will be no immediate past president in June to take his place. NIADA’s statement also discussed how this incident might lead to changes in the association. “Any association in this situation would respond, as NIADA has, by looking inwardly and asking what we could have done diferently to avoid an outcome like this,” it stated. “NIADA may put additional disclosures in place for its oicers, but we want to be careful not to over-

Welcome to

By Jeffrey Bellant

react as a national association to the business practices of one.” The statement also read that the resignation was based “in part, on (Gabler’s) desire to focus his full attention on cooperating with the authorities.” Gabler’s resignation to NIADA stated that his resignation was “in the best interest of me, my family and the association.” Gabler expressed love for the association in a conversation with Used Car News following his resignation. “I’ll tell you what I told my brothers at the NIADA,” Gabler said. Continued on page 6

2019

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Choose Chase on ADESA.com and OVE.com for quality bank-sourced vehicles. Contact auctions directly for current sale information. 1

The Jaguar word mark, the Jaguar logo, and Jaguar Financial Group are trademarks of Jaguar Land Rover Limited and any use by Chase is under license. The Land Rover word mark, the Land Rover and Oval logo, and Land Rover Financial Group are trademarks of Jaguar Land Rover Limited and any use by Chase is under license. 2

The tradename “Mazda Capital Services” as well as the Mazda and Mazda Capital Services logos are owned by Mazda Motor Corporation or its affiliates and are licensed to Chase.

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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”).

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Neither JPMorgan Chase Bank, N.A. nor any of its affiliates are affiliated with ADESA, Inc. or Manheim, Inc. Each auction is solely responsible for their website content, sales events, promotions, fulfillment and operation of the auction. ©2018 JPMorgan Chase Bank, N.A. Member FDIC (19-003) 03/19


USED CAR NEWS

February 18, 2019 • 3

Auto Industry Makes Push to Attract Technicians The National Automobile Dealers Association Foundation announced the next phase of its Workforce Initiative, which includes the launch of a new consumerfacing website to promote the value of service technician jobs. The site, www.nadafoundation.org, provides a centralized source of all OEM and industry training programs and scholarship opportunities for aspiring technicians. The NADA Foundation also announced an initial round of donations for its Workforce Initiative, including: $50,000 from the National Auto Auction Association; $50,000 from PACCAR; and $25,000 from Porsche. NADA Foundation has donated an additional $250,000 to the efort. America’s technical colleges and training programs graduate approximately 37,000 new service technicians annually. But the industry needs to replace roughly 76,000 technicians every year just to keep pace with retirements and new jobs in the ield. This leads to an annual shortage of 39,000 trained technicians. “Before today, there was no coordinated, industry-wide, brand-neutral efort to increase the number of trained technicians we’re integrating into our workforce,” said 2019 NADA Chairman Charlie Gilchrist. “But thanks to the NADA Foundation Workforce Initiative and the launch of nadafoundation.org, there

inally is. Promoting the tremendous beneits of service technician jobs and making it easier for interested students to ind out about the training and scholarship opportunities available to them where they live is vital to addressing the service technician shortage that every dealer is facing.” Gilchrist said this is an initiative the entire auto industry can get behind. “Our workforce is our absolute best asset as dealers, but we have to recruit, train and retain the best people if we want to continue providing our customers with the best experience possible,” Gilchrist said. The NAAA was one of the irst industry partners to join the initiative. “Our focus is on identifying ways to recruit and retain the best employees. We are encouraged by the NADA Foundation who has invested time and resources in an online platform that will give us the tools we need to be efective in connecting with the education and training institutions,” said NAAA CEO Frank Hackett. The NAAA recently conducted a study of its own on how to attract more technicians to its members’ businesses. The average dealership technician makes $61,067 in salary, plus beneits, and has great opportunities for personal growth and career advancement. Experienced technicians at franchised dealerships can make more than $100,000 annually and

“We just need to get together and start telling it to the right people.” –Peter Welch

SEEKING NEW FACES: A General Motors technician works on a vehicle.The National Automobile Dealers Association, National Auto Auction Association and other industry partners are working to attract more technicians to the business.

service managers can make even more. In addition to the website and interactive map of training and training and scholarship opportunities, the Workforce Initiative includes:

bases, and at major conferences like SEMA. • Economic research to determine how to best recruit and retain techs. • The possible creation of a nationwide network of career fair events to bring students, career cen• New video stories ters and dealers together for where real technicians talk employment in their comabout both their work and munities. the lifestyle provided by their career. One of the immediate goals • An integrated digital of the Workforce Initiative marketing efort to increase is to ill OEM training proenrollments in automotive grams to capacity. To date, tech training programs – es- many seats in those OEM pecially at OEM-sponsored training programs go unprograms, which place thou- illed each year even though sands of students each year full-time employment is into dealership careers. virtually guaranteed upon • A presence at na- graduation. tional train-the-trainer NADA President and CEO conferences and events, Peter Welch said there was to promote the beneits of nowhere until now for a technician careers with high prospective technician to school guidance counselors, ind out where their closest community colleges, mili- training program was locattary separation oicers at ed.

“For example, Toyota’s T-10 website shows where the Toyota programs are, and GM’s ASEP website shows where the GM programs are. But each ignore the other, leaving prospective students confused,” Welch said. “Our new website brings together all OEM training programs onto the same map, through data provided by our friends at Auto Service Excellence (ASE). Now anyone can now ind out where the closest ASE training program is located, public or private, regardless of manufacturer.” Welch said the auto retail industry “has a fantastic story to tell about the tremendous careers we provide. “We just need to get together and start telling it to the right people.”

ADESA Hosts Auction to Raise Funds for NADA A collective efort raised more than $76,000 for Canine Companions for Independence at the recent National Automobile Dealers Association convention. Ben Chavez, an Army veteran and retired police sergeant, and his hearing dog, Nepal, along with 28 dogs and their graduates, trainers and volunteers from Canine

Companions attended the charity auction. “Nepal is really a game changer,” Chavez said, who sustained work-related hearing loss in both ears. “He is trained to hear certain sounds for me, such as sirens, alarms, doorbells, door knocks, the microwave going of and my wife calling my name.”

It marked the eighth straight year that ADESA has hosted an auction at the NADA convention to beneit the NADA Foundation’s Frank E. McCarthy Memorial Fund. To date, the auctions have raised $460,118. Prior to the auction of a Yamaha Drive Series golf cart, Annette Sykora, chairman of the NADA Foundation, an-

nounced that NADA’s board of directors had already contributed $36,000. Joe Verde, president of the Joe Verde Group in San Juan Capistrano, Calif., placed the irst winning bid of $20,000 and donated the golf cart to be auctioned again Greg Noonan, publisher of Insight Media Enterprises in Cherry Valley, N.Y., placed

the inal winning bid of $18,000; and cash donations totaled $2,118. “I am so proud to see the comradery and compassion of dealers coming together, bidding against each other and raising tens of thousands of dollars for this great organization year after year,” said ADESA President John Hammer.


4 • February 18, 2019

USED CAR NEWS

NEWS BRIEFS GM Financial Reaches Remarketing Milestone General Motors and GM Financial hosted the sale of the 15 millionth remarketed vehicle on GMF DealerSource, GM Financial’s online auction platform, powered by Openlane. A 2019 Chevrolet Silverado High Country purchased during a GM Financial DealerSource company car cyber sale was the milestone vehicle. Matt Saxe Chevrolet Buick in Belle Plaine, Minn., placed the winning bid. The truck comes in Cajun Red with black interior. It has the Safety Package II, which includes forward collision alert, lane keep assist with lane departure warning, low speed forward automatic braking and front pedestrian braking. It is equipped with the Technology Package that includes HD surround vision. Other features include power sunroof, all-season tires and all-weather loor liners.

Manheim Upgrades Digital Offerings Manheim previewed sweeping changes to its digital experience at the recent National Automobile Dealers Association exposition. The new Manheim digital experience is designed to help dealers ind the vehicles most relevant to them,

provide quick access to the digital tools they use most frequently and include more information about the vehicles they’re looking to purchase. In 2018, buyers acquired more than 2 million vehicles through Manheim’s digital marketplace. Key personalized solutions that will be enhanced in 2019 include the Manheim.com homepage, search experience, Simulcast and Seller Dashboard. Manheim will also deliver a new mobile experience, which will ofer a personalized experience for dealers and provide them with recommended vehicles, relevant ilters, faster access to critical information, improved keyword search and more. For sellers, the broad suite of solutions from the desktop will be delivered via the mobile app. Manheim will pilot the new Manheim.com with a select group of dealers in the second quarter, followed by a larger roll out throughout the rest of 2019.

KAR in 2017, these new DaaS capabilities leverage data and technology from across the KAR platform and use proprietary algorithms to deliver intelligence to dealers. By integrating data science, predictive analytics and machine learning into the dealer remarketing process, dealers can save time and may increase sales margins and cash low. KAR’s ADESA business unit, which operates more than 75 physical and online auction marketplaces, is piloting the new technology with a major East Coast dealer group representing nine OEM franchises.

NAAA Goes It Alone for Convention

Copart Opens New Site, Expands Existing Operation

CarMax Adds Store in the South

Copart Inc. recently opened a greenield site in South Carolina. The North Charleston facility is located at 120 Commerce Avenue in Harleyville. The 53-acre facility is located close to Charleston, the largest city in the state. Copart Inc. recently expanded its KAR Unveils Data Science Suite El Paso, Texas, location as well. KAR Auction Services Inc. anThe auction is located at 501 Valnounced the launch of a pilot pro- ley Chili Road, Anthony, Texas. The gram for its Data as a Service (DaaS) expansion increases vehicle storage suite of capabilities. by 40 percent. Powered by Drivin, acquired by

The National Auto Auction Association (NAAA) announced the organization would return to the tradition of holding its own yearly meeting. The change begins with the 71st Annual Convention at the JW Marriott in Indianapolis, Sept. 30 to Oct. 3. In response to requests from its membership, NAAA’s Executive Committee made the decision to end its ailiation with Cherokee Media Group’s national remarketing conference.

CarMax Inc. opened its irst store in the Montgomery, Ala., area. This is the company’s ifth store in the state. CarMax Montgomery is located at 5175 Woodmere Boulevard and has the capacity to stock approximately 140 used vehicles.

PAGE 14

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USED CAR NEWS

February 18, 2019 • 5

Auto Finance Shows Growth in Fourth Quarter Auto inance continues to grow despite slowing newcar sales. Overall auto inance balances increased in the fourth quarter, according to the Federal Reserve Bank of New York’s Center for Microeconomic Data. The balance increased by $27 billion to $1.27 trillion. The number of cons u m e r s going into serious delinquency (90 days or more delinquent) remained lat at 2.3 percent. The number of credit inquiries within the past six months – an indicator of consumer credit demand – increased slightly, but remains among the lowest seen in the history of the data. Several large auto inance companies reported higher originations in the fourth

quarter. General Motors Financial Company Inc. announced retail loan originations were $8.4 billion for the quarter, compared to $6.7 billion for the third quarter and $4.4 billion for the fourth quarter of 2017. GM Financial’s income from continuing operations before income taxes was $416 million for the fourth quarter. That is down from $498 million for the third quarter and up from $301 million for the fourth quarter of 2017. The outstanding balance of retail inance receivables, net of fees, was $40.7 billion at Dec. 31. Operating lease originations were $5.2 billion for the fourth quarter, compared to $5.4 billion for the third quarter and $5.8 bil-

The balance increased by $27 billion to $1.27 trillion.

lion for the fourth quarter of 2017. Operating lease originations for the year ended Dec. 31, 2018 were $22.6. Retail inance receivables 31-60 days delinquent were 3.3 percent of the portfolio at Dec. 31, down from 4.1 percent at Dec. 31, 2017. Accounts more than 60 days delinquent were 1.4 percent of the portfolio at Dec. 31, down from 1.7 percent at Dec. 31, 2017. Annualized net charge-ofs were 1.8 percent of average retail inance receivables for the fourth quarter, down from 2.2 percent for the fourth quarter of 2017. The company had total available liquidity of $26.2 billion at Dec. 31, consisting of $4.9 billion of cash and cash equivalents, $18 billion of borrowing capacity on unpledged eligible assets, $0.3 billion of borrowing capacity on committed secured lines of credit, $1 billion of borrowing capacity on the Junior Subordinated Revolving Credit Facility from

GM, and $2 billion of borrowing capacity on the GM Revolving 364-Day Credit Facility. Santander Consumer USA Holdings Inc. reported total auto originations for the quarter were $6.9 billion, up 59 percent.

Core retail auto originations were $2.2 billion, up 51 percent. Chrysler Capital loan originations were $2.5 billion, up 63 percent. Chrysler Capital lease originations were $2.1 billion, up 64 percent. Continued on page 7


6 • February 18, 2019

USED CAR NEWS

NIADA President – from page 1 “I love the NIADA and I love my family and because of that I had to step down as president of NIADA.” He could not comment on the federal investigation. NIADA also wants its members to know that the association “expects its members to operate at the highest levels of integrity, and the best interest of the association.” The statement goes on to explain how the association chooses its volunteer leadership, with a “fairly rigorous screening process,” managed by a nominating committee, staf and approved policies and procedures. The selection process considers factors that include: “time in business and service to the local community, the automotive industry” and local associations. “Moreover, simply obtaining a state-issued independent dealer’s license is a demanding process with state and federal background checks, felony checks, bonding requirements and, in a lot of states, licensees must meet pre-licensing and continued education requirements,” the statement read. It went on to state that every current member of the group’s executive board has served as president of their own state IADA.

This is not the irst time a high proile NIADA member got in trouble with the law. The 2001 National Quality Dealer Robert McDorman was sent to prison for bank fraud in 2004. NIADA has spent the past several years building membership and boosting the group’s proile in Washington D.C. with its annual trek to the Capitol to lobby Congress. Gabler’s resignation came about eight months after discussing the importance of a dealer’s reputation in their community, during an interview with Used Car News. “That’s really what dealers are about,” he said. “It’s being out in their communities and going above and beyond. “They don’t hear about great things that used-car dealers do for the community and the products that help people.” In that interview, Gabler also discussed the challenge of obtaining a new-car franchise after years of operating used-car stores. “It’s not as much fun,” he stated. “They’ve (squeezed) the margins out of new cars so much, if you don’t hit your numbers, you don’t get anything.”

State Sentences Dealer For Not Paying Tax A former used-car dealer in Toms River, N.J., was sentenced to three years in state prison for stealing $185,000 by collecting state sales tax from customers that he purposely failed to turn over to the state. James J. Colapinto was president of Dancola Inc., which formerly operated two used car dealerships in Toms River. Colapinto pleaded guilty to second-degree counts of theft by failure to make required disposition of property received and failure to turn over collected tax. In pleading guilty, Colapinto admitted that he failed to remit approximately $185,000 in sales tax that he collected at his two car dealerships from 2012 through 2015. Colapinto deliberately underreported the sales tax he collected during those years. “This sentence sends a message that we will aggressively prosecute business owners who defraud the State of New Jersey by misrepresenting their tax obligations,” said Attorney General Gurbir S. Grewal. Under the plea agreement, he

must pay the Division of Taxation $200,000, representing restitution of $185,000 for the sales tax he failed to remit, plus $15,000 in interest and penalties. Colapinto paid $49,000 of the total at his sentencing. Colapinto was also sentenced in connection with a separate criminal case brought by the Ocean County Prosecutor’s Oice in which Colapinto pleaded guilty to defrauding a commercial lender that loaned him money for his car dealerships. As part of a global resolution of the two criminal cases, he pleaded guilty to a charge of second-degree theft in the case iled by the county prosecutor. Colapinto was sentenced to three years in state prison on that charge, with the sentence to run concurrently with the sentence imposed in the tax case. “We will continue to work closely with the Division of Taxation to hold tax cheats accountable,” said Director Veronica Allende of the Division of Criminal Justice. “This type of theft is costly to the State of New Jersey as well as its honest taxpayers.”


USED CAR NEWS

February 18, 2018 • 7

Finance – from page 5 Santander announced net income for the fourth quarter of $104 million. Ally Financial Inc. reported originations of $8.2 billion in the fourth quarter, down $0.9 billion versus the prior year period. Ally’s pre-tax income for its auto business was $50 million higher in the fourth quarter than in the fourth quarter of 2017. Fourth quarter originations included $4.3 billion of used retail volume, or 52 percent of total originations, $3.1 billion of new retail volume and $0.8 billion of leases. Ally reported $335 million in pretax income as higher net inancing revenue and lower provision for loan losses more than ofset higher noninterest expense. Quarter-overquarter results were impacted by

seasonally higher provision for loan losses, higher noninterest expense and lower other revenue, primarily due to higher gains on loan sales in the third quarter, partially ofset by higher net inancing revenue. Net inancing revenue was $40 million higher year-over-year as higher retail and commercial yields and balances more than ofset declines in lease portfolio balances and gains. Provision for loan losses was $26 million lower year-overyear at $262 million, driven primarily by lower retail auto net chargeofs. Provision for loan losses was higher quarter-over-quarter due to seasonally higher retail auto net charge-ofs. Net inance and other interest income was $1.1 billion, up 9 percent.

REMARKETING ARTIST OR SCIENTIST?

Dealership Group Pays For Alleged Practices The New York City Department of Consumer Afairs recently won a case against one of the city’s largest used-car dealerships over claims of misconduct. An administrative judge awarded DCA $3 million in ines in its case against Queens-based Major World as the result of a lawsuit iled in 2017. The lawsuit charged Major World with using deceptive and illegal practices to target low-income and immigrant consumers. The city’s Oice of Administrative Trials and Hearings issued the decision. The decision inds that Major World committed tens of thousands of violations of the laws and rules that DCA enforce. These violations include: falsifying consumers’ income and/or monthly rent obligations on credit applications; falsely advertising the inancial terms of deals in print advertisements and on its English and Spanish websites; concealing the inance terms of deals from consumers; failing to provide deal documents in Spanish to certain Spanish-speaking consumers; and misleading consumers about their legal rights and the history, condition, and quality of the used cars they purchased. DCA entered into a settlement agreement with Major World in 2018, which required the used-car

dealership to pay nearly $142,000 in restitution to 40 consumers directly and $68,000 to cover outstanding loans incurred as a result of Major World’s actions. Both amounts included additional funds to cover income taxes that would have to be paid on the restitution awards, and Major World also agreed to refund consumers who had to pay out-of-pocket expenses for repairs performed on their automobiles. “The decision puts Major World and other used-car dealerships on alert: DCA will not tolerate this conduct. Our work here is far from done and we will continue to closely monitor Major World’s practices and encourage any consumers to come to us and ile a complaint,” said Lorelei Salas, DCA commissioner. DCA has taken several high proile actions against the used-car business in the past few years. This includes the creation of new document requirements and a public awareness campaign about socalled “predatory lending” in usedcar sales. DCA currently licenses 692 usedcar dealerships. The regulator has secured nearly $2.1 million in consumer restitution and nearly $2.1 million in ines against used-car dealerships over the past ive years.

“The decision puts Major World and other used-car dealerships on alert...” –Lorelei Salas

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USED CAR NEWS

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“With Carvana vehicles added to our platform, our clients can take the process one step further and inalize a purchase without ever leaving home. We are delighted to bring this unique experience to more of our clients,” said David Hollodick, senior vice president of consumer vehicle lending at Bank of America. All Carvana vehicles listed on Carvana.com and on the Bank of America car-shopping platform are Carvana Certiied. In related news, Carvana recently launched in ive New York markets, ofering its as-soon-as-next-day vehicle delivery to Rochester, Bufalo, Syracuse, Binghamton and Albany area residents. Carvana launched in New York City last fall. Carvana now ofers as-soon-asnext-day vehicle delivery in 91 markets across the U.S.

*

218WFIP1

DETROIT (AP) _ Cold temperatures can sap electric car batteries, temporarily reducing their range by more than 40 percent when interior heaters are used, a new study found. The study of ive electric vehicles by AAA also found that high temperatures can cut into battery range, but not nearly as much as the cold. The range returns to normal in more comfortable temperatures. Many owners discovered the range limitations last week when much of the country was in the grips of a polar vortex. Owners of vehicles made by manufacturers including Tesla, the top-selling electric vehicle company in the U.S., complained on social media about reduced range and frozen door handles during the cold snap. “As long as drivers understand that there are limitations when operating electric vehicles in more extreme climates, they are less likely to be caught of guard by an unexpected drop in driving range,’’ Greg Brannon, AAA’s director of auto-

motive engineering, said in a statement. AAA tested the BMW i3s, Chevrolet Bolt and Nissan Leaf from the 2018 model year, and the 2017 Tesla Model S 75D and Volkswagen eGolf. All have a range of at least 100 miles per charge. They were tested on a dynamometer, which is like a treadmill, in a climate-controlled cell. The automobile club tested the cars at 20 degrees and 95 degrees, comparing the range to when they were tested at 75 degrees Fahrenheit, according to a report on the study. At 20 degrees, the average driving range fell by 12 percent when the car’s cabin heater was not used. When the heater was turned on, the range dropped by 41 percent, AAA said. At 95 degrees, range dropped 4 percent without use of air conditioning, and fell by 17 percent when the cabin was cooled, the study found.


USED CAR NEWS

February 18, 2019 • 9

PEOPLE IN THE NEWS Compiled by Jeffrey Bellant Cox Automotive Salutes Franchise Dealer Cox Automotive presented its annual Barbara Cox Woman of the Year Award to Gail Miller, owner and chairman of Larry H. Miller Group of Companies. This honor is awarded to women who demonstrate business leadership and community advocacy, as well as a commitment to advancing the automotive industry. Cox Automotive President Sandy Schwartz presented the award during the Northwood University Dealer Education Award annual breakfast on Jan. 26. The award is named after the late Barbara Cox, a Cox Automotive owner and the mother of chairman Jim Kennedy. Gail Miller and her late husband, Larry, started their business

with a single Toyota dealership in 1979. The Larry H. Miller Group of Companies has grown to include more than 60 car dealerships throughout

estate companies. Miller presides over the Larry H. Miller Education Foundation and the Larry H. & Gail Miller Family Foundation, which support a

Barbara Cox scholar- won the Best European ship to Katelyn De- Display Award. marse, a Northwood University junior Firm Hires Director of studying automotive National Sales retail management. DeComplyNet, a providmarse has participated er of workforce compliance management solutions, hired Bob Balak as director of national sales. Balak, an industry veteran, was previously employed by Compli as director of national sales auto. ComplyNet’s former director of national sales, EJ Shelby, has shifted to a new role as director of customer success.

WOMEN OF THE YEAR: Cox Automotive CEO Sandy Schwartz, center, celebrates with Katelyn Demarse, left, and Gail Miller.

the West, as well several professional sports teams, including the Utah Jazz, theater complexes, and a variety of other automotive, financial, and real

wide range of charitable, educational and humanitarian causes. In addition to presenting the award to Miller, Cox Automotive presented a $10,000

in Northwood University’s International Auto Show for three consecutive years, serving as both captain and co-captain. Her most recent team

ADESA Adds to National Sales Team ADESA announced two additions to its national sales team. Patrick Ming has joined the team as executive sales director, and Vince McNeal has rejoined the team as senior director of cus-

tomer solutions. Ming joined parent company KAR Auction Services Inc. through the acquisition of Openlane in 2011. Most recently, Ming served as director of online programs at ADESA. Tn this role, Ming oversaw development of upstream auction platforms for several private-label portfolios supported by Openlane. McNeal began his ADESA career in 2005 at ADESA Lexington, serving as a dealer sales representative, before promotions to fleet lease manager and assistant general manager. He next served as executive sales director at ADESA for five years. McNeal was most recently executive director of commercial sales for TradeRev, another business unit of KAR.


10 • February 18, 2019

RETAIL MARKETS GEORGIA Ed Chapman, general manager, Global PreOwned, Fayettevlle, Ga. “I’ve been in business at this location for ive years. “Right now, I’ve got about 50 cars in inventory. It luctuates between 40 and 50. It just depends on how many are sold and how many come in. “I get inventory from auctions, period. I use Manheim, ADESA and a couple of the independent auctions. “I try to sell 40-plus each month. “We do retail and subprime and occasional buyhere, pay-here deals. We only do very little buy-here, pay-here right now. “The average retail price is probably just under $10,000 – maybe $9,000 to $10,000. That’s typical of how it was last year. “Probably the average model year is 2010 or 2011. Average mileage is probably just under 100,000 miles. That’s same as last year.

Finding cars is tough. “We’ll carry some small to mid-sized SUVs, but not many trucks. It’s probably about 70 to 30, or 60 to 40 split between cars and SUVs/trucks. “On the car side, probably 90 percent or more would be Asian imports. There’s a little better split on the SUVs because of the reliability of (domestic) SUVs. “Average reconditioning costs are probably right around $1,000. Most of that work is subbed out. “Right now we just do digital as far as marketing goes. And it depends on what’s working at the time. Sometimes you think you’ll miss some (advertising source) and then, when you cut it of, you realize you don’t miss it at all. “We recently sold a 2011 Honda CR-V. It had just over 100,000 miles. I think we got between $9,000 and $10,000. “Margins have really been compressed, as far as what you pay for the car com-

pared to what you can get for it retail. It’s especially hard since we try to turn the cars faster. I just haven’t found the formula to increase margins. “One key (to being successful) is making strategic attempts to gain customer loyalty by treating people honestly and fairly. (It’s also about) making more attempts to create employee loyalty – having good people around us who are honest, intelligent, friendly and who treat people very well.”

MINNESOTA James Long, president, Long’s Auto Place, Inc., St. Paul, Minn.: “We’ve been in business for 38 years. “Currently we’re keeping 55 in inventory and we’re selling 30 to 35 per month. “That’s not typical inventory. We’re probably close to 50 right now, so we look pretty vacant. We look a lot better at 57 to 63. “We just had a lot of stuf going on and we also sold a

$ lot more cars than we normally do. We had a good December and a good January and didn’t replace cars as quickly as we sold them. We cleaned out a lot of aging stuf. “We’re always looking to buy cars. We’ve got two guys out on the road right now looking to buy cars. “We have a wholesale department, so that guy is buying cars at four auctions per week, plus ive new-car dealers a week. “On average we sell 28 to 37 per month. “In 2018, we were 45 percent up over 2017. But 2017 was a terrible year, so we still weren’t as good as we should have been. “We’re about 80 percent special inance. That keeps getting higher. “The average retail selling price is around $14,000. “The average model year is about 2012 and average mileage is probably 75,000. As a matter of fact, we’re right in the middle of trying to lower our average

$

USED CAR NEWS

Compiled by Jeffrey Bellant mileage on the lot. Now we won’t buy anything over 125,000 miles, where before we would do it if it made sense. We want to lower our average mileage by 15,000 to 20,000. “Inventory is 75 percent domestic and 25 percent import. “We are probably carrying 15 percent trucks, 50 percent SUVs and 35 percent cars. We are trying to get a little heavier into trucks. It’s not working, but we’ll keep trying. “The average recon costs are $563. We used to be at $480 two years ago. “We have a full service department. We just hired a second tech and we have a service manager. “For advertising, we’ll do Facebook, Craigslist and Cargurus. “We recently sold a 2013 Toyota Camry. I don’t know the mileage. I think it sold for $13,000. “I think 2019 is going to be a good year, especially for us.”

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USED CAR NEWS

February 18, 2019 • 11

WHOLESALE MARKETS Compiled by Jeffrey Bellant COLORADO Matt Read, general manager, Loveland Auto Auction, Johnstown, Colo.: “We’ve been in business for 32 years. We run four lanes. “The business has been decent. It seems like the newcar stores have been a little bit slow, but the independent used-car stores have been doing pretty good. It’s kind of weird. “The independents need cars. I always like to have more cars. Our business relects the retail side as well. “Volumes have been about average. I would say we’re getting 400 to 450 units, probably closer to 450. “I think we’re averaging 65 percent (conversion rates). We were a little of at our Feb. 1 sale at 62 percent. “(As far as weather), we’ve been pretty spoiled here this winter. We haven’t had much snow where we’re at, but the mountains and ski areas have had really good snow. “(Bidders) in the lanes

haven’t changed. I would say it’s about 250. “Basically, I would say 90 percent of our (volume) is dealer consignment. The rest are a little bit of leetlease and repos. (The nondealer volumes) have been the same. We don’t see an increase in repo volumes, though maybe others do. “Online business is deinitely up from last year. One of my guys told me the other day that last year at this time we’d only sold – some crazy number – like, 12 cars. We’re over 60 cars sold (by the irst week of February). We’re still pretty new in terms of online sales compared to many other auctions. We were late doing it. We have Auction Edge. “The average price on the block is around $5,500. “I’m not necessarily seeing any trends. We always do well with trucks and SUVs because that’s what everyone drives around here it seems like. “Last year was our best year ever. We’re hanging

right in there with last year’s start. I don’t see it much different from last year. “I want to stay on pace or a little ahead of last year.”

OKLAHOMA Kyle Clopton, director of sales/partner, Oklahoma Auto Exchange, Oklahoma City: “This is our 15th year in business. We run four lanes. “Typically, we run 700 to 800 cars every week. “On a regular week, we average between 62 and 66 percent sold, which for us is a really strong number in our region. “The oil and gas market in Oklahoma picked up, so the economy picked up and we were able to catch some of that. So 2018 was a really good year. “This year started out very well. Obviously, the government shutdown stopped some of the early tax money from coming up. But we’ve had really strong sales and active dealers buying vehi-

cles. So it’s been pretty good. “We typically have between 300 and 350 buyers every week. We’ve seen a slight increase of dealers in the lane. “I think with the economy picking up there’s more opportunity for newer dealers as well as experienced dealers. “The demand has increased from 2018 to 2019 and it’s stronger than 2017 when the market in Oklahoma wasn’t as strong. “We tend to focus on the local economy because that’s what afects us most. To put it in perspective, the state of Oklahoma (at the end of ) 2017 had a $900 million budget shortfall. Coming out of 2018, there is actually a surplus. “We are about 70 percent new-car store and independent business. The other 30 percent is a mixture of repo and leet/lease. We’ve got some really big inancial institution accounts and some really good leet/lease accounts. They’ve been good

for us and we’ve been good for them. Three out of the last four years we’ve won Leaseplan’s auction award for our region. “It appears the mix (of dealer and commercial volume) is similar to last year. I would venture to say that the repo volume is lower. We’ve been strong with our repo accounts, but it seems as if they’ve been repossessing fewer vehicles. “We are strictly an in-lane sale. We do not have an online presence. My dad has always been loyal to the dealers in Oklahoma. So we have strong buyers that show up in the lane every week. “Our average price of vehicles sold is $5,300, which is up a couple of hundred dollars over the past few of years. Our niche is $12,000 and back. We’re seeing a nicer car and seeing success in selling it. “We’ve had strong sales through the (irst week of February), but I don’t think we’ve seen a real tax season kick in yet.”

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ACTUAL WHOLESALE AND PROJECTED RESIDUAL VALUES FEBRUARY 2019

SOURCE: BLACK BOOK

2014 MODELS

2016 MODELS Recorded Figures

Recorded Figures

Projected Figures

Projected Figures

DOMESTIC CARS Buick LaCrosse Leather 4D Sedan FWD Chevrolet Cruze LS 4D Sedan Chrysler 200 Touring 4D Sedan Chrysler 300 base 4D Sedan Ford Focus SE 4D Sedan Ford Mustang base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln MKS 4D Sedan Cadillac CTS 3.6 2D Coupe Chevrolet Impala Limited LS 4D Sedan

Feb ‘18 12,550 5,750 6,800 11,800 6,000 10,550 10,400 13,800 14,750 7,350

Aug ‘16 11,450 5,900 6,650 11,650 6,350 11,300 10,100 13,000 14,350 7,550

Feb ‘19 10,000 5,750 5,950 10,100 5,000 9,350 9,250 11,450 12,100 6,150

Feb ‘20 8,825 4,500 4,850 8,625 4,425 8,225 7,850 9,550 10,525 5,175

Feb ‘21 7,250 3,650 3,925 7,350 3,775 6,825 6,500 7,700 8,600 4,325

DOMESTIC CARS Buick LaCrosse Leather 4D Sedan FWD Chevrolet Cruze LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 S 4D Sedan V6 Ford Focus SE 4D Sedan Ford Mustang base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln MKS 4D Sedan Chrysler 200 S 4D Sedan Cadillac CTS Premium 4D Sedan RWD 3.6L

Feb ‘18 17,150 9,050 12,900 18,950 8,900 13,950 14,100 20,050 11,400 28,600

Aug ‘16 17,100 10,100 13,050 18,700 9,400 15,000 13,400 19,950 11,450 27,400

Feb ‘19 15,250 8,550 12,100 16,900 8,350 13,350 13,000 17,450 10,900 24,600

Feb ‘20 13,450 7,475 10,825 14,725 7,000 11,725 10,825 13,875 8,575 21,150

Feb ‘21 10,950 6,125 9,350 12,500 5,750 10,075 8,700 10,650 6,625 17,200

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

Feb ‘18 14,100 13,750 27,750 9,850 8,300 17,300 20,200 4,850 8,050 6,550 9,200 8,550 8,800 8,100

Aug ‘16 13,250 12,250 25,250 9,850 8,550 16,700 18,100 5,400 7,950 6,050 9,450 8,050 8,400 8,100

Feb ‘19 11,650 10,700 22,150 9,150 7,700 14,100 16,400 4,950 6,800 4,950 8,800 7,150 7,150 6,950

Feb ‘20 9,550 9,250 17,450 7,875 6,725 12,100 12,475 4,025 6,250 4,525 7,600 6,575 6,275 6,375

Feb ‘21 7,575 7,750 13,350 6,650 5,675 9,975 9,350 3,300 5,250 3,950 6,525 5,725 5,125 5,375

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

Feb ‘18 18,600 19,500 13,200 10,550 25,800 8,650 10,700 8,900 12,000 10,500 12,600 11,150 52,250 28,800

Aug ‘16 17,900 18,500 14,100 10,900 23,900 8,850 10,750 8,900 12,600 10,750 11,950 11,100 49,000 26,700

Feb ‘19 15,250 16,500 12,500 10,150 20,900 8,100 9,800 8,100 11,550 9,750 10,450 10,050 41,750 26,000

Feb ‘20 13,850 14,550 10,625 8,700 17,750 6,475 8,675 6,825 10,500 9,075 8,550 8,925 33,725 20,475

Feb ‘21 12,100 11,850 8,950 7,325 14,525 4,875 7,225 5,700 9,025 7,775 6,850 7,425 25,475 15,875

TRUCKS BMW X3 XDrive28i 4D SAV Cadillac SRX Luxury 4D SUV AWD Chevrolet Equinox LS 4D SUV FWD Chevrolet Tahoe LS 4D SUV 4WD Dodge Grand Caravan SE Wagon Ford Edge SEL 4D SUV FWD Ford Explorer XLT 4D SUV 4WD Ford F150 XLT Supercab Ford Flex SEL 4D SUV FWD Honda CR-V LX 4D SUV AWD Honda Odyssey LX Wagon Jeep Grand Cherokee Laredo 4D SUV 4WD Jeep Wrangler Unlimited Sahara 4D SUV 4WD Kia Sportage LX 4D SUV FWD Nissan Murano SL 4D SUV AWD Ram 1500 SLT Crew Cab Toyota 4Runner SR5 4D SUV 4X4 V6 Cadillac Escalade base 4D SUV RWD Ford Escape SE 4D SUV FWD Honda Pilot EX-L 4D SUV w/RES Toyota Tacoma SR5 Double Cab 4X4 V6 Chevrolet Silverado 1500 LT Double Cab

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

Aug ‘16 15,950 16,975 9,150 21,100 9,450 13,050 17,750 16,300 15,300 12,550 11,750 15,300 24,750 9,550 15,375 18,600 22,800 26,100 9,850 18,625 22,950 18,900

Feb ‘19 13,950 15,075 8,300 18,300 7,800 11,300 15,000 13,850 12,700 11,500 9,975 14,050 22,450 8,650 13,175 16,400 22,050 24,300 8,950 16,300 21,150 17,000

Feb ‘20 12,475 13,575 7,000 16,250 6,675 9,975 14,075 12,500 11,675 10,350 9,725 12,275 21,850 7,375 12,375 15,675 19,975 21,450 8,075 14,700 20,500 16,125

Feb ‘21 10,325 11,475 5,450 13,400 5,300 8,050 11,725 10,525 9,300 8,700 7,975 9,925 19,850 5,625 10,175 13,875 16,875 18,325 6,575 12,000 18,325 13,775

TRUCKS BMW X3 XDrive28i 4D SAV Cadillac SRX Luxury 4D SUV AWD Chevrolet Equinox LS 4D SUV FWD Chevrolet Tahoe LS 4D SUV 4WD Dodge Grand Caravan SE Wagon Ford Edge SEL 4D SUV FWD Ford Explorer XLT 4D SUV 4WD Ford F150 XLT Supercab Ford Flex SEL 4D SUV FWD Honda CR-V LX 4D SUV AWD Honda Odyssey LX Wagon Jeep Grand Cherokee Laredo 4D SUV 4WD Jeep Wrangler Unlimited Sahara 4D SUV 4WD Kia Sportage LX 4D SUV FWD Nissan Murano SL 4D SUV AWD Ram 1500 SLT Crew Cab Toyota 4Runner SR5 4D SUV 4X4 V6 Cadillac Escalade base 4D SUV RWD Ford Escape SE 4D SUV FWD Chevrolet Silverado 1500 LT Double Cab Honda Pilot EX-L 4D SUV FWD w/RES Toyota Tacoma SR5 Double Cab V6

Feb ‘18 24,250 24,300 13,050 32,500 13,100 20,450 24,800 21,000 20,500 16,400 17,700 21,400 29,400 12,300 24,225 22,000 28,100 49,300 13,500 23,300 27,900 25,200

Aug ‘16 24,575 22,550 12,450 31,600 13,000 18,950 23,100 20,400 19,000 16,500 15,950 20,100 28,175 12,150 23,100 22,250 27,000 43,700 13,500 22,300 26,100 24,900

Feb ‘19 23,175 21,575 11,500 30,500 11,700 16,050 20,800 20,000 17,500 15,200 13,975 18,450 25,875 11,350 19,675 20,700 25,600 41,000 12,000 21,300 23,275 22,375

Feb ‘20 20,100 19,150 9,650 26,975 10,075 14,300 18,850 18,300 15,975 13,625 13,175 16,475 25,250 9,900 18,625 19,700 24,250 36,750 10,875 19,950 21,100 22,175

Feb ‘21 16,125 16,000 7,575 22,550 8,050 11,725 15,625 15,675 13,125 11,450 10,850 13,750 22,825 7,875 15,300 17,475 21,175 31,350 8,950 17,050 17,475 19,875

2015 MODELS

2017 MODELS Recorded Figures

Recorded Figures

Projected Figures

Projected Figures

DOMESTIC CARS Buick LaCrosse Leather 4D Sedan FWD Cadillac CTS 3.6 Premium 4D Sedan Chevrolet Cruze LS 4D Sedan Chevrolet Impala LS 4D Sedan Ford Focus SE 4D Sedan Ford Mustang base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln MKS 4D Sedan Chrysler 200 C 4D Sedan Chrysler 300 Limited 4D Sedan

Feb ‘18 14,100 23,300 7,100 11,850 7,350 12,650 12,750 16,700 10,250 13,350

Aug ‘16 13,650 23,600 7,550 11,750 8,450 13,550 12,650 16,350 10,650 12,850

Feb ‘19 12,600 21,000 7,000 10,750 7,250 12,050 11,700 14,600 10,150 11,800

Feb ‘20 10,575 18,025 5,925 9,550 6,100 10,500 9,850 11,875 7,825 10,350

Feb ‘21 8,650 14,650 4,800 8,200 4,975 8,900 7,825 9,275 5,900 8,825

DOMESTIC CARS Chevrolet Cruze LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 S 4D Sedan V6 Ford Focus SE 4D Sedan Ford Mustang base 2D Coupe Ford Taurus SEL 4D Sedan Chrysler 200 S 4D Sedan Cadillac CTS Luxury 4D Sedan RWD 3.6L Buick LaCrosse Essence 4D Sedan FWD

Feb ‘18 10,300 14,000 21,800 9,850 16,200 16,800 14,250 29,700 21,800

Aug ‘16 10,450 14,550 20,500 10,450 16,750 16,250 13,850 28,500 20,050

Feb ‘19 9,550 13,050 18,300 8,950 14,850 14,700 12,350 24,700 18,450

Feb ‘20 8,450 11,900 16,200 7,775 13,050 12,600 9,925 21,050 16,550

Feb ‘21 6,950 10,475 13,975 6,450 11,425 10,250 7,850 17,300 13,925

IMPORTED CARS BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata SE 4D Sedan 2.4 Lexus ES 350 base 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Lancer ES 4D Sedan Nissan Altima base 4D Sedan Nissan Sentra S 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Nissan Altima S 4D Sedan 2.5 Acura TLX Base 3.5L 4D Sdn

Feb ‘18 16,750 34,500 10,750 9,650 20,500 25,200 6,050 9,200 7,450 11,000 9,550 10,700 9,350 17,750

Aug ‘16 15,000 30,750 11,450 10,150 18,600 22,800 6,700 9,800 8,100 11,450 9,750 10,900 10,050 16,000

Feb ‘19 13,400 27,550 10,750 9,100 15,700 20,800 5,900 8,750 7,200 10,250 8,500 9,400 9,000 13,650

Feb ‘20 11,600 21,700 8,950 7,900 13,625 15,900 4,750 7,750 5,825 9,225 7,975 8,025 7,950 12,675

Feb ‘21 9,550 16,700 7,600 6,675 11,250 11,975 3,875 6,400 4,875 7,925 6,800 6,350 6,575 11,225

IMPORTED CARS Acura TLX Base 2.4L 4D Sdn Honda Accord LX 4D Sedan Hyundai Sonata SE 4D Sedan 2.4 Lexus ES 350 4D Luxury Sedan Mitsubishi Lancer ES 4D Sedan Nissan Altima base 4D Sedan Nissan Sentra S 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan Nissan Altima S 4D Sedan 2.5 BMW 7-Series 750i 4D Sedan BMW 3-Series 330i 4D Sedan Mercedes-Benz E-Class E400 2D Cabriolet

Feb ‘18 20,650 15,500 12,150 31,000 10,450 12,600 10,350 13,750 12,100 14,500 12,900 64,250 26,000 47,200

Aug ‘16 20,550 16,050 12,450 28,900 10,950 12,700 10,700 14,000 12,050 15,050 13,050 58,000 24,000 42,800

Feb ‘19 17,900 14,300 11,500 25,300 10,150 11,550 9,400 13,250 10,750 13,350 11,900 52,250 20,500 39,300

Feb ‘20 16,125 12,150 10,000 21,275 8,100 10,125 8,200 11,825 9,950 10,925 10,375 41,750 17,975 31,975

Feb ‘21 14,000 10,300 8,450 17,375 6,150 8,400 6,800 10,150 8,625 8,675 8,575 31,900 14,550 24,625

TRUCKS BMW X3 XDrive28i 4D SAV Cadillac SRX Luxury 4D SUV AWD Chevrolet Equinox LS 4D SUV FWD Chevrolet Tahoe LS 4D SUV 4WD Dodge Grand Caravan SE Wagon Ford Edge SEL 4D SUV FWD Ford Explorer XLT 4D SUV 4WD Ford F150 XLT Supercab Ford Flex SEL 4D SUV FWD Honda CR-V LX 4D SUV AWD Honda Odyssey LX Wagon Jeep Grand Cherokee Laredo 4D SUV 4WD Jeep Wrangler Unlimited Sahara 4D SUV 4WD Kia Sportage LX 4D SUV FWD Nissan Murano SL 4D SUV AWD Ram 1500 SLT Crew Cab Toyota 4Runner SR5 4D SUV 4X4 V6 Cadillac Escalade base 4D SUV RWD Ford Escape SE 4D SUV FWD Honda Pilot EX-L 4D SUV w/RES Chevrolet Silverado 1500 LT Double Cab Toyota Tacoma base Double Cab 4X4 V6

Feb ‘18 22,500 21,300 10,700 30,200 11,200 18,600 21,800 19,000 19,500 14,200 14,250 19,625 27,600 10,800 22,600 20,500 25,850 39,400 11,700 22,550 22,500 24,375

Aug ‘16 20,950 19,850 10,500 29,200 11,300 16,900 20,400 19,000 17,700 14,200 13,000 18,475 26,225 11,100 21,775 19,950 24,050 38,100 11,650 20,925 20,600 24,525

Feb ‘19 19,150 19,200 9,800 27,200 10,300 13,900 18,200 18,200 16,000 12,900 10,075 17,375 24,400 10,150 17,800 19,000 23,250 33,400 10,650 19,225 19,900 22,700

Feb ‘20 16,650 17,150 8,225 24,150 8,925 12,100 16,325 16,600 14,400 11,700 10,275 15,175 23,525 8,750 17,000 18,000 21,550 30,225 9,675 16,850 18,450 21,725

Feb ‘21 13,425 14,325 6,375 19,775 7,175 9,925 13,425 14,150 11,700 9,900 8,650 12,350 21,250 6,825 13,825 15,850 18,650 25,900 7,925 13,925 15,675 19,225

TRUCKS BMW X3 XDrive28i 4D SAV Chevrolet Equinox LS 4D SUV FWD Chevrolet Tahoe LS 4D SUV 4WD Dodge Grand Caravan SE Wagon Ford Edge SEL 4D SUV FWD Ford Explorer XLT 4D SUV 4WD Ford F150 XLT Supercab Ford Flex SEL 4D SUV FWD Honda CR-V LX 4D SUV AWD Honda Odyssey LX Wagon Jeep Grand Cherokee Laredo 4D SUV 4WD Jeep Wrangler Unlimited Sahara 4D SUV 4WD Kia Sportage LX 4D SUV FWD Nissan Murano SL 4D SUV AWD Ram 1500 SLT Crew Cab Toyota 4Runner SR5 4D SUV 4X4 V6 Cadillac Escalade base 4D SUV RWD Ford Escape SE 4D SUV FWD Chevrolet Silverado 1500 LT Double Cab Honda Pilot EX-L 4D SUV FWD w/RES Toyota Tacoma SR5 Double Cab 4WD V6 Cadillac XT5 Luxury 4D SUV AWD

Feb ‘18 29,600 15,300 34,000 16,000 23,100 28,600 22,000 20,900 18,700 20,200 24,250 31,500 14,900 27,875 23,000 30,175 54,200 15,750 25,300 30,425 28,125 34,950

Aug ‘16 26,450 14,700 33,300 15,600 20,050 26,150 22,600 20,200 18,700 18,850 22,525 30,350 14,400 25,325 23,100 28,450 52,300 15,350 25,100 28,675 28,175 32,625

Feb ‘19 24,450 13,100 31,600 13,500 17,450 23,600 21,000 18,000 17,600 18,250 21,325 27,650 13,200 22,325 22,000 27,200 47,000 13,400 22,200 26,825 26,175 27,900

Feb ‘20 21,950 11,175 28,825 12,525 16,025 21,875 19,750 17,300 15,875 16,200 19,075 27,050 11,850 20,800 20,875 26,225 42,750 12,375 21,300 23,775 25,700 24,875

Feb ‘21 18,225 8,900 24,825 10,300 13,325 18,200 17,125 14,675 13,450 13,400 16,100 24,525 9,700 17,150 18,500 23,350 36,325 10,100 18,425 19,800 23,525 20,400


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14 • February 18, 2019

USED CAR NEWS

DISCONNECTED JOTTINGS FROM Forbes Magazine tags the Sackler family fortune at around $14 billion at the end of 2017. We members of the proletariat have probably never heard of them as they move in astronomically high social circles. And they keep a secretively low proile, except in the area of philanthropy. Where they make endowments or donations, they insist that their name be attached so their social peers may recognize the muniicence of abundant generosity. They spread the money around in so many charitable categories and so far around the world, it’s tough to imagine the depth and reach of their benevolent bounty. Globally recognized institutions, especially related to the arts and medical ields have received fortunes from the hands of the Sackler family. Dropping a few names would include The Louvre, The Tate Modern, a new courtyard funded by the Sacklers, at London’s Victoria and Albert Museum

TONY MOORBY

was opened by The Duchess of Cambridge, New York’s Metropolitan Museum of Modern Art, Harvard, Oxford’s Ashmolean and so many blue-chip colleges and educational and research institutions such as Cornell, King’s College, and so on. Galleries all over the world carry this blue-chip association and the family has addresses in all the nobby neighborhoods around the globe. All this giving is dumbfounding in its extent and depth, although New York’s attorney general looked into some clever tax “accounting and engineering” very closely. Apparently they donated an antique collection at the 1920s acquisition value but claimed relief on the present day value. All this from a family of doctors. They insist on having M.D. behind their names. The doctors privately own a pharmaceutical company. In fact they’ve owned several over the years but the current one that is the fount of

their fortunes here in America is Purdue Pharma. Hardly anyone can make an association between the family and the company as the family holds a maia-like secrecy about the source of their wealth. Purdue is an unimaginably successful drug manufacturing and marketing company. They make OxyContin along with a myriad of other drugs including Fentanyl, especially those associated with ‘pain management’, a phrase adopted by their marketing department. In an era when Valium was marketed as a panacea for the ease of stress, strain and other everyday perceived needs for a medical crutch, the acceptance of an addictive, dangerous, opioid pain reliever was ripe for an audience of hundreds of thousands of potential users. A ‘slow release’ version, MS Contin, was marketed direct to doctors to subscribe by the company’s sales team as well as using all sorts of incentives – trips

to posh places for ‘pain management seminars’ – in reality, luxurious excursions to fabulous resorts with plans to maximize distribution. The company knew well of the ability to crush the pills to circumvent the slow-release characteristic and get an immediate response by snorting the resulting powder. For folks who took an ‘introductory’ course of pills but who couldn’t aford to continue, they were ofered coupons to ensure that addiction was an end result.

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. Classic Ford in a Beach Boys song, abbr. 4. Classic Chevy named ater a big cat 9. ___ pinch, 2 words 10. Four quarters 11. 180 degree maneuver, 2 words 13. Dodge SUV 15. Hellos 16. On the ___ (precisely) 17. Look ____ the hood! 20. Classic Studebakers 23. Wilson Pickett’s “_____ Sally” - from 1966 25. “Drove my ____ to the levee but the levee was dry” Don Maclean 29. SEA ___ , Seattle’s airport

30. Roulette bet 31. Appraise 33. Failed economy car of the 80s 35. Little bit 38. Parrot or puppy 39. Ford hot rod in a Beach Boys song, goes with 25 down- 3 words 43. Wis. neighbor 44. British Lady 45. Hot chocolate drink 47. Prince sang about about a little red one 50. Less dangerous 53. Car that was the title in a 1970 Janis Joplin hit, 2 words

Down 1. Ford sedan 2. Debtor’s agreement 3. Racket 4. Clash song, “Brand New ____”

We now know of the national opioid crisis, killing tens of thousands of people a year – death being the ultimate price to fund the Sacklers’ philanthropy. Going into one of their branded galleries would be like walking over the bodies of those who really paid for it. At last there are many lawsuits seeking all kinds of retribution but those wheels of justice turn so slowly as to obviate any beneit to current suferers or those who have lost love ones to murderous marketing strategies.

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Solution to this puzzle in the 3/4/19 issue. Call 1.800.794.0760 for a FREE subscription.

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