Used Car News 03/18/2019

UsedCarNews.com

March 18, 2019

Carvana Operates in More than 100 Markets

By Ted Craig

Carvana Co. continues to grow quickly.

Carvana moved into more markets in 2018 than it has ever done before in its 6–year history. That torrid pace continues this year.

The online used-car seller recently hit a milestone when it moved into its 100th market in February.

The company passed the milestone when it entered the Savannah, Ga., market.

It also moved into Hilton Head Island, S.C., Tuscaloosa, Ala., and Athens, Ga. that same day.

This is a pattern Carvana has been following lately, of moving into multiple markets at the same time.

Carvana then announced its 101st market, moving into Prescott, Ariz., and its 102nd, moving into Dayton, Ohio.

The rapid expansion seems to pay of for the company.

On its recent earning

call, Carvana executives said the latest markets saw faster growth than the earlier markets.

They also said operations in smaller markets grew faster than those in larger markets.

The most recent store-opening announcements have stressed that Carvana now buys cars from consumers in these markets along with ofering as-soon-as-next-day delivery.

The ofer to buy goes for all consumers even if they don’t purchase a vehicle from Carvana.

Mark Jenkins, Carvana’s chief inancial oicer, said on the earning call that Carvana executives see a lot of growth potential in buying cars directly from consumers.

Jenkins also sees potential in inancing customer purchases.

“Our loans have performed very well over time,” Jenkins said.

The company’s results for the fourth quarter were somewhat skewed by celebrations for another milestone.

In September, Carvana gave away $35 million worth of stock to its employees to mark the milestone of selling its 100,000th unit.

The fourth-quarter results show diferent efects of that gift.

For example, total gross proit is reported as $56.1 million, including the gift. But total gross proit per unit is reported at $2,131, excluding the gift.

Caravan sold 27,750 retail units in the fourth quarter.

It recorded revenue of $584.8 million.

Meanwhile, rival CarMax Inc. is doing its part to stay ahead of its start-up competition.

In December, CarMax an-

nounced the Atlanta rollout of a new customer-driven buying experience the company plans to scale nationwide. Through this new experience, customers can buy a car completely from home, in-store, or a combination of both.

Employees at the new center will assist customers over the phone or online to help them ind their ideal vehicle, navigate inancing, and provide any assistance needed until the customer is ready to either go to an area store for pickup or schedule a home delivery.

CarMax Inc. announced it will create more than 300 jobs at its new customer experience center opening early this summer.

Rush - Dated Material

ON THE GROW: According to press reports, Carvana plans on installing one of these vending machines in the Kansas City market. The company added more stores in 2018 than it has in its entire six-year history and plans to continue the rapid pace. Meanwhile, CarMax is working to keep up, opening a new center in metro Atlanta to boost its online sales efforts.

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Manheim M logo is a trademark of Manheim, Inc.

USED CAR NEWS

March 18, 2019 • 3

New AutoIMS CEO Combines Tech, Operations

By Ted Craig

Venkat Krishnamoorthy felt boxed in at his job at Delta Airlines.

It was 2002 and he had been working at Delta Airlines for ive years, ever since graduating with a master’s degree in chemical engineering from University of Alabama and a subsequent master’s degree in computer science from Georgia State University. He was being promoted to positions he aspired to, but the job wasn’t very hands on.

K r i s h namoorthy estimates he spent 90 percent of his time in meetings during his last year at Delta.

“It was a lot of paper that had to be moved through the slow bureaucratic chain,” Krishnamoorthy said. “I just felt like I was a small ish in a very big pond and having no tangible feedback on how my work afects the bottom line at Delta.”

So he did what anyone in his situation would do – he started sending out resumes to local companies seeking somebody with his background. The irst company that responded immediately was AASC, the parent of AutoIMS. “I had zero idea about the concept of wholesale auto auctions,” Krishnamoorthy said.

Still, the company ofered what he sought from a technology standpoint and the direction they were headed.

It was small, with fewer than 15 employees at the time.

In the irst six months as a Java development leader, Krishnamoorthy said, he delivered what would have taken three years at Delta.

Before taking the job, Krishnamoorthy met with then-CEO Don Meadows, who explained the challenges the irm faced. It was founded just a few years earlier, in 1998, by a group of competitors. This unusual origin, along with the recent dot-com bust, made many people ques-

tion AASC’s long-term prospects. Krishnamoorthy liked the interview process with Robert Williams (currently the chief software architect at AutoIMS) and liked the team dynamics.

Krishnamoorthy looked past these uncertainties and took the job. Fast forward almost 17 years with the company, AASC celebrated its 20th anniversary and Krishnamoorthy celebrated his appointment as CEO on Jan 1.

“You can now consider it one of the mainstays of the remarketing business,” Krishnamoorthy said.

“It’s been quite the success story and I am glad and fortunate to be a part of a great organization.”

“Balancing the needs of the four diferent owners is very challenging, exciting and there is a lot of opportunity here for AASC.” AASC’s owners include Manheim, ADESA, ServNet and the IAASC Group.

Krishnamoorthy said they have consistently invested in AASC despite being ierce competitors in the open market.

For its part, Krishnamoorthy said AASC makes sure everything it does, especially AutoIMS, remains neutral “like Switzerland” in the service of its ownership.

“We wake up every day thinking of the best ways to take care of all our partners, both the auctions and the consignors,” he said.

Krishnamoorthy worked irst under Meadows and then Mike Broe. Both men had careers in the car business before joining AASC. Krishnamoorthy, on paper, seems like more of a tech guy, but he considers his strength lies in operations and strategy. He credits that irst job with Delta in teaching him the importance of rigorous processes.

Krishnamoorthy moved steadily from Java lead manager to IT director, to chief information oicer and then chief operating oicer.

“As I went along, some-

“We wake up every day thinking of the best ways to take care of all our partners, both the auctions and the consignors,” – Venkat Krishnamoorthy

thing new was added every year to my portfolio, and I kept saying ‘Yes’ to the new challenges,” he said.

After becoming the chief operating oicer, Krishnamoorthy and Broe worked together to ensure there was a strong succession plan.

When Broe announced his retirement plans in late 2018, Krishnamoorthy expressed his interest in the position of CEO. The AASC Board, after a series of interviews, inally made Krishnamoorthy the permanent CEO as of Jan 1.

“Broe did everything in his capability to make sure I was well groomed for this position,” Krishnamoorthy said.

He calls Broe a “good friend, mentor and trusted partner.”

Krishnamoorthy also said, “The success of AASC is the consistent investment by our auction ownership from inception, the rich valued partnerships with existing clients over the years, and most importantly the longevity of our employees. We have a winning team that enjoys being a part of our awesome culture and keeps shaping and evolving it on a continual basis – almost like we are a startup with a day one mentality.”

There are three goals for AutoIMS to reach this year, the new CEO said. One is improving the AutoIMS mobile app. This should be ready to go in the third quarter. Second is increasing data analytics oferings. AASC had hired a data scientist in late 2017 to reach this goal and it is fully operational.

“For our customer account reviews, we now walk in with charts that are very actionable with the data leading the story,” Krishnamoorthy said.

Third is designing custom dashboards that are personalized to the way users experience AutoIMS. That’s a goal for later in the year. One skill Krishnamoorthy brings to the job is he understands the tech.

The big question he asks is how the technology can help his customers’ business needs.

“Sometimes the reality is that technology can’t solve the problem and instead it’s an operational problem,” Krishnamoorthy said, “and it is very important to make an objective determination on deining the real problem.”

After taking over the chief operating oicer mantle in 2018, Venkat Krishnamoorthy introduced a method he calls “Three Pillars” with the idea of setting the strategic roadmap and eventually driving the decisions at AutoIMS. Here is how he does it: We want AutoIMS to be the employer of choice Work-life balance Making sure we ofer great beneits We want AutoIMS to be the provider of choice Recognizing all their partners, including auctions, consignors and third parties Listen to their needs and come up with meaningful products that address the gaps We want AutoIMS to be the investment of choice Owned by four competitors – Manheim, ADESA, ServNet, Independent Auctions Providing a good ROI (return on their investment) At the all-hands company meeting during the launch on this strategy in mid 2018, there were two questions at the outset: What are we doing well?

What needs improvement?

It’s an ongoing experiment for the company and the entire employee base is energized and engaged! At company meetings, the group discusses the following: Where have we been?

What have we achieved recently?

Where do we want to go next?

4 • March 18, 2019

USED CAR NEWS

NEWS BRIEFS Manheim Rolls Out Concierge Service Nationwide

homepage and search results pages The salvage auction chain saw revwill also have a Manheim Express enue rise to $484.9 million; gross Manheim announced the national “mini-dashboard” with a quick list proit rose to $208.2 million; and net income rose to $131.4 million. launch of Manheim Express Con- of inventory and actions.

The operating results for the cierge, a service that provides dealADESA Adds Virtual Sales quarter were adversely afected by ers with a dedicated expert to help ADESA announced the launch of abnormal costs of $36.5 million, them sell vehicles through the digiVirtuaLane auctions, a live in-lane incurred as a result of Hurricane tal wholesale marketplace.

Launched in select markets auction experience that utilizes Harvey. These costs included temlast fall, Manheim Express Con- technology to create a virtual mar- porary storage facilities; premiums cierge was rolled out on a national ketplace for ADESA customers at its for subhaulers; labor costs incurred from overtime; travel and lodging scale in the irst quarter and now physical auction locations.

VirtuaLane has launched at 20 due to the reassignment of employhas coverage in all major markets across the U.S. The service re- ADESA locations in North America. ees to the afected region; and equipDealers attending a VirtuaLane ment lease expenses to handle the quires no upfront cost for dealers.

Dealers across the U.S. can now have sale participate in the same bid- increased volume, as well as cost of a Manheim Express specialist visit ding process as in a traditional in- vehicle sales.

Copart also recently announced their dealership to capture invento- lane auction. However, instead of ry they want to wholesale. Using the cars physically driving through the the acquisition of Vincent Auto SoManheim Express mobile app, the auction lanes, big-screen monitors lutions (VAS) located in Greenville, specialist will record key details, in- showcase the vehicle and its fea- Ky. VAS has been remarketing totalloss and leet vehicles in the western cluding VINs, extensive vehicle con- tures during bidding.

Before the bidding begins, custom- Kentucky region for over a decade. dition and photos using revolutionary 360-degree imaging technology. ers can view the vehicle in person The Manheim Express specialist while it is parked at the ADESA aucthen works with the dealer to inal- tion location. Just as with traditional CarMax Adds Store in South CarMax Inc. opened a new store ize listings with additional disclo- ADESA auctions, customers have sures or announcements and pro- access to detailed condition reports, in Kenner, La. This is the company’s irst store in vides recommendations on pricing photos, valuation tools and transportation for purchased vehicles. the New Orleans area and fourth in and channel options for maximum the state. CarMax Kenner is located success based on each client’s goals.

In addition to the new concierge Copart Takes Hit from Hurricane at 1601 32nd St. and has the capacity to stock approximately 340 used service, Manheim launched a seller Costs, Adds Operation Copart Inc. reported higher revehicles. desktop experience.

In celebration of the Kenner store The seller dashboard inventory turns in the fourth quarter.

opening, CarMax and The CarMax Foundation are awarding $15,000 in donations and grants to the NFLYET Boys & Girls Clubs of Southwest Louisiana.

The donation for this organization came at the recommendation of the Kenner CarMax associates.

Additionally, CarMax donated a Rigamajig to the Bastion Community of Resilience, a non-proit organization that is building a designed neighborhood in New Orleans for returning military personnel and families with lifelong rehabilitative needs.

Ituran Reports Results Ituran Location and Control Ltd. announced strong results for the fourth quarter.

Revenue was $79.2 million, up 31 percent year-over-year.

Net income was $15.2 million, up 55 percent year-over-year.

PAGE 22

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USED CAR NEWS

March 18, 2019 • 5

Kia Recalls Vehicles for Various Problems Kia Motors America recently announced several major recalls.

Kia is recalling 378,967 Kia Soul 2012-2016 vehicles equipped with 1.6L gasoline direct injection (GDI) engines.

High exhaust gas temperatures may damage the catalytic converter, possibly resulting in abnormal engine combustion and damage to one or more of the engine’s pistons and possible piston connecting rod failure.

Kia will notify owners, and dealers will upgrade the catalytic overheating protection engine control unit logic to prevent overheating of the catalytic converter. In addition, the catalytic converter will also be replaced if it has been damaged.

Depending on the extent of any damage, the engine may also be replaced, free of charge. Kia’s number for this recall is SC176.

Kia also is recalling 378,967 2012-2016 Kia Soul vehicles equipped with 1.6L gasoline direct injection (GDI) engines.

High exhaust gas temperatures may damage the catalytic converter, possibly re-

sulting in abnormal engine combustion and damage to one or more of the engine’s pistons and possible piston connecting rod failure.

Kia will notify owners, and dealers will upgrade the catalytic overheating protection engine control unit logic to prevent overheating of the catalytic converter. In addition, the catalytic con-

verter will also be replaced if it has been damaged.

Depending on the extent of any damage, the engine may also be replaced, free of charge. Kia’s number for this recall is SC176.

Finally, Kia is recalling certain 2011-2012 Kia Sportage vehicles.

The engine oil pan may leak and, if not addressed,

the loss of oil may result in engine damage.

The remedy for this recall is still under development.

Kia will notify owners beginning April 10.

Kia’s number for this recall is SC174.

Fellow Korean automaker Hyundai Motor America also is recalling vehicles for the same engine pan prob-

lem.

In the case of Hyundai, the company is recalling 120,000 2011-2013 Tucson vehicles.

Hyundai will send owners an interim letter informing them of the issue beginning March 29. A second notification will be sent when the remedy is available.

Hyundai’s number for this recall is 181.

NAAA Salutes Auction Execs for Safety Efforts The National Auto Auction Association has named KAR Auction Services President of Remarketing Services David Vignes and Cox Automotive Safety and Environmental Senior Director Kenny Jones as Warren Young Fellows.

The honor recognizing their instrumental roles in developing and promoting safety initiatives for the auto auction industry was presented during the association’s recent Safety Summit in Dallas.

NAAA bestowed the award with a $2,500 donation each in their names to NAAA’s nonprofit Warren Young, Sr., Scholastic Foundation.

A Fellow is a donor at that level, or in whose honor or memory a contribution is made in that amount, to support the scholarship organization.

The corporate auto auction executives join an group of 111 others who have been named a Fellow.

They received a gold medal, a framed commemorative certificate and will have their names engraved on a plaque of esteemed Fellows at NAAA headquarters.

Established in 2004, the foundation has raised more than $2.3 million to help students pursue higher education by awarding $52,000 in merit scholarships annually for full-time study at accredited institutions.

It was named in honor of Warren Young, Sr., a pioneer of the auto auction industry who retired after 35 years of service to his profession and NAAA. “Tasked with developing a world-class safety program for its ADESA auctions in 2012, David Vignes conceived the Safe T. Sam training program,” said NAAA President Chad Bailey. “The course of short instructional videos has become the industry standard and, thanks to KAR generously making it available free to all our

members, more than 75,000 people have been certified or recertified in auction safety.”

The program’s mascot, Safe T. Sam, is the brainchild of Vignes.

He was inspired by his 16 years as an executive with the Walt Disney Corporation prior to joining ADESA in 2007.

As the cartoon image began branding the program’s materials, Vignes felt a bigger impact could be made if the logo came alive, making personal appearances at auctions as part of the campaign. So he dressed as the character and began touring the auctions.

When his visits went viral

on social media, Vignes had a mascot costume made and Safe T. Sam was born.

Jones has devoted 26 years to safety, the last 19 years at Manheim.

In 2018, Jones oversaw a campaign that resulted in all Manheim auto auctions becoming 100 percent safety certified.

6 • March 18, 2019

USED CAR NEWS

Telsa Closes Stores, Raises Prices of Models DETROIT (AP) – When Gary Bornstein spent $52,000 for a Tesla Model 3 last summer, he did it without taking a test drive or even seeing the car that he now owns.

The Long Island, N.Y., inancial consultant did his research and ordered the car online, a process that Tesla CEO Elon Musk is gambling on being attractive to many more buyers in the future.

In February, Musk announced a radical change in Tesla’s business model. The Silicon Valley electric car maker plans to close most of its stores worldwide and go strictly to Internet sales as it tries to cut overhead so it can sell a base Model 3 for $35,000 and still make money.

Musk soon walked back plans and instead announced price hikes for most of its electric vehicles.

The company continues its shift toward online-only sales, but now says it won’t close as many stores as originally thought.

The $35,000 base Model 3 will still be available, but the company is raising prices by 3 percent on all other models.

In a iling with government regulators, Tesla now says it closed 10 percent of its stores, but a few of those will now remain open. Another 20 percent are being evaluated and some could remain open.

The company gave no numbers, but said it would close only about half the stores that it had intended to. It has 378 stores and service centers worldwide and about 100 stores in the U.S. Even eliminating that many stores is a huge risk and a major departure from

the way people now buy new vehicles in the U.S. Many states require cars to be purchased from physical dealerships so buyers typically do their research online but travel to a storefront to kick the tires, make the deal and drive away.

Still, experts say the time may be right. A tech-savvy generation that grew up ordering goods online from Amazon sight-unseen has reached car-buying age and is Tesla’s target market. But even they may be skeptical of spending so much money without getting behind the wheel, especially for a purchase second only to the cost of buying a house.

“This is a purchase that is an extended-buy purchase,” said David Koehler, a marketing professor at the University of Illinois-Chicago.

“It’s not something like you go pick up a loaf of bread, milk and you buy a Tesla. People get upset just buying clothes online that don’t it them.”

Even Musk seemed a little apprehensive on a conference call with reporters. At one point he said there’s demand for 500,000 Model 3s per year, but he also added, “I don’t know what the demand is.”

Investors also were skeptical, in part because Musk predicted a irst-quarter loss after pledging to be proitable every quarter. Shares of the company took a beating last week and closed down nearly 8 percent.

Musk, in an email to employees, wrote that 78 percent of all Model 3s were

purchased online last year rather than in a store, and 82 percent of buyers did it without a test drive. He’s also ofering to let people return the cars and get their money back within seven days or 1,000 miles after the sale.

Bornstein said spending more than $50,000 completely online

felt strange, but he read numerous reviews and sat in a Model 3 at a Tesla store near his home before buying.

“It was a bit of a weird feeling, deinitely a leap of faith,” he said. But he’s happy with the car and would make the same purchase online, even if he wasn’t near a store.

The leap of faith may not transfer to people who want one of Tesla’s more expensive models, the Models S and X, which can run well above $100,000. Bornstein said he’d be less likely to make that large of a purchase online.

Jessica Caldwell, senior analyst for the Edmunds. com auto-pricing site, said those buyers tend to be older and less apt to buy on the

Internet. But Caldwell said describe how to use national the seven-day return policy charging networks. is a way that buyers can be There’s little sure they’re not making a mistake.

“I think having that program

g i ve s them peace of mind that they can return the car if things just go sideways for them,” she said.

Tesla also will lose a chance to sell people on higher-priced vehicles or features when they come into stores, something dealers have done for generations, Caldwell said.

Another concern about Tesla exiting live sales is the company’s salespeople do a really good job.

Tesla dealerships were ranked highest in the newly released 2019 Pied Piper PSI for EVs Auto Industry Benchmarking Study, which measured treatment of electric vehicle (EV) shoppers.

Compared to the salespeople for other brands, Tesla salespeople were more likely on average to help customers understand garage-charging options, or to

data about online auto purchases.

Edmunds, which provides content to The Associated Press, has found that it takes people an average of 3.5 months to buy a car, from starting research to the inish. Most of that time is spent doing online research, Caldwell said.

And the used-car site Carvana, which does sales totally online, more than doubled its sales last year to over 94,000, even though it started selling vehicles in 2013. The company certiies the cars, ofers buyers a warranty and has a seven-day return policy.

All of this means the time may be right for the visionary Musk to make the switch, said Koehler, who pointed out that 2018 was the irst year that online sales exceeded those at traditional stores.

“He can drive revenues and reduce all that overhead with dealers,” Koehler said.

“It’s a risky decision, but what is he known for? He’s a maverick.”

Feds Look into Crash Involving Autopilot System DETROIT (AP) – A second federal agency is dispatching investigators to a fatal crash involving a Tesla electric car that drove beneath a semitrailer that was crossing a Florida roadway.

The National Highway Traic Safety Administration, which has authority to seek recalls, issue ines and set regulations, said it would send a “ield team’’ to Delray Beach, where 50-year-

old Jeremy Beren Banner was killed in the crash March 1.

The crash is eerily similar to another one involving a Tesla in 2016 near Gainesville, Fla. A diferent agency, the National Transportation Safety Board, said it would send a three-person team to the crash. The NTSB makes recommendations to prevent crashes.

Both agencies likely will be looking into whether Tesla’s Autopilot semiautonomous driving system was in use on Banner’s Tesla Model 3 at the time. Neither agency could say on March 2 whether the system was in use.

NHTSA said in a statement that it “will take additional actions if appropriate,’’ without specifying what those actions could be.

The agency also said it has

an investigation under way into a Feb. 24 fatal crash and ire involving a Tesla Model S sedan in nearby Davie, Fla. Terry Williams, a spokesman for the NTSB, said he did not know yet exactly what the agency would be investigating.

“We’re looking at everything at this point,’’ he said.

A report on the Delray Beach crash by the Palm Beach County Sherif’s Of-

ice said the tractor-trailer was making a left turn onto a divided highway to head north when the southbound 2018 Tesla Model 3 hit the semi’s driver side, tearing of the Tesla’s roof as it passed under the trailer.

The report didn’t say whether the Autopilot or automatic emergency braking systems were working at the time.

Continued on page 8

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8 • March 18, 2019

USED CAR NEWS

Autopilot – from page 6 REMARKETING ARTIST OR SCIENTIST?

12 10 8 6 4 2 0

Laura Taylor, Charleston Auto Auction

REPUTATION REAPS REWARDS INSTINCT IGNITES INNOV ATION Successful remarketers always properly represent vehicles and stand behind disclosures to increase buyer confidence and maximize returns.

They choose AutoIMS as a valued partner.

A Tesla spokeswoman would not comment immediately after the crash.

The company said in a statement that it’s cooperating in the investigation.

The circumstances of the crash are much like one that occurred in May 2016 near Gainesville.

Joshua Brown, 40, of Canton, Ohio, was traveling in a Tesla Model S on a divided highway and using the Autopilot system when he was killed.

Neither Brown nor the car braked for a tractor-trailer, which had turned left in front of the Tesla and was crossing its path.

Brown’s Tesla also went beneath the trailer and its roof was sheared of.

The NTSB, in a 2017 report, wrote that design limitations of the Autopilot system played a major role in the fatality, the irst known one in which a vehicle operated on a highway under semi-autonomous control systems.

The agency said that Tesla told Model S owners that Autopilot should be used only on limitedaccess highways, primarily interstates.

The report said that despite upgrades to the system, Tesla did not incorporate protections against use of the system on other types of roads.

The NTSB found that the Model S cameras and radar weren’t capable of detecting a vehicle turning into its path.

Rather, the systems are designed to detect vehicles they are following to prevent rear-end collisions.

For Cars, Trucks and Vans

General Motors has a similar system called “Super Cruise,’’ but it works only on limited-access highways with no cross traic.

Tesla has said that Autopilot and automatic emergency braking are driver-assist systems, and that drivers are told in the owner’s manual that they must monitor the road and be ready to take control.

In January of 2017, NHTSA ended an investigation into the Brown crash, inding that Tesla’s Autopilot system had no safety defects.

But the agency warned automakers and drivers not to treat the semiautonomous driving systems as if they could drive themselves.

Semi-autonomous systems vary in capabilities, and Tesla’s system can keep a car centered in its lane, brake to stop from hitting things and change lanes when activated by the driver.

Williams said he did not know if the NTSB would incorporate the Delray Beach crash into other Tesla investigations from last year.

Investigators are probing a fatal March 2018 crash involving a Tesla SUV near Mountain View, Calif.

That vehicle was operating on Autopilot.

In addition, the NTSB is investigating the crash of a Model S that may have been using Autopilot when it hit a parked iretruck on Interstate 405 near Los Angeles.

The driver told authorities the Autopilot was working.

NHTSA also is looking into a 2018 crash involving a Tesla Model S near Salt Lake City. Autopilot was in use when the car hit a stopped ire department truck.

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10 • March 18, 2019

USED CAR NEWS

Vehicle Prices Decline Wholesale prices for used cars and retail prices for new cars both softened in February.

The Manheim Used Vehicle Value Index fell slightly to 135.2 in February from 135.4 in January. The Index rose year-over-year, from 131 in February 2018.

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

February saw continued price depreciation similar to January and December. Prices declined in the irst few weeks of the month, but then started to stabilize. Threeyear-old vehicle values in aggregate depreciated at a faster pace than normal adding to the weak start of the year, but the most recent week points to stronger prices this month.

Manheim said all major market segments saw seasonally adjusted price gains in February on a yearover-year basis.

However, Black Book reports that by its measure, all segments except full-size vans showed a decline in February, with most luxury vehicle segments showing the largest declines.

Manheim said the most-afordable vehicles performed best in February.

Black Book’s Used Vehicle Retention Index declined to 114.5 for February, from 115.4 in January.

The Index has fallen 1 percent over the last 12 months.

“The start of the spring selling season appears to be late this year, perhaps from slower and smaller tax refunds this year, as well as the harsher-than-normal winter weather patterns across much of the country, said Anil Goyal, Black Book’s executive vice president of operations.

Retail prices for new cars were also lower in February.

The estimated average transaction price was $36,590 in February, according to Kelley Blue Book.

The AVP decreased $205 from January. However, it rose $993 from February 2018. The year-over-year increase was led by the strength in

full-size pickup trucks.

Some of the decline comes from higher incentives.

ALG estimates that average incentive spending by automakers reached $3,653 per vehicle, up $108 from January.

Incentives as a percentage of the average transaction price were at 10.6 percent, ALG reports.

While incentives increased in February, inancing deals continued to grow scarcer.

The annual percentage rate (APR) on new inanced vehicles averaged 6.26 percent in February, Edmunds reports, compared to 5.19 percent last year and 4.56 percent ive years ago.

Edmunds attributes this in part to automakers reining in zero percent inancing deals and overall low interest rate ofers. In February, zero percent inance ofers constituted 3.22 percent of all inanced deals compared to 8.28 percent last year and 6.95 percent ive years ago, and only 18 percent of shoppers received an APR under 3 percent in February, compared to 29.91 percent last year, and 45.49 percent ive years ago.

The average amount inanced for a new vehicle hit $32,071 in February compared to $31,313 in 2018 and $24,477 ive years ago.

Lease deals are especially hard to come by these days.

Edmunds found that consumers who are leasing some of the most popular vehicles and want to lease the same vehicle again will ind themselves paying as much as 26 percent more than they did in 2016, and more than $1,600 over the life of the lease on average.

Edmunds analyzed the most popular vehicles leased in the U.S. to ind the most pronounced hikes in lease costs now compared to 2016, looking at identical models and trim levels. The Toyota Camry SE had the biggest spike, costing $2,834 more on average over the course of a 36-month lease, a 26 percent increase.

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©2019 BMW Financial Services NA, LLC. MINI Financial Services is a division of BMW Financial Services NA, LLC. The BMW and MINI names, model names and logos are registered trademarks. BMW Group Financial Services is located at 300 Chestnut Ridge Road, Woodcliff Lake, NJ 07677.

Th Thank Y Tha Thank You 2019

We wish to thank all the attendees, special guests, sponsors, and speakers of the first Compliance focused conference for used car dealers, • John Brown, Carolinas IADA brought to you by the Used Car News • Will Chandler, NextGear team!

• Michael Goodman, Hudson Cook, LLP

• Bill Denius, Kilgore Pearlman P.A. • Eric L. Johnson, Hudson Cook, LLP • Joe Keadle, Automotive Finance Corporation • Steve Levine, Ignite Consulting Partners • Elizabeth Murphy, ADESA/KAR • Teri Peters, EEOC Charlotte • Greg Sparrow, CompliancePoint • Jack Tracey, NAF Association • Nora Udell, Hudson Cook, LLP

Thank You!

hank You! You! Thank You ank You! u!

Thank You!

14 • March 18, 2019

USED CAR NEWS

PEOPLE IN THE NEWS Auctions Hire National Accounts Director Dealers Auto Auction of the Rockies & Dealers Auto Auction of the Southwest have hired Shelly Frank as director of national accounts.

Frank will serve both the Colorado and Arizona markets.

Frank spent 12 years working with auto auctions in business development and operations. She spent another 15 years working in auto inance, managing repossession and remarketing processes for various lenders.

Frank most recently worked with Tom Stewart, president of Auction Management Solutions, where she was the business development manager.

ADESA Taps Managers ADESA recently announced several chang-

es at both the corporate and auction level.

ADESA named Kurt Madvig as vice president of product development.

Madvig will lead a team focused on the development, launch and delivery of products, services and solutions that streamline and enhance the ADESA customer experience.

Madvig brings 30 years of automotive remarketing industry experience to his new role. He joined ADESA as an auction general manager in 2001 at ADESA Long Island, a greenield location at the time. Soon after its launch he was transferred to ADESA San Diego.

Madvig most recently served as vice president of auction operations, where he played an integral part in the opening of ADESA’s state-of-the-art Chica-

go location. Madvig has been an active member of the National Auto Auction Association and currently co-chairs the NAAA Standards Committee.

Joining the ADESA

additional protection products. As director of inspection services, Murdock is responsible for ensuring thorough inspections as well as creating new inspection oferings. Senior

Lawrence Cubitt

Kurt Madvig

product development team under Madvig’s leadership are Eddie Ammar, Jason Murdock and Colleen McCormick-Shankle.

Ammar, senior director of protection products, will oversee ADESA Assurance and the development of

project manager McCormick-Shankle will oversee new product launches and implementations.

ADESA named Lawrence Cubitt as regional vice president of the ADESA West region.

Cubitt began his re-

marketing career more than 20 years ago as remarketing manager for a rental car company in Detroit. For the past 14 years, Cubitt has served as general manager at ADESA Flint.

Jay Hinchman has been named general manager of ADESA Las Vegas. Hinchman has stepped down from his role as regional vice president of the West region to spend more time with his family.

He joined the auction chain in 2008 and served as general manager at ADESA New Jersey before moving to ADESA Las Vegas in 2014.

ADESA also announced several management changes at its auctions.

Ed Burton has been named general manager of ADESA Birmingham. Burton joined ADESA in 2013 as general sales manager at

ADESA Washington, D.C. Chris Beyer has been named general manager of ADESA Little Rock.

Beyer began his career at ADESA in 2018 as assistant general manager of ADESA Little Rock. Beyer replaces Angela Sims, who retired at the end of 2018.

Todd Hoagey has been named general manager of ADESA Orlando.

Hoagey most recently served as CEO of Auction Direct USA Used Vehicle Superstore, a company Hoagey cofounded in 2005.

Mike DeForest has been named general manager of ADESA Tulsa. DeForest was previously general manager of ADESA Mercer.

Chris Angelicchio, general manager of ADESA Pittsburgh, has added responsibility for ADESA Mercer.

16 • March 18, 2019

RETAIL MARKETS IOWA Jef Schneider, owner, Pocahontas Sales & Service, Pocahontas, Iowa: “We’ve been in business 16 years. I have one location.

“I keep about 60 to 70 on the lot. If I ever get down to 50 or less, I usually go out and buy 20 more and pack them in here.

“I sell between 25 and 30 per month.

“We do about, maybe, 5 percent buy-here, pay-here, 45 percent prime and 50 percent subprime.

“I usually get my inventory through dealer auctions.

I use ADESA for a lot of cars. Manheim just started an auction in Iowa where I went down and bought seven or eight the irst time I went there.

“Otherwise, I buy online or use Des Moines Auto Auction.

“I think the average retail price on the lot is $9,500.

“Our average model years are 2008 through 2010 or 2011.

“Average mileage is be-

tween 100,000 and 120,000.

“The one challenge we have is dealing with rust (on cars).

“I don’t have very many imports.

“Crossovers are the biggest seller, trucks would be the second biggest seller and then cars.

“On average I’ll book out between 70 and 100 cars that are going to be at an auction that’s running 500 or 600. When I get there, I go through them all as fast as I can before the sale. I’ll end up marking of half of them for diferent reasons.

“The ones that I buy have to be super clean and I’ll pay more. (Or) they can be terrible – with a door kicked in– so I can buy them right and get them back here and recondition them.

“My average reconditioning cost is between $550 and $600. It might be a little more because of tires.

“I sub out the body work and do the rest here.

“I have a busy shop with seven hoists and four good

techs. We’re booked out all day every day. That’s my cash low.

“For advertising, we do radio and newspaper. I recently stopped using a lot of (third-party digital sites).

“I recently sold a 2010 Chevy Traverse. It had 168,000 miles. It sold for $6,900.”

OREGON Doug Blizzard, owner, Blizzard Motors, Portland, Ore.: “We’ve been in business 25 years. I have one location.

“I keep about 30 in inventory. That’s typical for this time of the year.

“I sell about 15 per month.

“I acquire vehicles everywhere. I have very few auction cars. Mostly they are from previous customers.

We’ve been around so long that most of the cars ind us.

We use wholesalers and referrals from a lot of people who know us.

“We do almost no subprime.

$ “Our average retail price is $17,000 to $25,000. The average model years are going to be seven years old and newer. Our average miles are anywhere from 40,000 to 60,000.

“We’re a Mercedes, Jag, Porsche and BMW kind of place. That’s always been our business model. But we have moved to a lessermileage, newer model-year over the years because we’re trying to grow with our customers.

“A lot of cars that we acquire are niche-type cars.

“We carry almost all cars.

I’m not a truck person.

“It’s almost all imports here, maybe 5 percent are domestic – like a Cadillac, Mustang or Corvette.

“Our average recon is $1,300 to $1,500. We get a little picky. Everything goes out for service, so every car we carry is reconditioned to a new-car status.

“We do our recon inhouse. Recon costs are deinitely going up. Paint and bodywork are ungodly ex-

$

USED CAR NEWS

Compiled by Jeffrey Bellant pensive now.

“For advertising we have a website. We also do Cars. com, Autotrader.com and Craigslist. We’re also going to start doing some Facebook stuf, which makes me want to jump on my sword.

When I go on Facebook, I don’t want to see what you’re eating at a restaurant.

“One recent car I sold was a 2014 BMW X6 – an SUV. It had 77,000. We sold that for somewhere north of $26,000.

“Last year was challenging for us. I sold my primary dealership (building) so I’m at a temporary building until my new store is inished.

It’s probably going to take another eight months. You ever wake up and instead of looking at your email, you start writing checks? That’s what it’s like.

“This year has me kind of sleeping with one eye open.

The reason I sleep with one eye open is that, even though I don’t see a bust in the market, I really think it’s going to latten out.”

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18 • March 18, 2019

USED CAR NEWS

WHOLESALE MARKETS Compiled by Jeffrey Bellant FLORIDA Eric Wagner, general manager, BSC America’s Tallahassee Auto Auction, Tallahassee, Fla.: “We’ll be celebrating our 35th anniversary this year.

“We run three lanes right now. We have a fourth lane that we have that we are looking to open up at some point this year.

“The volumes have been steady. There’s been a little bit of a decrease in dealer volume. The inventories for dealers were getting kind of tight late last year and then Hurricane Michael came through. The numbers I’ve heard is that 40,000 to 60,000 cars were lost or totaled. That took a lot of cars that potentially would have come to the auction.

“We’re averaging about 400 units. Last year we were doing closer to 450.

“Conversion rates are good because of the supply-anddemand. Recently we had a 70-percent sale.

“The number of dealers in-lane and online simul-

cast that we’re averaging is roughly around 250. Sales have increased online as well as participation. We’re trying to (provide) every vehicle with pictures and a condition report. By increasing the number of cars that have pictures and condition reports, it gives people more information online so they are more comfortable (bidding).

“Right now, the breakdown in volume is probably 65 percent dealer and 35 percent commercial. The percentage of dealer consignment has grown.

“Across the block, our average price for dealer consignment is right around $4,200.

It has gone up. Our average leet-lease price luctuates between $7,500 and $9,000.

“We also have a ‘bargain lane.’ It’s something we started last year. It runs prior to our regular sale. Those are $500-and-less cars that run.

Then we run the in-op cars, sold on simulcast through a theater sale.

“We’ve been running the

‘bargain lane’ twice a month.

But we’re probably going to eventually go weekly.

We’re averaging about 60 to 65 monthly in the ‘bargain lane.’ The in-op sale averages around 25.

“I think 2019 is going to be a good year. We’re making some major improvements to the facility and property. ”

MONTANA Jake Gertsch, sales manager, Auto Auction of Montana, Billings, Mont.: “We’ve been in business about 16 years.

“We have four lanes, but we’re set up with a doubleblock for two of those lanes, so we can run six lanes.

“Obviously, since we’re in the winter, we’re running four lanes.

“We’re running 600 to 700 cars per week. It’s probably down a little bit compared to this time last year.

“It seems like it’s been a little bit tougher for businesses to get through the winter months this year. It’s the coldest February for us

in 30 years and the second coldest ever. We got a foot of snow (in the irst week of March).

“We sell about 30 percent online consistently. When we get the cold weather and the storms, it might be more than that.

“We always try to keep (conversion rates) at 50 percent. On Feb. 20, we had a 57 percent sale, so the market was good.

“We’ve got one lane (dedicated) to leet-lease. That’s typically got 150 to 200 cars in it. We sell GM Financial, Wells Fargo, LeasePlan, ARI, Enterprise and Hertz.

“The leets are kind of the bread-and-butter because they are steady.

“We also have our own transporter.

“In the lane and online combined, we’ll have between 220 and 240 dealerships represented (as bidders). We are hooked up with Edge Pipeline.

“We have a GSA sale, which slowed down in the winter months. So during

those months, we might do an online-only sale.

“We do all the pickup on those GSA cars. Once it picks up, we’ll have those sales two a month, with 60 to 80 vehicles.

“Our average price in the lanes is between $17,000 to $20,000.

“Retail has been pretty good, though the weather does afect that, too.

“Online is the big push.

Some things are going to online-only auctions. I think that’s true even on the retail side of it. Now, dealers sell vehicles all the time on a website where they haven’t even met the people. Ten years ago no one would ever even have dreamed of it.

“Last year was a good year.

We’ve added to our transport leet and we’re actually building a brand new 30,000-square-foot detail shop.

“We’re feeling awesome for spring. We feel it’s going to be a great year for the auction and the auto industry, in general.”

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April 2019

Chase High Lines, featuring: 1 1

ADESA Boston April 5, 12, 19 508-626-7000

ADESA Salt Lake April 2, 16, 30 801-322-1234

Manheim New Jersey April 3, 17 609-298-3400

ADESA Boston April 12 508-626-7000

Manheim Dallas April 16 877-860-1651

Manheim Palm Beach April 10 561-790-1200

ADESA Brasher’s April 2, 16, 30 916-991-5555

ADESA Tulsa April 12 918-437-9044

Manheim New Orleans April 17 985-643-2061

ADESA Golden Gate April 23 209-839-8000

Manheim Milwaukee April 3 262-835-4436

Manheim Pennsylvania April 11, 25 800-822-2886

ADESA Charlotte April 11, 25 704-587-7653

ADESA Washington DC April 3 703-996-1100

Manheim Orlando April 2, 9, 16, 23, 30 800-337-8491

Manheim Atlanta April 24 404-762-9211

Manheim Nashville April 10 877-386-5004

Manheim Riverside April 4, 18 951-689-6000

ADESA Chicago April 5 847-551-2151

Columbus Fair AA April 10, 17 614-497-2000

Manheim Palm Beach April 10 561-790-1200

ADESA Cincinnati/Dayton April 9 937-746-4000

Manheim Atlanta April 11, 24, 25 404-762-9211

Manheim Pennsylvania April 11, 12, 25, 26 800-822-2886

ADESA Golden Gate April 9, 23 209-839-8000

Manheim Dallas April 3, 16, 17 877-860-1651

Manheim Phoenix April 4, 11, 17, 18, 25 623-907-7000

ADESA Boston April 5, 19 508-626-7000

Manheim Atlanta April 25 404-762-9211

Manheim Orlando April 9, 23 800-337-8491

ADESA Houston April 10, 24 281-580-1800

Manheim Denver April 3 800-822-1177

Manheim Pittsburgh April 3 724-452-5555

ADESA Charlotte April 25 704-587-7653

Manheim Dallas April 3 877-860-1651

Manheim Pennsylvania April 12, 26 800-822-2886

ADESA Indianapolis April 9, 23 317-838-8000

Manheim Detroit April 11, 25 734-654-7100

Manheim Riverside April 2, 4, 16, 18, 30 951-689-6000

ADESA Chicago April 5 847-551-2151

Manheim Detroit April 11 734-654-7100

Manheim Pittsburgh April 3 724-452-5555

ADESA Jacksonville April 25 904-765-1004

Manheim Fredericksburg April 4, 18 540-368-3400

Manheim Seattle April 10, 24 206-762-1600

ADESA Golden Gate April 9 209-839-8000

Manheim Fredericksburg April 18 540-368-3400

Manheim Riverside April 2, 16, 30 951-689-6000

ADESA Kansas City April 9, 23 816-525-1100

Manheim Milwaukee April 3, 17 262-835-4436

Manheim Southern California April 11, 25 909-822-2261

ADESA Houston April 24 281-580-1800

Manheim Nashville April 3, 17 877-386-5004

Manheim Seattle April 24 206-762-1600

ADESA Lexington April 18 859-263-5163

Manheim Minneapolis April 24 763-425-7653

Manheim Tampa April 4 800-622-7292

Columbus Fair AA April 17 614-497-2000

Manheim New Jersey April 3, 17 609-298-3400

Manheim Tampa April 4 800-622-7292

ADESA New Jersey April 11, 25 908-725-2200

Manheim Nashville April 3, 10, 16, 17 877-386-5004

Southern AA April 3 860-292-7500

Chase High Lines, featuring:

2 2

3

Chase High Lines, featuring:

4

ADESA Boston April 19 508-626-7000

Manheim Detroit April 25 734-654-7100

Manheim Pennsylvania April 12 800-822-2886

ADESA Salt Lake April 2, 16, 30 801-322-1234

Manheim Fredericksburg April 4 540-368-3400

Manheim Pittsburgh April 3 724-452-5555

ADESA Boston April 12 508-626-7000

Manheim Dallas April 16 877-860-1651

Manheim Palm Beach April 10 561-790-1200

Columbus Fair AA April 10 614-497-2000

Manheim Milwaukee April 17 262-835-4436

Manheim Seattle April 24 206-762-1600

ADESA Golden Gate April 23 209-839-8000

Manheim Milwaukee April 3 262-835-4436

Manheim Pennsylvania April 25 800-822-2886

Manheim Dallas April 17 877-860-1651

Manheim New Jersey April 17 609-298-3400

Manheim Southern CA April 11 909-822-2261

Manheim Atlanta April 24 404-762-9211

Manheim Nashville April 10 877-386-5004

Manheim Riverside April 4 951-689-6000

Manheim Denver April 3 800-822-1177

Manheim Orlando April 2, 30 800-337-8491

Southern AA April 3 860-292-7500

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.

3

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”).

4

The tradename “Maserati Capital USA” (MCUSA) as well as the Maserati Trident and Maserati Capital USA logos are owned by Maserati S.p.A. or its affiliates and are licensed to JPMorgan Chase Bank, N.A. (“Chase”).

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 (19-004) 4/19

ACTUAL WHOLESALE AND PROJECTED RESIDUAL VALUES MARCH 2019

SOURCE: BLACK BOOK

2014 MODELS

2016 MODELS Recorded 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

Mar ‘18 12,050 5,900 6,750 12,000 6,200 10,550 10,150 13,700 14,550 7,400

Sep ‘18 11,350 6,150 6,650 11,250 6,100 11,050 10,200 12,900 14,350 7,050

Mar ‘19 9,650 5,400 5,750 9,750 4,900 9,150 9,150 11,150 11,800 5,800

Mar ‘20 7,925 4,325 4,550 8,375 3,925 7,775 7,675 9,000 9,800 4,975

Mar ‘21 6,750 3,650 3,700 7,225 3,400 6,625 6,525 7,300 8,125 4,225

IMPORT 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

14,050 13,250 27,250 10,050 8,250 17,000 19,800 4,900 8,000 6,550 9,800 8,350 8,100 8,150

13,050 12,050 24,900 10,150 8,500 16,100 18,000 5,550 7,900 6,150 9,500 8,000 8,400 8,050

11,550 10,250 21,500 8,900 7,450 13,800 15,800 4,400 6,700 4,750 9,250 7,350 6,900 6,850

9,100 8,475 16,700 7,550 6,250 11,450 11,950 3,675 5,700 4,225 7,825 6,300 5,700 5,850

7,250 7,150 13,000 6,550 5,400 9,550 8,975 3,075 5,050 3,850 6,675 5,625 4,900 5,200

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

18,350 17,575 9,800 22,500 9,700 13,950 18,900 16,000 16,500 12,550 12,200 16,650 25,250 9,450 15,675 19,500 23,600 27,500 10,100 19,550 22,675 19,500

15,450 16,625 9,050 20,000 9,400 12,900 17,650 15,650 15,100 12,300 12,275 15,100 24,800 9,600 14,750 18,500 22,600 26,000 9,850 18,500 22,950 18,800

13,200 14,375 7,950 18,300 7,400 11,250 14,500 13,300 12,000 11,450 9,800 13,800 22,125 8,500 12,625 15,900 21,700 24,200 8,700 16,125 20,875 17,000

11,450 13,125 6,675 15,925 6,325 10,000 12,950 12,300 10,725 10,025 8,700 11,900 20,975 7,200 11,325 14,975 19,000 21,400 7,500 14,100 19,575 15,225

9,750 11,425 5,300 13,175 5,100 8,225 11,200 10,475 8,750 8,475 7,225 9,825 19,275 5,675 9,525 13,275 16,100 18,450 6,225 11,625 17,625 12,850

2015 MODELS

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

Projected Figures

Mar ‘18 17,050 9,150 13,000 19,050 9,150 14,050 13,550 20,100 11,400 28,400

Sep ‘18 17,150 10,100 13,300 18,800 9,700 14,750 13,550 19,800 11,550 27,100

Mar ‘19 15,050 8,500 11,800 16,500 8,150 13,250 12,750 16,750 10,700 24,000

Mar ‘20 12,250 7,000 10,525 14,125 6,325 11,425 10,750 12,900 8,025 20,000

Mar ‘21 10,300 6,025 9,250 12,150 5,250 10,000 8,850 9,900 6,125 16,525

IMPORT 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

18,500 19,000 13,200 10,750 24,800 8,450 10,900 8,850 12,300 10,350 12,400 11,250 51,750 28,400

17,600 18,250 13,900 11,200 23,900 8,650 11,000 9,200 12,800 10,900 12,100 11,350 48,500 26,900

14,350 16,000 11,950 9,850 20,000 7,550 9,600 8,050 11,550 9,850 10,150 9,850 40,250 24,800

12,900 13,100 10,150 8,225 16,750 5,725 8,075 6,550 10,025 8,400 8,025 8,300 31,350 19,950

11,525 10,775 8,825 7,050 13,875 4,425 7,025 5,600 8,725 7,425 6,700 7,225 24,175 15,725

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

24,200 23,775 13,150 31,800 13,000 19,850 24,400 21,000 19,000 16,500 16,775 21,575 28,700 12,100 23,825 21,500 28,100 47,000 13,350 22,500 27,350 25,100

24,675 22,925 12,450 31,500 13,200 18,850 23,000 21,400 18,800 16,250 16,900 20,050 28,400 12,300 22,600 23,000 26,750 43,500 13,450 22,500 25,975 24,975

22,475 20,875 10,800 29,500 11,500 15,850 20,100 19,900 16,800 14,900 13,600 18,050 25,600 11,050 18,650 20,500 25,300 39,500 11,550 21,300 22,775 22,250

18,725 18,525 9,175 26,775 9,750 14,300 17,875 18,225 15,550 13,100 11,950 16,200 24,025 9,725 16,825 19,125 22,925 35,450 10,250 19,075 20,250 21,025

15,375 15,950 7,375 22,350 7,850 11,975 15,275 15,625 13,225 11,125 9,900 13,750 21,950 8,000 14,200 16,950 20,125 30,800 8,575 16,075 16,925 18,975

2017 MODELS Recorded 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

Recorded Figures

Projected Figures

Recorded Figures

Projected Figures

Mar ‘18 14,000 23,100 7,300 12,000 7,550 12,750 12,500 16,850 10,400 13,200

Sep ‘18 13,450 23,400 7,800 11,950 8,750 13,350 12,800 16,250 10,950 13,150

Mar ‘19 12,550 20,700 6,750 10,600 6,850 11,650 11,400 14,000 9,950 11,450

Mar ‘20 10,125 17,175 5,500 9,350 5,450 9,975 9,425 11,000 7,375 9,875

Mar ‘21 8,450 14,150 4,675 8,150 4,500 8,675 7,725 8,600 5,550 8,575

IMPORT 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

16,250 33,750 11,050 9,900 19,300 24,800 6,550 9,350 7,450 11,300 9,450 10,800 9,500 17,450

14,950 30,100 11,550 10,200 18,300 22,400 6,700 9,850 7,950 11,650 9,850 10,900 10,100 15,700

13,000 26,500 10,400 8,800 15,800 20,100 5,350 8,550 6,900 10,300 8,350 9,100 8,800 13,250

10,600 20,775 8,825 7,375 12,775 15,350 4,425 7,150 5,600 8,925 7,150 7,225 7,350 12,050

8,800 16,225 7,650 6,325 10,675 11,575 3,650 6,175 4,775 7,750 6,375 6,025 6,375 10,900

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

22,450 20,700 10,800 29,500 11,000 18,050 21,700 19,000 18,500 14,300 13,850 20,100 26,775 10,700 22,150 20,000 25,750 39,000 11,450 21,750 22,000 24,275

20,850 20,250 10,650 29,100 11,300 16,650 20,300 19,650 17,500 13,950 13,400 18,825 26,525 11,150 21,400 20,000 23,850 38,000 11,650 20,800 20,700 24,625

18,350 18,500 9,400 27,600 9,850 13,900 17,800 17,500 14,800 12,700 10,525 17,075 23,900 10,000 16,950 18,800 23,000 32,800 10,350 18,900 19,900 21,925

15,500 16,600 7,900 23,875 8,450 12,350 15,600 16,125 13,350 11,250 9,225 14,825 22,600 8,575 15,125 17,575 20,575 29,550 9,000 16,650 17,700 20,525

12,825 14,300 6,300 19,500 6,875 10,325 13,175 13,850 10,925 9,625 7,850 12,275 20,600 6,900 12,650 15,550 17,850 25,975 7,500 13,775 14,800 18,325

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

Projected Figures

Mar ‘18 10,350 14,250 21,100 10,100 16,000 16,850 14,250 29,800 21,000

Sep ‘18 10,750 14,650 20,550 10,250 16,400 16,450 13,000 28,200 20,400

Mar ‘19 9,550 12,850 17,900 9,350 14,550 14,500 12,050 24,200 17,750

Mar ‘20 7,900 11,675 15,575 7,300 12,950 12,325 9,250 20,300 14,975

Mar ‘21 6,825 10,450 13,575 6,050 11,500 10,275 7,275 16,825 13,000

IMPORT 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

20,550 15,450 12,350 30,000 10,200 12,750 10,000 14,050 12,050 14,350 13,100 63,750 25,500 46,800

20,250 15,950 12,750 28,500 11,100 12,900 10,900 14,200 12,050 14,600 13,250 57,250 23,500 43,000

17,500 13,700 11,200 25,000 9,900 11,250 8,800 13,100 11,000 13,050 11,600 50,250 19,750 38,500

15,500 11,700 9,375 20,600 7,300 9,450 7,450 11,375 9,425 10,225 9,700 39,700 16,000 30,725

13,650 10,150 8,050 16,875 5,625 8,175 6,400 9,875 8,375 8,450 8,375 30,800 13,075 24,150

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

29,550 15,400 34,000 16,000 21,000 28,500 22,500 20,000 18,500 19,700 24,150 31,150 14,600 27,475 22,500 29,100 54,000 15,400 24,000 29,925 28,025 34,750

26,450 14,550 33,200 15,800 19,650 26,350 22,800 20,000 18,450 19,850 22,625 30,175 14,550 24,975 23,100 28,250 51,000 15,300 25,000 28,725 28,250 32,075

23,650 12,000 31,600 13,100 17,300 22,900 20,900 16,800 17,350 16,800 21,225 26,875 12,750 21,300 21,500 27,000 45,400 13,050 22,200 26,500 26,025 27,000

20,550 10,375 28,775 11,625 15,700 20,575 19,350 15,900 15,300 14,925 19,025 25,500 11,500 19,100 20,075 24,925 40,400 11,450 20,200 23,350 24,950 23,275

17,475 8,525 24,700 9,750 13,425 17,675 16,750 13,725 13,100 12,400 16,275 23,475 9,725 16,125 17,825 22,275 35,125 9,600 17,250 19,525 22,900 19,475

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www.NIADACONVENTION.com

22 • March 18, 2019

USED CAR NEWS

DISCONNECTED JOTTINGS FROM Nexit. The National Auto Auction Association is breaking away from joint meetings for their national annual convention and going it alone; this year in Indianapolis. It’s like “Leaving Las Vegas!” We were in Indy a few years ago and I wasn’t particularly enamored of the prospect of the visit and we ended up having a great time – I didn’t know you could have so much fun legally. I even wrote an article about it.

Of course, as a smaller group, there are more options to choose cities that can accommodate fewer participants. I think a destination can make a meeting more memorable.

Don’t misunderstand me.

Las Vegas has the large convention packaging down pat and looks after masses of people with something for every appetite. Talking of which, the convention food service in the huge hotels made the move from “rubber chicken” to delightful delectations a good few years ago.

TONY MOORBY

They had to, as the quality of many destination restaurants would grace “The Michelin Guide.” But gone too are the times of the all-day, $12.99, all-you-can-eat buffets. A visit to a celebrity chef’s restaurant requires a successful visit to the gaming tables to fund the exercise.

So joint meetings have been well served in that eponymous city, well known for its gatherings and I believe the NAAA has beneitted from broader audiences of owners and users. Having been a member of a couple of auction groups, large meetings ofered opportunities to learn a great deal from many customers, in a relatively short time. Mind you, I realize we all have to keep up with the mass of new technology and the constantly changing face of the industry but there does come a point at which repetition sets in. If the meetings are in the same place, at the same time they tend to add to the blur of similarity.

Years ago I used to host “propeller head” meetings – a few people from every level of the company to contribute to new ideas and forge the future together. They were held in all kinds of diferent places – the Mayor of Nashville’s oice, a watermill in the country, a golf course club house (I’ve yet to see an ugly golf course) and anywhere that would stimulate the imagination of the members and stretch minds to invite new thinking.

It’s my understanding that the Independent Auction Group pressed for the change and it shows that their concerns and authority still carry weight within the industry itself. To a great extent, the character of the individual members has shaped the whole business over the years – I’ve said before that the auctions combined are a huge industry but act like a small business.

It’s wise to keep a foot in as many camps as possible and joint meetings would still

serve to educate.

Frank Hackett, as CEO of NAAA, along with all his colleagues, continues to walk a diplomatic tightrope with style and dexterity, looking out for the best interests of the membership.

The spring meeting of CAR, along with the International Automotive Remarketers’ Alliance gives golden opportunities to reach even beyond the huge market that is the USA. Clear minds and lateral thinking will bring fresh approaches to handling a changing product

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

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Solution to this puzzle in the 4/1/19 issue. Call 1.800.794.0760 for a FREE subscription.

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and that product’s efects on the market with its evolving technologies. So strong, mutual support of old alliances and relationships will ensure the health of all the players.

Convening in diferent parts of the country should whet appetites for change.

Maybe the idea to meet in another country – the UK’s been done before – time for a revisit? One only wishes that Brexit could be as smooth!

More on that subject as the smoke clears (if it ever does) and deadlines are passed.

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Solution to the 3/4/2019 puzzle

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