Used Car News 06/17/2019

UsedCarNews.com

June 17, 2019

Manheim Launches Digital Auction

LOOK MA, NO CARS: Bidders at Manheim Tucson stand in the lanes and bid on vehicles presented on video screens. The all-digital auction is a first for a chain operation. Initial dealer response shows support for the concept.

Manheim debuted its irst all-digital auction with a ribbon cutting at its Manheim Tucson location.

The new four-lane format is a live auction where vehicles remain parked in designated spots and are ofered for sale digitally by an auctioneer via oversized monitors featuring enhanced images, barcode price scanning capability and condition report information.

“Bringing the excitement of the auction to clients in a live, all-digital format is a key move in our broader digital strategy,” said Manheim President Grace Huang. “With advanced vehicle information and im-

aging, we are able to deliver digital solutions that create greater conidence and eiciencies while delivering a safer auction experience for everyone.”

The inaugural sale included more than 300 online and in-lane bidders and achieved an approximate 76 percent sales conversion rate.

Manheim Tucson predominantly handles dealer vehicles under $5,000. Manheim Tucson was chosen to prove that an all-digital auction could appeal to all types of buyers and work for all vehicle price points by creating a digital experience as close as possible to a physi-

cal sale.

The location ran its digital debut grand celebration on June 5, when the team ran a Total Resource Auctions sale at 9:30 a.m. and its regular sale at 10 a.m.

Initial dealer response shows support for the concept.

“I see the beneits and eiciency of digital lanes. No emissions in the lanes, and the increased safety that comes with moving to a digital auction help prevent accidents from happening in physical lanes,” said Vinnie Da Cruz of Simply Sell it Now in Tempe, Ariz.

“In an industry such as the resell-

ing of automobiles, to not accept technological growth is almost certain death.”

Wail Abushaar, dealer principal at Pioneer Automotive in Tucson, Ariz., gave Manheim credit for trying a new approach.

“I think going with digital auctions – without driving the cars through the lanes – is a brave move the rest of the auction industry will look up to,” Abushaar said.

While this is a irst for a chain auction, independent Quincy Auto Auction in Masschusetts switched to a digital format in 2017.

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USED CAR NEWS

June 17, 2019 • 9

NIADA Past Presidents Look Back, Offer Advice

By Jeffrey Bellant

Alabama’s Henry Mullinax is the 72nd president of the National Independent Automobile Dealers Association and several of his predecessors say he’s the right man for the job.

Each NIADA president faces a unique set of challenges and Mullinax is no diferent – except he started his term a few months early.

Mullinax took the reins after the Jan. 31 resignation of his predecessor Andy Gabler, who faces legal issues involving his businesses following an FBI raid in January.

Several other past presidents said Mullinax is a great representative for the industry. Their stories show that challenges come with the job, as well as successes.

Keith Hagler, owner of Taylor Auto Credit, in Taylor, Texas, became president in 2013-2014.

“The reason why I wanted to be NIADA president was to get buy-here, pay-here dealers more involved,” he

said. “That was my main goal.”

But as almost every NIADA president learns – change happens.

“I was there during the

Hagler didn’t want to see Linn go, but was won over by the new CEO. “Once I talked to Steve Jordan for 30 minutes, I told Mike, ‘We’re good,’” Hagler

form for those dealers and working toward friendlier legislation and regulation for that market “We started the Buy-Here.

Pay-Here Commission while

to hold the title of NIADA president.

Moss said when she joined the Virginia IADA, there were very few women involved.

Photos by Jeffrey Bellant HAIL TO THE CHIEFS: Past NIADA president Tim Swift (from left), along with NIADA CEO Emeritus Mike Linn, past president Sandra Moss, and new President Henry Mullinax with his wife, Lona, are pictured at previous NIADA annual conventions.

transition when NIADA CEO Mike Linn retired and new CEO Steve Jordan came in,” Hagler said. “I was really concerned about it. Nobody wants to be in the middle of a transition.”

said. “I knew right then that Steve would be able to handle it.”

Since Jordan had a buyhere, pay-here background, it also it in with Hagler’s vision for getting a bigger plat-

I was president,” Hagler said. “Everybody bought into that.”

Sandra Moss, a partner with her husband Bill at Moss Motor Co. in Dillwyn, Va., is one of two women

“There were some men who weren’t very happy that I was even attending the board meetings instead of going of to the women’s auxiliary meetings,” she said.

Continued on page 5

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4 • June 17, 2019

USED CAR NEWS

NEWS BRIEFS NextGear Thanks Dealers By Forgiving Loans

30, revenue, gross proit, and net income were $553.1 million, $251.6 million, and $192.7 million, respectively. These represent an increase in revenue of $74.9 million, an increase in gross proit of $32.5 million and an increase in net income of $65.4 million, respectively, from the same period last year.

The strong results come despite costs of $7.4 million incurred as a result of Hurricane Harvey. These costs included temporary storage facilities; abnormally high costs for subhaulers; increased labor costs due to overtime; travel and lodging due to the reassignment of employees to the afected region; and equipment lease expenses to handle the increased volume, as well as cost of vehicle sales.

Throughout this month, NextGear Capital will be thanking dealers across the country for their partnership by forgiving 20 loans and surprising four clients with customized golf carts.

These eforts are aimed at recognizing the company’s independent dealer client-base for their continued partnership and contributions to the industry.

Accompanying the month-long celebration by NextGear Capital will be a social media campaign focused on reinforcing the thank-you messaging through shared reactions of those selected for loan forgiveness and golf carts.

NextGear Capital Thank You Month was established in June of 2018 when the company dedicated an entire month solely to thanking their independent dealer clients. Transitioning from prizes ServNet Auctions Raise Money such as Apple TVs, Xbox gaming for Scholarships ServNet Auctions have joined with consoles and Amazon Fire Sticks, NextGear Capital will be focused remarketing partner Flexco Fleet solely on loan forgiveness in 2019. Services in support of The Hourglass Foundation.

Copart Reports Results The group’s eforts will center on Copart Inc. reported strong results raising funds for the foundation’s in its quarter ended April 30 despite scholarship program, which beneits the adverse efect of several abnor- students pursuing their education in mal events. mechanical ields at community colFor the three months ended April leges and technical schools.

ServNet auction locations across the U.S. will make cash donations to the scholarship program for every Flexco vehicle sold at auction. In addition, representatives from the local auctions will reach out to area high schools, two-year colleges and trade schools in their communities to make students aware of the scholarship program along with opportunities for workplace experience at the auction.

The Hourglass Foundation is the philanthropic arm of Hourglass Management and its portfolio companies, which includes Flexco Fleet Services. Hourglass Management is headed by Chairman Ron Shoemaker.

With this enhancement, dealers can select any combination of purchase options they want to ofer potential buyers, ranging from “Bid,” to “Buy-Now” or “Make an Ofer.”

Insurance Auctions Upsizes Notes for Spinoff from KAR

IAA Spinco Inc. (to be renamed IAA Inc.) has priced its previously announced ofering of 5.5 percent senior notes due 2027 inconnection with the previously announced spin-of of IAA from KAR Auction Services Inc. The size of the ofering has been increased from $400 million to $500 million.

Manheim Upgrades Express IAA intends to use the net proManheim recently announced ceeds from the notes ofering to pay several upgrades for its Manheim a special dividend to KAR and to Express mobile app. pay fees and expenses related to the The irst upgrade involves Man- spin-of. heim Express Concierge Service.

Launched nationwide in February, Concierge Service provides dealers with a dedicated expert to help them sell vehicles more eiciently in the wholesale marketplace.

PAGE 22 The second update to Manheim Express is the expansion of “Make an Ofer” functionality.

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June 17, 2019 • 5

NIADA –Continued from page 3 Moss became president of the state association in 19971998. A decade after she became state president, Moss served as president of the national group.

Moss became active in the NIADA about the time Linn became CEO of the group.

“He was very big on education and so was I,” she said.

Tim Swift was vice president of a Pennsylvania auto auction when he served as NIADA president in 20082009.

Linn and past NIADA president Mike Cunningham were big inluences on getting Swift involved in NIADA and its leadership.

Swift, Cunningham and Mullinax later all attended the same Certiied Master Dealer class in 2006, two years before Swift became president.

He said his proudest accomplishment was hiring Scott Lilja as senior vice president of member services.

Swift spent time with Mullinax at the World Au-

tomobile Auctioneering Championship in Charleston in May. Mullinax asked him what was the worst thing that happened during his term.

Swift said his presidency did fall right at the start of the Great Recession.

“People kept asking me, ‘Hey Swift, how come since you took over the economy has gone to hell?’”

Arlan Kuehn, owner of Kuehn Auto Sales, Inc., in South Sioux City, Neb., was 2014-2015 president.

“As president of the state association, I met (thenNIADA executive director) Mike Linn. We talked and he said, ‘I have a place somewhere for you on the board.’”

During Kuehn’s tenure, NIADA negotiated the purchase of the Leedom & Associates Twenty Groups, seminars, workshops, and consulting. Kuehn and NIADA leaders spent time in Sarasota, Fla., working out the deal, he said.

“It really came out great,” Kuehn said.

Photos by Jeffrey Bellant LEADERSHIP: NIADA past president Keith Hagler (from left), is pictured with NIADA CEO Steve Jordan and past president Arlan Kuehn at receptions during previous NIADA events.

Past presidents praised the leadership of longtime CEO Linn and his successor and current CEO Jordan.

“Mike was a big deal for us for years, taking us from the bottom all the way up,” Kuehn said.

He said Jordan has taken the baton and moved the association into the future, especially in the area of lobbying and advancing the NIADA’s cause in Washington.

Hagler said both CEOs have done a wonderful job.

He sees good things from Mullinax, too.

“Henry’s going to do an excellent job,” Kuehn said.

“I’ve worked with him on boards a lot. He’s got a good heart, and everybody loves him.”

Moss said Mullinax has the right amount of tact for the job.

“Henry always has the perfect answer for people

on how to handle things.”

Moss said if there was one diicult part of serving as president, it was the limitation of a one-year term.

“You always felt that you wanted to do a little more than you were doing,” Moss said. “You never knew whether you were accomplishing what you need to.

“It’s a very short year.”

For Mullinax, it will be a little bit longer.

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6 • June 17, 2019

USED CAR NEWS

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Wholesale Prices Rise As Used Beats New

2018 Auction of the Year

“We have worked hard over the years to cultivate this partnership with GM Financial. As one of our biggest consignors, they provide an invaluable source of inventory for many of our customers, and we are thankful to have them at our auction week in and week out.

We are honored to have that relationship recognized.”

-Alexis Jacobs, CEO of Columbus Fair Auto Auction

Lanes 7 & 8 | 400+ off-lease | 9:15am Every Wednesday

The spring market reached full bloom in April and remained strong in May. The Manheim Used Vehicle Value Index increased slightly monthover-month in May. The Index – which measures wholesale prices adjusted for mix, mileage and seasonality – now stands at 139.6. That is up from 138.4 in April and 134.2 in May 2018.

The Black Book Used Vehicle Retention Index rose to 114.4 from 113.6 in April.

This Index is calculated using Black Book’s published Wholesale Average value on two- to six-yearold used vehicles, as percent of original typically-equipped MSRP. It is weighted based on registration volume and adjusted for seasonality, vehicle age, mileage, and condition.

KAR Auction Services Inc. chief economist Tom Kontos points out prices remain up despite a peak in of-lease vehicles coming back to the market this year.

Many of those units are being sold upstream, but Kontos said physical auction volume remains steady.

There are fewer trades due to lower new-car sales, but repos rose as consumers inance more sales on both the new and used side.

Kontos said demand remains strong for those of-lease units as franchise dealers continue investing in used-car sales.

“Franchise dealers are in the used-car games like never before,” Kontos said.

Consultantcy Kerrigan Advisors said buyers are even taking the strength of a store’s used-car operations into consideration when they make an acquisition.

Experian reports that prime consumes continue moving to used cars from new, with 62 percent opting for used in the irst quarter, an alltime high.

Independents, meanwhile, continue to ind less of what they need as they still sufer from lower newcar sales seven years ago.

Part of the reason for the ongoing strength of used-car prices is a lack of new-car incentives.

Although the manufacturers continue to show restraint in this area, industry observers wonder how long this can continue.

While new-car sales rose in May, so did incentives, marking the irst year-over-year increase in incentives for 2019, J.D. Power reports.

And the number of new vehicles sitting on dealer lots is rising.

On average, new vehicles sold in May spent 74 days on dealer lots, the highest level for the month of May since 2009, J.D. Power reports.

Twenty-nine percent of vehicles sold so in May have sat on lots for 90 days or longer, up from just over a quarter of vehicles last year.

Incentive spending per unit so far in May is $3,722, up $25 from last year.

Spending as a percentage of MSRP remains below the 10 percent threshold at 9.1 percent, according to J.D. Power.

Despite these higher incentives, transaction prices were up in May, reaching $33,457—the highest ever for the month, according to Kelley Blue Book.

The growth in average prices is due primarily to sales weakness at lower price points, Kelley reports.

The good news is inance rates have declined in May, reducing the need for price cuts.

Edmunds reports that the annual percentage rate on new inanced vehicles averaged 6.1 percent in May, compared to 6.27 percent in April.

Edmunds analysts say this monthover-month dip is in part due to a bump in zero percent inance deals from automakers in May. These deals made up 5.7 percent of inanced transactions, compared to 3.2 percent last month.

Even with a slight uptick in 0-percent inance ofers compared to last month, average monthly payments reached record highs, Edmunds reports.

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8 • June 17, 2019

USED CAR NEWS

KAR Invests in Digital Offerings KAR Auction Services Inc. continues to invest in its digital oferings, with new tools from its Drivin and ADESA divisions and a new incentive to use TradeRev. KAR launched its Drivin-powered Pricing Insights, a solution that helps commercial consignors maximize the net economics of their portfolios through optimized pricing.

This newest product in the Drivin Insights Product Suite of portfolio management solutions uses proprietary data science algorithms to produce predictive models for determining VIN-level market channel and pricing.

The model encompasses a suite of input variables beyond those of traditional pricing approaches that are unique to the KAR ecosystem — generating pricing models that are tailored to each consignor’s unique remarketing goals. The technology is API-driven and fully integrated with private-label platforms and other third-party marketplaces, providing seamless, robust and real-time analytics in a single worklow and minimizing both manual assays and opportunities for error.

Daily views are provided allowing consignors to understand real-time performance, impact and results.

ADESA announced new “natural language” search functionality on ADESA.com.

The natural-language capability mirrors what is used by the world’s leading technology and ecommerce companies and is a irst for the automotive remarketing industry. Paired with ADESA.com’s advanced ilter options and canonical database, the enhancement substantially reduces the time spent searching for the right vehicles, improving productivity and thus proitability for dealers regardless of their size or sales volume.

The new search capability leverages the leading cloud-based search technology and can return up to 400,000 vehicles in less than two seconds, six times faster than before.

TradeRev announced the pilot of its “No Questions Asked” return policy.

The pilot currently allows buyers to exercise the return policy by notifying TradeRev within two business days of vehicle delivery. TradeRev will then refund the purchase price minus any initial transport charges and buy fee. Eligible vehicles include those inspected by TradeRev as well as as-is vehicles.

TradeRev is continuing to pilot the return policy and plans to make it available to all users over the next year.

Also, KAR announced its participation in the Mobility Open Blockchain Initiative (MOBI) Electric Vehicle Grid Integration (EVGI) working group alongside representatives from Accenture, GM and Honda.

MOBI is a member-driven consortium of smart mobility industry leaders exploring blockchain technology for use in the digital mobility ecosystem. Its EVGI working group will research the potential value of using blockchain technology and the logistics necessary to pilot peerto-peer energy smart contracts, tokenized carbon credits, and vehicleto-grid (V2G) energy storage and ancillary services.

MOBI’s EVGI working group will explore smart contracts to help create a more transparent, conlictfree way to exchange money and property, research the use of blockchain digitized ledgers to track and manage carbon credits that of-set charging station setup costs and examine V2G energy storage solutions.

Fraudster Convicted A federal jury convicted a Virginia man on charges of credit union fraud and aggravated identity theft in relation to an auto inance scheme.

According to court records, Adante Leshaun Dupree took part in a scheme to defraud Navy Federal Credit Union. Dupree and his co-conspirators bought the stolen identities of out-of-state victims using the dark web, opened Navy Federal Credit Union accounts in their name, and applied for auto inance from the credit union in the names

of the identity theft victims.

The conspirators then paid a woman to impersonate the identity theft victims, pick up the loan checks, and cash them at a Norfolk check cashing store. The scheme unraveled after the woman was caught trying to cash a second auto inance check while wearing a wig to impersonate a victim decades older than the impersonator’s true age.

Dupree faces up to 30 years in prison for the fraud and at least two years for aggravated identity theft.

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July 2019

Chase High Lines, featuring: 1 1

ADESA Boston July 5, 12, 19, 26 508-626-7000

ADESA Salt Lake July 9, 23 801-322-1234

Manheim New Jersey July 10, 24 609-298-3400

ADESA Boston July 5 508-626-7000

Manheim Dallas July 23 877-860-1651

Manheim Palm Beach July 10 561-790-1200

ADESA Brasher’s July 23 916-991-5555

ADESA Tulsa July 12 918-437-9044

Manheim New Orleans July 10 985-643-2061

ADESA Golden Gate July 16 209-839-8000

Manheim Milwaukee July 24 262-835-4436

Manheim Pennsylvania July 18 800-822-2886

ADESA Charlotte July 18 704-587-7653

ADESA Washington DC July 24 703-996-1100

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

Manheim Atlanta July 17 404-762-9211

Manheim Nashville July 3, 31 877-386-5004

Manheim Riverside July 11, 25 951-689-6000

ADESA Chicago July 26 847-551-2151

Columbus Fair AA July 3, 10, 31 614-497-2000

Manheim Palm Beach July 10 561-790-1200

ADESA Cincinnati/Dayton July 30 937-746-4000

Manheim Atlanta July 17, 18 404-762-9211

Manheim Pennsylvania July 5, 18, 19 800-822-2886

ADESA Golden Gate July 2, 16, 30 209-839-8000

Manheim Dallas July 10, 23, 24 877-860-1651

Manheim Phoenix July 2, 10, 11, 18, 25 623-907-7000

ADESA Boston July 12, 26 508-626-7000

Manheim Atlanta July 18 404-762-9211

Manheim Orlando July 2, 16, 30 800-337-8491

ADESA Houston July 3, 17, 31 281-580-1800

Manheim Denver July 24 800-822-1177

Manheim Pittsburgh July 24 724-452-5555

ADESA Charlotte July 18 704-587-7653

Manheim Dallas July 24 877-860-1651

Manheim Pennsylvania July 5, 19 800-822-2886

ADESA Indianapolis July 2, 16, 30 317-838-8000

Manheim Detroit July 18 734-654-7100

Manheim Riverside July 9, 11, 23, 25 951-689-6000

ADESA Chicago July 26 847-551-2151

Manheim Detroit July 18 734-654-7100

Manheim Pittsburgh July 24 724-452-5555

ADESA Jacksonville July 18 904-765-1004

Manheim Fredericksburg July 11, 25 540-368-3400

Manheim Seattle July 3, 17, 31 206-762-1600

ADESA Golden Gate July 2, 30 209-839-8000

Manheim Fredericksburg July 11 540-368-3400

Manheim Riverside July 9, 23 951-689-6000

ADESA Kansas City July 2, 16, 30 816-525-1100

Manheim Milwaukee July 10, 24 262-835-4436

Manheim Southern California July 18 909-822-2261

ADESA Houston July 17 281-580-1800

Manheim Nashville July 10, 24 877-386-5004

Manheim Seattle July 17 206-762-1600

ADESA Lexington July 11 859-263-5163

Manheim Minneapolis July 17 763-425-7653

Manheim Tampa July 25 800-622-7292

Columbus Fair AA July 10 614-497-2000

Manheim New Jersey July 10, 24 609-298-3400

Manheim Tampa July 25 800-622-7292

ADESA New Jersey July 3, 18 908-725-2200

Manheim Nashville July 3, 9, 10, 24, 31 877-386-5004

Southern AA July 24 860-292-7500

Chase High Lines, featuring:

2 2

3

Chase High Lines, featuring:

4

ADESA Boston July 12 508-626-7000

Manheim Detroit July 18 734-654-7100

Manheim Pennsylvania July 5 800-822-2886

ADESA Salt Lake July 9, 23 801-322-1234

Manheim Fredericksburg July 25 540-368-3400

Manheim Pittsburgh July 24 724-452-5555

ADESA Boston July 5 508-626-7000

Manheim Dallas July 23 877-860-1651

Manheim Palm Beach July 10 561-790-1200

Columbus Fair AA July 3, 31 614-497-2000

Manheim Milwaukee July 10 262-835-4436

Manheim Seattle July 17 206-762-1600

ADESA Golden Gate July 16 209-839-8000

Manheim Milwaukee July 24 262-835-4436

Manheim Pennsylvania July 18 800-822-2886

Manheim Dallas July 10 877-860-1651

Manheim New Jersey July 10 609-298-3400

Manheim Southern CA July 18 909-822-2261

Manheim Atlanta July 17 404-762-9211

Manheim Nashville July 3, 31 877-386-5004

Manheim Riverside July 11, 25 951-689-6000

Manheim Denver July 24 800-822-1177

Manheim Orlando July 23 800-337-8491

Southern AA July 24 July 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 (19-007) 7/19

10 • June 17, 2019

USED CAR NEWS

CarMax Expands Again

CarMax Inc. recently added two stores in Texas, bringing the usedcar superstore chain’s total in the state to 22.

CarMax Killeen is the company’s irst in the Waco area. The store has the capacity to stock approximately 140 used vehicles.

In celebration of the Killeen store opening, CarMax and The CarMax Foundation are awarding $5,000 in donations and grants to the Food Care Center in Killeen. The donation for this organization came at the recommendation of the Killeen CarMax associates.

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CarMax Inc. has also opened a new store in Pharr, Texas.

This is the company’s irst in the Rio Grande Valley region.

CarMax Pharr is located at 1300 East I-2 and has the capacity to stock approximately 300 used vehicles.

In celebration of the Pharr store opening, The CarMax Foundation is awarding a $10,000 grant to the Food Bank of the Rio Grande Valley.

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

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418FLRP1

A former auto dealer and associated lending and leasing companies have agreed to provide debt relief and credit repair to consumers relating to auto inance that allegedly violated Massachusetts law.

Under the terms of the assurance of discontinuance, All-Star Auto Sales, Inc., Assured Auto Leasing LLC, and Assured Finance Inc., formerly headquartered in Marlborough, (collectively, the “All-Star companies”) have agreed to waive debt on certain defaulted loan and lease contracts.

They will also allow certain consumers to keep their vehicles without making further payments, and provide credit repair to afected consumers.

Nearly 100 consumers are expected to received loan discharges under the settlement, totaling approximately $500,000.

“We alleged that these illegal high-cost auto loans and leases put consumers at an unfair disadvantage,” said Massachusetts AttorneyGeneral Maura Healey.

“Companies that engage in unlawful auto lending and leasing practices are not welcome in Massachusetts.”

Healey’s oice alleges that the All-

Star companies originated and acquired vehicle loans and auto leases with inance charges that exceeded the state’s 21 percent usury cap and failed to properly disclose these inance charges on certain loans.

The alleged usury violations occurred because the companies failed to disclose properly certain insurance premiums on the loans.

The alleged violations, in connection with the auto leases, are the result of charging consumers more than the value of the vehicle over the lease term and allowing the consumer to acquire the vehicle at the end of the lease with a small payment.

The assurance of discontinuance also bars these companies from making loans or leases in Massachusetts in the future.

Healey has made a name for herself by pursuing auto inance cases.

She settled cases against Santander, Westlake and American Credit Acceptance Corp. for a total of more than $12.8 million.

Healey also launched investigations into the securitization practices of Santander and Exeter Finance LLC. These lawsuits resulted in settlements of more than $30 million.

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12 • June 17, 2019

USED CAR NEWS

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A lack of inventory and competition on the new side continue to create challenges for the used electric vehicle market.

While news about Tesla makes it seem EV sales are booming, the reality is the market has grown in its and starts for years. While there are many new entrants, especially from luxury manufacturers, there have been high proile failures like Fisker and major exits like the Chevrolet Volt.

“The new market isn’t very big, so the used market is even smaller,” said Tim Fleming, analyst for Kelley Blue Book.

The supply situation improved recently since EV leasing reached a peak in 2015. Among the top vehicles returning this past year were the Nissan Leaf, the Chevrolet Volt and the Ford Fusion Energi.

Price remains another issue.

It’s a market that remains very dependent on incentives from a variety of sources, including various levels of government. Anil Goyal, Black Book’s executive vice president of operations, said used EVs maintain a low percentage of their MSRPs, although almost no buyers actually pay that amount.

Groups in northern California are working together to make it easier for used-car buyers to go green.

Income-qualifying residents of San Mateo County can receive a $4,000 incentive toward purchas-

ing a used plug-in hybrid electric vehicle in a program announced by Peninsula Clean Energy (PCE), the county’s oicial electric provider.

Peninsula Clean Energy’s DriveForward Electric vehicle purchase incentive is in partnership with the nonproit Peninsula Family Service (PFS), whose long standing DriveForward program provides afordable interest rates on vehicle loans for those that qualify.

Program eligibility is based on total household income, ranging from up to $48,560 for one person to up to $169,520 for a family of eight. Participants must live or work in San Mateo County, have a valid driver’s license, and have the income to cover the vehicle loan and maintenance and fueling expenses.

Not all EV incentives are monetary. In the past, a major beneit of owning an EV in California was the ability to drive in the high-occupancy vehicle lane.

The state took away that perk for thousands of vehicles this year. To maintain use of the lane, drivers needed to buy an EV that hadn’t been registered in the state before.

That mostly means new cars, but Fleming said they could also bring qualifying cars in from other states.

Most of the beneits and most of the interest in owning EVs remain speciic to the coasts, so Goyal said dealers in other parts of the country probably have little interest in the market.

14 • June 17, 2019

USED CAR NEWS

PEOPLE IN THE NEWS Compiled by Jeffrey Bellant TrueCar Names Interim CEO TrueCar Inc. announced that Chip Perry, its president and chief executive oficer, has retired.

TrueCar is planning for Perry to continue supporting TrueCar in

Darrow is currently executive vice president of partner and OEM Development and president of ALG. In this role, he has managed TrueCar’s exclusive Ainity Partner network, including its USAA partnership, as well as its OEM business.

Prior to joining TrueCar, Darrow held leadership roles over 14 years at Edmunds.com, including as chief executive oicer and chief sales oicer of Edmunds Data Services.

Firm Hires Speech Analytics Expert

Chip Perry an advisory capacity.

Perry previously had served as the CEO of Autotrader.com The board has appointed Michael Darrow as interim president and chief executive oicer.

Digital speech analytics expert Tony Colan has joined the Proactive Dealer Solutions team as director of enterprise sales.

Colan comes to PDS from VoiceBase Inc., where he served as enterprise sales direc-

tor and specialized in speech analytics and API integration.

Colan will be marketing PDS’ speech analytics platform to the major automotive search directories, marketing agencies, phone vendors, and CRM providers.

States Taps New Consumer Director Katherine A. Lemire has been appointed as executive deputy superintendent of New York’s newly created Consumer Protection and Financial Enforcement Division.

The new division combines the previously separate Enforcement and Financial Frauds and Consumer Protection divisions.

Lemire was formerly a partner at StoneTurn, an international consulting irm providing compliance and investigative services. Prior

No dream is too big.

to that, Lemire founded and oversaw a risk and compliance irm, Lemire LLC, which merged into StoneTurn.

Lemire previously served as an Assistant U.S. Attorney in the Southern District of New York and as a prosecutor in the Manhattan District Attorney’s Oice.

DFS’s Consumer Protection and Financial Enforcement Division is responsible for protecting and educating consumers and ighting consumer fraud, as well as ensuring that regulated entities comply with New York and federal law.

It’s also responsible for developing investigative leads and intelligence.

Matt Laughridge has been named general manager of ADESA Mobile Auctions.

Laughridge joined the auto remarketing

pany’s program of dealer-to-dealer sales.

Walker was managing the UVA program for Brasher’s Auto Auctions when ADESA

Matt Laughridge

Sawyer Walker

industry in 1999.

He most recently served as director of mobile auction sales and operations at Manheim.

ADESA also announced that Sawyer Walker has been proADESA Announces moted from regional New Managers to national manager of ADESA announced ADESA UVA, the com-

purchased the auction group in 2016. He was promoted to regional UVA manager for ADESA in 2018.

ADESA is expanding UVA sales with an additional bi-weekly UVA sale at ADESA Las Vegas and a weekly UVA sale at ADESA Dallas, expected to launch this summer.

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16 • June 17, 2019

RETAIL MARKETS CALIFORNIA Tony Harb, CEO, JustBetterCars.com, Roseville, Calif.: “I’ve been in business 15 years.

“I carry approximately 110 (units). On average I sell about 80 per month. It is of about 15 percent from this time last year. I think it’s because of a natural market cycle. Cars have been on a steady upward climb for the last four-and-a-half years.

It’s just a cyclical thing.

“We buy from auctions and we source cars from private parties as well. I use everything from independent online sites like Carwave and OVE.com. But the majority of my inventory comes from ADESA and Manheim.

“I do straight retail. Subprime makes up about 25 percent of our business. We used to do as much as 60 to 70 percent, but we’ve pulled back on that.

“Average retail is $17,000.

The average model year is a

2012 or 2013.

“Average mileage is probably between 50,000 to 60,000. Finding that inventory is my job and it’s a lot of work.

“We carry about 30 percent cars, 30 percent SUVs and about 40 percent trucks.

“Most of my cars are imports, with some domestics.

The majority of my trucks are domestics. I do not carry many import trucks.

“My average reconditioning costs are about $475 to $500.

“We have our own shop.

I’ve got three techs. We do some customer-pay. We try to service our warranty work as well.

“For advertising, I use Autotrader, Cars.com, Craigslist and CarGurus. I also do a small amount of radio monthly.

“We just sold a 2016 Ford Explorer. It had about 40,000 miles. We got somewhere in the mid $20,000s.

“People bought a whole lot of cars over the past fourand-a-half years, so I’m pes-

simistic about this year.

“The local economy is OK, but a lot of people are leaving California. I’m on the board of the Independent Automobile Dealers Association of California. The regulations and fees that come with running a business in California are so pretty crazy.”

MONTANA Chad Randash, president, Randash Auto Center, Bozeman, Mont.: “We started in July 2007.

“We’re mostly buy-here, pay-here. Maybe 85 to 90 percent.

“We report to all three credit bureaus. So, we have customers who will graduate from our in-house program. They still want to do business with us through outside inance.

“I keep about 85 to 90 cars in inventory and we sell about 40 to 45 a month. We don’t have big spikes.

“The average term length is about three-and-a- half

$

$

USED CAR NEWS

Compiled by Jeffrey Bellant

to four years. Our average down payment is just under $800.

“About $14,900 is the average retail price.

“Our average model year is 2012, 2013 or 2014 with under 100,000 miles. We’ve had to jump up because of the recession (when newcar sales dropped) there are not a lot of 2009s out there.

We had to jump model years.

‘We’re stocking up on SUV and four-wheel drives more.

We have nine months of winter here and it’s a hard winter. Cars are 40 percent, but they used to be 70 percent.

“We’re all domestic.

“Trucks are so expensive we don’t do many of those any more.

“When I started 12 or 13 years ago, I didn’t know what I was doing. We’d put customers in cars and – looking back – they weren’t great cars.

“Since then, we started looking at states like Texas and Pennsylvania that have

stringent inspections. Then we adopted our standards based on those.

“We’re also big on getting the recalls done before sale.

“What’s leveled the playing ield are online reviews.

We have a 4.5 to 4.8 rating with hundreds and hundreds of deals. We work hard on that.

“We also use billboards and support a lot of local stuf like Little Leagues and race cars.

“I’ve got nine service techs here, but we only work on our own cars and warranty work. We don’t do outside work.

“Our hard costs are about $1,700 into every car. I do that work in my own shop.

“I use Ituran for GPS/ starter interrupt. It won’t make the client make the payments, but it makes our phone ring. I don’t want to shut them of.

“We recently sold a 2013 Nissan Rogue, with 98,000 miles. It sold for $15,995.”

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18 • June 17, 2019

USED CAR NEWS

WHOLESALE MARKETS Compiled by Jeffrey Bellant IOWA Todd Givant, general manager, Des Moines Auto Auction, Des Moines, Iowa: “The weather has been tough, because of the rain.

When it’s raining, people don’t want to go look at cars.

“Tax time market isn’t as relative for us. Some people say May is a bad month, but our May was OK. “Seems like our numbers are of a little bit this year, but our percentage has been steady. There are so many factors.

“We opened in 2008 and we run four lanes, though we have ive lanes. Our anniversary sale will be July 19 – a Friday.

“Over the last couple of months, we were at 375, now we’re about 350ish. Our numbers are of just a bit from last year. Our January and February were just terrible. Instead of selling cars, people were digging their cars out.

“We’re squaring ourselves back up and heading in the

right direction.

“When we irst opened, we were always at about 69 percent (conversion rate).

The last eight or nine years, we’ve maintained about a 65 percent average.

“On average, we’re probably 10 to 15 percent leetlease and repo, the rest are dealer cars.

“We’re like any other smaller or family-owned auction. We have very good relations and rapport with our customers. We try to work with our people and help them out.

“As far as a ballpark igure, we’ll draw about 250 (bidders), give or take 25. We’ll usually have 70 to 80 online.

We have pretty much representation from all of the contiguous states around us.

“What I’m hearing from dealers is all over the board.

I’ll have some guy from Nebraska who said he is banging out 60 units a month.

Then another guy from 20 minutes away who said, ‘Man, I’m just trying to stay aloat.’

“Our average price on the block can luctuate, but typically, it’s been about $5,400.

I’ve got a guy who runs a scrap yard who buys $300 cars and then there are other dealers who like the $20,000 and $30,000 vehicles.

“Last year was a good year.

Although 2019 started out a little soft. But with everything we have going on with our consigners and buyers, I think, 2019 is only going to get better, the farther we go along in the year.

MISSISSIPPI Patrick Sellers, general manager, Dixie Auto Auction, Grenada, Miss.: “We’ve had a ton of rain here, but it’s inally lightened up and we’re getting the heat now. The Mississippi Delta has had it pretty rough.

“We’ve been in business since 1981.

“We run three lanes. We’re pretty steady throughout the year in running 300 (units) a week. That’s about the same

as this time last year.

“Sales percentages have been doing fairly well. We haven’t seen a drop-of since the busy tax season, or what used to be the busy tax season. We’ve seen a little bit of decline of buyers in the lane, but the prices seem steady overall.

“Tax season used to go several months, but it seems now it’s just the end of February and maybe the irst of March.

“As far as leet stuf, I’ll say the (conversion rates) are 80 percent. On the dealer stuf, we’re probably 70 percent.

“We’re about 80/20 mix, with 80 percent leet-lease and repo and the rest dealer cars. The leet-lease and repos are mostly the credit Acceptance Corp. vehicles.

“We haven’t seen a change in those volumes yet. I think the repos kind of pick up a little while after the tax season. It’s kind of normal for us.

“Our sweet spot coming across the block is probably $4,500 or $5,000.

“For this time of the year, the number of dealers in the lane is slimming down. On average, it’s probably down to 50 or 60 dealers. During the busy time of the year, it’s double that, for sure.

“We do online sales. We’re simulcast through Edge Pipeline. We’ll get several buyers that look for special or speciic cars. We’ve got one guy who buys a lot of Toyotas. That’s his specialty market and he’s from Miami.

“To be in the middle of Mississippi, we’re not in a national market, but we are selling cars everywhere. It’s amazing. So, the guy who buys Toyotas, now he’s looking every week and proxybidding before they even come through the lanes.

“I don’t think I’d ever have got that guy on a plane to ly here to buy that particular car.

“We’ll run about 20 or so salvage units per week. For us, it’s not about the scrap prices, it’s what the parts are worth.”

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ACTUAL WHOLESALE AND PROJECTED RESIDUAL VALUES JUNE 2019

SOURCE: BLACK BOOK

2014 MODELS

2015 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

Jun ‘18 12,050 5,900 7,050 12,150 6,850 11,150 10,550 13,350 14,650 7,700

Dec ‘18 10,900 5,700 6,200 10,750 5,050 10,150 9,600 12,150 13,400 6,350

Jun ‘19 10,000 5,600 5,800 10,200 5,200 9,800 8,950 10,600 11,000 5,850

Jun ‘20 8,075 4,600 4,400 8,600 4,175 8,025 7,525 8,700 9,325 4,900

Jun ‘21 6,775 3,900 3,550 7,400 3,550 6,725 6,425 7,050 7,800 4,200

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

Jun ‘18 14,150 23,300 7,550 12,100 8,850 13,700 12,750 16,500 10,900 13,550

Dec ‘18 13,250 22,900 7,250 11,350 7,950 12,550 12,450 15,550 10,550 12,650

Jun ‘19 12,900 19,600 6,750 10,350 6,650 12,500 11,600 13,350 10,050 12,300

Jun ‘20 10,400 16,250 5,650 9,275 5,375 10,325 9,200 10,425 7,175 10,225

Jun ‘21 8,550 13,450 4,875 8,175 4,425 8,850 7,525 8,250 5,375 8,900

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

Jun ‘18 13,650 12,750 26,750 10,400 8,600 17,100 18,600 5,150 8,200 6,650 9,950 8,350 8,650 8,350

Dec ‘18 12,150 11,250 23,750 9,650 8,050 15,100 17,300 4,900 7,350 5,550 8,950 7,650 7,800 7,500

Jun ‘19 11,350 9,750 20,250 9,400 7,550 13,700 14,200 4,800 7,000 4,850 9,300 7,500 7,150 7,150

Jun ‘20 8,850 8,050 15,550 7,625 6,275 11,100 11,250 3,525 5,750 4,150 7,325 6,350 6,000 5,875

Jun ‘21 6,975 6,800 12,000 6,550 5,400 9,350 8,500 2,950 5,025 3,850 6,250 5,650 5,125 5,175

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

Jun ‘18 15,250 32,250 11,800 10,150 19,500 23,500 6,700 10,000 8,000 11,600 10,050 11,000 10,250 16,500

Dec ‘18 14,250 28,800 10,800 9,500 17,100 21,700 5,950 9,350 7,400 10,800 9,450 10,050 9,600 14,650

Jun ‘19 12,250 25,500 10,600 9,200 16,100 18,000 5,950 8,850 6,800 10,400 8,650 9,150 9,100 13,450

Jun ‘20 9,925 19,525 8,750 7,550 12,700 14,475 4,450 7,125 5,750 8,325 7,100 7,400 7,350 11,700

Jun ‘21 8,275 15,075 7,550 6,425 10,600 10,950 3,650 6,150 4,925 7,225 6,350 6,175 6,325 10,525

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

Jun ‘18 16,950 17,600 9,550 21,500 9,700 13,650 18,250 16,200 15,600 12,850 12,175 16,300 24,950 9,700 15,700 18,900 23,300 26,400 10,150 19,025 22,700 19,000

Dec ‘18 14,850 15,675 8,500 19,000 8,200 11,700 16,400 14,150 13,500 11,850 11,425 14,750 23,650 9,150 14,375 17,500 22,650 25,000 9,450 17,075 22,450 18,000

Jun ‘19 12,300 13,825 8,000 18,200 7,800 11,050 14,550 14,000 11,500 11,150 10,625 14,050 22,100 8,550 12,600 16,300 21,600 23,000 8,700 15,950 21,300 17,000

Jun ‘20 11,100 12,475 6,775 15,550 6,600 9,925 12,650 12,200 10,325 9,850 8,800 11,550 20,550 6,925 11,275 14,925 18,900 20,575 7,200 13,800 19,150 15,325

Jun ‘21 9,750 10,950 5,375 12,875 5,250 8,300 10,800 10,400 8,325 8,325 7,275 9,450 18,900 5,425 9,525 13,425 16,225 17,375 5,900 11,525 17,200 13,100

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

Jun ‘18 21,350 20,550 10,950 29,000 11,200 17,750 21,100 19,700 18,000 14,700 13,800 19,675 26,450 11,200 22,175 20,000 25,050 38,500 12,050 21,300 20,500 24,300

Dec ‘18 20,250 20,000 10,000 28,500 10,800 14,350 19,150 18,500 16,500 13,250 11,750 18,175 25,500 10,700 20,375 19,700 23,850 34,500 11,250 19,450 20,800 24,125

Jun ‘19 16,850 17,750 9,350 26,700 10,200 14,050 17,400 18,200 15,000 12,250 11,625 16,675 24,100 10,100 17,750 19,000 23,350 32,300 10,450 18,725 19,900 22,850

Jun ‘20 14,775 15,675 7,800 22,650 8,175 12,300 15,000 16,450 12,550 11,025 9,800 14,150 22,075 8,325 15,175 17,525 20,625 28,550 8,750 16,300 17,525 20,125

Jun ‘21 12,625 13,600 6,225 18,650 6,675 10,400 12,550 14,025 10,175 9,450 8,225 11,675 20,175 6,625 12,725 15,750 18,100 24,575 7,200 13,650 14,900 17,925

2016 MODELS

2017 MODELS Recorded Figures

Recorded Figures

Projected Figures

Projected Figures

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

Jun ‘18 16,650 9,900 13,300 19,200 9,800 14,900 13,950 20,050 11,700 27,900

Dec ‘18 16,800 9,400 12,700 17,950 8,900 13,800 13,350 18,450 11,300 26,700

Jun ‘19 15,000 8,550 11,650 16,100 8,550 14,150 13,050 15,200 10,800 22,500

Jun ‘20 12,150 7,125 10,400 13,600 6,525 11,725 10,325 12,000 7,825 18,850

Jun ‘21 10,150 6,225 9,250 11,750 5,350 10,150 8,550 9,300 5,925 15,625

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

Jun ‘18 10,750 15,000 20,800 10,700 17,100 17,250 14,200 30,000 20,200

Dec ‘18 10,450 13,650 19,400 9,700 15,100 15,350 12,750 26,600 20,000

Jun ‘19 9,550 12,750 17,700 9,700 15,800 14,650 12,150 23,000 17,650

Jun ‘20 7,975 11,575 15,325 7,525 13,300 11,900 9,050 19,475 15,150

Jun ‘21 7,025 10,475 13,425 6,175 11,675 9,975 7,050 16,225 13,025

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

Jun ‘18 18,500 18,750 14,600 11,050 24,700 8,750 11,400 9,450 12,950 10,750 12,350 11,750 51,250 27,100

Dec ‘18 16,550 18,000 13,150 10,500 22,300 8,700 10,350 8,450 12,300 10,700 11,200 10,700 45,250 27,000

Jun ‘19 14,450 15,250 11,950 10,400 20,100 7,850 10,200 8,200 11,850 10,300 10,000 10,450 35,500 22,500

Jun ‘20 12,475 12,300 9,875 8,425 16,125 5,650 8,275 6,600 9,575 8,400 8,175 8,475 28,575 19,150

Jun ‘21 11,125 10,150 8,600 7,175 13,450 4,325 7,125 5,700 8,275 7,450 6,850 7,300 21,925 15,525

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

Jun ‘18 20,750 16,750 12,350 29,300 11,300 13,400 11,050 14,450 12,450 14,950 13,750 62,750 25,000 43,600

Dec ‘18 19,200 14,950 12,050 26,700 10,950 12,150 10,300 13,800 11,600 14,300 12,500 55,250 22,250 42,100

Jun ‘19 17,400 13,850 11,800 24,300 9,450 11,800 9,400 13,450 11,450 13,250 12,150 45,750 18,750 36,000

Jun ‘20 15,050 11,500 9,625 20,000 7,325 9,550 7,500 10,850 9,450 10,500 9,775 36,325 15,750 29,475

Jun ‘21 13,225 9,975 8,175 16,475 5,625 8,200 6,525 9,375 8,400 8,675 8,375 28,000 12,750 23,525

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

Jun ‘18 24,725 23,300 13,000 31,500 13,500 19,800 23,800 21,000 19,500 16,800 16,425 21,150 28,425 12,400 23,500 22,500 27,800 44,100 13,900 22,700 26,475 24,725

Dec ‘18 24,475 22,375 11,600 31,200 12,200 17,050 21,900 20,300 18,100 15,550 15,400 19,350 27,300 11,850 22,000 21,700 26,700 42,000 12,700 22,300 24,475 24,275

Jun ‘19 20,375 20,575 11,150 29,500 12,200 16,200 21,200 20,500 16,300 13,900 14,300 19,625 25,800 11,350 19,625 20,400 25,625 37,400 11,800 21,400 22,425 22,675

Jun ‘20 18,000 17,975 9,125 25,750 9,900 14,175 17,750 18,475 13,900 12,650 12,050 16,775 23,775 9,525 16,975 17,700 23,000 33,000 9,925 18,675 19,675 20,550

Jun ‘21 15,225 15,500 7,350 21,625 7,875 12,075 14,850 15,750 11,600 10,800 10,000 13,875 21,700 7,750 14,350 16,000 20,450 28,350 8,175 16,050 16,725 18,500

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

Jun ‘18 28,000 15,200 33,000 16,000 21,150 27,600 22,500 20,500 18,500 19,050 23,075 30,600 14,800 26,050 23,100 29,000 53,500 15,900 25,800 29,200 27,975 34,650

Dec ‘18 25,750 13,300 32,200 14,500 18,250 25,150 21,650 19,000 18,050 18,900 22,225 29,150 13,950 24,525 23,300 28,300 49,500 14,300 23,300 27,725 27,375 29,650

Jun ‘19 22,850 12,550 32,000 14,000 17,250 23,900 21,800 17,300 17,350 17,025 22,025 27,275 12,950 21,775 21,200 27,575 42,000 13,200 22,500 26,200 26,500 26,600

Jun ‘20 20,325 10,525 28,900 11,850 15,675 20,500 19,450 14,925 15,400 14,625 18,750 25,150 11,225 19,100 19,500 25,375 37,600 11,150 20,375 22,925 24,400 22,525

Jun ‘21 17,700 8,625 24,700 9,825 13,575 17,250 16,775 12,550 13,125 12,250 15,825 23,125 9,400 16,175 17,600 22,900 32,375 9,225 17,800 19,400 22,350 18,950

21_UCN.indd 1

6/10/19 11:33 AM

22 • June 17, 2019

USED CAR NEWS

DISCONNECTED JOTTINGS FROM I saw that the National Independent Automobile Dealers Association was about to host their 73rd convention in Las Vegas under the auspices of their new joint eforts with the NABD. It makes a lot of sense, to me anyway – the average usedcar dealer has to ind as many ways to make a penny as possible these days.

Even new-car stores are extending their customer reach to include the buyhere, pay-here community.

I looked at the NIADA’s website to see what kind of educational oferings were being made for attendees.

It’s staggering.

There are three days to choose from 64 presentation sessions hosted by no fewer than 97 presenters or speakers and those do not include the general sessions for all attendees.

Maybe a pair of roller skates is going to appear in the registration packets.

By necessity, the time for each separate gathering is relatively short; most are 45

TONY MOORBY

minutes or an hour long so folks will have to be selective about which to attend.

If there is a theme it’s probably to be seen in those break-outs that address things digital; the marketplace, traic, inventory acquisition and display, auctions, social media, customer reach and retention along with myriad ways to measure various activities of the business.

Of course, as the NABD is part and parcel of the conjoined associations’ activities, it would be quite feasible to completely change the course of an existing business or add a substantial new portfolio of customers.

Naturally the perennial subjects are covered too – compliance, legislative activities at the state and federal levels, CPO programs, tax laws, leasing, ixed operations and so on.

The association has ongoing educational programs throughout the year and maybe the best to be gleaned

from convention attendance is to help decide the course of your business for the foreseeable future, which these days, is not very far.

I’ve always said that being a successful car dealer, either new or used, demands more disciplines in more business areas and functions than almost any other career pursuit.

Maintaining that dexterity is similar to keeping a car running smoothly – regular servicing and updating are essential to longevity.

An open mind can be stretched by regularly attending industry gatherings and nothing could be more important these days than the willingness and ability to change.

Identifying some of the reasons for change can be just as enlightening and increase your convictions to make changes where and when necessary.

Both of these associations saw the need for change and have accelerated their abilities to deal with the whole-

sale and retail environments by getting together.

I was inducted into the NIADA’s Ring of Honor back in 1996. It was their 50th anniversary so the convention was held in the 50th state – Hawaii.

I said back then that the association could do more to identify their members to the public, giving more and better reasons to deal with one of the members who set themselves apart from those who were not.

I think that’s still true today. A small window sticker

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. Maserati sports car, 2 words 7. Camper, e.g.

9. Honda models 10. Former Acuras 12. Lexus model letters 13. Weight measurement 14. Apprised of, 2 words 15. Mid-size Hyundai 18. Black ___ event 21. Delay 22. Rolls Royce emblem 23. Luxury edition, on a Camry 24. Challenger and Durango 26. Ready 28. Prosecutor, abbr.

29. Old Dodge SUV 30. Tire description 33. Dodge sedan

35. Compact crossover from Buick 36. Autos that run on gas and elecrticity 38. Auto insurer with roadside service 39. Fuel made from biomass 41. Numero ___ 43. No longer working, abbr.

44. Actor Cruise or Hanks 45. Brake ___ 46. Porsche sports car 47. Flat___ truck Down 1. Car in a Clint Eastwood movie, 2 words 2. Hyundai 4-door 3. Turning power in a car 4. Bring back to former glory

doesn’t tell the story of commitment to good customer service and all it takes to ensure that the best business practices are undertaken on the public’s behalf.

If there were to be an ongoing campaign to enlighten customers as to where they should shop for a quality product with a matching experience it may attract more potential members to the association.

More members – more clout. Their voice, especially ‘on the Hill’, would be Stentorian.

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5. Tent event 6. E-mail address ending 7. Aston Martin sports car 8. Cube automaker 11. Double bend in the road 16. Silhouette makers 17. Criticize 19. Pastry chef, at times 20. Ford crossover 25. Go downhill fast 26. Rental car bookng option 27. Daily list, 2 words 28. Picnic invader 30. ___-owned vehicle 31. Former Mazda SUV 32. Made per individual speciications 34. Don’t get stuck in one, 2 words

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Solution to this puzzle in the 7/1/19 issue. Call 1.800.794.0760 for a FREE subscription.

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Solution to the 6/3/2019 puzzle

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go from “car dealer” to “master purveyor of automotive excellence.” ally.com/dealer

do it right.

©2019 Ally Financial Inc.

Six words we never want to hear? “It’s always been done that way.” Not on our watch. The industry is changing faster than ever, and at Ally, we believe that you have to do more than simply keep up - you have to lead the charge. So we reinvent, reimagine, and recreate - then do it again. And as the retail landscape evolves, only one thing will always remain the same: our dedication to helping your dealership stay ahead of the curve. We say it, and we mean it.

JUNE IS OUR MONTH TO SAY

THANK YOU THIS MONTH

20 LOANS WILL BE FORGIVEN* This June, we’re celebrating you! To show appreciation to our clients, each week we’re awarding a loan forgiveness to five dealers plus offering a chance to win

a custom golf cart.

Floor plan any vehicle during the month of June 2019 either in-lane or online to be entered to win! Prizes will be drawn weekly.

For details, visit nextgearcapital.com/thankyou

*The June 2019 Thank You Sweepstakes (“Sweepstakes”) is organized by NextGear Capital, Inc. (“Sponsor”). An “Eligible Dealership” is a dealership that: (i) has a valid AuctionACCESS dealership number; (ii) are not excluded dealerships as described below; (iii) are in good standing with Sponsor, if applicable, throughout the entire Sweepstakes Period; and (iv) are located in the fifty (50) United States, the District of Columbia, and Puerto Rico. An Eligible Dealership may enter the Sweepstakes by floor planning vehicle(s) on the Eligible Dealership’s line(s) of credit with Sponsor during the Sweepstakes Period (“Flooring Entry”). Subject to verification of eligibility and compliance with these official rules, each Flooring Entry will count as one (1) eligible entry and will be identified by the Vehicle Identification Number (VIN) for the vehicle that was floored. Eligible Dealerships also may enter the Sweepstakes without making a purchase. To do so, complete all required information on the official Sweepstakes entry form, which entry form can be found at www.nextgearcapital.com/thankyou and completed and submitted electronically (“Form Entry”). An Eligible Dealership may submit multiple Form Entries.

Subject to verification of eligibility and compliance with these official rules, each completed Sweepstakes Entry Form will count as one (1) eligible entry. Limit of thirty (30) total entries per Eligible Dealership, which can be comprised of any combination of Flooring Entries or Form Entries. The Sweepstakes will begin on June 1, 2019 at 12:01 a.m. ET and end on June 30, 2019 at 11:59 p.m. ET (“Sweepstakes Period”). Four (4) separate drawing sessions for the Sweepstakes will be held on June 10, June 17, June 24 and July 1, respectively (collectively “Drawings”, each individually a “Drawing”). With each Drawing, each valid Sweepstakes entry that has been received by Sponsor as of 11:59 p.m. ET the day before the Drawing will be assigned a random number by Sponsor. Sponsor then will use an online number generator to randomly select six (6) distinct numbers without duplicates. The randomly selected numbers then will be used to identify the corresponding valid Sweepstakes entries from the total pool of valid Sweepstakes entries in the order in which the numbers were randomly selected. The random selections will be made by Sponsor. With each Drawing, a total of six (6) prizes will be awarded in the following order: (a) the first five (5) eligible Sweepstakes winners each will win one vehicle loan forgiveness in an amount up to $10,000 or alternate, random monetary award (total value of a maximum of $10,000.00), as set forth below; (b) the next (sixth) eligible Sweepstakes winner will win a customized golf cart (valued at $6,700). Each of the twenty (20) winners during the Sweepstakes (five each Drawing) who win the loan forgiveness prizes, each valued at up to $10,000 or alternate monetary award, will receive their respective prize as follows: (1) if the randomly selected entry was a Flooring Entry with an original financed amount of $10,000.00 or less, that entry is connected to the specific VIN of the vehicle floored and the unpaid balance for that specific unit will be forgiven up to $10,000.00, with funds applied to the outstanding principal balance first, (2) if the randomly selected entry was a Flooring Entry with an original financed amount of $10,000.00 or less that already has been paid in full at the time of the respective Drawing, an amount equal to that unit’s original financed amount will be credited to the Eligible Dealership’s account with Sponsor, and (3) if the randomly selected entry was a Flooring Entry with an original financed amount of greater than $10,000.00, or if the randomly selected entry was a Form Entry, a random number will be assigned to each $500 increment from $1,000 to $10,000 (a total of 19 increments), an online number generator will be used to randomly select one of those 19 numbers to determine the corresponding dollar value won, and the winner will obtain those funds in the form of a check made payable to the Eligible Dealership’s legal name on file with Sponsor. The six (6) randomly-selected Sweepstakes winners in each Drawing will be notified by phone or email within one (1) calendar week of the respective Drawing. Sponsor reserves the right, in its sole discretion, to identify the Sweepstakes winner(s) on Sponsor’s website. Only six (6) Sweepstakes prizes will be awarded with each Drawing for a total of twenty-four (24) Sweepstakes prizes. Odds of being selected as a Sweepstakes winner will depend on the number of valid Sweepstakes entries. Total approximate cash value of the Sweepstakes prizes in each Drawing is up to $56,700.00. Total approximate cash value of the total Sweepstakes prizes is $226,800.00. Each Eligible Dealership may win a maximum of one (1) Sweepstakes prize of any nature during the Sweepstakes Period. Once an Eligible Dealer¬ship wins a Sweepstakes prize in one of the four Drawings it no longer will be eligible for other prizes in that Drawing or in any subsequent Drawing.

Employees of Sponsor, Cox Automotive, Inc., Cox Enterprises, Inc. and each of their respective affiliated companies, subsidiaries, and advertising and promotional agencies, and the family members of, and any persons domiciled with, any such employees, are not eligible to enter or to win. By entering the Sweepstakes, each entrant agrees to indemnify, defend, release, discharge and hold harmless Sponsor and its related entities, from any and all claims and liabilities arising from or in connection with participation in these Sweepstakes and the receipt and use of any prize, including but not limited to related tax obligations. NO PURCHASE NECESSARY TO ENTER OR WIN. A PURCHASE WILL NOT IMPROVE YOUR CHANCES OF WINNING. ALL FEDERAL, STATE, LOCAL AND MUNICIPAL LAWS AND REGULATIONS APPLY. THIS PROMOTION IS OPEN ONLY TO LEGAL U.S. RESIDENTS. VOID WHERE PROHIBITED. OTHER LIMITATIONS MAY APPLY. A complete and full list of the Official Rules for the Sweepstakes may be found at Sponsor’s website (https://www.nextgearcapital.com/thankyou/). Sponsor is, and may be contacted at: NextGear Capital, Inc., 11799 North College Avenue, Carmel, Indiana 46032.